Mielke Market Weekly

Interest was high at Seehusen hemp field day

By DICK HAGEN three seeding rates. The early The Land Staff Writer Emeritus May plantings have already

OLIVIA, Minn. — Yes, as been cut and he is seeing interyou might expect, lots of people, esting results. lots of talkers, great noon lunch “The two Canadian seed variand interest expectations runeties which we made available to ning high at the Aug. 6 field day our first-year growers were Joey of Prairie Producers. And why and Canda, which we purchased not? These are the enterprising, through Cereseed (a certified enthusiastic and vigorous group hemp seed supplier and distriblaunching the first hemp faciliutor located in the Twin Cities). ty in Renville County. These are dual grade varieties,

Tim Seehusen, along with both for hemp fiber and hurd. brother Paul Seehusen, are coPaul Seehusen and Joe Dollerschell They did very well — even founders of this newest agriculexceeding the height we expecttural endeavor for area farmers. With the 2020 hemp ed. And since producers are paid on a dollar-per-ton harvest season about to begin, Tim shared a few pricing schedule, the bigger the total harvest per acre thoughts on this ‘home opener’ for their new industry. the bigger the payment. North Dakota State University “We’re happy with the turnout — especially the cross section of farmers, both potential growers for data show these two varieties 54 to 63 inches tall. Here this year we are pushing 84 inches tall! the 2021 season and some current hemp growers,” “We planted May 4; again on May 18/22; also the said Seehusen. “We also have industry reps from the first week of June. Early May plantings got off to a Minnesota Department of Agriculture, the hemp slow start … cold and dreary weather. The mid-May business world, some media folks, our local banker planting came up quickly, reaching growth of the and some local business friends. early-May planting. Now here in early August all “We had a father/son team from Sleepy Eye growing hemp for grain this year. They are looking for an outlet for their fiber after harvesting the grain. In the past they’ve just plowed it under. But rest assured, we can provide an added revenue source here at our new hemp facility.” three are about equal in plant height. With early planting, weeds quickly became a factor which may have challenged some germination. Our June plantings are shorter … perhaps because after June 21, day length starts decreasing. And apparently, these later-planted hemps start thinking of putting on seed and getting ready for harvest. Soil temps of 55

All hemp fields of the first-year growers with degrees or warmer are preferred before planting. Prairie Producers cut their hemp the first week of Hemps seeds germinate in 3 to 5 days, so with warmAugust with conventional sickle cutter bars. Hemp er conditions they’re soon off to the races.” plants were ranging from 6 to 7 feet tall supported by 12 to 15-inch stalks. “So these fibers are lying in the fields right now drying,” explained Seehusen. “Next step is to turn it to assist with field drying. Then they bale the fiber crop when it at 12 to 14 percent moisture. We bale into square bales (2-foot squares and Researchers and marketers never talk a ‘perfect season;’ but Seehusen did venture, “Yes a good year. But a few rains were excessive. However, we’re welltiled so we didn’t have standing water. So it’s been a good first year for us rookies.” about 4 feet long) which will be hauled into our stor “I can’t share names yet at this stage, but procesage warehouse here at our office facility. This will sors are already calling us asking about our products. hold upwards of 350 bales — plus we have access to And that’s key to a successful first year effort.” other covered shed for additional bale storage. “I commend the Seehusens for their ambition in

“Our processing facility is being developed right developing a hemp industry right here in this innonow for our particular setup. John Lupien, co-foundvative agricultural area of Minnesota,” said Harold er of HempVentures (and a speaker today) is talking Stanislawski. (He is the project development director about the processing equipment being put together at the Agricultural Utilization Research Institute for us. Called the ‘decortication process,’ this is the (AURI). “This crop, centuries old around the world, is removal of the outer layer of the hemp stalk — separapidly gaining new attention as scientists, researchrating the outer blast fiber from the inner woody core ers, and creative thinker keep tinkering with new called hurd. ideas, new thoughts and new uses for one of the old

“Next year we’ll be setting up a larger building at est plants on the earth’s surface.” the west end of our property here along (U.S. Now let’s hear from Paul Kubista, President of Highway) 212. The intent is to minimize highway Cereseed. (Even his business card is printed on ecotraffic of trucks hauling the baled product into our friendly hemp stock.) He explains, “We wanted a processing facility.” seed firm specific in hemp seed verities. My intent is Seehusen said Prarie Producers has test plots with five hemp varieties with three seeding dates and to (connect) with hemp seed suppliers and producers already in this industry. So far he’s talked with European, Canadian and U.S. hemp developers to get

the best possible seed for this newly emerging new crop in America.”

