Farm Programs

Under the current Farm Bill, crop producers have more options for annual farm program enrollment at local Farm Service Agency offices. Producers initially made their program choice for the 2019 and 2020 crop years and now can make an annual farm program choice each year.

Farmers made their 2021 farm program choices earlier this year. A majority of producers have chosen the price-based, Price Loss coverage (PLC) program on crop base acres for corn, wheat and other crops for 2018-2021, while the county yield-based Ag Risk Coverage (ARC-CO) farm program choice has been more popular for soybean base acres. Some farmers in areas with very low crop yields in 2019 chose either ARC-CO or ARC-Individual (farm yield based) on their corn for 2019 and 2020.

2020 PLC Payment Potential

PLC payments are made any time the final market year average price for a given crop drops below the reference price for that crop. The PLC payments are made in October in the year following the year the crop was raised. For example, potential 2020 PLC payments will be paid in October of 2021.

The established reference prices for the 2020 crop year were: corn, $3.70 per bushel; soybeans, $8.40 per bushel; wheat, $5.50 per bushel; barley, $4.95 per bushel; oats, $2.40 per bushel; grain sorghum, 3.95 per bushel; canola, 0.2015 per pound; and sunflowers, .2015 per pound.

The 2020 market year average price for corn and soybeans is the national average corn or soybean price from Sept. 1, 2020 to Aug. 31, 2021, with the market year average price being finalized on Sept. 30, 2021. The market year average price is the 12-month national average price for a commodity, based on the average market price received by farm operators across the United States, which is then “weighted” at the end of the year, based on the volume of bushels sold in each month. The price year for market year average prices for wheat and other small grain crops runs from June 1 in the year of harvest until May 31 the following year, with market year average prices finalized on June 30 each year.

Based on the end of the 2020-21 marketing year on Aug. 31, 2021, The U.S. Department of Agriculture is estimating the 2020 market year average prices at $4.45 per bushel for corn and $10.90 per bushel for soybeans. The market year average price for wheat was earlier finalized at $5.05 per bushel.

The USDA price estimates are updated on a monthly basis in the USDA World Agricultural Supply and Demand Estimates report, which is usually released around the middle of each month. The current 2020-21 market year average price estimates are $5.45 per bushel for corn, $12.90 per bushel for soybeans, and $6.60 per bushel for wheat.

Based on the expected final market year average prices, there will not be a 2020 Guarantee.” The county benchmark yields for corn and soybeans in many Upper Midwest counties has increased in recent years, due to fairly strong average county yields from 2015 to 2018. The increased county benchmark yields for 2020 increases the potential for ARC-CO payments. However, that gain has been largely offset by the large reduction in the benchmark corn and soybean price. The USDA National Agricultural Statistics Service releases the estimated average county yields for corn, soybeans, and other crops in the spring of each year. These are not the final county yields used by FSA to calculate final ARC-CO payments for a given year. However, the NASS yields do give a pretty good indicator of ARC-CO payment potential for a year. Adjustments in final county yields from the NASS yields (which are made by FSA) are usually quite small and many times result in lower final yields than the NASS estimates. This can potentially increase the likeliPLC payment for corn, soybeans, oats, grain sorghum or sunflowers. However, there will be a PLC payment of 45 cents per bushel for wheat base acres that were enrolled in PLC for 2020, as well as small payments for barley and canola. By comparison, PLC payment rates for the 2019 crop year were 92 cents per bushel for wheat, 14 cents per bushel for corn, and zero for soybeans. There has been a PLC payment for wheat in every year from 2015 to 2020; and prior to 2020, there had been a PLC payment for corn in every year from 2015 to 2019. There has not been a PLC payment for soybeans since the initiation of the last Farm Bill in 2014. FARM PROGRAMS By Kent Thiesse MARKETING 2020 ARC-CO Payment Potential hood or amount for ARC-CO payments in some

