South Dakota Farm & Ranch January 2020

SD Farmers Union

UNITED IN TOUGH TIMES 2019 SD Farmers Union State Convention

9

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INSIDE THIS ISSUE On the cover

United in tough times: 2019 SD Farmers Union State Convention

9

Features

Coping with stress & depression

5

Wet weather results in uncertainty and decreased seed sales

7

Outlook for livestock markets improved for 2020

12

Market looking up for grain, livestock

14

SD townships make move to leave county

19

Meat consumption rising

22

Publisher JO N I H A R M S Editor L U K E H AG EN Advertising Director LO R I E H A N S EN Layout Design C H R I S JO H N S O N South Dakota Farm & Ranch is a monthly agricultural publication dedicated to informing South Dakota area farmers and ranchers about current topics, news and the future of agriculture. This publication fits the niche of our unique farmers and ranchers of South Dakota, and the diverseness we have in our state. Although the Missouri River divides our state, we are all South Dakotans and thank the land for supporting us each and every day.

You, our readers, may be livestock ranchers, or row crop farmers, and everywhere in between, however, we all have a common goal in mind. We feed and support the growing population and want the next generation to find that same love, dedication and support that agriculture can offer.

We’re all South Dakota farmers and ranchers, and with this publication, we want to showcase your successes, new technology, upcoming events, FFA and 4-H club news and much more.

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MENTAL HEALTH SPECIALIST EDUCATES FARMERS ON COPING WITH STRESS, DEPRESSION

A

The Daily Republic

By Sam Fosness

fter enduring through one of the most challenging years many local and area agriculture producers have ever experienced, it’s affected the mental health of some farmers.

Between the constant weather woes and volatile corn and grain prices that impacted the markets throughout most of 2019, depression, stress and anxiety have come as a result.

During the Jan. 2 agronomy meeting held by South Dakota State University Extension at Mitchell Technical Institute, a mental specialist held a discussion to help people recognize whether a fellow farmer is battling with severe depression, anxiety and stress.

“There have been so many uncontrollable factors this past year that have led to many farmers dealing with depression, stress and other mental health issues,” said Andrea Bjornestad, assistant professor and SDSU Extension mental health specialist. “It’s so important to know the signs of depression for not only someone you know or love but also for yourself. If they are ignored, serious health problems can result.”

Bjornestad detailed the telltale signs of stress and depression that farmers and their families may exhibit to a room full of agriculture producers during the agronomy meeting.

According to Bjornestad, depression and anxiety are increasing among agriculture producers, especially for women. Regardless of their role on the farm, Bjornestad said statistics have shown more women suffer from anxiety and depression when difficult challenges and hardships occur on the farm.

“Farmers and ranchers have one of the highest mortality rates from stress-related illnesses,” Bjornestad said, noting heart disease as a stress-related illness. “It can come in many forms, such as constant stomach pain, memory problems and the inability to concentrate.”

Bjornestad explained the differences between stress and depression, which have similarities. When dealing with depression, Bjornestad said nearly every aspect of daily living is affected, including work and home life. Feelings of sadness, hopelessness, discouragement and lack of motivation, are all telltale signs of depression. Stress, however, is a reaction to daily pressures one may

face, which can result in loss of sleep, migraine headaches and chest pains, Bjornestad said.

Recognizing these symptoms can be the difference in helping a farmer overcome a potential suicide attempt.

“If you start to notice someone isn’t engaging in activities and being social such as no longer attending church, that means they are likely beginning to isolate themselves,” Bjornestad said.

When isolation due to stress and depression begins for a farmer, Bjornestad said it’s a critical moment that could lead to more severe actions like suicide.

An increase in alcohol use, cigarette smoking and abnormal eating patterns, are several more signs that may point to stress and depression.

To help combat some of the stress and depression agriculture producers may be experiencing, Bjornestad

encouraged the room of farmers in attendance to maintain friendships with their neighbors and community members. Frequently talking among fellow farmers and producers can provide significant relief for farmers dealing with stress or depression, largely due to the fact they may have experienced similar challenges and have advice for overcoming those challenges, Bjornestad said.

“Take time out of your day for selfcare, and really work to surround yourself with loved ones, friends and other agriculture producers,” she said. “It’s important to know you’re not alone in dealing with these challenges.”

Agriculture producers who look at their operations as enterprise and economic opportunities are less prone to anxiety and depression, Bjornestad said. That means farmers who constantly view the family farm

operation solely as a way of life that is rooted in tradition are more prone to anxiety and depression.

Though many factors can contribute to why a farmer experiences stress, anxiety and depression, the thought of losing a family farm that may span over three to four generations is a crippling fear that Bjornestad farmers face when things are tough. Considering 96% of farms in South Dakota are multigenerational farms, Bjornestad said there are a lot of families who face that fear when times are tough.

