AgweekTV Full Show: Ad-hoc assistance, Nebraska net farm income, soil health minute and the COVID-19 vaccine

This week AgweekTV takes a look at the importance of ad-hoc assistance. Next we will find out why net farm income will be higher in Nebraska this year than in 2019. During Soil Health Minute, we find out how to assess soil health in your field. Finally, we will discuss how the COVID-19 vaccine is providing hope for rural America.

For past episodes of AgweekTV, click here.

COMING UP ON AGWEEK TV

HOW IMPORTANT HAS AD HOC ASSISTANCE BEEN FOR AGRICULTURE THE LAST FEW YEARS, AND ARE THESE PAYMENTS SUSTAINABLE IN THE FUTURE?

Michelle: We'll find out why net farm income will be higher in Nebraska this year than in 2019.

On the Soil Health Minute, we find out how to assess soil health in your field.

AND THE COVID VACCINE IS PROVIDING HOPE FOR RURAL AMERICA.

WELCOME TO AGWEEK TV, I'M MICHELLE ROOK.

THE SIGNUP FOR THE CFAP 2 PROGRAM WRAPPED UP ON DECEMBER 11TH, WITH PAYMENT TOTALS EXCEEDING CFAP ONE. AS OF DECEMBER 13TH, NEARLY $12.5 BILLION HAD GONE OUT.

IOWA CONTINUES TO LEAD THE NATION IN PAYMENTS AT $1.13 BILLION, NEBRASKA AT $823 MILLION AND MINNESOTA AT NEARLY $800 MILLION. THE DAKOTAS WEREN'T FAR BEHIND.

CORN TOPPED THE PAYMENTS AT $3.3 BILLION, WITH CATTLE AT $2.7 BILLION.

CFAP 2 TOPS THREE YEARS OF AD HOC GOVERNMENT FARM PAYMENTS INCLUDING MARKET FACILITATION AND WHIP PLUS. TOGETHER, ALL TOTAL NEARLY $52 BILLION. IT'S OUR AGWEEK COVER STORY.

FARMER JASON FRERICHS WATCHED THE INITIAL DOLLAR DROP IN SOYBEANS AS THE TRADE WAR STARTED IN 2018. SO HE WELCOMED THE MFP PAYMENTS, BUT ALSO RECEIVED CFAP AND AID TIED TO PREVENTED PLANT ACRES ON HIS FARM.

Frerichs: Those payments were obviously very important to shore up some of that lost revenue. I think many of us producers know that you know when those payments came we were gonna put them to work.

USDA OFFICIALS AND LAWMAKERS SAY THE ASSISTANCE, ESPECIALLY, COVID AID, PROVIDED A LIFELINE FOR PRODUCERS AND STAVED OFF A FARM CRISIS LIKE THE 1980'S.

Watne: We haven't had to see it because those payments made a difference so that we're able to hopefully survive through it.

Bill Northey: That changed everything. I think it solidified a land market where there was nervousness. I think, you know, dairy cow prices solidified and so, I think the CFAP program was very very important.

OTHERS SAY WHILE CRITICAL FOR YOUNG PRODUCERS, THE AD HOC PAYMENTS HAVE UNINTENDED CONSEQUENCES.

Les Shaw: It causes inflation in our industry, everything goes up. When they know you have the money and there's more of you bidding for it. It raises your overhead.

SHAW SAYS IT ALSO GIVES THE INDUSTRY A BLACK EYE WITH THE PUBLIC.

SO WHAT "IS' THE FUTURE FOR GOVERNMENT FARM PAYMENTS?

SPECULATION IS GROWING CONGRESS MAY NOT HAVE THE APPETITE TO FUND MORE AD HOC ASSISTANCE. PLUS, PUBLIC OR TAXPAYER SUPPORT IS DWINDLING.

Watne: An ad hoc disaster program never does exactly what it should do. It generally throws a lot of money at a problem. And there's not time to get it distributed properly. So there's winners and losers.

AS AG LENDERS LOOK AT 2021 FINANCIALS, THEY AREN'T PLANNING FOR MORE AID.

Tim Koch: We anticipate that we'll be back to farm program payments that are incumbent in the farm bill and the ad hoc support that we've seen the last several years will be significantly less.

