September/October 2019 Union Farmer by South Dakota Farmers Union

Volume CIV, No. 6 Huron, SD SEPT/OCT 2019

A PUBLICATION OF SOUTH DAKOTA FARMERS UNION

SERVING SOUTH DAKOTA’S FARM & RANCH FAMILIES SINCE 1915.

Meet the Candidates

PAGE 4

South Dakota State Fair

PAGE 17

Farm Safety PAGE 25

PAGE 27

Celebrating Firesteel Ranch, the Burg Farm Family of Wessington Springs

NFU Fly-In

Calling for Transparency

rom the Trade War and EPA hardship waivers to truth in labeling and farmer suicides, S.D. Farmers Union (SDFU) members shared how decisions made in D.C. impact family farmers and ranchers in South Dakota during the 2019 National Farmers Union D.C. Fly-In, held Sept. 9-11.

Fly-In Continued on Page 8

2019 State Convention Save the Date

DEC. 10-11, 2019

Aberdeen, S.D. Ramkota Convention Center

South Dakota Farmers Union has served South Dakota farm and ranch families for more than a century. Throughout the year, we share their stories in order to highlight the families who make up our state’s No. 1 industry and help feed the world. This month we highlight the Burg farm family of Firesteel Ranch near Wessington Springs. Pictured here (left to right): Quinten, Cory, Jeff and Jim Burg.

eing good neighbors is a way of life for brothers Jeff, 51, and Cory, 50, Burg. The fourth-generation Wessington Springs farmers collaborated with neighboring farmers to build a weigh station so they could purchase high moisture corn direct from other area farmers for cattle feed. Together, these same neighbors purchase and share a silage cutter, sprayers and other farm equipment. “We get along with all our neighbors. And because most of us have similar farming operations, there’s good synergy in working together,” Jeff explains. “We can’t justify owning this equipment on our own, but together we are able to spread out the cost and appreciate using newer equipment.” For the Burg family, being good neighbors extends to how they treat the land and its resources. Since 1995, when they expanded their cattle feedlot operation, they implemented a confined animal feeding operation nutrient management system which captures all manure and feedyard runoff in a lagoon to be applied to crop acres throughout the season.

Burg Family Continued on Page 2

Union Farmer

“Finishing cattle allows us to sell our crops at retail prices instead of wholesale. And, it went hand-in-hand with the hay business we were already involved in.” – Jeff Burg

Burg Family

Continued from Page 1

Going beyond what is required by state law, the Burgs took their conservation efforts to the next level, uniting with other landowners in restoration efforts along the Firesteel Creek watershed. They converted cropland along the watershed back to native grasses and put up fences to keep cattle out of the riparian area. These efforts reduce Brothers, Cory and Jeff, are the fourth generation to farm in Jerauld County.

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field runoff from reaching the creek, which flows into Lake Mitchell. “Farmers are the best stewards of our nation’s resources, if we won’t be good stewards, who will?” Cory explains. “It’s always been our goal to leave things better than when we got it,” Jeff adds. The brothers continue the land management efforts of their dad, Jim, and uncle, Quinten. Jim and Quinten began planting trees and implementing no-till farming practices more than 40 years ago. “Conservation efforts, like no-till and crop rotation, build soil health for the next generation,” explains Jim. Along with resource preservation, the brothers began developing a farm transition plan early in their career. It has always been their focus to see the farm their grandpa purchased in 1907 remain in the Burg family. The Burgs have farmed in Jerauld County since 1883, when Jim’s great-grandpa, Andrew, homesteaded only two to three miles from where Firesteel Ranch is today. Turns out keeping the farm has been a unique challenge for each generation of Burg farmers. Like many South Dakota farm families, the Burgs nearly lost their farm during the Depression. In 1933 Jim and Quinten’s grandpa, Chris, lost the farm to the county when he couldn’t pay taxes because the bank closed and he wasn’t able to access

the money in his account. To make matters worse, he and a few other successful farmers in the area had cosigned a loan so Lane Consolidated school district could build a new school. When the school district didn’t pay on the loan, the bank went to the farmers who signed the note. In a strange turn of events, “the family never moved off the farm and kept farming the land until Dad bought it back from the county in 1943,” Jim recalls. “There was sort of an unwritten agreement, that if you were trying to buy your own place back, no neighbor would bid against you. I’m always impressed by the tenacity and determination

Burg Family

D D

Continued on Page 14

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Union Farmer Recognizing 2019 Cooperative Hall of Fame Inductees

DON SNYDERS, ALLIANCE COMMUNICATIONS

MIKE NICKOLAS, AGTEGRA COOPERATIVE

RAY SCHERSCHLIGT, ALPENA CO-OP OIL AND SANTEL COMMUNICATIONS

During his tenure as manager of Don Alliance Communications in Garretson, S.D., Snyders was at the helm when the cooperative was formed through the merger between Splitrock Telecom and Baltic Telecom in 2003. By the time of his retirement in 2015, the co-op had 11,600 customers and served 19 communities. He also oversaw a nineyear $66 million project to bring fiber-optic connectivity to every customer in its market. His 36 years at Alliance saw him not only serve on the South Dakota. Telecommunications Association board of directors, but also on the SDN board of directors. Just prior to Snyders’ retirement, officials from Rock County, Minn., approached him about expanding Alliance’s fiber-optic network into underserved areas of their county. He saw an intriguing opportunity to broaden and diversify the customer base. The project became a reality after Snyders and staff pursued a $5 million grant from the State of Minnesota and $1 million from Rock County. Today, Alliance and its cooperative customers benefit from a new, stable revenue stream from 1,000 additional customers in an area with relatively little competition from other wireline or wireless providers. Snyders never lost sight of Alliance’s true purpose: providing reliable services to customers at a fair price. Thanks to his leadership, the cooperative principles were deeply ingrained throughout Alliance’s company culture. He made sure employees knew the importance of adhering to those principles. ■

Bowdle native Mike Nickolas was a leader in two of the nation’s largest cooperatives. Nickolas began his grain marketing career at South Dakota Wheat Growers Association (SDWG), now Agtegra Cooperative, in 1981. In 1998, he joined North Central Farmers Elevator (NCFE) as grain division manager before becoming that co-op’s general manager in 2012. When SDWG and NCFE merged to become Agtegra, he became the new co-op’s executive vice president/COO of Grain, retiring in January 2019. As general manager of NCFE and EVP COO Grain of Agtegra, he had the vision to always pursue the next step to maintain the relevance of the cooperative system in South Dakota, which was through his leadership in investment of the cooperative’s resources for its members. He also had the foresight to see the need for a unification of NCFE with SDWG, which was approved by the members. Nickolas is a native South Dakotan, born and raised near Bowdle and spent his entire career in the cooperative system. The son of an elevator manager in Lebanon and Bowdle, he began his cooperative career while attending college at Northern State University and working for SDWG as general labor at a grain terminal and then on to grain marketing after graduating from NSU before becoming NCFE’s Grain Manager and General Manager. ■

At Alpena Co-op Oil Company, Ray Scherschligt was the general manager of the ag and fuel cooperative from 1958 to 1989, instilling and supporting a community and cooperative philosophy. One nominator wrote, “Ray worked tirelessly to lead his employees by example. He worked six days per week doing the bookwork, fixing tires, hauling fuel and fertilizer, pumping gas... whatever needed done. No job was too menial for the manager to do.” He also served on the Santel Communications Cooperative board of directors from 1973 to 2002, including as board secretary. His leadership on the Santel board of directors led the cooperative through expansion of patron membership, offered services and astute financial planning. This leadership allowed the co-op to provide the right services, at the right time, for the cooperative to play a key role in creating and fulfilling demand to advanced technology and connectivity. “Ray Scherschligt of Alpena has a lifetime of cooperative experience and wisdom that fostered the growth of not one, but two, area cooperatives. His work ethic and steady, longterm thinking leadership style has benefited thousands of patrons in our region,” wrote one of Scherschligt’s nominators. ■

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Randy Knecht recently retired from the CHS Board, leaving an open seat. Turn the page to meet the candidates.

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Union Farmer Meet the CHS Board Candidates Tammy Basel is a third-generation, western South Dakota sheep and cattle producer.

Why do you want to serve on the CHS board of directors? I want to serve to protect equity, pay patronage, make a profit and retain and recruit great employees. Also, it is my desire to make a positive difference – this is something I believe I can do. As a board member it will be important to remember who owns CHS Inc. It is the people in the countryside doing the real work: producing food, fiber and energy. Production agriculture and the cooperative system need a strong agriculture advocate inside and outside the boardroom. On average, a CHS Inc. director travels about 80 days each year. Traveling opens up many opportunities to advocate for agriculture: in the halls of Congress, visiting with the person next to me while I’m waiting in the line, a seatmate on the airplane – know that I am always looking for the opportunity to advocate on members’ behalf. Advocating for agriculture is a skill which I have worked long and hard to develop. What is your position on EPA granting small refinery exemptions or hardship waivers, allowing them to avoid blending biofuels, like ethanol? And are you in favor of CHS applying for or receiving these waivers? What EPA is doing is wrong. The Renewable Fuel Standard (RFS) is the law of the land; it has bipartisan support of Congress and the states. The Small Refinery Exemptions (SRE), are bypassing the intent of law. EPA pro-

Hal Clemensen has farmed for more than 35 years on his family’s farm halfway between Brentford and Conde. He raises corn and soybeans. Why do you want to serve on the CHS board of directors? I want to be a conduit and help improve communications between regional and local cooperatives. I grew up in a family who supported cooperatives. My dad was on the Wheat Growers’ board. I saw the interaction between Wheat Growers and Farmland, it was a symbiotic relationship where both companies benefited and I think we need to get back to that relationship between local co-ops and CHS. I believe there are some South Dakota co-op board members who don’t feel they are being listened to, and I believe there is a way to improve that communication with CHS. I’ve gained experience throughout my 30 years serving on cooperative boards, and believe I can be an effective part of the solution. I first served on the board for Redfield CENEX and then served 23 years on the Wheat Growers, now Agtegra, board of directors. I’ve spent the last 15 years as the board president. What is your position on EPA granting small refinery exemptions or hardship waivers, allowing them to avoid blending biofuels, like ethanol? And are you in favor of CHS applying for or receiving these waivers? CHS is a big company and initially, I thought they should not ask for small refinery exemptions. But then I dug into it a bit further and this is what I learned: They did request and receive a waiver for their Laurel, Mont.,

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posed the 2019 Renewable Volume Obligation (RVO) on target of the statutory level set by Congress. The SRE will bring into question if the 2019 target of 19.88 billion gallons of biofuels will get blended. RFS has many benefits. One of them being clean air. Have you ever heard of someone getting lung cancer yet never smoked a cigarette in his or her life? When oil is made into gasoline, it does not have enough octane to make our cars run properly. So, chemical octane lifters like Benzene are added. Benzene is a known carcinogen. Instead of a carcinogen, higher blends of ethanol can also be added to increase octane levels. Tail pipe emissions do have consequences. Again, have you ever heard of someone who had lung cancer and never smoked? And then there are other diseases like asthma or autism that are also linked to the aromatics, like Benzene. National security is something that is not discussed as much as it should be. Many people reading this will remember long lines at the gas station, or at least know that it happened. Wars have started over oil. Sure, we have more fuel-efficient cars, and oil fracking has brought more domestic oil supply, but we cannot forget our past. Energy independence is part of national security and biofuels play an important role, in that security. Farmers Union understands that some local cooperatives are frustrated with regional cooperatives competing with local cooperatives. What are some ideas you have to build better relationships? CHS CEO Jay Debertain, in essence, said during a meeting: the days of building assets in direct competition to member cooperatives were wrong, and should have not happened, and it will be a thing of the past. As a board member, I will hold his feet to the fire on this. Some ideas on building better relationships are:

Basel

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plant. This is in a region of CHS where members don’t grow corn. By accepting the waiver, CHS was able to save a considerable amount to pass along to all member-owners. In the meantime, CHS also supports ethanol, producing 200 million gallons of ethanol and serving as a No. 1 proponent of blender pumps at their 1,400 affiliated gas stations. CHS is also blending ethanol at one of their highest levels ever. CHS has a responsibility to serve all members, and make decisions based on 100 percent of their members, not just members who raise corn. So, I support their decision. Farmers Union understands that some local cooperatives are frustrated with regional cooperatives competing with local cooperatives. What are some ideas you have to build better relationships? Collaborate, cooperate and communicate – these are what need to be improved upon for CHS to be better from a local and regional point of view. To me, it all comes down to how the cooperative works for its memberowners. It’s not about what is best for CHS, it is about what is best for the local producers. Again, communication between regional cooperatives and local cooperatives throughout South Dakota needs to improve. CHS can improve its relationship with farmer members by doing more business with local partners, which in turn encourages local co-ops to do more business with CHS. This is how the whole cooperative system wins. It’s up to the board to make sure that if something is said by CHS management, it is followed through on. This is what I believe is the definition of integrity. If a cooperative says they will do something, they need to do it. Do you feel CHS is treating all cooperatives equally when it comes to assets like agronomy, agronomists, fuel and finances? Each cooperative has different needs and wants different things. My

Clemensen

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Union Farmer Jason Frerichs is a fourth-generation Wilmot farmer who raises corn, soybeans, small grains, alfalfa and operates a cow/calf cattle operation. Why do you want to serve on the CHS board of directors? I see serving on the CHS board of directors as an amazing opportunity to continue serving South Dakota agriculture. I am a fourth-generation farmer and cooperative member who wants to work with others to bring the pulse of South Dakota farmers to the CHS board room and headquarters. Today, I am a full-time farmer/rancher, but I have also worked serving South Dakotans as a Lake Area Technical Institute Agriculture Instructor and District 1 state legislator. Currently I serve as the Roberts County Farmers Union Education Director. I have been fortunate to serve South Dakota’s agriculture producers, really since I became actively involved in FFA as a high school student and then as the 2004-2005 State FFA Vice President. I served 10 years in the South Dakota Legislature, representing Roberts, Day, Marshall and northern Brown Counties. When I worked in the Legislature, I worked with other legislators who shared my passion for agriculture, to make sure South Dakota agriculture was front and center. Throughout these service experiences, I have always enjoyed working with others to get things done. As a legislator, I was actively involved in identifying state funding for two projects that are currently underway at our state’s land-grant and my alma mater, South Dakota State University: the renovation and expansion of the Animal Disease Research & Diagnostic Laboratory (ADRDL) project and the new precision agriculture building at

Mike Miller is a cow/calf producer who farms near Freeman, he also raises corn and soybeans. Why do you want to serve on the CHS board of directors? Serving on the board of CHS is something I have been thinking about for a long time. I love being involved in production agriculture, and I believe that the co-op system is vital to the survival of family farms. Farmers need to have ownership in our markets for both buying our inputs and selling our products. The cooperative system gives us this ability, and that makes our system important to the success of family farms. Being involved on our local co-op board has been one of the greatest experiences of my life. I believe that I have the experience, knowledge and understanding of our business to be an asset on the CHS board representing Region Four. For more than 17 years I have served on the board of Country Pride Cooperative. I also serve on the board of the South Dakota Cooperative Association. I have thoroughly enjoyed my time being involved in the co-op system, and I am looking forward to this next step of involvement in our cooperative system. What is your position on EPA granting small refinery exemptions or hardship waivers, allowing them to avoid blending biofuels, like ethanol? And are you in favor of CHS applying for or receiving these waivers? It has been proven time and time again that ethanol is good for the environment, the farm economy and the American economy. Granting these waivers is a slap in the face of the environment and the farm economy. The Renewable Fuel Standard was, and still is, supported by

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SDSU. I am a communicator. I thrive on building coalitions and relationships. And, I am not afraid to be in those discussions that can get a little heated. That is the nature of our work in agriculture. I will not shy away from difficult discussions in the CHS boardroom. What is your position on EPA granting small refinery exemptions or hardship waivers, allowing them to avoid blending biofuels, like ethanol? And are you in favor of CHS applying for or receiving these waivers? I am extremely disappointed in this bureaucratic decision on the federal level. Obviously, it is a blatant attack on our Renewable Fuel Standard, which came about because of the bipartisan efforts of former Senators Richard Lugar-Indiana and South Dakota’s own Tom Daschle. It was truly a grassroots’ effort that came from the Heartland. To all of the sudden have this arbitrary ruling, with really no basis, is very troubling for all of us as corn producers and our rural economy. I am not in favor of CHS applying for or receiving these waivers. Let’s see if CHS can be a leader on resolving this small refinery exemption issue. We know that CHS has significant refining facilities along with owning at least two ethanol plants which would enable CHS to have skin in the game on both sides. From a financial standpoint, CHS must determine the best path forward on this issue while keeping in mind the original and current member/owners of CHS who are farmers. Farmers Union understands that some local cooperatives are frustrated with regional cooperatives competing with local cooperatives. What are some ideas you have to build better relationships? It comes back to respect. Obviously, each of our cooperatives are formed as a business with the members front and center.

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sound scientific findings, and was passed into law because it makes sense. Granting these waivers is just a way for government to run around a law that it does not have the support to change. This is just plain wrong. And this is the reason I am opposed to these waivers. CHS has been saying for years that they do well when their owners, the American farmers and ranchers, do well. Well, the American farmer does well when ethanol production is up. Ethanol production is vital to farm economics. We need that corn grind to at least maintain its current 100 percent production capacity for demand to stay at a minimum usage. Growing demand by increasing production would be even better. CHS should be a champion of ethanol, for in their own words, “they do well when the American farmer does well.” Applying for these waivers does not help the ethanol and agriculture industries. Farmers Union understands that some local cooperatives are frustrated with regional cooperatives competing with local cooperatives. What are some ideas you have to build better relationships? There have been too many times in our system’s history where co-ops have fought with other co-ops, and not worked with others. Going forward, it will become more important for our co-ops, both locals and regionals, to work together. My local co-op didn’t have rail access, so we sought out deals with other locals where we could rent space in their rail facilities. We also tried to partner up with others to operate a bulk oil truck. Partnering together to build assets is one way to get our co-ops to work together, and also helps cut cost in our system by better rationalizing assets. Our co-ops were started by people who believed that together we can do more than we can separately. This should be the greatest strength of all our local and regional co-ops. Working together is what makes us stronger into

Miller

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Union Farmer Cooperative Highlight:

s one of the largest ethanol cooperatives in the nation, Glacial Lakes Energy (GLE) is a firm believer in the cooperative business model. “When we consider the original purpose of our cooperative, GLE was definitely based upon the principles of democracy – local producer control with one member, one vote,” explains Jim Seurer, CEO of Glacial Lakes Energy, an ethanol cooperative with plants in Watertown and Mina, and soon to be Aberdeen and Huron. Working for GLE since 2007, Seurer has always enjoyed working in the ethanol industry because of the value-added nature of the product. “Ethanol provides the opportunity to take a product we grow locally, and increase its value, and sell it to the masses, enhancing the earning power

of our state’s farmers and the members of this cooperative.” E30 Challenge For those who use Premium E30 on a regular basis, it’s “old news” that a flex-fuel vehicle is not necessary to use higher blends of ethanol. Not only are high blends a good way to boost more corn usage (and firm prices), but blending greater percentages of ethanol with gasoline boosts octane levels, eliminating the need for toxic cancercausing additives, and produces a cleaner burning renewable fuel. To reach the general public and motivate drivers to try Premium E30, GLE launched the E30 Challenge in 2016. In return for every gallon sold, GLE donated 30 cents per gallon to the local Boys and Girls Club, up to $50,000. At the same time, GLE launched an educational program targeting area auto mechanics and shared testimonials from drivers who tried Premium E30. Today, consumption of E30 is up by 500-600 percent in northeast South Dakota. “Ultimately we want to change consumer preference and behavior. We want folks to be comfortable, filing up whatever vehicle they prefer with Premium E30 and driving away not even thinking about it,” explains Seurer, who hopes other

Midwestern communities will duplicate the challenge and see the positive results for themselves. Waivers Advocating for higher ethanol blends reached a fever pitch for GLE this summer after the EPA granted an additional 31 waivers to Big Oil – including Exxon Mobil and Chevron – causing the value of ethanol to plummet. EPA refinery waivers increased exponentially in the past two years and represent more than 4 billion gallons since the Renewable Fuel Standard was passed into law. The 31 waivers granted in August brought the total number of waivers granted since 2016 to 85. At least, 13 ethanol plants have shut down across the country. Although times aren’t easy in the ethanol industry, Seurer says he remains optimistic for ethanol’s future. “I don’t know how long this rough period will last, but it will end. Things will get better – either we’ll see an agreement on the trade war or the oil industry will be held accountable to blend the volume of ethanol gallons required by the RFS – something will happen. There will be better times ahead,” says Seurer, acknowledging that like the farmermembers of GLE, he remains an eternal optimist. ■

CHS Board Candidates Continued from Pages 4 & 5 Basel

Continued

• Bring cooperative leadership conferences back to the state. Good things happened when directors, managers and staff of the federated cooperatives in the CHS Inc. system sit at the table together. • Better communication builds trust. As a CHS Inc. director, I would strive to visit or call on the member-cooperatives in the state. When I am sitting in the boardroom, I will think about how the decisions made around that table, can have unintended consequences. The better I know the members that I represent, the better equipped I can be to ensure decisions made do not have a negative impact on South Dakota’s CHS cooperatives. • More ethanol promotion to soccer moms and other consumers.

Clean air is important to us all. There is a real need for the consumer to have access to higher blends like E30. • More cooperative education and promotion across the board, CHS Inc. is a cooperative and many people do not understand what a cooperative is. Do you feel CHS is treating all cooperatives equally when it comes to assets like agronomy, agronomists, fuel and finances? Sometimes equal is not fair. The needs of a member-cooperative in McLaughlin are different than the needs of a member cooperative near Brandon. That is when fairness kicks in. Every individual member, independent member cooperative or the country operation model, should, and need to be, treated fairly with respect and dignity. ■

Clemensen Continued thought is, CHS sometimes tries to be a local, when in my opinion, they need to focus on the role of a regional cooperative. Support the local cooperatives in their independence. Help provide us with resources that are difficult for a local co-op to provide. For example, have safety training for employees or precision agriculture training and technical resources for local co-op employees. As a regional cooperative, CHS can do things a local cooperative cannot. For example, lobby on our behalf in D.C. If farmer-members don’t have a presence in D.C. we won’t get our opinions heard.

