Ag Outlook 2020 Future of farming
Cavalier County
Republican
Page 2 – Monday, March 23, 2020
Ag Outlook 2020
Cavalier County Republican
Legislative Update
Senator Janne Myrdal R – District 10 jmyrdal@nd.gov – 701-331-0946 Snow is melting, sun is warmer on your face and that annual readiness is taking place among farmers, -looking forward to spring work. Ranchers are busy calving and that will continue throughout the spring. Many producers in our area are out in the snow combining crops that could not be harvested due to wet snowy fall and that is not how we prefer it surely. Recent reports of the yield however are coming in mostly positive so that is good news indeed as these producers will have to turn around and work these acres up almost right away to ready for seeding. So all in all lots of continuous work this spring. That is not unusual for the American farmer or rancher though is it? In recent national political debates is it quite dismaying to see how little our national leaders know of agriculture. I will refrain from quoting dumb comments, but I think most of us agree that agricultural is something we must
“shout from the roof tops” if you will. North Dakota especially, as we tend to be more quiet and subdued about our accomplishments and importance. Yet we are a national, and international leader in food and energy production, providing our nation with energy independence AND food security, something we do not often even think about. Only a handful of nations can claim food security, and America is one of those, thanks to the hard work of farmers and ranchers around the nation, - North Dakota among the top producers. I serve on President Trumps Ag Advisory board and am grateful this President understands that food security equals national security! His administration is working hard on good profitable trade agreements for our producers. Not an easy task and takes time, but I believe we will prevail. When I was asked to serve on this board, I was a bit sceptic because I frankly don’t care about “board sitting” if it is in name only and does not have any purpose. What I have learned is that this administration wants to hear directly from producers, not the filtered information through layers of bureaucracy. Through conference calls and emails, a large group of AG people have direct input into the White House. We also learn and hear from other regions in the country, - their issues and concerns as well as ideas to improve. It is rewarding to
know that what we do matters, especially in light of current media distractions. These are times of looming uncertainty for sure, - with corona virus spreading (though I do think it is blown out of proportion), the market reacting and foreign nations engaging in oil and gas wars that directly hurts our economy here at home. North Dakota is a dual commodity state, with agriculture and energy productions, - thus very vulnerable to the above. If a person just watched the constant barrage of news, it could become quite depressing. Yet what are we about to do here in North Dakota? What we always do without fail! Get back in the field to seed our crops and soon bring cattle to pasture as always. I truly believe that of all places in the nation and of all people, we are strong and fortunate, - blessed actually. We embrace the growing season as usual, working on equipment in our farm shops and making trips to FSA, the bank, and ordering seed, fertilizer and chemicals to work our land once again. There is an eagerness and spring in the step of farmers right now, no pun intended, as the weather warms. It is something I, as a “farm immigrant”, have come to deeply appreciate and be grateful for. I have written in my legislative updates about the work of the Interim Agriculture Committee and will not be redundant here, but would mention
that I am looking forward to seeing the completion of the transfer of grain handling from the Public Service Commission to the Ag Commissioner. In many hearings and reports it is looking very promising for all involved and we are working closely with the AG Commissioner to assure safe and transparent grain market practices in our State and ready to make the changes within our laws this upcoming Session to assure such. As we face the 2021 ND Legislative Session coming up in January, the Senate AG committee will re visit water topics as it seems there are still issues to be clarified in the Century Code relating to drainage. We must protect against taxation without representation as it relates to water issues. We will also take a look at some of the agricultural property definitions as it relates to taxation. Another issue is protection for consumers and producers as far as the advertising of meat and dairy products. There is a theft of definitions in those areas from products that do not qualify as meat or dairy. And of course the debate over the Legacy Fund will continue. I would appreciate any input on all issues relating to AG before the next Session. We are in this together, - growing the crops, assuring fair markets and work to educate the nation about the work we do. Thank you for ALL the work you all do to feed the world. Stay safe.
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Cavalier County Republican
Ag Outlook 2020
Monday, March 23, 2020 – Page 3
Report From the Legislature
Rep. David Monson R – District 10 My take on this year’s agriculture outlook is a bit of a mixed bag. I’m cautiously optimistic, but a lot of work needs to be done before we can put any seed in the ground. There’s still a lot of crop to harvest from last year in many places. After we dispose of last year’s crop and residue there is a lot of fall’s work to do. Very little fertilizer was spread in our area and little field work got done. We could be looking at some prevent plant situations if we get a wet spring. Fortunately, it seems like all the snow we got early in October melted and found a way into the soil. We didn’t have a particularly snowy winter, and the mild temperatures of late made the snow we did have melt in a controlled manner. In my corner of Cavalier County we should have very adequate moisture, maybe a bit of an excess. But some areas of the state are concerned about flooding while others are facing a drought. It’s quite variable around ND. A big negative now is the Corona Virus and the effect it’s had on the economy and commodity prices. The price of oil has plummeted. Good for farmers and consumers; bad for ND’s revenue situation. As a legislator on the House Appropriations Committee, I can’t help but think of how tough it will be to balance our state’s budget if oil stays in the $30 per barrel range. We’ve faced this before and know how to live frugally, however, so we’ll get through it. The effect of low commodity prices will put a big strain on farmers’ budgets. The good news is that despite the Corona Virus, people still need to eat, and our farmers will produce the food for the US and the world. With lower oil prices, inputs should be lower, so with a decent crop and good weather I expect to see our farmers do OK. Deciding what to plant to turn a profit is one of the big challenges, too. NDSU has tools we can use to help us with those decisions. Use them. In closing I have to give an update on industrial hemp (now just referred to as hemp). Last year things looked very upbeat. The farm bill had hemp written into it so that it was no longer just an experimental crop. The Administrative Rules Committee took input from all concerned and wrote rules on how to implement the bill. Unfortunately, the DEA showed up and suggested rules so onerous to the hemp farmers and industry that it had the potential to set us back
to where we were 7 years ago. Our Ag Commissioner and many people from all across the nation, farmers and industry alike, gave input in January. The Rules Committee backed off some of the worst ideas. From what I hear it sounds like hemp farming will be able to continue progressing now. We’ll have to wait and see. The Langdon Research and Exten-
sion Center continues to do research on hemp, and they are considered one of the premier authorities in the US on hemp. We are fortunate to have them in our community, not only for hemp research but for everything they do for our farmers. They are a valuable resource on soils, diseases, weeds, and crops of all kinds. I want to give special thanks to Randy
and his entire team at Langdon REC for all they do. We are facing some challenges, but it could be good. The Corona Virus will pass, prices will rebound, inputs will be lower, and with good weather we have the potential for a good year. Farmers, be safe and have a profitable year.