ARC-CO payments for a given crop are paid when counties. The 2020 NASS county yields are availthe actual county revenue for the crop falls below able on the NASS web site at http://www.nass.usda. the county benchmark revenue guarantee for that gov/ crop. The county benchmark revenue guarantee is the county benchmark yield times the benchmark price for a given year, times 86 percent. The actual county revenue is the final county FSA yield for the year times the final market-year average price for the same year. Overall, 2020 ARC-CO payments for corn and soybeans are not likely in many portions of the Upper Midwest, due to 2020 crop yields that were close to or slightly above benchmark yields in many areas, as well as the higher final market year average prices which were well above the benchmark prices

The ARC-CO benchmark prices for the 2020 crop for corn and soybeans. There are few counties in year were $3.70 per bushel for corn, $9.25 per bush- central Iowa which were impacted by the derecho el for soybeans, and $5.50 per bushel for wheat. storm in August of 2020, as well as some counties in The benchmark prices are adjusted each year, using the USDA market-year average price for the five years preceding the most recent year (2014-18 market year average prices to calculate 2020 benchwestern North and South Dakota which may earn a corn ARC-CO payment for 2020. Virtually no counties are likely to qualify for a soybean ARC-CO payment in 2020. mark prices), then dropping the high and low mar- Looking ahead… ket year average price, and averaging the other At this point, it does not appear there will be any three market year average prices. The annual PLC payments for any farm program commodity benchmark price for a given crop can never drop crops for the 2021 crop year. All current market lower than the reference price for that crop. year average price estimates are running well above The current reference prices are $3.70 per bushel for corn, $8.40 per bushel for soybeans, and $5.50 per bushel for wheat. Lower benchmark prices reduce the potential for ARC-CO payments. The 2021 benchmark prices are set at $3.70 per bushel for corn, $8.95 per bushel for soybeans, and $5.50 per bushel for wheat. the established reference prices for the same crops. Of course, the 12-month marketing year for 2020-21 for corn and soybeans just began on Sept. 1, 2021. It is early to project corn and soybean ARC-CO payment potential for the 2021 crop year, as lower yield levels in some of the areas impacted by the drought in 2021 could potentially qualify for an ARC-CO payment. Areas with near-average or above corn

The benchmark county yield for 2020 was calcu- and soybean yields in 2021 are not likely to see an lated by taking the average county yields for the ARC-CO payment for either crop. Any 2021 PLC or previous five years prior to 2019 (2014-2018), drop- ARC-CO payments would be paid in October of ping the high and low yield, and averaging the 2022. other three yields. Kent Thiesse is a government farm programs ana-

The 2020 county benchmark revenue for a given lyst and a vice president at MinnStar Bank in Lake crop is the 2020 county benchmark yield times the Crystal, Minn. He may be reached at (507) 726-2137 2020 benchmark price, which is then multiplied by or kent.thiesse@minnstarbank.com. v 86 percent to calculate the “County Revenue

By DICK HAGEN

The Land Staff Writer Emeritus SPRING VALLEY, Minn. —Years back when we talked about U.S. vineyards and wineries, California, Michigan and New York tended to predominate the discussion. No more. Today, Minnesota vineyards generate much of the chatter. And that’s mostly because of the intensive cold climate genetic engineering of winter-hardy grapes at the Minnesota Horticultural Research Center in Chanhassen. The enterprising and entrepreneurial spirits of Minnesotans eager to generate new ambitions in the rewarding — but very challenging — ambitions of grape farming add to the mix as well.

Back in 2005, I ventured into the vineyard adventure, planting 620 grape vines into our three-acre vineyard on the north edge of Olivia. Generous help from good friends was a blessing. In 2008 we reaped our first harvest. Yep, it takes some toil, patience and energy; so suffice to say getting into the grape growing business was a bit challenging; but a very learning experience. However, after eight years of toil, we sold our ‘Little Ponderosa’ 10-acre farmstead and became a ‘city slicker’ in Olivia, the Corn Capital of Minnesota.

ON THE COVER: Director of Winery Operations Justin Osborne stands in the barrel room of Four Daughters Vineyard and Winery.

Photos by Dick Hagen Justin Osborne planted the Four Daughters vineyard with a skid loader and some helping hands. Today the winery grows nine different varieties of grapes.

