From The Fields

Pulk fields under water, but rain welcomed elsewhere

Andy Pulk — Wannaska, Minn. June 18

It seems when it rains, it pours at the Pulk farm. The Land spoke with Andy Pulk on June 18 as he reported that some of his fields have received up to eight inches of rain since June 8. “We haven’t turned a wheel since.” Between a half-an-inch to four inches of rain fell last night. If all that Andy Pulk rain wasn’t enough, it’s been extremely windy. “All set up to spray, but we’ve had 25 mile per hour winds for a week,” Pulk said. He won’t be able to get in the field until next week — making this the latest he’s ever started spraying season.

With all the moisture, Pulk is now coming to the realization he simply won’t be able to get all the crops planted. “Seventy percent of last year’s corn stalks will be prevent plant,” Pulk said. He knows he isn’t the only one dealing with many fields not able to be planted. “I would bet 10 percent of Roseau County will be prevent plant.”

Before all the rain fell, the crops were looking good. Pulk now estimates that between 100 to 150 acres of his crops are now under water. Those fields are milling oats and rye grass. “They are going to take it the most. Corn and soybeans are looking pretty good.”

Pulk is taking a break from all the water at the farm and heading to Voyageurs National Park next week with the family to enjoy some lake time. He’s dealt with adversities before and knows that dwelling on it doesn’t do any good. “Only worry about what you can control on a daily basis,” Pulk said. Right now, catching the big one and creating lasting vacation memories is Pulk’s focus.  FROM T   FIELDS H E Compiled by KRISTIN KVENO – The Land Staff Writer

Colby Deters — Sauk Centre, Minn. June 22

“We got a nice steady rain.” The Land spoke with Colby Deters on June 22 as he was thrilled with the gentle rain which fell at the farm on June 18 and June 20. The rain total was one and a half inches in those two days. Before the moisture fell, things were getting mighty dry in Deters’ fields. Now the crops are looking good and that’s great news for Deters. “The corn has reached full canopy,” Deters said. Colby Deters

More good news: the new seeding alfalfa that he was previously concerned about due to dry conditions now looks good.

The cows are enjoying the cooler temperatures that came after the rain. “The cows hung in there through the heat,” Deters said.

Deters will continue to work on keeping the flies and manure under control. The second crop hay along with the first crop of the new seeding alfalfa hay will be ready for harvest next week.

With cooler temperatures this week, Deters is going to relish the sight of his crops currently flourishing and enjoy a small respite from the heat as the warm temperatures will be back starting next weekend.  Todd Wentzel — Murdock, Minn. June 18

The much-needed moisture has arrived at the Wentzel farm. The Land spoke with Todd Wentzel on June 18 as he reported that over two inches of rain has fallen in the past week with more forecasted this afternoon.

The soybeans are starting to Todd Wentzel close up the narrow rows. “They’re coming along really nice.” The beans are in the two to three trifoliate growth stage now. Wentzel was able to finish spraying soybeans on June 13, right before the winds picked up. “All this week has been horrible for wind,” he said.

Wentzel is pleasantly surprised how much the black beans have grown — especially after the rain. “They’re starting to take off.”

The dry weather up until a week ago coupled with the wind has been hard on some of the corn fields. Though Wentzel believes that the corn stands are good.

When not out scouting fields, Wentzel is cleaning around the sheds and the machinery, hauling corn to the ethanol plant, and more importantly spending some precious time with the grandkids.

Overall, Wentzel feels that most of the crops in the area are in the good category. It seems to all come down to when the crop was planted, as those that were planted with adequate moisture are doing better than others. “We still have a chance for a good crop.”

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Dairy margins flat for the first half of June

MIELKE, from pg. 14

Retail cheese demand in May, however, was “exceptionally strong,” according to HighGround Dairy’s Lucas Fuess in the June 22 Dairy Radio Now broadcast. Sales were at double-digit growth vs. the prior year on a year-to-date basis, and “IRI data confirmed dairy aisle sales were up 20.7 percent year-over-year, outpacing total store dollar growth of 12.4 percent for the week ending May 24. Cheese sales were up 18.2 percent on a volume basis and 26.6 percent on a dollar basis,” according to HighGround Dairy.