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Page 4 – Monday, March 23, 2020
Ag Outlook 2020
Cavalier County Republican
Report From the Legislature for counties and townships as the oil industry slumped and forced a midterm across-the-board budget reduction at the state level. The budget surplus intended to replace property tax revenue failed to materialize. Although this put the state in a squeeze for some time, at least the counties and townships were not dependent on the state for their revenue and retained local control over the dollars they raised locally through property taxes. The situation could have been quite different had these political subs been dependent on the state budget surplus for funding. A surplus is not budgeted because you don’t foresee it and you can’t count on it. I’m not saying I enjoy paying property taxes or that anyone else should. What I am pointing out is that at least I see where my property taxes are spent. Property tax is not levied, collected or spent by the state. They are local taxes collected locally to pay for services provided to local residents of the political subdivision collecting the tax. The reason I bring this up is because one of the things I often hear
Rep. Chuck Damschen R – District 10 It seems every year in production agriculture there is something challenging to deal with. We meet these challenges one way or another, it seems, but what about challenges that have long lasting, permanent affects on our bottom line? Or challenges that are on the surface, beneficial, but when applied end up being a burden on our operation? One of these, in my opinion, is the proposition of property tax prohibition. There was a proposed measure several years ago that would have done just that. Supporters of the measure felt that the money raised by property tax could be replaced by surplus dollars raised through oil extraction taxes. As it turned out the measure failed. If it had passed it would have very likely been a total disaster
complaints about is property tax. And the more land owned, the more property tax paid. This can be a major expense in some cases, so eliminating the tax has a certain amount of appeal. There is the possibility that there may be another attempt to eliminate property tax this election, from what I’m hearing. I have not heard where the funds for local subdivisions would come from, should the measure pass. It seems unlikely that funding would be anticipated from oil taxes, especially with the recent collapse in the crude oil market. This might be the classic “be careful what you ask for because you might get it”. I hope you will consider several factors in your decision to support or oppose doing away with property tax: • Will eliminating property tax actually reduce your taxes or will another tax be raised to compensate? • Will political subdivisions retain local control if they are dependent on revenue they have not raised? • How will the budgeting process be handled for the political subdivisions? • If property tax is eliminated but
has to be reinstated at some point, will farmland be assessed according to current methods or be taxed at a much higher rate? • Will rural farm houses be taxed at residential rates? These are some of my concerns and when you dig in to them some of them become quite problematic. I consider property tax a method of billing citizens for services provided through a local government entity. There is often some discussion as to who is responsible for higher property taxes, state or county. The valuation is a formula that comes from NDSU, indirectly the state. However, increased valuation can be offset by reduced mill levies which ultimately are determined by local county commissioners. I think it’s most important for legislators and local government officials to communicate, even if, or especially if they don’t agree on all points. I believe both have the best interests of their constituents at heart. Working together towards that goal will make it more attainable. For our ag producers it is essential that property tax be justified by quality and quantity of services provided to rural areas.
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Ag Outlook 2020
Financing the Farm through 2020 By Melissa Anderson Republican Editor
Itching to get into the field may have to wait if producers are not financially prepared. The USDA named 2019 the worst growing season on record. Heavy rainfall, flooding and other adverse events prevented more than 19.4 million acres of crops from being planted across the country and most significantly in the Midwest, which saw a sharp decline in corn, soybeans and wheat. An impossible planting season led to a less than desirable growing season before abysmal harvest conditions put the final nail in the 2019 record books. Lake Region State College’s Jeremiah Halley assists producers in Cavalier County to create farm management plans at his remote location at the NDSU Langdon Research Extension Center, and this year the pressure is on to have farm finances in order. “This year has been unique with an exceptionally difficult harvest. There have been a tremendous amount of crop insurance claims, and it just takes time to work through all of them,” Halley commented. “Having a good working relationship with your lender and a strong working capital position allows the farm to move forward and cover current obligations including family living. Having your finances in order can also provide options to take advantage of opportunities or capital purchases that arise.” Halley has worked for LRSC for the past four years and assisting farmers for just as long. Prior to this position he worked as an ag lender. Making the switch was an easy choice for Halley as he enjoys being a farm business management(FBM) instructor primarily because he likes helping producers achieve their goals.The main reason producers should seek Halley out for assistance is if they are looking for opportunities to increase profits. The FBM program provides many different tools to help producers achieve those goals. “Producers are looking for opportunities to increase profits, and the FBM program provides many different tools to help the producers achieve those goals,” Halley said. “Some examples include: a marketing planner spreadsheet for crop marketing, a tax planner for estimating tax liability, and benchmarking that allows the producer to compare their costs/ratios to similar farms across the region or state.” Each individual producer will have goals that are usually quite specific
to their own operation. Some may be more business orientated, where producers look towards expansion of the operation, to introducing another family member to the business. Other goals may be looking at where the operation is today and where would they would like to see it in the future. Sometimes the goal is as simple as enjoying a sustainable rural lifestyle as a 4th generation farmer. Halley explained that goals are best accomplished with quality records and using that information to make informed business decisions. “Planning and monitoring finances should be continual and ongoing. The agriculture economy is dynamic, and it’s important for a producer to monitor their cash flow and break evens,” Halley said. “It’s also a good idea to look at multi-year cash flow once a year or anytime there is a major change on the horizon.” The FMB program uses those same records to identify strengths and/or weaknesses of the operation. Halley will review all of this information with a producer so they are able to develop a cash flow for the following year. In years where tough decisions need to be made following poor harvest or loss of markets, Halley assists producers by reviewing different options that are available. “Avoidance in tough situations can be the easiest road to take, but it’s a good idea to be proactive. It can be challenging and certainly take some time to work through a shortfall, but seeking professional advice and giving yourself as much time as possible is going to be a good strategy,” Halley stated. Helping the producer work through the numbers to see where changes and adjustments can or need to be changed is the first step. Assessing crops on an enterprise basis and monitoring placement of crops in different fields can also help producers improve profitability. “Good recordkeeping is the key to making good financial decisions and evaluating trends. The trends can often provide insight into areas a producer can reduce costs or increase revenue. Diversification can improve productivity,” Halley said. A producer should be consulting a group of professionals to make sure things are in order. This includes your lender, CPA, farm business management instructor, or crop insurance agent. Halley looks forward to assisting Cavalier County area producers and can be reached at 701-256-2582 or via email at Jeremiah.Halley@lrsc.edu.
