Benton Ag Plus - February 6, 2021

BENTON AG Plus

Serving rural Benton, Morrison, Mille Lacs and Kanabec counties

Sauk Rapids Herald | Saturday, February 6, 2021

selection

Morrison County teen chosen as ag ambassador

BY NATASHA BARBER STAFF WRITER

LASTRUP – Sixteen-year-old Macy Hoffman does not want to be a nurse when she grows up.

Although it was and is the chosen path of her mother and sister, the career field does not appeal to her; she would rather be outside.

“I’m leaning toward agriculture,” Hoffman said.

“I’ve always been outside as a kid, and I don’t think I’d be happy staying indoors for very long. There are so many different opportunities in agriculture, and I just want to do

something I’m comfortable with, I’m going to stick with and I’m going to be happy I chose later down the line.”

Hoffman is one of the newest faces in the Minnesota 4-H Agriculture Ambassador program put on by the University of Minnesota Extension. She is the daughter of Rob and Bernie Hoffman of rural Lastrup.

As the lone appointee from the northeast region, Hoffman joins 14 youth from Dodge, Isanti, Le Sueur, McLeod, Nicollet, Olmsted, Renville and Washington counties as each endeavor on a yearlong journey to polish leadership skills, expand professional networks and advocate for agricultural issues.

The Pierz High School sophomore received notice of her selection via email.

“I might have cried,” Hoffman said with a smile. “I actually was in town shopping with my sister because she was leaving to go to college again.”

As a conversation about scholarships came up, Hoffman checked her email on her smartphone.

“I saw that they sent something and I clicked it,” Hoffman said. “I read the first paragraph, and I cried. I was just like, ‘I did it.’”

According to the UMN Extension, Minnesota 4-H Agriculture Ambassadors are representatives of the 4-H Youth Development program. Ambassadors are self-motivated, enthusiastic leaders who seek to lead and educate others in their community.

They are selected through a competitive application process that examines ambition in 4-H agriculture and animal science projects, career interest in agriculture, leadership qualities and willingness to bring about positive change.

Hoffman page 2C PHOTO BY NATASHA BARBER

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Macy Hoffman is one of 15 youth chosen for the Minnesota 4-H Agriculture Ambassador program. The program is in its second year.

Stakeholders will be notified of schedule change through email ST. PAUL – An informational session on Little Rock Creek that was planned for late January will be rescheduled for later this winter, according to the Minnesota Department of Natural Resources. A release notified stakeholders Jan. 27.

The DNR said it is working to complete its technical work, so the agency can update stakeholders on groundwater management work in the Little Rock Creek area. The DNR continues to explore options for meeting local water use needs while complying with Minnesota statutes.

The DNR continues to collect and analyze information about groundwater use and how that use interacts with stream flow and aquatic life in Little Rock Creek. The agency expects to soon be able to identify the next steps in its multi-year partnership with water appropriators and other stakeholders to ensure groundwater continues to be available for use without negatively impacting the natural environment.

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Hoffman fits the mold.

Growing up, Hoffman was exposed to agriculture through her parents. The family had horses and helped Bernie’s father with his beef farm before taking on that role themselves.

Today, Hoffman lends a hand with chores such as raking and baling hay and feeding animals.

She is a member of the Dynamites 4-H Club and Morrison County Hoofbeats 4-H Club.

She is entering her 10th season in 4-H where she shows goats and horses as well as participates in static projects and other activities. She has held every officer position in her local club as well as represented the Morrison County program as the federation reporter.

In addition to 4-H, she goes to open shows put on

by Western Saddle Clubs Association Inc., and participates in O-MokSee and as a member of the Crow Wing County Large Freestyle 4-H Horse Drill Team.

Hoffman works a retail sales job at RJ’s Meats in Hillman, is

PHOTO BY NATASHA BARBER

Macy Hoffman stands with her horse, Breeze, at her home in rural Lastrup Feb. 2. She often helps take care of the animals her family owns which include beef cattle, goats, horses and two pet dogs.

PHOTO SUBMITTED

Macy Hoffman stands with a goat after showing as part of the Morrison County Fair in 2020. She is a member of the Dynamites and Morrison County Hoofbeats 4-H clubs.

involved in the Pierz FFA own Boer goat herd.

