Farming industry is turning from barley to canola and soybeans
Inside Ag
Several grain varieties catching the eyes of farmers
MINOT DAILY NEWS
PAGE 2
By MARK JONES
Staff writer mjones@minotdailynews.com As farmers begin to prepare for the planting season, there appears to be one crop that will likely be passed over this spring. According to Chad Anderson of the North Dakota State University North Central Research Extension Center south of Minot, barley is a crop that is losing popularity in the farming industry. Anderson says the lack of cutting contracts has made it difficult for those in the farming industry to justify planting barley. “There has been a three-year downward turn in the worldwide carriers (of barley),” he said. Anderson says there are no signs the downward spiral is going to turn around any time soon. And as long as there is the case there will be limited cutting contracts. According to the state of North Dakota agriculture website, barley is the oldest domesticated grain, having been planted for at least 10,000 years. Currently, barley is grown in about 100 countries around the world. North Dakota leads the nation in barley production, in
particular two grades – malting barley, which is a higher grade, is used for human consumption. The lower grade of barley is used in the making of livestock feed. So what will be planted in place of barley? Anderson says most of the small grains are in favor this season except for barley. However, he points two grains in particular. “Canola and soybeans,” he said. Anderson says farmers will use the acres of farmland that would normally be used for barley to plant canola and soybeans. “Farmers offset that by (planting) canola and soybeans,” he said. According to the same North Dakota website, canola has been grown in the state for roughly the past 25 years. North Dakota also leads the state in the production of canola. Oil from canola is used to make margarine, salad oil and shortening. Soybeans are used in hundreds of industrial applications, food products and animal feed. North Dakota also ranks 11th in the country in soybean productions. Cass County in the eastern part of the state is among the nation’s leader in soybean production.
By MARK JONES
Staff writer mjones@minotdailynews.com The cold and harsh winter in northcentral North Dakota had an impact on every aspect of life this year. The farming industry was no different. And while the planting season is still a ways off, due to large amounts of snow still on the grow, farmers are already starting to take notice of the different types of grains for the upcoming planting season. According to Chad Anderson, a seed production specialist with the North Dakota State University North Central Research Extension Center, there are about a half dozen or so grains that are gaining in popularity among farmers. Anderson says Elgin-ND, SY Soren, SY Valda, WB 9507, Faller Spring Wheat and ND Vitpro are grains that are on the rise. “They’ve got good yield potential,” he said. “And they got a good test in weight and protein.” According to the NDSU research foundation website, Elgin-ND was created by the Hard Red Springs Wheat Breeding Program at NDSU and was released by the university’s agricultural experiment station in 2012. The website also says Elgin-ND is similar
MARCH 2017
in conventional height with Faller and Glenn. According to the website www.syngenta.com, SY Soren was among the top two spring wheat varieties planted in North Dakota during 2016. SY Soren and SY Ingmar were planted on a combined 26.9 percent of the 6.30 million aces of land dedicated to spring wheat. According to the same website, SY Valda is a red spring wheat variety and offers a strong disease package. It is widely adapted and is well-suited for growing conditions in the Northern Plains. Anderson says there have been new six companies looking into the surging grains. “There are so many players in the wheat grain (industry),” Anderson said. He also says that is a higher number than in previous years. Anderson isn’t sure why there are more companies looking into different grains. “We’ve been trying to figure that out,” he said. He suspects that with new technology coming down the road, companies may be trying to stay on top of change. Despite the large amount of snow, it likely won’t have an impact on the planting season. “It hasn’t,” Anderson said. “The smaller grain has such a wider planting window.”