“If the farm has been in the family for over a century it can put a huge amount of pressure on the family who is keeping the operation going,” she said. “Some things can happen that are out of farmers control like they did this past year, but know you’re not alone when times are tough.”

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WET WEATHER RESULTS IN UNCERTAINTY AND DECREASED SEED SALES

By Abbie Lambert The Daily Republic

hen Mitchell CHS Farmers Alliance sales manager Mark Van Dyke was asked what time frame producers purchase seeds he asked, “In a typical year or this year?”

A late harvest, that has yet to end for some farmers, and heavy moisture may impact the coming planting season.

Van Dyke said only 60% of growers have purchased seeds, a number far below the average amount.

“Compared to normal it’s definitely less activity,” Van Dyke said.

“Guys just haven’t made their minds up.”

SDSU Extension agronomy field specialist Sara Bauder attributed producers’ uncertainty to the late harvest and moisture the eastern part of the state has seen throughout the fall and winter.

“Many people have been very careful not to pre-pay for things that they typically would and may not have ordered all of their seed or any seed,” Bauder said. “This affects our seed sales people as well and a lot of agriculture businesses in the area.”

Beside less seed orders, producers

are ordering less seeds overall due to the wet conditions they may face in the spring. CHS Farmers Alliance saw normal ordering numbers in the 2018 season but saw a drastic decrease in seeds planted in spring 2019 due to the amount of precipitation the eastern part of the state received.

“In December we decided on plant A but by the time we got to June 1 we were on plant E and F,” Van Dyke said. “Based off of last year’s order time, the seed count is way off but off of what was actually planted last year, it’s pretty close to about the same amount.”

Van Dyke and Bauder both know of many producers who were harvesting up until Christmas, but the late harvest doesn’t guarantee a delay in the next planting season. Although crops left standing through the winter can accumulate more precipitation and moisture, ultimately the determining factor is the weather.

“A lot of it comes down to trafficability of the field. If it’s a very wet, heavily tilled field, they may have a harder time getting in there to do anything, versus a long-term no till field which may increase trafficability,” Bauder said. “However, at some point super saturated soil is just that, and may not be passible in a reason-

able time frame.”

CHS Farmers Alliance trade territory, which stretches east to Freeman and south to Dante, has seen a mix in orders based on location. Van Dyke said the further east areas of Bridewater and Freeman that received the highest precipitation amounts have placed less orders than locations to the west like White Lake who received less precipitation and were able to plant last season.

Despite current low seed sales, both Bauder and Van Dyke anticipate more seed orders will be placed in the future by producers.

“They will put a crop in, but obviously mother nature is going to play a big part,” Van Dyke said. “If it stays wet and continues snowing it’s going to affect it.”

“There is a lot of uncertainty because in a lot of cases the soil was saturated in the fall and there is a lot both anecdotal and scientific proof that there will be many acres of saturated soil out there this spring,” Bauder said. “When spring comes, a lot of these producers know that even if the precipitation stops today they are still going to be facing wet fields this spring.”

Another obstacle farmers and seed companies will face if planting is

delayed is the switching of maturities or the intended crop.

“When we’re switching maturities or crops that can be tough for both seed producers and seed salespeople,” Bauder said.

As of now, CHS Farmers Alliance has seen more corn sales than soybeans which Van Dyke contributed to the amount of producers that PPDed and cover cropped their fields in the previous year.

“The best crop to follow after is corn,” Van Dyke said. “In general, producers are planning on their normal corn and soybeans.”

Bauder said it’s impossible to predict with certainty what the future season holds for area farmers. The best thing producers can do is focus on their bottom line and working capital to make a financial plan of action.

Both Van Dyke and Bauder hope better weather and greater crop yields are in store for farmers this season.

“Coops are not successful if farmers aren’t successful,” Van Dyke said.

“Patience is a big thing, and it’s not what anyone wants to hear. We will most likely get more precipitation before it’s time to plant,” Bauder said. “We’ll just have to wait and see.”

JANUARY 2020 SOUTH DAKOTA FARM & RANCH 7

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UNITED IN TOUGH TIMES: 2019 SD FARMERS UNION STATE CONVENTION Lura Roti For South Dakota Farmers Union

S

tanding before members carrying a homeplate, S.D. Farmers Union President Doug Sombke explained that before he was passionate about his family and farming, he was passionate about baseball.

“Baseball has been a part of my life since I was young. I’ve learned a lot from the sport,” explains the fourth-generation Conde crop and cattle farmer who was re-elected to serve during the 2019 State Convention held in Aberdeen Dec. 10 and 11.

Of the skills he gained, the most valuable he says is holding oneself accountable to a higher stan-

dard. “How large is homeplate in the Major League?” he asked the crowd.

“17-inches,” a member yelled out.

