Organic farmers, the Minnesota Department of Agriculture wants to know what’s been on your mind lately. Feels a little like a rhetorical question but let’s go with it. There’s a survey on the way to your mailbox and it’s a great chance to tell the state’s Ag Department wants going on out there on the ground.
The state currently has 800 certified organic operations and they’re all getting a survey in the mail this month. The survey will ask Minnesota’s organic farmers to share both their opinions and experiences in the business these days. The survey will include 27 questions about several important topics, including profitability, production costs and challenges, research needs, marketing, and your overall outlook.
“The insights that organic farmers share helps us to focus programs and resources on areas that will make a difference in their bottom lines,” says Assistant Commissioner Patrice Bailey. “Organic market demand is very strong, and we want to do all we can to help existing and new organic farmers to capitalize on that fact.”
Minnesota’s organi farmers have an opportunity to share their opinions and insights in a survey coming from the Minnesota Department of Agriculture. It’ll land in the mailboxes of the 800 certified operations in the state very soon. (Photo from allianceforscience.cornell.edu.)
Organic products just continue to grow in popularity, and not just in Minnesota. The U.S. organic market hit a new record high in 2018, topping out at $52.5 billion in sales. The 2019 Organic Industry Survey from the Organic Trade Association says that’s up 6.3 percent from the previous year.
If you’re a certified organic farmer that doesn’t see a survey show up in the mailbox, contact MDA’s Organic Specialist Cassie Dahl at 651-201-6134 to get a copy of the survey. It’s your chance to tell the MDA what’s going on in the world of organic farming, as well as a chance to offer some opinions on how things can be even better.
The MDA says the survey results will be available on their website this fall.
Drones might not be a topic that a lot of non-farm folks would associate with agriculture, but they are becoming a lot more popular on farms across the country. Drones have been a big topic of discussion recently between the Federal Aviation Administration and farm groups like the American Farm Bureau. This is a copy of an article I just saw in their latest email blast.
The Federal Aviation Administration should revamp its drone proposal to provide flexibility to allow farmers and ranchers who cannot access the internet to continue using drones, according to the American Farm Bureau Federation.
America’s farmers and ranchers embrace technology that allows them to be more efficient, economical and environmentally aware. Drones are an important precision agriculture tool they use to manage their crops and livestock and make important business decisions, the organization pointed out in comments to the FAA on its drone-related advanced notice of proposed rulemaking.
“Today’s farmers and ranchers are using precision agricultural devices to make decisions that impact the amount of fertilizer a farmer needs to purchase and apply to the field, the amount of water needed to sustain the crop, and the amount and type of herbicides or pesticides the farmer may need to apply,” Farm Bureau said.
Drones are changing the way farmers do business every day on their operations. (Photo from technologyreview.com)
The two main problems with the proposal are: it would ground many drones that farmers and ranchers currently own that do not meet the rule’s specifications and it would prevent many farmers and ranchers from ever operating a drone because of a lack of access to broadband.
Farm Bureau had several suggestions for improvement.
FAA’s proposal would require drones to connect to the internet and transmit their remote IDs. But on the 29% percent of farms and ranches without access to the internet, this would be impossible. And while Congress, the FCC and USDA have acknowledged this problem and are working to increase connectivity for precision agriculture equipment, the proposal fails to take this challenge into account.
“Requiring drones to connect to the internet and broadcast a signal would remove one of the newest tools in the toolbox for farmers and ranchers during a time when they have already seen a drastic 50% decline in net farm income in the last four years,” Farm Bureau said.
Farm Bureau is recommending an either/or approach that would allow the drone to send a remote ID signal through an internet connection if available or broadcast a signal if the internet is unavailable.
As for the limited remote ID requirement, Farm Bureau reiterated its call for FAA to provide an alternative method for operators to signal their location when the internet is not available. Another option is removing the requirement that the drone must connect to the internet since the drone must operate within 400 feet of the ground station and cannot operate beyond visual-line-of-sight under the limited remote ID requirement.
The proposal’s lack of definitions for “internet” and “sufficient signal strength and coverage” is also problematic.
