This week on AgweekTV, We’ll find out what the Russian invasion of means for the U.S. grain and oilseeds markets. The war drives fertilizer prices to record highs. A major carbon pipeline project makes a big announcement. We’ll look at a rare cattle family in the Red River Valley. And we’ll take you to the largest organic farming event in the country.
WELCOME TO AGWEEK TV I’M MICHELLE ROOK.
THE RUSSIAN INVASION OF UKRAINE SHUT DOWN EXPORT MARKETS IN THAT REGION THIS WEEK AND WE SAW A VOLATILE MARKET REACTION. THE COUNTRIES ACCOUNT FOR AROUND A QUARTER OF THE WORLD’S GRAIN EXPORTS .
IN THE CURRENT MARKETING YEAR UKRAINE RANKS 4TH IN THE WORLD EXPORT MARKET FOR CORN AND WHEAT, AND 3RD FOR BARLEY. RUSSIA RANKS 2ND IN WHEAT EXPORTS AND 4TH IN BARLEY. AND THE REGION DOMINATES SUN OIL EXPORTS WITH UKRAINE THE TOP SUPPLIER AND RUSSIA AT NUMBER TWO.
THE RUSSIA-UKRAINE CONFLICT HAS SHORT AND LONG TERM IMPLICATIONS FOR AG EXPORTS, WHICH HAS DRIVEN UP U.S. GRAIN MARKETS. RUSSIA SHUT DOWN ALL OF UKRAINE’S PORTS UNTIL THE WAR ENDS, AND WHILE RUSSIA IS STILL EXPORTING SOME GRAIN MOVEMENT HAS BEEN SLOW.
NDSU MARKETING SPECIALIST FRAYNE OLSON SAYS UKRAINE IS A MAJOR CORN EXPORTER, SO HE EXPECTS THE U.S. TO PICK UP SOME OF THAT BUSINESS. PLUS, BOTH UKRAINE AND RUSSIA ARE LEADING WHEAT EXPORTERS. SO SOME OF THOSE SALES WILL ALSO SHIFT.
Frayne Olson: So I do think we’ll see kind of a round robin or shifting. Some of the countries that were buying from Russia and Ukraine will now shift to buy for example some Argentine wheat or maybe some Australian wheat, which will then open the door for some additional export sales from the U.S.
THE OTHER QUESTION IS WHETHER UKRAINE CAN GET THE 2022 CROP PLANTED AS THE SEASON STARTS IN EARLY MAY AND WILL THEY EVEN HAVE THE INPUTS? THAT LEAVES CONCERNS ABOUT CROP TIMING.
Frayne: If the conflict is still going on in the middle of May will that impact seeding and the type of crop seeded? If it continues on into July, will we see some delays in harvest or will we see some problems with harvest and delivery?
HE SAYS, TYPICALLY, RUSSIA AND UKRAINE HAVE HEAVY EXPORT SALES AND DELIVERIES RIGHT AT HARVEST IN JULY. SO THAT COULD MEAN SOME MUCH HIGHER PRICES FOR U.S. WHEAT HARVESTED AT THE SAME TIME.
THE WAR BETWEEN RUSSIA AND UKRAINE IS ALSO HAVING A BIG IMPACT ON THE GLOBAL VEGETABLE OIL MARKET.
THE TWO COUNTRIES, COMBINED, ACCOUNT FOR NEARLY 60-PERCENT OF PRODUCTION AND 75-PERCENT OF THE WORLD’S EXPORTS OF SUNFLOWER OIL. THE U.S., IN COMPARISON, ONLY EXPORTS ABOUT 20-PERCENT OF ITS PRODUCTION.
JOHN SANDBAKKEN WITH THE NATIONAL SUNFLOWER ASSOCIATION SAYS UNLESS PRODUCT IS ON THE WATER, EXPORT DELIVERIES MAY NOT ARRIVE.
AND DELAYS IN SHIPPING WON’T BE RESOLVED QUICKLY.