“How large is homeplate in the Minor League?” he asked. “17-inches,” several attendees replied. “Homeplate is always 17-inches,” Sombke says.

He goes on to explain that a pitcher who can’t throw a ball over the 17-inch homeplate will lose their position. “Homeplate doesn’t change size to accommodate the pitcher.”

Sombke uses this analogy to make the point that although many challenges face them, they can rely on S.D. Farmers Union. “Farmers Union is still about what is impacting your life, what is happening on your farm

and working to make things better for you, your farm and your community. SDFU is accountable for the standards our members employ.

While at the same time, we hold our government leaders accountable to live up to our standards.”

Wayne Soren echoed Sombke’s comments. “Farmers Union has been fighting for farmers for more than a hundred years. Back then, it was so that farmers could be fairly compensated for their goods. One hundred years later, we are fighting for similar things…and we will continue to fight for equitable pay for what we grow,” says Soren, who was re-elected to serve as SDFU Vice President during

convention.

How does the organization know what farm and ranch families need?

It all begins with the grassroots policy developed by members during this annual convention. “Policy is why we got involved,” explains Wessington Springs farmer, Scott Kolousek, 44.

“You can bring issues that impact you and the members will do something about it.”

Kolousek serves as President of Jerauld County Farmers Union and was recently elected to serve on the state board of directors representing District 2. During state convention, he also served on the policy commitContinued on page 10

Farmers Union is still about what is impacting your life, what is happening on your farm and working to make things better for you, your farm and your community.

DOUG SOMBKE, SDFU President

Courtesy of SDFU SDFU President Doug Sombke speaks at the 2019 Farmers Union State Convention held Dec. 10 and 11 in Aberdeen.

JANUARY 2020 SOUTH DAKOTA FARM & RANCH 9

Continued from page 9 tee.

Policy committee is a group of members who listen to members’ concerns, and if there is not a current policy addressing a specific concern, the committee helps draft new policy that is then voted on by delegates during convention.

The policy that is approved by membership, which addresses national issues, is then brought to the national organization by delegates. If it is passed during the national convention, it is the policy that National Farmers Union uses to lobby for in D.C. “In Farmers Union, our national organization doesn’t tell members what we support. The state organizations tell NFU what we need them to work on for us,” Kolousek says.

Kolousek was among the seven SDFU members elected to serve as NFU delegates. The other delegates include Gerri Eide, Gettysburg; Jeff Kippley, Aberdeen; Terry Sestak, Tabor; Brian Cain, Miller; Rachel Kippley, Aberdeen; and Amber Kolousek, Wessington Springs.

“This is a critical time for trade and other issues impacting agriculture,” says Hank Wonnenberg, 35, Dallas farmer and loan officer. Joined by his wife, Melissa, 35, the couple say they make time for State Convention each year because they have seen how policy put in place by South Dakota farmers impacts positive change.

“SDFU drives positive momentum.

We see a direct correlation between SDFU policy and things that happen Continued on page 11

Courtesy of SDFU Dallas farmers, Hank and Melissa Wonnenberg stand next to a South Dakota Farmers Union during the 2019 Farmers Union State Convention held on Dec. 10 and 11 in Aberdeen.

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Continued from page 10 to help agriculture, for example, the governor’s decision to run the state fleet on E30.”

In addition to policy, several relevant topics were addressed by speakers and panelists during convention.

“S.D. Farmers Union relied on input from a portion of our more than 18,000 members when we developed the line-up for our 2019 State Convention. The speakers and panels you see on our agenda came from discussions with South Dakota family farmers, ranchers and ag supporters,” says Karla Hofhenke, SDFU Executive Director.

Expanding his knowledge base is one of many reasons, Aberdeen farmer, Kirk Schaunaman, 59, makes time for convention. “It’s good to always keep learning. In this industry, nothing is the same year-to-year. We are always working in an environment of change and selling into an environment of change. The minute you think you have things figured out; Mother Nature throws a curve ball – like this year.”

And convention is a good place to discover you’re not the only producer facing challenges, says Oacoma rancher, David Reis. “We all get together during convention and realize we all face the same challenges this growing season,” says the cow/ calf producer. “When times are challenging, convention is an encouragement because you see, together we do have a bigger voice and someone might be listening.”

Getting together with old friends is Franklin Olson’s incentive for attending convention. The 86-year-old Pierpont farmer has been attending convention since 1958. “I enjoy see-

ing good friends and keeping up with what is going on in the ag world.”

Spending our time with a purpose, was among many positive messages shared by speaker Mike Oster. Today a speaker, trainer, author and Brigadier General with the Army National Guard, Oster grew up on a South Dakota farm. “We can always make more money, but we cannot make more time. So, we want to spend it on purpose – budget our time, figure out where we spend our time and commit to it.”

His message resonated with Beresford farmer, Larry Birgen. “A year like this, with so many things out of our hands, shows you that the little things matter.”