Chapter, and within the Hoffman said she last month, Hoffman has hopes to advocate for invested in building her central Minnesota’s livestock producers and crop farmers, but she also hopes to focus on the opportunities within 4-H, specifically the agriculture-related project areas.

“I want to promote agriculture and use my voice to educate people who may not be involved in agricultural projects such as FFA or 4-H, so they understand its importance,” she said.

Hoffman said the group will meet four times during the year to share their experiences with one another. The youth have already created a video-sharing PHOTO SUBMITTED presentation to introduce In addition to her Morrison County 4-H endeavors, Macy themselves and their Hoffman competes at open shows and is a member of ambitions.

Given the ongoing pandemic, orientation is scheduled for a virtual session April 10. It is unclear at this time what other events will take place.

“I know one of our assignments is we get to be moderators at Project Bowl competitions in Minnesota,” said Hoffman, who has competed in the event.

Project Bowl is similar to a high school knowledge bowl competition. Teams of 4-H youth study 4-H project areas and compete as to who is the most knowledgeable on the subjects that can include general livestock, horses, wildlife and more.

“We get to sit in, ask them the questions, give them the answers,” Hoffman said. “As an agricultural ambassador I have the opportunity to do that. … I think I’m doing general livestock and I’m super excited for it.”

Hoffman looks forward to potential speaking engagements and opportunities to meet those working in various agricultural sectors. The wide variety of topics and constant changes affecting the industry – technology, mental health, weather, markets – keep her intrigued, and she feels her growth in the 4-H organization has prepared her for the ambassador role.

“I want to represent more than a kid who does this – I want to represent a kid who loves this,” Hoffman said. “There’s so much opportunity in agriculture.”

Although she is unsure what sector she may pursue postgraduation, Hoffman’s excitement about all things ag makes her a natural selection as the next youth advocate for agriculture.

the Crow Wing County Large Freestyle 4-H Drill Team.

Little Rock from page 1C

The DNR will notify the public when the meeting has been rescheduled through the email system and other notification methods.

Direct questions about the project can be addressed to Mark Hauck, DNR project manager, at 320-223-7846 or mark. hauck@state.mn.us.

To sign up for email updates and follow PHOTO BY NATASHA BARBER progress of the plan on the The Hoffmans’ horses, Jake (from left), Lexi and Breeze, gather around Macy Hoffman at DNR’s project webpage, her home in rural Lastrup Feb. 2. Hoffman is the daughter of Rob and Bernie. visit mndnr.gov/littlerock.

BENTON AG

SAUK RAPIDS HERALD | SATURDAY, FEBRUARY 6, 2021 | Page 3C

Dairies need to operate as businesses

BY KRISTA KUZMA | STAFF WRITER

After a year like 2020, Gary Sipiorski wants producers to be more proactive when it comes to the business side of their dairy.

“There are things we can do as dairy producers to prevent (volatility), and working with your lender is one of them,” Sipiorski said. … “Let’s face it; dairy producers have a great deal of assets invested, and they need to be able to work with a lender to make good use of those and yet have some boundaries of what makes sense to make sure everyone is successful.”

Sipiorski, an agricultural business and financial consultant, presented “Financial knowledge your banker wants you to know” Jan. 15 during a Minnesota Milk MinneSeries webinar.

“We do need to plan,” he said about dairy farmers. “I know with cows, you get up in the morning, there are chores to do, cows to milk and other things. ... I’m going to encourage you to take a look at a longer-term plan then just what the day to day is.”

Planning is needed because of the volatility seen in 2020. The novel coronavirus pandemic caused major disruption in the food service industry, which is only back to $54 billion in sales compared to $68 billion before the start of the pandemic, Sipiorski said.

Large swings in the milk price also meant more government aid, which accounted for 42% of net farm income in

2020.

“We’re not talking gross income, we’re talking net income,” Sipiorski said. “That has been huge.

Don’t expect that in the coming year.”

Sipiorski said a plan can help a farm manage potential inflation, which could happen as the country’s debt to revenue ratio increases.