John Sandbakken: Even if all the fighting stopped today, they still would be at least 30 days away from being able to ship anything at the outside. And so the longer the conflict goes on, I mean, obviously it’s going to just keep delaying things.
HE SAYS UKRAINIAN FARMERS MAY NOT GET THE NEW CROP PLANTED EITHER, WHICH IS DRIVING UP PRICES. BUT EVEN BEFORE THE INVASION, SUNFLOWER MARKETS WERE STRONG DUE TO A SMALL 2021 CROP. THEY’RE RUNNING ABOUT TEN DOLLARS ABOVE THE SAME TIME LAST YEAR, AND NEAR RECORD HIGHS FOR BOTH OLD AND NEW CROP. THAT, PLUS STRONG CROP INSURANCE GUARANTEES, MAY RESULT IN MORE FLOWER ACRES PLANTED THIS SPRING.
PRICES FOR INPUTS LIKE FUEL AND FERTILIZER WERE ALREADY AT NEAR TO RECORD LEVELS, BUT THE GEOPOLITICAL DISRUPTION IN THE BLACK SEA HAS SENT THOSE PRICES EVEN HIGHER.
JOSH LINVILLE IS DIRECTOR OF FERTILIZER FOR STONE X FINANCIAL. HE SAYS THE BIGGEST SPIKE WAS IN THE UREA MARKET, WHICH SHOT UP 250-DOLLARS PER TON WHEN THE INVASION BEGAN AND THOSE PRICES HAVE STAYED STRONG. RETAIL ANHYDROUS AMMONIA HIT AN ALL TIME HIGH OF $1,488 A TON. HE SAYS RUSSIA IS ONE OF THE TOP GLOBAL EXPORTERS OF MANY FERTILIZER PRODUCTS, AND THEIR ABILITY TO SHIP IS LIMITED, WITH THE PORTS SHUT AND FACING GLOBAL SANCTIONS.
Josh Linville: We look at urea, they account for about 14-percent of the global export value or numbers. UAN that’s their biggest one, they’re anywhere from 25 to 31 percent of global exports. Phosphate they are 10,11. Potash they’re a big producer they’re about 20-percent of the global operating capacity for potash.
LINVILLE IS FAIRLY CONFIDENT U.S. FARMERS WILL HAVE ADEQUATE FERTILIZER SUPPLIES THIS SPRING, BUT SAYS IT WILL COME AT A PRICE. AND THE LONGER THE COUNTRIES ARE AT WAR, THE TIGHTER WORLD SUPPLIES WILL GET AND THE HIGHER PRICES COULD GO.
FARMERS ARE LOOKING AT HISTORICALLY HIGH SPRING GUARANTEED PRICES FOR CROP INSURANCE. THOSE WERE SET IN FEBRUARY AND SOYBEANS ENDED AT A RECORD $14.33 PER BUSHEL, UP $2.46 FROM LAST YEAR. CORN WAS AT $4.90 UP A BUCK. SPRING WHEAT WAS AT A RECORD $9.18 UP $2.66, WITH DURUM AT $9.43. THE BASE PRICE FOR SUNFLOWERS WAS ALSO AT RECORD HIGHS.
NOW AT 75 TO 85-PERCENT COVERAGE FARMERS WILL HAVE A SOLID FINANCIAL BACKSTOP AMID A SEASON DOMINATED BY VOLATILITY AND UNCERTAINTY.
CONTINENTAL RESOURCES IS MAKING A MAJOR INVESTMENT IN WHAT’S BEING CALLED THE LARGEST CARBON CAPTURE PROJECT IN THE WORLD.
THIS WEEK, CONTINENTAL RESOURCES FOUNDER HAROLD HAMM ANNOUNCED A $250 MILLION INVESTMENT WITH SUMMIT CARBON SOLUTIONS. HAMM AND OTHERS INVOLVED IN THE PROJECT MADE THE ANNOUNCEMENT AT THE THARALDSON ETHANOL PLANT IN CASSELTON, NORTH DAKOTA. THARALDSON ETHANOL IS ONE OF 31 ETHANOL PRODUCERS TO SIGN ONTO THE $4.5 BILLION PIPELINE. IT WOULD MOVE CARBON FROM SEVERAL STATES TO WESTERN NORTH DAKOTA FOR STORAGE.