At this stage, Cereseed is using only Canadian hemp seed sources; but already has an Indiana source viable for 2021 seed. Kubista also noted organic options are coming to fruition. “There is a huge push from companies like Patagonia (which markets a variety of hemp clothing for men and women) now also wanting organic hemp. Currently sourcing from other countries, they see U.S. farm production as a valuable new hemp source.” Kubista, 29 years in Pioneer Seeds marketing, is excited about his new future because he’s big on hemp’s future in American agriculture. “The keys for the explosion of this new crop industry are deregulations that open up the animal feed market and human consumption. Every day you are reading about new consumer Paul Kubista products with hemp ingredients.”

He points out much hemp seed currently is internet marketed with prices at $10 to $12 a pound. “In the CBD world it’s sold by the seed … typically 50 cents to $1 a seed. In my world, we’re looking at wholesale costs to the farmer in the $5 to $7 per pound range. With new U.S. production, that cost should come down.”

See FIELD DAY, pg. 19

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U.S. milk production sees increase over 2019

This column was written for the marcows. Output per cow was unchanged keting week ending Aug. 21. from a year ago. Michigan was up 2.7 U.S. milk production continued its rebound from May’s short-lived dip as dairy producers chased the higher prices. Preliminary data shows July output at 18.65 billion pounds, up a bearish 1.5 percent from July 2019. Output in the top 24 producing states hit 17.8 billion pounds, also up 1.5 percent from 2019. Revisions raised the original June MIELKE MARKET WEEKLY percent on a 45-pound gain per cow and 3,000 more cows milked. Minnesota was up 1.5 percent, thanks to a 50-pound gain per cow offsetting 5,000 fewer cows. New Mexico was down 5.3 percent on a 115- pound drop per cow while cow numbers were unchanged. New York was up 1.8 percent, thanks to a 40-pound gain per cow, but had 1,000 50-state total by 59 million pounds — By Lee Mielke fewer cows. Oregon was down 1.8 percent now put at 18.37 billion pounds (up 0.8 due to a 15-pound drop per cow and percent from June 2019) instead of the originally reported 0.5 percent MARKETING 1,000 fewer cows. Pennsylvania was up 4 percent on an 80-pound gain increase. per cow, though cow numbers were

July cow numbers totaled 9.35 million head in the down 3,000 head from a year ago. 50 states, up 2,000 from June and 37,000 above a South Dakota took honors for the biggest increase, year ago. Output per cow averaged 1,994 pounds, up up 11.5 percent, thanks to 13,000 more cows and 20 21 pounds from a year ago or 1.1 percent. pounds more per cow. Texas was up 4.4 percent on California’s July output was up 0.5 percent from a year ago, thanks to a 15-pound gain per cow offsetting 4,000 fewer cows milked. Revisions added 34 million pounds to the Golden State’s June total, up 2.1 percent from June 2019, instead of the originally reported 1 percent increase. 25,000 more cows, though output per cow was unchanged. Vermont was off 5.3 percent on a 40-pound drop per cow and 4,000 fewer cows. Washington State was down 1.5 percent on a 15-pound drop per cow and 2,000 fewer cows milked.

Wisconsin was up 0.6 percent on a 30-pound gain n per cow, but cow numbers were down 11,000. Dairy cow culling crept higher in July, according Revisions added 12 million pounds to the Badger to the latest Livestock Slaughter report. An estimatState’s June total, down 0.9 percent from June 2019, ed 233,700 head were sent to slaughter under federinstead of the originally reported 1.4 percent al inspection, up 6,700 head or almost 3 percent decline. from June and 23,100 or almost 9 percent below

Idaho was up 2.3 percent in July on 14,000 more July 2019. A total of 1.83 million head were culled in the first seven months of 2020, down 68,300 head

Sugar beets rarely succumb to hail

SUGAR BEETS, from pg. 11

Sugar beet geneticists haven’t yet developed genetic resistance to this costly disease. Geselius said, “Not yet immunity, but genetic resistance is available at different levels. Our varieties today have a good level of resistance. However, we’re seeing some new varieties in our testing with greatly enhanced resistance beyond what we have in our current seed availabilities.”

He doesn’t speculate on sugar cane acres being cultivated in the United States this year vs. sugar beet acres. “Sugar beets are always at about 1.1 million acres,” he said. “And I do know beet sugar has a slightly larger share of total U.S. sugar market … 55 percent vs. 45 percent for cane sugar.”

Geselius reminded that the United States is a net importer of sugars — coming mostly from Mexico. However, no beet sugar is exported.