AND FARMERS AND LAWMAKERS ARE HOPEFUL, WITH THE IMPROVEMENT IN GRAIN PRICES, ADDITIONAL GOVERNMENT HELP WON'T BE NEEDED.

Hoeven: We provided this help and now we're starting to see some improvement in prices and getting back to what we want, which is raising animals and growing crops for the market.

ADDITIONALLY THE COMMON REFRAINS AMONG FARMERS AND FARM GROUPS ARE THEY WANT TO GET THEIR INCOME FROM THE MARKET, NOT THE GOVERNMENT.

USDA IS PROJECTING A 43-PERCENT INCREASE IN U.S. NET FARM INCOME IN 2020 AT $120 BILLION. THAT'S COME AS A SURPRISE TO MANY AFTER ONE OF THE BIGGEST BLACK SWAN EVENTS TO EVER HIT AGRICULTURE. I TALKED TO AG BANKERS ABOUT THE OUTLOOK FOR NEBRASKA FARM INCOME.

Ag lenders in Nebraska say there was nervousness about farmers' balance sheets to start 2020, which was amplified by COVID. But things have turned around quickly.

James Friesen: The early balance sheets that we've done have been surprisingly good. I think people were very careful with where they were spending money, here at the end of the year everything's come together and we're seeing advancements in liquidity and net worth gains.

As expected, part of that was tied to ad hoc federal assistance.

Tim Koch: Whether it's, you know, paycheck protection program or CFAP 1, CFAP 2 those will just continue to accentuate what we believe will be very strong levels of farm profitability.

Friesen: When commodity prices went down yeah revenues from the stored grains were less, but CFAP seems to come in and fill that hole. CFAP 2 I believe is even slightly bigger than CFAP 1 in what we've seen.

However, higher grain prices are also part of the story with soybeans rallying $3.50 off the COVID lows and corn over a dollar.

Tim Burr: Certainly commodity prices have recovered and that's been really key for helping them have some optimism and you know there's been some folks that had really good yields.

And so for at least Nebraska grain farmers there's optimism ahead.

Friesen: So, it set people up I think really a lot better for 2021 than we expected.

Burr: Farmers are kind of well known for they'll reinvest when they get a dollar they're looking to upgrade and improve their operation and be more efficient and make things better.

And that's welcome after six years of a depressed farm economy in Nebraska and the region.

THE ONE SECTOR THAT'S STILL STRUGGLING IS LIVESTOCK, BUT THERE IS SOME OPTIMISM ABOUT 2021 DEMAND WITH THE POSITIVE COVID VACCINE NEWS.

THE FIRST COVID VACCINE WAS ADMINISTERED IN THE U.S. MONDAY, GIVING HOPE TO HEALTH CARE FACILITIES AND THE GENERAL POPULATION.

SANFORD SIOUX FALLS RECEIVED THEIR FIRST SHIPMENT AND STARTED GIVING THE VACCINE TO WORKERS. OFFICIALS ARE STILL UNSURE HOW LONG IMMUNITY WILL LAST, BUT ONCE AVAILABLE TO THE PUBLIC THEY SAY IT'S CRITICAL FOR EVERYONE TO GET THE VACCINE, INCLUDING FARMERS AND RANCHERS.

Andy Munce: COVID is a very serious disease. there's serious side effects long term. Rural folks need the vaccine just as much as folks that live in more of a city environment.

SANFORD SIOUX FALLS CEO PAUL HANSON SAYS THEIR FACILITIES IN RURAL AREAS HAVE HELPED MANAGE THE RISING CASES IN FARMING AND RURAL COMMUNITIES IN SOUTH DAKOTA.

Paul Hanson: When I look at the Sanford footprint and I see our network facilities, the smaller facilities in the smaller communities they've really stepped it up.

SANFORD OFFICIALS SAY COVID NUMBERS IN RURAL AREAS, BASED ON COMMUNITY SPREAD, HAVE BEEN VERY SIMILAR ACROSS EVERY COUNTY IN SOUTH DAKOTA.

WITH RISING U.S. COVID CASES AND STATES PUTTING RESTRICTIONS BACK IN PLACE, GAS DEMAND HAS FALLEN 15%. THIS IS NEGATIVE FOR THE ETHANOL INDUSTRY, WHICH ALREADY LOST $3.8 BILLION SINCE THE PANDEMIC STARTED.