Election results Five South Dakota farmers were elected to serve S.D. Farmers Union (SDFU) members during State Convention. Conde farmer Doug Sombke was re-elected to serve as SDFU President and Lake Preston farmer Wayne Soren was re-elected to serve as SDFU Vice President. Wessington Springs farmer Scott Kolousek was newly elected to serve on the board of directors representing District 2, Oacoma rancher, David Reis was elected to serve on the board of directors representing District 4 and Parade rancher Oren Lesmeister was newly elected to serve on the board of directors representing District 6.

Delegates elected to represent South Dakota Farmers Union during the National Farmers Union Convention held March 2020 include Gerri Eide, Gettysburg; Jeff Kippley, Aberdeen; Terry Sestak, Tabor; Scott Kolousek, Wessington Springs; Brian Cain, Miller; Rachel Kippley, Aberdeen and Amber Kolousek, Wessington Springs.

We all get together during convention and realize we all face the same challenges this growing season.

DAVID REIS, Oacoma rancher

Courtesy of SDFU Wilmot farmer, Orrie Swayze discusses policy during the 2019 Farmers Union State Convention held on Dec. 10 and 11 in Aberdeen.

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OUTLOOK FOR LIVESTOCK MARKETS IMPROVED FOR 2020

T

By Michelle Rook Forum News Service

he livestock industry was caught in a tug of war in 2019 due to big supplies, but strong demand or at least the hope for demand from China. However, market experts are looking for improved trade prospects and increased exports of all proteins in 2020 to chew into some of the supply.

The U.S. livestock industry is the best position to capitalize on the trade deals that are falling in line.

The U.S.-Japan agreement went into effect Jan. 1 and will level the playing field for pork and beef producers with countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The House passed the U.S.-Mexico-Canada Agreement in December 2019 and the Senate is also expected to pass the deal in January. Plus, a China deal could also be positive, especially for the pork industry with the devastation of their swine herd due to African swine fever.

Agweek TV NDSU Livestock Economist Tim Petry and Bryan Strommen, with Progressive Ag of Fargo, N.D., see some positive indicators in the livestock markets to start 2020.

Continued on page 13

12 SOUTH DAKOTA FARM & RANCH JANUARY 2020

Continued from page 12 “I think the export demand will be good for pork, chicken and beef,” says Tim Petry, North Dakota State University Extension livestock economist.

That demand will balance out the cattle supplies for 2020, which Petry says should be close to 2019.

“We’re expecting only a 1 percent increase in beef production this year, and with strong domestic demand and what could be record exports, that will really help us out on the price side,” he says.

Bryan Strommen, with Progressive Ag of Fargo, N.D., says September cattle-on-feed numbers were smaller for the first time since December 2016.

“So, I do think our supplies tighten as we move forward, but we did have some larger placements from grass this summer,” he says.

Placements for October through December were up from a year ago.

“I think you look at the pasture conditions this summer, a lot of those calves were held out of the feedlots.

We had good grass, and those calves came in the feedlot this fall because of that,” Strommen says.

The live cattle futures took a huge plunge in the summer following the fire at the Tyson plant in Holcomb, Kan. The market hit a 10-year low Sept. 9 in reaction, but then rallied over $20 as packers were making huge margins and were able to bid up for cattle. The rally was also

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sponsored by funding buying. Current indications are the commodity funds are going to continue to defend that long position, which provided some good hedging levels.

As far as price projections and marketing advice, Petry says if everything comes together, he thinks cattle prices can exceed 2019. However, he cautions fed cattle producers not to drop their guard.

“Remember the Tyson fire? We weren’t expecting it. What happened to prices? They dropped $13 in a short time. So take some price protection,” he advises.

For feeder cattle, Petry says futures prices are above last year. However, the big key will be the availability of corn and what the price will be going forward.

For the hog market, analysts say exports will be the key as supplies have been at record levels every year since 2015 and are projected to be up another 3 percent to 3.5 percent in 2020.

“The potential for exports looks good particularly into China and all of Asia because African swine fever is all over. About a fourth of the world’s production is going to be lost in 2020 so there is going to be a lot of need for pork,” Petry says.

Strommen says the export picture for pork is very encouraging, especially with that growing need for protein globally.

“When you look at the export sales that we’ve done in 2019, they are

substantially higher than 2018, and export sales for 2020 are already substantially above the five-year average,” he says.

Hog producers had some good marketing opportunities on the futures in 2019 and Petry says there are still good price levels in the deferred futures for 2020 they can lock in.

“Don’t get lulled to sleep. We don’t know all the fine print of the China deal yet, so some price protection is warranted,” he says.

Strommen agrees. “You don’t have to do 100 percent of what you’ve got for production, but do bits and pieces. Know your break even and take advantage of those opportunities.”

