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www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — AUGUST 20/AUGUST 27, 2021
Farmfest generates healthy discussion on key policy issues
hay resources. try is headed related to the carbon market. Over the past few years, Farmfest has been a major event for discussing key USDA has announced the potential for There was considerable discussion regarding issues affecting farm families, the ag emergency haying and grazing on land opportunities for crop and livestock producers to industry and rural communities in enrolled in the Conservation Reserve participate and benefit from carbon credits. However, Minnesota and the Midwest. Many of Program (CRP) in areas of Minnesota it was very unclear how those carbon credits will be these same issues will likely frame the which are the most severe drought. valued or traded. It was also very uncertain as to discussions on agriculture and rural poliLivestock producers should check with what practices will qualify for carbon credits, and cy issues in Washington, DC in the next their local Farm Service Agency office whether producers who have already adopted carfew years. regarding eligibility, enrollment details, bon-friendly practices will be eligible for any comFARM PROGRAMS and requirements for emergency haying pensation. The bottom line from the Farmfest Farmfest is held in early August and By Kent Thiesse and grazing of CRP acres. forums was that it is probably better to walk before brings together elected officials and you run when it comes to make major changes in a appointed officials together with USDA also has other programs farming operation strictly targeted toward gaining national and state ag leaders to anaavailable to assist livestock producvalue from the emerging carbon market. lyze these key issues and offer perers. Eligibility requirements and spectives on solutions and future details on all USDA drought assisU.S. energy policy — There was considerable dislegislation. Following are some of the main issues tance programs are available at local FSA offices. cussion at Farmfest as to how climate change legisthat were discussed during the 2021 Farmfest Details and updates on the USDA drought prolative proposals, such as the “Green New Deal” or forums: grams can also be found at https://www.fsa.usda. further implementation of the California Fuel gov/programs-and-services/disaster-assistance-proStandards might impact agriculture industry and Impacts of the 2021 drought and available gram/index. future development of biofuels. On one hand, farm resources — Nearly all of the forums at Farmfest organizations and commodity groups centered around the impact of the point to the climate benefits of drought on crop and livestock proexpanding the use of biofuels by movducers. Based on the “U.S. Drought ing toward E-15 blends of ethanol Monitor” in early August, over 75 and higher levels of biodiesel. On the percent of Minnesota was categoother hand, many special interest rized to be in either the extreme groups are calling for reductions or drought (D3) or severe drought (D2) elimination of the federal renewable category, with only the Southeast fuel standards (RFS) and other meaquarter of the state being largely sures — which would hurt the renewspared from these conditions. Nearly able fuels industry — while calling all of North and South Dakota were for additional resources into expandat some level of drought, with over ing electric powered vehicles, as well two-thirds of North Dakota and a as wind and solar energy. large area of north central South Dakota in either extreme drought Photo by Paul Malchow Many states in the Upper Midwest, (D3) or exceptional drought (D4). MinnStar Bank’s Kent Thiesse (left, holding microphone) introduced one of the popular Farmfest including Minnesota, have a wellAreas in extreme or exceptional forums. established corn-based ethanol drought are likely seeing significant industry, which utilizes over 35 percrop loss and extremely limited forage production, Grain markets and rising input costs — One of the cent of the corn produced each year in the United as well as longer term effects on lakes, rivers, major discussion items at Farmfest was the trends States. In addition to the direct benefits to farmers, streams and ground water supplies. in the grain and livestock markets in the coming renewable energy plants have become cornerstones months. Crop production expenses and land rental in rural communities by providing jobs, adding to The weekly U.S. Department of Agriculture Crop the local tax base, and enhancing the overall ecoReport released on Aug. 2 listed the condition rating rates have risen sharply in the past six months, nomic vitality of the communities. of the corn in the United States at 64 percent good- which has some producers and analysts concerned about profit margins as we look ahead to 2022. Prior to-excellent. However, the higher-level crop rating Livestock-related issues — There were many issues to 2020, profit margins in crop and livestock produc- affecting the livestock industry which surfaced during in Minnesota was only at 36 percent, which is the lowest in many years. The early August crop report tion had been quite tight in recent years, which put Farmfest. The pork industry is being challenged by many farm operations at the brink of financial listed 60 percent of the U.S. soybean crop as goodthe implementation of Proposition 12, which would disaster by the end of 2019. Fortunately, a combina- restrict a significant amount of the pork being proto-excellent, with Minnesota again well below that average at only 34 percent in the higher categories. tion of one-time government aid programs, together duced in the Midwest from being sold in California. with the strongest grain prices in several years, The only major crop producing states with lower Pork producers also want to keep export markets good-to-excellent ratings for corn and soybeans than allowed farmers to rebound financially in 2020, open for U.S. pork and are concerned with outbreak of which is a trend that has continued into 2021. Minnesota were North and South Dakota. African swine fever disease in the Dominican Carbon sequestration and carbon credits — Carbon Republic and ongoing challenges with porcine reproThroughout the summer of 2021, drought condisequestration, carbon credits, and potential legislaductive and respiratory syndrome disease. tions have intensified in most of the Northern tion to address climate change garnered considerable Plains and Northwest Corn Belt states. Livestock Beef producers are very concerned with the worsdiscussion during the Farmfest forums by elected producers in those areas are being especially hardening drought situation in many cow/calf production officials, ag leaders, and experts in the carbon indus- areas of the United States, as well as monitoring hit by the extended drought conditions with try. One quote of note was, “the carbon market is like the Department of Justice investigations into the exhausted pastures and depleted feed supplies. the wild, wild west”, meaning there is no clear-cut Many beef cattle producers are being forced to See THIESSE, pg. 10 path as to where the United States or the ag indusreduce their herd sizes due to limited pasture and
MARKETING