“April butter disappearance held slightly higher vs. prior year levels for the second consecutive month as extremely strong retail demand balanced out a foodservice demand collapse,” according to HighGround Dairy, and “was the strongest total April butter disappearance since 2014. But total disappearance remained below a year ago.”

May demand has been the strongest, up 33 percent year-to-date, says HighGround Dairy, “with a 50 percent jump reported in the latest week’s data. Frozen pizza sales were up 19.6 percent by volume and 21.9 percent on a dollar basis from prior year at the end of May.” HighGround Dairy adds, “There are notable gains on ice cream sales, up 13.4 percent that week.”

April nonfat dry milk demand remained below a year ago for the fourth consecutive month, as lower domestic demand negated strong exports and saw the lowest April disappearance since 2011, according to HighGround Dairy.

Dry whey declined slightly vs. the prior year after a slight March increase, and was pulled lower by weak domestic demand — even as exports climbed to the highest monthly volume since August 2018, according to HighGround Dairy, and saw the lowest total disappearance for the month of April since

ST. PAUL — Minnesota dairy farms cleared COVID-19 hurdles better than peers in other states — the absence of any known milk dumping perhaps being the clearest evidence — but tough challenges arose and persist.

Those are among the conclusions drawn by a trio of University of Minnesota Extension researchers who’ve been examining the finances of the state’s livestock producers as Covid-19 continues. In a newly issued report, they noted that, on average, 2019 had provided a much-needed turnaround for some Minnesota dairy farmers. Still, others experienced a sixth year of consecutive losses.

The loss of markets due to Covid-19 got 2020 off to a bad first quarter. There was a 40 percent drop in prices through late April. Most Minnesota milk goes into cheese production which helped provide a buffer against losses felt in other locations. 2015.

n

The USDA announced the July Federal order Class I base milk price at $16.56 per hundredweight, up $5.14 from June but 62 cents below July 2019. It equates to $1.42 per gallon, up from the Covid-19-inspired 98 cents a gallon a month ago. The 2020 Class I average stands at $15.94, down from $16.12 a year ago and compares to $14.60 in 2018.

Checking the bottom line, dairy farm margins were fairly flat over the first half of June with the exception of spot third quarter which continued to strengthen dramatically on surging milk and cheese prices, according to the latest Margin Watch from Chicago-based Commodity and Ingredient Hedging LLC.

“While this has been a very difficult spring for the industry,” the Margin Watch stated, “dairy remains a bright spot for forward margin opportunities relative to other sectors that will continue to face significant profitability struggles including the hog, crop and beef cattle industries.”

“Increased retail demand has met with renewed orders from both foodservice and food banks following the USDA’s Farmers to Families Food Box program which has been implemented much faster than previous government farm aid programs,” the Margin Watch says. “The buying is putting pressure on processors as they are now handling renewed orders from the foodservice sector with 43 states having relaxed dining restrictions to allow for more on-establishment dining options besides only takeout and delivery.”

“Feed prices have increased slightly from significantly depressed levels, although both the corn and soybean crops are off to a good start,” the Margin Watch stated.

“We’d be writing a very different report if we were on the east coast,” said Extension educator Megan Roberts. “The industry there depends heavily on tourism and hospitality, and it has yet to recover.”

Roberts and Extension colleagues economist Joleen Hadrich and senior economic impact analyst Brigid Tuck found the average contribution of a Minnesota dairy farm to the state’s economic activity is approximately $1.6 million. Minnesota has 2,456 dairy farms; on average, they have 200 head of cattle. Areas with strong concentrations of dairy farms particularly rely upon them through support of local businesses including feed mills, veterinarians and other suppliers. Stearns, Morrison and Winona counties lead in Minnesota’s dairy production.

Hadrich noted Minnesota’s dairy industry also is being helped by school districts that continue summer nutrition programs, keeping open a pipeline

n

In politics, the U.S. Dairy Export Council and National Milk Producers Federation sharply criticized Canada’s allocation of its tariff-rate quotas under the U.S./Mexico/Canada agreement.

USDEC and NMPF charged that the tariff rate quota allocations “undermine the intent of the USCMA’s dairy provisions by thwarting the ability of the U.S. dairy industry to make full use of the trade agreement’s market access opportunities.”

