Prairie Grains Jan.-Feb. 98 - Prairie Shortcuts

Issue 11
Jan./Feb. 1998

Library
Home

E-Mail

Back

Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.

Small Grains Institute moved to Grand Forks

The eighth annual Small Grains Institute will be held at the South Forks Pavilion in Grand Forks, N.D., March 4 and 5, 1998. The SGI board of directors moved this year's show to Grand Forks, as the Red River Valley Shows property in Crookston is being sold.
Farm Credit Services offers financial management seminars

Farm Credit Services is working with AgriSolutions, which produces and services farm financial software sold through FCS, to sponsor financial management seminars this winter for farmers. Leo Sayler, FCS Director of Education and Marketing Services, said that FCS realized a number of years ago that producers often kept records only when they had to, for credit or tax purposes. They decided that if farmers were armed with the software and skills to make a long-term financial plan, they could create closer ties to their operation by keeping closer tabs on their numbers.
FCS offers three self-contained classes, each one an intense, three-day workshop. The first one runs from January 12 to 14, 1998 at the Ramada Inn in Grand Forks, ND, and focuses on analyzing your operation's 5-year trend. From that vantage point, says Sayler, you can see your best and worst production investments and work on ways to make your operation more efficient. Other sessions will take place throughout the winter in Crookston and Grand Forks, as well as in the southern Valley. The seminar carries a money-back guarantee-Sayler says that of the 3,000 producers who have participated in the workshops up to now, none have asked for the refund. Contact your local FCS office for more information.
Crop Prices for '98 Planning

Production planning and financial planning require that at least tentative decisions be made about what next year's crops might be worth, says George Flaskerud, NDSU extension crops economist. Supply and demand fundamentals and historical price relationships suggest N.D. planning prices of $3.80 for hard red spring wheat, $3.30 for winter wheat, $4.30 for durum, $2.25 for corn, $1.80 for feed barley, $2.30 for malting barley, $1.30 for oats, $5.75 for soybeans, $9.70 for oil sunflowers, $13.20 for nonoil sunflowers and $15.50 for edible beans, recognizing of course that these projections may differ markedly come spring time.
MAWG Board Elections

Gaylen Affield, Fergus Falls, has been elected to the MAWG board of directors, replacing Jerry Nordick, Rothsay.
Look for another vote on fast track

Fast-track authority lets the President negotiate a trade agreement and send it to Congress for an up or down vote without amendments. Congress failed to vote on fast track last year, but it will likely surface as an issue again in 1998. Specific Clinton Administration commitments to Congress on future wheat negotiations prompted the NAWG to support fast track.
"We've wanted new trade negotiating authority, but growers have also wanted assurances that their problems would not be ignored," according to Phil McLain, NAWG President and wheat farmer from Statesville, North Carolina. "The Congress has now been told that the government will not tolerate market disruption from imports of Canadian wheat, and that our trade laws will be used if necessary."
U.S. Trade Representative Charlene Barshefsky pledged to request an audit of the Canadian Wheat Board's (CWB) pricing practices, and to seek negotiations if violations were found. She also said that a negotiating priority would be to "impose constraints and disciplines as well as price transparency" on state trading agencies like the CWB.
NDGGA Recognizes Ag Leaders

Greg Daws, Michigan, ND, and Mike Warner, Hillsboro, ND, are the recipients of this year's Kernel Awards, given by the North Dakota Grain Growers Association. Daws is the developer of the tramline system for grain and air drills. Mike Warner is a leader in value-added ag commodity processing.
Census of Agriculture To Be Conducted in Early 1998

Farmers are asked to fill out the 1997 Census of Agriculture form they will receive in the mail early in 1998. Census answers, kept confidential, provide uniform, comprehensive data that help guide farm policy and business decisions. Completed forms should be mailed back by Feb. 2, 1998 in the postage paid envelopes provided.
Growers Invest $25 Million in USWP

