PAGE 8
www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — AUGUST 20/AUGUST 27, 2021
Farmfest generates healthy discussion on key policy issues listed 60 percent of the U.S. soybean crop many farm operations at the brink of financial Over the past few years, Farmfest has as good-to-excellent, with Minnesota disaster by the end of 2019. Fortunately, a combinabeen a major event for discussing key again well below that average at only 34 tion of one-time government aid programs, together issues affecting farm families, the ag percent in the higher categories. The only with the strongest grain prices in several years, industry and rural communities in major crop producing states with lower allowed farmers to rebound financially in 2020, Minnesota and the Midwest. Many of good-to-excellent ratings for corn and which is a trend that has continued into 2021. these same issues will likely frame the soybeans than Minnesota were North discussions on agriculture and rural poliCarbon sequestration and carbon credits — Carbon and South Dakota. cy issues in Washington, DC in the next sequestration, carbon credits, and potential legislafew years. Throughout the summer of 2021, tion to address climate change garnered considerable FARM PROGRAMS drought conditions have intensified in discussion during the Farmfest forums by elected Farmfest is held in early August and By Kent Thiesse most of the Northern Plains and officials, ag leaders, and experts in the carbon indusbrings together elected officials and Northwest Corn Belt states. try. One quote of note was, “the carbon market is like appointed officials together with Livestock producers in those areas the wild, wild west”, meaning there is no clear-cut national and state ag leaders to anaare being especially hard-hit by the path as to where the United States or the ag induslyze these key issues and offer perextended drought conditions with try is headed related to the carbon market. spectives on solutions and future exhausted pastures and depleted feed supplies. legislation. Following are some of the main issues There was considerable discussion regarding Many beef cattle producers are being forced to that were discussed during the 2021 Farmfest opportunities for crop and livestock producers to reduce their herd sizes due to limited pasture and forums: participate and benefit from carbon credits. hay resources. However, it was very unclear how those carbon credImpacts of the 2021 drought and available its will be valued or traded. It was resources — Nearly all of the forums also very uncertain as to what pracat Farmfest centered around the tices will qualify for carbon credits, impact of the drought on crop and and whether producers who have livestock producers. Based on the already adopted carbon-friendly “U.S. Drought Monitor” in early practices will be eligible for any comAugust, over 75 percent of Minnesota pensation. The bottom line from the was categorized to be in either the Farmfest forums was that it is probextreme drought (D3) or severe ably better to walk before you run drought (D2) category, with only the when it comes to make major changSoutheast quarter of the state being es in a farming operation strictly tarlargely spared from these conditions. geted toward gaining value from the Nearly all of North and South emerging carbon market. Dakota were at some level of drought, with over two-thirds of U.S. energy policy — There was North Dakota and a large area of Photo by Paul Malchow considerable discussion at Farmfest north central South Dakota in either MinnStar Bank’s Kent Thiesse (left, holding microphone) introduced one of the popular Farmfest as to how climate change legislative extreme drought (D3) or exceptional forums. proposals, such as the “Green New drought (D4). Areas in extreme or Deal” or further implementation of USDA has announced the potential for emergency the California Fuel Standards might impact agriculexceptional drought are likely seeing significant haying and grazing on land enrolled in the crop loss and extremely limited forage production, ture industry and future development of biofuels. On Conservation Reserve Program (CRP) in areas of as well as longer term effects on lakes, rivers, one hand, farm organizations and commodity groups Minnesota which are the most severe drought. streams and ground water supplies. point to the climate benefits of expanding the use of Livestock producers should check with their local biofuels by moving toward E-15 blends of ethanol The weekly U.S. Department of Agriculture Crop and higher levels of biodiesel. On the other hand, Report released on Aug. 2 listed the condition rating Farm Service Agency office regarding eligibility, of the corn in the United States at 64 percent good- enrollment details, and requirements for emergency many special interest groups are calling for reduchaying and grazing of CRP acres. tions or elimination of the federal renewable fuel to-excellent. However, the higher-level crop rating USDA also has other programs available to assist standards (RFS) and other measures — which would in Minnesota was only at 36 percent, which is the hurt the renewable fuels industry — while calling lowest in many years. The early August crop report livestock producers. Eligibility requirements and details on all USDA drought assistance programs for additional resources into expanding electric poware available at local FSA offices. Details and ered vehicles, as well as wind and solar energy. updates on the USDA drought programs can also be Many states in the Upper Midwest, including found at https://www.fsa.usda.gov/programs-andMinnesota, have a well-established corn-based ethaservices/disaster-assistance-program/index. nol industry, which utilizes over 35 percent of the Grain markets and rising input costs — One of the corn produced each year in the United States. In major discussion items at Farmfest was the trends addition to the direct benefits to farmers, renewable in the grain and livestock markets in the coming energy plants have become cornerstones in rural months. Crop production expenses and land rental communities by providing jobs, adding to the local rates have risen sharply in the past six months, tax base, and enhancing the overall economic vitaliwhich has some producers and analysts concerned ty of the communities. about profit margins as we look ahead to 2022. Prior Livestock-related issues — There were many issues to 2020, profit margins in crop and livestock producSee THIESSE, pg. 10 tion had been quite tight in recent years, which put
MARKETING