Michelle Rook / Forum News Service September cattle-on-feed numbers were smaller for the first time since December 2016.

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T

2020 MARKET LOOKING UP FOR GRAIN, LIVESTOCK

By Michelle Rook Forum News Service

he grain markets in 2019 were dominated by headlines tied to the trade war, weather disasters and production concerns across the Corn Belt, as well as weaker demand.

The outlook for 2020 is more optimistic on the demand side as the United States is on the cusp of a more positive trade environment. The big unknown is still the weather for the planting and growing season and what that will mean for acreage and crop size.

Market analysts see potential in the trade deals that have been struck with Japan and the U.S.-Mexico-Canada Agreement. However, they’re cautiously optimistic about the “phase one” deal with China and the possibility of $40 billion of purchases in 2020 and 2021. That’s partially because the shopping list and other specifics are still vague. DuWayne Bosse, president and owner of Bolt Marketing of Britton, S.D., says the devil is in the details. He says commodity funds,

Agweek TV Market analysts Randy Martinson and DuWayne Bosse see a more optimistic outlook for 2020 in the grain markets.

Continued on page 15

14 SOUTH DAKOTA FARM & RANCH JANUARY 2020

Continued from page 14 which were short in much of the grain complex before the announcement of the China deal, have been covering some of that position and that has produced a rally in the markets. However, he thinks, to keep it going, fund managers want not only a signed deal but confirmed purchases by the Chinese.

The China deal may not be signed until Jan. 15. The U.S. Department of Agriculture World Agricultural Supply and Demand Estimates come out Jan. 10, and Bosse said he doesn’t think the new China demand will be reflected in the report.

“The January report is too soon for USDA to make adjustments,” he says.

Farmers and the industry are anxious for the January estimates because many think the last several reports have failed to adequately account for the record 20 million prevented planting acres in the U.S. and the yield drag from late planting.

Randy Martinson, president and owner of Martinson Ag Risk Management of Fargo, N.D., said he thinks USDA will finally have to recognize those factors in the final report, plus the impact of the late harvest.

“We do know that there will be a reduction in harvested corn acres; it’s just a matter of how much,” he says. However, the report won’t take into consideration the low quality or high moisture of the corn.

Martinson is less certain about what revisions USDA will make for soybeans.

“Most of the soybeans did get harvested. There’s just a few left over in North Dakota and South Dakota. I think yield could come down a little bit though,” he says.

The unharvested acres of corn in the northern Corn Belt will be treated as on-farm storage by USDA, and farmers will have to take their best guess at what is still left in the field when they answer the survey.

“And then we’ll see come springtime when all of it gets harvested what’s really out there,” Bosse says.

However, he thinks the January report could be disappointing for corn because the real adjustments will not show up until the Quarterly Stocks Report.

After report, South American weather is the focus

After the report, the grain markets will quickly turn their attention to the South American crop and weather.

Brazil farmers planted record acreage of both corn and soybeans for 2020 with the currency advantage in their country as an incentive.

Weather has been nearly ideal, and so there are expectations for record corn and soybean production in that area. Meanwhile, Argentina had some dryness during the planting season, which may have trimmed acreage

and yield for both corn and soybeans, and the wheat crop has already been reduced as a result.

Bosse says at the end of 2019, about 50% of the crop areas were showing stress, but the real critical time period will be the pod filling stage.

“The longer-term weather guys are kind of hinting that it will shift to and stay dry in Argentina, which could produce some fireworks in the markets coming up,” he says.

Acreage and weather wildcard

USDA’s baseline projections call for a record 94.5 million acres of corn in the U.S. in 2020 and 84 million acres of soybeans.

“I think we will see more corn acres. Corn has worked for a lot of growers even last year with the late as the planting. With a little change in hybrids yields were better than most guys anticipated. We had the test weight and moisture issue in the Northern Plains but in most of the Corn Belt farmers will realize how good corn did,” Martinson says.

The question becomes whether farmers can plant that many acres of corn when there is still 2019 crop in the field that hasn’t been harvested.

Bosse still thinks it’s possible.

“I’m at more like 93 million corn acres. A lot of that is because the eastern Corn Belt dried up quite a bit going into fall, and they’ve got prevent plant they will be able to roll

into corn,” he says.

He agrees though that in the northern Corn Belt, it’s hard for farmers to think about corn when they don’t have last year’s crop harvested, and so they may plant more soybeans or again take prevented planting.

Wheat acreage will be down in 2020 as the winter wheat plantings are already at 110-year lows and there will be less spring wheat planted.

“Spring wheat acres are going to be down because spring wheat didn’t work in 2019 in a lot of areas due to the delayed harvest and the discounts were a killer, especially the falling numbers. And with as wet as we are, it’s going to be tough to get that wheat planted in a timely manner,” Martinson says.

Bosse said he thinks there is a bullish story for spring wheat in 2020.