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As a local cooperative board member, I can meet with my representatives in D.C., but Senator Thune, Senator Rounds and Representative Johnson are on the same page as us. It’s the Congressional leaders from California, Chicago and New York we need to be able to visit with. This is one area I would like to see CHS expanding its role. Speaking from a local cooperative perspective, local co-ops need CHS to focus on their role as a regional cooperative. All local co-op’s face plenty of competition from private companies and we need regional support. The cooperative system needs to work better together. ■

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Union Farmer Members are Focus of 17 Years of Service to CHS

embers are forefront on Randy Knecht’s mind when he reflects on his 17 years of service as a CHS board member, representing South Dakota cooperative members. “Cooperative owners are always on my mind. Every decision I have made was always to benefit our member-owners,” explains Knecht, 69, who farms with his son, Troy, near Houghton. The Knechts raise corn, soybeans and operate a cow/calf operation. Lifelong cooperative members, the family has always done business with their local cooperative – a practice Knecht says some younger farmers may not do because they don’t understand the benefits. “Do business with a cooperative and they give you a share of the ownership and a say in governance. I don’t know of any other business model that when the business profits, so do its customers.” Throughout his years of service on the CHS board of directors, Knecht traveled the state meeting with local CHS cooperatives and working to encourage the next generation of producers to continue the tradition of loyal patronage. He says meeting cooperative members

Frerichs

Continued

There is a certain level of respect that should be maintained between cooperatives. At the same time, it is very competitive out there. And competition is not just from other cooperatives, but also private businesses competing for sales and service. It is important we as cooperative members realize we are in it together. And it’s not so much what type of cooperatives – local v. regional - we are all a part of a business model where profits are shared with member-owners in the form of patronage refunds/dividends, either paid or stock retirement. That’s where education comes in. Cooperatives, as a whole, have a fair amount of work to do in terms of informing the newest farmers and ranchers about benefits of co-op membership, and perhaps finding out what is most important to beginning producers. Maybe they are not so worried about receiving a dividend check? Maybe they want a better price up front? Service still matters. It is what distinguishes us as cooperatives. If cooperatives do our part, by providing information and education,

Miller

from across state made the nearly 80 days he spent traveling for CHS board meetings and lobbying on behalf of cooperatives worthwhile. “I have gained so many great relationships with members, managers and directors from South Dakota and other states,” Knecht explains. Knecht began co-op board service 28 years ago with Northern Electric and soon after that with Full Circle Ag. After his son, Troy, graduated from SDSU, he returned to farm full-time. That was 21 years ago. A few years later, CHS was looking for a Region 4 director, and because Troy was home farming, Knecht says he was able to answer the call. “Someone needs to do it. And, there are fewer shoulders for the responsibility to land on,” Knecht says. As he looks at the four candidates who are stepping up to run for his seat, he says, “it is time for the next generation to serve. I am proud that I am leaving CHS in very capable hands and a good financial position.” In retirement, Knecht and his wife, Deb, plan to spend more time with their grown children and nine grandchildren. ■

then it comes down to the customers who make the purchase decision. Instead of worrying about competition up front, we need to look at cooperatives as a whole. Do you feel CHS is treating all cooperatives equally when it comes to assets like agronomy, agronomists, fuel and finances? I’m sure there is always work that can be done to prop up certain business ventures. The fuel and service side of things are really what built CHS, and CHS cooperatives. So, these divisions are very important. At the same time, we know it is extremely important to have necessary agronomy options available such as fertilizer, seed, pesticides and precision farming tools. The need for high capacity facilities that handle grain and fertilizer is real. Reinvesting in the local cooperatives and providing access to what our producer-members need, is very important to me. I want to do whatever I can to maintain a presence for our local cooperatives, and CHS as a whole, throughout our rural communities. ■

Continued

the future. Do you feel CHS is treating all cooperatives equally when it comes to assets like agronomy, agronomists, fuel and finances? We have all heard the saying “equal is not fair, and fair is not equal.” A co-op on the east side of South Dakota requires different services than a co-op on the west side of the state. Just like a $1 billion co-op will have different needs than a $10 million co-op. Treating everyone as equals is not the answer. I believe treating everyone fairly is. Treating everyone fairly means following through when you give your

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word or sign a contract. Say what you mean and do what you say. This isn’t rocket science, it’s basically just treating people with respect. If you sign a contract to use a registered trademark or franchised name, then that’s the agreement that binds two parties together. There shouldn’t be a need to come back with further changes or demands at a later date. The catch phrase these days is “be transparent.” With transparency there is no need to do backroom deals because everyone is given the same deal. There will always be volume discounts when dealing with commodities, but I think rebate programs should be offered at the same price or level to everyone. ■

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Union Farmer Fly-In Continued from Page 1

41 SDFU Members Join Nearly 400 in D.C. to Share Our Story “Someone needs to make time to do this,” says Stephanie Like Latham, during the Fly-In all Farmers Union members Cavenee, a third-generation cattle producer who farms had an opportunity to share how the current challenges with her husband, Matt, near Miller. “There are some impact their families and operations, as well as possible misconceptions we need to clear up.” policy changes, like strengthening the farm safety Like the misconception that things really aren’t net, country-of-origin labeling (COOL), support of that bad in farm and ranch country, explains E30 and resolving trade disputes. Darwin Latham, a fourth-generation Camp “Boots on the ground do make a difference. Crook rancher. “The metric the USDA used It’s one thing to read about tough times in to show that the farm economy isn’t so bad, agriculture, but a completely other thing to sit is the fact there aren’t many bankruptcies. across from a farmer or rancher who isn’t going Agriculture is capital-intensive, so most guys to turn a profit and has to dip into savings my age, are dipping into equity to keep things to pay their bills,” says Doug Sombke, SDFU going. It’s a downward trend.” President and Conde crop and cattle farmer. At 54, Latham nearly represents the average “We’re here to explain that the horrible stories age of the American Farmer, 57.5, according they are reading about – they aren’t just some to USDA NASS 2019 statistics. Latham and news story. This is real life.” his wife, Kay, were among the more than 41 With farm debt at numbers not seen since South Dakota farmers, ranchers and supporters 1981 and farm income half of what it was six of agriculture to join with 380 farmers from across years ago, the timing of the 2019 Fly-In was crucial. the nation for the annual Fly-In. “It’s the young guys I’m worried about,” says The Lathams’ adult sons are also involved in their Lake Preston farmer and SDFU Vice President Wayne – Doug Sombke family’s ranch, and they say it’s the sense of urgency Soren, 63. over the current situation that motivated them to travel “A crisis like this can literally wipe out a generation to D.C. of farmers,” adds Aberdeen farmer, Kirk Schaunaman, who “By the time the bank forecloses on a farm or ranch, it’s too late,” like Soren got his start farming in the ’80s. “Here we struggled and Latham says. struggled and finally built up equity, just to see it erode again. But at Latham had an opportunity to clear up the myth surrounding onleast we have equity. The young farmers don’t have that to fall back farm income and share how depressed cattle markets are impacting on.” his family during four sit-down meetings with Congressional leaders During a Hill visit with staff of Alabama’s Rep. Terri Sewell, or staff from various states.

“We’re here to explain that the horrible stories they are reading about – they aren’t just some news story. This is real life.”

Fly-In Continued on Page 9

September/October 2019

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Union Farmer Ethanol Advocate & Former South Dakota Sen. Tom Daschle Meets with Farmers Union Members in D.C.

t’s a critical time for the ethanol industry said former South Dakota Sen. Tom Daschle Sept. 9, when he met with more than 300 farmers, ranchers and agriculture supporters in D.C. as part of the National Farmers Union Fly-In. “It’s a critical time, not only for agriculture, but for rural America,” says Daschle, calling hardship waivers granted by the Environmental Protection Agency (EPA) to oil refineries, including Exxon Mobile and Chevron (85 since 2016) as “the most devastating thing to happen to ethanol in the last 40 years.” When oil refineries receive EPA Small Refinery Exemption (SREs) also referred to as hardship waivers, they are no longer required to comply with renewable fuel blend laws put in place by the Renewable

Advocates for ethanol, former South Dakota Sen. Tom Daschle (left) with South Dakota Farmers Union President Doug Sombke, in D.C. during the National Farmers Union Fly-In.

Fuel Standard – eliminating their need to blend ethanol and other renewable fuels. “The stakes couldn’t be higher, we have 276 million light utility vehicles on the road… emitting over 1 billion tons of carbon,” says Daschle, a longtime ethanol advocate. “For the last 40 years we have been able to make a case that ethanol is a national security issue, – Tom Daschle a jobs issue, an ag issue and is, darn right, an environmental issue.” The solution, Daschle said, is found in opening the market to higher ethanol blends. “There is absolutely no better solution in doing exactly that, than E30,” says Daschle of the high-octane, low-carbon renewable fuel. “The path forward involves, remaining determined to reduce all regulatory barriers that exist, to allow ethanol to play in the free market – to allow it to do what it is meant to do. Doug Sombke and South Dakota Farmers Union have been strong advocates for this.” Recognizing the road forward will not be an easy one, Daschle encouraged farmers to have resilience, and to continue to engage with congressional leaders, like Farmers Union members did during the 2019 Fly-In. “I talk to frustrated people who throw up their hands and say they don’t want anything to do with Washington or politics. But we need to be more engaged than ever. Someone once said, ‘difficulty is an excuse that history never accepts,’” Daschle says. “We are sure at a difficult time. But, that can’t be a reason for giving up.” ■

“I talk to frustrated people who throw up their hands and say they don’t want anything to do with Washington or politics. But we need to be more engaged than ever. Someone once said, ‘difficulty is an excuse that history never accepts.’”

Fly-In Continued from Page 8 Schaunaman’s team learned that although their farms may look quite different from Sewell’s constituents, the message they are sharing with her is the same. “She is very concerned and is frustrated the farmers are bearing the brunt of the tariffs,” her staff member shared. As a young farmer, Brian Cain says the current Trade War means he has three bins full of 2018 soybeans as he waits for a breakeven price before selling. He appreciated the opportunity the Fly-In provides to not only share his story with policymakers, but also with other farmers. “It’s nice to be out here and be able to network with other farmers from across the nation. These guys may be www.sdfu.org

from other states, but they are facing the same issues,” explains Cain, who farms near Miller. E30 and COOL were two solutions shared time and again by SDFU members, with leaders from other states as well as our own. “COOL needs to be a part of a new trade deal,” explains Gregory cattle producer, George Kenzy. “We don’t want someone else to label beef that isn’t raised in the U.S. as ‘Product of the USA,’ using our good name for marketing purposes and to line their pockets.’” Support for higher ethanol blends and ending EPA waivers is strong among South Dakota’s Rep. Dusty Johnson and Sens. John

Thune and Mike Rounds. Johnson called the waivers ridiculous and said he is pushing the Renewable Fuel Standard (RFS) Integrity Act, which would hold refineries, who did not receive waivers, accountable to pick up the slack, to ensure the volume of gallons required by the RFS is blended each year. “This was bad timing for the administration to do what they did with these waivers.” Johnson emphasized that as a freshman representative, he had to work hard to get a seat on the House Agriculture Committee and he is committed to working with colleagues

Fly-In Continued on Page 23 September/October 2019

Union Farmer “There are many trade issues right now that need to be resolved. Because of the trade disruption, lamb pelts that used to go to China, now Tammy & Dallis Basel go to the landfill. We used to count on the price we received for pelts to cover the cost of harvest. Also, I support clean tailpipe emissions, and ethanol is clean.” Tammy Basel, Union Center sheep producer

“We are here to speak up for ourselves and other South Dakota ag producers. With the state of the agriculture economy, we’ve been facing market issues for several consecutive years now. This will be the fourth or fifth year, producers like us, are working hard to hit breakeven. We plan to visit with policymakers Julie & Shane Fastnacht about expanding ethanol consumption and country-of-origin labeling.” Julie & Shane Fastnacht, Wessington Springs “As someone who works with farmers, I felt I needed to be here to be a voice for my parents who are farmers, my customers and other South Dakota farmers – they all cannot make a trip to D.C.” Cameron Lux, Jessica & Cameron Lux SDFU Insurance Agent, Aberdeen

“Most policymakers have no clue what is going on on the family farm. Someone needs to help Matt & Stephanie Cavenee give them a better idea of what it’s like in our shoes.” Matt & Stephanie Cavenee, Miller “It used to be that if you worked hard, you would be successful. This isn’t enough anymore because there are so many factors out of our hands. I want to get the leaders and Darwin & Kay Latham their staff to understand the impact their decisions have on farmers and ranchers. It is harder for them not to address our needs if we sit down and look them in the eye.” Darwin & Kay Latham, Camp Crook

“Every day I receive calls from members and friends sharing how the depressed market, tariffs and weather this growing season are impacting their farms and families. These are horrible stories. That’s why I’m proud these South Dakota family Doug Sombke farmers and ranchers made time to join with nearly 400 other farmers from across the nation to share their stories. These stories about this farm crisis are real life stories, not just something in the news.” Doug Sombke, SDFU President, Conde “This was a great opportunity to advocate for agriculture and act for agriculture by talking to representatives and senators. Also, we appreciate the hands-on training.” Sarah Kroeger, Lennox, served as 2018-2019 S.D. State FFA Vice President

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Sarah Kroeger

“I was interested in seeing how the whole process works in D.C.” Gail Temple, District 3 Board member Gail Temple

South Dakota Farmers Union members share thoughts on why they made time for the organization’s national Fly-In and the information they shared with congressional leaders.