WHILE OFFICIALS ARE CONCERNED, THEY DON'T EXPECT A COLLAPSE IN ETHANOL PRODUCTION LIKE THIS SPRING. WHEN THE NATION WAS IN LOCKDOWN GAS DEMAND DROPPED NEARLY 50-PERCENT AND ETHANOL PRODUCTION FELL SIMILARLY. IT HAS SINCE STEADILY RECOVERED.

Doug Berven: Earlier in the year we saw a 50-percent decline in our industry which, you know, it's devastating. And hopefully we certainly don't go anywhere close to that anymore. Right now we're running just under 90-percent of where we were a year ago this time.

ETHANOL PRODUCTION IS DOWN 2 BILLION GALLONS FROM MARCH TO NOVEMBER. THIS MEANS PLANTS ARE ALSO PRODUCING LESS CO2 AND DRY ICE, CRITICAL FOR TRANSPORTING COVID VACCINE.

AHEAD ON AGWEEK TV, A SOUTH DAKOTA FARMER TAKES ON A BIG NATIONAL LEADERSHIP POSITION.

WELCOME BACK. A SOUTH DAKOTA FARMER WILL LEAD THE AMERICAN SOYBEAN ASSOCIATION FOR THE NEXT YEAR.

KEVIN SCOTT WAS JUST ELECTED TO THE POSITION DURING THEIR ANNUAL MEETING. HE SAYS ASA'S GOALS INCLUDE SUPPORTING THE FARM ECONOMY, SUSTAINABILITY, TRANSPORTATION AND INFRASTRUCTURE, PROGRESS ON NEW AND EXISTING FREE TRADE AGREEMENTS AND FAVORABLE IMPLEMENTATION OF THE RENEWABLE FUELS STANDARD TO SUPPORT BIODIESEL.

Kevin Scott: We've had some issues with the RFS lately. EPA not getting out the numbers correctly or on time and then not fulfilling the demands of the volumes.

THE VALLEY SPRINGS FARMER BECOMES ONLY THE FOURTH SOUTH DAKOTAN TO SERVE AS ASA PRESIDENT.

PRESIDENT ELECT JOE BIDEN IS NOMINATING KATHERYN TAI AS U.S. TRADE REPRESENTATIVE.

SHE'S CHIEF TRADE LAWYER FOR THE HOUSE WAYS AND MEANS COMMITTEE AND HELPED NEGOTIATE STRONGER LABOR PROVISIONS IN THE USMCA. TAI HEADED CHINA TRADE ENFORCEMENT AT THE USTR OFFICE FROM 2011 TO 2014 AND LITIGATED TRADE VIOLATIONS AGAINST CHINA BEFORE THE WTO.

MINN-DAK FARMERS SUGARBEET COOP HAS SEEN A STRING OF TOUGH YEARS, BUT CO-OP OFFICIALS AND SHAREHOLDERS ARE WORKING TO GET IT BACK ON ITS FEET. THAT WAS THE MESSAGE AT THE WAHPETON-BASED CO-OP'S ANNUAL MEETING.

THE CO-OP SURVIVED THE "UGLY" 2019 CROP YEAR, MOSTLY DUE TO THE $44 MILLION OF WHIP PLUS DISASTER MONEY MINN-DAK FUNNELED TO SHAREHOLDERS.

ALTHOUGH THE 2020 CROP STARTED OUT MUCH BETTER, AND IT WAS AN EASIER HARVEST THAN 2019, YIELDS WERE DOWN FROM PROJECTIONS. IT WAS A 24-TON CROP WITH A SUGAR CONTENT JUST UNDER 17 PERCENT. THAT'S LOWER THAN THEIR EIGHT YEAR OLYMPIC AVERAGE. THE INITIAL NET BEET PAYMENT ESTIMATE IS $30 PER TON, WHICH MEMBERS HOPE WILL GO UP AS PROCESSING IS GOING WELL.

Pat Freese: GOING FORWARD WE'RE HOPING THAT THE PROCESSING WILL CONTINUE AT THE PACE THAT IT DOES, AND MAYBE BOLSTER OUR PAYMENTS AT THE END.

IN 2012 AND 2013 MINN-DAK PAYMENTS REACHED $70 TO $75 PER TON. THAT PUT SHARE PRICES TO NEARLY $6,000 PER SHARE. NOW, SHARE PRICES ARE DOWN TO ABOUT $500 PER SHARE.