HAMM’S COMPANY HELPED DRIVE THE RESURGENCE IN NORTH DAKOTA’S OIL INDUSTRY. HE SAYS HIS COMPANY’S KNOWLEDGE OF NORTH DAKOTA GEOLOGY WILL HELP THE UNDERGROUND STORAGE PROJECT.
Harold Hamm: WE BELIEVE THAT THIS IS THE RIGHT THING TO DO FOR THE RIGHT REASONS, FOR THE ENVIRONMENT, FOR AG, FOR INDUSTRY, FOR THE COUNTRY. AND THAT’S WHY WE’RE HERE.
SUMMIT’S PROJECT IS BEING MET WITH SOME RESISTANCE FROM LANDOWNERS, BUT THE COMPANY WOULD LIKE TO START BUILDING THE PIPELINE IN 2023 AND HAVE IT OPERATING IN 2024.
COMING UP ON AGWEEK TV, AS OUR LIVESTOCK TOUR CONTINUES, WE’LL VISIT A RARE EASTERN NORTH DAKOTA CATTLE OPERATION.
THE AGWEEK LIVESTOCK TOUR IS SPONSORED BY 701x,TRANS OVA AND FARMERS MUTUAL OF NEBRASKA.
IT’S RARE TO FIND A PUREBRED LIVESTOCK ENTERPRISE IN EASTERN NORTH DAKOTA. MIKKEL PATES PAID A VISIT TO THE OLSON HEREFORD RANCH IN THIS WEEK’S STOP ON OUR LIVESTOCK TOUR. IT’S OUR AGWEEK COVER STORY.
Mikkel Pates: IN THE RICH SOIL OF THE RED RIVER VALLEY, MOST FARMERS DROPPED THEIR LIVESTOCK LONG AGO. BUT NOT THE OLSONS.
Carl Olson: WE’RE MAINLY RED ANGUS, ALMOST THREE-FOURTHS ANGUS AND ONE-FOURTH HEREFORD.
CARL OLSON IS THE FOURTH GENERATION IN HIS FAMILY, FARMING AND RAISING PUREBRED CATTLE IN EASTERN NORTH DAKOTA. HE AND HIS WIFE LINDSAY AND HIS PARENTS ED AND JEANNE HAVE A HERD OF ABOUT 200 BRED FEMALES. THE FAMILY FARMS ABOUT 29-HUNDRED ACRES, RAISING CORN, SOYBEANS, WHEAT AND OATS. BUT THEY’RE SOMEWHAT LIMITED ON GRAZING LAND.
Carl Olson: WE DO A LOT OF ROTATE GRAZING, WE DO A LOT OF CREATIVE THINGS LIKE PUTTING CATTLE OUT ON CORN STALKS AFTER WE COMBINE THE CORN. WE’RE SPREADING MANURE FOR FERTILIZER WHERE WE’RE RUNNING THE CATTLE. WE’RE ALWAYS KIND OF EXPERIMENTING AND DOING SOME VALUE-ADDED TYPE STUFF.
THE OLSONS HOLD THE DISTINCTION OF BEING THE LONGEST-STANDING HEREFORD SEEDSTOCK PRODUCERS IN THE STATE AND ALSO RAISE RED ANGUS. THE OLSONS RECENTLY HELD THEIR FEBRUARY “RED POWER” SALE ON THE FARM. THEY SAY THE HARDINESS, ADAPTABILITY OF THE CATTLE, AND HIGH QUALITY OF MEAT OF HEREFORDS ADDS VALUE TO BUYERS.
Carl Olson: WE HAD A BULL BRING 13-5 IN HERE. WE’VE HAD BULLS SELL FOR 26-THOUSAND, 21-THOUSAND. I MEAN, WE AVERAGED FIVE THOUSAND ON OUR BULLS.