Monday, March 23, 2020 – Page 5
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Page 6 – Monday, March 23, 2020
Ag Outlook 2020
Cavalier County Republican
Cavalier County FSA Report
By Julie Howatt
Cavalier County FSA News and Updates: The spring of 2020… At this writing, the snow is slowly melting, and the pavement is finally showing through the ice-covered streets. We have ‘sprung’ ahead the clock for the year, so our sunny days will last a little longer into the evening. ARCPLC - The FSA Office has completed the 2019 ARCPLC signup and are ready for producers to signup for the 2020 year. Please check with the office to see where you are at with the 2020 ARCPLC signup. 2020 Yield Update - The 2018 Farm Bill is offering producer’s a one-time opportunity to increase the PLC yields on their farm. The yield update uses the years 2013 through 2017 by taking a simple average of the years the crop was planted times 90 percent, subject to an additional factor. If the yield in any of the years is less than 75% of the county average yield will be substituted for that year. It is strongly suggested the yield update be completed before you get into the field this spring, even though the deadline isn’t until September.
2020 Certification Maps - The FSA office will be printing colored maps for producers to use as their certification maps. We hope to have the 2019 imagery, which will be used for the 2020 certification maps. You will be notified when the maps are ready to be picked up via GovDelivery email or by GovDelivery texting, see article below on how to sign-up for those text notifications. “Why do farmers farm? Love. They must do it for love. They love to live where they work and to work where they live.” - Wendell Berry The FSA office in Langdon wishes you a safe and bountiful 2020 farming season. Let’s be careful out there! Julie Howatt, Cavalier County Executive Director
FSA Offers Text Alerts to Cavalier County Producers To subscribe to this service, producers can text NDCAVALIER to FSANOW (372-669) to subscribe to text message alerts from Cavalier County. Standard text messaging rates may apply. Contact your wireless carrier for details associated with your particular data plan. Participants may unsubscribe at any time. Make sure you subscribe to FSA emails and texts. Contact the Langdon FSA office at (701) 256-5521 if you have
questions regarding FSA’s email news service or the new text message option. Update Your Records FSA is cleaning up our producer record database. If you have any unreported changes of address, zip code, phone number, email address or an incorrect name or business name on file they need to be reported to our office. Changes in your farm operation, like the addition of a farm by lease or purchase, need to be reported to our office as well. Producers participating in FSA and NRCS programs are required to timely report changes in their farming operation to the County Committee in writing and update their CCC-902 Farm Operating Plan. If you have any updates or corrections, please call your local FSA office to update your records. Feeling Overwhelmed? FirstLink Offers Resources to Help Help is available if you, or someone you know, is in need of emotional support as a result of farm stress. You are not alone, and help is as easy as dialing 2 -1 -1. The FirstLink Helpline provides confidential listening and support on a variety of topics, including financial assistance and mental health support. For help, or to connect to available resources, dial the 24-hour helpline at 2-1-
1 or 701-235-7335 (SEEK). The 24-Hour Suicide Lifeline is 800-273-8255 (TALK). Find FirstLink online at http://myfirstlink.org/services/2-1-1-helpline/. Important Upcoming Deadlines March 16, 2020: 2019 ARC-PLC Enrollment/ Election Deadline March 16, 2020: Deadline to purchase NAP Coverage March 31, 2020: Deadline for 2019 Crop Commodity Loans (Barley, Canola, Flaxseed, Honey, Oats, Wheat) May 31, 2020: Deadline for 2019 Crop Commodity Loans (Corn, Dry Peas, Soybeans, Sunflower) June 30, 2020: 2020 ARC-PLC Program Year Enrollment Deadline July 15, 2020: 2020 Acreage Reporting Deadline September 30, 2020: 2020 Yield Update Deadline November 16, 2020: Fall Acreage Reporting Deadline Wildfire and Hurricane Indemnity Program-Plus (WHIP+) The WHIP+ is provided for producers by the Additional Supplemental Appropriations for Disaster Relief Act of 2019 and is authorized to help agricultural producers affected by natural disasters in 2018 and 2019. This includes
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Ag Outlook 2020
Monday, March 23, 2020 – Page 7
Cavalier County FSA Report ____________________________________________________________________________continued from Page 6 natural disasters, such as floods, snowstorms, tornadoes, typhoons, volcanic activity, wildfires, drought and excessive moisture and related conditions. WHIP+ provides assistance for area producers who suffered crop losses. Eligible producers are individuals or legal entities with a share and risk in the crop, production and market risk associated with the agricultural production of the eligible crop. Producers must be able to show evidence of valid share and risk in the crop as well as control of the crop acreage on which the commodity was grown at the time of the disaster. Producers will provide FSA with the crop insurance units affected and the date of the WHIP+ acceptable cause of loss. Payments are based on several factors, including the expected value of the crop, value of the crop actually harvested, and crop insurance coverage and payments, among others. Signup for 2018 and 2019 WHIP+ is ongoing, as the program provisions and specifications are still being written. Higher Limits Now Available on USDA Farm Loans Higher limits are now available for
borrowers interested in USDA’s farm loans, which help agricultural producers purchase farms or cover operating expenses. The 2018 Farm Bill increased the amount that producers can borrow through direct and guaranteed loans available through USDA’s Farm Service Agency (FSA) and made changes to other loans, such as microloans and emergency loans. Key changes include: • The Direct Operating Loan limit increased from $300,000 to $400,000, and the Guaranteed Operating Loan limit increased from $ 1.429 million to $1.75 million. Operating loans help producers pay for normal operating expenses, including machinery and equipment, seed, livestock feed, and more. • The Direct Farm Ownership Loan limit increased from $300,000 to $600,000, and the Guaranteed Farm Ownership Loan limit increased from $1.429 million to $1.75 million. Farm ownership loans help producers become owner-operators of family farms as well as improve and expand current operations. • Producers can now receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan. Previously, microloans were limited to
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About Farm Loans Direct farm loans, which include microloans and emergency loans, are financed and serviced by FSA, while guaranteed farm loans are financed and serviced by commercial lenders. For guaranteed loans, FSA provides a guarantee against possible financial loss of principal and interest. For more information on FSA farm loans, visit www.fsa.usda.gov or contact your local USDA service center.