“I think USDA underestimated the crop that didn’t get harvested. If we have less acres and China buys some spring wheat for blending, that could be positive,” he says.

Both agree that the weather for the planting and growing season will be a big key for market direction in 2020. The National Oceanic and Atmospheric Administration’s 90-day outlook is for above normal precipitation, which could be an unfavorable set-up for the planting season with an already saturated soil profile in many areas. That could Continued on page 17

Most of the soybeans did get harvested. There’s just a few left over in North Dakota and South Dakota. I think yield could come down a little bit though, – RANDY MARTINSON, President & Owner, Ag Risk Management

Michelle Rook / Forum News Service A more optimistic trade picture could be positive for soybeans, but many questions remain, including how many soybeans get planted in the spring and how South American weather plays out.

JANUARY 2020 SOUTH DAKOTA FARM & RANCH 15

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Continued from page 15 produce another spring of planting delays and prevented planting.

However, spring is still a ways away and Bosse says if weather turns more favorable and farmers get the crop planted in 2020, ending stocks for all crops will be much higher than 2019 and that could pressure prices.

Cash and futures market disconnect

While the futures market has not been pricing in less production in 2019, cash basis levels during and after harvest have been the tightest in five years across the entire Corn Belt. This has provided some opportunities for farmers to sell their crop at higher prices than a year ago.

The disconnect between the futures and the cash markets has been perplexing. Martinson says this is a local demand issue that he attributes to the lack of available crop for processing ethanol, soybean crushing and wheat milling. He also points to the slow harvest.

“I think it’s been an incentive to try to get farmers to move corn at a time frame when a lot of them were still harvesting,” he says.

However, Bosse thinks the crop just isn’t there.

“You know that’s what the basis screams is that last year the old crop size just was not there,” he says.

Marketing strategy going forward

So how do producers take advantage of strong cash basis levels and still leave the upside open in case there is a rally in the futures market

due to better demand or crop problems? With all the unknowns regarding weather for the 2020 growing season and if farmers will get the crop planted, Bosse has set price targets to sell futures or cash but isn’t going to sell in the spring if there is a rally.

“I like buying the short-dated new crop call options. For soybeans, I’m buying the June options, as I think that will be enough time, and for corn, I’m buying the July and August.

Those are short-dated new crop, so they go off the new crop futures, but they expire in the middle of summer, so they’re cheaper.”

He says they are really “courage calls,” which means farmers have the courage to sell when they get to their target.

The strategy is similar for Martinson, including wheat. He says he hasn’t done a lot of pricing for the 2020 crop yet because he’s waiting until after the January report.

“No one is really interested in doing futures-fixed contracts because they don’t know what they’re going to plant or raise. So, I look at puts, and I do like the idea if you sell some cash grain, cover it with the short-dated options,” he says.

Also, for old crop, Martinson suggests using basis fixed contracts to take advantage of the strong basis.

“Move grain against that. The March is decent, and in the short term, we can get the grain into the system right after the first of the year. However, I really want ownership through that January report just in case it’s friendly and we get more specifics on the China trade deal,” he says.

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Michelle Rook / Forum News Service Irene, S.D., farmer Simon Healy helped organize a meeting Jan. 4 with more than 150 people in attendance to discuss the options townships have in separating from Yankton County.

By Michelle Rook Forum News Service YANKTON COUNTY, S.D. — Residents in four South Dakota townships could make history if they’re successful in seceding from Yankton County.

The action is being led by farmers who say the Yankton County Commission is no longer allowing them the freedom to operate because of county agricultural zoning rules.

Irene farmer Simon Healy helped organize a meeting Jan. 4 in Irene with more than 150 people in attendance to discuss the options.

“The commission that we have now has gone above and beyond to make it hard for livestock in our community and making the conditional use permits for ... one chicken.

For one animal unit, you had to get state certified every year,” he says.

Previously, Healy says, the county

followed the state rules for granting a conditional use permit for livestock, and operations were permitted and inspected at 1000 animal units and above.

The residents of Mayfield, Turkey Valley, Marindahl and Walshtown townships are in the northern edge of the county. They were originally talking about merging the townships with Turner County, but they now have a second option, which is form-

ing their own county. It is possible that the new county could merge with Turner or another county in the future.

At the meeting, Sioux Falls attorney Brian Donahoe detailed those options under South Dakota codified law. Donahoe explained that to bring either action to a vote in the November election, it requires signatures from 15% of the residents Continued on page 20

JANUARY 2020 SOUTH DAKOTA FARM & RANCH 19

Continued from page 19 in the townships, plus the county or counties.

“For the option of merging with Turner County it requires 15% of the registered voters of Yankton County and 15% of the registered voters of Turner County,” he says. It is done by a petition that is presented to the county commissioners in each county, and they set a vote, which would likely coincide with the November general election.