“In rural areas where internet connections drastically fluctuate, drone operators need clarity on internet connection speeds that qualify for the standard and limited remote ID requirements,” Farm Bureau said.
The group’s final recommendation was that the FAA establish a position on its Drone Advisory Committee for an agriculture, forestry and rangeland representative.
“Farmers offer a unique perspective on their use of drones because they often operate a drone in more remote areas. Many of the concerns included in these comments could have been discussed during DAC meetings if there was representation,” Farm Bureau said.
Here’s the complete conversation with Arlan Suderman of INTL FCStone on the commodity markets reaction to the coronavirus outbreak.
Coronavirus headlines and the commodity markets. It’s been a while since we’ve seen the commodity markets this reactive to news headlines on an almost daily basis. While it’s not unheard of, one commodity expert says it’s been over a decade since the markets have been hit this hard by the news. Arlan Suderman is the Chief Commodities Analyst for INTL FCStone, talks about why the news coronavirus headlines seem to be playing havoc in the commodity markets.
“I think that’s a question a lot of people have these days,” Suderman says. “It’s a valid point to discuss.
Arlan Suderman, Chief Commodities Analyst at INTL FCStone says the commodity markets have been hit hard by news reports surrounding the coronavirus, as well as the resulting “fear outbreak” from people all over the world.
“I was initially downplaying the market reaction in January,” he recalled, “before doing some research at the end of that month. This is the type of virus that’s going to trigger a lot of fear in people. When you have that much fear, the fear of the coronavirus headlines will be worse than the threat of the virus itself.”
He points out that when people get afraid, they stay home, they don’t travel, and they don’t go out in public as much. That’s been the case in China as everywhere the disease has hotspot outbreaks, everybody stays home.
“Shanghai, a city of millions of people, is now a ghost town,” Suderman said. “Now we’re seeing pictures of that in lots of other places, including Italy.
“When people stay home and don’t go out, they tend to consume
less food,” he added. “That includes consuming less meat and a lot more
starches. Overall, it does tend to change consumption patterns a lot.”
People also consume less energy in these situations as they aren’t driving a lot while airlines are also canceling flights as people don’t want to travel. Less consumption in the energy markets hurts the biofuels markets as well.
Even things like shipping commodities get much more complicated as people are staying home, thanks to the coronavirus headlines. That’s been the case in China and is becoming prevalent in other countries too.
“People didn’t show up to work,” he said. “Ports become
congested, ships don’t get unloaded, and shipping slows way down. That’s lost
demand you likely don’t get back. You may get some of it back, but not all.
Hemp is being called a “new tool” in farmers’ toolboxes. I’m curious to see what kind of production Minnesota will see during the 2020 growing season. Does anyone have any idea as far as what kind of production we’re looking at this year?
The Minnesota Department of Agriculture wants to remind farmers and processors who want to grow and manufacture hemp to apply for a license before the March 31 deadline.
Anyway, those farmers wanting to grow or process the crop in Minnesota in 2020 must apply for a license with the Minnesota Department of Agriculture (MDA) by March 31.
This is the fifth year of the state’s Industrial Hemp Program. Last year, 550 people held licenses to grow or process hemp. Over 7,300 acres and 400,000 indoor square feet were planted in Minnesota.
“We believe in the potential of the developing industry,” said Assistant Agriculture Commissioner Whitney Place. “We want to ensure that everyone who would like to grow and process it in Minnesota is able to do so. They simply need to apply by March 31.”
The online application for growers and processors can be found on the MDA website at www.mda.state.mn.us/industrialhemp. Along with the online form, first-time applicants need to submit fingerprints and pass a criminal background check.
The 2018 Federal Farm Bill legalized hemp as an agricultural commodity. Last fall, the U.S. Department of Agriculture (USDA) released an interim final rule that outlined state and tribal plans for growing the crop. Minnesota is continuing under the existing pilot program in 2020.
Questions about the MDA’s Hemp Program should be sent to hemp.mda@state.mn.us or 651-201-6600.
Here’s the full conversation with Joe Vaclavik of Standard Grain in Chicago. You can download it on your computer by clicking on the three dots on the right side of the player. Play it here on your mobile device.