United Spring Wheat Processors has announced a grower equity investment of about $25 million, allowing the startup spring wheat cooperative to build its first production plant, debt-free.
USWP will produce frozen dough and par-baked products.
The commitment of grower equity in the cooperative's business last month followed an 18-month strategic planning process that was funded and supported by thousands of spring wheat farmers from the Dakotas, Minnesota and Montana.
USWP President and CEO Gary Lee says USWP is moving ahead in five key areas:
1. A nationwide search for key members of the USWP management team is well underway, including vice presidents of operations and sales, and a chief financial officer.
2. The decision of which geographic region USWP will enter first will be accomplished by the end of January. Lee says USWP will isolate a plant site shortly after the geographic market is selected.
3. Strategic customer and distributor alliance discussions will continue and become more targeted after the geographic selection is made and the vice president of sales is on board.
4. Discussions are underway with several milling companies. Within the next few months, Lee says USWP will commit to a toll-milling relationship with one or two of them.

Phase II of the plant design project will now begin. Lee says this will include detailed plant and equipment designs and site evaluation work.

Determining fair land rent

Results of a land rent survey of six northwest MN counties last fall indicate little overall fluctuation in the 1990s, but a steady increase in the size of the parcel being farmed. Also, an increase in land farmed through a crop share arrangement, mostly a 1/4 - 3/4 arrangement. This has come about in part due to the past few years of disastrous crop yields. Crop sharing is being used as a way to reduce risk.
U of M Extension Educator Gene Krause says the following factors should be considered in determining fair land rent values:
CROP RETURNS - What crops can be grown in the area that offer economic opportunity?
LAND QUALITY - What soil types and ground cover exist on the property?
DRAINAGE - Are the fields adequately drained or do they hold the moisture?
FARM PROGRAM - Is the land in a government program and what restrictions are placed upon it.
PREVIOUS CROPS - What were the previous crops on the land and what herbicides were used as well as fertility management.
FACILITIES - Are their grain bins or quancets available to store grain or machinery?
PAYMENT DATE - Is the payment required in the spring, fall, or split?
TILLABLE ACRES - Is the rent for the entire parcel or is it just on the tillable acres or is it on the harvested acres?
PREVIOUS HISTORY - What are the historical yields the land has produced?

