Agriculture
The Borderland Press
Positive Outlook
with Mike Smith from S&S Grain Elevator, Walhalla By Hilary Nowatzki shortage along with its cost being up 30%,” Smith said. Although Smith had already mentioned crop prices being up, which is usually a good thing for farmers, he goes on to explain, “Last year many farmers sold on their crops early in the season, then the drought hit, and they were unable to produce as much as they sold, which is causing hesitation to sell soon this year as well even though the prices are up. There’s just too much unpredictability.”
Mike Smith has been in the farming game since the crops were taller than he was. Brought up on a farm, the Smith family's livelihood has been literally and metaphorically entwined in the roots of northeastern N.D. Seven years ago where an old ethanol facility was about to be demolished, Smith’s father saw opportunity. The ethanol facility was soon renovated and repurposed as S&S Grain Elevator of Walhalla, and Mike and his brother were brought on as the sales representatives for the company. Although S&S Grain Elevator was quite the accomplishment, Mike Smith was a farmer before he was a sales rep. Smith’s family farm rotates between wheat, corn, sunflower, and soybean crops. His prospective outlook for this spring is positive. “We did get some rain in October and a little moisture from the snow, so in terms of dryness, our soil is looking much better than it was at this point last spring,” Smith said. “Seed supply is good, although the cost is up 10% from last year, but in fertilizer we are seeing a supply chain shortage, and cost is up 30% from last spring. Crop insurance is also up twice the amount it was.”
E15 Legislation Discussed Year-round E15 legislation was a top policy priority for the National Corn Growers Association (NCGA) at the Commodity Classic in New Orleans earlier this month. NCGA president Chris Edgington, a farmer from Iowa, says his group supports a bill recently introduced by Iowa Senators Joni Ernst and Chuck Grassley that would make the E15 fuel blend available year-round. The Homefront Energy Independence Act would institute a permanent ban on Russian oil imports, replacing it with increased biofuels production. “I saw this morning on a Twitter feed that there is close to a 50-cent spread between E10 and E15 right now in some places. That is a big benefit to the consumer. There’s 98 percent of the vehicles on the road today that can run E15. Everybody could save that 50 cents or 25 cents, it just depends on their location,” Edgington said. Edgington says the recent all-time record spike in gas prices around the country has led many people to switch over to E15. “It’s a great opportunity for the consumer to save money there because we all know inflation is here. Last month it was like six or seven percent again and so other things are going up. If we can save a little by using more ethanol, we’re all for it, and you know that we love our product anyway,” Edgington said. Edgington says marketing of E15 varies by location. Some fueling stations list the blend directly as E15, while others label it as Unleaded 88.
With farming, there is always risk. “The markets are at record prices, but with the volatility and high input costs, it can drop quickly turning what would’ve been a profitable or average year into a below average year.” Smith continued, “Many farmers will sell their crop before it has been grown, and you would think more would with record prices, but with the drought from last year and the uncertainty of this year, they aren’t sure what to do.” Throughout these last few weeks, so many changes have happened rapidly in the world. It seems as though at the beginning of February, the only worry on farmers’ radars was primarily avoiding a drought like last year. Now, halfway through March - war has erupted on the other side of the world, and the impact has been felt like a reverberation - soaring inflation, unpredictable input prices, crop prices, seed prices, insurance, ect. Luckily on the S&S Walhalla Grain Elevator side of business, Smith is doing well with their seed stock and is fully prepared to deliver once planting season is upon them. “We’ve had no issues with seed supply so we should be all good there, but we are facing a fertilizer supply
Food Prices on the Rise
Food prices are continuing to rise. The most recent Consumer Price Index in February shows food prices rose 7.9 percent during the month. Scott Brown is an associate professor of agricultural and applied economics at the University of Missouri Extension Service. He says several factors are pushing prices higher. ”There’s been a combination of factors that's been driving us to higher CPI for food. I will say higher prices for things like cattle, hogs, milk products - we can look at things like fats and oils as well - so, there are some farm level increases in prices, but we have to remind ourselves that things like energy costs, labor costs, have all been going up,” Brown said. “That adds costs from the farm gate to the retail that, in some cases, are more important than what's been happening at the farm level in terms of where we sit with the CPI for food.” The war in Ukraine is also pressuring food prices. “As energy prices have moved higher as crude oil prices, at least for some time, have been over $100 a barrel. It has added costs from the farm level to the retail level. We have to get those products from the farm level, from the processor, all the way to the ultimate consumer, and I think that's added a lot of inflation in terms of what we're seeing on food prices,” Brown said. “Beyond that, we can talk about higher wheat prices, so that's directly in things like what the loaf of bread costs. but longer-term could continue to ramp up higher feed costs for livestock producers and make meat prices higher. On top of that, Ukraine is important in terms of being a big producer of global sunflower oil. When you look at the fats and oils component of the CPI for food in February, it was 11.7 percent above year-ago levels. That certainly has had some impact.”
