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Could EPA Decision Signal The Beginning Of The End For DEF?

Thu, 31 Jul 2025 16:27:17 GMT

Mike Berdo has strong words to describe his ongoing experiences using machinery requiring DEF ( Diesel Exhaust Fluid ) on his southeast Iowa farm.

“It has been an absolute nightmare, at least for us. Mechanics make trip after trip to do little stuff that’s very expensive to fix,” said Berdo, who produces grain and beef cattle near Washington. “We had planting delays last spring … little stuff that came from it and just seemed like [an issue to deal with] day after day.”

The ongoing mechanical issues and costs are why Berdo said he is “all for” EPA rescinding the 2009 Greenhouse Gas Endangerment Finding. The Finding has enabled the agency to regulate greenhouse gas emissions under Section 202 of the Clean Air Act and, in recent years, and launch requirements such as the use of DEF systems in diesel-powered engines.

EPA Draws A Line In The Sand
On Tuesday, EPA Administrator Lee Zeldin released a proposal to rescind the 2009 Finding.

If finalized, the proposal would remove all greenhouse gas standards for light-, medium- and heavy-duty vehicles and heavy-duty engines, EPA said in a follow-up press release .

The move would start with EPA’s first greenhouse gas standard set in 2010 for light-duty vehicles and those set in 2011 for medium-duty vehicles and heavy-duty vehicles and engines.

EPA said the proposal is expected to “save Americans $54 billion in costs annually through the repeal of all greenhouse gas standards, including the Biden EPA’s electric vehicle mandate, under conservative economic forecasts.”

Zeldin made the announcement to rescind the Finding in Indiana, alongside Energy Secretary Chris Wright, and called it the largest deregulatory action in U.S. history.

What The Decision Could Mean To Farmers
Specific to U.S. farmers, the proposal could potentially result in DEF systems no longer being included on new tractors and other heavy equipment using diesel-powered engines, said Chip Flory, host of AgriTalk, during a Farmer Forum discussion on Wednesday.

South Dakota farmer Ryan Wagner told Flory he has a wait-and-see perspective on how or whether the EPA proposal goes into effect. He anticipates that reversing the Finding will take considerable time and effort for EPA to implement.

“It took a long time with the interim engines and things to get into full DEF in the first place,” Wagner said. “I don’t know how long it would take to unwind all that and how quickly manufacturing will just take those systems right off, but it’ll be interesting to see what happens.”

To Wagner’s point, here’s a brief look back at some timing showing when DEF rolled out in agriculture and nonroad equipment and became mandatory . The regulations were phased in over several years based on the type of equipment and engine size:

2008: DEF became required for all new diesel engines with engine sizes over 750 horsepower.

2011: the regulations expanded to include equipment with engine sizes between 175-750 horsepower.

By 2015, all new nonroad diesel engines were required to be Tier 4 compliant and utilize DEF, regardless of equipment type or engine size.

As Wagner considers DEF, he noted its use in diesel engines has provided him with one benefit: “On the plus side, I do like that they don’t make the walls of my shop black. That’s been nice,” he said. “You can run them inside for a short time and not not feel like you’re breathing in a bunch of soot and making everything black.”

Expect Legal Challenges To EPA Decision
A number of environmental groups have already blasted the move by EPA, saying it spells the end of the road for U.S. action against climate change, according to an online article by Reuters .

Legal challenges from various environmental groups, states and lawyers are likely ahead.

That fact wasn’t lost on Flory and the Farmer Forum participants during the AgriTalk discussion on Wednesday.

“If this proposal is finalized, it’s going to start a lot of conversations … and the dominoes are going to start to fall, something that we need to keep track of, no doubt,” Flory said. You can hear the complete Farmer Forum discussion on AgriTalk here:

EPA will initiate a public comment period to solicit input. Further information on the public comment process and instructions for participation will be published in the Federal Register and on the EPA website .

Your next read: Right To Repair Granted? John Deere Launches Digital Self-Repair Tool for $195 Per Tractor

July Weather Outlook: Goodbye Rain, Hello Heat

Tue, 24 Jun 2025 21:02:27 GMT

The Pacific Jet Stream has been going strong since early spring, sending heavy rains down through the Ohio River Valley, delaying farmers’ planting efforts there, then more recently, moving large amounts of moisture into the central Corn Belt.

“Nobody would have thought three months ago that we were going to have this much rain occurring across key crop areas, especially in the southern half of the Plains and in the Delta and Tennessee River Basin,” says Drew Lerner, president and senior agricultural meteorologist of World Weather.

But be advised, the engine driving that jet stream is about to turn off, says John Hoomenuk of EmpireWeather.com . He anticipates that by early July, some farmers will see those heavy rain events turn into a trickle.

Weather outlook for early July.

(BAM Weather)

Weather Brewing For July

“As we get into the second week of July or so, we’ll see the ridge push a little further north, and we’ll see some drier forecasts starting to appear, starting in Kansas and Nebraska, and then spreading a little bit into southwestern and central Iowa at times as well,” Hoomenuk says.

“That’s really caught our attention, because we just haven’t seen that [pattern] so far this year, and it’s a pretty big change compared to where we’ve been,” he adds.

As July goes on and August nears, Hoomenuk says the weather data indicate the jet stream will go up into Canada and drop into the Great Lakes.

If that occurs, he says farmers in Indiana, Illinois and Ohio are likely to get some precipitation dropping on the east side of the ridge. But across the Central Plains, Kansas, Nebraska, Dakotas, and maybe even into parts of Iowa, farmers will see their conditions trend a little drier.

“I think that’s not a huge concern just yet, but it’s a pretty big change up compared to where we’ve been the last couple of weeks,” Hoomenuk told AgriTalk host, Chip Flory, on Tuesday.

Drought Risks Remain In Place

The outlook for drier weather in July is not a surprise, based on the patterns some meteorologists saw shaping up last winter.

“The central United States is at about a 60% drought risk. Some of the best weather forecast models we have out there are trying to put the epicenter of that drought somewhere between Missouri, Nebraska, South Dakota, Iowa and southern Minnesota by the time we get into July and August,” says Eric Snodgrass, principal atmospheric scientist for Nutrien.

Much of the western U.S. has been enduring dry, hot conditions already this year. Much of the central Midwest is about to experience the same.

(The National Drought Mitigation Center at the University of Nebraska-Lincoln, the United States Department of Agriculture and the National Oceanic and Atmospheric Administration.)

“When you think about those particular states, developing drought from spring to summer in any year is somewhere in the neighborhood of 28% to 38%,” he says. “Essentially, the risk is doubled this year.”

Snodgrass explains the canary in the coal mine for a drought will come from a combination of the Gulf of Alaska ocean temperatures and the Bermuda high, which is an area of high pressure that can influence weather patterns and tropical systems. If the Gulf of Alaska ocean temperatures begin dropping this summer, that’s a sign moisture will be lacking.

The silver lining, Hoomenuk says, is many farmers have either had excess or sufficient moisture this spring, so no alarm bells have been ringing yet for corn and soybean crops that are now in rapid growth.

His concern is the current weather patterns will stagnate, causing temperatures to rise.

“Most of the long-range data we’re seeing, if you look at July as a whole, is showing some pretty substantial [temperature] numbers in the Central Plains. We’re talking somewhere between four and five degrees above normal in some areas of Kansas and Nebraska, two or three degrees above normal for the month on average, surrounding that in parts of southwestern Iowa and the Dakotas,” he says.

As for states further east, such as Indiana, Michigan and Ohio, Hoomenuk says farmers there will likely see temperatures “closer to normal” for July, based on data he’s reviewed.

“The thing I keep seeing is temperatures looking to be about normal, maybe slightly warmer than normal – just a couple days of heat followed by a cool down and some rain, which is is pretty ideal,” he says. “It doesn’t seem like we’ll get into that long-term heat there in those eastern regions of the U.S, so the concern level out there is pretty low right now heading into July.”

Your next read: Crop Quality in the Midwest: Most States Soar, Some Flounder

5 Reasons Consumer Distrust In Our Food Supply Is Rising

Tue, 28 Jan 2025 20:49:59 GMT

Bread, check. Blueberries, check. As I wheel my grocery cart alongside the deli case, I’m taken aback at what I see. Rather, it is what I don’t see that has me wondering, “What in the world?” This section of my favorite grocery store is now almost completely empty, except for a couple of ham loaves and a renegade block of cheese.

In a slightly distraught tone I ask the worker behind the counter, “What’s going on?” He hesitates for a moment, then replies, “The store is in the process of changing suppliers for our deli products. We should have more of a selection next week.” Then it dawns on me: my favorite brand of deli meat and cheese, Boar’s Head, has officially been blacklisted by my go-to grocery store.

I should not have been surprised. Boar’s Head began its fall from public grace on July 26, 2024, when the company issued a recall for more than 207,528 lb. of product due to potential listeria contamination. The CDC linked the contamination to 61 illnesses and, tragically, 10 deaths. It was the worst listeria outbreak in the U.S. in over a decade.

The outbreak was ultimately traced to a production line at the company’s Jarratt, Va., plant. According to USDA inspection reports, which USA Today had to obtain through a Freedom of Information Act request, 69 reports of non-compliance were recorded at the Jarratt plant between 2023 and 2024. What was in those reports was unsettling. Documentation of insects live and dead, black and green mold, mildew, dripping and standing water, as well as other unsanitary conditions within the plant in the weeks leading up to the July recall. In a move that was too little too late, Boar’s Head announced on Sept. 13, 2024 that the Jarratt plant would be closed permanently.

In 1906, Upton Sinclair published his famous novel “The Jungle,” which exposed the horrific conditions in the meatpacking industry at the time. The writer’s work proved to be an instant bestseller to the masses. The irony is that nearly 120 years later, one might find it hard to discern whether they’re reading a current USDA Food Safety and Inspection Service (FSIS) report or a chapter straight out of “The Jungle.”

Just One Of Many
The Boar’s Head case was only one the high profile food recalls last year. Remember the E. coli contaminated onions on McDonald’s quarter pounders? Then, Costco issued a massive recall on their Kirkland Signature brand of organic eggs because of a threat of Salmonella. And to cap off the year with the scariest illness yet, on Dec. 18, 2024, the CDC confirmed a patient in Louisiana had been hospitalized with the nation’s first severe case of avian influenza A (H5N1) virus, aka the “bird flu.”