Carolyn Blatchford

“I love the opportunity to connect with other current and past state FFA officers and this FlyIn is a great opportunity to hear and learn from producers, how issues are impacting them and better understand what South Dakota agriculture is going through and how we can help.” Carolyn Blatchford, Brookings, served as 2018-2019 S.D. State FFA Reporter www.sdfu.org

Union Farmer

Brian & Lindsey Cain Cody Wilson

“It’s important that Farmers Union is here to talk with our legislators so that they can hear our needs and we can share the stories of South Dakota farm and ranch families. With so many weather events and instability in the markets, it’s crucial that Congress hears about what is happening. We need strong leaders that are working to ensure farmers have the ability to make a decent living even in difficult times.” Lisa Snedeker, Woonsocket

“I’m here to remind congressional leaders, we aren’t the fly-over states. We are the food on your table states.” Cody Wilson, Parkston farmer & SDFU Insurance Agent, Mitchell

Wayne Soren

“What is being covered here impacts us every day. I currently have three bins full of last year’s soybeans that haven’t sold yet because I am waiting for $8 so I can break even. It is nice to be out here, with this opportunity to network with other farmers from other states who are facing the same issues.” Brian Cain, Miller

“It’s the young guys I’m worried about. They are the reason I’m here in D.C. We lost a generation in the ’80s and we can’t afford to lose another one.” Wayne Soren, SDFU Vice President, Lake Preston

Ryan Leischner

“The ag economy is struggling, to say the least. I hope I can do a little here to change that.” Ryan Leischner, Parkston farmer & SDFU Insurance Agent, Mitchell

“COOL (countryof-origin labeling) is very important Kenzy family to me and we need to send the message that imported meat cannot be labeled ‘Product of the USA.’ We want our product labeled correctly because it is a representation of the best work and highest standards. We don’t want someone else to come in and use our good name for marketing purposes, to line their pockets.” George Kenzy with wife, Shelly, and children: Tyler, Nicholas and Brooklynn, Gregory

Mark & Lorie Schmidt

Larry Birgen

www.sdfu.org

Lisa Snedeker

“Agriculture is in the worst shape it’s been in years. It’s important that we are here, reminding congressional leaders and staff who their decisions impact. Decisions like ethanol waivers are as bad as the tariffs. They are killing the ag industry.” Larry Birgen, Beresford

Kirk Schaunaman

“To make a difference. Not only for farmers, but all of South Dakota. When farmers take a hit, it impacts our entire state.” Mark & Lorie Schmidt, Gary cow/calf and grain farmers

“We heard a USDA representative say farm income isn’t looking too bad because they haven’t seen many bankruptcies. Things are at critical levels. If things don’t turn around in the agriculture markets, we could literally wipe out a generation of farmers. ” Kirk Schaunaman, Aberdeen

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Union Farmer

September/October 2019

www.sdfu.org

Union Farmer

Industrial Hemp Summer Study Meets with North Dakota Commissioner of Ag in Pierre

ndustrial hemp has been on the minds of South Dakota legislators as they work to develop a bill Gov. Kristi Noem will sign in 2020. And on Aug. 19 several legislators met in Pierre with Doug Goehring, North Dakota Commissioner of Agriculture, and leaders from other states where the agriculture crop is legal. “We’re working to come up with legislation everyone can be comfortable with,” explains Lee Qualm, House Majority Leader and Chair of Industrial Hemp Summer Study. After the South Dakota Senate failed to override Noem’s veto of House Bill 1191, which would have legalized industrial hemp, a group of legislators, including Minority Whip and District 28A Rep. Oren Lesmeister began meeting with officials from states where industrial hemp is grown and processed, to learn how state departments of agriculture work with law enforcement, farmers and citizens. “We are seeing that these states have strict

Doug Goehring, North Dakota Commissioner of Agriculture. Courtesy of North Dakota Department of Agriculture

Lee Qualm, House Majority Leader, Chair of Industrial Hemp Summer Study and a Platte farmer. Courtesy photo

that has come along in decades,” says Qualm, a Platte farmer. “It provides the opportunity to add value to a crop before it leaves the state. We are so used to shipping out raw commodities instead of processing them here.” “Industrial hemp would give South Dakotans opportunities,” adds Lesmeister. “I say South Dakotans, not just farmers or ranchers, because it’s the business as a whole, through manufacturing opportunities that could benefit the entire state.” The men hope what they learned from today’s discussions will help their committee develop legislation that will pass in 2020. Other members of the Industrial Hemp Summer Study include Committee Vice Chair Rocky Blare, Ideal; Reps. Shawn Bordeaux, Mission; Bob Glanzer, Huron; Tim Goodwin, Rapid City; Randy Gross, Elkton; Nancy York,

Watertown; and Sens. Red Dawn Foster, Pine Ridge; Joshua Klumb, Mount Vernon; and Reynold Nesiba, Sioux Falls. Members of one of the state’s largest farm and ranch organizations are watching the progression of the new industrial hemp bill closely. “Legalizing the growing of industrial hemp has been part of our policy since 2018, because our family farmers and ranchers need new opportunities. And industrial hemp is a new, potentially high-value opportunity,” explains South Dakota Farmers Union President Doug Sombke, a fourth-generation Conde farmer. The delay caused by the governor’s veto troubles Sombke and Lesmeister because they are concerned neighboring states, will race to develop processing infrastructure ahead of South Dakota. Qualm shares the concern, but believes opportunities still exist. “We are a bit behind the 8-ball, we will see some rules in September or October from USDA, and the FDA may take longer than that. I don’t think we are too far behind,” he says. Which is the reason, the Aug. 19 discussion is so important. “Due to a stressed ag economy, producers are losing money year-after-year. South Dakota producers need more options to diversify and be profitable, they need more tools in their tool belts. The legalization of industrial hemp production will tell our producers that we want them to

Hemp Continued on Page 15

District 28A Rep. Oren Lesmeister is pictured here on the family’s Parade cattle ranch, with his grandson, Trace James Lesmeister. Lesmeister is one of several South Dakota legislators serving on the Industrial Hemp Summer Study Group, working to develop a bill that will be signed by Gov. Kristi Noem in 2020.

rules in place, but we also see that the fear industrial hemp is a backway to produce the drug, marijuana, is unwarranted,” Lesmeister, a Parade rancher and small business owner explains. “We have also learned farmers can make money from this.” New marketing opportunities from the hardy crop that can be grown in nearly every region of South Dakota, are the reason Qualm and Lesmeister voted to legalize growing the crop during the 2019 legislative session. “Industrial hemp is the first new crop www.sdfu.org

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Union Farmer Burg Family Continued from Page 2 of my ancestors. So many just gave up and moved away.” Unlike many who survived the Depression, Jim explains the experience didn’t scare his dad, Albert, away from using the farm’s equity to expand. “Every time he got ahead, he used his equity to get another piece of land – that is how we built the farm to where it is today.” In the mid ’70s, Jim undertook the task of helping his parents put the farm into a corporation so that all siblings would receive an inheritance without dividing up the farmland. Once he and Quinten knew Jeff and Cory were interested in returning to the farm full-time after college, they began implementing a transition plan which was finalized in 2010. “Our goal was to put the farm together enough so these guys could come back if

Permitted for 5,000-head feedlot, the Burg’s feed cattle in open lots as well as a monoslope facility.

they wanted to,” Jim explains. “There is no greater satisfaction than to see the kids want to do what we did. I always wanted to see all my kids get some inheritance and have the opportunity to put it to use before they were 80.” The transition plan also includes Jim’s children who are not on the farm, Julie

September/October 2019

Bruckner, Casey Burg and Lisa Heiss, and provides for Jim and Quinten’s retirement. “Jeff and Cory have made wise decisions and because of how this is structured, it allows a retirement income,” Quinten explains. Prior to 2010, Jim had already begun to step away from the farm to serve as Public Utilities Commissioner for the State of South Dakota. Even with one less family member earning an income off the farm, Jeff and Cory knew they needed to expand. And due to high land prices, they didn’t see buying more cropland as the way to go. So, they expanded their feedlot. “Growing vertically was what we needed to do,” Cory says. Jeff adds, “Finishing cattle allows us to sell our crops at retail prices instead of wholesale. And, it went hand-inhand with the hay business we were already involved in.” Quinten says he credits the farm’s success to the decision to expand the feedlot. “Livestock and farming work so well together.” But they didn’t expand all at once. It began with getting permitted for 1,000 and then, 2,500 head. Today, the Firesteel Ranch is permitted to 5,000 head. “We don’t plunge in and do everything at once. We took calculated risks and expanded slowly, as we could afford to,” Jeff says. Working with order buyers, the Burgs source most of their cattle from South Dakota. They are selective about herd health and keep performance records on all cattle they purchase. They have two employees and work with an independent feed consultant to develop their feed ration. In addition to finishing cattle, they run a 250-head cow/calf herd. They calve half the herd in the spring and the other in the fall. “This allows us to utilize the bulls twice in one year and it’s a lot less labor calving in the fall – plus it gives us another pen of cattle for the feedlot,” Jeff says. Serving South Dakotans Over the years, each member of the family has made time off the farm to serve South

Dakota. Jim served in the S.D. Army National Guard from 1965-1990 and served as a state representative from 1975-1985 and a state senator from 1985-1986. Quinten served as state representative from 1999-2010. Cory served 20 years in the S.D. Army National Guard, deploying to Iraq in 2004. And today, Jeff serves on the board of directors for S.D. Corn Growers and Farm Credit Services of America. “One of the reasons I wanted to serve is we are in a farm crisis, and many young farmers were not around during our last crisis. These young guys have never seen bad times and don’t know how to deal. I want to help guide Farm Credit Services, so they have the right tools to equip them for this,” Jeff says. Although he and Cory were young at the time, they remember the drought and financial struggles their dad and uncle faced during the ’70s and ’80s. “To me, the crisis of the ’80s was such an education. If you survived it, you were so much better for the experience,” Jeff says. Looking to the future, Jeff and Cory do discuss transition plans, although they are unsure at this time if Jeff’s children will want to take over the farm. “This has been a family farm since it was homesteaded. It would be great to keep it in the family,” Cory says. ■ The Burgs united with other landowners in restoration efforts along the Firesteel Creek watershed.

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Union Farmer Hemp Continued from Page 13 succeed,” says Luke Reindl, Communications & Policy Specialist with SDFU. “As a grassroots organization our members set our policy, and many of our family farmers and ranchers would like to be able to grow industrial hemp, so legalizing industrial hemp will be a priority for us as we approach the 2020 legislative session.” And the discussion showed there’s still a lot of work to be done if an industrial hemp bill will pass legislative session 2020, explains Mitch Richter, SDFU Lobbyist. “We heard from North Dakota and Montana on how they dealt with issues around licensing, law enforcement and testing, yet South Dakota’s State Department of Ag as well as Public Safety brought up the same questions they had during legislative session. They are still stuck on the fact that hemp and marijuana are similar, but they have not moved beyond that with plans for how they will deal with testing, licensing and fee structure. I know the legislators on the Summer Study have done the legwork and research, but it looks like they have a long way to go before the governor will sign legislation to legalize hemp in South Dakota.” As South Dakota’s farmers and ranchers wait on lawmakers, Lesmeister encourages them to begin researching today. “Don’t wait for someone to hand you the information. Don’t wait until legislation is passed. Farmers need to be doing their research today, because the minute a bill does pass legalizing industrial hemp, things will move quickly and growers need to be prepared,” explains Lesmeister, who began researching industrial hemp opportunities a few years ago after the 2014 farm bill opened the door for states to grow industrial hemp on a trial basis. “The U.S. has been the biggest user of hemp in the world for years. Now, that we are growing it here, we have years of research to pull from Europe and other countries where they’ve been growing and processing industrial hemp for years,” says Lesmeister, who is most excited about the opportunities to add value to industrial hemp by processing it in South Dakota. “Depending on where they plan to market it, and the variety they plant, industrial hemp can bring farmers between $1,000 to $14,000- an-acre.” Lesmeister references a study conducted by the U.S. Department of Agriculture (USDA) pointing to industrial hemp as an ingredient used in more than 17,000 products – ranging from granola bars, healthcare, cosmetics and clothing to cattle feed and hempcrete, a stronger, lighter-weight, industrial-grade concrete. ■ www.sdfu.org

