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MN Wheat Weekly Wheatsource

MN Wheat Weekly Wheatsource

MN Wheat Weekly Update

USDA Weekly Crop Progress Report (MN) –
Click Here for Full Report

  • HRS 19% Planted; 7 days ahead of 2020; 4 days ahead of 5yr avg
  • Top Soil Moisture: 4% very short, 21% short, 65% adequate, & 10% surplus
  • Sub Soil Moisture: 5% very short, 24% short, 63% adequate, & 8% surplus

National Association of Wheat Growers (NAWG) Update
(Mariah Wollweber)

NAWG Launches Special Climate and Sustainability Committee on Earth Day

  • On Thursday, NAWG announced the launch of the new Special Climate and Sustainability Committee. The committee will work together to review wheat sustainability issues and guide the development of NAWG policy priorities on climate policy. Chairs of the committee are Justin Knopf of Kansas and Derek Jackson of Wyoming. Members of the committee are Marci Green of Washington, Ty Iverson of Idaho, Brian Brooks of Colorado, Clay Pope of Oklahoma, Eric Spates of Maryland, Aaron Heilers of Ohio, Vince Mattson of Montana and Tate Petry of Minnesota

Biden to Nominate Robert Bonnie as USDA Under Secretary

  • President Biden announced his intention to nominate Robert Bonnie for U.S. Department of Agriculture (USDA) Under Secretary for Farm Production and Conservation on Friday, April 16. Bonnie is currently the Deputy Chief of Staff and Senior Climate Advisor at USDA. Under the Obama Administration, Bonnie was the Senior Advisor for environment and climate change to Secretary Vilsack, and later, Under Secretary for Natural Resources and Environment at USDA.  

RAGT and Bayer to Develop Hybrid Wheat Seeds for European Markets

  • RAGT and Bayer have entered an exclusive collaboration to jointly develop state-of-the-art hybrid wheat varieties. The two companies, which seek to meet the evolving needs of farmers in Europe, will pool their strengths by combining Europe’s leading soft wheat genetics with access to the latest breeding methodologies, high-performing seed production systems and advanced digital solutions. Read the full article here.

USDA Announces Conservation Reserve Program Updates

  • On Wednesday, USDA announced that it will open enrollment in the Conservation Reserve Program (CRP) with higher payment rates, new incentives, and a more targeted focus on the program’s role in climate change mitigation. Additionally, announced investments in partnerships to increase climate-smart agriculture, including $330 million in 85 Regional Conservation Partnership Program (RCPP) projects and $25 million for On-Farm Conservation Innovation Trials. USDA’s goal is to enroll up to 4 million new acres in CRP. Read the press release here

US Wheat Associates, Weekly Price Report – Michael Anderson

  • All wheat futures prices were up for a third week in a row. CBOT soft red winter (SRW) futures rose 58 cents to close at $7.10/bu. KCBT hard red winter (HRW) futures were up 64 cents to end at $6.73/bu. MGE hard red spring (HRS) futures gained 54 cents to close at $7.18/bu. CBOT corn futures jumped 97 cents to end at $6.55/bu. CBOT soybean futures gained $1.06 to close at $15.39/bu  
  • Commercial Sales: This week’s U.S. 2020/21 wheat commercial sales of 240,200 metric tons (MT) were up substantially from last week’s 56,600 MT but below trade expectations of 250,000 MT to 550,000 MT. Year-to-date commercial sales for delivery in 2020/21 total 25.4 million metric tons (MMT), even with last year. USDA expects total 2020/21 U.S. wheat exports will reach 26.8 MMT, 2% higher than last year, if realized.

U.S. Drought Monitor

A cold front brought snow to Kansas this week while bringing rainfall to parts of Oklahoma and northern Texas. Even with the rain, the USDA reports 60% of Texas and 26% of Oklahoma’s topsoil moisture short or very short. The Plains states were cooler with areas of snow, but precipitation was still below normal in much of the Dakota’s and Montana. According to the USDA, 65% of Oregon and 60% of Washington are short or very short of topsoil moisture

Industry Updates – MN Farm Bureau Federation IMPACT

Study Shows Repealing Stepped-Up Basis Would Damage the Economy

  • A new report released Tuesday by EY finds that repealing the step-up in basis tax provision would damage the gross domestic product and significantly decrease job creation. The study was conducted for the Family Business Estate Tax Coalition, which includes almost 60 organizations representing family-owned businesses, including AFBF. 
  • The EY study found middle-class, family-owned businesses would be particularly hard hit by the repeal. Currently, when someone inherits assets, they aren’t taxed on the appreciation that happened before they inherited them. If family-owned farms, small businesses or manufacturers are forced to pay capital gains accrued by the prior owner, they would likely face large tax bills that put the future of their business at risk.   
  • Make sure you have reached out to your members of Congress to ask for their continuation of stepped-up basis which supports America’s farmers and ranchers. You can use the MFBF Action Alert Center to send a message directly to your elected officials on the issue using the button below.