If it seems that the number of food recalls are coming at us at a more fast and furious pace than ever, then your gut instinct is spot on. The Food and Drug Administration, which reports food and cosmetics together, says 1,908 such products were recalled in the fiscal year that ended in September. That’s the highest number since 2019. Such a constant barrage of warnings is having a serious affect on consumers’ overall psyche — and not in a positive way. According to a September 2024 Gallup report, only 57% of Americans say they have a “great deal” or “fair amount” of confidence in the government to keep food safe. This number is a 27 point decrease since 2019, and is a record low for the Gallup Consumption Habits Poll since its inception in 1999.

This explosion of 20th century foodborne illnesses has me asking the same question I asked the worker behind the deli counter: “What’s going on?”

5 Reasons To Be Skeptical
There are multiple reasons consumers have good reason to be less confident in the safety of their food.

First, there’s the government. Second, more and more of our food is imported, which makes it harder to inspect. Third, you have a growing quest for more natural food, which sometimes circumvents traditional inspection channels. Fourth, industry consolidation means only a handful of players control both the production and processing. That’s not inherently a bad thing, but if something goes wrong, it’s probably going to be big. Finally, we now have the ability, through more technology and data, to find, detect and isolate the specific source of contamination and document it.

Time For An Overhaul
Food safety policy and implementation at the government level is in need of a serious overhaul. There is a chance it could actually happen. In 2018, the previous Trump administration proposed consolidating federal food oversight into a single agency with USDA.

There are so many common sense things that a fully functioning food agency could do. For one, start with better and more noticeable country of origin labeling (COOL) on imported foods. It should be prominent, displaying the country’s flag as the primary indicator of origin. If nothing else, we’ll all get better at geography. Next, companies that embrace new technologies that prevent contamination should be rewarded with tax credits. We do it for electric cars. Why not for safer food?

Finally, the most important change needs to come in the form of accountability and transparency both from the food industry itself and the government that regulates it. That didn’t happen in the case of Boar’s Head, and 10 people lost their lives because of it. In the age of AI and social media, those FSIS plant inspection reports should be posted on platforms such as X and Facebook for the public to see in real time. Without such transparency, we’re no better off than we were back in 1906.

CoBank: Policy Will Shape Rural Economy In The Year Ahead

Fri, 13 Dec 2024 16:35:51 GMT

CoBank has released its 2025 outlook report , which outlines the key themes the organization expects to shape agriculture and the rural economy in the coming year. While there are several factors to watch, they mainly stem from one place: federal policy.

“The environment we enter in 2025 hasn’t fully defined itself yet, but many of the policies proposed by the incoming administration would likely have a negative impact on U.S. agriculture,” said Rob Fox, director of CoBank’s Knowledge Exchange. “Open access to export markets and labor availability are critically important for agricultural producers and processors. Depending on how policy plays out, those two areas could be big challenges in 2025 and beyond.”

As a new economic era begins, here are the six main forces at play:

Threat of A Trade War
A large focus of President-elect Trump’s campaign was on significant import tariffs. While we don’t know exactly what this policy would look like, it is unlikely to produce a positive outcome for crop or livestock producers.

Fox writes, “These policies could achieve some limited objectives, but it is very hard to paint them as anything but negative for the U.S. farm economy.”

If a trade war was to ensue, it could also be very costly for agriculture. A recent joint study by the national corn and soybean associations estimates the 2018-19 trade war with China cost the U.S. a total of $27 billion in agricultural sales to China over those two years.

Export Competition
Alongside the potential for a trade war, export competition from Russia and South America poses another treat.

According to the report, Russia’s currency is weakening - which is expected to anchor global wheat prices and allow Russia’s wheat to be more competitive.

At the same time, Brazil’s currency is also weakening and exports from the country will be cheaper than those from the U.S. This is coupled with the forecast of record South American corn and soybean crops.

With an abundance of soybeans globally, CoBank is anticipating many U.S. acres to shift from soybeans to corn this year as well.

Labor Challenges
Another likely outcome of the upcoming Trump administration is a decreased labor supply.

The president-elect has proposed deportation and reduced immigration, which could negatively impact the dairy, meatpacking and produce industries by causing labor shortages and driving up costs.

Livestock Sector Investment and Growth
It’s not all bad news for the dairy industry, though. According to the report, the U.S. will see an unprecedented $8 billion in new dairy processing investment through 2026 - and some of those plants will come online in 2025.

The livestock sector as a whole is benefiting from low feed costs, and specifically in the beef industry, a reduced herd size is supporting higher feeder and fed cattle values.

The USDA Economic Research Service projects per capita consumption of chicken, beef, pork and turkey to remain stable or grow up to 2% from 2024 to 2025.

It’s important to note, however, there could be retaliation from potential tariffs placed on major dairy export customers such as Mexico and China.

Tight Margins
Reduced income and tighter margins for the crop industry are expected to continue in 2025.

CoBank anticipates input decisions being driven largely by what provides the greatest return on investment, and farmers may look to switch chemicals to generics.

During this time, it will be critical for ag retailers to provide tailored agronomic advice and technical assistance.

Biofuel Uncertainty
On the biofuel front, headwinds are expected to continue into 2025 - with the Trump administration adding more regulatory uncertainty.

Projections of note include:

A modest increase in biofuel production next year, although ethanol supplies will maintain 2024 production levels of 1.05 million barrels per day, according to the Energy Information Administration.
Renewable diesel production capacity will grow just 100 million gallons from 2024 to 2025 to a total of 5.2 billion and remain steady through 2026, according to an updated analysis from University of Illinois.
Federal and state tax incentives and low carbon fuel policies will drive the future viability of sustainable aviation fuel.

To read the full report from CoBank, click here .

Expert Shares What Could Spark Progress On The Farm Bill

Wed, 25 Sep 2024 17:53:33 GMT

John Newton, former Senate Ag Committee economist and now executive head at Terrain, shares what will move the Farm Bill out of the Senate Ag Committee and toward finalization.

“Chairwoman Stabenow could release bill text whenever she’d like. On the Republican side, I was happy to be part of that team and we released our framework earlier this year,” Newton says. The ball is obviously in the chairwoman’s court to do something on the Senate side.”

In addition to no bill text on the senate side, there’s no floor vote scheduled in the house. But Newton highlights three priorities and a time frame for a final farm bill:

More “Farm” in the Farm Bill: “I was part of a team that put together a Republican Farm Bill framework based on feedback we have received from over 23 states that Senator Bozeman visited. And in every single one of those states, what farmers and ranchers said is we need more farm in the Farm Bill,” Newton says.
Improved Safety Net: “There are real needs in agriculture to make safety net tools better,” Newton says. He sees the need to enhance crop insurance and cites how many reference prices are more than a decade old.
Bipartisan effort: “I would hope that there would be a bipartisan agreement in the Senate to move a farm bill that recognizes the challenges farmers and ranchers are facing right now. Net farm income is down over $50 billion over the last two years, net cash farm income is seeing the steepest two years’ decline of all time,” he says.

As for when the farm bill could make progress, Newton expects next month’s campaign trips home to help with some momentum.

“Folks are going to go home during October, and they’re going to hear from farmers and ranchers on what their needs are,” he says. “I think they’ll come back motivated to get something done, whether that’s a short term bridge or whether that’s a full five-year farm bill over the finish line. I think members can be motivated to do that when they get back in November.”

Hear more from Newton on ARC and PLC programs as well as the nutrition and conservation titles in this AgriTalk segment:

Your next read: Ag Economist John Newton Named Executive Head of Terrain

8 Factors Shaping the Rural Economy in 2024

Mon, 18 Dec 2023 16:31:33 GMT

CoBank has released their 2024 outlook report , which takes a look at the key themes the organization expects to shape agricultural and the rural economy in the coming year.

Director of CoBank’s Knowledge Exchange Rob Fox shares that while the U.S. economy is still in good shape overall, high prices are expected to continue to take a toll.

Here are the top eight factors to watch in 2024.

1. Global Slowdown
Global growth in 2023 is estimated at 2.5%, which is less than half of the average growth between 2000 to 2018. This trend is expected to continue into next year.

CoBank recommends accounting for permanently slower global economic growth in your business plan moving forward.

2. Prices Remain Elevated
While inflation and the unemployment rate are down, higher prices appear to be sticking.

According to the report, the price of food at home has risen by 25% in the past three years and has affected consumer shopping behavior as a result. Retail spending has fallen in all but two months through the past year – which is expected to continue.

“Consumers are increasingly feeling the pinch of higher prices for food, housing and other essential goods. People have anchored mental expectations about what prices should be and those anchors take a long time to move,” Fox says. “Consumers are beginning to realize some prices aren’t going back to where they were three years ago and changing their purchasing behaviors to reduce spending. That will create stronger headwinds for the U.S. economy in 2024.”

3. Slowed Government Progress Continues
With slim majorities in both the House and Senate, shutdown deadlines continue to loom. Little progress has been made on major legislation such as the Farm Bill.

While CoBank shares the work already put into the Farm Bill could incentivize committees to pass it before 2025, the election of a new Senate Chair and the inexperience of many members of Congress may limit progress.

4. Lower Profitability Resulting From Several Factors
Commodity prices have seen the effect on high interest rates, a strong U.S. dollar and the resiliency of the U.S. economy. And despite the drop in fertilizer prices, the cost of production for agriculture commodities remains high.

CoBank is anticipating ag commodities to benefit from more upside price risk than down in 2024 due to tight inventories and a strong El Nino weather pattern during the growing season.

5. An Increase of Planted Soybean Acres
An expansion of soybean acreage is expected for two reasons: 2023’s smaller soybean harvest in the U.S. and an increase in biofuel demand.

USDA’s early release of its Agricultural Projections to 2033 points to planted soybean acreage rising 4% YoY to 87 million acres this spring.

Current 2024 futures prices suggest a decline in prices for the sector, but the outlook relies heavily on the value of the U.S. dollar, conditions of wheat in Russia and South America’s corn and soybean harvests.