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Page 8 – Monday, March 23, 2020
Ag Outlook 2020
Cavalier County Republican
Intelligent Ag is teaching Old Iron New Tricks By Melissa Anderson Republican Editor
Homegrown precision ag can be found in North Dakota in many different places as brilliant minds find solutions to the problems found in the fields of the state. One business, located in Fargo, has created a unique model for solving problems and creating value for producers since 2011. Intelligent Ag not only develops their products in Fargo but also manufactures there as well. “Our business is focused on helping growers get more out of their equipment by providing new technologies to monitor and enhance machine performance,” Intelligent Ag General Manager Joe Heilman explained. “All profits are then reinvested into solving the next great challenge. So, when a grower invests their trust and money in our products, they’re also investing in the next great product from Intelligent Ag.” Like many supporting industries in the agriculture sector, the driving force behind Intelligent Ag’s product development is helping producers increase their overall profitability. Heilman explained many ways how the products created at Intelligent Ag accomplish this goal. • Extending the life of equipment - it is common for producers to want to upgrade to a newer piece of equipment to take advantage of new technologies that improve their operation’s efficiency and productivity. “We make technologies that are retrofit-
Sound Technology for Smarter Farming
table, allowing a grower to get several more years of use out of the same piece of equipment,” Heilman said. • Improving machine performance with their Recon monitoring products, producers know if their equipment is performing as it is intended and are armed with information to act quickly if it isn’t. “With our Engage section control products, we improve machine performance by reducing overlap in the field and saving valuable inputs,” Heilman shared. • Focusing on grower ROI - any solution that they develop is focused on ensuring that a producer’s investment can offer a solid return. While much of the value in their systems can be easily calculated in monetary means, there is an additional value offered through peace of mind and reduction in stress while in the field. “Our customers report that, in many cases, our systems pay for themselves in less than one season,” Heilman noted. With these goals in mind, the products developed by Intelligent Ag are giving old iron a new trick to help producers take advantage of new technologies to improve their operation’s efficiency and productivity. Technologies that are retrofittable gives several more years of use out of current equipment or can even be added to newer equipment, in some cases, to make it even more functional. “We believe this is very valuable when equipment is so expensive and growers need to find every way they can to improve their bottom line,” Heilman explained. By implementing devices such as those
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made by Intelligent Ag, Heilman explained that producers could improve their profit margin in a few ways. A few examples he gave were ensuring product application is being done properly with few mistakes, increasing productivity in the field, decreasing overlap and making the most of inputs, and by monitoring product flow. Intelligent Ag currently has three devices available to producers. The first product the business offers is the Recon Wireless Blockage and Flow Monitor for air seeders. It has rapidly become the top choice in North America for monitoring product flow. “Many things can go wrong while seeding. Knowing if there are any issues with delivering seed and fertilizer to the ground can prevent countless errors in the field and reduce a lot of stress during the planting season,” Heilman explained. The main technology breakthrough in this system was utilizing acoustic sensors for sensing the product flow. This allowed for the removal of all of the electronics from the sensor, which is where most of the problems occur with other systems. Heilman explained that the Intelligent Ag system works just like a doctor’s stethoscope to listen to the product flow. This has led to an incredibly reliable and easy to use system. “Having just one blockage in a season can be very costly by increasing weed pressure, impacting yield, not utilizing the land properly, etc. A Recon Wireless Blockage and Flow Monitor can help prevent or eliminate these types of issues,” Heilman stated. For air seeders, Intelligent Ag also developed a product called Engage® Zone Control, which is a retrofittable upgrade for John Deere 1910 air carts that enables section control. This product’s development was spurred as a result of air seeders in this area commonly having between 5 percent and 10 percent overlap in the field without section control. This overlap can create a ripple effect like overseeding and over fertilization of these overlapped areas. This can lead to issues with harvest, increased disease pressure, and other environmental impacts. Engage Zone Control substantially reduces overlap in the field. “Last season we closely followed 40 customers using this system. On average, they reported a savings of 7 percent on 3,600 acres of use. That means each growers’ average savings, while seeding, was over 260 acres of inputs in one season,” Heilman said. “We’re very proud our customers are seeing so much value in this system at a time when saving money makes such a difference to a grower’s operation.” Intelligent Ag also offers similar solutions for large fertilizer applicators. In the Recon line of monitoring products is a newer product named Recon SpreadSense®. This is the industry’s first blockage monitoring system, according to Hei-
lman, for pneumatic fertilizer spreaders (aka “Floaters”). Utilizing a similar acoustic sensor mounted on the boom’s deflectors, the equipment operator can be rest assured that the product is being dispensed properly. “These machines are mostly operated by cooperatives and other ag retailers, though some growers are now starting to purchase them as well, and are very highly utilized, often applying more than 20,000 acres per season,” Heilman said. By monitoring product flow, the system increases productivity in the field and substantially reduces the risk of making errors while applying fertilizer. This has a major advantage to the co-op or ag retailer but also to the producer by ensuring the right rate of fertilizer is applied to the right place in the field. “Additionally, with Engage SpreadControl, we’re now offering a new way to increase the number of sections from 2 to 4 on the popular TerraGator AirMax Precision systems,” Heilman added. This enables greater accuracy, reduced overlap, and makes better use of fertilizer. All of these benefits have an impact on the producer’s crop as well as the ag retailer’s bottom line and risk management. “Our products are excellent and provide great value, ease of use, and reliability,” Heilman said. “What makes us really stand out is our team. We have an incredibly dedicated team of people focused on making sure our equipment does what it needs to. We don’t nickel and dime a customer after a sale is made, and we stand behind our products and customers.” Intelligent Ag also has an expansive network of dealers throughout the region. Right now, there are a lot of variables in the ag world giving producers added stress and the decisions that have to be made even harder. By offering products that work to make a producer’s life easier and also potentially more profitable, Intelligent Ag is making itself a producer’s necessity. “In today’s market, I believe growers are looking for certainty. There is no time to mess around with costly mistakes,” Heilman said. “With our Recon monitoring products, growers can be rest assured that things are flowing properly and know instantly when it isn’t. Growers can also have certainty in their equipment with an upgrade that will extend its life before trading up. These are important strategies when trying to improve the operation while simultaneously managing costs.” As precision ag continues to advance, the team at Intelligent Ag intends to participate by helping to push the limits of what is possible with ag equipment. “We’re so excited to develop new technologies alongside our customers,” Heilman shared. For more information, readers can visit www.IntelligentAg.com If you’d like to stay up-to-date with Intelligent Ag , please visit their website, IntelligentAg.com and sign up for their newsletter.
