South Dakota Farm & Ranch February 2020

PRESORTED STANDARD ECRWSS US POSTAGE PAID PERMIT 55 MITCHELL, SD

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FEBRUARY 2020

12

SD FARMERS LOOKING TO 2020 GROWING SEASON

SWEEPING CHANGES TO CRP CRP meeting update

5

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FORAGE & COVER CROPS BE PREPARED FOR 2020!

INSIDE THIS ISSUE

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Sweeping changes to CRP: CRP meeting update

Looking to the 2020 growing season: Seed selection is a critical part of planning

4 12

Features

Lack of drought in South Dakota Gregory SD farmer speaks to WTO Soil Health Awareness Day Interest in CRP may drop Ag conditions better now than the 1980s Gibbons named director for ag positions at SDSU Soybean logjam may clog Brazil ports Palmer amaranth a threat to SD crops Rental rates appear stable

7 9 15 17 19 21 21 22 25

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.

To subscribe to this FREE publication, contact South Dakota Farm & Ranch.

Contact Us PO BOX 1288 • MITCHELL , SD 605-996-5514

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FEBRUARY 2020 SOUTH DAKOTA FARM & RANCH 3

SWEEPING CHANGES TO CRP

Sam Fosness / Republic

Kim Eddy, program technician with the Farm Service Agency (FSA) in Woonsocket presents information regarding the Conservation Reserve Program (CRP) during a Jan. 30 in Wessington Springs. Roughly 35 farmers and land owners attended the meeting.

A

Sam Fosness The Daily Republic

rea farmers and landowners received a wealth of information on Jan. 30 regarding the sweeping changes that will impact the Conservation Reserve Program.

Industry professionals held a meeting in Wessington Springs, where they detailed some of the changes that are a result of the 2018 farm bill.

The Conservation Reserve Program (CRP) is a federal program that gives landowners an annual per-acre payment to take environmentally sensitive farmland out of production aimed to conserve the soil. It will look a lot different under the most recent 2018 farm bill. Kim Eddy, program technician with the Farm Service Agency (FSA) in Woonsocket, broke down the changes that the CRP will undergo and how it will affect participating area farmers and landowners.

“CRP has had a lot of changes in the new farm bill, and a lot of things have been taken away. But there have been some improvements, too,” Eddy said. “Your general sign-ups tend to lean toward land that doesn’t have wetlands, and it helps you qualify for the program.”

The United States Agriculture Department (USDA) pays the partic-

ipating farmers and landowners who enroll their land in the CRP with an annual payment, which is called a soil rental rate.

The USDA’s CRP general sign-up period for soil rental rental rates will be open from now until Feb. 28, while the continuous sign-up period is open until Aug. 21. Eddy said the annual rental rate for those who enroll within the general sign-up time period will receive less payments than they did in previous years, as the USDA will pay for 85% of the soil rate that will be enrolled in CRP. “They used to give 100% of the soil rate, plus they kicked in a 20% incentive, but now that’s been taken away,” Eddy said.

For the continuous sign-up for CRP, Eddy said the changes lean toward farmers and landowners with wetland areas, noting there are ratios of wetlands that landowners must have on their acreage in order to get 90% of the soil rental rate payments.

Soil rental rates are prorated at 90% for continuous sign-up, according to Eddy. The rental rates will be reviewed annually.

“Often times it is a 4:1 ratio, which means for every 1 acre of wetland you get an additional 4 acres of CRP land in,” Eddy said.

4 SOUTH DAKOTA FARM & RANCH february 2020

Sam Fosness / Republic

Shilo Comeau, U.S. Fish and Wildlife Services easement specialist with the Wetland Management District out of Huron, talks with an area farmer on Jan. 30 in Wessington Springs during the Conservation Reserve Program meeting.

The soil rental rates for CRP are based off the county averages of where the land is located, which is figured by compiling the National Agricultural Statistic Services (NASS). Each year, farmers and landowners are supposed to fill out the NASS report, which Eddy stressed is important for farmers and landowners to complete with accuracy.

“That is what drives the CRP soil rental rates, and you as renters and landowners should fill them out as honest as possible, because it really can make or break how CRP is offered to you all as a whole,” Eddy said.

“A couple years ago, soil rates were crazy, and it was a big mess. That was largely due to the NASS report not being filled out correctly.”

Another change in the program is the cost-share payments for CRP participants. The cost-share payments of the actual cost to install the CRP practice is now capped at 50%, Eddy said.

On a more positive note, Eddy said CRP participants will now have the ability to plant trees, as they will be included in the program. However, she reminded the attendees at the meeting of the 50% cost-share that will be in effect.

Shilo Comeau, U.S. Fish and Wildlife Services easement specialist with the Wetland Management District out of Huron, provided additional information regarding the conservation easement process.

Comeau said the Wetland Management District has been directed to send letters to landowners who have conservation easements on their property, which are designed to inform landowners of where the boundaries of their conservation easement are located.

“It’s not a violation notice of any kind. It’s intended to make people aware that they have an easement, which will show the boundaries of their conservation easement,” Comeau said.

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WET YEAR AT LEAST KEEPS THE DROUGHT AWAY

T

here was not much solace in how 2019 MARCUS turned out from a TRAXLER weather standpoint in South Assistant editor Dakota.

After all, it was the wettest in 125 years of record-keeping in the state. And the acres of corn sticking up through snowbanks, unharvested from fall, give an indication of the point from which 2020 is starting.

But there is one notable bright spot, even if it’s hard to see through dreary, ready-to-rain-or-snow clouds: South Dakota has now spent the last year without drought.

