February 16, 2021
MN Wheat Weekly Update
National Association of Wheat Growers (NAWG) Update
(Josh Tonsager)
House Agriculture Committee Approves Coronavirus Aid Provisions
- On February 10, 2021, the House Agriculture Committee agreed to the agriculture and nutrition provisions for the proposed Coronavirus aid package by a vote of 25 to 23. One amendment to the provisions passed. This amendment was presented by Rep. Randy Feenstra (R-IA) and added payments for 2020 crop losses due to natural disasters, including high winds or derechos, through USDA’s Wildfire and Hurricane Indemnity Program Plus (WHIP+).
February WASDE Report Released
- The U.S. Department of Agriculture (USDA) released their February 2021 World Agricultural Supply and Demand Estimates (WASDE) Report. The U.S. wheat supply and demand outlook is mostly unchanged this month, and the outlook for global wheat in 2020/2021 is for greater supplies, increased consumption, higher exports, and reduced stocks. The season-average farm price is $5.00 per bushel, an increase of $0.15. Read the full report here.
ARC, PLC Enrollment Deadline March 15th
- On February 9, 2021, the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) issued a reminder to producers about the deadline for completing enrollment for 2021 Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs on March 15th. For additional information about ARC and PLC and access to web-based decision tools, visit http://farmers.gov/arc-plc
US Wheat Associates, Weekly Price Report – Claire Hutchins
- After a volatile week, technical selling following lower corn prices pressured all wheat futures prices from last week’s close. CBOT soft red winter (SRW) futures fell 4 cents to close at $6.37/bu. KCBT hard red winter (HRW) futures lost 8 cents to end at $6.17/bu. MGE hard red spring (HRS) futures fell 10 cents to close at $6.16/bu. CBOT corn futures lost 10 cents to end at $5.39/bu. CBOT soybean futures gained 5 cents to close at $13.72/bu
Commercial Sales
- This week’s commercial sales of 591,000 MT for delivery in 2020/21 were down 5% from last week’s 643,000 MT but well above trade expectations of 200,000 MT to 450,000 MT. Year-to-date commercial sales now total 23.0 MMT, 5% ahead of last year’s pace. USDA forecasts total U.S. wheat exports will reach 26.8 MMT in 2020/21, 2% ahead of last year, if realized.
Industry Updates – MN Farm Bureau Federation IMPACT
CRP General Signup Extension
- The U.S. Department of Agriculture (USDA) is extending the Conservation Reserve Program (CRP) General Signup period, which had previously been announced as ending on February 12, 2021.
- The program, administered by USDA’s Farm Service Agency (FSA), provides annual rental payments for 10 to 15 years for land devoted to conservation purposes, as well as other types of payments.
- Before the General CRP signup period ends, producers will have the opportunity to adjust or resubmit their offers to take advantage of planned improvements to the program.
- This signup for CRP gives producers an opportunity to enroll land for the first time or re-enroll land under existing contracts that will be expiring on September 30, 2021. All interested producers, including those on Indian reservations and with trust lands, are encouraged to contact their local USDA Service Center for more information.
For more information on this announcement, click here.
March 5 Deadline to Apply for the Quality Loss Adjustment Program
- The Quality Loss Adjustment Program (QLA) aids producers who suffered eligible crop quality losses due to natural disasters occurring in calendar years 2018 and/or 2019. Both 2018 and 2019 were marked with a variety of natural disasters. This includes excess moisture, which impacted much of the Midwest and Northern Plains. FSA is accepting applications through March 5, 2021. For more information about the QLA program, visit farmers.gov/quality-loss or contact your local FSA office.
March 15 Deadline to Complete 2021 Agriculture Risk Coverage, Price Loss Coverage Programs Enrollment
- Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2021 must do so by March 15. Producers who have not yet signed a 2021 enrollment contract or who want to make an election change should contact their local USDA Farm Service Agency (FSA) office to make an appointment. Program enrollment for 2021 is required in order to participate in the programs, but elections for the 2021 crop year are optional and otherwise remain the same as elections made for 2020.
- ARC and PLC contracts can be emailed, faxed or physically signed and mailed back to FSA. Producers with level 2 authentication access can electronically sign contracts. Service Center staff can also work with producers to sign and securely transmit contracts electronically through two commercially available tools: Box and OneSpan. You can learn more about these solutions at farmers.gov/mydocs. Producers may also make arrangements to drop off signed contracts at the FSA county office. Please call ahead for local mailing or drop off information and options for submitting signed contracts electronically.
For more information on ARC and PLC including web-based decision tools, visit farmers.gov/arc-plc or the University of Minnesota’s farm bill site at extension.umn.edu/business/farm-bill
Other Items of Interest
We continue to hear from members about ways the pandemic is affecting your daily work and livelihoods. In this unprecedented and challenging time, the value of your work has never been more evident. It is with this in mind that we ask for your assistance. The University of Minnesota and University of Wisconsin-Madison, as part of a multi-regional study funded by the USDA, have created a survey to assess and quantify the impacts of the COVID-19 on the farm and food communities in our two-state region. The survey includes questions about production, income, financing, staffing, procurement, distribution and sales. The survey results will help researchers, community groups and policymakers establish a roadmap for moving forward.
The survey should take about 20 minutes and should be completed by an owner/manager who is currently in business or who had to shut their doors as a result of the pandemic. As a token of appreciation, survey participants will be able to opt into a drawing for a $200 gift certificate.
Click here to take the survey.