Cavalier County Republican
Ag Outlook 2020
Monday, March 23, 2020 – Page 9
Page 10 – Monday, March 23, 2020
Ag Outlook 2020
Cavalier County Republican
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Page 12 – Monday, March 23, 2020
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Monday, March 23, 2020 – Page 13
21st Century farm auctions – better for the buyer or better for the seller? By Melissa Anderson Republican Editor
Auctions have a long history and have been a hallmark of the agricultural world for as long as there have been buyers and sellers. The changing landscape of agriculture extends not only to the seed that is planted and the machinery that is used but also in how auctions are conducted. The well-known Steffes Group has been in operation for over half a century, and during that time, Scott Steffes has learned quite a bit. The lesson shared is that perspective on change is continuous, and the producers of today must be looking 5 to 10 years ahead. “We are trying to change that mentality. You guys in farming operations, especially multi-generational farms, that’s important - thinking about 5 years and 10 years from now as compared to... months,” Steffes said at Lake Region Extension Roundup in January. The Steffes Group operates across the Midwest and holds auctions for just about everything from hay bales to land. The market in North Dakota is very different compared to other areas that Steffes operates in. One of the great equalizers at the auction market, however, is the internet. “The reason that farmers didn’t buy
so much at auction sales is because they didn’t know. They didn’t have any knowledge. There were two things they always said - I didn’t know what it was worth [or] I didn’t have time to go to the sale,” Steffes explained. “In today’s world. We sell machinery all over the country.” Online auctions have made the buying and selling that much easier to occur. In the ag sector, online only auctions are quickly becoming the preferred method of auctioning. Steffes shared that in his business, online auctions and sales account for 50 percent of their business. “You can pedigree your machinery, stand beside it, represent it, and have an auction sale on the internet – and farmers love it. Why? They can ask questions, they know the history, they can pull into the yard. It’s changed everything,” Steffes said. “It’s a significant difference in terms of how people are marketing and selling machinery.” Jayson Menke has a slightly different approach. Instead of auctions, he sells the majority of his listings by sealed bid. A Neche native, Menke started Acres & Shares in late 2018. A month shy of 20 years in the land brokerage business, Menke is one of the most experienced brokers in eastern North Dakota. In recent years he’s found great success with sealed bid land sales. Instead of having bidders compete in a live auction pro-
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cess, potential buyers submit their best offer in a one shot, written bid. “With the challenging farm economy driven by low commodity prices, there are fewer land buyers on the market today. Five to 10 years ago, there might have been five to 10 bidders; recent sales I’ve had in Pembina County have had three to five bidders,” Menke says. “Definitely, a sign there’s less money out there.” Good farmland continues to hold its value, while marginal farmland and tracts with drainage or water issues have seen less demand, and values for those types of parcels have dropped.
“The land market has been very resilient. Many people are surprised at how well land values have weathered the tougher farm economy,” Menke said. “Heading into winter, I thought the key was how much land would hit the market before spring. Fortunately, for land values and balance sheets, there has not been an abundance of land on the market, and for the most part there has been adequate supply. Historically, low interest rates and the low cost of borrowing money has also been a crucial factor for land buyers and helped land values.”
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Page 14 – Monday, March 23, 2020
Anitha Chirumamilla Ag & Natural Resources Agent Cavalier County Extension
Palmer amaranth continues to spread in North Dakota: As of fall 2019, palmer amaranth has been confirmed in nine North Dakota counties. They are Benson, Foster, Richland, Dickey, McIntosh, Emmons, Sioux, Morton, and Grant counties. Palmer is spreading fast and it is as close as Benson County to our county. A few of the recent findings were in millet fields of western North Dakota.
Palmer can spread in many ways: 1. Custom combines 2. Used equipment from other states
Ag Outlook 2020
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NDSU Extension Notes 3. Contaminated seed 4. Bird feed and/or bird migration 5. Water movement 6. Hay or livestock feed 7. Manure 8. Anything that moves seed What makes Palmer a ‘game changer’? • Grows aggressively- can grow 2 to 3 inches per day in optimum conditions • Can grow to 6-8 feet tall • Has reduced yield up to 91 percent in corn and 79 percent in soybean • Prolific seed producer- up to 1 million seeds per plant • Emerges throughout the growing season • Very prone to herbicide resistance (multiple modes of action) Because palmer resembles other pigweeds, it can be difficult to identify. If you suspect palmer in your field, do not pull the plant. Contact myself (NDSU Extension Agent at 701-2562560) or Josh Short (County weed officer at 701-370-8927). We will visit the field and investigate to determine what it is. To help producers, landowners and others learn more about palmer amaranth and how to spot it, NDSU Extension developed a website, https://
Forest Flying Service
www.ag.ndsu.edu/palmeramaranth, and posters.
One way to distinguish it from other pigweeds is its leaf stem, or petiole. Palmer amaranth’s petiole is as long as or longer than the leaf blade. Another clue is the female plant has spiny bracts that are bristly to the touch in the leaf axils and seed head. The seed heads can grow up to 2 feet long.