The state, according to the National Drought Mitigation Center’s U.S. Drought Monitor at the University of Nebraska-Lincoln, has not had a drought distinction of any kind since Feb. 5, 2019, when 4.75 percent of the state had the minimum designation. Since then, South Dakota has not spent any time in the five classifications that the U.S. Drought Monitor uses, ranging from abnormally dry up through moderate, severe and extreme drought to the worst classification: exceptional drought.

That’s the case for the entire Midwest along the Ohio, Mississippi and Missouri river valleys, all which were states that dealt with record seasons or similar types of terminology, such as excessively wet, or 99th percentile rainfall seasons.

The state has not had a severe drought designation since late 2017 and has not had an exceptional drought label since the start of 2013, when the entire state had at least severe drought designations, and the south-central and southeastern parts of the state were in the exceptional drought categories. That year was set up by Sioux Falls, for example, having its second-driest June on record and its driest July in history, according to National Weather Service records, and drought conditions only got worse in the late summer and autumn months.

The drought topic pops into my mind for a minute each week, thumbing through my emails, because I get the weekly updates from the Drought Monitor, giving a rundown of the national outlook and a peek at how South Dakota is shaping up. The outlook is created based on cli-



Continued on page 8

february 2020 SOUTH DAKOTA FARM & RANCH 7

Continued from page 7 matic, hydrologic and soil condition reports. For most of the last few years, it has fortunately been a non-story in South Dakota.

But as always, there is drought in various parts of the country and the world, even if just 10 percent of the country was experiencing moderate drought or worse. There are stories from the Rio Grande Valley in southern Texas about drought conditions and praying for the skies to open up. On the other side of the globe, Australia has dealt with droughts leading to duststorms and wildfires (and to make matters worse, severe storms have followed and caused additional damage.)

Some experts and scientists have made the argument that droughts are just as damaging, if not more so than flooding. The World Bank argued in 2017 that repeated droughts around the world are destroying enough farm produce to feed 81 million people for a year, and are four times more costly for economies than floods.

The study’s author said that more extreme events — more dry weather and more wet weather — are impacting our lives and future. It would seem there are instances on each end of that spectrum over the last decade in South Dakota.

For the sake of our 2020 growing season, let’s hope our weather can find some middle ground.

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GREGORY FARMER SPEAKS TO WORLD TRADE ORGANIZATION

Courtesy image

Gregory, South Dakota farmer, Hank Wonnenberg (back row third from left), represented North America together with a young producer from Canada and gathered together with 14 young farmers from across the globe to share ideas for sustainable agriculture with members of the World Trade Organization (WTO) during the Global Forum on Food and Agriculture held in Berlin Germany during International Green Week, the world’s largest agriculture and food exhibition. The group is pictured here with Julia Klockner (center) the Federal Minister for Food, Agriculture and Consumer Protection in Germany. ministers and ag secretaries representing 74 countries, to the two-page document he and 14 other young proifteen minutes.

A small group of young farm- ducers developed throughout five days ers from across the globe, cap- of discussion.

The group was tasked with suggesttured the attention of World Trade Organization (WTO) members for 15 ing sustainable agriculture solutions minutes, sharing their ideas for sus- that would impact all aspects of sustainable agriculture during the Global tainability — ecological, economic and Forum on Food and Agriculture held in social. Basically, the group needed to Berlin Germany during International take a holistic approach to sustainable Green Week, the world’s largest agri- agriculture and the role trade plays in helping achieve sustainability. culture and food exhibition.

Wonnenberg explained the suggesGregory, South Dakota farmer, Hank Wonnenberg, represented tions needed to: ► Increase farmers’ ability to earn North America together with a young producer from Canada. “They said a profit; ► Provide consumers with ready they were in awe of the proposal we came up with,” recalls Wonnenberg, access to healthy, safe food at affordof response from WTO members, ag able prices; and

By Lura Roti South Dakota Farmers Union

F

SEED

For Farmers.

By Farmers.

► Utilize farming practices that protect soil and water resources.

“Through the document, we bring sustainability full circle to how, international trade can effectively promote sustainable agriculture in all categories,” explained Wonnenberg, a fourth-generation cattle producer and agricultural banker/appraiser for First Fidelity Bank.

Nominated by South Dakota Farmers Union to serve on this forum, Wonnenberg, 35, took the fact he was the only U.S. farmer to heart. “Initially, I felt intimidated. But once I got to know the young farmers from other countries, I felt comfortable,” says Wonnenberg, who was the oldest family farmer.

He added that his active involvement in S.D. Farmers Union and par-

ticipation in the organization’s state policy discussions helped prepare him.

“Involvement in Farmers Union helped me be more in tune with what is going on in agriculture in the U.S. and at different levels of agriculture,” he says.

“Because I am a farmer, and a banker, I am familiar with the struggles farmers face.”

Wonnenberg added that the forum was structured similar Farmers Union policy discussions. “Everyone was given an opportunity to talk and listen.

We all had a voice.”

Of the young producers involved in the discussion, Wonnenberg was among only a handful of farmers with an off-farm career.

Continued on page 11

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Involvement in Farmers Union helped me be more in tune with what is going on in agriculture in the U.S. and at different levels of agriculture. Because I am a farmer, and a banker, I am familiar with the struggles farmers face.