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Inside Ag
Producers call for strong crop protections in new farm bill
MINOT DAILY NEWS
PAGE 4
A
By JILL SCHRAMM
Senior Staff Writer jschramm@minotdailynews.com strong crop insurance program is where North Dakota producers want congressional farm bill writers to put their focus this year. Congressman Kevin Cramer, R-ND, said the House Agriculture Committee, led by Texas Republican Congressman Mike Conaway, was to begin discussion in midFebruary on a farm bill to replace the existing bill that expires in October 2018. Although not on the committee, Cramer
said he will be closely monitoring the bill’s progress. The Senate Agriculture Committee, led by Kansas Republican Sen. Pat Roberts, also will begin field hearings soon. Sen. Heidi Heitkamp, D-ND, said she has asked for a field hearing in North Dakota. Both Heitkamp and Sen. John Hoeven, R-ND, serve on the Agriculture Committee and Hoeven chairs the Agriculture Appropriations Subcommittee. North Dakota farm organizations will be watching to ensure crop insurance remains a priority. “We need to maintain the crop insurance program,” said state Farm Bureau President Mark Watne. “That’s essential.” “Insurance is really the true safety net,” said state Farmers Union President Daryl Lies. “Let’s make sure it’s providing the coverages for the crops that are grown.” The Farm Bureau also would like to see ties cut between crop insurance and conservation compliance.
Watne said farmers go uncompensated for conserving land and soil, protecting water, developing technology and training the next generation. There’s value in these activities in terms of an abundant food supply, he said. “They do all these things and they do not really get paid for that portion of it. They have no way to pass those costs on,” he said. “It really, simply gets down to, if you want farmers to do specific conservation practices, you need to pay them. You need to pay them fairly.” However, Lies noted the U.S. national debt of about $20 trillion will put pressure on farm bill discussions, and the need to control spending will influence the crafting of American food policy. “If something does get derailed, it’s going to be derailed on the fact that we are facing astronomical debt,” he said. Hoeven said he will work for a strong crop insurance program and to continue provisions he was able to help insert that prevent the ex-
MARCH 2017
ecutive branch from administratively cutting the program, which has been a threat in the past administration. “You start by building on the strength in the current farm bill,” he said. “It’s retaining and, hopefully, improving it. I don’t think we are going to throw out the model. I think we are going to take what we have and build on the strengths.” He will be working for a farm bill with a strong safety net, including improvements to the Agriculture Risk Coverage program to buffer the impact of the current price slump on data driving that program. He also had pushed to retain the Price Loss Coverage option in the current farm bill and believes having an option is important. Additionally, Hoeven and Sen. Amy Klobuchar, D-Minn., have introduced a bill to increase the direct loan and loan guarantee levSee BILL — Page 5
Inside Ag MINOT DAILY NEWS
MARCH 2017
Bill Continued from Page 4
els through Farm Credit Services from $1.3 million to $2.5 million. “Access to credit is going to be really important,” he said. “The two areas that I’m a very interested in are trade promotion and research,” Heitkamp said. Both will be troublesome areas because of the president’s proposed trade policies and the nation’s fiscal situation, she said. “We need to build friendships and build markets, not scare markets,” Heitkamp said. “So far, the president seems more willing to look at the complaints of manufacturers and is less concerned about maintaining the markets that we have grown over a number of years.” President Trump’s new director of the Office of Management and Budget, Rep. Mick Mulvaney of South Carolina, has not supported
Hoeven
Heitkamp
the farm bill in the past, which bodes poorly for funding support for farmers in the new bill, Heitkamp added. “We are going to be challenged in agriculture with tight budgets,” Heitkamp said. “We took some pretty healthy cuts in the last farm bill, and we don’t plan on doing that again.” Cramer said the current farm bill is spending about $100 billion over 10 years less than projected, which is a good place for agriculture to be going into the new farm bill discussion. Some of the savings results from fewer crop disasters, but the SNAP nutritional program, familiar as food stamps, also has shown savings. Cramer said major changes in the
Cramer
Lies
farm bill are being talked about, including in the Agricultural Risk Coverage program. ARC has had issues because data supporting the program hasn’t been good. “We need to find a new, more efficient, farmer-friendly program,” Cramer said. Watne said repairing the existing farm bill would be easier than overhauling it. “What we need to do is fix what people don’t like about ARC and PLC, which is the level of price support,” Watne said. “The program is working somewhat like intended, but the budget constraints have lowered
the amount of support levels, so we need to increase both in ARC and PLC.” Along with good crop insurance, what Farm Bureau members Watne want are fewer regulatory burdens, Lies said. “Let’s have the federal government inflict less on us. Therefore, we don’t have as big a need for government support,” he said. Cramer and Hoeven also stress the need for regulatory changes affecting producers, both inside and outside of the farm bill. Banking regulations must change to remove the pressures on community banks that have led many of these ag lending institutions to close, Cramer said. Like Hoeven, he would like to see loan limits raised at Farm Credit Services. “Caps are very low – far too low to be realistic. It doesn’t reflect contem-
PAGE 5 porary ag input costs,” he said. Cramer would like to see environmental rules coincide so that farmers aren’t faced with one requirement from the Fish and Wildlife Service and another from the U.S. Department of Agriculture. He supports opening the door to renegotiation of permanent easements held by FWS. The congressional delegation is optimistic about the influence Agriculture Secretary pick Sonny Perdue will have in moving the farm bill forward. Heitkamp said she has been encouraged by Perdue’s support for agricultural trade exports, while Hoeven said the new secretary will play a role in uniting ag interests in Congress. “The key is we build the coalition to get enough votes,” Hoeven said. “That’s why it’s important we have an ag secretary we can work with. He understands you have to build that coalition between North and South and Midwest states.”