6. Livestock Growth Plans Put On Hold
Lower feed costs and domestic demand should help profitability a bit in the livestock sector, but costs are still high. CoBank expects the industry to focus heavily on efficiency, technology and risk management.

7. Uncertainty In The Dairy Industry
Increased prices for consumers could keep sales growth at a slow rate, though they’re still expected to grow. International demand will play a large role in profitability and lower feed costs paired with improved cow productivity should increase milk production to meet the need.

8. Power, Energy And Broadband Sectors Face Obstacles
Global conflicts create uncertainty for commodity markets and energy prices. While oil prices have fallen by 5% in the fourth quarter, CoBank does not anticipate this environment to last.

As for broadband, investment continues to flow into the industry. However, it will not be without challenges due to a tight labor market, tight credit conditions and a difficult permit process.

Click here to read CoBank’s full report.

Important Differences Between Today and the 1980s Ag Economy

Wed, 01 Nov 2023 18:07:57 GMT

Indiana ag lender Joe Kessie graduated from Purdue University in 1983 with a degree in ag finance – during the height of the 1980s farm crisis.

“I think only about 25% of the graduates in the ag school had jobs at the time of graduation,” he says.

Though it was a tough time to be starting out in the industry, Kessie (who is now retired) is grateful to have experienced so much early on in his career.

“I always tell people I was fortunate to start when I did because I got to see everything that could go wrong in banking and ag finance during that farm crisis,” he says. “It was a little easier to be objective because I hadn’t made those original loans and was working with the clients to get through that.”

He was also able to help customers make the best of their situations.

“In the late ‘80s, early ‘90s, there were tremendous opportunities to take advantage of. Ground was down to $1,000 an acre or less in our area,” Kessie says. “I had some operations that were making adequate money even though their net worth still might have been going down with deflation. I helped them take advantage of some of those opportunities and I formed long term relationships.”

Insights on What’s to Come
Though inflation is currently high, Kessie doesn’t expect a repeat of what he experienced in his early career for three main reasons.

“Back in the ‘70s or early ‘80s, all the farm rates were all variable. When rates skyrocketed, basically all the debt on the balance sheet went up,” he says. “Today, about any kind of term debt is fixed at pretty attractive rates. The higher rates today are affecting operating and if you make a new purchase, but the other debt on the balance sheet is not affected.”

He also shares the overall farm balance sheet and management level is in better shape than it has previously been.

“The farm balance sheet was pretty leveraged in the ‘70s versus now it’s not,” Kessie says. “Overall, the management level is definitely better today than it would have been in the 70s. A lot of the inefficient operations, unfortunately, didn’t make it.”

Investment funds are another reason the state of the current ag economy differs from the 1980s.

“There’s a lot of farm cash buyers but then there’s also a strong interest in investors and investor funds,” Kessie says. “None of that was there in the ‘80s to support the market. The sales we’ve seen in real estate this year continues to go up, and demand is very strong.”

To hear more about Kessie’s reflections and expectations, check out this episode of the Top Producer podcast.

Almost Half of the Largest 100 Cooperatives Are Focused in Agriculture

Thu, 26 Oct 2023 15:51:30 GMT

For more than 30 years, the National Cooperative Bank (NCB) has published its list of top 100 cooperatives across the U.S. For the latest list—based on 2022 data—47 of the 100 cooperatives are in agriculture. In all, 59% of the $319 billion in generated revenues of co-operatives are from those ag-focused co-ops: $187.6 billion.

NCB estimates one in three Americans are a member of a co-op, and NCB provides comprehensive banking products and services to cooperatives and other member-owned organizations in the U.S.

The agricultural cooperatives range from farm supply, grain, dairy, livestock marketing, crop production/processing and more.

Here’s a list of the agriculture-focused cooperatives, with their top 100 ranking.

1 CHS Inc. Inver Grove Heights MN
2 Dairy Farmers of America Kansas City KS
3 Land O’Lakes, Inc. Arden Hills MN
4 GROWMARK, Inc. Bloomington IL
11 Ag Processing Inc. Omaha NE
14 California Dairies, Inc. Visalia CA
15 Prairie Farms Dairy Inc. Edwardsville IL
18 Agtegra Cooperative, Inc. Aberdeen SD
19 Central Valley Ag Cooperative York NE
20 Darigold Seattle WA
22 Select Milk Producers, Inc. Artesia NM
23 New Cooperative, Inc. Fort Dodge IA
25 Landus Cooperative Ames IA
26 Foremost Farms USA Cooperative Baraboo WI
27 Countrymark Cooperative Holding Corporation Indianapolis IN
30 Associated Milk Producers, Inc New Ulm MN
31 MFA Incorporated Columbia MO
33 Ocean Spray Middleboro MA
34 Heartland Co-op West Des Moines IA
37 GreenPoint Ag Decatur AL
39 American Crystal Sugar Co. Moorhead MN
40 Aurora Cooperative Elevator Company Aurora NE
42 United Cooperative Beaver Dam WI
43 Plains Cotton Co-op Association Lubbock TX
44 Producers Livestock Marketing Association Omaha NE
45 Blue Diamond Growers Sacramento CA
47 MFA Oil Company Columbia MO
50 Farmers Cooperative Dorchester NE
51 Upstate-Niagara cooperative, Inc. Buffalo NY
54 Michigan Milk Producers Association Novi MI
55 MD & VA Milk Producers Cooperative Association Herndon VA
56 Cooperative Producers, Inc. Hastings NE
59 Agri-Mark Inc./Cabot Creamery Methuen MA
62 Riceland Foods, Inc. Stuttgart AR
63 Organic Valley (CROPP) La Farge WI
65 Staple Cotton Cooperative Association Greenwood MS
67 Heritage Cooperative Delaware OH
68 First District Association Litchfield MN
69 Amalgamated Sugar Company Boise ID
71 United Producers, Inc Columbus OH
76 Ceres Solutions Cooperative Crawfordsville IN
77 Innovative Ag Services Co. Monticello IA
79 Bongards’ Creameries Chanhassen MN
80 Pacific Coast Producers Lodi CA
84 National Farmers Ames IA
93 Florida’s Natural Growers, Inc. Lake Wales FL

Winter Weather: Find Out What's in Store for Agriculture

Wed, 18 Oct 2023 18:52:06 GMT

The upcoming winter is shaping up to look a bit different than the past several years. The shift to a different weather pattern, El Nino, is in the works – resulting in a very strong subtropical jet stream and a weakened polar jet stream.

Brad Rippey, USDA meteorologist, shares the predictable changes to North American weather those involved in the agriculture industry should be on the lookout for.

Northern Weather Will Be Drier
One of the common changes Rippey shares is unusually mild weather across the northern tier of the U.S. The mild weather is a result of the weak polar jet stream and affects areas stretching all the way from the Pacific Northwest to New England.

“That of course has implications for winter crops,” Rippey says. You don’t get as much establishment of a snow cover, but at the same time, you don’t have a whole lot of cold weather to deal with and there’s less concern for winter kill. So, it’s kind of a tradeoff there.”

(Farm Journal)

Along with the milder temperatures, northern states are also predicted to see drier conditions this winter.

An outlook published by NOAA in late September shows between a 33 to 50% chance of below average precipitation for a portion of the northern U.S between November and March. The areas NOAA expects the largest impact are the Pacific Northwest and Great Lakes region.

(Farm Journal)

The dry, warm conditions have the potential to make this planting season an early one.

“It all depends on how the snow falls, but generally speaking, soil temperatures will likely not be as cold as they were in the spring of 2023,” Rippey says. “Given the mild, dry forecast, there may be a fairly quick planting season in the north for spring 2024.”

The Story for Southern States is Much Different
“The enhanced subtropical jet stream tends to bring stronger storms across the southern tier of the United States,” Rippey says. “Sometimes that affects Southern California but it’s more likely along the Gulf Coast and southern Atlantic coast.”

NOAA’s predication maps show the highest probability of above average rainfall – 50 to 60% – for states along the Gulf and southern Atlantic coasts.

The increased precipitation in those areas is something Rippey says could help with low water levels from the summer’s drought.

“As we get deeper into autumn and the heart of winter, the odds most definitely increase we will see wetter conditions in places like Arkansas, Louisiana and Mississippi where we’ve got not only low water levels impacting navigation, but also the saltwater intrusion from the Gulf,” he says. “It may take a while but eventually as the winter proceeds, we should see relief especially in the southern part of the basin.”

The Wild Card to Watch For
A less clear aspect for this winter’s forecast could be due to elevated oceanic temperatures, which have the potential to keep global temperatures high through the winter and into 2024.

The high oceanic temperatures produce blocking high pressure systems, which Rippey says can be blamed for Canada’s wildfire season and recent heat waves and fires in Europe.

“If some of the oceanic temperatures continue to induce weird blocking patterns, that can lead to extremes like heat, cold, droughts and floods that’s generally independent from El Nino,” he says.

Effects on South American Production
El Nino has different implications for growers in South America.

Key production agriculture areas such as southern Brazil and Argentina are just moving into their spring growing season and the El Nino weather patterns are expected to create more favorable conditions for their crops than La Nina.

“From a crop production standpoint, I would expect improving conditions in some of the areas that have been impacted by drought over the last few years,” Rippey says. “As you move northward into the Amazon basin, El Nino can trigger drought. That’s a concern from an ecological standpoint and that drought often extends into places like Mexico and the Caribbean for as long as El Nino persists.”

High Interest Rates, Strong U.S. Dollar Take a Toll on Ag Economy

Fri, 21 Mar 2025 15:53:06 GMT

According to a new quarterly report from CoBank’s Knowledge Exchange , the combination of the highest interest rate environment since 2007 and a strong U.S. dollar is beginning to take a disproportionate toll on rural industries such as agriculture, forest products, mining and manufacturing.

“The challenge for agriculture and other rural industries that rely heavily on global markets is their export partners simply can’t afford to buy U.S. products,” said Rob Fox, director of CoBank’s Knowledge Exchange, in the company’s press release. “When you combine the loss of exports with a general slowdown in the U.S. economy, it’s a double whammy for many businesses operating in rural America.”