Geselius spoke of the July 11 hail storm which flashed across portions of Kandiyohi, Renville and Sibley counties. “Our guys did a really good survey. We had between 3,500 and 4,000 acres receiving some damage. Most was light-to-moderate damage, but there’s about 1,000 acres with severe hail damage. However, good news too: Because of the way sugar beets grow, they almost never die from hail damage. It takes two to three weeks to grow new leaves; but then they’re back and off to the races.”

He didn’t estimate overall yield loss at this early date, but speculated five to six tons per acre on the severely hailed fields. Plus he noted growers with hail damage will use those fields during pre-pile campaign when the factory is ‘warming up’ for the huge processing season (November through midMarch). There could be some 40-ton beet fields this season. Last year SMBSC growers averaged right at 26 tons per acre. “We’ll have another root sample the end of July,” Geselius said. “That will determine startup date for harvest. Little root disease this season and that’s a big plus. Usually when beets get this big early in the season, they can outgrow the root diseases; however, circospora can be devastating if we let that get ahead of us.” v or 3.6 percent from 2019.

In the week ending Aug. 8, 53,000 dairy cows were sent to slaughter. This is up 1,100 head from the week before, but 4,800 head or 9.1 percent below that week a year ago.

n

Declines continued in the Global Dairy Trade auction where the Aug. 18 weighted average fell 1.7 percent following the 5.1 percent drop on Aug. 4. Sellers brought 69.1 million pounds of product to market, down from 72.1 million in the last event.

Losses were led by cheddar cheese, down 3.6 percent, after falling 5.3 percent on Aug. 4. Lactose was down 3.3 percent after jumping 5.7 percent; followed by anhydrous milkfat, down 2.9 percent after gaining 3 percent. Butter was down 2 percent following a 2.8 percent descent, and whole milk powder was down 2.2 percent following a 7.5 percent dip last time. Skim milk powder was up 1.1 percent after it fell 4.6 percent on Aug. 4.

StoneX Group equated the GDT 80 percent butterfat butter price to $1.4915 per pound U.S., down 3 cents from the last event. Chicago Mercantile Exchange butter closed Aug. 21 at $1.5150. GDT cheddar equated to $1.5614 per pound, down 5.7 cents after losing 10.6 cents in the last event, and compares to Aug. 21’s CME block cheddar at $1.65. GDT skim milk powder averaged $1.1831 per pound, up from $1.1714; and whole milk powder averaged $1.3317, down from $1.3623. CME Grade A nonfat dry milk closed Aug. 21 at 99.75 cents per pound.

n

Back on the home front, there was good news in June commercial dairy product disappearance. Cheese disappearance totaled 1.16 billion pounds. This is up 4.8 percent from May and 6 percent above June 2019 — though year-to-date disappearance is off 1.1 percent.

HighGround Dairy pointed out, “June marked the fourth-largest monthly total cheese disappearance of all time — a remarkable recovery vs. the sharply lower volume just two months prior in April at the peak of the pandemic.” Butter disappearance, at 176 million pounds, was down 2 percent from May but 17.3 percent above a year ago — the fourth consecutive month to top a year ago.

HighGround Dairy’s Lucas Fuess credited strong retail sales at the grocery store for the higher numbers in the Aug. 24 Dairy Radio Now broadcast. Nonfat dry milk and skim milk powder disappearance hit 267 million pounds, up 8.5 percent from May and 28.3 percent above a year ago. Total nonfat dry milk disappearance topped that of a year ago for the second consecutive month, according to HighGround Dairy, “reversing the trend earlier in the year of sluggish sales. Total disappearance