STILL AHEAD ON AGWEEK TV, ARE YOUR SOIL CONSERVATION PRACTICES WORKING? WE'LL HAVE SOME TIPS ON HOW YOU CAN TELL.

AND LATER, WHY IT MATTERS WHERE YOU SPEND YOUR HOLIDAY DOLLARS.

THE MILD DECEMBER WEATHER HAS KEPT LIVESTOCK STRESS LOW AND CATTLE ARE GAINING WELL. WILL THAT CONTINUE THROUGH YEAR END?

HERE'S JOHN WITH OUR AGRI-WEATHER OUTLOOK.

THE AGWEEK SOIL HEALTH MINUTE IS SPONSORED BY THE NORTH DAKOTA CORN COUNCIL

THROUGHOUT THIS SEASON'S SOIL HEALTH MINUTE SEGMENTS, ABBEY WICK TALKS TO THE EXPERTS TO ANSWER COMMONLY ASKED QUESTIONS. THIS WEEK, IT'S "HOW DO I KNOW WHAT I'M DOING IS WORKING?"

Abbey Wick: One of the questions I've been getting lately is about how do I know soil health practices are working on my farm? And so I went to one of the experts, Dr. Caley Gasch, who's an assistant professor of soil health. So Caley, how do I know, how would a farmer know that these practices are working, or not working?

Dr. Caley Gasch: THE FIRST THING IS TO JUST KEEP EYES ON YOUR FIELD, AND GET OUT INTO THE FIELD AND BE FAMILIAR WITH WHAT YOUR SOILS LOOK LIKE AND HOW THEY FEEL. SOME OF THE THINGS THAT WE START TO SEE CHANGING IN THE FIRST FEW YEARS AFTER ADOPTING SOIL HEALTH PRACTICES IS THAT THE SOIL STRUCTURE REALLY STARTS TO DEVELOP. DEVELOPMENT OF REALLY STRONG AGGREGATES IN THE SOIL. AND THAT JUST INCREASES POROSITY AND THE ABILITY FOR THE SOIL TO DRAIN, AND SO MAYBE AFTER A RAINSTORM OR IN THE SPRING YOU MIGHT SEE THAT YOUR SOILS DRY OUT A LITTLE BIT SOONER THAN THEY USED TO BECAUSE OF THE DEVELOPMENT OF THAT STRUCTURE. AND THAT ALSO TRANSLATES INTO THE ABILITY TO FOR THE SOIL TO SUPPORT WEIGHT, AND SO ONE OF THE THINGS THAT WE SEE IN THE FIRST YEARS IS THE ABILITY OF THE SOIL TO BE EASIER TO DRIVE ACROSS WITH EQUIPMENT. WE CALL THAT TRAFFICABILITY. AND THAT'S A REALLY NICE BENEFIT THAT HAS A LOT OF OTHER EFFICIENCIES KIND OF ROLLED INTO IT.

So it's great, you can see that soil health doesn't have to be complicated to know it's working, and so keeping your eyes on the field, as Caley said, is a great way to know that these practices are a good fit.

IF PEOPLE IN RURAL AREAS WANT TO SEE LOCAL BUSINESSES SURVIVE, THEY SHOULD SPEND THEIR HOLIDAY DOLLARS THERE.

THAT'S THE WORD FROM A NEW SURVEY OF RURAL BUSINESSES, FROM THE U OF M'S REGIONAL SUSTAINABLE DEVELOPMENT PARTNERSHIPS. THEIR DIRECTOR SAYS MANY SMALL TOWN GROCERY STORES WERE ALREADY STRUGGLING BEFORE COVID, BUT ACTUALLY SAW AN INCREASE IN SALES WHEN THE PANDEMIC HIT.

STILL, KATHY DRAGER SAYS RURAL STORE OWNERS ARE INCREASINGLY CONCERNED ABOUT COMPETITION FROM NATIONAL CHAINS.

Kathy Draeger: MAKE SURE THAT YOU ARE SPENDING A PART OF YOUR FOOD OR YOUR HOLIDAY DOLLARS IN YOUR LOCAL COMMUNITY. THESE GROCERY STORES ARE A HUGE ASSET, THEY'RE THERE IN A TIME OF NEED, BUT THEY WON'T BE IF WE DON'T INVEST SOME OF OUR FOOD DOLLARS.