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Inside Ag MARCH 2017
MINOT DAILY NEWS
Effertz elected chairman of Federation of State Beef Councils Jerry Effertz, a cow/calf operator from Velva, has been elected chairman of the Federation of State Beef Councils for 2017. The Federation of State Beef Councils is the home of state beef councils at the national level, representing state beef council interests and Effertz helping establish funding and direction for the national Beef Checkoff Program. Effertz and his wife, Norma, operate Black Butte Acres Limousin Ranch, raising seedstock Limousin cattle and backgrounding feeder calves. To educate people about the cattle business and stewardship of the land, they also operate Black Butte Adven-
tures, which includes hiking and biking trails as well as farm tours. Effertz is the third generation of his family to own and operate their farm and ranch. He has also served in leadership positions in several state and national beef industry organizations. He was chair of the North Dakota Beef Commission, a national director on U.S. Meat Export Federation, chair of the North Dakota Stockmen’s Association Purebred Council, and a founding member and chair of the North Dakota Limousin Association. He has also served on several national beef checkoff committees, including the Retail, Public Relations and Global Growth Committees, as well as the Joint Checkoff Market Research Working Group, where he was chair. In addition to serving as 2017 chairman of the Federation, Effertz will serve on the
Beef Promotion Operating Committee (BPOC), which helps determine funding for beef checkoff projects at the national level. The Federation of State Beef Councils is a division of the National Cattlemen’s Beef Association (NCBA), which is a contractor to the Beef Checkoff Program. The Beef Checkoff Program is administered by the Cattlemen’s Beef Board, with oversight provided by the U.S. Department of Agriculture. The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board.
PAGE 7
Applications being accepted for specialty crop grants BISMARCK (AP) — North Dakota’s Agriculture Department is accepting applications for grants to help promote specialty crops. The state last year got $2.5 million from the federal government for the grants. This year’s allocation won’t be known until next month, but Agriculture Commissioner Doug Goehring says the application window has still been opened. The federal government defines specialty crops as fruits and vegetables, tree nuts, dried fruits, and horticulture and nursery crops. Specialty crops grown commercially in North Dakota include dry beans and peas, lentils, potatoes, confection sunflowers, grapes, honey and various vegetables. The deadline to apply for a grant is April 20. The grants will be awarded later this year.
