Member Profile: Jake Noll, Richland IFC

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Jake Noll didn’t grow up on a farm but learned to love agriculture by being involved on his grandparents’ operation during the summers. Working alongside his uncle, Noll’s appreciation for agriculture grew throughout his childhood.

However, fate led Noll to stay in the construction business after building houses for several years. Eventually, he and his brother created their own construction company in the Twin Cities. After staying in the construction business until 2009, Noll felt the need to return to the agriculture industry and purchased a seed processing plant with two uncles and a cousin.

Two years later, Noll got more involved in specialty soybeans and exports through the processing plant. Rick Brandenburger, the president of Richland IFC, was there as a mentor for Noll and helped make the processing plant what it is today. When Richland had an open position for a procurement manager, Noll jumped at the opportunity at the advice from Brandenburger. Now, Noll works for the company as a general manager.

“I have a little bit of involvement everywhere,” Noll said. “I enjoy that part, because I get to see a little bit of everything and help bridge gaps.”

In his position, Noll’s main involvement is in procurement, but he also helps out with marketing, logistics and plant operations, and every once in a while, he helps with accounting.

Before Noll started at Richland, he got involved in the Specialty Soya and Grains Alliance (SSGA) as a member during its early stages. Now that he is at Richland, the benefits of membership show up in many ways.

“SSGA is supportive of the majority of our business because of what it does,” he said. “It’s very difficult for one company to educate the masses in other countries, but SSGA has that reach and has the staff to educate. It’s a benefit.”

Noll recognizes that the work that SSGA does has directly benefited him in his current position. One example of this is the High Quality Specialty Grains program, which allows Richland to stay competitive in the marketplace.

However, the programs that come out of SSGA are not the only benefit to becoming a member. Noll has seen major returns just from being in the same room as others who are knowledgeable about the specialty soy industry.

“The benefit of working with those groups on projects is that it brings out different viewpoints,” said Noll. “We can get together and come up with solutions to those problems that we both have.”

A year prior to getting onto the board, Noll joined the SSGA’s food grade soya action team after Executive Director Eric Wenberg encouraged him to become more involved. On the committee, Noll was able to engage in the work that was being done to educate others about Identity Preserved soybeans.

As committee chair, Noll enjoys being able to provide insight and make recommendations to the board. Because of his work on the committee, Noll was encouraged to run for a board position and was elected last year.

“I wanted more involvement, and I want to keep learning more,” Noll said. “It was the next step for me to help shape the organization.”

Noll has seen the benefit of becoming a member of SSGA and encourages others in the specialty soybean field to get involved.

“You gain a lot of insight and access to programs,” he said. “I would think there’s everything to gain by becoming a member.”

IP Crop Network, August Report

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This monthly feature from SSGA’s Agronomy Action Team highlights growing conditions for Identity Preserved crops from different regions around the country. Thanks to the states/regions that contributed this month. If you would like to contribute, please get in touch with David Kee or Shane Frederick. You should also follow David Kee on Twitter for some of the latest, most-interesting information on agronomy and research that affect IP and other farmers.

Illinois

Illinois’ crop condition continues to slowly improve as we head into August, a very critical month for determining soybean yield. The “old timers” always say: “Rain in August is what makes a bean crop.” As we head into the second week, most of the state has had adequate rainfall over the past 30 days, with this week calling for three strong chances of rain and lower than average temps. By the time this moisture dries up we will be halfway through August with a crop that continues to improve.

The double-crop beans planted after wheat have already closed the stubble and are growing exceptionally well. With continued rains, I could foresee 50-60bu double-crop beans. Having cut 100bu wheat across many acres, that makes for a pretty profitable acre.

The story is: We could be sitting on a very good soybean crop in Illinois. In my 30 years working in agriculture, I have seen farmers to be pretty pessimistic as a whole … so when they are saying this could be a good crop, hang on!