A joint press release stated USDEC and NMPF “have repeatedly warned that the full benefits of this carefully negotiated trade agreement will not materialize without careful monitoring and stringent enforcement of Canada’s USMCA commitments. The U.S. dairy industry urges the U.S. Trade Representative to immediately raise this issue with Canada and insist that Canada adheres faithfully not just to the letter of its commitments under USMCA, but to its spirit as well.”

Meanwhile, NMPF and the International Dairy Foods Association called on the committee charged with recommending dietary guidelines for Americans to “Consider the full range of studies on different types of fats and their role in a healthy diet when crafting its final report, noting that scientific understanding has evolved.”

The comments were made in letters to Dr. Barbara Schneeman, chairwoman of the committee, as well as the secretaries of Agriculture and of Health and Human Services and stated, “We would like to reiterate our strong view, as explained more fully in previous comments to the Dietary Guidelines for Americans Committee, that a body of science in recent years has found that dairy foods — regardless of fat level — appear to have either neutral or beneficial effects on chronic disease

For Minn. dairy farmers, Covid-19 presents another hurdle

See MIELKE, pg. 19

between farms and consumers. The falling price of grains for feeding cattle will also help, though crop farmers may feel pain, and lower fuel costs may reduce hauling expenses.

Conversely, while some state and federal legislation will help dairy farmers, the researchers noted not all losses are covered by Covid-19 relief.

Traditionally, June provides opportunities for nonfarmers to visit dairy operations for events such as “breakfast on the farm” and other dairy month celebrations. While Covid-19 has led to their cancellations, “there are still ways to support Minnesota dairy farmers,” Tuck noted. She and her colleagues pointed to Extension resources on dairy’s value as a nutrient as a good starting point.

This article was submitted by University of Minnesota Extension. v

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Grain Outlook Corn market awaits June stocks, acreage reports

Livestock Angles Supply and demand needs to move closer

Editor’s Note: Joe Lardy, Indiana went from no signs of The livestock markets have to close the gap between cash CHS Hedging research anadrought to the entire state continued under pressure and futures. However, it lyst, is sitting in this week for covered by abnormally dry during the past several would appear that this will Phyllis Nystrom, the regular conditions. Also seeing some weeks. The backup of aninot change until supply and “Grain Outlook” columnist. growing drought conditions in mals because of the Covid-19 demand move closer together. See LARDY, pg. 19 JOE LARDY CHS Hedging I n . St. Paul the central part of Iowa. Plus there still remains the extreme drought conditions in the southwestern plains. In roughly 10 days we will get the June quarterly stocks and planted acreage report. Both items will have a material impact on the corn market. Looking back at the price action over the past 10 years, corn prices were higher five times and lower five times on the day of the report. The average gain was 15.7 cents and the average decline was 22.15 cents. Here is an interesting trend: in nine of 10 years, whatever direction occurred on report day, the same price action was seen the following day. The only exception was 2018. Outlook: I expect the corn market to remain in its trading range. If we see China set in and buy some U.S. corn or ethanol, that could provide an upward adjustment to the price range. Aside from that, the market will cast all eyes to the June 30 reports. The following marketing analysis is for the week ending June 19. CORN — December corn futures have been very comfortable — staying within a tight trading range between $3.40 and $3.50 for the last 11 trading sessions. The prior two months saw December futures stuck between $3.30 and $3.40; so at least the range has shifted a little higher. Last week’s World Agriculture Supply and Demand Estimates report didn’t give us enough to move the market and we will have to wait another week until the June stocks report give us new direction. The latest ethanol data did show another increase in weekly production, marking the seventh increase after eight weeks of declines. The declines wiped out almost 500,000 barrels per day of production and the following rebound has clawed back just over 300,000 bpd. This week’s gain was only 4,000 bpd which really felt like a hiccup in the production recovery. This hiccup could make it difficult to hit the JOE TEALE Broker Great Plains Commodity Afton, Minn. virus closing down so many packing plants is one of the reasons for the glut of animals at the present time. The closure of some many restaurants and schools and businesses contributed to the lack of steady demand for over several months. As the quarantine begins to ease, this will help get the channel of distribution back and increase that demand for all meats. So as the saying goes, there is light at the end of the tunnel. However, this is not an overnight change and will take many more weeks to get things back to near normal in the meat industry. As for the cattle market, is has been a struggle for weeks and has backed up cattle due to the reduction of slaughter. This has created an increase in the weights of cattle which in turn has created an increase in beef production. Cutout values have declined precipitously in past several weeks as well as the finished price for the animals. The futures market, which has been discount for months, has finally begun Looking ahead, this situation we are experiencing now will be behind us at some point; and the cattle market will return to a more normal condition — which in turn will steady the market. Hogs have been on a downward trend since the month of May and continue to be plagued by heavy numbers of animals. As this liquidation continues, it is possible the current weakness will continue for several more weeks. However, at the current levels, pork is a bargain and the anticipation is that demand for pork will increase in future weeks. This should assist in establishing a low point in price discovery of live inventory. Product movement has been fairly good as of late and seems to be near a low at this juncture. It will be an increase in the demand for pork which will be the factor that changes the direction of the market in the weeks ahead. At the same time, as packing houses get back to full schedule, the prices for hogs will likely stabilize. U.S. Department of Agriculture’s ethaThe fact that the hog market is overnol target as the previous gains were averaging a pickup of 50,000 bpd. Ethanol margins popped up by 8 cents Cash Grain Markets sold, at a minimum at least, a recover rally could be expected in the weeks ahead. As the supply and demand for this week and are currently at 15 cents which should be enough to get increase production capacity at throttled back facilities and incent shuttered plants to think about coming back online. Badly-needed rain is in the forecast. The latest round of models from the Global Forecast System and Euro guidStewartville Edgerton Jackson Janesville Cannon Falls Sleepy Eye corn/change* $2.92 +.09 $2.93 .00 $2.95 -.01 $2.98 -.06 $2.93 -.01 $2.90 +.03 soybeans/change* $8.30 +.17 $8.10 +.07 $8.22 +.12 $8.14 +.02 $8.37 +.17 $8.23 +.17 pork stabilize (which is anticipated at some point), the hog market will find a bottom. v ance shows Midwest corn and soybean Average: $2.94 $8.23 production areas running 114-143 percent of normal precipitation the next Year Ago Average: $4.15 $8.24 two weeks. The rain is needed in many Grain prices are effective cash close on June 23. areas. The latest drought monitor had *Cash grain price change represents a two-week period. a couple items of note. The state of