Inside Ag
Kids can take ag classes online at Nelson Ag Academy PAGE 8
MINOT DAILY NEWS
By ANDREA JOHNSON
Staff Writer ajohnson@minotdailynews.com When LeRoy Nelson was getting ready to retire a few years ago, he wasn’t willing to give up being in educator. Nelson, a rancher who had been an agriculture teacher for 20 years, then a school superintendent for five years, knew there was still a need for agriculture education at schools in the region. Many high schools don’t have the resources to offer agricultural education and many students are interested in taking those classes. So Nelson, from Scobey Mont., started the Nelson Academy of Agricultural Sciences Online to help fill in the gaps. “We started (in 2011) with one
Submitted Photo
Nelson Ag Academy offers online ag education for schools that don’t have programs. course and eight students in Intro Nelson said student numbers will be about the same this year. to Animals,” said Nelson. The classes are offered in an onLast year there were about 537 students enrolled in 27 courses and line format similar to online
classes taught at a high school level. The classes are accredited in all 50 states, taught by certified, qualified teachers. Coursework meets National Agricultural Education standards and uses a lot of material from the U.S. Department of Agriculture. Nelson said there isn’t a lot of fluff in the course content. “I teach all the Montana and North Dakota and Illinois students,” said Nelson, and there are six other teachers around the nation that teach students in other states. In North Dakota, the Academy is allied North Dakota Center for Distance Education, which enrolls students and provides course transcripts. Students can receive high school credit for the courses. Nelson said about half the high
MARCH 2017
schools in North Dakota and Montana are not able to offer agriculture courses. Other students are at private schools or are home schooled. “So we kind of pick up the slack of those schools,” he said. The college-type format of the online courses is beneficial to students who will likely take at least one online course even if they are enrolled full time in classes on a college campus. They also provide more flexibility for students. Classes are $169 apiece for North Dakota students and $279 apiece for students outside North Dakota. “We are trying to keep our tuition cost down so the home school students can afford it,” said Nelson. More information can be found at allagonline.com.
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Inside Ag
Ward County grower’s yield earns place in national wheat contest
MARCH 2017
By JILL SCHRAMM
Senior Staff Writer jschramm@minotdailynews.com DONNYBROOK – Planting his wheat acreage to a super high-yielding variety paid off for Donnybrook farmer Jim Pearson last year. Pearson placed second in North Dakota in the National Wheat Yield Contest’s Spring WheatDryland category in showing a yield increase of 110.7 percent over the most recent county average published by the U.S. Department of Agriculture-National Agricultural Statistics Service. He achieved a yield of 99.03 bushels per acre with WestBred variety WB9653. Pearson said his seed supplier, Mark Birdsall, talked him into entering the inaugural contest organized by the National Wheat Foundation. According to WestBred, a sponsor of the contest, more than 170 individual growers across wheat-growing counties in the United States entered to compete in four categories: irrigated winter wheat, dryland winter wheat, irrigated spring wheat and dryland spring wheat. The top Spring Wheat Dryland award for
MINOT DAILY NEWS
North Dakota went to Kent Pfaff of Washburn, who harvested 104.3 bushels per acre, or 126.7 percent above the county average, with 3530 Croplan. Five North Dakotans were recognized in the contest. The National Wheat Yield Contest recognized national winners in each category as well as the top three state winners per category. Winners were determined by evaluating the yield percentage increase above the USDA-NASS county averages. The contest encouraged growers to innovate, exchange knowledge and employ the newest available technology. Pearson said he’s been intrigued with finding ways to increase his wheat yield, which led him to WestBred. “I had raised this same variety back in 2015 on a small scale,” Pearson said. “I saw the potential this had so it kind of got me excited about WB9653. It’s a very high-yielding wheat.” Last year also was a very good season in terms of weather ideal to an award-winning crop. “We were never short of moisture really on this crop, and the temperatures were about what you want for raising spring wheat. For a growing
year, last year was about as perfect as you can get,” Pearson said. Pearson said he didn’t treat his wheat acres any differently than any other crop acres but he did invest in the necessary inputs. That meant proper fertilization and treating with fungicide to ensure the wheat remained disease-free. The success of the yield really had a lot to do with WestBred, though, he said. “WB9653 is just an awesome variety,” he said. Protein tends to not be quite as high on the higher yielding wheat, but Pearson was pleased with the 14.4 percent on his contest entry. Pearson devoted all his wheat acres last year to WB9653. He also grows canola and soybeans on the family farm between Donnybrook and Carpio. The farm has been in the family since his great-grandfather came to the area in 1902. Pearson also attributes some of his yield success to the change that’s occurred over the years from a conventional till operation to a minimum and no-till operation. Finding the right variety for his operation comes down to testing, though, because what does well elsewhere doesn’t neces-
PAGE 11
sarily guarantee success in his area. Running the truck and combine during the 2016 harvest was a treat as far as that experiment went. “It’s kind of fun when you can see grain leaving the field that fast,” he said. “I will definitely be raising more of this.” However, he’s not through with experimenting. He’s looking at some new varieties, including another from WestBred, to try. The registration deadline for the 2017 National Wheat Yield Contest is Aug. 1 for spring wheat and May 1 for winter wheat. Growers can visit yieldcontest.wheatfoundation.org for details. “Through this contest, we’ve learned different management techniques growers are employing to maximize the proportion of genetic yield potential they harvest from their wheat seed investment,” said John Fietsam, wheat technical product lead for Monsanto, in a prepared statement. “By harnessing the benefits of new technology, the best wheat genetics and innovative production practices, the winning growers have shown the boundaries of wheat yields can be pushed.”