Palmer in corn field Spiny bracts in leaf axils of female palmer amaranth
Female and male palmer seed heads Palmer amaranth leaf and long petiol
cont. on page 15
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Ag Outlook 2020
NDSU Extension Notes __________________continued from Page 14 Test for clubroot spores in your fields:
Monday, March 23, 2020 – Page 15
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The good news in 2019 is that there were only four new fields that were identified in Cavalier County with clubroot disease symptoms. It might be due to wide spread adoption of clubroot resistant varieties in our county. However, the soil testing revealed that fields in counties of Pembina, Towner and Rolette were identified positive for clubroot spores. Clubroot pathogen is very specific to brassica/crucifer crops. Some of its other hosts include, radish, turnip, cabbage, cauliflower, broccoli, Brussels sprouts, kale, camelina etc. Recent updates in research suggest that practicing a minimum of two-year crop rotation and use of clubroot resistant varieties should lower the clubroot spore load in fields. However, continuous use of
resistant varieties might lead to breakdown of resistance. There is no chemical control for this disease. Prevention is the best available option for clubroot. Isolating fields/patches and not working them or working them at the end of the season followed by equipment clean up would help prevent the spread of disease spores to new fields. Controlling volunteer canola and brassica weeds help reduce the disease spore pressure too. When planting cover crops in clubroot infected fields, care should be taken not to include brassica crops in the seed mix. Research Plant Pathologist, Dr. Venkat Chapara (Langdon Research Extension Center) is interested in testing soil samples for clubroot spores. Interested farmers can contact him at 701-256-2586.
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Page 16 – Monday, March 23, 2020
Ag Outlook 2020
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Small steps for big gains - update from Langdon Research Center Naeem Kalwar Langdon Research Extension Area Specialist/Soil Health During the winter, one of my very experienced co-workers, Brad Brummond, described “Soil Health” as a journey and not a destination. That is so true as some soil properties like increasing organic matter may take several years. However, properties like soil water infiltration may significantly improve in two to threeyears depending upon tillage practices, crop rotation, plant diversity and soil chemistry just to name a few. I am not mentioning weather as we have no say over it. Since real change takes time, starting out in small steps can go a long way for gaining big! Here are some of the things that can improve soil health for the present and the future: Avoiding Unnecessary Tillage Crops and vegetation grow a network of roots during the growing-season and provide pathways for water, air and salts to move into the soil. Fall tillage closes these pathways and seals the pore space. It is like reducing the size of a big shop door into a small crack. Also, planting no-till after soybean and canola is a real possibility compared to planting after spring-wheat or corn. This may not be a purist approach, however, avoiding tillage wherever we can, will reduce the soil
disturbance. I think, that could a good start. Avoiding fall-tillage combined with volunteer growth can let soils rehabilitate a bit along with saving money for fuel and time. Adding Diversity Plant diversity adds microbial diversity. Adding plant biomass adds microbial biomass. New research suggests that adding plant diversity in shape of cover crops or intercropping increases microbial diversity and population. When new food sources are added in the form of plant biomass, the population of the opportunist type of microbe explodes. Once they die, like plant biomass, microbial biomass also become part of the soil organic matter. However, we have shortgrowing season in NE and most years, planting a cover crop mix after the first week of August would not justify the cost of planting. So letting the volunteers grow maybe a good option. If soybean is the next crop and planting-green is the strategy, cereal rye will be a good option. Adding a cover crops in the rotation as full-season crop will not only increase options but will also produce maximum biomass. However, only producers with livestock or crop farmers partnering with livestock producers can profit in the same year. Intercropping has also its benefits, however, again in a system that has crops and livestock. For crop farm-
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ers, prevent plant acres provide great opportunity for getting the maximum out of the cover crops and add diversity to the system. Adding Manure The fastest way to increase soil organic matter is to add manure to the soils. Manure will provide food for microbes, result in improved soil particle aggregation, structure, seed bed, soil water and nutrient holding capacity, water infiltration just to name few benefits. Keeping in view the declining number of livestock producers in the Cavalier County and the limited availability of manure, most soils probably have not received any application in the recent past. However, if one can get hold of manure and apply 15-20 tons per acre, that can benefits soils for years to come. If crops like potatoes are in the rotations, disease considerations should be taken into account before applying manure. Planting, Which Will Actually Grow The unproductive saline-sodic areas, especially along the headlands are not suitable for most annual crops. Keep trying to plant annual crops on these areas will not only result in loss of revenue but salinity and sodicity issues will get worse. Getting these areas sampled three to four feet deep in 12-inch increments and getting them analyzed for Electrical Conductivity (EC), Sodium Adsorption Ratio (SAR) and pH by using “Saturated Paste Extract Method” will help us determine levels of salinity and sodicity. If sodicity is established, application of soil amendments like gypsum will help remediate sodicity, improve soil particle aggregation, structure and water infiltration. Sodicity happens when soil calcium (Ca2+) levels are lower than sodium
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(Na+) levels. Amendments like gypsum will add Ca2+ to the soils to increase the levels versus Na+. Soil EC (salinity) results will help us plant something, which will actually grow. A good stand will reduce evaporation and wicking up of soil water. Less evaporation combined with increased infiltration will result in “increased leaching of excess salts and less wicking up of soil water + salts”. Perennial Salt-tolerant Grass Buffer Strip Most unproductive headlands have very high salt and sodicity levels, which may not even be suitable for the most salt-tolerant annual crops like barley, oat and sugarbeet. If soil saturated paste EC levels are 8.0 dS/m or more, planting a mix of Tall Wheatgrass, Slender Wheatgrass, Western Wheatgrass, Green Wheatgrass (AC Saltlander) and Russian Wildrye would be the best option. Seeding rate will be seven to eight pounds for all five grasses per acre. Grasses take about a year to get establish and about two years to suppress the weeds. Adding one to two pounds of alfalfa seed per acre may also produce good results in two to three years. Initially, depending upon the width of the affected area, buffer strips can be quite wide. However, after establishment, grass roots will intercept the wicking up of water from the road-side ditches and higher areas will start improving. At that time, improved areas can be planted with annual crops and buffer strip width can be reduced to 25-30 feet wide. These strips will also provide better trafficability and reduce compaction. These strips are beneficial both under wet and dry weather and can also ensure that rest of the areas remain salinity free.