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Union Farmer OFFICIAL CONVENTION NOTICE To: All local and county unions of the South Dakota Farmers Union. Notice is hereby given that the 104th annual convention of the Farmers Union Educational and Cooperative Union of America, South Dakota Division will convene on Dec. 10, 2019 at the Ramkota Hotel & Convention Center in Aberdeen, South Dakota at 11:30 a.m. (CT) Directors from District II, IV and VI and delegates and alternates to the National Farmers Union Convention along with the State President and Vice President will be elected. Bylaw changes, if any, will also be voted upon and delegates will adopt a policy program. The Convention will remain in session until disposition has been made of all business. The South Dakota Farmers Union bylaws provide: “Each chartered county union in good standing shall be entitled to one delegate for 10 dues-paying members or major fraction thereof. Each county president, if not an elected delegate, shall be a delegate ex-officio to district and state conventions and shall have one vote therein.” “Credentials must be signed by the president and secretary of the county which such delegates represent and be received by the State Office no later than 5 days prior to the state convention (Dec. 5, 2019), and registered at the venue no later than 11 a.m. (CT) on last day of the convention.” FARMERS EDUCATIONAL AND COOPERATIVE UNION OF AMERICA (SOUTH DAKOTA DIVISION) Doug Sombke, President Karla Hofhenke, State Secretary-Treasurer Early Bird - A policy program will be sent out to any delegates that we receive by November 29, 2019

September/October 2019

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2019 S.D. Farmers Union Day at the State Fair Supports South Dakota’s Family Farmers & Ranchers & Rural Communities

Jr. Miss Rodeo Aberdeen Gabrielle Rebelei joined Farmers Union members during SDFU Day at the South Dakota State Fair.

ecognizing rural heroes, awarding more than $25,000 in scholarships, feeding more than 1,000 fairgoers and discussing industrial hemp with policymakers and much more – 2019 South Dakota Farmers Union Day at the State Fair, Aug. 31, focused on supporting South Dakota’s family farmers, ranchers and rural communities. “We work all year to make this day’s events relevant and educational for South Dakotans involved in agriculture and those who aren’t,” explains Karla Hofhenke, SDFU Executive Director. As one of the state’s largest agriculture organizations, and a premier sponsor of the South Dakota State Fair, members of the grassroots organization recognized those who give back to rural communities across the state with the Rural Dakota Pride Award. The 2019 Rural Dakota Pride honorees include Rich Bakeberg, Frederick; Jeannie Hofer, Huron; Jim Lane, Groton; Angie Mueller, Ethan; and Franklin Olson, Pierpont. www.sdfu.org

“South Dakota’s agriculture producers and their communities are closely connected. In good economic times they both prosper. When the economy is down, like today with the trade war, low commodity prices and extreme weather conditions, they both feel the pain,” says Doug Sombke, SDFU President and fourthgeneration Conde farmer. “The Rural Dakota Pride honor is one of many ways SDFU works to show our support for both.” Providing hands-on educational opportunities for fairgoers, SDFU hosted its annual Farmers Share Lunch and Team Up for Safety Quiz Bowl. Feeding more than 1,000, the lunch is designed to help those not involved in agriculture understand the gap between the price paid for food in the grocery store and what a South Dakota family farmer or rancher earns. The lunch, which would retail for $12, only cost fairgoers 25 cents. To learn more, visit www.sdfu.org. Educating youth about farm safety is a large part of SDFU educational

programming. The organization’s interactive Farm Safety Trailer is on display throughout the entire fair and during Farmers Union Day. Four qualifying FFA teams put their farm safety knowledge to the test, competing in the Team Up for Safety Quiz Bowl. FFA chapters competing included Wolsey-Wessington, Hoven, Howard and Dell Rapids. Learn which team won by visiting www.sdfu.org. Policymakers discuss industrial hemp Industrial hemp has been on the minds of South Dakota legislators this summer as they work to develop a bill Gov. Kristi Noem will sign in 2020. And today Farmers Union hosted two legislative members of the Summer Industrial Hemp Study to discuss with fairgoers what they learned from visiting with leaders from other states where the agriculture crop is legal. “We’re working to come up with legislation everyone can be comfortable with,” explains Lee Qualm, House Majority Leader and Chair of Industrial Hemp

State Fair Continued on Page 19 September/October 2019

Union Farmer

September/October 2019

www.sdfu.org

Union Farmer State Fair Continued from Page 17 Summer Study. After the South Dakota Senate failed to override Noem’s veto of House Bill 1191, which would have legalized industrial hemp, a group of legislators, including Minority Whip and District 28A Rep. Oren Lesmeister began meeting with officials from states where industrial hemp is grown and processed, to learn how state departments of agriculture work with law enforcement, farmers and citizens. “We are seeing that these states have strict rules in place, but we also see that the fear industrial hemp is a backway to produce the drug, marijuana, is unwarranted,” Lesmeister, a Parade rancher and small business owner, explains. “We have also learned farmers can make money from this.” New marketing opportunities from the hardy crop that can be grown in nearly every region of South Dakota, are the reason Qualm and Lesmeister voted to legalize growing the crop during the 2019 legislative session. “Industrial hemp is the first new crop that has come along in decades,” says Qualm, a Platte farmer. “It provides the opportunity to add value to a crop before it leaves the state. We are so used to shipping out raw commodities instead of processing them here.” “Industrial hemp would give South Dakotans opportunities,” adds Lesmeister. “I say South Dakotans, not just farmers or ranchers, because it’s the business as a whole, through manufacturing opportunities that could benefit the entire state.” Support for legalizing industrial hemp became part of SDFU policy in 2018. The organization will continue to lobby Pierre to legalize the crop during the 2019 Legislative Session. Learn more about SDFU policy at www.sdfu.org. Supporting rural youth through scholarships The South Dakota Farmers Union Foundation, in cooperation with Farmers Union Insurance, recognized recipients of the Insuring a Brighter Tomorrow $1,000 scholarship. Over the past 12 years, the Foundation has awarded more than $300,000 in scholarships to students attending South Dakota post-secondary schools. Farmers Union Insurance agents throughout the state fund this scholarship program administered

The South Dakota Farmers Union Foundation, in cooperation with Farmers Union Insurance, recognized recipients of the Insuring a Brighter Tomorrow $1,000 scholarship. Over the past 12 years, the Foundation has awarded more than $300,000 in scholarships to students attending South Dakota post-secondary schools. Farmers Union Insurance agents throughout the state fund this scholarship program administered by the Farmers Union Foundation.

www.sdfu.org

As one of the state’s largest agriculture organizations, and a premier sponsor of the South Dakota State Fair, members of South Dakota Farmers Union recognized those who give back to rural communities across the state with the Rural Dakota Pride Award. The 2019 Rural Dakota Pride honorees, pictured here with Jr. Miss Rodeo Aberdeen, Gabrielle Rebelein (far left) and SDFU President Doug Sombke (far right), include (left to right) Jeannie Hofer, Huron; Angie Mueller, Ethan; Rich Bakeberg, Frederick; Franklin Olson, Pierpont; and Jim Lane, Groton.

by the Farmers Union Foundation. “Our insurance agents are committed to building a brighter future in South Dakota,” says Jason Wells, Regional Manager of Farmers Union Insurance. “This is a remarkable group and they make me excited about the future of our great state. We’re choosing to invest in these outstanding individuals to help them pursue their goals and aspirations. Recipients include the following students: Abbie Bratland, daughter of Curwin & Kim Bratland, Willow Lake High School; Bayden Schneider, son of Jason & Velda Schneider, Chester Area High School; Benjamin Sees, son of Mike & Kris Sees, Irene-Wakonda High School; Brandon Volmer, son of Todd & Rona Volmer, Winner High School; Brittany Delzer, daughter of Glen & Cheryl Delzer, Sturgis Brown High School; Caleb Nugteren, son of Darin & Lisa Nugteren, Canistota High School; Conner Edelman, son of Kevin & Lisa Edelman, Menno Public High School; Elise Heesch, daugher of Loran & Yvette Heesch, Sisseton High School; Emily Buse, daughter of Gary & DeeAnna Buse, Lennox High School; Jaedyn Oplinger, daughter of Linda Oplinger, Menno Public High School; Justin Edelman, son of Del & Brenda Edelman, Menno Public High School; Justin Goetz, son of Trent & Goetz & Patricia Pudwill, Selby Area High School; Kaitlyn Carlon, daughter of Ronald & Nancy Carlon, Canton High School; Kendra Johnson, daughter of Wayne & Nancy Johnson, Webster Area High School; Kristin Kotes, daughter of Greg Kotes & Angel Eddy, Bridgewater-Emery High School; Liza Schoenbeck, daughter of Loren & Lisa Schoenbeck, Webster Area High School; Morgan Feddersen, son of Chris & Beth Feddersen, Jones County High School; Paydon Casper, son of Eric & Laurie Casper, Lake Preston High School; Spencer Lund, son of Brian & Kari Lund, St. Thomas More High School; Sydney Hoffman, daughter of Jeff & Deanna Hoffman, Bridgewater-Emery High School; Sydney Smith, daughter of Jay & Sherry Smith, Redfield High School; Tess Oplinger, daughter of Linda Oplinger, Menno Public High School; Tessa Menzel, daughter of CJ & Mandie Menzel, Philip High School; Trevor Frost, son of Travis & Kaylin Frost, Redfield High School; and Trista Frost, daughter of Travis & Kaylin Frost, Redfield High School. Learn more about SDFU educational programming at www. sdfu.org. ■ September/October 2019

Union Farmer Wolsey-Wessington FFA Chapter Wins 2019 Farmers Union State Fair Team Up for Safety Quiz Bowl

utting their farm safety knowledge to the test, four South Dakota FFA chapters competed in the Team Up for Safety Quiz Bowl Championship Aug. 31, during South Dakota Farmers Union Day at the State Fair in Huron. Wolsey-Wessington FFA Chapter won the quiz bowl. Team members include Trayce Haeder, Paige Snyder, Mark Hamilton and Jacob Kahre. Their FFA adviser is Andrew Boersma. Each member receives a monetary prize. “This quiz bowl is a fun way to make youth aware of farm safety and educate them on how to keep themselves and their friends safe,” explains Doug Sombke, SDFU President and fourth-generation Conde farmer. “As an organization, South Dakota Farmers Union (SDFU) is dedicated to supporting family farmers and rural communities. We invest in keeping our rural youth and families safe. Just the simple fact that most farms in South Dakota are family farms, means many South Dakota youth either live on farms or have friends who do.” According to the Centers for Disease Control and Prevention, an estimated 1 million youth, under the age of 20, live on farms in the U.S. Over half of them do farm-related work. Sombke points out that agriculture is often listed among the most dangerous occupations in America. Farm workers face many risks because of the large machinery they work with, along with chemical hazards, unpredictable livestock and enclosed spaces like grain bins that hold thousands of pounds of grain. Wolsey-Wessington is one of four teams to qualify for the

championship quiz bowl during the South Dakota State FFA Convention held in April on the campus of South Dakota State University. Other qualifying teams include Hoven, Howard and Dells (from Dell Rapids). Creating an opportunity for youth to learn about farm safety in a fun way is why Sara Colombe encourages students to participate in the SDFU Farm Safety Quiz Bowl. “The quiz bowl makes learning about farm safety fun. And the contest builds momentum for some other farm safety educational opportunities, like participating in our local cooperative’s grain bin simulator that demonstrates how to help get people out of grain bins safely,” explains the Hoven FFA Adviser/Agriculture Education Instructor. “The students are really into the fact that if they win, there is a cash prize. Competing in a farm safety contest, versus taking a test is much more effective.” In addition to the annual Team Up for Safety Quiz Bowl and farm safety education implemented into the curriculum of SDFU summer camps, in 2018 SDFU invested in and designed a customized Farm Safety Trailer. This Farm Safety Trailer is at the State Fair engaging youth and families in fun, farm safety education. “The hands-on nature of the Farm Safety Trailer allows us to make the message of farm safety real,” explains Rocky Forman, SDFU Member Services Coordinator. To learn more about SDFU Farm Safety Trailer or other youth education opportunities, visit www.sdfu.org. ■

Wolsey-Wessington FFA Chapter won the quiz bowl. Team members include Trayce Haeder, Paige Snyder, Mark Hamilton and Jacob Kahre. Their FFA adviser is Andrew Boersma. Each member receives a monetary prize.