Go
SEND O
Cropland & pastureland values down
Inside Ag PAGE 14 By ELOISE OGDEN Regional Editor eogden@minotdailynews.com Cropland and pastureland values have been on the decline along with a decline in financial performance of ag producers in North Dakota. Paige B r u m mund, extension agent, agriculture and natural reBrummund swo ui r ct ehs North Dakota State University Extension Service in Ward County, said according to the National Agricultural Statistics Service, the statewide average price of cropland is down 6.5 percent from 2015 to 2016, and pastureland values have decreased 2.4 percent. “As far as rents go, it can be hard to get significant data due to limited quantity of surveys returned, but the data we do have does shed some light on trends,” Brummund told the Minot Daily News Thursday, Feb. 16. Not just in 2016 but ag producers have been experiencing a decline in financial performance. Brummund said there has been a sharp decline in financial performance of ag producers since 2012 because of sharply lower grain prices. “Median net farm income declined 62 percent in 2013, 40 percent in 2014, and 65 percent to $18,982 per farm in 2015. This sharp decline in income naturally has an effect on the ability of producers to make land See VALUES — Page 16
MINOT DAILY NEWS
MARCH 2017
The statewide average price of cropland and pastureland values have decreased from 2015 to 2016, said Paige Brummund, Ward County extension agent. This photo was taken south of Minot. Photos by Eloise Ogden/MDN
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PAGE 16
Values Continued from Page 16
purchases. Less competition over land has lowered the price of what producers are willing and able to pay,” Brummund said. As for renting land, some farmers and ranchers are having to make decisions whether to keep renting land at higher prices, Brummund said. “When it comes to renting land, the minimal, and sometimes negative return for most crops simply will not allow producers to continue to pay the higher rents and still remain profitable,” she said. “Land rents cannot continue to increase or remain at the higher prices paid since 2012, while profits decrease. Some producers have had to let some of those acres that were being rented for higher prices go.” Brummund said according to the NASS survey, Ward County cropland rents average $50 an acre and pasture land averages $13 an acre. “These values are simply averages and the range of rents vary greatly. Field size, topography, soil type, location and availability of rental land affect this range. The published values in the NASS reports should never be used as the only factor to establish rental arrangements,” she said. “At the end of the day, landowners and the producers renting the land will have to communicate and come to an agreement that will work for both parties involved. There has been some interest in flexible rents that allow for ad-
County Benson Bottineau Burke Divide Dunn Eddy Foster McHenry McKenzie McLean Mercer Mountrail Pierce Ramsey Renville Rolette Sheridan Towner Ward Wells Williams
justments in rent to occur based on changes in revenue being generated from the land,” Brummund said. This past fall, Andrew Swenson, farm management specialist with NDSU Extension Service in Fargo, predicted, in a news release, that 2017 might be another year of declining land values. North Dakota had an 11-year period in which cropland values averaged an annual increase of 15 percent, according to NDSU information. That 11-year period from 2003 to 2014 was the strongest sustained run-up in cropland values in the past 100 years. Swenson said last April that the last significant period of declining land values was from 1981 to 1987. Land values dropped a total of 40 percent. It took 24 years, until 2005, for prices to get back to the 1981 level. He said crop profitability and interest rates drive land values. Following is a list of the average value of rented land for Ward and counties in the surrounding area. The prices are from the 2016 annual survey of farmers and ranchers survey funded by the N.D. Department of Trust Lands. It is the most recent survey available. Another survey is expected to be released in April. Readers are reminded this is a sampling of agriculture producers and in some counties a small number of people responded to the survey. About 4,500 farmers and ranchers were sampled for the survey conducted Jan. 19-Feb. 12, 2016.