Key Takeaways from the Report

Macroeconomic Outlook

Fed officials now expect interest rates to stay higher for longer.
As the U.S. economy outperforms expectations, countries such as Europe and China have fallen short - resulting in the strong U.S. dollar. This makes U.S. exports more expensive and imports cheaper, heavily impacting the rural economy.

Grains, Farm Supply & Biofuels:

Historically low water levels on the Mississippi River, higher barge rates, a strong U.S. dollar and robust export competition from Brazil and Russia are creating major headwinds for the U.S. grain and oilseed export program.
Acreage for winter wheat planting is expected to be down slightly with prices below expected breakeven costs of production.
Anhydrous ammonia and potash prices fell 30% and 15%, respectively, during the third quarter. Less fertilizer usage is expected in 2024 as acres shift from corn to soybeans.
Ending stocks have tightened and are now 17% below the March 2023 peak.
Renewable diesel and other biofuel capacity is up 26% since January 2023.

Animal Protein and Dairy

USDA estimates total U.S. beef output will be down 5% in 2023 and expects an additional 7% decline in 2024.
Pork cutout values increased 41% from May through July, countering weak prices earlier in the year. Hog prices also rallied, with nearby hog futures climbing 36% from late May through early August. With production rising and seasonal interest fading, markets have since cooled.
Strong cheese production and slowing dairy exports pulled Class III milk prices down to $13.77 per cwt. However, futures markets indicate the final quarter of the year could be much better, with projected Class III milk prices at $17.30 per cwt.

Cotton and Sugar

Cotton production was hindered by ongoing drought and USDA is expecting a year-over-year drop of 9.2%, bringing the lowest level in 10 years. Heading into the fourth quarter, outstanding export sales of all U.S. upland cotton were down 23% year-over-year.
Drought was also an issue for sugarcane producers in Louisiana and Texas. Yields in the region are expected to fall to the lowest level in 16 years, but sugarcane harvest is expected to climb as key growing states have benefitted from ideal conditions.

Specialty Crops

Monthly fruit imports have recently declined but are positive in the longer term.
U.S. fruit and vegetable exports are growing in dollar terms.
Orange production may shift north as disease threatens Florida options.
Fresh potato usage has slipped, and shifting more into frozen.

Oil

U.S. crude oil prices increased 30% in the third quarter, with WTI futures rising from $71 at the start of July to $95 by the end of September.
High prices are marked by an important re-ordering in global supply, intransigent producers and a global economy that simply won’t slow down.
Without greater demand side destruction, transportation costs are likely to remain elevated through 2024.

These Farm Kids Had the Best School Absent Note Excuse

Thu, 07 Sep 2023 20:01:01 GMT

Being a farm kid means that you rise with the sun and head out to the barn to help with chores before school starts. It also means returning home after school to help with evening chores. This is especially true if the farm kid lives on a dairy farm. After all, dairies operate 24/7, 365 days a year.

When kids headed off to school earlier this year, many farm owners quickly realized how much extra help their farm children were. With harvest approaching, the to-do list grows longer and finding extra farm hands is easier said than done.

This was the scenario the ten Hoeve family found themselves in during last year’s silage harvest. Gerben and Julie ten Hoeve’s oldest son, Ian, begged to miss a few days of school to help chop corn on his family’s 650-cow dairy farm earlier this week.

“It is something he looks forward to all year long,” Julie says.

So, when Julie called her son’s high school to report Ian being absent, she worried about what the school would say. The school’s response eased her mind.

“I will mark Ian absent tomorrow for farm work. Thank you for all you do to keep the U.S. running. I appreciate it,” is what the school secretary wrote.

Ian has his own YouTube channel, Automated Farmer (www.youtube.com/c/AutomatedFarmer), where he highlights videos of working on the family’s dairy farm in Waverly, Iowa. From mowing alfalfa and hauling manure to showcasing their newly complete dairy calf barn, the eager teenager lives and breathes everything farming.

It truly is great when school administration and teachers not only understand, but appreciate all the work farm kids do away from the classroom. Students often can miss school for sports, which teaches valuable lessons. But truthfully, it is hard to duplicate the life lessons learned working side-by-side with older generations on a family farm.

This is why I smiled big when my 16-year-old daughter, Cassie, told her basketball coach earlier this spring that she needed to miss practice/conditioning because “the guys needed her help with chopping rye.”

Despite living in the home of John Deere, with thousands of acres of corn all around us, my kids are the only farm kids that attend their school. So, it delighted us when Coach Pav told Cassie this was the best excuse he’d ever heard and excused her from missing basketball practice.

So, here is to the farm kids whose learning goes far beyond the classroom, it stretches to the corn field and to the dairy barns. Thank you to those teachers and staff who realize to feed a nation takes a team. And often farm kids are a huge part of that team.

Inflation and Recession Pressures: Is Farmland a Good Investment Right Now?

Wed, 23 Aug 2023 15:52:30 GMT

The Federal Reserve is hosting its Economy Policy Symposium this week, which has all eyes on Jackson Hole Wyoming for further details on inflation, interest rates and if a recession is looming. But would a recession effect your operation the way you think?

According to Bruce Sherrick, professor at the University of Illinois, you might not need to worry about what inflation is doing to your farmland values.

“Farmland returns are very highly correlated with inflation,” Sherrick says. “Most importantly, it has a positive correlation with inflation.”

Sherrick says this correlation is derived from the size and debt of the industry.

“Put the entire holdings of the country on one balance sheet and it’s now four trillion plus and only 13% leveraged, so 13% debt underneath it,” he says. “An interest rate change doesn’t have as big of a proportional impact as if you were talking about companies traded on the stock exchange, where the average leverage turns out to be around two-thirds.”

While the percentage of debt is low in comparison, he also highlights it’s mostly long-term, fixed-rate debt. Increasing interest rates won’t have as large of an impact on that, but it will decrease transactions.

Outside of inflation, there may be other reasons farmland values remain elevated.

According to the Federal Reserve Bank of Kansas City, a steady supply of land sales and strong demand from farmers has likely supported broad resiliency of real estate values so far in 2023.

Is It a Good Time to Invest in Farmland?

The Kansas City Fed also reported that growth in farmland values has eased from recent years but remains steady. So, despite higher interest rates, farmland remains a wise investment opportunity.

“People sometimes refer to farmland as an investment in gold, plus a coupon,” Sherrick says. “You get a fairly low annual cash flow, fairly high long-term rates of return and tax advantages to the asset classes.”

He outlines how the type of farmland to invest in remains up to the buyer’s background and risk tolerance.

Annual production crops – such as corn, soy and wheat – offer higher stability due to tenants or crop insurance to help manage risk. However, permanent crops – such as tree nuts, wine grapes or citrus – would be expected to have higher total return over time but higher volatility.

“If I were picking both from a financial and an emotional perspective, the next place I could put a dollar, I still would favor farmland pretty highly,” said Sherrick.

As for an outlook into 2024, Sherrick says to expect moderate changes.

“I won’t be surprised if in the next year we have a softening of land values,” Sherrick says. “It won’t surprise me, but I’m not expecting a crash and I don’t see it as being driven entirely by interest rates.”

Hear more on The Top Producer podcast, hosted by Paul Neiffer:

John Phipps: Is There Really a Shortage of Truck Drivers?

Mon, 14 Aug 2023 16:07:06 GMT

Cast your mind back to early 2022 and the headline-grabbing Trucker Shortage . My conclusion then was there wasn’t much hard data to substantiate that alarm. There has always been a need for truckers and perversely there seems to have always been ample qualified workers to fill it.

It didn’t take an economics degree to figure out the problem: truckers simply weren’t being compensated enough to entice and keep workers. Now a year and a half later the headline is the demise of one of America’s largest trucking companies – Yellow Trucking – and the end of 30,000 jobs they represent.

(Farm Journal)

Freight companies are struggling now with reduced demand, which threatens even more trucking jobs. At some point most of us begin to wonder about these alleged shortages. Adding to the muddled picture of jobs and pay is the historically low unemployment rate which emphatically illustrates how small the pool of potential employees is.

Related Story: Walmart Will Now Pay Starting Truck Drivers $110,000, Could It Backfire and Make the Nationwide Trucker Shortage Even Worse?

For trucking, which is often a career step up from entry wage employment, increases in the minimum wage by many states has helped low-wage employees keep up.

Since the pandemic, the surprising strength of low wage compensation compared to skilled or managerial wages removes some motivation for workers to consider a trucking job. Note the inversion after the pandemic of which income quintile is seeing greater wage increases.

Trucking companies have long dealt with astonishing turnover rates since the prospective employee pool was large and already qualified. New CDL licenses are issued to about half the current trucker numbers each year. Short-lived shortages are not limited to employees either.

Related Story: SHIP IT Act Could Save Truck Drivers Up to $10,000 and Cover CDL Costs

I started looking back at the numerous “shortages” and dire predictions of the last few years. At least some semiconductor chips, for example, are in now surplus, even a glut. We’ve discovered more new sources for lithium than anyone imagined. Ditto for copper, cobalt, and phosphates.

It appears markets can remedy shortages faster than we have imagined, and the few stubborn scarcities are sidestepped with alternative solutions. Not always, but certainly more than the hysterical headlines suggest.

There will always be warnings about trucker shortages, I suspect, but not from truckers.

3 Trends that Will Drive the Food System of the Future

Thu, 20 Jul 2023 18:30:46 GMT

These three tenets will drive the industry and impact farms

The food system is being reimagined today and farmers can benefit by thinking about how to improve their ability to take advantage of opportunities in the process, says Rob Dongoski, partner and food and agribusiness leader at Ernst and Young. He says the food system will be based around the following three tenets.

1. Consumer Centric
This transition was underway and received a big boost from the COVID-19 pandemic. Dongoski anticipates the transformation will be significant in the next five to 10 years.

Consumers are increasingly listening to what product marketers are telling them rather than scientists.

“Marketers are winning the communication battle because they are better funded,” he says.

Part of what’s at play is significant changes in consumer demographics. Dongoski says the most populous generations in the workforce today are Millennials and Gen Z.

“While Boomers and Gen Xers think about cars and houses as status symbols, Gen Z and Millennials think, ‘I grocery shop at Whole Foods. I cook at home. I go to the farmer’s market.’ Their experience with food is very different,” he says.

