Farm Programs

Over the past few years, Farmfest has listed 60 percent of the U.S. soybean crop many farm operations at the brink of financial been a major event for discussing key as good-to-excellent, with Minnesota disaster by the end of 2019. Fortunately, a combinaissues affecting farm families, the ag again well below that average at only 34 tion of one-time government aid programs, together industry and rural communities in percent in the higher categories. The only with the strongest grain prices in several years, Minnesota and the Midwest. Many of major crop producing states with lower allowed farmers to rebound financially in 2020, these same issues will likely frame the good-to-excellent ratings for corn and which is a trend that has continued into 2021. discussions on agriculture and rural policy issues in Washington, DC in the next few years. Farmfest is held in early August and FARM PROGRAMS soybeans than Minnesota were North and South Dakota. Throughout the summer of 2021, drought conditions have intensified in Carbon sequestration and carbon credits — Carbon sequestration, carbon credits, and potential legislation to address climate change garnered considerable discussion during the Farmfest forums by elected brings together elected officials and By Kent Thiesse most of the Northern Plains and officials, ag leaders, and experts in the carbon indusappointed officials together with Northwest Corn Belt states. try. One quote of note was, “the carbon market is like national and state ag leaders to analyze these key issues and offer per- MARKETING Livestock producers in those areas are being especially hard-hit by the the wild, wild west”, meaning there is no clear-cut path as to where the United States or the ag indusspectives on solutions and future extended drought conditions with try is headed related to the carbon market. legislation. Following are some of the main issues that were discussed during the 2021 Farmfest forums: Impacts of the 2021 drought and available exhausted pastures and depleted feed supplies. Many beef cattle producers are being forced to reduce their herd sizes due to limited pasture and hay resources. There was considerable discussion regarding opportunities for crop and livestock producers to participate and benefit from carbon credits. However, it was very unclear how those carbon credresources — Nearly all of the forums its will be valued or traded. It was at Farmfest centered around the also very uncertain as to what pracimpact of the drought on crop and tices will qualify for carbon credits, livestock producers. Based on the and whether producers who have “U.S. Drought Monitor” in early already adopted carbon-friendly August, over 75 percent of Minnesota practices will be eligible for any comwas categorized to be in either the pensation. The bottom line from the extreme drought (D3) or severe Farmfest forums was that it is probdrought (D2) category, with only the ably better to walk before you run Southeast quarter of the state being when it comes to make major changlargely spared from these conditions. es in a farming operation strictly tarNearly all of North and South geted toward gaining value from the Dakota were at some level of emerging carbon market. U.S. energy policy — There was considerable discussion at Farmfest as to how climate change legislative proposals, such as the “Green New Deal” or further implementation of the California Fuel Standards might impact agriculture industry and future development of biofuels. On one hand, farm organizations and commodity groups point to the climate benefits of expanding the use of biofuels by moving toward E-15 blends of ethanol and higher levels of biodiesel. On the other hand, many special interest groups are calling for reductions or elimination of the federal renewable fuel USDA has announced the potential for emergency haying and grazing on land enrolled in the Conservation Reserve Program (CRP) in areas of Minnesota which are the most severe drought. Livestock producers should check with their local Farm Service Agency office regarding eligibility, enrollment details, and requirements for emergency haying and grazing of CRP acres. drought, with over two-thirds of North Dakota and a large area of north central South Dakota in either extreme drought (D3) or exceptional drought (D4). Areas in extreme or exceptional drought are likely seeing significant crop loss and extremely limited forage production, as well as longer term effects on lakes, rivers, streams and ground water supplies. The weekly U.S. Department of Agriculture Crop Report released on Aug. 2 listed the condition rating of the corn in the United States at 64 percent goodto-excellent. However, the higher-level crop rating Photo by Paul Malchow MinnStar Bank’s Kent Thiesse (left, holding microphone) introduced one of the popular Farmfest forums. in Minnesota was only at 36 percent, which is the USDA also has other programs available to assist standards (RFS) and other measures — which would lowest in many years. The early August crop report livestock producers. Eligibility requirements and hurt the renewable fuels industry — while calling 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 found at https://www.fsa.usda.gov/programs-andservices/disaster-assistance-program/index. Many states in the Upper Midwest, including Minnesota, have a well-established corn-based ethanol 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 to 2020, profit margins in crop and livestock producLivestock-related issues — There were many issues tion had been quite tight in recent years, which put See THIESSE, pg. 10

By DICK HAGEN

The Land Staff Writer Emeritus

MORGAN, Minn. — It was good to be back at Farmfest once again; and as usual, my first stop was the Minnesota Corn Growers’ exhibit. Why? Because of their sweetcorn-flavored free ice cream offerings. It is also a tremendously convenient spot for quick interviews with lots of key people such as Kevin Paap, President of the Minnesota Farm Bureau.