THE AUCTION DREW IN-PERSON AND ONLINE BUYERS FROM AROUND THE COUNTRY. IT WAS HELD IN A NEW, BIGGER SHOP BUILDING THE OLSONS PUT UP IN THE PAST YEAR TO REPLACE A BUILDING THAT BURNED,.
Lindsay Olson: IN ANY OPERATION YOU ALWAYS NEED TO BE UPGRADING AND BEING PROGRESSIVE AND MAKING THINGS EASIER FOR YOUR OPERATION TO RUN SMOOTHLY.
Mikkel Pates: SO IN A WORLD WHERE FARM ECONOMICS RISES AND FALLS, THE OLSONS HOPE THEIR RED POWER POWERS THEM INTO THE FUTURE. FOR AGWEEK, THIS IS MIKKEL PATES AT ARGUSVILLE, NORTH DAKOTA.
YOU CAN READ MORE IN THE NEXT AGWEEK MAGAZINE, OR AT
.
U.S. POULTRY AND EGG EXPORTS CONTINUE TO STEADILY INCREASE, AS DEMAND FOR PROTEIN GROWS GLOBALLY AND DESPITE THE SPREAD OF BIRD FLU.
THE U.S. IS THE NUMBER ONE POULTRY PRODUCER IN THE WORLD. IT OFFERS CONSUMERS A CHEAPER PROTEIN, ALSO MAKING IT THE MOST CONSUMED PROTEIN IN THE WORLD.
GREG TYLER, CEO OF THE USA POULTRY AND EGG EXPORT COUNCIL, SAYS WORLDWIDE DEMAND FOR POULTRY IS GOING TO CONTINUE TO GROW.
CURRENTLY, OUTBREAKS OF AVIAN FLU IN COMMERCIAL FLOCKS IN KENTUCKY AND INDIANA ARE CAUSING SOME COUNTRIES TO STOP IMPORTING POULTRY FROM THOSE STATES. AND NOW IOWA HAS ALSO DETECTED BIRD FLU IN A BACKYARD FLOCK. HE SAYS LARGER EXPORT BANS WILL ONLY HAPPEN IF THE OUTBREAK SNOWBALLS.
Greg Tyler: If avian flu continues to spread from state to state to state, then we may see some countries say okay it’s not under control we may ban the whole U.S.
TYLER SAYS THEY HOPE THAT DOESN’T HAPPEN ESPECIALLY WITH THE REGIONALIZATION AGREEMENTS THE U.S. HAS WITH MAJOR IMPORTERS.
AHEAD ON AGWEEK TV, WE’LL TALK WITH A WELL-KNOWN NORTH DAKOTA AGRIBUSINESSMAN WHO HAS LOTS OF EXPERIENCE DOING BUSINESS IN RUSSIA AND UKRAINE.
IT’S NOW MARCH AND PLANTING SEASON IS RIGHT THE CORNER BUT MANY FARMERS ARE STILL CONCERNED ABOUT HOW DRY IT IS. IS THERE ANY CHANGE IN SIGHT?
HERE’S JOHN WITH OUR AGRI-WEATHER OUTLOOK.
A NATIVE UKRAINIAN NOW LIVING IN MINNESOTA IS NERVOUSLY WATCHING THE EVENTS UNFOLD IN HIS HOMELAND.
SERHII KADYROV MOVED TO RED LAKE FALLS, MINNESOTA IN 2017, TO WORK FOR A FARMER. HE MET AND MARRIED KATIE DOLAN, AND NOW THEY RUN A DOG KENNEL AND HORSE BUSINESS.
HE HELPED GET HIS MOTHER AND BROTHER TO TEMPORARY SAFETY IN POLAND, BUT HE STILL HAS MANY FRIENDS AND RELATIVES IN UKRAINE.
HE SAYS HE TRIES TO KEEP IN TOUCH WITH LOVED ONES WHEN HE CAN GET THROUGH, BUT HE APPRECIATES THE SUPPORT HE’S GETTING HERE.