Joe Vaclavik is the founder and president of Standard Grain in Chicago. He took a look at 2019 in the grain markets and said the challenges just never let up over the entire length of the calendar. (Photo from Twitter.com)
Grain Markets officially bid 2019 a not-so-fond adieu. Like most other segments of American agriculture, grain farmers are more than happy to put 2019 in the past. Joe Vaclavik, founder and president of Standard Grains in Chicago, says last year didn’t start off well in the grain markets and it just kept going for the next 12 months.
“We had a pretty comfortable, if not burdensome supply situation entering the calendar year, so, the calendar year kind of began similar to what we’ve seen the last two, three, four years, a comfortable supply-demand situation, not anything terribly tight. Low prices, farmers not making a ton of money, you got the trade war going on, a lot of overall negative factors I would say to start the year.”
He says the spring is when things began to get “interesting.”
“Both in the markets and the weather. We basically sold the markets off until about that May time frame, that I think traders started to realize that we had some serious weather problems. Wet weather, cold weather, planting delays continued, and typically we are always told the crop’s always going to be planted, and planting delays are not a cause for concern.”
However, as the spring continued, things turned more serious in the markets.
“Planting delays turned into a major concern. There was a point in time in late May into maybe the mid part of June where we just had no clue what type of production was possible, and out of that, we had a very significant crop scare rally in the corn market and in the soybean market, to a lesser extent.”
Farmers continued to plant corn long past what would be a normal planting date. Vaclavik says the market was rallying as farmers continued to plant, even into early July in a few locations. He says the market peaked in June because it bought a “whole bunch of corn acres” that wouldn’t have been there otherwise.
Vaclavik says farmers faced challenges from a weather standpoint, logistics, and from a demand standpoint with trade challenges in 2019. With all that stacked against them, the question is how much grain U.S. farmers produced last year. Vaclavik says the answer depends on who you ask.
“A lot of people think that the numbers USDA has put out are just not achievable given the late planting, the wet spring, the late harvest, so there’s still some debate out there. I’m not one to tell you with any degree of certainty that we know for sure what the crop is, and we’ve got this big report on January 10, which is the final crop production report, and I suppose if USDA is going to make any sort of sweeping adjustment, it probably comes on that date.”
Again, Joe Vaclavik is the president of Standard Grains in Chicago.
Here’s the complete podcast with Mike Zuzolo. You can play it here or download it by clicking on the three dots on the right side of the player.
“Meat, the redder, the better.” Words of wisdom from the grill master (me). However, those folks who raise that red meat (which includes all types of the protein products in the meat case at your local grocery store), for the most part, had a difficult year.
Mike Zuzolo, President of Global Commodity Analytics, says there IS reason for optimism in the livestock markets as we look ahead to 2020. He’s expecting meat prices to make a rebound. (Photo from YouTube.com)
The U.S. ag sector has to be happy to see the end of the calendar year 2019. It was rough, which might be the understatement of the century so far. I’ve been doing a series of interviews for the National Association of Farm Broadcasting News Service (I’m the assistant editor/reporter) that looks back at 2019 and peeks ahead to next year. I caught up with Mike Zuzolo, President of Global Commodity Analytics in Atchison, Kansas.
2019 was not good for most sectors of the U.S. ag economy,
including the protein sector. “No, it wasn’t,” Zuzolo says. “Given the packer
break-evens being in the hundreds of dollars for much of the year in cattle,
and given the cash prices of hogs struggling to get above $50 live prices, as
well as seeing that African Swine Fever was decimating half of the world’s hog herd,
I’d say 2019 was a very big disappointment to the cattle and hog industry.”
He said the challenges didn’t just include the trade
troubles that dominated headlines throughout the year, they also included a major
fire at a Cargill plant in Holcomb, Kansas. Zuzolo said that shot cattle prices
sharply lower.
“Prices went below break-evens and they didn’t recover for
several weeks,” he recalled. “In my opinion as a livestock analyst, it really
shouldn’t have hit the markets quite that hard. The market saw cash prices for
cattle collapse from around $120 to $100 for several weeks. At the same time,
ground beef and boxed beef prices shot sharply higher because of expectations
for tighter supplies.”