Dells FFA Chapter was among the four teams to compete. Team members pictured here with their adviser, Tom Wolff (far right) include: (left to right) Kenyon Shellum, Noah Randall, Casey Machmiller and Ethan Hollaren.

Howard FFA Chapter was among the four teams to compete. Team members pictured here include: John Callies, Logan Schlim, Canyon Kidd and Katlin Schlim.

Hoven FFA Chapter was among the four teams to compete. Team members pictured here with their adviser, Sara Colombe (far left) include: (left to right) Connor Kaup, Peter Rausch, Chayce Rausch and Jaxson Spindler.

September/October 2019

www.sdfu.org

Union Farmer Farmers Earn 25 Cents from $12 State Fair Lunch

outh Dakota’s No. 1 industry of agriculture is hurting. In addition to dealing with extreme weather during 2019 calving and planting seasons, grain and livestock prices are down. While at the same time, grocery store prices hold steady. To help South Dakotans who don’t work on farms and ranches gain a better understanding of the wage gap between what they pay in the grocery store and what a South Dakota farm or ranch family earns, South Dakota Farmers Union (SDFU) hosts its annual Farmer Share Lunch during Farmers Union Day at the South Dakota State Fair, Aug. 31. Fairgoers pay only 25 cents for a lunch valued at $12. “We fed more than 1,000 today,” says Karla Hofhenke, SDFU Executive Director. “This is our largest educational event. Farmers Union board members, who are farmers and ranchers, and staff spend a lot of time visiting with folks waiting in line, answering questions, helping them understand what the family farmers and ranchers of our state are going through right now.”

Friends, Taylor Feddersen and Savannah Krogman said they knew prices were low, but they were still surprised when they learned the farmer and rancher who raised the ingredients for the lunch, which included milk, chips and pulled pork sandwich, only received 25 cents.

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“We live in a small town, and know everyone who does farm,” explains Feddersen, who traveled to the State Fair from Murdo. “But it’s still surprising – farmers don’t make enough,” adds Krogman. Farmer Share lunch is an annual event hosted by S.D. Farmers Union. Fairgoers pay only 25 cents for a lunch valued at $12 And although during the annual Farmer Share lunch hosted by S.D. there has been Farmers Union. Winner farmer, Joel Keierleber, pictured here with his wife, Audrey, appreciates the ora large gap ganization’s effort to education. “When consumers ,between what buy a pound of burger at the store and pays $4, they shoppers pay and think I’m making $4 a pound for the cattle I raise. what farmers and This simply isn’t the case. Consumers really don’t unranchers earn, in derstand that most of their food dollars go to the middleman. For example, I only receive $1.73 for recent years the that pound of burger, and that is not counting how difference has much it cost me to produce and market the cow.” become extreme. “Farmers and ranchers are used to dealing with unpredictable weather, and somewhat volatile markets, but the recent trade war and the 2017 dissolving of governmental oversight with the closure of USDA Grain Inspection, Packers and Stockyards Administration (GIPSA), who facilitated the marketing of agriculture products, means our farmers can’t even get fair markets within the U.S.,” explains Doug Sombke, SDFU President and fourth-generation farmer. Winner farmer, Joel Keierleber, appreciates the organization’s effort to education. “When consumers buy a pound of burger at the store and pays $4, they think I’m making $4 a pound for the cattle I raise. This simply isn’t the case. Consumers really don’t understand that most of their food dollars go to the middleman. For example, I only receive $1.73 for that pound of burger, and that is not counting how much it cost me to produce and market the cow.” ■

September/October 2019

Union Farmer

South Dakota Farmers Union Safety Trailer

Huron Homecoming

Spink County Fair Brandon

...on the road

Safety Day at Plankinton

Safety Day at Hoven

Clay County Fair

Safety Day at Bison

September/October 2019

www.sdfu.org

Union Farmer

Sign People Power Petition to Protect Initiated Ballot Measures as Right of All South Dakotans

ory Heidelberger’s enthusiasm for democracy surprises some. “Someone came up to me while I was circulating a petition at the Brown County Fair, and they said they were surprised by how excited I was over democracy. My response was, ‘how can you not be excited about democracy?’ It’s our opportunity to be captains over our own lives and the laws we live under,” explains the political blogger and founder of SD Voice, a ballot question committee. When Heidelberger saw recent laws begin to infringe on South Dakotans democratic right to implement ballot initiatives and referendums, his passion for democracy motivated him to put together the People Power Petition, an initiated ballot measure designed to repeal recent changes to the initiated measure process. “In the last two years, overregulation and bureaucracy have been added to the process creating too much paperwork and bureaucracy, which are meant to create hurdles that stop the grassroots, volunteer from working to create laws,” Heidelberger says. For example, in addition to the longstanding requirement that petition circulators sign a notarized oath on each petition sheet affirming that they live in South Dakota, the new laws mean every South Dakotan who wants to circulate a petition needs to first receive approval from the Secretary of State’s office. Once approval is granted, the paperwork continues: circulators now have to write their contact information on special forms to had to every signer and prepare an additional residency affidavit giving residence history and other personal information to the state. The People Power Petition repeals these

He explains that if People Power Petition passes, the following rules will still be in place: 1. Every petition circulator must be a South Dakota citizen. 2. Every petition circulator must swear an oath that they are a South Dakota resident eligible to circulate a petition. All eligible circulators must be a resident of South Dakota and 18 years or older. 3. Initiated measures and referendums need a minimum of 16,961 qualified signatures before they are placed on the ballot. South Dakota was the first state in the nation In the 1890s, South Dakota was the first

state in the nation to allow citizens to have a direct voice in the development of laws by allowing initiative and referendum. “South Dakota has handled this power judiciously and wisely – at least as well as our legislators handle the power,” Heidelberger says. What changed? IM 22 is Heidelberger’s explanation. “After voters passed the anticorruption measure, Initiated Measure 22, it made many of our legislators mad. Those legislators then put several laws into place protecting their privilege to create laws.” Regardless of how you feel about IM 22, Heidelberger says the resulting regulations impacting citizens’ ability to bring a measure to a vote should concern all South Dakotans. Doug Sombke, President of South Dakota Farmers Union, agrees. As one of the state’s largest agriculture organizations, Farmers Union policy supports People Power Petition. “We’re a grassroots organization and our policy states that initiated measures should be welcomed and accessible, allowing individual citizens to put things on the ballot,” Sombke explains. “Now, this has never been an easy process. Anyone who has ever had to collect more than 16,000 signatures knows what I’m talking about. However, it has been achievable. The new laws are creating unnecessary paperwork and roadblocks to democracy.” Sombke encourages citizens to seek out and sign the People Power Petition. “This is an attempt to make sure democracy is heard. The funny thing is, most are not happy with politicians. Yet, if we let the rules put in place by legislators stymie citizen-led initiatives from making it onto the ballot, we’re essentially letting politicians make laws without our input,” Sombke says. ■

when you visit,” Rounds says, adding that he agrees with Sen. Chuck Grassley’s position that waived gallons should be put back. “We are here to make a difference, not only for farmers, but for all of us. When farmers take a hit, all of South Dakota feels it,” says Lorie Schmidt, who raises cattle and crops with her husband, Mark, near Gary. Mark also serves as Chairman of the Board for Glacial Lakes Energy, an ethanol cooperative headquartered in Watertown.

Parkston farmer, Cody Wilson adds, “On the news I’ve heard them reference the Midwest as ‘fly-over states.’ I’m here to remind congressional leaders, we aren’t the ‘fly-over’ states. We are the ‘food on your table’ states.” To read comments and see videos from Fly-In participants, visit South Dakota Farmers Union Facebook page. ■ By Lura Roti for SDFU

additional steps, while maintaining the process which protects the democratic right given to South Dakotans in the 1890s to make laws or referendums. “I’m not trying to repeal all the rules,” Heidelberger says.

“In the last two years, overregulation and bureaucracy have been added to the process creating too much paperwork and bureaucracy, which are meant to create hurdles that stop the grassroots, volunteer from working to create laws.” – Cory Heidelberger

Fly-In Continued from Page 9 on both sides of the aisle for positive change for agriculture. “In the House, if you’re going to be relevant, if you’re going to move the needle, you get one thing. If you go to any of the 90 members of the freshman class and ask them, ‘does Dusty have one thing yet?’ they will tell you, ‘that guy cares about agriculture and rural America.’” Rounds emphasized that the time SDFU members took away from their farms and ranches won’t go unnoticed in D.C. “It’s good www.sdfu.org

September/October 2019

Union Farmer

3-Year Trip Shows Young Leaders the Different Sides of Cooperatives

armers Union youth from across the state loaded up and headed off for Minneapolis on South Dakota Farmers Union’s annual three-year cooperative awards trip this July. The trip kicked off with a behind-thescenes tour of Target Field, including access to the rooftop and box seats for the Minnesota Twins game. Students also got a glimpse of the locker room and batting area. Additionally, they witnessed a historic triple play as the Twins beat the Yankees. The students also toured Riverton Community Housing in Dinkytown, near the University of Minnesota campus. They learned how much rent and parking cost and how the cooperative model works in a housing community. South Dakota Farmers Union Education Director Rachel Haigh-Blume says, “It’s important for them to see how cooperatives of all different shapes and sizes work. Seeing the different real world applications really gets them thinking.” “It’s amazing what you see when you stop and look at things. All of the stops showed me how important cooperatives are to the Midwest,” says Landon Copley of Aberdeen. “We all have a part. Cooperating among friends, family and others keeps us moving in the right direction for tomorrow.” After Riverton, the students headed down to Seward Cooperative Grocery store. One of Seward’s cooperative goals is to ensure fair wages for farmers and their workers. Students heard stories from local cooperative growers and got to speak to the people behind the products.

Farmers Union youth from across the state loaded up and headed off for Minneapolis on South Dakota Farmers Union annual three-year cooperative awards trip. Pictured here: First row: Garett Kruger, Lake Preston; Second row: Kathryn Nightingale, White Lake; Megan Linke, Woonsocket; Elle Hoops, Huron; Lukas Butler, Philip; Marleigh Hulm, Bison; Roni Voller, Bison; Third row: Luke Thompson, New Underwood; Tyler Hanson, Britton; Matt Olson, Frederick; Landon Copley, Aberdeen; David Butler, Philip; Sadie Streff, Clark; Kelcey Butler, Philip; and Jessica Temple, Clark.

Sadie Streff, Clark comments, “I enjoyed learning about cooperatives and how they not only impact their members, but their communities as well.” Village Trust Credit Union gave the students a presentation on their journey of developing a credit union from scratch. Village Trust has local ties to South Dakota, as a Sioux Falls native is helping them with their startup efforts. The cooperative tour ended with a visit to CHS where presenters discussed internships, marketing and safety. Kelcey Butler of Philip

says, “I liked touring the CHS office and seeing all of the different careers there are. I also really enjoyed the Twins game and the tour of Target Field.” A night out at the Mall of America completed their stay. The three-year trip emphasizes cooperatives, but is also designed for fun and exposure to new things. “The tours are a great experience,” says Haigh-Blume. “But just visiting a larger town and seeing the cultural differences is a great eye-opener for so many.” ■ By Toby Kane for SDFU

SDFU Facebook page is a great place to share what South Dakota’s farm and ranch families do each day.