I’ve known Paap for many years and was curious to hear what he thought are the big issues facing farmers today. “Much the same as past years,” Paap quickly answered, “the growing disconnect of consumers and a decreasing number of elected officials from agriculture and rural Main Streets. We’re becoming another generation removed from Grandpa and Grandma’s farm.”

Might this growing disconnect of elected officials stem from so few of them anymore have a farming background? “Very true,” Paap replied, “and unfortunately, fewer and fewer with each new turn of elected officials — be that state assemblies or U.S. Congress. But it’s not just farm issues. People won’t fight for an issue if they don’t understand it. Most things we can explain, but not in a 30-second sound bite which seems mostly the big play in television news anymore. Yet building trust with consumers and elected officials is vital to our future.”

Kevin Paap

“Technology continues to ramp up change in production agriculture,” Paap went on to say, “However, one thing that doesn’t change is our commitment to taking care of the land, the animals we raise, and preserving our natural resources.

With crops withering across Minnesota and the Dakotas, I asked for Paap’s take on this 2021 season. “One thing I’ve learned in 16 years as Minnesota Farm Bureau President is, don’t talk about the weather and my own farming situation to a reporter — even you Dick — because always someone is worse off,” said Paap. “A rain within the next few days will make a difference. Most people — especially non-farmers — have no idea that at this stage a corn field needs the equivalent of an inch of moisture per week. We just don’t have those reserves right now … our soil moistures are pretty well depleted. But there’s an offset: this dry season has driven corn roots deep enough to still find some soil moisture. And thanks to new genetics, some corn hybrids are relentless in their quest to produce yields — even with minimal rains.”

Despite his “don’t talk to reporters” rule, I know Kevin doesn’t duck away from an unreasonable question. So I asked how much below last year’s record corn yields will your farm do this year? Paap answered: “At this stage, I think we still have potential for a reasonable crop. Yes, last year was my best crop in my 39 years of farming, so let’s not compare to last year. I’m not giving up on APH (actual production history) yields. On soybeans it’s still early August and with rain in the forecast I’m going to remain optimistic. That’s why we farm. And daily contact with the good Lord is vital also.”

As President of a large agriculture organization and Paap’s newest endeavor as county commissioner, I was curious about his view of politics in general. “It’s obvious we’re becoming more polarized on a lot of issues,” stated Paap. “In agriculture, we lead by example: working together works better. Going one direction for four years, then another direction the next four years simply doesn’t work in America.”

Not long ago, Paap announced his retirement as Farm Bureau President. But that doesn’t mean he will be idle. “I was fortunate to be elected a county commissioner here in Blue Earth County. And with all the issues on water, I’m certain we’ll have challenges. But more important, I’ve a 2-year old grandson just a half mile down the road, and another grandson on the way, so more ‘Grandpa time’ with my grandchildren is my future. Yes, my sons have taken over the farming operations; but when extra help is needed, we all pitch in. Yes, more acres than when I started, but it’s still a family farm … and our family keeps growing too. We’re now into the third generation of Papp farmers.”

On that note, I bid Paap a good day. Without leaving the Corn Growers’ tent and into my second ice cream offering, I met Carl Bednarski, who is President of the Michigan Farm Bureau.

“What part of Michigan for you, Carl?” I asked to

See MCGA, pg. 10

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MCGA, from pg. 9

break the ice.

“Up in that thumb area,” Bednarski replied, holding up his left hand with the palm facing out. “Look at your left hand and we’re about half-way up.”

Bednarski grows corn, soybeans, dry beans, sugar beets and wheat. He is pleased with his crops. “We had drought issues early on this growing season,” he said, “but now in early August things are looking pretty good. Timely rains Lisa and Carl Bednarski get much credit.”

Bednarski said Michigan Farm Bureau is at about 220,000 members, currently involving about 43,000 farm families. “Getting young farmers involved is the challenge,” he admitted, “but that’s also our future.”

At 59 years old, Bednarski sees many more years with Farm Bureau and farming. “My wife often asks me, ‘When are we going to have a hobby so we can just relax and do nothing?’ I respond, “I have a hobby … its called farming. So when I stop enjoying my hobby, that’s when I’ll likely stop farming too!”

The Michigan dignitary sees two top issus facing agriculture these days: labor and environmental issues. “It’s ridiculous how farmers get attacked on the environmental front,” Bednarski said. “People forget we’ve raised our families here for generations. We are part of this land. We are not going to abuse this land that creates our own sustenance. We are the true conservationists of America and we need to get that message across to everyone — consumers and politicians.

“Labor is an issue wherever you go anymore,” he continued. “The ongoing aid packages of this current government aren’t helping the situation either. Paying unemployed people more than if they were working is absolutely stupid!” Bednarski seemed to be enjoying himself and Minnesota hospitality. “It’s just a two-hour flight from my area, so coming to Farmfest was a treat!” he exclaimed. “A great show, lots of exhibitors … I’ll have a chance to visit with our National Farm Bureau President, Zippy Duvall from Georgia. Plus, of course, I check up on Kevin to see how he’s treating you Minnesota folks too. I’m having a great time!”