Which leads me to this story: My wife and I, along with seven other Renville County folks, enjoyed a five-day ‘spring break’ at a cozy VRBO in Lake City, Minn. Obviously, where to dine and drink always rates high with us seniors, so this year a Minnesota winery was the choice.

That’s a roundabout way of introducing Justin Osborne, age 38 and Director of Winery Operations at Four Daughters Vineyard and Winery, located on State Highway 16 west of Spring Valley, Minn. “I’m part of the family that started this operation 10 years ago,” said Justin adding, “At that time we weren’t thinking anything like what we have today.”

Four Daughters Vineyard and Winery is a fully operational winery, cidery, restaurant and event center. The estate includes a tasting room and large production areas, as well as a six-acre vineyard.

Osborne said the restaurant and fine dining idea come into being when Four Daughters hired their chef. “We found a good one,” he said. “We wanted to get into some intrinsic foods. Our new chef has a flair for clever twists on classic foods. That’s why we now offer brick oven pizzas, 4-D nachos, blood orange and fennel salad, plus a cheese and charcuterie board. Our caramel Macchiato cake gets some raves. It’s layers of ice cream, Four Daughters Pinot Noir (red

See FOUR DAUGHTERS, pg. 16

We can’t help you choose between A and B. But we can help you choose from our genetically diverse lineup of products.

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FOUR DAUGHTERS, from pg. 15

wine), chocolate cake, espresso gelato, and our kitchen’s special coffee. All topped with house-made salted caramel, fudge, and whipped cream.”

As for the vineyard, Osborne planted the grapes with some helping hands and a skid loader. Four Daughters grows nine different varieties of grapes. “Right now we have nine; but really just four main production blocks: Brianna, Edelvise, Marquette and Frontenac,” he said.

Osborne said Sangria Rosa is their most popular wine. “But in our dining area, American Pinot Noir is number one,” he added. “I like red wines, like our Big Boy Blend. We offer two Ports: Velvet Hammer and Pinot Noir Reserve. Both are doing extremely well. Our grapes lend themselves very nicely to our Port wines.”

Unlike the corn and soybean crops across Minnesota, the grape crop this year isn’t being affected by a lack of rain. “This dryer weather is okay for grapes, so we’re anticipating a pretty good crop,” Osborne said. “Soil moistures were plentiful in early season. My father-in-law grows about 6,000 acres of corn, so that takes preference over my six acres of grapes. My vines aren’t hurting; however, I prefer regular rainfalls for all my farmer friends.”

Yes, 6,000 acres is a lot of corn. The Osborne spread feeds lots of cattle; but there are other uses for that corn. “So glad you asked!” exclaimed Osborne. “We now have a good-sized bourbon operation underway which can consume lots of corn too! Also, we’re now the number-one producer of hard cider in the state of Minnesota. We make about 20 times more hard cider than we do wine. We mostly use the Budweiser network for marketing our ciders. In Wisconsin, a company called General Beverage does our distributions.”

Making bourbon brings with it a whole set of regulations not encountered with bottling wine. “Two specifics,” stressed Osborne. “It has to be at least 51 percent corn derived; and aged in a new American oak barrel (for at least one day); and averaging 155 proof or less. That remaining 49 percent of your mash can be a mixture. We use barley, some oats, rye, even wheat … including a wheat that produces a cherry-wood smoked flavor.”

Osborne stressed that growing grapes successfully can be a complicated process. “Every couple years we analyze our vineyard soils,” he said. “They seldom need extra nitrogen — generally, just a nudging with

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other nutrients is about all that’s needed. However, fungicides … you need to stay on top of. Mildews, molds, and various funguses seem to thrive in these extra warm seasons. We spray every two weeks once the fungicide season is in action.”

Pruning is essential to a successful grape crop and is done in early spring. “We’re cutting off about 90 percent of the vines’ total weight, so our vineyard looks a bit spindly for a couple months,” laughed Osborne. “But new sprouts regenerate vigorously for the next crop. Extensive pruning is the crux of growing grapes.”

