AgweekTV Full Show: Used machinery market, specialty crop producers, winter weather and direct marketing
AgweekTV for Dec. 11-12, 2021.
Coming up on AgweekTV we will discuss the used machinery market. We will talk about specialty crop producers rolling out a food traceability and identity preserved label. We will see if out winter weather will provide any hope for drought areas in the region. Finally, we'll discuss more farmers marketing produce direct to local grocers and restaurants.
COMING UP ON AGWEEK TV...
THE USED MACHINERY MARKET HAS BEEN RED HOT, WE'LL FIND OUT WHY.
SPECIALITY CROP PRODUCERS ROLL OUT A FOOD TRACEABILITY AND IDENTITY PRESERVED LABEL.
WILL OUR WINTER WEATHER PROVIDE ANY HOPE FOR DROUGHT AREAS IN THE REGION?
AND MORE FARMERS ARE MARKETING PRODUCE DIRECT TO LOCAL GROCERS AND RESTAURANTS.
WELCOME TO AGWEEK TV I'M MICHELLE ROOK.
WE'RE COMING TO YOU THIS WEEK FROM THE SOUTH DAKOTA SOYBEAN AG OUTLOOK MEETING IN SIOUX FALLS.
THE EPA MADE A MAJOR BIOFUELS ANNOUNCEMENT ON TUESDAY OUTLINING A PROPOSAL FOR RENEWABLE VOLUME OBLIGATIONS FOR MULTIPLE YEARS AND DENYING A SIGNIFICANT NUMBER OF SMALL REFINERY EXEMPTIONS.
THE AGENCY IS PROPOSING TO SET THE 2022 CONVENTIONAL ETHANOL LEVEL AT THE STATUATORY 15 BILLION GALLONS. HOWEVER, THE LEVEL FOR 2021 WOULD BE AT 13.3 BILLION GALLONS, 1.7 BILLION BELOW THE STATUTE.
EPA ALSO TOOK THE UNPRECEDENTED STEP OF REOPENING THE FINALIZED RFS RULE FROM 2020 TO LOWER THE CONVENTIONAL BLEND BY 2.5 BILLION GALLONS.
RON LAMBERTY WITH ACE SAYS THAT'S BAD FOR BIOFUELS PRODUCERS AND GIVES REFINERS A BREAK.
That means that some of the volume that was already purchased in 2020 and they lowered 2021 also. The stuff that's already been purchased this year won't be needed to satisfy 2020 or 2021 and they can use it to reduce how much they're going to sell next year.
THE BIODIESEL INDUSTRY WAS ALSO DISAPPOINTED.
The numbers for 2021 weren't what we hoped they would be but looking forward, they're anticipating to raised them a little bit more so that we'll be able to grow our industry.
THE EPA IS ALSO PROPOSING TO REJECT WAIVERS FROM 65 SMALL REFINERIES FROM BIOFUEL MANDATES ACROSS MULTIPLE YEARS.
They need to be denied if they follow through and do it and I think they will. We'll be happy about that.
THE INDUSTRY WILL NOW HAVE 30 DAYS TO COMMENT.
USDA'S RISK MANAGEMENT AGENCY ANNOUNCED SOME UPDATES TO CROP INSURANCE FOR THE UPCOMING SEASON.
RMA IS MAKING PERMANENT A NEW PROVISION THAT ALLOWS PRODUCERS TO HAY, GRAZE OR CHOP COVER CROPS AND STILL RECEIVE A FULL PREVENTED PLANTING PAYMENT.
\u0009THE AGENCY IS ALSO INCREASING FLEXIBILITY RELATED TO THE PREVENTED PLANTING "1 IN 4" REQUIREMENT.
RMA IS ALSO ALIGNING CROP INSURANCE DEFINITIONS WITH USDA'S NATIONAL ORGANIC PROGRAM.
SUPPLY CHAIN ISSUES CONTINUE TO SLAM AGRICULTURE INCLUDING AN UNPRECEDENTED DEMAND FOR USED FARM EQUIPMENT. INDUSTRY EXPERTS SAY THAT'S CREATING A RED HOT MARKET THEY'VE NEVER SEEN BEFORE.