HANK WONNENBERG Continued from page 9 Based on the challenges he sees U.S. farmers and ranchers face, Wonnenberg brought forth four sustainability suggestions which made it into the final recommendations. ► Universal traceability standards — where all products, from all countries would have country of origin labeling. “The ag minsters and parliament members I spoke with about this, were supportive of it,” Wonnenberg says. ► Farmer cooperatives, where farmers would band together to receive a better price for their goods. ► Regenerative agriculture management practices ► Improving regulations and increasing transparency regarding market speculations “I was surprised and pleased that nearly everything I brought up was adopted,” Wonnenberg says.

To read the document Wonnenberg and other young producers developed, read this article on our website at www.sdfu.org and click on the News tab.

Observations of Germany Wonnenberg’s wife, Melissa, paid her own way to travel with him.

Although she was unable to participate in discussions, she ended up serving as a pseudo-tour guide.

“Melissa had a good handle on the public transportation system, so she ended up helping me and the other young producers get around Berlin — she made sure we were where we needed to be,” he explains.

While in Germany, Melissa says she witnessed local farmers as they took to the streets of their country’s largest city, blocking traffic with their tractors.

She did a bit of research and learned that Germany’s farmers are protest-

ing governmental efforts to subsidize large confinement operations which will impact family farmer’s ability to compete, as well as governmental regulations restricting farmers’ ability to apply fertilizer, including manure, and glyphosate herbicides.

“They wanted to make sure that those living in the city couldn’t go about their typical day without having to stop and think about farmers,” Melissa says.

Because many South Dakotans may not have the opportunity to travel to Germany, the couple also made a list of things they noticed that were unique to Germany based on their South Dakota experience: ► Recycling is a big deal with a lot of paper and edible products utilized in place of plastics; ► There are very few overweight people in Berlin — they walk and ride bikes everywhere; ► Grocery stores include a lot of

raw goods which are unprocessed or minimally processed and locally-sourced produce; ► Farms are much smaller in size; ► Lots of electric cars and solar and wind energy; ► People are on cell phones much less; ► You have to pay to use the bathroom wherever you go; ► Much lower quantities of meat are consumed; ► Sales tax is built into the “sticker price” you pay at stores, restaurants, and bars; ► People are very conscious of the environment; ► English is a required subject in all public schools from the beginning of elementary school until high school; ► College is free, so many citizens have master’s degrees and PhDs; ► Germany has a declining and aging population with a lot of wealth.

Courtesy image Gregory farmers, Hank and Melissa Wonnenberg at the Brandenburg Gate in Germany.

february 2020 SOUTH DAKOTA FARM & RANCH 11

SD FARMERS LOOKING TO 2020 GROWING SEASON Seed selection is a critical part of planning

I

t’s hard to believe, but farmers in eastern South Dakota are thinking about next spring even though last year’s harvest is not far in the past.

There are a lot of decisions to be made and planning to be done and equipment to be repaired before we ever see a tractor on the road in the spring, or before a seed ever hits the ground. What new equipment will I need to purchase, what nutrients does my soil need, what is my fertilizer strategy, what insects and weeds will I need to worry about, how will I market my crops, should I diversify — these are all going through farmers’ minds and notes between now and then.

But one of the most important decisions a farmer will make is what seed to plant. There are different companies, different brands, different maturity ratings (how long it takes from the time the seed is planted to when it’s ready to harvest), and a long list of features and benefits for each one.

Dan Haberling, a CHS Key Agronomy Specialist who is also an authority on Allegiant Seed products, offers a few tips for making seed selections.

“It’s human nature to remember our last pain, so a lot of farmers will have the tendency to switch to earlier maturing hybrids to avoid the problems they faced during their most recent harvest,” said Haberling.

Last year there was a shorter growing season with cooler temperatures.

This caused seeds to not reach physiological maturity, often referred to as black layer, before plants began to

freeze. As a result, a lot of crops didn’t have time to grow fully to harvest.

“Even though we had an unnatural ending to the season, farmers shouldn’t make overly drastic changes to their maturities in hopes of maximizing yield,” continued Haberling.

“Farmers are better off dropping maturities by a small rate to minimize risk,” added Haberling. “For example, if a farmer normally plants a 95-day maturity-rating hybrid and drops down to a 92-day hybrid, they will be better off in the case of a normal season because they won’t give up a lot of yield compared to those making drastic changes.”

Reducing risk through diversity also goes far beyond considering different maturity ranges during seed selection.

Selecting seeds with genetic variation also provides strong benefits to crop yield.

“It’s critical to place a product where it best fits and not put all your eggs in one basket. Some products work very well on really high producing ground and others can handle stresses under poor soil conditions,” said Haberling. “Knowing the characteristics of a specific field and reviewing multi-year data can help farmers make the best seed selections to minimize risk and maximize yields.”

Most farmers are ready to put the difficulties of this year’s growing season behind them, and they have a lot to think about when planning for next year. Local co-ops, ag retailers and agronomists like Dan Haberling are great resources to help do that.

Photo courtesy of CHS

Corn sprouting.

It’s critical to place a product where it best fits and not put all your eggs in one basket. ... Knowing the characteristics of a specific field and reviewing multi-year data can help farmers make the best seed selections to minimize risk and maximize yields – DAN HABERLING, a CHS Key Agronomy Specialist

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NOEM PROCLAIMS FEB. 21 IS SOIL HEALTH AWARENESS DAY The SD Soil Health Coalition PIERRE — Improving soil health is a mission many South Dakotans take seriously, including Gov. Kristi Noem, proclaiming Feb. 21 Soil Health Awareness Day in South Dakota.

“South Dakota’s farmers and ranchers are deeply committed to stewardship,” Noem said. “Soil health is a crucial component to ensuring the land that grows our food remains productive for future generations.”