“What happens with inflation is we have too many dollars chasing too few assets,” Sipiorski said.

On a dairy, Sipiorski suggests the debt to revenue ratio should be 1-to-1.

“I encourage you to look at your balance sheet,” he said. “Look at the amount of debt and divide it by the amount of revenue, the amount of gross income you’re generating on your farm. How close are you to 1-to-1?”

On a per-cow level, Sipiorski said debt should not exceed $10,000 per cow, and from a production standpoint, Sipiorski said not to exceed $20 of debt per hundredweight of milk.

“We see some farms exceed up to 2-to-1 (debt to revenue ratio),” he said.

“The concern is paying things back. I know interest rates are low right now.

We have to be careful not to get too far out.”

In the last 20 years, Sipiorski said the country’s private debt by individuals and debt from businesses has increased severely, with each category around the $14 trillion mark.

“Is debt wrong?” Sipiorski said. “It is not. It’s OK to borrow money as

long as you do it for the right purposes.”

To stay ahead of inflation and debt, Sipiorski said a dairy must have productive assets. Every dollar used to buy an asset should generate at least $1 in return.

“Be careful when you buy assets that don’t generate you enough income,” Sipiorski said. “A good example is a dairy cow. We can buy a good dairy cow for $1,500 and that cow will generate between $4,500 and $5,000 in income. That’s a good investment.”

Sipiorski cautioned about high-priced tractor and land purchases.

“Think about the return you’re going to get on them,” he said.

According to Sipiorski, the top 30% of dairy producers in the United States earn $1.25 more per hundredweight of milk compared to the average producer.

“I’m going to encourage you to get your financials together,” he said.

“This is a good time to do it. You can’t plant corn tomorrow so you need to get all your numbers in line, not only for your accountant for your taxes, but for your knowledge and your plan and to know what your profitability is.”

That $1.25 can add up to a significant amount of money over time.

“This is real money, and we need to figure out how to capture those kinds of dollars,” Sipiorski said.

Capturing as much profit as possible is important as production in the country continues to climb, the number of cull cows going to slaughter does not add up to where it should be to keep production down and grain prices increasing.

“Work closely with

who does your nutrition work,” Sipiorski said. “It’s possible we might be short with energy on corn and soybeans (because of the increased price).”

Going into 2021, producers will be working on taxes.

“Please do not run your farm based on your 2020 income tax return,” Sipiorski said. “That’s a terrible way to look at it.”

Sipiorski said he thinks many producers manipulated the amount of taxes they paid by prepaying before the close of 2020.

“We can really distort the income on a farm by the amount of depreciation taken by doing prepayments,” he said. “Be careful of that.”

Other paperwork to take care of is an accurate year-end balance sheet.

“At the 31st of December, you need to spend a few days before taking inventories of feed and cattle,” Sipiorski said. “If you haven’t done your balance sheet, do it. Get the numbers as accurate as you can – the assets and liabilities. Compare last year’s net worth to this year’s net worth.”

Follow that by doing an accurate accrual income statement.

“This is different than your taxes, but you’re still going to use income and expense,” Sipiorski said. “For example, if you paid an extra $50,000 fee in 2020 and will use it in 2021, you have to back that out. If you do your income statement, it’s going to show you had a lot more expenses than really what you did have. You need to do the same with cattle and feed inventories.”

Talking to a lender about current low interest rates and restructuring loans is also something many farmers should be doing, Sipiorski said.

“We are in a different

year of dairy farming,” he said. “It used to be if you took care of your cattle and your crops, you made money. And I can’t think of a better place to raise a family than on a farm.

Today, we have to run the farm first with the numbers, take a look at those and then we can make decisions on how to make our farm better.”

Other benchmarks to pay attention to include net worth, working capital, return on assets, return on equity, operating expense and cost of production and asset turnover.

“Can you turn (a profit from) it in three years?”

Sipiorski said. “If not, you have too many assets that are not productive and generating enough income.”

Having a cash income project is also important.

Knowing this information is important to running a successful business; however, Sipiorski said 20% of producers have a written business plan based on true cash income statement.