NICK WEGENER WITH MICHAEL WEGENER IMPLEMENT SAYS THERE IS A MAJOR SHORTAGE OF NEW EQUIPMENT. ITS AN INDUSTRY WIDE TREND AND FOR MOST COMPANIES IF FARMERS ORDER A NEW ITEM THEY CAN EXPECT A LONG WAIT.
Nick Wegener: I don't know, you seem pretty happy if they tell you its less than a month, but most of the time its three to six months is a pretty good general window. Some of its longer depending on the components you know what it takes to put into the product.
FOR PIFER'S THAT HAS CREATED RED HOT DEMAND FOR USED EQUIPMENT AT BOTH THEIR LIVE AND ONLINE AUCTIONS. BUT THERE ARE OTHER FACTORS DRIVING THE MARKET.
Chris Blair: They want to be able to repair their own and the cost of new has increased substantially and so that's also driving the cost of new machinery.
USED EQUIPMENT INVENTORY IS ALSO GETTING TIGHT. SO MOST FARM MACHINERY, ESPECIALLY THE HIGH QUALITY ITEMS, ARE SELLING FOR RECORD BREAKING PRICES ACROSS THE COUNTRY.
It is extremely hot. We're seeing equipment selling for in many cases Michelle more money now that what it was purchased for five, six, seven and eight years ago.
SOME FARMERS ARE ALSO BUYING USED EQUIPMENT FOR PARTS SINCE THOSE HAVE BEEN EQUALLY AS DIFFICULT TO GET. UNFORTUNATELY, THIS IS A TREND THAT MAY CONTINUE WELL INTO 2022.
GOOD NEWS....UNITED STATES SOYBEAN EXPORTS HIT A NEW RECORD FOR THE 2020-21 MARKETING YEAR THAT ENDED AUGUST 31.
For the twenty-twenty one marketing year that ended August 31st, a record 28-billion dollars of soybeans were shipped across the globe.
Mac Marshall: We exported 61.7 million tons this year, which is an outstanding year actually shattered the record we had from before by I think 4 or 5-percent.
Total product exports also hit a record of 74.8 million metric tons. However, so far exports and China purchases are running behind for the current marketing year because of tight supplies and damage to export infrastructure.
Marshall: You know 60-percent of soybeans, our whole beans go out via the Gulf. So, you know having a terminal shutdown in the wake of Hurricane Ida obviously that impacted things.
Shipping IS coming back on line. So, he says even though soybean exports may be down this coming year they won't be far off the record.
Marshall: But we're catching up relative to last year and we're not too far off the five-year pace now and I expect some of that will normalize.
AFTER WIDESPREAD DROUGHT IN 2021, FARMERS ARE HOPEFUL FOR SOME WINTER MOISTURE TO SET UP A BETTER PLANTING SEASON.
EMILY BEAL CAUGHT UP WITH THE DIRECTOR OF THE NORTH DAKOTA AGRICULTURAL WEATHER NETWORK TO GET HIS TAKE ON HOW THINGS ARE SHAPING UP.
Thanks Michelle. Today I'm here with the Director of NDAWN Daryl Ritchison. So Daryl, can you tell me how the region is sitting in terms of moisture after coming off an extremely dry summer?
Daryl: In many ways, to me, it was an above average autumn. It was above average temperatures, which is good for harvest, drying things down. Yet at the same time, we had above average precipitation, especially the eastern half of North Dakota, northwestern Minnesota and some other parts of the region, really we've saturated the soil up to a point...it's not field capacity saturated...but sitting really good to start winter off, leading into what may possibly be a wetter spring.
So heading into the winter months, how is the region sitting?
Daryl: The interesting thing is, although we've really only had that one storm, and by our standards it wasn't the largest snowstorm we ever had, yet that one snowstorm contained 25 percent of our average precipitation for the winter. So that sets us up to probably not repeat what occurred to the region last winter when of course we had very little snowfall.