Cattle producers took a major hit at that time. The good news is I want to leave you is that Zuzolo sees potential for several bright spots ahead for the protein sector in 2020.
The Minnesota Department of Agriculture (MDA) is reopening enrollment in its Dairy Assistance, Investment, and Relief Initiative (DAIRI) program for eligible milk producers through the end of the year.
Producers who have locked in five years of coverage through the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program and who have not already successfully enrolled in the Dairy Assistance program can apply.
The MDA has already issued $3.4 million to about 1,800 producers representing more than 1,550 farms in Minnesota through the program in its first round of payments.
Producers not yet successfully enrolled will not receive the first round of payment, but may receive a check for the second round of dairy assistance, which will be determined after all new enrollments have been received.
In order to qualify, farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. They will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.
An application form, an IRS Form W-9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are required to complete an application. All materials must be postmarked by December 31, 2019.
Producers who are already successfully enrolled and have received their first check do not need to take any action. They will automatically receive a second payment. However, producers who submitted incomplete applications and have not received a check must return any requested information by December 31, 2019, to be eligible for the second payment.
For additional information and the application form, visit the DAIRI program page of the MDA website.
Hemp production rules are in place as the USDA announced it’s U.S. Domestic Hemp Production Program interim final rule. It’s designed to oversee hemp farming in states that allow it by law. (photo from agriculture.com)
The U.S. Department of Agriculture hosted a press conference to announce the rollout of the U.S. Domestic Hemp Production Program. As long as farmers aren’t working in states that prohibit hemp farming by law, officials will work with farmers to help them establish an approved plan to produce industrial hemp on their operations.
Here’s the complete press conference audio from this week:
The U.S. Department of Agriculture officially announced the establishment of the Domestic Hemp Production Program. The program is designed to create a consistent regulatory framework involving hemp farming across the country. USDA Undersecretary for Marketing and Regulatory Programs Greg Ibach says the agency will work with states and tribes to help producers establish federally approved hemp production plans, as long as hemp production isn’t outlawed by their states.
The interim rule also calls for a public comment period so USDA can take input on the final rule before it’s enacted. Ibach says the 2020 growing season will be a “test drive” so USDA can make any needed corrections before publishing the final rule. He talks about some of the key provisions in the interim final rule.
There will be a 30-day waiting period for USDA to license farmers who want to grow hemp in states or tribes that don’t submit plans for federal approval. Ibach says they’ve gotten a lot of questions during the development process surrounding hemp testing for THC.
USDA Undersecretary for Farm Production and Conservation Bill Northey says once state and tribal plans are in place, hemp growers will be eligible for various government programs in 2020…tape
If you have any more question, contact your local Farm Service Agency office. They can point you in the right direction. You can also find more information online at farmers.gov/hemp.
Here’s another chadsmithmedia podcast, this time with Houston and Fillmore County Extension Educator Michael Cruse, talking harvest progress in southeast Minnesota.
Harvest season. Never a dull moment in farm country. It’s never an easy season for anyone, regardless of what the growing season was like. This year’s ridiculously wet growing season is going to make things even more challenging, which is not exactly a state secret.
The harvest season is officially underway in southeast Minnesota. A few days of drier and windier weather last week allowed some crops to come out of fields across the area. Houston and Fillmore County Extension Educator Michael Cruse said timing appears to be everything when it comes to fall harvesting in 2019.
“I’m glad you called me later last week, rather than on
Monday,” Cruse said. “I would have been much more down on the situation earlier
last week. However, a couple of windy days helped some farmers take some corn
and beans out of their fields. In spite of that, we’re still behind and we’ll
still be scrambling to make sure everything gets done before the ground
freezes. At least we’re starting to make some progress.”
The excess rainfall this year means the crops will come out of the fields much wetter than normal. He said the recent windy days seem to have put soybeans into pretty good shape. But, the corn is still going to require some time in the dryer, which isn’t a big surprise this harvest season.