Soil Health Awareness Day provides an opportunity for all South Dakotans to learn about the need for, and benefits of soil health, explains Cindy Zenk, Coordinator of the South Dakota Soil Health Coalition (SDSHC).

“Soil health matters. No matter what your occupation or where you live in South Dakota, its health impacts you,” explained Zenk, who works with hundreds of farmers and ranchers to advocate for the importance of the irreplaceable natural resource.

“Healthy soil supports food production and water quality, topics which are of great importance especially this year and will be for many years to come. Healthy soil supports wildlife economic stability and

profitability and much more.. Soil truly is the foundation of life.”

SDSHC is a producer-led, nonprofit which collaborates with many agencies, organizations and individuals to promote improved soil health, providing education and resources to South Dakotans of all ages and occupations.

“Our mission, to improve soil health, is an attainable goal as long as those within the agricultural community become aware and receive support from the community at large,” Zenk explained.

“The Governor’s Proclamation certainly aids us in our mission.”

Because healthy soil is better able to absorb and retain water, benefits of implementing management practices that bolster soil health are especially evident during years of extreme weather – excess moisture or drought – benefits Noem noted in the Proclamation.

Established in 2015, SDSHC has worked tirelessly to increase awareness and provide information through programs like their youth-focused Soil

Health Buckets. A hands-on teaching tool, funded by grants, individuals and businesses. Today more than 100 South Dakota classrooms implement Soil Health Buckets and accredited lesson plans into their STEM education.

Beyond educational resources and connecting farmers and ranchers with soil health experts, the organization’s team of Soil Health Technicians work one-on-one with producers helping them develop and implement soil health practices to work on their land.

“If agriculture, our state’s number one industry, is going to be sustainable for future generations, we have to practice the principles of soil health,” explained Dan Forgey, a SDSHC board member and farm manager for Cronin Family Farm and Ranch near Gettysburg.

Governor Noem agreed. “After the wet year we had in 2019, producers across the state have seen the benefit of practices that support soil health, and I’m hopeful more producers will implement added water infiltration and retention soil practices to better support our state’s longterm soil health.”

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INTEREST IN CRP MAY DROP

Photo courtesy North Dakota Game and Fish Department

For the first time since last fall, the U.S. Department of Agriculture is accepting applications for the voluntary Conservation Reserve Program.

Lower payment rates likely

T

By Jonathan Knutson Forum News Service

hough the 2018 Farm Bill doesn’t make major revisions to federal conservation programs and policies, it includes “subtle changes” that could limit interest in the widely used Conservation Reserve Program, or CRP, according to a new federal government report.

Area farm group leaders say that’s OK with them.

“CRP is both good and bad,” and isn’t a program that farmers want to rely on heavily, said Dennis Haugen, president of the North Dakota Grain Growers Association, and a Hannaford, N.D., farmer and agribusinessman.

The farm bill is the centerpiece of federal food and agricultural policy. A new farm bill has been approved every five to seven years since 1933. The current farm bill, officially known as the Agriculture Improvement Act of 2018, was approved in late 2018 and covers 2019 to 2023.

The report, published in the December issue of Amber Waves, a publication of the U.S. Department of Agriculture’s Economic Research Service,

or ERS, notes that the new farm bill continues CRP and the other four major USDA conservation programs.

The new farm bill also keeps overall conservation funding roughly the same as it was under the 2014 Farm Bill, somewhere between $5 billion and $6 billion annually in 2019-2023.

But the 2018 Farm Bill makes changes in CRP rental payments, which could to lower payment rates and less interest in the program, the report said.

In addition, the new farm bill increases funding for the Environmental Quality Incentives Program, or EQIP, one of the other four major conservation programs.

CRP makes annual payments to farmers who take environmentally sensitive cropland out of production for 10 to 15 years. Established in 1985, CRP reached peak enrollment in 2007 when 36.7 million acres were in the program nationwide. The program was popular in North Dakota, South Dakota, Montana and northwest Minnesota.

But since 2008, nearly 13 million acres have left the program, much of it going back into crop production.

That reflects strong crop prices from

2008 to 2013 and new farming practices that reduce the risk of farming what had been environmentally sensitive land.

In contrast, EQIP provides financial assistance to farmers who adopt or install conservation practices on land in agricultural production, or what’s often referred to as “working lands.”

EQIP “may fund anything from a single practice addressing a single resource concern to broader, more comprehensive farm-level plans,” EPS said.

Under the new farm bill, EQIP funding rises from $1.75 billion in fiscal year 2019 to $2.025 billion in fiscal year 2023, the ERS report said.

It might appear that the new farm bill encourages CRP: CRP’s overall acreage cap is increased from 24 million to 27 million acres.

But the farm bill also creates new limitations on the maximum rental payment that can be received under a CRP contract. The restrictions are based on new parcel-specific “soil rental rates” that, with some exceptions, are the maximum annual rental payments allowable in CRP, ERS said.

The soil rental rates largely reflect county-average cash rental rates for nonirrigated cropland. They help to ensure that CRP payments are in line with local land-rental rates and reflect variations in the productivity

and rental value of land, according to the report.

That “could reduce incentives for landowners to offer land for CRP enrollment and lessen the program’s role in the land market,” the report said.

Farmers prefer to farm land instead of putting it in CRP and consequently are most interested in conservation programs that allow land to stay in production, said Theresia Gillie, a Hallock, Minn., farmer, and a past president of the Minnesota Soybean Growers Association.