“Only 20% of dairy farmers do this and it

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ought to be much higher than that,” he said.

Milk marketing might be a part of this plan.

“If you’re going to do marketing, you have to educate yourself,” Sipiorski said. “Don’t just go out and start pulling triggers on marketing milk if you don’t understand what you’re getting into.”

Sipiorski suggested farmers work with cooperatives, brokers or extension agents to find more information.

Overall, Sipiorski said it is important for dairy farmers to write down business, marketing and transition plans, and communicate often with their lender.

“Want to get a lender’s attention? Show them you’ve done a cash projection. Lenders appreciate when you sit down with them early and you bring information to them,” Sipiorski said. “Less than 10% of producers will come in with the type of business plan I’m talking about. But we’ve got to do it today based on what we’re facing in agriculture.”

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PUBLIC NOTICES

SAUK RAPIDS HERALD | SATURDAY, FEBRUARY 6, 2021 | Page 5C

BENTON COUNTY BOARD OF COMMISSIONERS REGULAR MEETING MINUTES JANUARY 19, 2021 The Benton County Board of Commissioners met in regular session on January 19, 2021 in the Benton County Board Room in Foley, MN with Commissioners Steve Heinen, Scott Johnson, Ed Popp, Jared Gapinski and Beth Schlangen (virtual) present. Call to order by Chair Popp was at 9:00 AM followed by the Pledge of Allegiance to the flag.

Johnson/Gapinski to approve the agenda as written.

Motion carried unanimously per roll call vote.

Jim Hovda (160 North Freedom Road, Rice) appeared under Open Forum, expressing concern with individuals having to wait outside in the cold to enter the Government Center. He stated “...Commissioners, this is 2021... most everybody takes care of business by phone...I don’t think there is any reason for people to stand outside in any weather...let’s treat our good tax paying citizens better...”

Gapinski/Heinen to approve the Consent Agenda: 1) approve the Regular Meeting Minutes of January 5, 2021 as written; 2) approve the Special Meeting Minutes of January 12, 2021 as written; 3) appoint Natalie Schmitt to a three-year term on the Benton County Extension Committee—January 1, 2021 through December 2023; 4) approve public defender contract with Bradshaw and Bryant for commitment, guardianship and conservatorship public defenders, for the period of January 1, 2021 through December 31, 2021, with options to renew for three additional years, and authorize the Chair to sign; 5) accept and file Veteran Service Officer quarterly report as presented; 6) reappoint Bruce Bonebright to a three-year term on the Solid Waste Advisory Committee—January 1, 2021 through December 2023; 7) approve final plat of “Cornerstone Acres” in Watab Township, submitted by Tim and Gloria Rajkowski, and authorize the Chair to sign the final plat; 8) approve Purchase Money Security Agreement for S.C.O.R.E. Grant—City of Rice—for the purchase of two Belson outdoor eight-foot recycled park benches, four six-foot benches and four 40-gallon recycled plastic trash receptacles, and authorize the Chair to sign; and 9) approve 2020 Federal Equitable Sharing Agreement and Certification, and authorize the Chair to sign. Motion carried unanimously per roll call vote.

Roxanne Achman, Department of Development Director, presented the Department of Development 2020 Year-End Activity/Revenue Report. She stated “...we have seen an increase in permits across the board in all categories except ag buildings...and those remained fairly steady...the average permit value for house permits was $301,826...$35,233 for accessory structures...$53,934 for additions...ag buildings down slightly at an average permit value of $106,400...” Achman also provided detail on 2020 subdivisions, stating “...there are plenty of property splits occurring...”

Achman reported on the following topics: 1) Building Official Comments (the County Board renewed David Barsody’s contract for one year; the Department of Development will work to collect as many comments as possible from the public to address any concerns or complaints before they become a larger issue; every permit that the Department of Development issues will include a comment card); 2) Boundary Commission Cost Assessment (Achman commented “...the Boundary Commission was asked by us from one of the residents in an area of Little Rock Lake...where the property lines did not match up with the area they were occupying...so if anybody sold property, they could have title issues...the county has the

ability to move forward with this platting process and assess this cost back to those property owners... ultimately, it gives them a more saleable lot...we are looking at approximately $67,000 spread across 22 lots and the right-ofway for Watab Township...”); and 3) GeoPermits (will be extremely beneficial to the county).

