USDA – Farm Service Agency Update
We are just a couple weeks away from the deadline for the Coronavirus Food Assistance Program 2 (CFAP2). MN FSA has already had more than 38,000 applications resulting in more than 826 million dollars in CFAP 2 payments in MN. CFAP 2 is a direct payment program for producers that marketed agricultural commodities in 2020.
Follow the link above to apply prior to the deadline of October 12, 2021.
USDA – Farm Service Agency (651) 602-7710
US Wheat Associates, Weekly Price Report – Michael Anderson
- All wheat futures were up again this week. CBOT soft red winter (SRW) futures were up 15 cents to close at $7.23/bu. KCBT hard red winter (HRW) futures were up 6 cents to end at $7.19/bu. MGE hard red spring (HRS) futures gained 16 cents to close at $9.16/bu. CBOT corn futures were down 1 cent to $5.26/bu. CBOT soybean futures were up 1 cent to close at $12.85/bu.
Commercial Sales: View the most recent USW Commercial Sales report here.
- Net sales of 355,900 metric tons (MT) for delivery in 2021/22, were down 42% from last week’s 617,100 (MT) and on the high end of trade expectations of 250,000 MT to 600,000 MT. Year-to-date commercial sales for delivery in 2021/22 total 10.8 million metric tons (MMT), 20% lower than last year at the same time. USDA expects total 2021/22 U.S. wheat exports will reach 23.8 MMT, 12% lower than last year, if realized.
- Hot, dry conditions continued to negatively impact soil conditions in Oklahoma, Texas, Nebraska, parts of North Dakota, and Montana. There were reports of record-breaking temperatures in Nebraska and North Dakota. Rains across sections of Minnesota and North Dakota helped bring much-needed relief, but many areas in the Dakotas and Wyoming are still suffering from short moisture. The PNW received record-setting rainfall September 17-19, easing conditions in Oregon and Washington, yet soil moisture was still rated 90% very short in Washington.
Figure 2 – Sept 23rd
National Policy Update – by: Mariah Wollweber
- NAWG President Testifies at House Hearing
This morning, David Milligan, NAWG President, testified before the House Agriculture Committee discussing voluntary carbon markets. President Milligan highlighted several benefits growing wheat has on the environment, such as improving soil quality, protecting the soil from erosion, and reducing weed pressure when added to a crop rotation. President Milligan discussed the unique characteristics of wheat production and potential participation in voluntary carbon markets. Wheat production includes diverse rotations and existing conservation and crop management systems that are specific to the climate, soil, and markets. NAWG CEO, Chandler Goule, commented how pleased NAWG is to have this opportunity to share wheat’s story and expressed his appreciation to Ranking Member Thompson for his support. NAWG was the only grower representative at the hearing, making this a great opportunity to discuss the hard work the Special Climate and Sustainability Committee has been undertaking. To rewatch the live stream, click here. To view the press release, click here.
- NAWG Advocacy Campaign
NAWG’s advocacy campaign to protect family farms and farmers by working to keep programs – like stepped-up basis and 1031 like-kind exchanges – intact is still active. As the reconciliation package progresses it is important our growers continue to reach out to their Members of Congress through NAWG’s advocacy campaign as this measure goes before the full House. Now is a critical time for protecting tax law affecting farmers — click here to join us in our campaign and follow the instructions to send a message to your Member of Congress.
- Continuing Resolutions Passed by House and Senate Version Introduced
On Tuesday, the House of Representatives passed a Continuing Resolution (CR) that would extend to December 3, 2021 and included a debt suspension until December 16, 2022. It also included $10 billion in agriculture disaster assistance programs, which would continue WHIP+ for losses incurred in 2020 and 2021. The Senate Republicans also introduced a CR that was similar to the House-passed version—minus the debt suspension. The Senate bill also includes $10 billion for WHIP+. To get more information on the House CR, click here, and to get more information on the Senate CR, click here.
Industry News – Clippings from the MN Farm Bureau Impact
MDA Drought Resources
- As Minnesota farmers and ranchers continue to feel impacts from the drought, the Minnesota Department of Agriculture continues to compile resources on their website. They have recently added links to hay sales in Minnesota, North Dakota and Wisconsin.
A note from MDA about noxious weeds when grazing and haying: With the increased need for forage due to the drought in Minnesota, producers should be aware that noxious weed seeds such as Palmer amaranth can spread by contaminated equipment, forages, manure and livestock. Although it is imperative to have quality forage to sustain healthy livestock production, long-term problems can result from importing weed seeds into farming operations. We have information on how to identify Palmer and who to contact. The University of Minnesota Extension’s Palmer Prevention Webpage and their Crop News Blog also has information.
- FMC Tech Talk: Battling Glyphosate & ALS-Resistant Weeds in Wheat with a New Mode of Action
Weeds resistant to glyphosate and ALS chemistries cause significant headaches for wheat growers. Join FMC Technical Service Manager Chris Leon at the FMC Stine Research Center in Newark, Delaware. He’ll provide a research update and explain how Anthem® Flex herbicide’s unique mode of action in wheat is key in the battle against resistant Italian ryegrass, annual bluegrass, chickweed, henbit, marestail and other weeds. To watch the Tech Talk, click here.
- In addition to concerns with weed seed movement in forages, the drought and increased demand for forages has forced some producers to cut and bale vegetation from ditches, meadows and other areas that are normally not hayed. This can be a problem if scouting for undesirable species is not conducted before those areas are harvested. Harmful and poisonous plants that livestock would normally avoid are not detectable to them when baled and can cause serious problems that require veterinary interventions that can be costly. The University of Minnesota Extension has a useful webpage on plants poisonous to livestock.
Transfer Tax Could Impact a Huge Portion of U.S. Farm Production
- Potential changes to capital gains taxation at death for family farms has been a hot topic in agricultural circles over the last six months. Capital gains-related studies from EY, Texas A&M, University of Kentucky and Iowa State University released over the spring and summer illustrate the potential impacts to U.S. farmers and ranchers.
- Last week, USDA’s Economic Research Service released an analysis of the American Families Plan, which proposes to eliminate stepped-up basis for inherited assets greater than $1 million for individuals’ estates and $2 million for married couples’ estates while deferring capital gains tax liability on business assets as long as the business remains family-operated. The results echo many of the points that have been made by economists and tax professionals throughout the ongoing discussion.