Non-Irrigated Pastureland $785 $772 $568 $500 $966 $943 $838 $824 $571 $1,002 $944 $612 $920 $800 $879 $620 $796 $719 $766 $895 $511
Non-Irrigated Cropland $1,734 $1,570 $1,115 $955 $1,342 $1,815 $2,189 $1,488 $1,232 $2,2126 $1,406 $1,542 $1,839 $1,538 $1,839 $1,239 $1,329 $1,556 $1,846 $1,822 $1,062
MARCH 2017
Faba bean, cool season legume for northern North Dakota Legume Logic and NDSU hosted in depth Faba Bean Seminars at both Langdon and Minot in early February. Subjects that were covered included: production, agronomics, economic potential, markets, insurance, variety development and ended with a grower panel. Over 100 area producers came with the hopes of gleaning some knowledge regarding this new cool season legume. Dick Roland, owner of Legume Logic from Crosby, provided an overview of the benefits of faba beans in a grower’s rotation. He indicated that faba beans are the highest yielding legume with an upright plant, ranging from 3 to 5 feet tall, with excellent lodging resistance and pods from 10-13 inches above the ground for an easy harvest. Above all, they handle wet soils and are tolerant of the root disease that is hampering peas and lentils in North Dakota. Faba beans are known as the highest nitrogen fixing annual legume and will contribute 65 lbs. of nitrogen to the following crop along with up to a 23 percent increase in yields. Roland also indicated faba beans have a strong taproot that will help with compaction and water removal. He also promoted early seeding and that faba beans are very frost tolerant. Cody Roland, general manager of Legume Logic, followed up with a discussion on the economics and promoted them as a low input crop with similar costs to field peas but with higher yields and with added benefit of fixing 30 percent more nitrogen for the following crop. Those in attendance also learned about the multitude of markets for faba beans and some exciting potential uses for this crop in the ingredient markets for both humans and in the expanding pet food markets. It was pointed out by the marketers that with the high protein content of this crop that it would have a higher
market value in the feed markets and fractionation industry. Presently there is a well developed market in the swine rations for the zero tannin types in southern Manitoba and Saskatchewan, where most of the Canadian production is being marketed. The feed potential of faba beans in livestock rations was presented by Chanda Engel from the Carrington Research Station. Don Driscoll, trader with Maviga NA, updated the group on the export market for the tannin types that are preferred by this trade. Ryan Edinger, a trader with AGT Foods, discussed the huge potential in the ingredient markets. AGT Foods operate a world class fractionation plant in Minot. He indicated they would be again contracting a limited amount of acres this spring to continue their work on developing markets for the starch and protein in the ingredient markets. Insurance alternatives are offered through the FSA office and the Risk Management according to the presenters on this subject. Growers were encouraged to contact their FSA office and their insurance agency for more details and to be aware of the deadlines. North Dakota State University researchers presented their results from last year’s trials on rate of seeding and date of seeding trials at both Minot and Langdon along with an update from Brian Jenks, weed researcher at the Minot Station, on the progress of labeling crop protection products. Disease management research from Langdon and Carrington finished up the agronomics of faba beans. This research can be accessed on the NDSU Research Centers web sites. If growers are interested in raising faba beans they should contact Legume Logic at 965-6058 to obtain the Faba Bean Production Guide.
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Astute farm managing key to 2017 PAGE 20
By KIM FUNDINGSLAND Staff Writer kfundingsland@minotdailynews.com Low prices for crops and livestock have farmers, ranchers and lenders concerned about profit prospects for 2017. The consensus is that shrewd financial management will be an important factor in farm profits in the growing season ahead.