2. Planet Friendly

“Farmers are land stewards as land continues to be the largest asset on their balance sheet,” Dongoski says. “As their stewardship practices become more understood by consumers, I think it will bring new light to the definition of sustainable food.”

Still, he does believe farmers have opportunities to be more conscious of practices that are planet friendly.

“There are many opportunities to care for livestock differently, for example,” he says. “The pendulum can shift to extremes, but I do think we can be smarter.”

3. Connected System

“When I think about the future of food, I believe the food system will look retro,” Dongoski says. “The future is a place farmers and consumers have been before.”

Decades ago, he says, consumers had a butcher and a baker on the corner, and milk was delivered to their home. Consumers knew their food producers and processors.

In the future, that personal connection won’t be based on geography, instead it will be based on data.

Today consumers get glimpses of farmers’ production practices in grocery store aisles and on menus, as stores and restaurants feature names, photographs and information on the farmers who produced the food.

“That’s how consumers will have insights into your operations and practices, which will influence consumers,” he says.

Listen to Rob Dongoski share trends on the “Farming the Countryside” podcast:

Read more stories from the 2023 Top Producer Summit:

Preventative Maintenance for Your People: How to Reduce Turnover and Boost Morale

How to Run An Innovation Sprint on Your Farm

Nominate Outstanding Farmers for Awards from Top Producer

Take Time to Celebrate Accomplishments

5 Business Principles That Define Success

Farming Boom or Bust in the Decade Ahead? How to Manage Price Cycles

Be Inspired by Five Remarkable Farm Operations

Ideas Big and Small: Create a Culture of Creativity on Your Farm

America’s Top 10 Favorite Ice Cream Flavors

Thu, 15 Jun 2023 18:54:18 GMT

Thermometers are boiling across the country as the heat of the summer sets in. Thankfully, July marks the start of National Ice Cream Month. Why not cool off with a scoop or two of your favorite flavor?

According to the International Dairy Foods Association, the average American eats roughly 20 pounds of ice cream each year, or about 4 gallons. America’s top 10 favorite ice cream flavors include:

Vanilla
Chocolate
Cookies & Cream
Mint Chocolate Chip
Chocolate Chip Cookie Dough
Buttered Pecan
Birthday Cake
Strawberry
Moose Tracks
Neapolitan

According to indexbox, ice cream is the most popular farther north, with particularly high demand found in Wisconsin, Illinois, Michigan, Ohio, and Indiana.

While Americans can indulge in ice cream every day, in 1984, President Ronald Reagan designated July as National Ice Cream Month and the third Sunday of the month as National Ice Cream Day. This year, National Ice Cream Day will be Sunday, July 16.

U.S. Milk Production and Cow Numbers Both Rise

Tue, 21 Mar 2023 20:38:56 GMT

The February 2023 USDA Milk Production report showed an 0.8% increase in year-over-year milk production with a total of 17.7 billion lbs. of milk. Five of the top six states illustrated production growth except for California, which declined.

Also following suit, U.S. cow numbers documented growth, up 37,000 head from last February and up an additional 12,000 cows from last month. In fact, five of the top six states illustrated positive growth except for Wisconsin, which lost 3,000 cows.

Dan Basse, president of AgResources Company, told the PDPW audience last week at their business meeting in Wisconsin Dells, Wis., that the reason for a decline in cow numbers in the Badger State stems mostly from environmental pressures.

State	Production	% Change	Cows
California	3.282 billion lbs.	-0.9%	+3,000
Wisconsin	2.445 billion lbs.	+0.3%	-3,000
Texas	1.326 billion lbs.	+5.5%	+22,000
Idaho	1.284 billion lbs.	+3.4%	+15,000
New York	1.222 billion lbs.	+2.9%	+10,000
Michigan	927 million lbs.	+3.1%	+7,000

These top six U.S. cow number states account for more than half of total U.S. production. Production per cow in the U.S. averaged 7 lbs. more than in February 2022.

Phil Plourd, president of Ever.Ag, says tailwinds from generally strong 2022 profitability continue to propel modest growth in our national herd size as well as milk output.

“That could continue for a bit, but we see headwinds on the horizon as lower milk prices cut into margins,” he says. “We doubt that milk production will be robust by the time the fourth quarter rolls around.”

Tanner Ehmke with Co-Bank says the new cheese processing capacity coming online in the Texas Panhandle also adds a tailwind to the herd growth in states like Texas and Idaho. The driver behind this is feed availability.

“Herd growth areas, like Texas and Idaho, are going to continue to get bigger,” he states.

Owning Farmland Is Now Cool, Even If You Don't Farm

Wed, 01 Feb 2023 22:17:29 GMT

For those in agriculture, owning farmland has long been viewed as a symbol of status and wealth. Now, even individuals who don’t farm are jumping on board, looking to buy farmland. The interest from outside investors has propelled farmland prices higher over the past year, but even with the rapid run-up in prices, experts say we aren’t in the middle of a farmland bubble.

The top two farmland sales in Iowa raked in $21,000 and $20,000 per acre last week. While it’s not a statewide record, the strong interest and bids on farmland are proof farmland prices are in the midst of a bubble, as farmers are still in the majority of winning bidders at auctions today.

Related Story: A New Way to Rent Ground is Gaining Traction - With Cash Rent Bids in Illinois Topping $600 Per Acre

“It is the farmers who can afford to pay the higher prices,” says Jim Rothermich of Iowa Appraisal. “Their hold period is much longer than an investor. A farmer’s hold period could be from 50 to 100 years. So, if they pay too much for a piece of ground over time, it’ll work itself out and in 50 years, people ask, ‘Why didn’t you buy more land at that price?’”

Professional Athletes Are Buying Farmland

Buying farmland is so cool, even professional athletes are now buying land. Earlier this month, Cincinnati Bengals quarterback Joe Burrow, along with Boston Celtics forward Blake Griffin and a few other athletes, pooled together to buy farmland in northeast Iowa. The 104-acre farm was a transaction made through Patricof Co., a private New York investment firm that facilitated the deal.

“Owning land has become popular, it’s trending,” Rothermich says. “If you can go to the coffee shop and say you own land, or even Joe Burrow going to maybe a Super Bowl party and telling all his friends how much land his has, that’s the cool thing to do now.”

Burrow might not be playing in the Super Bowl, but if he does have a watch party, he will be able to tell his friends he owns farmland. Rothermich says the group of athletes purchased the 100 acres in Benton County, Iowa, for just over $10,000 per acre.

“I think they got a good deal, by the way, but they are wanting to get into the land space,” Rothermich says.

It’s not just professional athletes. Entrepreneurs, doctors and lawyers also see it as a symbol of status and wealth, joining their friends who are all in search of owning a piece of prime real estate. And today, that’s farm ground.

Not a Farmland Price Bubble

The strong interest, both in farming and outside of farming, is what’s laying a foundation for continued strength in not only land prices, but also a historic increase in cash rents . Rothermich points out while Iowa is seeing record farmland prices, Illinois is seeing records in the cash rent market.

“Rent auctions provide true open market rental valuation and answer the question: What will the market bear for my ground,” Rothermich says. “Farmers bid based on how much they would pay per acre to farm the ground for the specific lease term.”

“I don’t think this is a bubble because that implies it breaks with a massive deflation,” says Mike Walsten, contributor to Pro Farmer’s LandOwner newsletter. “Yes, there have been quite a few seemingly irrational land auctions and rent auctions at $600 an acre, but there were also quite a few signs of cooling while these headliners occurred.”

Low-Quality Farmland Showing Signs of Weakness

Rothermich points out low-quality farm ground is starting to see some pressure. However, high-quality ground remains the hot commodity, with prices continuing to post gains.

“Yes, values are leveling off,” Walsten says. “The top- and medium-quality ground stills show low single-digit gains. Lower-quality ground is firm where no top-quality ground is available — southern Illinois for instance.”

Walsten says there have been some no sales - and an increasing number of slow sales- that started late fall and now into winter.

“These came where communities are normally much less aggressive on land purchases, the ground was less than top-quality, the percent tillable versus was low, the area has very little livestock, tile, etc. is needed. In a bubble, all this type of ground gets gobbled up,” Walsten says.

Related Stories:

A New Way to Rent Ground is Gaining Traction - With Cash Rent Bids in Illinois Topping $600 Per Acre

5 Eye-Popping Farmland Sales from 5 States

$30,000 Per Acre? Yep, The Details on the Latest Record-Breaking Farmland Sale

Beyond the Buzz: Land Values, Fundamentals and New Services

2023 Cash Rent Outlook: Be Ready for Higher Rates

Rental Rally: Don’t Let High Cash Rents Sink The Farm

Bomb Cyclone: Not Helpful in Ending California's Drought

Tue, 10 Jan 2023 18:33:00 GMT

The bomb cyclone has sucker punched California—flooding homes and roads and knocking out power. While many farmers have prayed for rain to end the ongoing drought plaguing the state, a leading expert says that the bomb cyclone will not end California’s persistent drought.

“The short answer is no, this bomb cyclone will not end the drought in California,” Dr. Thomas Borch with Colorado State University says.

Borch shares that consistent rain patterns throughout the year are needed in order to end the drought facing the Golden State.

“Not these fast and heavy storms,” he says. “Also due to the increase in temperature, we see higher evaporation rates than previously and combine that we are rapidly increasing the demand for water and you end up with water scarcity.”

According to the U.S. Drought Monitor, the downpours facing California are expected to bring short-term relief. A month ago, around 85% of the state was in the midst of a ‘severe drought,’ which has fallen to about 71% since the bomb cyclone made its way to the Golden State.

Richard Heim, a meteorologist with the National Centers for Environment Information says, “We need this stuff to happen this month, February, March, April — every month to really build up the snowpack, fill up those [water] reservoirs and knock down those [precipitation] deficits. “Unfortunately, a lot of it is coming too fast, too heavy.”

Borch agrees with Heim, adding, “Most stormwater runs into small bodies of water like creeks and streams, although it will likely head to whatever water source is close by,” he shares. “Eventually, that water will travel to other larger bodies of water, like river, lakes, or oceans.”