Information in the above columns is the writer’s opinion. It is no way guaranteed and should not be interpreted as buy/sell advice. Futures trading always involves a certain degree of risk.

As temps rise, take a proactive approach to heat stress

Heat stress costs dairy and beef producers hundreds of millions each year. Proactive measures implemented before an extreme heat event can reduce immediate and long-term impacts of heat stress in ruminants. “Mitigating impacts of heat stress begins before an extreme heat event,” explains Jessica Fox, Veterinarian and Director of Veterinary Services and Biosecurity for Ralco. “The impacts producers’ see are only a small portion of what is going on inside a ruminant during an extreme heat event.”

Fox explains by the time ruminants show external signs of heat stress (going off feed, labored breathing, panting, increased water intake, decreased activity or sweating), heat stress has already begun to

LARDY, from pg. 18

SOYBEANS — November soybeans posted the highest close since March 11. Beans have also been hanging in a very tight range between $8.75 and $8.80 for the last 11 sessions. The bean market did not get a market moving shift from last week’s WASDE report, so bean too will have to wait for the stocks and acreage reports for direction.

The week’s export sales data was very robust on soybeans at nearly 51 million bushels. This was the biggest sales total of the year. A large number was expected as we saw a lot of flash sales to China reported by the USDA. The challenge will be sustaining this pace as we move into the last quarter of the marketing year. Pacific Northwest and Cost, Insurance and Freight basis values have been strengthening as the demand for export business

MIELKE, from pg. 16

risks.

On a brighter note, one of the results of the Covid19 pandemic was the “resetting consumer grocery habits,” says NMPF. “Early signs are that some of these changes, including increased milk purchases, are continuing as the country re-opens.” The media has reported milk sales are down while plant-beverages are rising. However, “While it has been a factually accurate statement in its own limited scope, it can be used toward fantastical ends, such as overhyping the rise of plant-based drinks or crafting a false narrative about dairy trends; when dairy, as a whole, is seeing its highest per-capita consumption levels in decades.” n

The latest Crop Progress report shows 95 percent of the U.S. corn crop was emerged as of the week ending June 14. This is up from 89 percent the prewreak havoc on vital internal systems. “Heat stress triggers a cascade of events that impact a bovine’s production ability, make it susceptible to disease and, in extreme circumstances, death,” Fox says.