“Each county and a majority of the people who live in the township seeking to merge with Turner County have to approve that by a simple majority,” he says.

To bring a vote on making a separate county, Donahoe says it would only require 15% of the township members sign a petition. It would then go to a vote of the entire county and a majority is still needed for approval.

“And it’s a majority in each area.

So, a majority of people who live in the potential new county and a

majority of the people who live in the greater of Yankton County,” he says.

“That may be a little easier road to go because we don’t have to have Turner County’s approval right now, we just have to focus on Yankton.

Plus, the signing of the petition would be a heck of a lot easier with only 15% of the four townships having to sign off versus 15% of the whole county,” he says.

However, Healy admits getting a majority of Yankton County voters to pass their petition will be a tough lift.

He says they’ll be holding organizational meetings in the coming days to determine which option they are taking and start circulating petitions.

If the townships merge with Turner County, Donahoe says they would be subject to that county’s livestock zoning ordinance. However, if they create a new county, they could write their own rules or not have any county zoning ordinances. In the latter case, they would still fall under state general permit. Donahoe says once the new county was organized, it would also have to form its own gov-

ernment and pick a county seat.

Dan Klimisch is chairman of the Yankton County Commission and says he was taken back by the announcement.

“It was surprising because none of the leaders have come in and voiced any concern whatsoever. Their reasons are based on inaccuracies. I think if they would have come and spoke with us first, we could have ironed a lot of this out,” he says.

According to Klimisch, the commission did not make any changes in the county livestock zoning rules, which were put in place in 2006 detailing the conditional use permit process. It covers not just livestock, but any business.

“Not one part of our zoning has been changed. It’s the same thing we’ve had for the last 14 years,” he says.

Klimisch also says they’re not changing the way the rules are being enforced, including the Class F division for from one to 299 animal units. He says the idea that they would require a conditional use per-

We love agriculture. It’s No. 1 here, but this new type of industrial ag needs to be safe for all residents. I see a future for livestock development in Yankton County, but it needs to be done right.

DAN KLIMISCH, Yankton County Commission chairman

20 SOUTH DAKOTA FARM & RANCH JANUARY 2020

mit for one chicken is false.

“I feel that we are living up to the intent of the zoning ordinance,” he says. In fact, he says he thinks the past commission failed to be consistent with the Class F permitting requirements because they required a conditional use permit for some projects but building permits for others.

“Really what we brought was even dealing with everybody at having a conditional use process, that way the applicants and the neighbors and surrounding people know what’s going on,” Klimisch says.

The Yankton County Commission has been called anti-livestock, which Klimisch refutes. He says he’s a fifth-generation farmer, his brother and father farm full-time, and his family has been farming in Yankton for more than 136 years.

“We love agriculture. It’s No. 1 here, but this new type of industrial ag needs to be safe for all residents.

I see a future for livestock development in Yankton County, but it needs to be done right,” he says.

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PO BOX 1288 • MITCHELL, SD • 605-996-5514 JANUARY 2020 SOUTH DAKOTA FARM & RANCH 21

REPORT: MEAT CONSUMPTION RISING

Forum News Service file photo Chicken wings once held little appeal to many consumers but have gained popularity over time.

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By Jonathan Knutson Forum News Service

ark Twain is supposed to have said, “The reports of my death have been greatly exaggerated.” It appears the same can be said for the widespread perception that Americans on average have turned against eating meat.

“There’s a misnomer out there that meat consumption is falling. But the statistics show otherwise,” said Tim Petry, North Dakota State University livestock marketing economist.

Some of the statistics are included in a December report from the U.S. Department of Agriculture’s Economic Research Service. It finds that per-capita availability — an indirect measure of consumption — of red meat, poultry and seafood is rising in the United States.

Among the findings:

► The per capita supply of red meat, poultry and fish/shellfish available for Americans to eat after adjusting for losses (such as spoilage and plate loss) rose from 133.5 pounds in 2014 to 143.9 pounds in 2017. ► Red meat (beef, pork, veal and lamb) accounted for 51% of 2017’s 143.9-pound total, compared with 42% for poultry (chicken and turkey) and 7% for fish and shellfish. ► Over 2015-2017, beef had the largest percentage increase in per capita loss-adjusted availability — growing by 6%. That reflects recovering consumer income after the 2007-2009 recession and stable or declining prices.

“Consumers still like beef. They’re still eating it,” Petry said.

To be sure, food availability per capita data doesn’t measure actual consumption. But it does provide an indirect measure of trends in food

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use and is an indication of whether Americans, on average, are consuming more or less of various foods over time, according to the ERS. If you’re wondering, food availability is “calculated by adding total annual production, imports and beginning stocks of a particular commodity and then subtracting exports, ending stocks and nonfood uses. Per capita estimates are calculated using population estimates for that particular year,” the Economic Research Service said.