Copyright Prairie
Grains Magazine January 1998

Issue 11 Jan./Feb. 1998

Library Home E-Mail Back Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc., and the Minnesota Barley Growers Association.	Small Grains Institute moved to Grand Forks The eighth annual Small Grains Institute will be held at the South Forks Pavilion in Grand Forks, N.D., March 4 and 5, 1998. The SGI board of directors moved this year's show to Grand Forks, as the Red River Valley Shows property in Crookston is being sold. Farm Credit Services offers financial management seminars Farm Credit Services is working with AgriSolutions, which produces and services farm financial software sold through FCS, to sponsor financial management seminars this winter for farmers. Leo Sayler, FCS Director of Education and Marketing Services, said that FCS realized a number of years ago that producers often kept records only when they had to, for credit or tax purposes. They decided that if farmers were armed with the software and skills to make a long-term financial plan, they could create closer ties to their operation by keeping closer tabs on their numbers. FCS offers three self-contained classes, each one an intense, three-day workshop. The first one runs from January 12 to 14, 1998 at the Ramada Inn in Grand Forks, ND, and focuses on analyzing your operation's 5-year trend. From that vantage point, says Sayler, you can see your best and worst production investments and work on ways to make your operation more efficient. Other sessions will take place throughout the winter in Crookston and Grand Forks, as well as in the southern Valley. The seminar carries a money-back guarantee-Sayler says that of the 3,000 producers who have participated in the workshops up to now, none have asked for the refund. Contact your local FCS office for more information. Crop Prices for '98 Planning Production planning and financial planning require that at least tentative decisions be made about what next year's crops might be worth, says George Flaskerud, NDSU extension crops economist. Supply and demand fundamentals and historical price relationships suggest N.D. planning prices of $3.80 for hard red spring wheat, $3.30 for winter wheat, $4.30 for durum, $2.25 for corn, $1.80 for feed barley, $2.30 for malting barley, $1.30 for oats, $5.75 for soybeans, $9.70 for oil sunflowers, $13.20 for nonoil sunflowers and $15.50 for edible beans, recognizing of course that these projections may differ markedly come spring time. MAWG Board Elections Gaylen Affield, Fergus Falls, has been elected to the MAWG board of directors, replacing Jerry Nordick, Rothsay. Look for another vote on fast track Fast-track authority lets the President negotiate a trade agreement and send it to Congress for an up or down vote without amendments. Congress failed to vote on fast track last year, but it will likely surface as an issue again in 1998. Specific Clinton Administration commitments to Congress on future wheat negotiations prompted the NAWG to support fast track. "We've wanted new trade negotiating authority, but growers have also wanted assurances that their problems would not be ignored," according to Phil McLain, NAWG President and wheat farmer from Statesville, North Carolina. "The Congress has now been told that the government will not tolerate market disruption from imports of Canadian wheat, and that our trade laws will be used if necessary." U.S. Trade Representative Charlene Barshefsky pledged to request an audit of the Canadian Wheat Board's (CWB) pricing practices, and to seek negotiations if violations were found. She also said that a negotiating priority would be to "impose constraints and disciplines as well as price transparency" on state trading agencies like the CWB. NDGGA Recognizes Ag Leaders Greg Daws, Michigan, ND, and Mike Warner, Hillsboro, ND, are the recipients of this year's Kernel Awards, given by the North Dakota Grain Growers Association. Daws is the developer of the tramline system for grain and air drills. Mike Warner is a leader in value-added ag commodity processing. Census of Agriculture To Be Conducted in Early 1998 Farmers are asked to fill out the 1997 Census of Agriculture form they will receive in the mail early in 1998. Census answers, kept confidential, provide uniform, comprehensive data that help guide farm policy and business decisions. Completed forms should be mailed back by Feb. 2, 1998 in the postage paid envelopes provided. Growers Invest $25 Million in USWP United Spring Wheat Processors has announced a grower equity investment of about $25 million, allowing the startup spring wheat cooperative to build its first production plant, debt-free. USWP will produce frozen dough and par-baked products. The commitment of grower equity in the cooperative's business last month followed an 18-month strategic planning process that was funded and supported by thousands of spring wheat farmers from the Dakotas, Minnesota and Montana. USWP President and CEO Gary Lee says USWP is moving ahead in five key areas: 1. A nationwide search for key members of the USWP management team is well underway, including vice presidents of operations and sales, and a chief financial officer. 2. The decision of which geographic region USWP will enter first will be accomplished by the end of January. Lee says USWP will isolate a plant site shortly after the geographic market is selected. 3. Strategic customer and distributor alliance discussions will continue and become more targeted after the geographic selection is made and the vice president of sales is on board. 4. Discussions are underway with several milling companies. Within the next few months, Lee says USWP will commit to a toll-milling relationship with one or two of them. Phase II of the plant design project will now begin. Lee says this will include detailed plant and equipment designs and site evaluation work. Determining fair land rent Results of a land rent survey of six northwest MN counties last fall indicate little overall fluctuation in the 1990s, but a steady increase in the size of the parcel being farmed. Also, an increase in land farmed through a crop share arrangement, mostly a 1/4 - 3/4 arrangement. This has come about in part due to the past few years of disastrous crop yields. Crop sharing is being used as a way to reduce risk. U of M Extension Educator Gene Krause says the following factors should be considered in determining fair land rent values: CROP RETURNS - What crops can be grown in the area that offer economic opportunity? LAND QUALITY - What soil types and ground cover exist on the property? DRAINAGE - Are the fields adequately drained or do they hold the moisture? FARM PROGRAM - Is the land in a government program and what restrictions are placed upon it. PREVIOUS CROPS - What were the previous crops on the land and what herbicides were used as well as fertility management. FACILITIES - Are their grain bins or quancets available to store grain or machinery? PAYMENT DATE - Is the payment required in the spring, fall, or split? TILLABLE ACRES - Is the rent for the entire parcel or is it just on the tillable acres or is it on the harvested acres? PREVIOUS HISTORY - What are the historical yields the land has produced?
Copyright Prairie Grains Magazine January 1998