Serhii Kadyrov: I’M SO HAPPY, AROUND HERE, MIDDLE OF NOWHERE, EVERYBODY THINK ABOUT UKRAINE. SOME PEOPLE KNOW ME TOO AND THEY ALWAYS CALL ME AND ASK. BECAUSE I’M VERY STRESSED ALL THE TIME, I’M JUST FREAKIN’ ALL DAY, STRESSED. I CANNOT FOCUS ON WORK. BUT PEOPLE IN THE UNITED STATES IS VERY HELPFUL.
KADYROV AND HIS WIFE ARE RAISING MONEY FOR HUMANITARIAN AID. HE’S HOSTING A SILENT AUCTION ON THEIR BUSINESSES FACEBOOK PAGE, OR YOU CAN DONATE TO THE ADDRESS ON YOUR SCREEN.
FEW PEOPLE FROM NORTH DAKOTA KNOW RUSSIA AND UKRAINE LIKE HOWARD DAHL.
THE CEO OF AMITY TECHNOLOGY HAS DONE BUSINESS IN THAT AREA FOR ABOUT 30 YEARS. MIKKEL PATES SAT DOWN WITH DAHL TO GET HIS THOUGHTS ON THIS TERRIBLE CONFLICT.
MIKKEL: I’M HERE WITH HOWARD DAHL, WHO IS THE CEO OF AMITY TECHNOLOGY. AND HOWARD, THE CONFLICT IN RUSSIA AND UKRAINE HITS HOME FOR YOU, DOESN’T IT?
Howard Dahl: VERY MUCH SO. I’VE MADE 93 TRIPS THERE OVER THIRTY YEARS. I HAVE DEAR FRIENDS IN BOTH COUNTRIES. WE HAVE EMPLOYEES, EIGHT EMPLOYEES IN RUSSIA, ONE IN UKRAINE.
YOU SINCE HAVE MADE A BIG PART OF YOUR COMPANY’S WORK MARKETING INTO RUSSIA AND UKRAINE, RIGHT?
Howard Dahl: IT’S BEEN A SIGNIFICANT PART OF MY WORLD. FOR INSTANCE, WITH OUR CONCORD AIR SEEDER,WE SOLD PROBABLY 500 AIR SEEDERS INTO THAT MARKET BEFORE JOHN DEERE SOLD THEIR VERY FIRST ONE, SO WE WERE PIONEERS.
THE TWO PLACES ACCOUNT FOR WHAT PART OF WHAT YOU DO NOWADAYS?
PROBABLY TEN PERCENT OF OUR BUSINESS.
WHAT DO YOU THINK THE IMPACT IS ON VARIOUS KINDS OF AGRICULTURAL TRADE NOWADAYS?
Howard Dahl: I THINK THE BIGGEST QUESTION THAT EVERYBODY’S PONDERING RIGHT NOW IS HOW THIS IS GOING TO PLAY OUT. BECAUSE IF UKRAINE DOES NOT GET ITS CROP IN, OR LET’S SAY ONLY GETS HALF ITS CROP IN, WITH THE ENDING FOOD STOCKS WHERE THEY ARE IT COULD BE, ESPECIALLY FOR THE POOREST OF THE POOR IN THE WORLD, FOOD PRICES COULD GO WAY UP.
DOES IT SQUARE WITH ANYTHING YOU’VE EVER TALKED TO WITH THE CHURCH LEADERS THAT YOU’VE KNOWN?
Howard Dahl: I THINK THE BEST WORD I’VE BEEN ABLE TO USE IS, THERE’S A CONDESCENSION TOWARD UKRAINE ON THE PART OF MANY RUSSIANS. THEY LOOK DOWN ON UKRAINE, LOOK DOWN ON UKRAINIANS.
MIKKEL: WELL THANK YOU VERY MUCH HOWARD. I KNOW HOW MUCH YOUR CARE ABOUT CARE ABOUT PART OF THE WORLD.
STILL AHEAD ON AGWEEK TV, WE’LL TAKE YOU TO THE NATION’S LARGEST ORGANIC FARMING CONFERENCE.