Chicken and, to a lesser extent, turkey are long-term stars in U.S. meat consumption, the ERS report noted.

Loss-adjusted turkey availability doubled from 4 pounds per capita in 1970 to 8.2 pounds per capita in 1989, and has remained between 8 and 9 pounds since then.

Loss-adjusted chicken availability

rose from 22.4 pounds per capita in 1970 to 52.3 pounds per capita in 2017.

More efficient chicken and turkey production has led to lower bird mortality rates and a higher average weight per bird, boosting supplies and holding down prices, the ERS report said.

Changing consumer tastes and preferences also are a factor, Petry said.

For example, chicken wings once held little appeal to many consumers.

Over time, however, they’ve become very popular, he said.

One thing that hasn’t changed is meat’s popularity with consumers, he said.

“People continue to like and eat meat,” he said, adding that rising meat production is contributing to relatively plentiful and affordable supplies.

1 Feb. 13, 2020 1 P.M. at the Ranch: White Lake, SD

Selling:

135 ANGUS AND 15 SIM ANGUS BULLS

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Auctioneer: Seth Weishaar 605.210.1124

This sale will be broadcast live on the internet.

1. Mohnen Niobrara 1429 • Reg. # 19545457 Real time bidding & proxy bidding available.

BW-86# ADJ. 205 – 855# ADJ. 365 – 1437# Sire: Connealy Niobrara 5451 • MGS: PVF Insight 0129 BW +2.7 WW +83 Milk +35 YW +143 MB +.53 REA +.98 2. Mohnen Success 1439 • Reg. # 19545487 BW – 80# ADJ. 205 – 932# ADJ. 365 – 1601# Sire: Mohnen Success 187 • MGS: VAR Generation BW +3.6 WW +88 Milk +21 YW +146

MB +.21

REA +.87

3. Mohnen Cowboy Up 2479 • Reg. # 19522657 BW -94# ADJ. 205 – 880# ADJ. 365 – 1470# Sire: HA Cowboy UP MGS: Mohnen Crown Royal 316 BW +3.9 WW +84 Milk +18 YW +147

MB +.32

REA +.60

4. Mohnen Legendary 3899 BW – 91# ADJ. 205 – 886# ADJ. 365 – 1497# Sire: Connealy Legendary MGS: SAV Resource BW +2.9 WW +86 Milk +14 YW +145

MB +.66

REA +1.13

5. Mohnen Prince 2959 • Reg. # 19567291 BW – 81# ADJ. 205 – 847# ADJ. 365 – 1441# Sire: Connealy Confidence Plus • MGS: SAV Pioneer BW +.6 WW +65 Milk +32 YW +121

MB +.44

REA +.60

6. Mohnen President 2049 • Reg. # 19558032 BW – 99# ADJ. 205 – 870# ADJ. 365 – 1547# Sire: SAV President • MGS: Mohnen Long Distance 1639 BW +4.3 WW +77 Milk +29 YW +141 MB +.42

REA +.73

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25770 370th Ave • White Lake, SD 5738 Josh: 605.680.0125 • Steve 605.680.3063 • John 605.680.2063 Home 605.249.2719 mohnen@midstatesd.net • www.mohnenangus.com JANUARY 2020 SOUTH DAKOTA FARM & RANCH 23

TUESDAY, FEBRUARY 11TH • 12:00 NOON AT THE RANCH 27262 424th Avenue, Emery, South Dakota 57332

W/C Bankroll 811D

Selling 20 direct progeny!

When selecting the next genetics for your herd, make sure you’re on the right side of the fence!

SELLING 280 HEAD! SIMMENTAL, SIMANGUS™ & ANGUS

802F SimAngus™ S A

CDI Innovator x Dream Catcher Safe to W/C Night Watch!

8041F S SimAngus™ A ™

160 PERFORMANCE BULLS 120 YEARLING BULLS 40 STRONG AGED BULLS 120 REGISTERED BRED HEIFERS SEMEN & EMBRYOS

W/C Bankroll x Bushs Focus Safe to W/C Lock Down

OFFICE 605-825-4024 605 825 4024 DALE 605-661-3625 SCOTT 605-682-9610 JARED 605-933-1661 27262 424th Avenue, Emery, SD www.werningcattle.com

Miss Werning KP 8543U

Selling 5 future donor direct daughters by Lock N Load, Loaded Up, & Insight as well as two big time sons by CDI CEO!

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Miss Werning 534R

Selling 20 direct progeny by SAV Raindance, Rubys Turnpike, Cornerstone & Executive Order!

Eberspacher Enterprises Inc. Val & Lori Eberspacher 507-532-6694 Val Eberspacher Cell 612-805-7405 Email: sales@ebersale.com Like us on Facebook for all sale updates!

2904 County Road 6, Marshall, MN 56258

www.ebersale.com