So as producers, livestock producers as well as row crop, kind of start thinking about the spring months ahead. Should they be concerned about the lack of precipitation in certain areas, or did those fall heavy rains really set them up nicely as we head into spring?
Daryl: I think we're set up just perfectly for the spring. If anything, with the exception of northwest North Dakota, everywhere else I think there's going to be more areas of excessive moisture problems in the spring than with lack of moisture. Whereas last spring, I don't think there was any spot that had excessive. Some areas were adequate but most areas were dry. Spring of 2022, again with that exception of northwest North Dakota, has lots of moisture in the soil. And if anything, after the winter snows, might get some delays because there's excessive moisture.
Daryl Ritchison, Director of NDAWN, thank you so much for joining me.
WHEN AGWEEKTV RETURNS...
THE SPECIALTY SOYA AND GRAINS ALLIANCE LAUNCHES A NEW PROGRAM THAT WILL HELP U.S. PRODUCERS AND EXPORTERS.
STRONG ECONOMICS AND A LATE SEASON EXPLOSION OF MOISTURE AND HEAT, RESULTED IN A GOOD YEAR FOR AMERICAN CRYSTAL SUGAR COMPANY AND ITS SHAREHOLDERS.
AT THE COMPANY'S ANNUAL BUSINESS MEETING, PRESIDENT AND CEO TOM ASTRUP SAID THE 2021 SUGARBEET CROP SURPASSED EXPECTATIONS.
IN RECENT YEARS, THE COMPANY MADE LARGE INVESTMENTS IN BEET RECEIVING AND STORAGE, BUT ASTRUP SAID SMALLER CROPS LEFT THOSE INVESTEMENTS "UNTESTED" WITH NO PAYOFF UNTIL THIS YEAR.
YIELD NUMBERS WERE 24.8 TONS PER ACRE FOR A FINAL PAYMENT OF JUST OVER 60-DOLLARS PER TON. THE TOTAL PAYMENT FORECAST OF 660 MILLION DOLLARS WAS A 16-PERCENT INCREASE FROM THE 2020 CROP.
Tom Astrup: There's some differences. We're seeing a little bit of strength in the sugar market. We're seeing considerable strength in the market for what we call our agri-products, our beet pulp and our beet molasses, which are generally feed products that are tied to the corn price.
ASTRUP SAID SOILS ARE DRY IN LARGE AREAS ACROSS THE COMPANIES FIVE DISTRICTS AND THAT'S A CONCERN FOR NEXT YEAR.
THERE'S GROWING RETAIL DEMAND FOR UNDERSTANDING HOW AND WHERE FOOD IS PRODUCED. WITH THAT IN MIND, THE SPECIALTY SOYA AND GRAINS ALLIANCE LAUNCHED A NEW PROGRAM WITH THE GOAL OF REINFORCING THE U.S. AS A RELIABLE ORIGIN FOR IDENTITY PRESERVED CROPS.
AGWEEK'S NOAH FISH HAS MORE....
NOAH: "A SIGNIFICANT ADVANCEMENT IN FOOD TRACEABILITY FOR MANUFACTURERS, PROCESSORS AND EXPORTERS OF FOOD," IS WHAT THE SPECIALTY SOYA GRAINS ALLIANCE, IS CALLING ITS NEW PROGRAM---U.S. IDENTITY PRESERVED--COMPLETE WITH A NEW WEBSITE. THE NEW LABEL SIGNIFIES A PREMIUM CROP WITH A VERIFIABLE ORIGIN.
ERIC: A NEW EFFORT...TO BETTER REPRESENT OURSELVES AND SELL OUR PRODUCTS TO THE FOREIGN MARKETPLACE BY ASSURING THE FOREIGN CUSTOMER OF THE QUALITY OF OUR PRODUCT.
NOAH: THE 2 YEAR OLD SSGA IS THE ASSOCIATION FOR THE U.S. I-P SPECIALTY GRAIN AND OILSEED INDUSTRY. CHAIRMAN, BOB SINNER, HAS BEEN INVOLVED IN THE SOY EXPORT BUSINESS FOR MORE THAN 30 YEARS.