So I’m still at the Minnesota Corn Growers’ tent, thinking about one last ice cream for the road, when in walks MCGA Board Member Harold Wolle. My friendship with Wolle goes back to a church missionary trip to Africa 20 years ago.

I motioned toward a huge banner on the MCGA tent wall which reads: “Unleaded Octane 88.” Being curious by nature, I asked Wolle what’s that all about?

“Because ethanol fuels continue vital in the energy world and the Minnesota Corn Growers have long championed these fuels produced from Minnesota grown corn, we’re now encouraging Minnesota gas stations to market ‘Unleaded 88’ which is 15 percent ethanol fuel content,” Wolle said. “As you know, all regular gas in Minnesota has 10 percent ethanol; but Unleaded 88 is 15 percent ethanol. This higher octane fuel is usually 3 to 10 cents cheaper and produces fewer emissions … just a good deal for consumers.”

MCGA hopes Unleaded 88 would soon become a mandated fuel by Minnesota government action. “That was a priority of Corn Growers at this last legislative session,” Wolle admitted, “but Covid changed the scenario. The bill we were advocating made it out of both the Senate and House Ag Committees. However, the oil folks don’t want give up any of their market share. I’m told it ran into some issues in the Commerce Committee; so we’ll fire up and push for better results next time.

Wolle went on to remind me Mexico and Canada are solid buyers of U.S. ethanol. “Yes, both of our good neighbors continue to be buyers … in fact, a 10 percent ethanol fuels market nationwide in Mexico was being talked; but I understand that got cut back to 5.8 percent. However, I’m told we’re now up to 440 stations in Minnesota with E85 pumps too. But now look for a big move to Unleaded 88 which is already available at Casey outlets, several Cenex and Quick Trip stations too. And according to EPA, Unleaded 88 is cleared for any vehicle 2001 and newer.“ I reminded Wolle of our visit to a remote country church in Arica some years back. “That was a trip you and I will always remember,” Wolle beamed, “and treasure as well. Yes, you and I were casually visiting with two ladies of the church. We noticed both had umbrellas. We asked why? They both replied, ‘Because if a sudden shower erupts, we’d need our Harold Wolle umbrellas. Our church roof leaks badly but we have no money to fix it.’ So we agreed to see if we could raise enough money when we got back home so these two South African women might have a new rainproof roof over their country church.”

These two sweet ladies even told Harold and I they would sing to us if this new roof happened over their church. Thanks to generous donations from our Minnesota Diocese the new roof did happen. However, Harold and I never got back for our song fest from the ladies of this country parish. v

Key questions for upcoming Farm Bill raised during forum

THIESSE, from pg. 8

affecting the livestock industry which surfaced during Farmfest. The pork industry is being challenged by the implementation of Proposition 12, which would restrict a significant amount of the pork being produced in the Midwest from being sold in California. Pork producers also want to keep export markets open for U.S. pork and are concerned with outbreak of African swine fever disease in the Dominican Republic and ongoing challenges with porcine reproductive and respiratory syndrome disease.

Beef producers are very concerned with the worsening drought situation in many cow/calf production areas of the United States, as well as monitoring the Department of Justice investigations into the beef processing industry.

Dairy farmers have seen some improvement in profit levels during the past year. However, the longterm trend in the dairy industry is for continued tight profit margins. This will likely result in a continued trend of smaller dairy producers exiting the industry in the next few years.

Looking ahead to the next Farm Bill — The current Farm Bill expires on Sept. 30, 2023, so congressional discussions on the next Farm Bill will likely begin later this year and continue into 2022. It will be interesting to see how issues such as providing adequate safety nets for crop and livestock producers, climate change, and social issues affect the Farm Bill discussion.

Some key questions relative to development of the next Farm Bill which surfaced at Farmfest include: Will crop insurance continue to be protected as a corner-stone risk management tool for farmers? Will crop producers still have farm program choices (PLC and ARC-CO)? Will carbon sequestration efforts be linked in the commodity title? Will there be a move to further expand CRP acres or add setaside acres for carbon sequestration? Will enhanced risk management tools be added for livestock producers? What will be the budget allocation and how much will be allocated the Nutrition Title?

There are numerous other issues and programs which impact greater Minnesota in a variety of ways which surfaced during the Farmfest forums including rural health care, labor shortages, expansion of broadband coverage, and infrastructure needs. Congress is likely to make some key policy decisions in the coming years.

Kent Thiesse is a government farm programs analyst and a vice president at MinnStar Bank in Lake Crystal, Minn. He may be reached at (507) 726-2137 or kent.thiesse@minnstarbank.com. v