Broch shares that currently a lot of focus is set on trying to treat and reuse stormwater.

California Farmer: The Worst We’ve Ever Experienced

Located in Lodi, Calif., 40 miles southeast of Sacramento, dairy farmer Hank Van Exel says that the main cause of drought is that California has not built any dams.

“Especially on the Cosumnes River,” he says. “It runs wild. This dam was voted on years ago, but never built.”

Van Exel says he bets 75% of the extra precipitation that comes out of the “Bomb Cyclone” will go to the ocean.

As of Monday afternoon, Van Exel says that terrible winds up to 60 mph have taken hay barns and he just learned that a neighboring dairy’s freestall barn is gone.

“They are saying that area might have to evacuate,” he says. “A lot of the plastic of the silo pits have been blown away and it got 3 inches of rain on it.”

Last week Van Exel received 10 inches of rain and was out of power for 36 hours but shares that so far, he has not had to dump any milk.

“By far this is the worst we have ever experienced,” Van Exel says. “The problem is that this storm is relentless. We get a 6-hour break and then you lose everything you gain the next night.”

U.S. Expands Dairy Clash with Canada Through the USMCA

Wed, 21 Dec 2022 22:03:15 GMT

The U.S. is requesting dispute-settlement cosulations for a third time over Canada’s dairy quotas, saying it has found more areas of “deep concern” and that the nation’s measures are inconsistent with it’s obligations under the U.S.-Mexico-Canada Agreement (USMCA) .

Washington is expanding its challenge to include Canada’s use of a market-share approach for determining the quotas, according to the Office of the U.S. Trade Representative. It said Ottawa’s method prohibits eligible applicants--including retailers and food-service operators--from accessing allocations.

Under the USMCA that took effect in July 2020, Canada conceded to granting more duty-free or lower tariff access across dairy products though a tariff-rate quota, or TRQ, with products including:

Milk
Cream cheese
Yogurt
Ice cream

But Canada was allocating a bulk of those imports to processors, limiting the ability of other groups like retailers to buy U.S. products.

“We remain very concerned by Canada’s refusal to honor USMCA commitments,” Ambassador Katherine Tai said. “Rather than work toward meeting its obligations, Canada persists in implementing new dairy policies that are inconsistent with the USMCA, and which continue to deny U.S. workers, farmers, producers, and exporters the full benefits of market access they were initially promised.”

The U.S. previously won a case under USMCA dispute settlement procedures, but has rejected Canada’s solution to the situation and requested additional consultations in May on the policies. Those discussions raised additional concerns by the U.S. and prompted this latest request for formal discussions on the issues.

If there is no eventual solution, the U.S. can request another dispute settlement panel be established.

More on policy :

How the $1.7 Trillion Omnibus Spending Package Might Impact Your Operation
4 Ways to Advocate for Ag in the New Farm Bill

Is the Great Financial Reset Now Underway?

Mon, 19 Dec 2022 19:28:54 GMT

Dairy farmers are finishing a strong financial year, despite concerns about labor and feed costs, and those concerns are at the forefront of conversations as they enter 2023.

One major bright spot in 2022 is domestic dairy demand, which is on a record pace. During Farm Journal’s Milk Business Conference (MBC) this week in Las Vegas, it was clear it’s now a question on if inflation and higher dairy prices at the store will eat into consumers shopping decisions in 2023. “I think the cost of everything, and of course, water issues are huge in California,” says Arlene Vander Eyk, a dairy farmer in Pixley, California.

It’s not just dairy products seeing the impact of inflation. Dairy farmers from across the country are wading through the reality of higher feed prices, input prices and inflation across the board.

“Inflation has reached a zenith, it did so back in March. It’s now coming down,” says Dan Basse, president AgResource Company . “The question is, ‘How far will it fall in 2023? And what’s the new natural rate of inflation?’ Back in the last 10 years, it was somewhere around 1.4%. We now think it’s closer to 3% to 3.5%, meaning that interest rates are going to be staying higher.”

The Consumer Price Index (CPI) this week showed a positive sign and the rate of inflation is slowing. In the 12 months through November, the CPI climbed 7.1% which was the smallest advance since December 2021, and followed a 7.7% rise in October.

The annual CPI peaked at 9.1% in June, which was the largest increase since November 1981.

However, inflation remains above the Fed’s 2% target. And as the Fed make a decision on more rate hikes in 2023, Basse is dubbing it the “Great Reset,” and one that he says is costing farmers more money on nearly every corner of the farm.

“If you look at seventh district data for the Kansas City Fed, this is the big farm states and the I-States in the middle of the country, they are now looking at operational loan costs being around 6.8%,” says Basse. “If you needed to borrow money to buy farmland, it’s about 6.5%. This is up about three percentage points from last year substantially. And so, whatever your interest rates costs were last year, it’s going to be double.”

Basse thinks interest rates could increase again early next year. With the Fed Rate hike this week, he thinks two more could be coming in 2023.

“The great financial reset is happening where interest rates are rising,” says Basse. “There’s a new asset class called cash. And as we look forward, I think that reset will have a big impact on recall repricing assets, not so much farmland but equities and lots of other things and farmers need to be aware of that,” Basse says.

Farm Journal’s Washington correspondent, Jim Wiesemeyer, says he’s more concerned about 2024 than 2023 in terms of the great financial reset and impact on agriculture.

“Later in 2023, I think you’ll see some of the pressures start, because as the carryover from relatively firm prices, this past year play out and some of these ad hoc disaster payments are spent and other foreign program payments. So yeah, 2024 could be some crunch times. It has to be cash flow, your cash flow is your predominant and cutting costs,” Wiesemeyer says.

One Year Later: New Jersey’s Largest Dairy Rebuilds After Being Leveled by Hurricane Ida

Thu, 03 Nov 2022 19:39:27 GMT

On September 1, 2021, cows were being milked and corn had just started getting chopped at Wellacrest Farms, the largest dairy in New Jersey. Around 6 p.m. that evening, as the cows were standing in line waiting their turn to get milked, a tornado touch down in Mullica Hills.

For three generations, Wellacrest Farms, owned by the Eachus family, has been in operation. The farm is home to 600 cows and an equal number of replacements. However, in 60 seconds a tornado spawned from the remnants of Hurricane Ida and completely devasted the family farm.

The Eachus family, who had all taken cover, walked out, shocked by the overwhelming destruction, and somehow through the grace of God, they were able to put one foot in front of the other and went to work.

Their chopper was wrecked, as was other equipment. Debris was all over. Cows were crying. Steel was ripped off barns, including their double-14 parallel parlor, but the actual milking units and wiring still were intact.

“It’s a miracle,” Marianne Eachus says.

A local company brought a generator, helping restore partial power and milking started back up around 1 a.m.

The cows were exhausted and so was the family, but once the generator restored power, the cows came through the parlor, one by one, until they were all milked.

“Everybody continued to get milked, fed and watered and taken care of,” Marianne says.

Earlier that day, Marianne’s husband and son headed to the field and began chopping corn. Only two loads were completed before the tornado came through.

“We didn’t get back to chopping until almost a month later,” Marianne says. “Everything was pushed back.”

A domino of pushbacks continued to this day.

“We had a later wheat crop and we had to hire someone to come and spray because our sprayer got demolished,” she says.

Supply chain headaches delayed getting equipment relocated and made finding supplies to rebuild a challenge. Marianne says that she and her family were already exhausted before the tornado ripped through.

“We had just come off of COVID-19, and thankfully we didn’t have to dump milk, but we were only getting paid for 85% of our milk,” she says. “We had two years of struggling and we had talked about downsizing.”

In addition to milking 600 cows, the Eachus family farms 2,000 acres of crops and owns a 500-acre hay farm in New York, along with custom farming.

“We’re very diversified and truthfully, that’s the only reason our farm made it through the pandemic,” Marianne says.

The Adrenaline Effect

When the sun peaked up the following morning, true devastation was revealed.

“We knew that cows were hurt, and my husband and I embraced, cried and then were like, ‘Where do we start?’” Marianne says.

The thought of rebuilding was so overwhelming, as it wasn’t like they just needed a roof and windows; 90% of the buildings were completely gone.

The farm was purchased in 1943 by Marianne’s husband, Ward’s family. The family milked cows and delivered milk from doorstep to doorstep. Ward is one of eight kids and many of his siblings have their own farms.

“Dairy is in our blood. My kids grew up here. My grandchildren are being raised here now,” Marianne says.

Donations began pouring in. People were walking down the lane to offer a lending hand or a case of water. A GoFundMe account raised more than $120,000, which later the Eachus family used to help rebuild their heifer barn.

“The outpour of help was overwhelming,” Marianne says.

In addition to food and water, big equipment, like excavators came in and more people, all willing to roll up their sleeves and help pick up the debris, came down the driveway.

Marianne says that she looked to her husband and said, “We have to move forward now.”

Learning that the largest dairy in New Jersey had been hit by a F1 tornado drew waves of people in.

“The outpour of help redeemed my faith in humanity,” Marianne says.

Still emotional talking about what unfolded more than a year ago, Marianne says the devastation that hit the family farm was like a death in the family.

“We hold onto all the great memories and somehow just move forward,” she says.

The total loss is estimated at $2 million, although the Eachus family is still battling with insurance companies today.

“It all had been an emotional financial struggle,” she says.

Community Support

The community support was widespread. Local restaurants donated food to ensure the family and all their employees were fed.

A few days after the tornado came through, a couple of Amish men stopped in and offered to volunteer their time to help with the rebuilding process. From a metal roof to hammering 2 x 4’s, installing windows, whatever they could do to help, they did. What they wouldn’t do was except pay. The only payment they would accept is having a meal provided. Which the local restaurants and families made sure the entire work crew – family, employees and those volunteering, including the Amish, were fed, day in and day-out.

“If I had to pay all that labor, I know we wouldn’t have been able to rebuild half of what we did,” Marianne says.

As promised, for 10 weeks the Amish work crew showed up, rolled up their sleeves and worked. Somedays it was a handful, other days, nearly 25. Their ages ranged from 14 to gentlemen in their 70s.

“What one crew started, the next crew came in and just started up where they left off,” Marianne says. “They were amazing help.”