Bob Sinner: We needed to have something that was identifiable to customers around the world, about the specialty and uniqueness of, U.S. IP.
Eric Wenberg: THE UNITED STATES PRODUCES WONDERFUL GRAINS AND OILSEEDS, BUT IN THE SPECIALTY MARKET, IN ORDER TO GUARANTEE AND SUPPORT THE PREMIUM PRICE, THE FOREIGN CUSTOMER WANTS THE ASSURANCE THAT SEGREGATION IS CERTIFIABLE.
NOAH: A LAUNCH PARTNER FOR THE U.S. I-P PLAN IS GLOBAL PROCESSING INC.
Rob Prather: Our customers are asking us to legitimize what we're shipping...Products with this brand on it will be something they can count on...the sustainability, the traceability, the cleanliness, the safetiness and the reliability of the supply.
NOAH: GROWERS PARTICIPATING IN THE U.S. I-P PLAN, LIKE RAQUEL HANSEN, HAVE TO FOLLOW STRICT RULES, FROM PRE-PLANTING TO HARVEST, THEN TO STORAGE, PROCESSING AND DISTRIBUTION.
RAQUEL: IDENTITY PRESERVATION DOESN'T MEAN IT HAS TO BE NON-GMO, BUT THAT A LARGE NUMBER OF PLAYERS IN THE BUSINESS ARE FOCUSING ON NON-GMO AND ORGANIC, AND TRYING TO FIND THAT CONSISTENT SUPPLY AND THAT DEPENDABLE DEMAND, TOO, THAT'S OUT THERE.
Bob Sinner: The producers appreciate it because they're compensated for their attention to detail that they provide to companies that are doing the exporting.
NOAH: IN MINNEAPOLIS, THIS IS NOAH FISH FOR AGWEEK.
MEMBERS AND GROWER ASSOCIATIONS FROM 8 STATES, INCLUDING NORTH DAKOTA, MINNESOTA AND IOWA, ARE SUPPORTING THIS NEW EFFORT, ALONG WITH ALL 3 NATIONAL SOYBEAN GROUPS.
TO LEARN MORE, GO TO USIDENTITYPRESERVED.ORG .
THE SOUTH DAKOTA SOYBEAN ASSOCIATION'S ANNUAL MEETING AN AG OUTLOOK SHOW RESUMED IN SIOUX FALLS THIS WEEK.
THE EVENT KICKED OFF WITH THE ASSOCIATION BUSINESS MEETING AND A AG LEADER ROUND TABLE.
SOYBEAN YIELD CONTEST WINNERS WERE RECOGNIZED AND A CROSS SECTION OF STAKEHOLDERS GATHERED FOR THE UNITING AGRICULTURE SOCIAL AND A CHANCE TO NETWORK.
We hope people will rub shoulders, have some honest conversations and be able to express what we're all dealing with and get better as the state goes on.
MORE THAN 700 FARMERS AND AGRIBUSINESS LEADERS TOOK IN THE CONFERENCE AND TRADE SHOW.
STILL AHEAD ON OUR SHOW..
AGWEEK TURNS ITS ATTENTION TO THE GROWTH OF LOCAL FOOD PRODUCTION. WE PROFILE A HYDROPONIC LETTUCE OPERATION THAT'S DOING GREAT THINGS IN JUST ITS SECOND YEAR...
WE DID GET SOME SNOW THIS WEEK IN THE FAR NORTHERN PORTION OF THE REGION, IS THERE MORE MOISTURE ON THE WAY?
HERE'S JOHN WITH OUR AGRI-WEATHER OUTLOOK.
INTERRUPTIONS IN THE SUPPLY CHAIN RESULTING FROM THE PANDEMIC RAISED CONSUMERS' AWARENESS OF LOCAL FOODS. AND NOW THERE ARE AN INCREASING NUMBER OF LOCAL FOOD PRODUCERS IN OUR REGION.
ANN BAILEY VISITED ONE FARM IN NORTHEAST NORTH DAKOTA THAT BEGAN MODESTLY AND NOW HAS BLOSSOMED INTO MUCH MORE...
IT'S OUR AGWEEK COVER STORY..