Inside Ag MINOT DAILY NEWS “Growers need to watch their expenses. That’s the key,” says Fred Beuchler, chief lending officer for First Western Bank, Minot. “Watch input costs and try to maximize yields. Crop rotations is a big thing. Don’t put all your eggs in one basket. Spread the risk. Don’t always go for the home run.” One of the most difficult parts of the planning process for growers is trying to anticipate commodity prices. Lately prices for most crops have been much lower than what many growers have experienced in previous years and there may not be any substantial increases in 2017. “On the grain side there is a glut of product out there. It sounds funny to say but the world is really producing more food than it can consume,” said Blaine DesLauriers, president First International Bank, Minot. DesLauriers says growers in the Minot area did a good job in 2016 when cooperative growing conditions resulted in some excellent
yields. He says production in the region has nearly doubled from what it was in the 1970s but that success hasn’t necessarily turned into bigger profits. Expenses have risen too, especially on farm machinery. “The strong U.S. dollar doesn’t help on the export side either,” noted DesLauriers. “Who knows what the growing season will do in 2017. A lot of farmers are looking for ways to tighten their belt. They are trying to look at ways to reduce some of their costs.” While farmers tussle with shortterm and long-term planning, the markets are not showing any indication of a rapid rise. Nevertheless, says Beuchler, there are some positives in the marketplace. “Wheat prices are up almost 20 percent,” noted Beuchler. Diversity may be a more important factor in farming this year than it has been for many years. Last year many growers switched from wheat to corn but, for many, corn prices have fallen below the cost of pro-
MARCH 2017
duction. “Corn is in the tank,” concluded DesLauriers. “It’s too bad. I know guys that produced over 100-bushel corn on dry land with no irrigation. You have to be a good marketer, that’s for sure. It’s a tough game to play.” Despite the current glut of grain on the world market, DesLauriers says “we might see a little increase” in corn and wheat prices. There’s uncontrolled events that could cause increased market prices too, such as production troubles elsewhere in the world than North Dakota. “It’s a matter of supply and demand,” said DesLauriers. “I hope Mother Nature blesses us with the crop we had last year. Most areas had good crops,” said Beuchler. Both lenders emphasized that crop insurance is a necessary expense to protect against losses in the field. “Absolutely,” said DesLauriers.
“Multi-peril crop insurance is pretty much a must.” The North Dakota State University Extension Service has produced a summary of both short and longterm planning prices that can be used by farmers trying to determine the best way to proceed in 2017 and beyond. NDSU cautions producers about making large purchases without thoroughly evaluating what might happen to crop prices in the years ahead. According to Purdue University agriculture economists, grain prices in 2017 will likely remain at or near their lowest level in a decade. They cite U.S. production that has outpaced usage for corn, soybeans and wheat. Livestock producers usually benefit from low grain prices because it becomes cheaper to feed their herds. However, say the Purdue ag economists, cattle prices have dropped below the break-even point for many producers “which could bring herd expansion to a halt in 2017.”
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Inside Ag
MINOT DAILY NEWS
PAGE 22
MARCH 2017 Land inheritance to be discussed at upcoming Minot Area Chamber of Commerce meeting
BY ALLAN BLANKS
Staff Writer ablanks@minotdailynews.com Increased age alongside rising land expenses has prompted farmers and ranchers to discuss land inheritance during the upcoming Minot Chamber of Commerce meeting held Thursday, March 9, at 10 a.m., inside the North Central Research Extension Center, south of Minot. During the two-part seminar, the primary focus will address who should develop a transition plan and the best way to execute it. Rob Orts, chairman of the Agriculture Committee of Minot, voiced the growing concerns faced by today’s farmer.