The destruction was massive. Four harvesters were blown down. 45 cows died. And, so much more. Harvest continued until December. Their combine was destroyed, and the fields were covered with debris.

Despite the massive blow Wellacrest Farms experienced, the Eachus family feels blessed. With three generations on the farm today, Marianne says she hopes that her grandchildren will want to continue the family farm someday.

“The farm is in better shape than it has been in probably the last 10 years,” she says.

“Everything the color blue on our farm is a sign of rebuilding that happened from the farm. Which was a lot,” she shares.

Wellacrest Farms’ feed company offered a 0%, $100,000 loan, to serve as a line of credit, to begin the rebuilding process. Factor in the GoFundMe, and all the cash donations, and the Eachus family feels blessed for the outpouring of support.

Marianne says it’s hard for her to watch the news on television with all the devastation that Hurricane Ivan brought to Florida this fall.

“It’s just too hard,” she says. “It brings back all that we have gone through.”

Her 5-year-old grandson gets hysterical when weather alerts come across the television.

“He’s a tough guy, but as soon as it starts to get a dark cloud, he begins to cry,” she says.

The tornado has affected the entire family, but more than anything, it has made them feel grateful.

“I wish I could write a thank you note to every single person who offered help in any shape or form,” Marianne says.

Letters from California to Florida and everywhere in-between came, but one letter that came from an older gentleman in a nursing home still sticks with Marianne a year later.

“He wrote me a beautiful letter, saying his grandparents had a dairy farm when he was younger and they had to take the milk and put it in the cans and take it to the dump station with his father,” she said crying. “He sent me $20 and that was what meant the most to me.”

Resilient, a year later the Eachus family, their herd of cows and their employees all have been through so much. They’re thankful for the outpouring of support from their community to help them rebuild. Without them, Marianne says she doesn’t know how her family would have rebuilt.

“Everyone helping us out gave us strength to take it one day at a time,” Marianne says.

Is Carbon the New Cash Cow? Elanco CEO Thinks Dairy Farmers Could Make More Money Off Carbon Than Milk

Thu, 20 Oct 2022 16:19:22 GMT

Work on Vir-Clar Farm this time of year is in constant motion. A dairy doesn’t have a day off—but fall manure applications means the rhythm is even faster than normal, even with supply chain headaches.

“We’ve had problems getting some supplies, we’ve had problems getting parts and products like milking gloves and blood tubes, penicillin now has been a problem; products that I could have never even imagined being a problem getting,” says Katie Grinstead with Vir Clar Farm in Fond du Lac County, Wisc.

Grinsted admits she’s seen a lot of firsts since 2020, but what may be one of the most challenging pieces is the amount of money she’s had to pay up front in order to secure parts and other products she needs on the farm. Another heavy weight isn’t just the availability of feed for dairies out West, but the cost of feed products across the U.S.

“Feed costs continue to be our number one expense here at the dairy. Some ingredients have been up as much as 50%,” she adds.

Grinstead says across the board, most costs are 30% higher today, forcing the dairy to become even more efficient.

“We’ve embraced automation in our feed center,” she explains. “All of our expensive ingredients are put in bins. We utilize augers and the computer to really only use the precise amount of each ingredient that we need.”

Move to Automation

She says the move to more automation has helped produce higher accuracy on the farm, now achieving 98% accuracy every time they make a batch of feed. That efficiency is helping not only in terms of money savings, but also with their cattle.

Automation is helping address the second biggest cost on their farm today – labor. The dairy is an industry that’s been labor tight, even before the pandemic. That’s why Vir-Clar Farm has made employee retention a top priority.

“We started a few years ago really focusing on our employees and which employees maybe want to learn and grow and maybe go from being a milker to then grow into being somebody who’s in the maternity barn, who then might be the next assistant herdsman,” says Grinstead. “That’s really helped us maintain employees that have the drive to want to do more.”

The dairy also offers a ride service to and from work, as well as a uniform program.

“We like to have fun,” she says. “We try to have fun parties, whether it’s Christmas or a summer party. We recently had a pizza party to celebrate being done with corn silage. I cook when they’re in the fields late, just whatever we can do to try to make it a good work environment for them.”

Powering a Community Via Waste

What also makes this dairy farm a leader is how they continue to embrace technology. The farm put in a methane digester in 2004.

“We’ve been producing electricity for roughly 800 homes a day here utilizing the manure as a fuel source,” she says.

Powering a community by what was once considered waste is not only helping the farm’s sustainability efforts, but it’s also generating additional income.

“We’re actually taking something that is considered a waste product to most by producing electricity, separating bedding, the dry solids off for bedding, reducing the odor. We’ve been doing that already and we’re going to take it to the next step and produce renewable natural energy,” Grinstead says.

Strong Vision for the Future

Dairy’s ability to turn waste into an energy source, is something Elanco, the world’s second largest animal health company, sees as an opportunity.

“There are numerous countries, all parts of the value chain governments that are saying we are going to do something about the climate,” says Jeff Simmons, president and CEO of Elanco .

Simmons not only thinks climate neutrality is possible for the livestock industry, he believes the industry is already well on its way. Simmons says there are four ways farmers can look at not only reducing their environmental footprint, but also cashing in on carbon.

“There’s on the land, what are you doing on the land; no- till, all the different things that are done the land,” he says. “Second, what you do in the animal. That’s where Elanco comes in; the ruminant of the cow. How do we create less methane coming out of that cow by what we do in the cow with nutrition with other things. Third is out in the land is digesters, it’s saying what are we doing with the manure in the waste? And lastly, is what are you doing in the value chain with ESG? Whether that’s purifying water and getting credits from a nestle, or whether that’s some you know, someone that’s trying to target and want that.”

Dairy is the Part of the Climate Solution

Simmons is so confident in livestock’s ability to be part of the climate solution, he thinks dairy farmers could soon make more money off carbon credits than they do off the dairy products they sell.

“It starts when you look at what your is footprint today? How much greenhouse gas are you creating? What are you doing to reduce that? And can you get to a state where you’re actually taking care of all the gas you create where you’re not making any footprint? And that comes from methane to carbon, etc. So, it is possible because people are getting closer and closer,” says Simmons.

Simmons’ statements aren’t just bold, he says he’s seeing some of the most innovative dairy producers across the country who are less than two years away from making more money off the carbon contracts they sell than the dairy products they produce.

Hungry for Animal Protein

It comes at a time when protein is in high demand, which is a fact Simmons says is often overlooked and under celebrated.

“Animal protein demand continues to grow,” he says. “It’s probably the biggest misnomer, even inside our industry, sometimes. The last 10 years, we have increased 60 million metric tons, the prediction is the next 10 years, we’ll need to get to 90 million, another 50% more growth. Why? There are people in other continents that are increasing their GDP. But the second is, you’re seeing this Western diet, more protein, less carbs. What we produce is under tremendous demand, the fastest growing food segment today is animal protein. When demand is up, you turn and say, ‘Hey, there’s real opportunity here for the farmer to play a role.’”

Supply Chain Impacting Timeline

While dairy leaders like Simmons say livestock producers are part of the climate solution, those on the farm level says supply chain issue are also impacting the timeline to grow renewable natural energy.

“The supply chain has actually slowed that whole process down, that should be up and running,” says Grinstead. “We had equipment and parts and stuff sitting on ships that we couldn’t get here. We’re very anxiously waiting for that project to be done.”

A project driving diversity on Vir Clar Farm could finally cross the finish line in 2023, at a time when livestock producers could be the climate solution.

For more on sustainability, read:

Hurricane Ian's Deadly Punch to One Florida Dairy

Wed, 05 Oct 2022 21:36:41 GMT

The Category 4 Atlantic hurricane was both deadly and destructive. It ranks as the second most damaging hurricane, behind Hurricane Katrina in 2005, to make landfall. Despite experiencing Hurricane Ian firsthand, Dakin Dairy Farms in Myakka City, Fla., is committed to not only making sure their cows are still well cared for, but they’re also becoming a helping hub for their local community.

Courtney Dakin, the farm’s tour director, says they are taking in donations and sending them out, and she encourages anyone in need to reach out to them.

“Dakin Dairy would like to be a hub for the community. If you have anything you would like to donate, we have the means to disperse it. If you have any needs, please reach out,” the farm posted on its Facebook page over the weekend.

As of Monday afternoon, Dakin says the community is still in dire need of supplies.

“Water, batteries, flashlights, hygiene products, bedding, gas, propane, air mattresses, tarps, water, non-perishables, Gatorade,” Dakin lists. “Whatever you can offer.”

Dakin says they are also in need of help to get donated products to Myakka City.

“We are hoping to help those in much more need in North Port and Arcadia as well,” she says.

The 4,000-cow dairy lost more than 250 cows after Hurricane Ian battered them with 100-plus mph winds. Dakin says the number is likely to rise, as many have developed respiratory problems like pneumonia due to their prolonged exposure to the weather conditions during the storm.

“Feed and water are the No. 1 priorities to make sure our cows are well cared for,” Dakin says.

Despite steel being torn off buildings, the focus is on ensuring the cows that survived the storm are cared for in the best way possible.

“A lot of our power is going in and out,” Dakin says. “We already operate 24 hours a day. Our cows still must be milked, even after a hurricane. We’re doing our best.”

The Florida dairy has turned their café into a donation hub.

“We are collecting as well as passing supplies out,” Dakin says.

Dakin Dairy thanks the entire community for stepping up and lending a helping hand. They shared on their Facebook page that they are grateful for every person that has showed up to help.

For more information on how to donate, go to Dakin Dairy Farms Facebook page.

“Local cash donations can be made in our café,” Dakin adds.

Fall Forecast: Expect it to be Hotter and Drier Than Normal

Wed, 05 Oct 2022 18:44:12 GMT

The rustling of the corn stalks and the slow fade of green from the trees means Fall is officially on its way. But the National Weather Service Climate Prediction Center suggests Summer may stick around a little longer than normal this year.

Temperature Outlook

According to the August Seasonal Temperature and Precipitation Outlooks , Fall temperatures in September through November are estimated to be warmer than normal. As harvest season approaches, most of the country’s thermometers have a 40-50% chance of seeing higher than normal temps. However, areas in the Northeast and Southwest have a greater chance of seeing Summer temperatures linger. Colorado is almost guaranteed to see hotter than normal weather this Fall, with the likelihood of higher temperatures standing at 70-80%.