She doubts the current period of poor crop prices and limited farm profitability will encourage farmers to put land, or try to put it, in CRP. Haugen said he also thinks it’s unlikely that there will be a surge of interest in CRP. CR can be beneficial when it takes marginal land out production. But it also can hurt agricultural communities when large amounts of land go into the program, hurting businesses that rely on sales of ag products such as chemicals and equipment, he said.

To read the report: https://www.ers. usda.gov/amber-waves/2019/december/2018-farm-act-retains-conservation-programs-but-could-reducepayments-for-land-retirement/.

february 2020 SOUTH DAKOTA FARM & RANCH 17

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AG CONDITIONS BETTER NOW THAN THE 1980S

Mikkel Pates / Forum News Service

The late Milton J. Hertz of Mott, N.D., cropped some 26,000 acres in the late 1970s. When the farm crisis came, he sold out machinery and land, moving to Washington, D.C., to implement farm policies including the payment-in-kind program that gave farmers free government-owned grain in return for cutting production. Photo taken Sept. 25, 2019, Mott, N.D.

T

By Jonathan Knutson Forum News Service

he overall U.S. agricultural economy has slumped in recent years, but several key measurements show that current conditions are better in important ways than they were in the rocky ag sector during the 1980s, a federal government report says.

Relatively low interest rates and the rising value of farm assets, particularly farmland, help to prop up today’s ag economy, according to “Financial Conditions in the U.S. Agricultural Sector: Historical Comparisons,” a recent report from the U.S. Department of Agriculture’s Economic Research Service, or ERS. Andrew Swenson, a veteran farm management specialist with North Dakota State University Extension, agreed that current conditions are better than they were four decades ago.

“We’ve seen some farmers go out of business (recently), but overall, things aren’t as bad as they were in the 1980s,” he said.

The ERS report notes that the ag sector’s financial health has declined since the sector’s multi-year run of prosperity from 2008 to 2012. But the report also finds that, put in historical perspective, current conditions aren’t particularly bad: ► From 2012 to 2017, the farm sector saw the largest multi -year decline in net cash income in percentage terms since the 1970s. But farm income in 2012 had been at a near-record level, so, even with the large drop, inflation-adjusted income remains close to its long-term average, ► Farm sector debt has risen to nearly the same high levels as four decades ago. Even so, interest expenses remain below the long-run average level because of historically low interest rates ► Though land values have fallen in some areas and caused farmers’ debt-to-asset ratio to rise since 2012, that ratio is still low compared to the 1970-2017 average.

Low interest rates definitely help today’s farmers by holding down the interest they pay out, Swenson said.

A hypothetical example: Say that a producer borrows $100,000 to buy farmland and promises to repay the money over 15 years.

With an interest rate of 15%, which was common in the mid-1980s, the monthly payment is roughly $1,400, with $1,250 of that amount interest in the first month.

With an interest rate of 5%, the monthly payment is $790, with $417 of that amount interest in the first month.

Ag boomed in the mid-1970s, which led many farmers to expand and take on debt, eventually causing them to struggle in the 1980s when crop prices and land values slumped. The latter reduced farmers’ assets, hurting their ability to borrow and inflicting heavy losses if they were forced to sell land at much lower prices than what they paid.

Today’s relatively stable land values hold up farmers’ assets, improving their financial situation, he said.

Other factors are helping current ag conditions, too, Swenson said.

Modern farmers generally were more prudent with their spending

after the 2008-2012 boom than their predecessors were after the mid1970s prosperity, he said.

And modern ag lenders overall are shrewder and more disciplined, helping them to avoid many of the eventually onerous loans made in the late 1970s and 1980s, Swenson said.

Strong yields in some recent crop years, combined with government payments, also help to bolster current ag conditions, he said In addition to the economic differences between the 1980s and today, Swenson sees a social difference.

“There’s less stigma to being in financial difficulty today than in the 1980s,” he said.

Back then, many farmers were so upset about possibly losing multi-generational farms that they were reluctant to talk publicly about it or to seek help. Today’s farmers generally are more willing to be open about financial difficulties, Swenson said.

To read the report: https://www. ers.usda.gov/publications/pub-details/?pubid=95237.

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Gibbons named director for ag positions at SDSU Research, exploration bring ‘exciting time’

By South Dakota State University BROOKINGS — Bill Gibbons has been named the new director of the South Dakota Agricultural Experiment Station at South Dakota State University and the associate dean of research for the College of Agriculture, Food and Environmental Sciences.

Gibbons has been serving as the interim for both positions since 2016.

He began as the director and associate dean on December 22, 2019. In these roles, Gibbons coordinates and facilitates research in the College of Agriculture, Food and Environmental Sciences and the college’s statewide network of research farms and stations that make up the South Dakota Agricultural Experiment Station.

“This is a very exciting time for agricultural and environmental research at SDSU, and recent upgrades to several of our research facilities provide the infrastructure to create innovative solutions to the issues and opportunities that lie ahead of us,” says Gibbons. “Together with our partners in SDSU Extension, we will continue to deliver effective and efficient solutions to South Dakota producers and residents.”

With six field stations and more than 17,000 acres of land across the state devoted to scientific exploration, the South Dakota Agricultural Experiment Station is the largest public and privately funded research organization in the state.

“Dr. Gibbons brings a tremendous level of expertise in research, intellectual property management, administrative experience and an entrepreneurial spirit,” says John Killefer, South Dakota Corn Endowed Dean of SDSU’s College of Agriculture, Food and Environmental Sciences. “He has done an outstanding job serving in the interim role and I look forward to his continued leadership in the permanent roles as director of the South Dakota Agricultural Experiment Station and associate dean for research.”