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During their two-part seminar, the Minot Area Chamber of Commerce will address who should develop a transition plan and the best way to execute it. “With today’s average farmer approaching 60 years old, there’s a lot of concern,” Orts said. “Farmers would love to pass their farms to the next generation but there’s a lot of
hoops to jump through.” John MacMartin, president of the Minot Area Chamber of Commerce, believes the dual seminars will help farmers and ranchers navigate through
those hoops. “A lot of farmers don’t know if they should talk to their attorney or their accountant,” MacMartin said. “In some situations, you have farmers
and ranchers who may not have an attorney or an accountant. We’re hoping this meeting spurs a conversation with farmers, ranchers and their families about how to pass on their farms. As the title says, ‘it’s your land, who should inherit it?’” Along with informing veteran farmers and ranchers about transition plans, Orts and MacMartin asserted that younger professionals could benefit as well. “We want to encourage younger farmers to consider what they can do now, to prepare for the next 20 to 30 years,” Orts said. “We want younger farmers and ranchers to think about what they should put in motion to most
effectively plan for their farm transition.” For more information about the Minot Area Chamber of Commerce meeting or to register for the two-part seminar, call 852-6000 or send an email to chamber@minotchamber.org.
MINOT CHAMBER OF COMMERCE MEETING Thursday, March 9, at the North Central Research Extension Center Starting at 10 a.m.
Inside Ag
Ag retailers honor Heitkamp for work in Congress MINOT DAILY NEWS
MARCH 2017 WASHINGTON, D.C. – The Agricultural Retailers Association has honored U.S. Senator Heidi Heitkamp with its “Legislator of the Year” award, recognizing her work to stop a harmful Occupational Safety and Health Administration standard that would have shuttered North Dakota fertilizer retailers and forced farmers to travel further to purchase fertilizer. Heitkamp fought for over a year to keep OSHA’s Process Safety Management standard from going into effect. It would have applied tough, acrossthe-board restrictions on agricultural retailers that sell anhydrous ammonia, a common fertilizer, burdening retailers and farmers. “I’m proud to receive this award, but I’m even prouder of the work I spearheaded with North Dakota agricultural retailers to stop this standard from hurting our farmers and the rural businesses that support them,” said Heitkamp. “Had the rule gone into effect, it would have forced anhydrous ammonia retailers to shut down due to excessive compliance
Heitkamp
costs, forcing North Dakota farmers to pay more and travel greater distances with anhydrous – and that certainly wouldn’t have increased safety. Going forward, I’ll keep fighting wrongheaded federal policies to make sure farmers, ranchers, and the businesses that support them continue to thrive.” The award also recognized Heitkamp’s efforts to fix the U.S. Environmental Protection Agency’s over-reaching Waters of the U.S. rule, including introducing a bipartisan bill to accomplish that goal. “It is an honor to present Sen. Heitkamp with ARA’s Legislator of the Year award,” said ARA President and CEO Daren Coppock. “The work
she did across the aisle with Sen. Blunt to help block PSM enforcement, as well as fighting against EPA’s WOTUS rule, has been invaluable to ag retailers. We appreciate their dedication and continued support for the agriculture industry.” Heitkamp held two Subcommittee hearings to push the administration to withdraw the standard, helped temporarily block the standard through the appropriations process, and introduced bipartisan legislation to make OSHA scrap the standard and consult with farmers and retailers in a rulemaking process in the future. Complying with the standards
could have cost each facility up to $50,000, according to the North Dakota Department of Agriculture. More than 30 North Dakota retailers said they would have had to stop selling the fertilizer. Because of language Heitkamp helped include in the end-of-the-year spending bill Congress passed in December 2015, OSHA postponed enforcement of the guidance until October 2016. Ultimately the courts stopped the standard, ruling in September 2016 that the administration should have gone through the rulemaking process-seeking input from retailers-rather than simply issuing standards in July 2015 that were ef-
PAGE 23 fective immediately. In September, Heitkamp pushed key administration officials for a solution on the standards that would protect North Dakota farmers, fertilizer retailers and rural communities from harmful new federal fertilizer standards. Heitkamp called on the administration to voluntarily delay the standards given the impact they would have. In July, Heitkamp and U.S. Sen. Deb Fischer (R-NE) introduced bipartisan legislation to stop the harmful federal standard from going into effect. It would have required the agency to abide by a notice and comment rulemaking process when instituting a similar policy change in the future. The policy would have required facilities that store or transport 10,000 pounds or more of anhydrous ammonia to obtain Process Safety Management Standard documentation. If the facility could not obtain this documentation, it would have been forced to purchase new storage tanks, costing $70,000 or more.
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