Like us on Facebook: South Dakota Farmers Union 24

September/October 2019

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UnioFarme

Farm Safety is a Year-Round Focus for S.D. Farmers Union

outh Dakota Farmers Union (SDFU) invests in farm safety yearround, because it has a direct impact on family farmers, ranchers and their communities, says Doug Sombke, SDFU President. “South Dakota’s rural communities are tight-knit. So, if someone is injured in a farm- or ranch-related accident, it impacts not only their family, but the entire community. Through our farm safety education efforts, we hope South Dakota youth and families think about safety. And, ultimately prevent injuries all together,” explains Sombke, who farms with his sons near Conde.

More than 7,000 South Dakota youth have visited South Dakota Farmers Union’s Farm Safety Trailer since it hit the road in 2018.

Sombke says today with his sons working on the farm and his young grandkids playing on the farm, farm safety is something he thinks about a lot more than when he first started farming more than 30 years ago. Keeping farm safety top of mind is the goal of programming SDFU develops for their annual summer camps, held across the state and attended by more than 1,000 youth each summer and the Farm Safety Trailer they designed and began taking to schools, fairs, community, 4-H and FFA events, explains Rocky Forman, SDFU Member Services Coordinator. “Kids learn best by doing,” Forman says. “So, we made sure each safety lesson exhibited in this trailer engages youth in a hands-on activity.” For example, youth can try on a safety harness while learning about grain bin safety; drive an ATV simulator to learn how to safely drive an ATV and through the 3-D model farm, they can learn about high-risk areas of the farm and how to be safe. “When learning is hands-on, it engages students’ thought processes, so they understand what they are learning,” explains Tracy Chase, a science and agriculture education teacher at McCook Central High School. More than 7,000 South Dakota youth have visited the Farm Safety Trailer since it hit the road in 2018. “The trailer took more than a year to design and develop, but the result is worth it,” says Karla Hofhenke, SDFU Executive Director. “The hands-on nature of this trailer enhances our educational mission and allows us to provide farm safety education to youth year-round.” Team-Up for Safety Quiz Bowl In addition to farm safety programming geared to elementary and middle school-age youth, SDFU hosts an annual Team-Up for Safety Quiz Bowl during the S.D. State FFA Convention, where high school youth test their farm safety knowledge, competing to qualify for the www.sdfu.org

championship round held annually during the South Dakota State Fair. “Farm safety is a very important aspect of farming that is underestimated at times and if you take it for granted, it can be the difference between preventing an accident or serious injury or even death,” explains Logan Zemlicka, a member of the WolseyWessington FFA Chapter when they qualified for the State Fair championship. To learn more about SDFU farm safety programming, or to reserve the Farm Safety Trailer for your next event, contact Rocky Forman at 605-3526761 or rforman@ sdfu.org. ■ Hands-on, the SDFU Farm Safety Trailer engages youth with safety through many activities. For example, youth can try on a safety harness while learning about grain bin safety; drive an ATV simulator to learn how to safely drive an ATV and through the 3-D model farm, they can learn about highrisk areas of the farm and how to be safe.

September/October 2019

Union Farmer Around the State with Farmers Union

South Dakota Farmers Union members and staff are making a difference in rural communities across South Dakota.

Community Concepts Grants

Jeff Reider Farm Visit Minnehaha County donates to Humboldt Food Pantry.

Gregory County donates to Gregory Horizons Aug 19.

Jerauld County

SDFU Monthly Radio Show

Check out SDFU monthly radio show at www.sdfu.org and click on the news tab.

September/October 2019

www.sdfu.org

U rme nioFa S.D. Farmers Union Supports Cattle Producers Calling for COOL & Transparency in Price Reporting

outh Dakota Farmers Union (SDFU) supports the Sept. 25 testimony of cattle producers who testified before the U.S Senate Ag Committee. “Across the United States, cattlemen and women are facing unprecedented challenges to their livelihood. As these threats rise and cattle prices fall, more and more families have come to the realization that they simply cannot keep their bottom line ‘in the black’ at the end of the year. Our concern lies not only in the ability of our nation to continue producing the highest-quality, safest food supply in the world, but also in the ability of our producers to feed themselves. The U.S. cattle industry requires bold leadership by Congress to address the current inadequacies in the marketplace,” reads testimony from Shane Eaton, a cattle producer from Lindsay, Mont. (read complete transcript at this link: https://www.agriculture.senate.gov/imo/ media/doc/Testimony_Eaton%2009.25.19. pdf) Like Eaton, SDFU, a grassroots organization of more than 16,000 family farmers and

“This process does not exemplify fair marketing and puts the U..S. cattle producers at a disadvantage. Currently we are lacking full transparency of price reporting and GIPSA’s job description of price reporting.” – Doug Sombke, SDFU President ranchers, supports more transparency in price reporting. SDFU would like to see leadership reinstate country-of-origin labeling (COOL), which was repealed in 2015. “I totally support everything Shane Eaton testified to yesterday during U.S Senate Ag Committee hearing, including his suggested

remedy to include imported live cattle reporting as part of Livestock Mandatory Reporting (LMR),” says Doug Sombke, SDFU President and Conde crop and cattle producer. Sombke explains that in the current market, cattle can be imported to the U.S., placed in a feedlot and be marketed as non-imported cattle. “This process does not exemplify fair marketing and puts the U.S. cattle producers at a disadvantage. Currently we are lacking full transparency of price reporting and GIPSA’s job description of price reporting,” Sombke says. The tragic result leaves South Dakota producers dealing with punishing losses since 2015. Many sustaining losses upwards of $500 per head while packer margins have been in excess of $500 per head. “Feeder and Live cattle market volatility is jeopardizing the livelihoods of the South Dakota cattle producers and must be investigated,” Sombke says. The Senate Ag Committee called the hearing following a dramatic downswing in U.S. cattle markets following a fire at a Tyson Foods beef processing plant in Holcomb, Kan. Sombke urges South Dakotans to reach out to our congressional leaders, asking them to develop policies for transparency in price reporting and to include COOL in trade negotiations. ■ By Luke Reindl, SDFU Communications & Policy Specialist

Contact your Congressional Leaders today: Rep. Dusty Johnson 202-225-2801 855-225-2801 reid.rasmussen@mail.house.gov Sen. Mike Rounds 202-224-5842 844-875-5268 logan_penfield@rounds.senate.gov

SDFU, a grassroots organization of more than 16,000 family farmers and ranchers, supports more transparency in price reporting. SDFU would like to see leadership reinstate country-of-origin labeling (COOL), which was repealed in 2015.

www.sdfu.org

Sen. John Thune 202-224-2321 866-850-3855 ryan_donnelly@thune.senate.gov

September/October 2019

Union Farmer Roger Johnson National Farmers Union President

fter yet another year of depressed commodity prices, uncertainty in export and biofuels markets, rapid consolidation in the food and agriculture sectors, and extreme and unseasonal weather events, nearly 400 National Farmers Union (NFU) members traveled to the nation’s capital for one of the organization’s most well-attended legislative fly-ins in more than a decade. Advocates from across the country urged their elected representatives to support policies that strengthen the farm safety net, reduce chronic overproduction, help farmers and ranchers implement climate smart practices, restore competition to the agricultural economy, resolve ongoing trade disputes and expand the market for homegrown biofuels. Though attendees have returned to their operations, Farmers Union staff are continuing to work on these issues in D.C. Read about those efforts in the latest edition of NFU’s Washington Corner. FARMERS UNION BOARD CALLS ON ADMINISTRATION TO STRENGTHEN AGRICULTURAL MARKETS During a meeting in Washington, D.C., the board of directors unanimously passed a pair of resolutions calling for solutions to mounting financial difficulties in farm country. By most metrics, the farm economy is in a slump, and it has been for six years now. The farmer’s share of the consumer food dollar is at an all-time low. Prices for many commodities are below the cost of production. Farm debt is at its highest level in almost 40 years. And median farm income has been negative since 2014. An international trade war and the undermining of biofuels programs have added to family farmers’ and ranchers’ troubles by adding to the oversupply of many American farm products and depressing prices even further. In order to relieve these unnecessary market pressures, the board compelled the administration to end its “erratic and destructive actions,” work to rebuild international and domestic markets, restore America’s reputation as a reliable trading partner and reverse policies that have undermined the Renewable Fuel Standard. Additionally, they recommended that the U.S.-Mexico-Canada trade agreement (USMCA) strengthen labor, environment and enforcement provisions; rectify language related to prescription drugs; strengthen anti-dumping protections for agricultural goods; and re-establish country-of-origin labeling (COOL) authority. EPA MUST SUPPORT BIOFUELS, UPHOLD INTENT OF RFS, SAYS NFU In early July, the U.S. Environmental Protection

September/October 2019

Agency (EPA) released its proposed renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) for the year 2020. Though the proposal would maintain the current volume of conventional biofuels at 15 billion gallons, it would also significantly reduce the statutory volume for advanced biofuels and, consequently, the total renewable fuel volume. Furthermore, the proposal does not compensate for the 4 billion gallons of demand for biofuels that was eliminated by the ongoing misappropriation of RFS small refinery exemptions (SREs) to multinational corporations. In response to dwindling demand, at least 15 ethanol plants and several biodiesel plants have closed, and many others have reduced production, resulting in the loss of thousands of rural jobs. On behalf of its nearly 200,000 family farmer and rancher members, NFU submitted public comments urging EPA to adjust its proposed volume obligations in order to “offset all 4 billion gallons lost to the waivers. . . enforce the volume requirements for conventional biofuels and. . . increase volumes for advanced biofuels.” TRADE PAYMENTS BOOST FARM INCOME New estimates released by the U.S. Department of Agriculture (USDA) underscored the ongoing market challenges plaguing family farmers. The report set the final net farm income for 2018 at $84 billion and predicted that net farm income next year would increase to $88 billion. These number are still well below the 2013 high of $136.5 billion but are only slightly below the $90 billion average from 2000-2018. While these gains seem promising on the surface, they are not due to market improvements. In fact, farm cash receipts are forecast to decrease by $2.4 billion this year. The full $4 billion growth, plus another $1.8 billion, can be attributed to direct government payments, mostly in the form of trade assistance through the Market Facilitation Program. In a statement, Vice President of Public Policy and Communications Rob Larew indicated some optimism about the report but said it “belies the economic difficulties that most farmers are still facing. . . commodity prices are still depressed and oversupply continues to be a problem.” He expressed concern that “farm income will likely fall again next year” unless the administration pursues real solutions to trade disputes, the undermining of biofuels policies and chronic overproduction. U.S.-CHINA TRADE WAR HEATS UP, COOLS DOWN In another round of escalation, Chinese officials announced in August that the country plans to increase tariffs on $75 billion worth of American

goods, including soybeans, pork, corn, sorghum and wheat. Just hours later, President Donald Trump tweeted that the U.S. would increase current punitive tariffs on $250 billion worth of Chinese goods from 25 percent to 30 percent starting on Oct. 1. Additionally, he announced that a 10 percent tariff on $300 billion worth of Chinese imports, scheduled to go into effect on Sept. 1, would be hiked up to 15 percent. NFU President Roger Johnson said it was “no surprise” that China retaliated with yet more tariffs, particularly on agricultural products. “Every time Trump escalates his trade war, China calls his bluff – and why would we expect any differently this time around?” Johnson also expressed frustration that rather than solving the many problems already plaguing the agricultural sector – overproduction, low prices, climate change – the administration has created new problems. “Between burning bridges with all of our biggest trading partners and undermining our domestic biofuels industry, President Trump is making things worse, not better.” Since then, however, the two nations have forged ahead with negotiations. In a slight détente, China decided in September to exclude U.S. soybeans and pork from additional tariffs. Additionally, the country purchased $67 million worth of U.S. soybeans – for context, the United States exported $12.2 billion worth of soybeans to China in 2017. President Trump, in response, delayed his tariff boost for two weeks, until Oct. 15. Though it is promising that China has increased its purchases of U.S. agricultural goods, albeit only marginally, there is still a long way to go until the situation is fully rectified. For one, it is unclear what trade between the two countries will look like long-term, as both have begun building relationships elsewhere. For instance, during the G-7 summit, President Trump and Japanese Prime Minister Shinzo Abe came to a tentative trade deal that would reportedly increase U.S. agricultural exports to Japan by as much as $7 billion. China, on the other hand, nearly doubled its imports of Brazilian soybeans in the past year. Even in the unlikely event that the U.S.-China trade relationship returns to its pre-trade war state, there would still be outstanding issues to address. In particular, China’s unfair and manipulative trade practices, including currency manipulation and intellectual property theft, have yet to be corrected, even though these are the very practices that motivated President Trump to instigate a trade war in the first place. ■ Current as of September 15, 2019.