Precipitation Outlook

Drought has burdened the High Plains, South and West this year, and unfortunately, it appears that trend may continue into the Fall season. Most of the country will likely see less precipitation this coming season compared to previous years. Less rain is predicted to fall in a large pocket out West, while the same scenario is forecasted to hit areas of Illinois, Indiana and Kentucky.

Premium Alfalfa Hay Delivered by Amazon Prime

Mon, 22 Aug 2022 16:37:12 GMT

According to EarthWeb, Amazon reports that its Prime version had more than 200 million members in 22 countries in April 2021. From accessories to clothing to toiletries, households can get just about anything with one click through their Amazon app.

Dairy farmer, Steve Maddox knew his wife loved Amazon. Recently he also found a newfound love, as he began utilizing their shipping service. Earlier this month, an Amazon Prime truck hauled premium alfalfa dairy hay from his Logan, Utah hay ranch to his Riverdale, Calif. dairy farm.

Amazon worked with a dispatcher who then was able to fill the truck with Maddox’s milk cow alfalfa hay. Although, the load of hay didn’t qualify for free shipping.

“Amazon Prime back hauled 21 tons of hay from our hay ranch to our dairy,” Maddox shares. “The cost of shipping was $1,250.”

He says his hay trucking cost is down from its peak in December 2021, at around $2,000, but up considerably from 8 years ago.

“The cost of trucking from Utah to California back then was between $900 to $1,000,” he says.

Maddox Dairy milks 4,000 cows, with an equal number of heifers, and farms 1,600 acres of almonds and 3,00 acres of wine grapes, as well as cropland to supply feed for their cattle.

According to Maddox, Amazon Prime has many orders heading east but lacks loads coming west.

“They look to backhaul,” he shares.

Delivered in a straight truck, Maddox says they use a forklift and a ramp to underload the 1,400 lb. bales.

“We have 2,500 tons of hay that will get moved from Utah to California,” Maddox says. “That is 120 loads that are trucked from June to the first part of November. Sometimes we will store the hay in Utah and move it west when we need it.”

Amazon is known for its quick deliveries and when the big semi-truck showed up, Maddox didn’t question what his wife had ordered and realized there are many benefits to holding a Prime membership.

South Dakota Farmers Impacted by a Double Punch of Storms in May

Tue, 31 May 2022 17:55:09 GMT

In mid-May, eastern South Dakota and parts of Minnesota were hit by a derecho – a large-scale windstorm with 90-to 100-mph straight winds. The damage was felt by many farmers throughout the region, with one dairy farm, Global Dairy in Estelline, having to relocate 1,700 cows overnight.

It was no small feat relocating that number of cattle, but Victory Farms in Milbank came to the rescue, taking in all 1,700 cows and housing them on their nearby older dairy facility. The owner, Kevin Souza, stated, “It doesn’t matter how long it takes. Arjan [one of the owners] is one of those guys that is always willing to help others out. So, when he called needing help, it was a pretty easy decision to help him out because he’s that type of person to everyone else.”

The next round of storms hit the same area two weeks later. Over Memorial Day weekend, a series of severe storms that brought strong winds, heavy rain, hail and multiple tornado watches and warnings, impacted South Dakota. Unfortunately, this time, Victory Farms was in the path. And while they report no cows or people were injured, the farm suffered some loss that makes their long days grow even longer.

“Our shop and one calf barn suffered complete loss,” Souza reports.

His wife, Suzanne, posted on Facebook that cleanup started right after the storm passed.

“We were told that it was a tornado that possibly went through our area,” she wrote. “To have damage at farms 7 miles apart is hard to take, but everyone including the cattle are safe. Proud of Kevin, the kids and our employees for picking up and keeping things going with cleaning up and the day-to-day operations. [On] May 12 we moved cattle onto our place to help another farmer who got hit and lost their parlor. We are thankful for their employees that are helping us pick up the pieces. Dairy farmers have a special bond and no matter how near or far, a hand is always available to help out.”

Victory Farms milks 5,500 cows and is currently housing Global Dairy’s 1,700 cows that were displaced due to the derecho. Souza says they were fortunate to not have suffered more loss than they did.

“We feel lucky that we didn’t suffer more loss,” he says. “We moved the calves to another open barn and it’s business as usual here.”

Evan Grong, the transportation and milk procurement manager with Valley Queen, said the Memorial Day storms did not cause any injuries or have an impact on dairy production or processing for area producers or Valley Queen.

“There were some reports of damage to buildings and equipment on area farms. The impacts of yesterday’s storms are still being felt today with several area roads underwater from the heavy rainfall,” Grong says. “Area producers continue cleanup efforts from this second round of severe weather in the region. Valley Queen reminds all motorists to use extreme caution while driving and to watch for downed power lines and flooded roadways.”

Water Shortage Pushes Central Oregon Dairy Farmer to Sell 40% of His Herd

Tue, 10 May 2022 15:07:29 GMT

Water is a crucial ingredient when it comes to agriculture. This especially holds true in locations like the High Desert of Central Oregon. With 12 inches of precipitation annually, central Oregon isn’t a stranger to dry conditions. However, their scarce water issues have generated problems for river habitat along the Upper Deschutes River. All of this has diverted irrigation water that normally would be allocated for agriculture, to stay put in the river.

This ongoing issue has become a headache for many farmers, like dairy farmer Jos Poland of Madras. Less water doesn’t only mean fewer aces for his cows to graze on. It has forced Poland to make the hard decision to sell 40% of his herd earlier this year, reducing it from 240 head to 140 milking to cut costs. Poland says he was left with no other choice.

The water issue has been ongoing, but it was heightened when Oregon’s spotted frog population was put on the federal Endangered Species List in 2014. This caused the Center for Biological Diversity to ratchet up the pressure, slapping on a lawsuit that requires more water distribution for the Upper Deschutes. Doing just that means less water for farmers, like Poland.

When the river loses water, the wetland frog habitat along the Upper Deschutes dries up. When the river has too much water, frog eggs flush downstream and die.

“It’s not a great picture for the frog right now,” Bridget Moran, who manages the U.S. Fish and Wildlife Service Bend office, says. “The listing of the frog brought to the surface a need for the broader restoration of the river.”

Poland, who ships his organic milk to Darigold, says he cannot grow enough grass to feed his cows due to the water shortage.

“Feed prices have skyrocketed,” he says. “And, it’s becoming harder and harder to find hay.”

Emotional as it is, Poland is contemplating what’s next for him if the drought continues.

Early Beginnings

His journey began in Holland, where he was born and raised on his family’s dairy farm, owned by his father and uncles. At 20-year-old, Poland went to Canada as an exchange student and then became a partner on a dairy farm in Alberta. In 1993, Poland moved to America to operate a conventional dairy farm in the Wilmette Valley before he built his dairy in 2005 with his wife, Deanna, who was raised on a central Oregon dairy farm.

Deanna understands the heaviness of the challenges she and her husband face as dairy farmers. However, the family lifestyle that owning and operating a dairy farm provides pushes them to not give up. The Poland’s have three children: Johan, 16, and twins, Maikel and Maija, 15.

“It’s great for the family to come together and be a team, working together,” Deanna says.

When labor became a bigger issue, the Poland’s pulled the trigger to install robots in 2020. This investment is something Poland questions, as this was ahead of the drought. When the water scarcity intensified, thanks to the spotted frog issue, Poland has regrets.

“To tell you the truth, I never would have done this if I knew then what I know now,” he shares. “I would have probably said, ‘that’s enough, I’m going to do something else.’”

Water Nightmare

Being in a drought for a couple of years, Poland says their water allocations have drastically declined.

“We normally get about two feet per acre of water,” he says. “Last year we got one foot and then later during the irrigation season, somewhere at end of June, they cut us back more. This year we get allocated half of what we got last year.”

This reduction means that Poland can only irrigate about a quarter of his land that he has water rights for.

“It took a lot of time for me to get my organic pastures established,” he shares. “The best thing to control the weeds for organic farmers is to water the pastures.”

Poland reports that half of his pastures are totally dead.

“They’re done. I’ll have to start all over if we ever get water back,” he says.

Head south to Redmond-Bend area, and Poland says they are getting five to six feet per acre of water.

“It makes no sense. They’re wasting water. It’s all because it is tied up in old water laws,” he says.

Poland claims that more water was left in the river during the wintertime causing less water to be stored for future irrigation.

“We should have twice the amount of water right now,” he says.

Due to being a certified organic producer, Poland’s cows are required to spend so much time each day grazing out on pasture. Last year, they gave some leniency due to the drought, but this year he was forced to cull some cows. Poland is hoping he doesn’t have to further reduce his herd size but says that it will all depend on if his farm gets the timely summer rains that they desperately need.

“Last year we had 100°F at the end of June, which we never have had before,” he says. “I never had any thunderstorm showers to speak of last year.”

Moving Ahead

Poland’s plan is to reevaluate his situation later this fall before making any further life decisions.

“We’re going to watch what feed costs do, but I do think they’re going to be just outrageous,” he says.

Although they have no signed feed contracts, the Poland’s have a great relationship with their long-time feed supplier from eastern Oregon.

“We agree on the price and the quantity at the beginning of the season,” Poland says. “Even if prices go up, our buyer goes off of our agreed price.”

With only two dairies left in central Oregon, the idea of thinking about a life without cows tears at Poland’s heart.

“We built everything brand new here, starting from scratch,” he says. “It’s very hard to think about life without dairy cows, but at some point, you have to say enough is enough.”

Poland says truck driving might be the route he goes next, but for the time being, they’re trying to take the best care of their cattle.

“That is what we know how to do best,” he says.

Both growing up on family dairy farms, working hard has always been in the Poland’s veins. But now, they feel like they’re working harder than ever before and with mountains of roadblocks, the duo say it’s almost too hard to keep going on.

“It never bothered me before,” he says. “But I’m 56 now and I cannot predict what the future holds.”

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Community Support

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Temperature Outlook

Precipitation Outlook

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Early Beginnings

Water Nightmare

Moving Ahead