Heather Bondhus from the Auditor-Treasurer’s Office explained that their office has received a request for abatement of late fees, penalties, and interest on 26 lots owned

by Cove Development Company, who is in the process of recording a plat to combine the smaller lots into larger lots in hopes of making them more marketable. She stated that, according to MN Statutes, “...except as provided... no reduction or abatement may be granted on the basis of providing an incentive for economic development or redevelopment”. Bondhus reported that, as of December 2020, when the request was received, the taxes on the 26 lots was $38,564 and the late fees, penalties, and interest were $11,327.51; Jim Brownson stated that Cove Development Company would be willing to pay the taxes in exchange for abatement of the other fees. Bondhus noted that the property taxes on those 26 lots have not been paid since 2018; as of January 2021, Cove Development Company owes a total of $94,791.32 on all of its lots. She stated that MN Statutes do not allow for the abatement as requested

by Mr. Brownson (an economic abatement would have to be approved in advance). Gapinski inquired of setting up a payment plan with Brownson. Bondhus stated “...if he wants to combine these lots, he must get current in payment...we would be willing to accept payments, but we are not able to authorize them to combine the lots and record a plat...” Achman added “...he could do several final plats...” Several Board members stated the fact that MN Statutes dictate what actions the County Board is able to take. Schlangen inquired as to past and current ownership of the property; she also inquired of the possibility of assessing this property at a lower tax rate (it was noted that this would require rezoning of the property). Gapinski commented “...this is out of our hands with the state statutes, but if we could have the county work with Cove Development the best way they can to stay within statute, but yet move it along...maybe break this up into a smaller piece...” No action taken at this time.

The Regular County Board meeting was recessed at 9:30 AM to conduct a Human Services Board meeting.

The Regular County Board meeting was reconvened at 9:39 AM. Board members reported on recent meetings they attend on behalf of the county.

Johnson/Gapinski to set Committees of the Whole: January 28, BEP Annual Meeting; February 2, Boundary Commission/DMV Issues, County Attorney education for new County Board members; February 8/May 3/August 2/ November 1, Human Services; February 11, Career Solutions Annual Workforce Development Highlights; March 2, County Board recognition of Employee Years of Service Milestones; March 4, County Board Goal-Setting Session; and April 6/October 5, County Board/ Employee Forums.

Motion carried unanimously per roll call vote.

Johnson/Heinen to adjourn at 10:10 AM. Motion carried unanimously per roll call vote.

Edward D. Popp, Chair Benton County Board of Commissioners ATTEST: Montgomery Headley Benton County Administrator R-5-1B

PROBATE NOTICE STATE OF MINNESOTA COUNTY OF BENTON DISTRICT COURT SEVENTH JUDICIAL DISTRICT PROBATE DIVISION Court File No: 05-PR-21-103

by the Decedent.

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Dated: January 27, 2021 /s/ Cheryl Woehler Registrar Dated: January 27, 2021

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Page 6C | SATURDAY, FEBRUARY 6, 2021| SAUK RAPIDS HERALD

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by Nathan Drewitz The program topics are: Each presentation will be 30 minutes – Grain Marketing Tips. Presented in length with time for questions.

by Edward Usset, grain marketing economist for the For more information or to register, contact Rod Center for Farm Financial Management.

Greder at 320-591-1662 or gred0014@umn.edu; or – Insect and Disease Issues for 2021. Presented Nathan Drewitz at 608-515-4414 or ndrewitz@umn.

by Bruce Potter, UMN Extension integrated pest edu. management educator.

To receive future events, educational programming – Nutrient Management and Environmental and agronomic updates by email, signup at z.umn.

Stewardship Given Current Conditions. Presented edu/tricountysignup.

by Fabian Fernandez, UMN nutrient management

IT’s coming!

Benton county resource guide The 2021 RESOURCE GUIDE

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An interactive map on the Minnesota Department of Agriculture website shows areas in Benton, Morrison, Stearns and Mille Lacs counties that are included in the statewide Groundwater Protection Rule. The map allows farmers to type in their address to see if their land parcels are affected.