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Ag Outlook 2020
Monday, March 23, 2020 – Page 17
Clubroot of Canola research updates in North Dakota Venkata Chapara Langdon Research Extension Area An ongoing clubroot survey program for over four years in various counties of North Dakota indicates a threat to the canola crop if proper attention is not given towards longer crop rotations (canola only once in 3 years) and equipment sanitation. Component 1. Visual Survey: Clubroot scouting was done visually by inspecting canola crop roots. The disease survey was conducted in northeastern Counties (Pembina, Walsh, Ramsey, Towner, Rolette and Cavalier) along with North Central and Western counties of North Dakota that are bordering Canada. County selection was based on canola acreage, bordering Canada and on the assumption of clubroot propagules movement in all directions through equipment, soil or water to neighboring counties from Cavalier County. In each county, one field in every 5,000 acres was targeted for scouting. Soil samples were collected from the positive and likely positive clubroot fields with an intent to determine how high the pH of the soil in which clubroot is present. In all, a minimum of 5-10 fields per County were targeted for scouting. The survey involved two components: 1. Visual Survey and soil sampling (In Visual survey we found 8% of
the fields infected in Cavalier county) and 2. Molecular assays for clubroot identification and resting spore quantification of clubroot pathogen proven as a fast and reliable pre-detective test for determining clubroot-resting spores from soil. With this procedure, we were was able to find clubroot resting spores in soil samples for the first time around 10% in Rolette County, 20% in Towner County and 40% in Pembina County fields. The spore count per gram of soil in this positive fields is very low, this gives grower to make decisions of integrated management practices to manage clubroot quite early than the disease strikes (when spore populations reach 80,000 resting spores/g of soil) and cause losses. Credits to Dr. Kishore Chittem at the Department of Plant Pathology who does these molecular assays to forecast clubroot occurrences in various counties. This spore estimation will help wide variety of growers and commodity groups to save US CANOLA industry from this dreadful disease. We request growers to send samples to Dr. Chapara at Langdon Research Experiment Station. You can reach Dr. Chapara on 701-566-3685. Integrated approaches to manage clubroot in North Dakota is by practicing equipment sanitation, longer crop rotations and use of clubroot resistant varieties (very few varieties available
in our state of North Dakota to manage clubroot, would suggest growers to use them judiciously by practicing longer crop rotations). Another major clubroot research accomplishment of 2019 is to find out the pathotypes of clubroot prevalent in North Dakota. Very primitive pathotypes have been found in one fourth of the samples tested this year by Dr. Strelkov, a collaborator of Dr. Chapara at University of Alberta, Edmonton, Alberta, Canada. All these pathotypes of clubroot pathogen can be easily managed by using the Clubroot resistant varieties available in ND. However, if we expose these resistant varieties very often, these clubroot pathotypes may mutate and evolve into new pathotypes where the resistance to clubroot in the canola varieties may be compromised. Acknowledgements: Many thanks to the growers and collaborators from North Dakota and Minnesota. Special thanks to the support given by all the funding agencies: Northern Canola Growers
Association, State Board of Agriculture Research and Education, ND Crop Protection Product Harmonization Board, and the Northern Canola Research Program (NIFA/USDA). Clubroot on Canola
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Ag Outlook 2020
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Better opportunities down the road, producers should just hold steady By Melissa Anderson Republican Editor
Many in the ag sector would love to have a crystal ball to predict when the markets will settle and return to a new state of normal. There have been several issues hitting the markets all at once with each one having special implications. The issue of the coronavirus (COVID-19), however, has dealt a major blow to all areas. Randy Martinson of Martinson Risk Management in Fargo offered some advice as producers look towards the 2020 growing season. “All have the coronavirus connection with each other because of the recent outbreaks and concerns, the slow down in economy and the slow down in demand that’s really been hitting the markets hard here lately,” Martinson said. At the international level, mother nature has not been kind to producers around the world. A poor wheat crop in Australia can give some opportunity to the wheat crop at the 2020 harvest. Soybeans, too, have had a tough growing season in the southern hemisphere. Brazil, which was able to plant just over 3 percent more this year than last year, also experienced some dry conditions in the northern parts of the growing area. Martinson does note that Brazil should still see a record crop, but the other major soybean grower, Argentina, has had warmer and dryer weather reducing the crop outlook.
“Brazil exports a lot of whole beans. Argentina exports a lot of meal and oil. With their potential production shortfall or production decrease, it could bring some decent demand to the U.S. for soybean oil and soybean meal,” Martinson explained. What is currently happening in the markets is the anticipation of what prices should be to meet the demand and the supply that’s out there. Martinson explained that right now the market is taking the perception that demand is going to completely disappear because of the coronavirus and the issues that we are seeing. “So the market is trying to get to a price that will increase demand because of all the issues that we are seeing and the potential for a lot more supply. Currently the market is sitting in the expectation of the event to come,” Martinson said. As time progresses, within a month to six weeks, Martinson believes that we will see what that the market will likely come roaring back because it won’t be as bad as had been anticipated. “You know, I wouldn’t get so much caught up in what the market is doing now, knowing that it’s trying to price in a very large ‘black swan’ event that we’ve never seen before,” Martinson said. Instead of monitoring the markets, Martinson advises producers to go about doing what they do best and that is to plant the crops. While paying at-
tention to the market is important, it should not be followed too closely. With a focus on spring planting and the work that entails, Martinson explained that the unknowns of the markets could continue into the fall before opportunities can begin to be seen. “It’s a hold-steady type of deal. I’m just basically telling guys don’t look at it for a while and try to get the crop in the ground when you can and worry about getting the machinery ready, then we will be looking at the markets,” Martinson shared. The trade wars and the tariffs of the past few years have resulted in three trade deals. While many are eagerly awaiting those benefits to reach them, the waiting will continue as Martinson explained the impact being made by fears of the virus. The USMCA provides easier trading between the U.S.’s two largest exporting partners, Mexico and Canada. The Phase I trade deal with China was also highly anticipated to begin having an affect on the U.S. ag sector as early as February of 2020. Those benefits, however, have been stalled due to the virus. “We will start seeing a little bit of a benefit from the Phase I deal, but it’s going to be the second half of the year and likely will impact more of our next year’s crop than this year’s crop,” Martinson said. Plans are also a big part of having a successful year - farm management planning. Creating those targets a head of time and sticking to them will assist producers in reaching the goal, according to Martinson. “Know your break even, and once you get profitability, start moving some,” Martinson said. As producers consider what to plant for the 2020 growing season, the fundamentals of the market will come into play to provide some benefit. Reviewing what Martinson shared about international growing and harvest results, there is some bright spots for producers of Cavalier County to consider as they look to get into their fields. “It’s going to be a tough four to six weeks before we start seeing this market be able to pull itself out of this,” Martinson said. Producers can expect to see a roller coaster like effect as the markets have to go too far to get prices low enough to entice the
demand back. Once this is done the markets will explode and over-exaggerate the demand. “We’re going to go too low but then again we will go too high and somewhere in the middle is where we would like to be. That will give producers a little bit of an opportunity,” Martinson said. Once the markets settle, two out of the three crops commonly grown in Cavalier County should have a good outlook on price as they head to market. Martinson explained that there are better opportunities down the road and that waiting to make moves until after planting and maybe even into fall would be better and when the opportunities may become apparent. “Wheat has got some opportunity for the coming year to grow it,” Martinson said. He explained that this stems from the domestic issues that have occurred. The biggest things are the tough overwinter that has plagued the winter wheat crop of the southern plains. There has been some improvement to that area with rain, but there is still also a lot of acres of spring wheat that was unable to be harvested last fall. Martinson shared that as a result, there are a lot of acres that will be suspect for planting this year. “I think that will lower acres a little bit and give a little incentive to this market to try and buy some acres,” Martinson said. “I do think there is some opportunity for wheat going forward.” Soybeans also has some opportunity this year as a result of the U.S. cutting potential stock down. The projection for this coming year, even with a potential 8 million increase in acres, is that stocks will still decrease for the year because of the increase in demand from China. “The soybeans, I think, we will see our exports increase as we get into the second half,” Mortenson said. For the Canola Capitol, Martinson did not have good news. In following the projections for supply and demand, the market is expected to be flat. Martinson sited issues with the Canadian crop and the demand with China will most likely keep the market flat as the year progresses. “I think wheat and soybeans have good potential for the 2020 year,” Martinson said. If you would like more information about risk management, contact Randy at 701-205-4200 or email him at randy@ martinsonag.com.