During an extreme heat event, cattle need nearly double the amount of water they would typically consume. “Ensuring abundant access to cool, fresh water is the single, most important step beef and dairy producers can take,” Fox says.

Because heat events can tax automatic water capacity, Hill suggests putting out extra free-standing tanks prior to a heat event. “Not only does this ensure all have access to water, but it keeps the herd from bunching up around water tanks–exaggerating

Rumors abound for China soybean sales

the issue,” Hill says. grows; and lack of farmer movement has the need for beans growing. Lots of rumors that China is looking for beans for November/December delivery.

Brazil continues to export soybeans at a rapid pace with current lineups at 9.8 million metric tons compared to 7.4 mmt last year. Monthly shipments for June so far are at 6.3 mmt — on pace to break a new monthly record. The Chinese appetite for Brazilian beans has been huge.

Outlook: The soybean outlook mirrors corn. Will China show up as a regular buyer after their meeting with U.S. trade officials this week where they confirmed their commitment to meet Phase 1 ag purchases? Exports will push the trade within the current range until we arrive at the stocks and acreage

Milk consumption going up

reports at the end of the month. v vious week, 21 percent ahead of a year ago and 3 percent ahead of the five-year average. Seventy-one percent of the crop is rated good to excellent, up from 59 percent a year ago.

Soybeans are at 93 percent planted, up from 86 percent the previous week, 21 percent ahead of a year ago, and 5 percent ahead of the five-year average. Eighty-one percent are emerged, 32 percent ahead of a year ago, and 6 percent ahead of the fiveyear average.

Cotton is planting is at 89 percent, 4 percent ahead of a year ago, but 2 percent behind the fiveyear average. Forty-three percent is rated good to excellent, down from 49 percent at this time a year ago.

Lee Mielke is a syndicated columnist who resides in Everson, Wash. His weekly column is featured in newspapers across the country and he may be reached at lkmielke@juno.com. v

Prior to a heat event, producers should also test feedyard sprinkler systems to ensure they are functioning properly and emitting large enough droplets. If the droplets are too small, they can create added humidity, exasperating heat issues.

Providing shade is proven to help mitigate heat stress. Structures should be open and 8 to 14-feet tall to allow for proper ventilation and should provide between 20 and 40 square-feet-per-animal depending on animal size. If shade cannot be supplied, simply providing bedding can be of benefit. The ground can trap heat and is capable of becoming up to 20 degrees hotter than the ambient air.

Heat also impacts feed quality. “Feed rations heat up in the sun and begin to breakdown due to mold, yeast and bacteria growth. Not only are cattle appetites impacted during a heat event, but the feed itself is less appetizing,” Hill explains.

Many of the natural defense mechanisms triggered when heat stress occurs, cause damage to a bovine’s intestinal tract, potentially leading to leaky gut syndrome. Caused by multiple factors, leaky gut describes a breakdown of the intestinal wall. This leads to bacteria, pathogens and other intestinal contents leaking through the intestine into the bloodstream. “The majority of the bovine animal’s immune system is found in their gut. When gut health is jeopardized, the immune system takes a major hit,” Fox explains.

In an attempt to cool down during an extreme heat event, blood is pulled away from the intestine to the bovine’s outer extremities, further weakening the protective lining of the gut wall, leading to leaky gut.

Another way heat stress negatively impacts ruminants› immune system and causes leaky gut is through the production of free radicals. “Heat stress causes cattle to create an excessive number of free radicals, leading to oxidative stress,” Fox says.

Free radicals, Fox explains, are a normal result of bovine’s metabolism and utilized by the immune system to fight pathogens. However, when too many are produced, they damage the intestinal track and cause an overreaction of the immune system. This creates inflammation, impacting overall performance, meat and milk quality.

Antioxidants neutralize free radicals, preventing them from causing further damage to the animal.

Heat stress has been shown to significantly raise blood insulin levels. Excess insulin, drops blood glucose levels, reducing an animal’s ability to conduct typical production activities. Simply put, excessive insulin is one reason heat stress reduces milk production in a dairy cow and weight gain in a beef cow.

This article was submitted by Ralco. Ralco is a global supplier of natural solutions to maximize nutrient conversion in both plants and animals. v