PERCENT OF SMALL BUSINESS OWNERS SURVEYED DON'T EXPECT TO BE IN BUSINESS IN FIVE YEARS.

STILL AHEAD ON THE SHOW,

Mikel Pates: there's something about a barn at Christmastime, and a Clearwater, Minnesota family has a special one.

AGWEEKTV SOY INSIGHT BROUGHT TO YOU BY THE NORTH DAKOTA SOYBEAN COUNCIL

IT'S ELECTION TIME FOR SOYBEAN GROWERS, AND THE NORTH DAKOTA SOYBEAN COUNCIL WOULD LIKE PRODUCERS TO CONSIDER SERVING AS A COUNTY REPRESENTATIVE AND BOARD MEMBER.

THE 2021 OPENINGS ARE IN DISTRICTS 3, 4, 6 AND 11. SOYBEAN GROWERS IN THOSE AREAS ARE ASKED TO RUN OR NOMINATE SOMEONE THEY THINK WOULD BE A GOOD VOICE FOR SOYBEANS.

ONE OF THE BOARD'S MAIN RESPONSIBILITIES IS INVESTING CHECKOFF DOLLARS.

Stephanie Sinner: PROGRAMS THAT THEY INVEST IN INCLUDE PRODUCTION RESEARCH, CONSUMER OUTREACH AND EDUCATION, PRODUCER EDUCATION, AND ALSO MARKET DEVELOPMENT, WHICH IS INTERNATIONAL AND DOMESTIC. BUILDING RELATIONSHIPS AND NETWORKING AND GETTING TO KNOW OTHER FOLKS AND BEING INVOLVED IN HELPING BUILD THE FUTURE OF THE SOYBEAN INDUSTRY.

CASS COUNTY BOARD MEMBER JOE MORKEN SAYS A BIG BENEFIT TO SERVING IS MEETING OTHER GROWERS AROUND THE STATE AND COUNTRY, AND EVEN THE WORLD.

Joe Morken: IF YOU'RE INTERESTED IN HELPING YOUR FELLOW SOYBEAN PRODUCERS AND GET IN ON THAT GROUND LEVEL, THIS IS THE BOARD FOR YOU.

WATCH FOR A GREEN ENVELOPE AND SEND YOUR NOMINATION BACK TO YOUR COUNTY AGENT BY THE DEADLINE.

FOR MORE INFORMATION CONTACT THE NORTH DAKOTA SOYBEAN COUNCIL.

IF YOU TRAVEL INTERSTATE 94 WEST OF THE TWIN CITIES, YOU MAY HAVE SEEN A BIG RED BARN, WITH A CHRISTMAS TREE SHINING THROUGH CROSS-SHAPED WINDOWS!

LARRY ANHALT ISN'T A FARMER, BUT SAYS HE'S ALWAYS WANTED A BARN, SO HE BOUGHT THIS OLD DAIRY BARN NEAR CLEARWATER, MINNESOTA ABOUT TWO YEARS AGO. ANHALT SPECULATES IT'S AT LEAST 80 YEARS OLD, BUT HADN'T BEEN USED FOR SEVERAL YEARS.

SO HE AND HIS WIFE JACKIE CLEANED IT UP, AND ARE REMODELING THE INSIDE INTO A FAMILY SPACE THAT INCLUDES A LOFT WITH A BAR AND BIG TV, AND ADDED SOME BIG WINDOWS.

THIS IS THE FIRST YEAR THEY'VE DECORATED FOR CHRISTMAS, AND PEOPLE SAY THEY LIKE IT.

Larry Anhalt: They've noticed it, and you know people just driving by. Yeah It's been a cool, it's been a neat deal.

THE ANHALTS SAY THEY'RE THINKING ABOUT TURNING THE BARN INTO A PLACE FOR WEDDINGS AND OTHER EVENTS.

THANKS FOR WATCHING THIS WEEK'S EDITION OF AGWEEK TV.

AS WE CLOSE THE SHOW, WE WANT TO SHARE SOME PHOTOS OF CHRISTMAS LIGHTS THAT VIEWERS HAVE SHARED WITH US.

REMEMBER, YOU CAN ALWAYS FOLLOW US ON AGWEEK.COM , FACEBOOK AND TWITTER. MERRY CHRISTMAS AND WE HOPE YOU HAVE A WONDERFUL WEEK.