Regardless of the chaos surrounding agriculture at this time, Smith is doing his best to keep S&S at business as usual; maybe it’s the farmer in him that emulates a calmness in uncertainty. “Here on the elevator side of things, we sell and ship out seed and fertilizer at the beginning of spring to nearby farmers,” said Smith, and other than inflation and working out supply chain interruptions in fertilizer needs, he doesn’t think that there will be any other interruptions in business. “Throughout the season we also have farmers store their grain here where we sell to third parties,” stated Smith. He continues to describe S&S as a service industry catered to local farmers, “Once they bring us their harvest, we hold it, market it, and try to find the best possible selling price for the farmer.” It’s a win-win situation for farmers near the S&S Walhalla Grain Elevator, a place they can turn to for not only their spring season preparation but for their entire harvest. They can be assured that Smith is stocked and ready to go when they are. To top it off, when farmers turn to Smith for any of their needs, they know that he is coming from the standpoint of a farmer since he was raised as one and still is and not from that of only a sales representative or businessman.
Friday, March 25, 2022 - Page - 3
North Dakota Soybean Council Welcomes New Research Programs Coordinator As research programs coordinator, Miheguli will work with NDSC on the selection and oversight of funded research projects that will be most impactful to North Dakota soybean farmers. In addition to managing research projects, Miheguli will serve as the staff liaison between the North Central Soybean Research Program (NCSRP) and have a high level of interaction with NDSU and NDSU Extension.
The North Dakota Soybean Council (NDSC) announced the addition of Miki Miheguli as research programs coordinator to their staff team effective March 1, 2022. “The NDSC is very pleased to have Miki join our team as research programs coordinator,” says NDSC Executive Director Stephanie Sinner. “This position serves a critical role supporting the North Dakota soybean producers and the industry. Miki brings to the position true passion and enthusiasm for research and working for North Dakota soybean producers. Her work experience with numerous partners in research and extension programs for northern crops will contribute to the success of NDSC’s checkoff-funded research, bringing greater value to North Dakota soybean farmers. We are delighted to have Miki on our team!” Miheguli is a graduate of University of Saskatchewan where she received a Master of Science Degree in Soil Science. She is a professional agrologist and certified crop advisor with much experience in crop production practices, research, project management, and the agriculture industry. She’s worked in agronomy, research, and extension for more than seven years. Her previous positions include instructor at North Dakota State University (NDSU) and research extension specialist with Saskatchewan Canola Development Commission (SaskCanola).
“I am thrilled to have an opportunity to work with North Dakota soybean producers, soybean researchers, and research organizations on projects that can bring value to North Dakota soybean growers and the soybean industry,” says Miheguli. “I look forward to contributing to the success of North Dakota soybean farmers.” Dr. Jay Goos, professor emeritus of soil science at NDSU, had the opportunity to previously work with Miheguli. "I was very happy when I learned that the North Dakota Soybean Council had hired Miki to be their research programs coordinator," says Dr. Goos. "We worked together on student laboratories for a class she was teaching at NDSU, and I was impressed by her attention to detail and positive attitude. I think she'll be a great addition to the staff of the Council." Miheguli replaces Kendall Nichols, who, after more than 40 years serving agriculture, is retiring at the end of March. His tenure included nearly a decade with the North Dakota Soybean Council. North Dakota soybean farmers across the state are represented on the North Dakota Soybean Council Board, which oversees a promotion, research, and marketing program funded by soybean checkoff dollars. The Council’s mission is to effectively invest and leverage North Dakota soy checkoff resources to maximize the benefits of North Dakota soy. The Council is organized by North Dakota state law.