Gibbons has a highly accomplished research career at SDSU. His work focuses on applied microbiology and biotechnology, specifically in value addition to agricultural products through bioprocessing. He helped develop a high-protein aqua feed

ingredient from soybean meal that is now being commercially manufactured and providing aquaculture farmers and feed manufacturers around the world with the Gibbons power needed to boost the rapidly growing industry’s performance. As a graduate student, Gibbons participated in one of the most impactful projects ever conducted at SDSU, the groundbreaking ethanol fuel research and development project that began in 1977. Since then, the ethanol technology developed at SDSU has grown and spread across the country.

Gibbons has practiced and promoted interdisciplinary research for many years and has a strong network of collaborators from process and chemical engineers to biochemists and molecular biologists. His research has exceeded more than $5 million over the past four years.

Gibbons earned multiple degrees at South Dakota State University — bachelor’s degrees in biology, microbiology and chemistry; a master’s degree in microbiology; and doctoral degrees in agronomy and microbiology. Gibbons joined the Department of Biology and Microbiology as an assistant professor in 1987 and attained the rank of professor in 1997. He was named a distinguished professor in 2018.

In his role as a professor, Gibbons taught a biotechnology course and advises graduate students and undergraduate researchers. He has trained over 20 master’s students, three doctoral students and countless undergraduate students, most of which have gone on to work in the biotechnology industry.

His honors include being named a Distinguished Professor by SDSU in 2018, a National Wetlands Award winner by the Environmental Law Institute in 2018, an F.O. Butler Award for Excellence in Research by SDSU in 2014, the Pat and Jo Cannon Intellectual Property Commercialization Award in 2011, Gamma Sigma Delta Researcher of the Year in 2011, College of Agriculture and Biological Sciences Distinguished Researcher of the Year in 2007 and SDSU Microbiology Club Teacher of the Year in 1990.

‘Giant’ soybean logjam may clog Brazil ports after wild weather

By Fabiana Batista Bloomberg Brazil, the world’s biggest soybean producer and exporter, is grappling with another spate of wild weather, leaving a vessel logjam at ports and causing harvest delays.

Heavy rain is crimping Brazil’s crop collection and starting to jam up vessels at the ports in Santos and Paranagua. Robust oilseed demand looms as China, the top buyer, picks up cargoes, easing concerns that the coronavirus virus would damp commerce.

A “giant” queue of vessels is expected at ports, though shipping delays may be temporary, Pedro Dejneka, a partner at MD Commodities in Chicago, said in a voice message. Brazilian farmers collected the biggest crop ever and are offering more-attractive prices than rivals including the U.S. In the past two weeks, the volume of soybeans scheduled to ship from major ports doubled to 7 million metric tons, according to data from shipping agency Williams.

China has ordered about 10 cargoes from South America, according to people familiar with the matter.

U.S. growers are waiting for signs

of increasing demand on the heels of Washington’s trade accord with Beijing.

Heavy rain at major ports probably will persist through the weekend, Celso Oliveira, a meteorologist at Somar Meteorologia in Sao Paulo, said in a phone interview. Conditions may improve on Feb. 9-10, while more precipitation is forecast for three days starting Feb. 11.

“As soon the weather gets drier, shipments will accelerate with Brazil exporting strong volumes” in the first half of the year, Dejneka of MD Commodities said.

In January, extreme conditions caused opposite types of turmoil in cities and some agriculture areas that help produce soybeans and sugar cane.

The state government of Minas Gerais reported on Jan. 30 that 55 people were killed by two days of floods and landslides, leaving 30,000 homeless. The capital city of Belo Horizonte had the most rain for the month in 110 years, Somar said.

Espirito Santo and northern Rio de Janeiro were also swamped.

In contrast, sugar cane, soybeans and cattle in major farming areas faced adverse dryness.

Together with our partners in SDSU Extension, we will continue to deliver effective and efficient solutions to South Dakota producers and residents.

– BILL GIBBONS, Director, South Dakota Agricultural Experiement Station

february 2020 SOUTH DAKOTA FARM & RANCH 21

PALMER AMARANTH IS AN AGGRESSIVE THREAT TO SD FIELDS

By Lura Roti For South Dakota Soil Health Council

says Forgey, farm manager of Cronin Farms, in Gettysburg and SDSHC on’t ignore the threat of Palmer board member.

Forgey speaks from experience. In amaranth.

2018, the weed was discovered on If there’s one message Dan Forgey hopes to convey to South Cronin Farms, in an 80-acre field Dakota farmers and ranchers, it is of white wonder millet. The Palmer the fact that this aggressive weed amaranth found its way into the field, could take up residence in their fields stowed away in the millet seed.

Its discovery voided the $42,500 in 2020 if they don’t take the threat seed contract. Forgey and his employseriously.

D

“Producers can’t brush this off,”

Courtesy of SDSU Extension

Within the last five years Palmer amaranth went from being positively identified in one South Dakota county to, by the end of 2019, the weed had been found in most counties along the Missouri River and a few counties along the Nebraska boarder.

Continued on page 23

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Continued from page 22 er opted to hay the millet and burn the bales at a cost of $3,500. “It’s our belief on this farm, that we won’t give someone else our problem,” Forgey explains.

He didn’t stop there. Together with several other concerned farmers, Forgey appealed to the State Weed Board, asking them to change the law, making it illegal for seed companies to sell seed containing Palmer amaranth.

Thanks to his efforts, as of September 1, 2019, it is illegal to sell seed containing Palmer amaranth in South Dakota. “Right now, there is zero tolerance. If a company sells seed containing Palmer amaranth, they are liable,” Forgey says.