Richard: :30 I love growing things. I always wanted a farm...
ANN: RICHARD WEDEL AND HIS WIFE ARE THE OWNERS OF MANDT MARKET. THEY GROW SEVEN LETTUCE VARIETIES IN A CLIMATE CONTROLLED GREENHOUSE, ALLOWING THEM TO SELL THEIR PRODUCT YEAR ROUND.
It was something we decided to try. We visited operations out of state that did it and it looked like something that was doable.
ANN: IN FIVE YEARS, THE BUSINESS WENT FROM ROADSIDE FOOD STANDS, TO FARMERS MARKETS, TO A FULL TIME HYDROPONIC LETTUCE GROWING OPERATION.
So these rafts just float on the water like this. Just set 'em on there. And then this is living butterhead.
ANN: MANDT MARKET IS NOW PROFITABLE ENOUGH IN YEAR TWO, THAT RICHARD WAS ABLE TO QUIT HIS JOB AND GROW LETTUCE FULL TIME.
And then this is living butterhead. Wrap the root up, stick it in there. So we leave the root on. And the idea is it's still living, so when you buy it, it's fresher. And that's exactly what you see in the grocery store.
ANN: MANDT MARKET LETTUCE CAN BE FOUND IN 15 GROCERY STORES IN NORTHEAST NORTH DAKOTA AND NORTHWEST MINNESOTA.
I guess our selling point would be 'local and fresh.' We harvest it today and the next day it gets....in the grocery store.
ANN: THE PANDEMIC RAISED AWARENESS OF LOCAL FOOD PRODUCTION. THAT, ALONG WITH CONSUMERS' GROWING DESIRE FOR KNOWING WHERE THEIR FOOD COMES FROM, MEANS OPERATIONS LIKE WEDEL’S...ARE FINDING SUCCESS.
Richard: Yes, it is working financially....We're not rich yet by any means but we're just started.
ANN: IN GRAFTON, NORTH DAKOTA, THIS IS ANN BAILEY FOR AGWEEK.
MANDT MARKET ALSO SELLS LETTUCE TO SEVERAL RESTAURANTS AND HAS A CSA BUSINESS, SELLING FRUITS AND VEGETABLES DIRECTLY TO CUSTOMERS.
STILL AHEAD, AS WE WRAP UP OUR SHOW...
AN ORGANIZATION THAT PROMOTES SOY TO FIGHT WORLDWIDE HUNGER REACHES A BIG MILESTONE.
DURING THE HOLIDAYS, WE RECOGNIZE THE "WORLD INITIATIVE FOR SOY IN HUMAN HEALTH." WISHH, AS ITS KNOWN, IS AN ORGANIZATION THAT PROMOTES SOY AS A WAY TO FIGHT HUNGER ACROSS THE GLOBE.
WISHH is celebrating a 20-year milestone of developing markets for soy around the world.
David Iverson: WISHH is a great organization. They go into emerging markets that are great growth potential.
Iverson says they target areas with food insecurity and use soy products to introduce more protein into the diet.
Iverson: Providing food to people that may be malnutritioned and it could be by having a soy cow a machine that makes out of raw soybeans will make soy milk.
They also help farmers learn how to use soy in livestock, poultry, and aquaculture rations, which eventually results in increased soybean exports.
Iverson: That's the goal of WISHH is to introduce soy and to get it into a market and then as demand grows where it can become a mature market.
IVERSON DID HIS FIRST WISHH MISSION NEARLY A DECADE AGO IN CAMEROON.
STORIES YOU'LL ONLY SEE ON AGWEEK.COM AND AGWEEK MAGAZINE THIS WEEK...
WITH SUPPLY CHAIN ISSUES PUSHING COMMERCIAL FERTILIZER TO RECORD HIGH PRICES, GOOD, OLD-FASHIONED LIVESTOCK MANURE IS IN DEMAND.
AND THE U.S. HAS STRENGTHENED CROP INSURANCE FOR HEMP PRODUCERS.
THANKS FOR WATCHING THIS WEEK'S EDITION OF AG WEEK TV.
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