State Session Overview 

  • ‘Tis the season for marathon floor sessions full of amendments, parliamentary inquiries and of course lots of debate. Both bodies of Minnesota’s legislative branch, the only divided legislature in the country, continue to work towards the passage of a balanced state budget before the current fiscal year ends on June 30, 2021.
  • The Minnesota House of Representatives took up multiple omnibus packages on the floor for debate including the agriculture and environment packages, S.F. 958 and S.F. 959 respectively. 
  • As the weeks left in the regular session wind down, it remains to be seen how the DFL and Republican caucuses will find common ground with a nearly $600 million difference in budget targets and the added impacts of recent local events.

Agriculture Omnibus Proposals Head to Conference Committee

  • The Minnesota House of Representatives took up S.F. 958, the omnibus agriculture package which was passed by the Republican-led Senate last week. The chair of the House Agriculture and Food Committee, Representative Sundin (DFL-Esko), amended the bill to reflect the agriculture priorities favored by the DFL-led House and the legislation was debated on the floor by the full body.
  • After debate, the House package passed on by a vote of 69-63. The next step for the legislation is conference committee, made up of Senators and Representatives from both sides of the aisle, to work through the differences between the bills.
  • MFBF continues to work closely with lawmakers and legislative staff as the omnibus packages move through the legislative process. 

Environment Omnibus Package Clear the House

  • Late yesterday evening, on Earth Day, the Minnesota House of Representatives passed the omnibus environment bill off the floor on a party-line vote of 70-63. 
  •  There was extensive debate on issues that directly impact agriculture including the importance of wolf management and funding for Soil and Water Conservation districts (SWCDs).
  • MFBF has concerns with provisions contained in the House language which were communicated during the committee process. We look forward to working closely with conferees to address aspects of the bill language to better reflect Farm Bureau policy. 

Tax Bill Moves through the House 

  • The Minnesota House of Representatives debated and passed their omnibus tax bill which will now head to the Senate. H.F. 991, sponsored by Rep. Paul Marquart (DFL-Dilworth), passed by a vote of 68-66. 
  • With the help of several changes to state tax code, it’s projected the bill’s provisions would raise $49.1 billion in revenue for the 2022-23 biennium. It would also provide $4.2 billion in tax refunds, aids and credits for the biennium, leaving $1.74 billion in the state’s budget reserve account and $100 million in the stadium reserve account.
  •  Included in the House bill is federal conformity to the taxability of forgiven PPP loans. Loans below $350,000 would not be considered taxable income under the House language. The Minnesota Senate passed full federal conformity on this topic earlier in session.
  •  The Senate will be taking up their tax omnibus bill which passed out of the Senate Tax Committee today before the bills head to conference committee for negotiations.

Navigable Waters Protection Rule

  • Members of Congress have introduced a resolution to uphold the Navigable Waters Protection Rule (NWPR). This resolution would express the sense of the House that clean water is a national priority and that the April 21st, 2020, NWPR should not be withdrawn or vacated.
  • Members of Congress from Minnesota that have co-sponsored the resolution include Reps. Hagedorn (R-CD1), Emmer (R-CD6), Fischbach (R-CD7) and Stauber (R-CD8)
  • The 2015 Waters of the United States (WOTUS) Rule significantly expanded the definition of WOTUS and gave the federal government authority to regulate almost any waters; including streams, ditches, ponds, and creeks. The NWPR revised the definition of WOTUS and reversed this overreach, bringing back a balance between federal and state jurisdiction under the Clean Water Act.
  • Farm Bureau applauds the members of Congress for introducing the resolution “to support the Navigable Waters Protection Rule (NWPR), which provides a balanced approach to protecting our nation’s waterways and wetlands while providing much-needed clarity and consistency for farmers, ranchers and regulators,” said Zippy Duvall, President of the American Farm Bureau Federation. 
  • “We look forward to working with Congress and the Biden Administration to bring an end to persistent efforts to expand federal power. The NWPR marks a return to respecting states’ traditional authority over land and water resources and avoids the sorts of difficult statutory and constitutional questions raised by prior definitions of Waters of the U.S. It is time to resolve the decades of uncertainty over Clean Water Act jurisdiction and prioritizes both clean water and clear rules today!