But this doesn’t let South Dakota farmers and ranchers off the hook.

For one thing, Forgey explains it is difficult for farmers and ranchers to prove the weed came in with seed for cover crops or pasture restoration.

“Now that it’s here, producers need to be vigilant—especially if they live in a county where the weed was identified,” Forgey says.

What makes this weed so bad? Its competitive nature. “It can outgrow row crops if given the right environment,” says Gared Shaffer, SDSU Extension Weeds Field Specialist.

Carrying up to, or more than 1 million seeds per plant, if conditions are right, Palmer amaranth can emerge within five days, growing to heights of 10 feet, with a stalk 4-inches in diameter. “It gets as tall as a Christ-

mas tree and spreads like wildfire,” Forgey says.

Our climate no longer protects us from this weed. Originally found in southern states, over time, Palmer amaranth has been introduced to northern climates. It has been found in North Dakota, Wisconsin and Minnesota.

Like many weeds these days, Palmer amaranth is also resistant to many herbicides including glyphosate.

Palmer is in many S.D. counties

Within the last five years Palmer amaranth went from being positively identified in one South Dakota county to, by the end of 2019, the weed had been found in most counties along the Missouri River and a few counties along the Nebraska boarder.

Due to the number of prevent plant acres, if proper control measures were not employed, Schaffer says the number of Palmer sightings could increase in 2020.

What can be done to protect fields from Palmer amaranth? Although Palmer amaranth is new to South Dakota, Shaffer reminds producers, that for the most part, tactics for prevention are not.

“The only difference with Palmer amaranth is that in some crops it is emerging later than the other weeds we typically spray for. If you don’t do a post applied herbicide in June, you may not catch it in some cases,” he explains.

Below, Shaffer shares more tips. ► Ask before you buy: Before pur-

Photo courtesy of Courtesy Brian Jenks NDSU

Leaf shape: This can vary within species. How-ever, typically, the leaf shape of Palmer amaranth is wider, ovate or diamond shaped. Waterhemp leaves are generally longer, linear, or lanceolate in shape. chasing seed, ask where the seed originates to ensure it is not grown in areas infested with Palmer amaranth.

Ask if the seed company tests for Palmer amaranth. ► Scout: Scout fields throughout the growing season for weed emergence before and after herbicide application. If a plant is found, it is best to dig it out by hand and bag it.

Burn the plant to prevent seed from spreading. ► Crop rotation: Add a small grain

cash or forage crop such as oats, wheat, or rye to your cropping rotation. ► Decrease width & rate: Decrease row width and increase seeding rate.

Palmer amaranth relies on light to germinate; a closed canopy will limit germination. ► Don’t ignore this threat: Shaffer reiterates Forgey’s concerns. “If we don’t take the threat of Palmer amaranth seriously, it could turn into an issue and become the next waterhemp.

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DESPITE PRICES, WEATHER, RENTAL RATES APPEAR STABLE

Mikkel Pates / Forum News Service

Crop prices are poor, profit margins are tight and much of the Upper Midwest suffered through horrible harvest conditions in the fall of 2019. Some farmers were forced to leave 60% to 80% of their corn in the field, like this field show Jan. 14 near Hazelton, N.D. But rental rates aren't expected to go down except in very specific situations.

I

By Jonathan Knutson Forum News Service

t may seem obvious: Crop prices are poor, profit margins are tight and much of the Upper Midwest suffered through horrible harvest conditions in the fall of 2019. So area farmers naturally will pay less to rent cropland in 2020, right?

But that’s not what’s happening, area farmers, agricultural bankers, real estate agents and Extension officials say.

With most 2020-crop year negotiations completed, in progress or set to begin soon, rates generally are holding steady, ag officials say.

“There may be some localized areas (with particularly poor 2019 crop seasons) where rates will fall, but most (rates) will be stable,” says Nate Franzen, president of the Agri-Business Division of First Dakota National Bank in Yankton, S.D. Bryon Parman, the North Dakota State University Extension agriculture finance specialist, agrees. “I don’t see them (rates) going up in the short term, but I don’t see them falling, either,” he says.

The same is true in Montana, said difficult conditions for the dairy Kate Binzen Fuller, Montana State industry in a major dairy state.

Another consideration in MinneUniversity assistant professor.

“Generally, rates continue to tick up sota: Fewer farmers now are willing to pay very high marginally each year. rental rates, which The increase from last pulls down the averyear just about keeps age rate, said Noah up with inflation, Hultgren, a Willmar, so we aren’t seeing There may be some Minn., farmer and any real increase, but localized real estate broker. we aren’t seeing a areas (with “We’re not seedecline, either,” she particularly ing as many of those said. high-end contracts None of that poor 2019 that have you scratchshould be a big sur- crop seasons) ing your head about prise, given relevant where rates how they can pencil federal statistics. out (show a profit for This summer, two will fall, but reports from the U.S. most (rates) will be stable the renter),” he said, a trend that appears Department of Agriculture’s National NATE FRANZEN, president to be true elsewhere Agricultural Statis- of the Agri-Business Division in the area, too.

The NASS reports tics Service, or NASS, of First Dakota National Bank were based on numfound that North bers collected before Dakota, South Dakota and Montana generally had higher the difficult 2019 harvest — which, average 2019 rental rates, although at least for now, seems to be having rates fell slightly in Minnesota from little impact on new 2020 rental rates.