When it comes to the harvest, Four Daughters chooses the hand harvest method over mechanical. But that situation may change. “Mechanical harvest is still mostly new for this region. It takes eight guys and gals about eight hours to hand pick one acre of grapes. So we’re considering hiring a guy with a mechanical rig,” Osborne confessed. “With the mechanical harvester, that one acre takes about 45 minutes. He bought his machine used (new machines cost about $250,000) from California where thousands of

acres of vineyards now get mechanically harvested. But I’m concerned about mechanical damage to the grapes. There’s zero damage when hand-picking grapes!” “On average, we yield about 3,500 to 4,000 pounds of grapes per acre; but highly variable by species,” Osborne continued. “Our Marquettes might only do two tons; however, the Briannas get up to 10 tons an acre. A ton of grapes produces about 150 gallons of wine which means about 300 bottles of wine. That tells you the importance of yield. Yes, the Brianna are productive — often producing up to 30-plus pounds per vine!” While Four Daughters has a fellow tending the vineyard, Osborne focuses on the wines and the ciders — plus marketing and sales. “We’re always learning,” said Osborne. “However, I look at it this way: success happens when you are inspired about your work. Whomever we hire brings new skills; so that’s often how I continue learning too.” Four Daughters has a website: www.FourDaughterVineyard.com. Osborne can be reached at (763) 458-3356. v Food waste prevention is needed

SWINE & U, from pg. 9

Enabling field research on climate smart agriculture practices and standardized data are necessary. In addition, this field data must be readily available to improve the accuracy of greenhouse gas emissions and soil carbon estimates from farms.

Food waste and carbon footprints

With roughly one-third of food produced for humans lost or wasted, our ability to end hunger, protect the environment, conserve natural resources, and mitigate climate change impacts is greatly undermined. Greenhouse gas emissions attributed to food loss and waste account for 8–10 percent of global anthropogenic emissions, making it the third largest emitter behind China and the United States if food loss and waste were a country.

In addition, food loss and waste has dramatic effects on depleting finite essential resources such as phosphorus, and aggravating nitrogen pollution problems.

Food waste prevention is at the top in addressing food’s climate and sustainability challenges. However, progress in waste prevention has been extremely slow. The UN Sustainable Development Goals Target 12.36 calls for halving per capita food waste at retail and consumer level by 2030.

In the United States, food donation and various food rescue efforts helped to save up to 2 million tonnes (4.4 million pounds) of food from being wasted. The amount is significant, but very small compared to the magnitude of the problem: 60 million tonnes (132 million pounds) of edible food is lost/ wasted at the consumption stage annually.

The question is: How can societies manage the food waste streams to extract the maximal value while alleviating climate and environmental burdens?

A national framework is needed which focuses on creating and/or expanding commercialization of food waste recycling options, with the goal of optimizing resource recovery; reducing carbon, nitrogen, and phosphorus footprints; and mitigating climate impact. Government policies and entrepreneurial incentives at local, state, and national levels must be developed.

Agencies must address biosafety concerns including applying FSMA regulations to food waste for animal feed; re-evaluating the Swine Health Protection Act and current thermal processing conditions; define low bio-hazard food waste stream sources; and develop science-based hazard analysis and preventive controls for food waste processing facilities.

Investments are needed in research and technological innovation to establish LCC reduction credits of food waste recycling options; as well as documenting the impacts of the various options; and foster technological integration.

It is also important to create educational programs and promotions to change society’s perceptions — thinking that food waste is “garbage” toward considering it as a valuable “green” resource for composting, biogas and animal feed.

This article is part of a larger paper composed by members of the Council for Agricultural Science and Technology: The Science Source for Food, Agricultural and Environmental Issues. The entire paper, “The Role of Agricultural Science and Technology in Climate 21 Project Implementation” June, 2021 can be accessed at https://z.umn.edu/CASTjune2021.

Gerald Shurson is a professor in the University of Minnesota’s Department of Animal Science. Dr. Shurson focuses on the area of swine nutrition with a wide variety of related research topics. He can be reached at shurs001@umn.edu. v