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UnioFarme

From the President....

Fair Prices Doug Sombke

A PUBLICATION OF SOUTH DAKOTA FARMERS UNION

SDFU President

air prices. A simple concept and the driver of many innovative ideas – ethanol, cooperatives and this grassroots organization to name a few. How is it that more than a century after Farmers Union’s founding we are still advocating for fair prices? Now, there have been wins along the way. But today, our family farmers and ranchers are met with challenges beyond their control – and I’m not talking about the extreme weather this growing season – I’m talking about manmade obstacles like the Trade War, ethanol hardship waivers and packer price fixing. Farmers have the answers Now, I know I’ve just been preaching to the choir. So now you ask, what is being done? Know that during the Fly-In, we took this message and shared it, not just with congressional leaders and staff from South Dakota, who hear about these issues all the time, but also with leaders from states where agriculture is not their No. 1 industry – or even something they consider when developing policy. And we were heard. In a meeting with a staffer from an urban district, cattle producers from Gregory visited about the need for country-of-origin labeling (COOL). And explained that without it, meat from other countries could be blended with U.S. raised meat and labeled deceptively as Product of the USA. Instantly, the staffer responded with shock, saying that he cared about where his food came from. In another meeting, an ag-savvy staffer, raising her family in D.C. said, “I doubt my child knows where their food comes from, I need to talk to him about farmers when I get home tonight.” Like Montana rancher Shane Eaton said in his testimony before the U.S Senate Ag Committee, “The pressure point is working just fine for those who file W-2s, but not for those of us who file schedule F.”

Advocacy makes a difference. But we need to do more. And Farmers Union is. Know that right now, National Farmers Union is working with a law firm to approach a solution to price fixing among packers, or the “Meat Mafia” as I like to call them. We continue to push for truth in labeling with COOL, transparency in price reporting and an end to “hardship waivers” for multibillion-dollar Big Oil companies. And while everyone is talking about climate change, we are doing something about it. With a focus on stewardship, our farmers are implementing soil health practices and our ranchers are managing the range in responsible ways to ensure our resources are better tomorrow than they are today. Hope for the future Along with policy change, we as farmers and ranchers need to focus our efforts on boosting domestic demand for our products. Export markets aren’t a stable solution, as the current trade war demonstrates. Like ethanol, we need to process more of our product here and stop relying on other countries to take our oversupply. If we can’t receive a fair price for our products, then why are we overproducing them? We need to do a better job managing our inventories and take back control. As we speak, aquaculture in our landlocked state is growing, a great opportunity to increase demand for soybean meal to feed the fish and shrimp. Fair prices can be achieved. By working together for the good of all family farmers and ranchers, in the spirit of the cooperative model, we as farmers and ranchers can take back control of our prices.

Sincerely, Doug Sombke, President South Dakota Farmers Union

Contact your Congressional Leaders today: Representative Dusty Johnson 202 225 2801 / 855 225 2801 reid.rasmussen@mail.house.gov

www.sdfu.org

Senator Mike Rounds 202 224 5842 / 844 875 5268 logan_penfield@rounds.senate.gov

Senator John Thune 202 224 2321 / 866 850 3855 ryan_donnelly@thune.senate.gov

South Dakota Union Farmer, ISSN 0745-8797, publishes 9 times per calendar year, with issues printed in January/February, March/April, May/June, July, August, September, October, November and December. Periodical postage paid at Madison, S.D. Karla Hofhenke, Publisher Lura Roti, Editor ~ Wendy Sweeter, Copy Editor Diane Martinson, Layout & Design

All information for publication must be submitted by the 15th of the month. You may submit items to address below or email items to: sdfu@sdfu.org POSTMASTER: Address changes to: SDFU, PO Box 1388, Huron, S.D. 57350-1388

Contact SDFU • 605.352.6761 1410 Dakota Avenue South, PO Box 1388, Huron, SD 57350 www.sdfu.org

sdfu@sdfu.org

SDFU State Office Staff Karla Hofhenke.......ext. 114 Executive Director Huron

Doug Bruckner..............ext. 118 Controller Wessington Springs

Rachel Haigh-Blume.... ext. 125 Education Director Tulare

Luke Reindl................... ext. 122 Comm. & Policy Specialist Wessington Springs

Rocky Forman..............ext. 117 Member Services Coordinator Huron

Pam Evenson................ ext. 116 Membership Specialist Doland

Luanne Thompson.......ext. 111 Administrative Assistant Virgil

Karon Rembold............ext. 111 Receptionist Miller

SDFU Board of Directors Doug Sombke.........President Groton Wayne Soren.. Vice President Lake Preston Mike Miller................ District I Freeman Lisa Snedeker........... District II Woonsocket Gail Temple............. District III Clark

Contact NFU

David Reis................District IV Oacoma Dallis Basel...............District V Union Center Lynn Frey.................District VI Lemmon Chad Johnson........District VII Groton

National Farmers Union 20 F Street NW Suite 300 Washington, DC 20001

Roger Johnson, President ~ Patty Edelburg, Vice President Darin Von Ruden, Secretary ~ Doug Sombke, Treasurer 202.554.1600 www.nfu.org

September/October 2019

UnioFarme

REAL Fosters Leadership, Looking for 2019 Participants

outh Dakota Farmers Union Rural Economic and Leadership Development (REAL) fosters leadership among rural leaders, business owners and agricultural operators.

In small towns and rural communities, leaders wear a lot of hats. They are not just running businesses and going to school events. They are sitting on boards, volunteering, fundraising and mentoring. REAL’s purpose is to give current and future

leaders an opportunity for professional development. Rachel Haigh-Blume, SDFU Education Director, explains, “The REAL groups have fun and make connections that last. It gives individuals a group of people to run things by and a chance to just learn from each other. It’s also a great resource builder to reach out to and gain insights from.” Alan Roth of Sabers Farmers Union Insurance Agency in Sturgis participated in this year’s REAL program where he had the opportunity to sit in on Senate and House sessions at the State Capitol. “I would strongly suggest REAL to anyone who is just getting started in their career or anyone who

thinks they could use a little boost in their current position,” says Roth. Participants bring what they’ve learned from REAL back to their communities. Kelli Erickson of Full Circle Ag in Britton recently joined her local Chamber of Commerce. “The REAL program has definitely helped me gain the rural economic and leadership skills needed to help me succeed on the board,” says Erickson. “Opportunities like this remind me how to be a good communicator and a strong leader when working with teams.” Full Circle Ag believes the REAL program has impacted their employees in numerous positive ways. The company has made a commitment to offer their staff the opportunity to apply for the REAL program each year. Are you interested in participating in REAL or do you have employees you would encourage to apply? We are looking for our next class of rural leaders from all walks of life. Go to sdfu.org or call Rachel HaighBlume at 605-352-6761. ■ by Toby Kane for SDFU

4 Ways to Connect With Us! SOUTH DAKOTA FARMERS UNION mail to: sdfu@sdfu.org

Like us for updates, photos, news, and so much more. https://www.facebook.com/ South-Dakota-Farmers-Union277721538812/

View videos at the South Dakota Farmers Union Channel. https://www.youtube.com/ user/sdfarmersunion

September/October 2019

www.sdfu.org

Thank You Thank you very much for the support and recognition given to those who received the 2019 Rural Dakota Pride Honor. Your continued support to the citizens of our state is super!! It is great to be a special part of your kindness and generosity!! Thank You, Rich Bakeberg *** Thank you so much for the complimentary gate admission tickets to the fair for last Saturday. We enjoyed the day despite the rain. We took in the Farmers Share Lunch-what a delicious meal! The beans were very tasty. Thank you for hosting that and making people aware of the low prices for farmers’ crops. Also my husband “was caught” wearing his Farmers Union shirt so was awarded with a $20 bill. How nice! Thank you for making our fun day at the fair even better. Jean & Butch Morrison

COOK’S CORNER

Rhubarb Muffins 1 ¼ c. brown sugar ½ c. cooking oil 1 egg 2 tsp. vanilla 1 c. buttermilk 1 ½ c. rhubarb, diced

Departings

Doris Marie Putnam Miner passed away on September 8, 2019, at Independence, Mo. She served in the South Dakota House of Representatives from 1977 to 1978 and in the Senate from 1979 to 1992. She held numerous positions in South Dakota Farmers Union also. She is survived by her husband, Kenny; their children: Jana Miner, Fort Pierre, S.D.; Kevin (Judy Ingold), Bonesteel, S.D.; Kate (Linda Watson), Kansas City, Mo.; and Lorrie Miner (Lee Brannan), Presho, S.D.

Farmers Union signs available

Show your Farmers Union spirit with a special Farmers Union sign. Available for a limited time, the sign makes a fun addition to the farm driveway, the side of a barn or even a statement piece in the house. The cost per sign is $10 or free with a five-year or greater membership to Farmers Union. To get yours today, contact Membership Specialist Pam Evenson at 605352-6761 ext 116 or at PEvenson@sdfu.org.

$2500 Graduate Scholarship Now Available! SDFU supports retaining talent through scholarships. To apply, you must be a fulltime student pursuing a graduate degree in research, animal science, agriculture business or agriculture education. Deadline Dec. 15, 2019 Learn more at www.sdfu.org/Scholarships.

SDFU CLIP AND SAVE CALENDAR OCTOBER 8

KELO AM Radio, Sioux Falls

District 6 Annual Meeting, Isabel

Kingsbury County Annual Meeting, Lake Preston

9-12 Western Jr. Livestock Show, Rapid City Brecky (Keierleber) Cwach, Davis, S.D.

½ c. walnuts, chopped ¼ tsp. black walnut flavoring 2 ¾ c. flour 1 tsp. baking soda 1 tsp. baking powder ½ tsp. salt

Preheat oven to 350 degrees F. In a large bowl, put brown sugar, oil, egg, vanilla and buttermilk; mix well. Stir in rhubarb, walnuts and flavoring. In a smaller bowl, combine flour, soda, baking powder and salt. Then add to rhubarb mixture. Spoon batter into muffin pans. Topping: ½ c. sugar 1 tsp. cinnamon Combine sugar and cinnamon and spoon over top of muffins. Bake for 20-25 minutes. www.sdfu.org

Union Farmer

Pet Performance Grand Opening, Mitchell

Jr. REAL, Philip

Jr. REAL, New Underwood

Jr. REAL for Bison/Lemmon, Lemmon

Jr. REAL for Woonsocket, Sanborn Central & Wessington Springs

Jr. REAL, Groton

NOVEMBER 12-13 SDFU Board Meeting, Huron 12

KELO AM Radio, Sioux Falls

25-26 FUI/FUE Meeting, Redwood Falls, Minn. 28-29 State Office Closed DECEMBER 10-11 SDFU State Convention, Aberdeen 10

KELO AM Radio, Sioux Falls

24-26 State Office Closed

September/October 2019

Union Farmer

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Darrel Kessler J.R. Johnson Cameron Lux Alan Voller Karen Voller Tom Farber Gary Ray Beth Reams Heidi Fields Jim Erk Lon Reidburn Bonnie Wagner Mark Rozell Dawn Melius J.R. Johnson Blaine Anderson Brendon Hansen Brian Hansen Donna Enders

229-3945 725-3003 377-3876 244-7431 244-7431 448-5150 692-6735 690-3018 881-2830 375-3311 532-3299 635-6511 635-6511 598-6570 725-3003 352-2130 263-2121 263-3342 837-2144

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374-3462 941-0650 387-5555 996-9651 737-0463 224-4123 342-5555 343-4213 342-3585 338-5302 698-7316 642-8870 347-4507 886-9683 345-2640 345-2640 842-1556 664-2121