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The year of flea beetle 2019Outbreak and Challenges Lesley Lubenow Langdon Research Extension Cropping Systems Specialist The Situation In 2019, a flea beetle outbreak occurred that wreaked injury and death on the emerging canola crop. The population boom has not been observed before in anyone’s memory. Flea beetles attack canola seedlings and can kill them. Not only was the population large (6 to 10 flea beetles per seedling was observed), canola growth and development was slowed down due to moisture issues. This created a perfect storm for economic loss to canola producers. Extension Response The plan. Since 2017, Dr. Janet Knodel and I have researched the questions of “Are our current recommendations too low?” and “Are commercial seed treatments working against the crucifer and striped flea beetles?” The research plan continues in 2020. The outbreak. Flea beetles can kill canola in 24 hours during the time-sensitive spring planting season. Education via mass media was done in coordination with the Northern Canola Growers, Red River Farm Network, NDSU Crop & Pest Report and county agent local media efforts. Education focused on outbreak awareness, scouting, pesticide selection, and why is this happening. In person education. Over the cropping season, I educated farmers on when to spray, pesticide selection, and our research at LREC field day and county plots.
We reached 133 canola growers directly. Impacts Growers know that the current defoliation spray trigger is likely too high at the seedling stage. They should select higher efficacy chemicals for rescue pesticide application.
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Ag Outlook 2020
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Mapping the future of the fields with FarmQA By Melissa Anderson Republican Editor
The digital revolution has been underway for several years now. One sector that has witnessed a large surge in technological innovation is agriculture. It’s seeped its way into nearly every facet of the industry and is assisting with the continued drive towards greater efficiency. “Agriculture is in the midst of a ‘technological revolution’. The revolution will be the driving force to push efficiency in the industry. FarmQA’s focus on efficiency is to provide digital tools for the agronomist to help them to be more efficient,”Ben Munson, Senior Technology Specialist at FarmQA, Inc., explained. If agronomists were to go back in history to 1830, Munson said that they would find it took 250 labor hours to produce 100 bushels of wheat on 5 acres. After the invention of the tractor, the number of labor hours reduced to 15 hours in 1930 for the same 100 bushels of wheat. Today, that number is 30 minutes. “We are focused on improving the efficiency of the agronomist and making it
seamless for them to communicate with the grower. Because of these improvements, we believe both the agronomist and their growers will benefit from FarmQA,” Munson shared. FarmQA has built an industry leading crop scouting application with a streamlined grower portal for easy data access. This allows growers to see their fields and variety assignments on a mobile phone along with weather, sensor data, and scouting reports. In the field, an easy to use app can quickly record in field observations, drop GPS pins, and capture an unlimited number of pictures. “From the agronomist’s perspective, our scouting application is fully customized so that the observations that they collect and the reports that they send contain exactly what they want and nothing more. The reports can easily be sent to the grower directly from the agronomist’s phone,” Munson said. When time is not always on your side, having the ability to quickly collect the data needed to begin assisting a producer is crucial. By improving the workflow between the agronomist and grower through professional reporting, Munson believes that the benefits of using FarmQA are seen immediately.
“Also, the ability for growers to see field level data alongside their scouting reports will improve efficiency by having fewer places to go to access critical information,” Munson shared. Information overload can happen easily, but FarmQA has strived to get all of the critical information that is pertinent to a producer into one easy to use software solution. By doing this, Munson explained that a producer can see the information they need to make their day to day decisions without being overloaded with information and data. “The data can be trusted, as the source is either from a trusted advisor/agronomist or a sensor of the grower’s choosing,” Munson said. FarmQA is a newer product to the market but is constantly growing. They are a local independent company that prides itself on being North Dakota based. FarmQA, from its first days as a company, strived to build a product that would solve problems. Part of that problem solving ability is having the priority to listen to the needs of local producers and agronomists. “The best way we knew to do this was to sit down with people throughout North Dakota and listen to their pain
points and frustrations. We’ve done that, and the result was FarmQA, which was built on feedback from local North Dakotans,” Munson shared. Respect is one of the founding values for FarmQA which extends to those they work with, those they work for and those whose lives they endeavor to improve. This is an important piece as it means that any data collected belongs to the grower and will not be shared or sold to anyone. Secondly, their software is the most flexible scouting app on the market allowing for agronomists and growers to tweak the software, customizing it to their needs. Thirdly, Munson stated that the platform was built on the Microsoft Cloud which brings speed, usability, and unlimited scalability to the software. “Our software is affordable, and the benefits can be seen day one. The ROI comes through improved efficiency and having a clear vision of what needs to be done day to day in season when things can feel overwhelming,” Munson said. FarmQA invites anyone in the industry that is looking to provide feedback on their product or would like to partner together to build something specific to their needs to meet with them.