ORGANIC AND SUSTAINABLE PRODUCERS GATHERED IN LA CROSSE, WISCONSIN RECENTLY FOR THE 33RD ANNUAL MOSES ORGANIC FARMING CONFERENCE.
THE THREE-DAY EVENT IS THE LARGEST ORGANIC FARMING CONFERENCE IN THE COUNTRY.
Lori Stern: THE THEME THIS YEAR IS “CULTIVATING COMMUNITY”
MOSES STANDS FOR ‘MIDWEST ORGANIC AND SUSTAINABLE EDUCATION SERVICE’, AND THEY WORK TO EDUCATE GROWERS AND THE PUBLIC ON THE BENEFITS OF HOW THEY PRACTICE AG. THE MOSES CONFERENCE BRINGS TOGETHER PRODUCERS FROM AROUND THE UPPER MIDWEST. LORI STERN IS THE GROUP’S EXECUTIVE DIRECTOR.
Lori Stern: A HUGE PIECE OF WHAT’S IMPORTANT TO THIS CONFERENCE IS THE ABILITY TO CONNECT WITH OTHER FARMERS, OTHER PEOPLE ACROSS THE FOOD SYSTEM, BECAUSE IT IS SUCH A LARGE CONFERENCE AND BECAUSE IT’S SUCH A DIVERSE PRODUCTION METHODS. SO YOU HAVE FARMERS THAT ARE DOING A LOT OF DIFFERENT KINDS OF FARMING, AND SO THERE’S EXPERTISE FOR ALL OF THOSE THINGS.
THOSE AT THE CONFERENCE RANGED FROM LONGTIME CERTIFIED ORGANIC, TO PRODUCERS JUST THINKING ABOUT MAKING THE SWITCH. THE EVENT SHARES THE LATEST INFORMATION, WHILE ALLOWING FARMERS TO CONNECT.
Reginaldo Haslett-Marroquin: IT’S A LARGE NEIGHBORHOOD GATHERING.
MOSES BOARD MEMBER REGINALDO HASLETT-MAROQUIN SAYS EVERYONE IS WELCOME, TO COME AND LEARN ABOUT SUSTAINABLE AG PRACTICES, AND SHARE THEIR EXPERIENCES AND IDEAS. THEY’RE WORKING TO BUILD A COMMUNITY OF RESILIENT ORGANIC AND SUSTAINABLE FARMS.
Reginaldo Haslett-Marroquin: IF YOU ARE THINKING OF A DIFFERENT WAY OF DOING AGRICULTURE, YES, THIS IS THE PREMIER, PROBABLY THE ONLY ONE IN THE COUNTRY AT THIS SCALE THAT BRINGS THIS KIND OF ECOSYSTEM TOGETHER.
READ MORE ON NOAH’S FISH’S STORY AT
OR IN AGWEEK MAGAZINE.
AND DON’T FORGET TO JOIN AGWEEK FOR OUR ‘OWN’ FARM SHOW. MARCH 8TH AND 9TH, IN ROCHESTER, MINNESOTA. IT’S THE AGWEEK FARM SHOW, BACK IN PERSON THIS YEAR.
THERE’S A TRADE SHOW AND WE’LL HAVE PANEL DISCUSSIONS ON PIPELINES, ANIMAL AG POLICIES AND FOOD INSECURITY.
WE’LL ALSO BE TAPING OUR SHOW THERE. BE SURE TO STOP BY OUR BOOTH AND SAY ‘HI’.
STORIES YOU’LL ONLY SEE ON
AND AGWEEK MAGAZINE THIS WEEK.
THE U.S. ATTORNEY’S OFFICE HAS INDICTED A WASHBURN, NORTH DAKOTA, AREA FARMER FOR FEDERAL CROP INSURANCE FRAUD.
AND MINNESOTA RELEASED ITS ANNUAL REPORT OF PRICE TRENDS FOR FARMLAND PRICES AND RENTS FOR 2021.
THANKS FOR WATCHING THIS WEEK’S EDITION OF AG WEEK TV.
REMEMBER, FOR ALL YOUR AG NEWS, GO TO AG
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