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Aids farmers in compliance with rule fertilizer in areas vulnerable to contamination, and it outlines steps to reduce the severity of contamination in areas where nitrate is already elevated in public water supply wells.

Restriction of fall fertilizer applications, in vulnerable groundwater areas, begins Sept. 1 each year. Farmers can visit www.mda.state.mn.us to view the vulnerable groundwater area maps and determine whether the restriction applies to their land.

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ST. PAUL – The Minnesota Department of Agriculture has issued updated maps that will help farmers across the state comply with the Groundwater Protection Rule.

The Groundwater Protection Rule aims to reduce the risk of nitrate from fertilizer impacting groundwater in areas of the state where soils are prone to leaching and where drinking water supplies are threatened. The rule restricts fall application of nitrogen

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Extension to host Beef Calving Essentials webinar series ST. CLOUD – The University of Minnesota Extension is excited to host a six-part webinar series titled “Beef Calving Essentials.”

The Zoom meetings will take place 8-9 p.m.

Mondays and Thursdays in February. The series will focus on considerations to prepare for calving on beef cattle operations.

Farmers, 4-H’ers, ag business professionals who work with farmers and those interested in beef cows are invited to attend.

Feb. 8 – Calving Kits: Tools to be prepared for calving. Featuring Troy Salzer, St. Louis County Extension educator.

Feb. 11 – Calving Record Keeping.

Featuring Stacey Caughey, Beef Quality Assurance Program associate and Tarah Young, Carlton County Extension educator.

Feb. 15 – Calving Barn Preparation and Sanitation.

Featuring Melissa Runck, Pipestone and Murray counties Extension educator and Brenda Miller, Todd County Extension educator.

Feb. 18 – Calving Trouble: When to Help

Her and Intervene.

Featuring Dr. Joe Armstrong DVM, cattle production systems extension educator.

Feb. 22 – Helping Newborn Calves: Colostrum Needs, Teaching Calves to Nurse and the Grafting Process.

Featuring Eric Mousel, cow calf management Extension educator and Dana Adams, Extension educator of Stearns, Benton and Morrison counties.

Feb. 25 – Management of Calf Scours. Featuring Dr. Tony Dank, United States Department of Agriculture veterinarian.

Registration is required by 5 p.m. the day before the event. Register at z.umn. edu/calvingseries. A Zoom link will be provided following the close of registration.

Register once for all subsequent webinars.

If you are unable to attend the live sessions, you will receive the recordings for all the sessions via email at the end of the series.

For questions, contact Brenda Miller at nels4220@umn.edu or adam1744@umn.edu or call the Stearns County office at 320-255-6169, Ext. 3.

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marketing, whether they are currently involved in the industry or are interested in getting involved,” said Whitney Place, MDA assistant commissioner.

“2021 marks an exciting turning point in the history of industrial hemp with Minnesota and tribal nations overseeing federally backed programs, and we want to share as much information as we can about this crop so growers and processors can be successful.”

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ST. PAUL – The Minnesota Department of Agriculture invites anyone interested in hemp and hemp production to its 2021 Industrial Hemp Forum.

The two-day virtual evert will be noon to 4 p.m. Wednesday, Feb. 10, and Thursday, Feb. 11. The event is free to attend.

Forum topics include federal and state regulations, plant breeding and agronomy, and market opportunities.

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approved state plan that governs production and regulation. When the 2018 farm bill legalized hemp as an agricultural commodity, it also required states and tribal nations to submit plans to the U.S. Department of Agriculture if governments wanted to oversee their own commercial program.

In July 2020, USDA approved the state of Minnesota’s plan. Prior to 2021, Minnesota had been operating under a pilot program.

For more information on the 2021 Industrial Hemp Forum and to register, visit mda.state. mn.us/hempforum.

Background Industrial hemp and marijuana are both types of the same plant, Cannabis sativa. They differ by the concentration level of the psychoactive compound tetrahydrocannabinol within the plant. Hemp has less than 0.3% THC, and levels above that are considered marijuana.

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