2018 to 2019. The Minnesota decline Ag officials give a number of reasons apparently reflected, at least in part, for that, including:

► Interest rates, already low, have fallen a bit lower. That reduces borrowing costs, which potentially gives farmers the ability to pay a little more to rent land than they otherwise could. ► There’s an inherent connection between rental rates and land values, or the price for which land sells. Land values generally aren’t falling, so that helps to prop up rental rates. ► Some farmers remain in relatively good financial shape, maintaining both demand to rent land and the ability to do so. Demand may not be strong as it was a few years ago, but it’s still there. ► The so-called safety net has provided many hard-pressed farmers with income they otherwise wouldn’t have had. “Crop insurance and government payments have helped,” Franzen said. ► Renting additional land can spread expenses over more acres, reducing per-acre production costs and potentially creating higher profits. ► Farmers in general are becoming Continued on page 26

february 2020 SOUTH DAKOTA FARM & RANCH 25

Continued from page 25 more efficient, thanks to improved tools and new research, helping them to pay rents that they otherwise might be unable or unwilling to pay. ► Rental rates across much of the country soared during the 2008-2013 agricultural boom. Rates in the Upper Midwest generally rose much more modestly, making them less likely to decline now. ► Not all area farmers suffered through a tough 2019 crop season. In Montana, Fuller said, farmers “had a great year for overall grain yield,” though bad weather hurt spring wheat and durum in the northeast part of the state.

And from the landlord’s perspective: Property taxes on area farmland overall have risen in recent years, making farmland owners less willing to accept lower rental rates and helping to hold up rates.

Other trends

Typically, rental contracts are for one, two or three years. One-year contracts negotiated for the 2019 crop season, two-year contracts covering 2018 and 2019, and three-year contracts for 2017, 2018 and 2019 need to be renegotiated, or the land will be rented to another farmer.

Though firm numbers are hard to come by, it appears that one-year contracts may be more common than usual in 2020.

Given poor crop prices, still-muddy trade issues and the strong possibility of a late start to planting this spring, “There’s a lot of uncertainty (among farmers). That could cause them to be less willing to be tied to longer leases and lead to more interest in one-year leases,” Parman says.

Keep in mind that one-year leases er and landlord is crucial for flex are poorly suited to some situations. rates to be implemented successfully, For example, sugar beets typically are ag officials say. grown in a multiyear In perspective rotation with other Though every year, crops. So a farmer who including this one, plans to raise beets on There’s a lot of is different, 2020 rental land most likely uncertainty rental rate negotiawill want a multiyear (among tions play out against rental agreement. more than a decade The uncertainty also farmers). of highs and lows in could lead to greater That could the area’s ag econinterest in so-called cause them omy. flexible leases, ag offiThe 2008-13 ag to be less cials say. boom brought strong Currently, cash rent willing to be crop prices and — a fixed amount of tied to longer leases and record farm prospermoney per acre paid by ity. Not surprisingly, a renter/farmer — is lead to more interest in landlords asked for one-year leases the norm in area agrihigher rent, which culture. Cash rent is BRYON PARMAN, the farmers generally easy to put into practice were willing and able North Dakota State Univerand offers a clear-cut, to pay. Rates continsity Extension agriculture predetermined payued to rise for several finance specialist ment method that most years after the boom landlords and tenants ended, before leveling off. generally welcome.

In eastern North Dakota’s Cass In contrast, the once-popular but County, for example, the average pernow rarely used crop shares give acre rental rate for nonirrigated croplandlords a share of the crop rather land roughly doubled from 2008-15, than a fixed payments. That means rising from $67.50 to $128.50. The more money for landlords in good average rate has fluctuated slightly years and lower payments by farmers since then, standing at $124.90 in in poor years.

2019, according to NASS statistics.

“Crop shares are the fairest ecoMany factors potentially could nomically,” Parman says. influence cropland rental rents in the Flex rates combine features of crop longer run, ag officials say. shares and cash rent, often using a In general, farmland values have base or fixed payment, plus an addi- risen faster and higher than rental tional payment if yields or crop pric- rates. That could leave room for the es, or both, are good. latter to rise, while the former hold Hultgren says that while there may steady in coming years, Parman said. be more interest than usual this winAg officials say the return of high ter in flex rents, he doesn’t think it crop prices and improved farm profwill lead to a big increase in actual itability also could boost rental rates.

As Franzen noted, farmers generally flex-rent agreements.

Mutual trust between farm- are becoming more productive, which

26 SOUTH DAKOTA FARM & RANCH february 2020

will increase their ability and willingness to pay more for land when economic conditions are good Continued poor crop prices, uncooperative weather, higher interest rates and trade concerns all hold the potential to bring down rental rates over time, ag officials say.

Tips on negotiations

Negotiating farmland rental rates can be complicated or contentious or both. Adding to the potential difficulty is the growing number of landowners with no direct ties to agriculture: they’ve inherited or purchased land, but lack first-hand farming knowledge that could smooth negotiations.

Whatever the situation, experts offer these tips and suggestions. ► If landlords don’t have the skill, knowledge or desire to negotiate themselves, hiring a farm management company to handle the job is an option. ► Utilizing reliable, impartial statistics and expertise can be crucial.

Veteran agricultural bankers and Extension officials are good places to start. ► Consider flexible rates, or ones that are adjusted to reflect crop prices or yields or both. Flex rates give landlords more money in good years and also allow farmers to pay less in bad years. ► The adage, “There are two sides to every story” applies here: Both the farmer’s side and the landlord’s side are important and need to be reflected in the final agreement. Neither party should get everything it wants. ► Economics may not be the only consideration. For example, a farmer who keeps a retired neighbor’s rural road open during the winter might get a reduced rate on cropland that the farmer rents from the neighbor.

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