Harvest season is underway in southeast Minnesota, all be it slowly, according to Michael Cruse of the University of Minnesota Extension Service. There’s still a long way to go in very we conditions. (Photo from UMN.Extension.Edu)
“The beans are actually drying down to the point that it
looks like they’ll be okay,” Cruse said. “Just be patient with them. Obviously,
the last thing you want is to get a big snowfall on top of them, but they seem
to be coming along. However, the hard truth is that the majority of our corn
crop will come out of the field too wet.
“No matter how long we wait this fall, we just won’t have
the drying conditions to get that corn down to optimal moisture,” he added.
“That’s probably why we see a lot of farmers working corn right now. They know
there’s going to be a bottleneck while the corn has to sit in their dryers and
it’s going to take some time. Get a head start because it’s going to take a
while.”
The U.S. Department of Agriculture’s Farm Service Agency (FSA) reminds dairy producers that the deadline to enroll in the Dairy Margin Coverage (DMC) program for 2019 is Sept. 20, 2019.
The USDA wants to remind dairy farmers that signup for the Dairy Margin Coverage Program ends on Sept. 20. (Photo from AgDaily.com)
Authorized by the 2018 Farm Bill, the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
“Over 19,100 operations have signed up for DMC since the new program opened enrollment on June 17,” said FSA Administrator Richard Fordyce. “DMC is a great risk management tool that protects against narrowing margins caused by down turns in the market and increased feed costs. I encourage farmers who have not yet enrolled to sign up as soon as possible.”
As the 2019 enrollment period draws to a close, FSA estimates over $257.7 million in payments to producers who are currently registered. Also, nearly half of the producers are taking advantage of the 25 percent premium discount by locking in for five years of margin protection coverage. FSA has launched a new web visualization of the Dairy Margin Coverage Program data, which is available here.
Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium.
For example, a dairy operation that chooses to enroll for 2019 an established production history of 3 million pounds (30,000 cwt.) and elects the $9.50 coverage level on 95 percent of production will pay $4,275 in total premium payments for all of 2019 and receive $15,437.50 in DMC payments for all margin payments announced to date. Additional payments will be made if calculated margins remain below the $9.50/cwt level for any remaining months of 2019.
Enrollment for 2020
For 2020, dairy producers can sign up for coverage under DMC beginning Oct. 7 through Dec. 13, 2019. At the time of signup, dairy producers can choose between the $4.00 to $9.50 coverage levels.
DMC offers catastrophic coverage at no cost to the producer, other than an annual $100 administrative fee. Producers can opt for greater coverage levels for a premium in addition to the administrative fee. Operations owned by limited resource, beginning, socially disadvantaged or veteran farmers and ranchers may be eligible for a waiver on administrative fees. Producers have the choice to lock in coverage levels until 2023 and receive a 25-percent discount on their DMC premiums.
Producers who locked in coverage in the 2019 sign-up must certify the operation is producing and commercially marketing milk and pay the annual administrative fee during the 2020 enrollment period.
To assist producers in making coverage elections, USDA partnered with the University of Wisconsin to develop a DMC decision support tool, which can be used to evaluate various scenarios using different coverage levels through DMC.
2019 Retroactive Intergenerational Transfers
Participating dairy operations who had an intergenerational transfer between 2014 and 2019 will a have a one-time opportunity to increase their established production history during the 2019 and 2020 annual coverage election periods. Retroactive payments based on the increased production history will apply for 2019 and not prior years.
A dairy operation may add to their approved production history for an intergenerational transfer when a spouse, child or grandchild join a participating dairy operation. Non-lineal relatives, such as siblings, cousins, nieces or nephews, that join the operation will not be eligible for a production history increase.
The increase to the established production history of the participating dairy operation will be determined based on multiplying both the national rolling herd average data for the current year in effect at the time of the intergenerational transfer and the quantity of cows purchased by the joining family member within 60 days of joining the dairy operation. For an intergenerational transfer to be recognized by FSA, the requesting dairy operation will meet all eligibility requirements including an ownership provision for those entering the business.
Applications for an intergenerational transfer must be submitted by Dec. 6, 2019, for approval by the local FSA county committee, to be eligible for the increased production history effective on January 1, 2019.
More Information
On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.