See MIELKE, pg. 15

Football season usually spikes cheese consumption

MIELKE, from pg. 14 but upper Midwestern managers reported healthy 79 cars sold. climbed to a new all-time record high in the month, surpassing the prior record set in June 2012.” n CME cash cheese weakened in the third week of August. The cheddar blocks saw an Aug. 21 finish at $1.65 per pound, down 17 cents on the week and 23 cents below a year ago. The barrels fell to $1.3175 discounts this week. Cheese demand reports are mostly steady. Food service demand is lackluster, as schools and restaurants face continuing Covid-19- related hurdles and retail demand remains steadfast. Cheese market tones remain unsettled after a notably bearish first half of August. A current concern among contacts is the growing block-to-barrel price spread on the CME. Bulk butter is more available, says Dairy Market News, but butter makers report that cream is less available — both locally and from western sources. Food service butter demand has been stunted as restaurants and school districts face Covid setbacks. Retail demand has eased the lack of demand elsewhere, but grocers are also easing back week to week. With fourth quarter around the corner, butter on Aug. 19, but closed two days later at $1.33 — The western cheese market is plagued with a lot makers expect a strong fall demand season — paralso down 17 cents, 33.5 cents below a year ago, and of uncertainties, according to Dairy Market News. ticularly in the retail sector. 32 cents below the blocks. Nine cars of block were traded on the week at the CME and 28 of barrel. Cheese consumption will be impacted by what the National Football League does. Lots of cheese gets into consumer mouths via pizza and nachos while watching the game. That and the huge number of students not returning to classrooms are illustrative of Covid’s continuing after-effects plaguing the dairy industry. FC Stone predicts dairy prices to be 5-10 percent lower because of the school situation. Prices are dropping, but several market participants have not changed their buying schedules as they hope for more declines. Cheese sales remain active for retail — but not so much for the food service industry. With the combination of declining prices and the devaluation of the U.S. dollar compared to the euro, the U.S. cheese market has a competitive advantage in the international market. So some believe there is a possibility of increased export demand. Western butter production is steady and cream is available; but demand remains mixed. Retail print butter orders, while lighter than a few months ago, are still above year-over-year averages. Manufacturers suggest a slowdown during the dog days of August is typical. Buyer interest should regain momentum once summer vacations subside, families settle into school year routines, and the industry begins to plan for the fall baking season. Bulk butter demand is weak.

Cheese producers continue to report fairly active n n production rates in the Midwest, according to Dairy Market News. Spot milk availability and prices vary. The further east in the region, the higher the price, Butter shot up to $1.54 per pound on Aug. 17 but ended at $1.5150. This is up 3 cents on the week and 71.25 cents below a year ago, with a whopping The powder climbed to $1.0150 per pound on Aug. 19. It closed on Aug. 21 at 99.75 cents, up 3.25 cents See MIELKE, pg. 16 CFAP deadline extended to Sept. 11, final payments released

U.S. Secretary of Agriculture Sonny Perdue recently announced additional commodities are covered by the Coronavirus Food Assistance Program (CFAP) in response to public comments and data. Additionally, the U.S. Department of Agriculture is extending the deadline to apply for the program to Sept. 11, and producers with approved applications will receive their final payment.

USDA collected comments and supporting data for consideration of additional commodities through June 22. The following additional commodities are now eligible for CFAP:

Specialty crops — aloe leaves, bananas, batatas, bok choy, carambola (star fruit), cherimoya, chervil (french parsley), citron, curry leaves, daikon, dates, dill, donqua (winter melon), dragon fruit (red pitaya), endive, escarole, filberts, frisee, horseradish, kohlrabi, kumquats, leeks, mamey sapote, maple sap (for maple syrup), mesculin mix, microgreens, nectarines, parsley, persimmons, plantains, pomegranates, pummelos, pumpkins, rutabagas, shallots, tangelos, turnips/celeriac, turmeric, upland/winter cress, water cress, yautia/malanga and yuca/cassava.

Non-specialty crops and livestock — liquid eggs, frozen eggs and all sheep.

Aquaculture — catfish, crawfish, largemouth bass and carp sold live as foodfish, hybrid striped bass, red drum, salmon, sturgeon, tilapia, trout, ornamental/ tropical fish and recreational sportfish.

Nursery crops and cut flowers. CFAP webinar offered

The deadline to apply for the Coronavirus Food Assistance Program (CFAP) is Sept. 11.

A question-and-answer webinar will take place on Aug. 31 from 12 noon to 1:15 p.m.

Presenters from University of Minnesota Extension Ag Business Management, Farmers’ Legal Action Group, and Sustainable Farming Association will walk interested parties through what eligibility looks like, the forms and steps to apply for CFAP through the Farm Service Agency, and realworld experience of applying from a farmer who has done it.

The webinar is free and will be conducted via Zoom. Register here to receive the Zoom link: https://forms.gle/7na2y9KnG5AZ952n6

Seven commodities — onions (green), pistachios, peppermint, spearmint, walnuts and watermelons — are now eligible for Coronavirus Aid, Relief, and Economic Stability (CARES) Act funding for sales losses.

The USDA is also correcting payment rates for onions (green), pistachios, peppermint, spearmint, walnuts and watermelons.

Additional details can be found at www.farmers. gov/cfap.

Producers with approved applications initially received 80 percent of their payments. The Farm Service Agency will automatically issue the remaining 20 percent of the calculated payment to eligible producers. Going forward, producers who apply for CFAP will receive 100 percent of their total payment, not to exceed the payment limit, when their applications are approved.

Producers — especially those who have not worked with FSA previously — are recommended to call (877) 508-8364 to begin the application process.

More information can be found at farmers.gov/coronavirus.

This article was submitted by the U.S. Department of Agriculture. v

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