– Scott A. Eversgerd, Field Agronomist – Southern Illinois, Pioneer Hi-Bred Int’l

 

Michigan

The condition of most Michigan crops has improved over the past month. Rainfall and warm temperatures have allowed significant plant growth and growth stage advancement. The most recent USDA Crop Weather Report shows topsoil moisture to be in surplus on 28% and adequate on 59% of fields. Crop condition ratings continue to show some residual effect from early season stress where 42% are rated good to excellent, 46% fair and 12% poor to very poor. These ratings are consistently improving each month as rainfall has alleviated early season emergence and growth issues.

Much of Michigan has received some rainfall in early August, and that is providing optimism to growers as they consider the yield potential of this crop. Weed escapes are showing in some fields with weeds poking through the crop canopy. Pre-emerge herbicides provided variable control due to dry soil conditions, while post-emerge herbicides also experienced challenges with control of drought-stressed weeds, then more weeds emerged with rainfall after post-herbicide applications.

Foliar disease and white mold symptoms on soybeans are minimal at this point. Concern remains for both as conditions are favorable in some fields.

Growers keep a watchful eye on crop pests but hold hope for beneficial August weather to pull this crop through an interesting year.

– Mark Seamon, Research Director, Michigan Soybean Committee

 

Minnesota

Minnesota is dry. According to the drought monitor, 100% of the state is rated abnormally dry to severe drought stage. However, farmers are still cautiously optimistic as the state’s soils, as a group, have decent water-holding capacity. USDA-NASS crop progress reports topsoil moisture supplies were rated 68% very short-percent short and 32% percent adequate to surplus. Subsoil moisture was rated 66% very short to short and 34% adequate to surplus. There was widespread rain this weekend, but it will be too late for some crops.

Crop growth is progressing, but slightly ahead of average. Soybeans blooming or beyond reached 93%, setting pods reached 71%. Corn silk was at 96% and dough stage reached 56%. Spring wheat harvest has started and reached 91% coloring. It appears, due to the delayed planting date, the harvest window will be very compacted.

Reports from several wind shield surveys indicate weed control programs were largely successful. However, canopy closure is delayed, and most farmers have used a second pass program to insure weed damage was limited, especially for waterhemp. Due to the dry and hot June through July, iron deficiency chlorosis (IDC) flared up in many western Minnesota soybean fields. Other diseases/syndromes were evident but not widespread.

Actual corn and soybean yield in 2023 will be greatly dependent on rainfall and soil moisture loss as seed/kernels fill over the next six weeks. Rain from the weekend storms was very helpful, but more will be needed before the crop is in. Due to the late planting and variable soil moisture status, yield estimates will be highly variable. We will know more about 2023 yield when the combines roll.

– David Kee, Director of Research, Minnesota Soybean Research and Promotion Council

 

Missouri

Rain finally has picked back up over the past couple weeks across much of Missouri. Unfortunately for our most impacted areas, this came too little too late. Driving across the northwestern to north-central region last week, many soybeans were shorter than knee-high and corn was being chopped for livestock feed. There are many other pockets throughout the state in a similar situation. In other areas these rains will push the crop through the finish line, especially for soybean.

The rains have flared up a complex of diseases in both corn and soybeans. A talk at a University of Missouri field day last week was focused on why there are so many yellow soybean fields throughout the state. Phytophthora was the main suspect with a complex of other diseases contributing. A local veterinarian indicated that dry years like this followed by rain often flare up many soil-borne diseases in cattle as well, an interesting parallel. Tar spot is always top of mind these days, and while we did see it earlier in Missouri than ever before, it still seems to be sequestered to the northwest part of the state, although, we suspect more is out there undetected.

The combines will answer the question in about a month on what is out there for a crop. Regardless of what the monitor says, many farmers will be glad to move past the 2023 growing season. It was a tough one in Missouri.

Based upon USDA data, the Missouri corn crop is 97% silking with 70% of the crop at dough. About 5% of the corn crop is at dent with 27% of the overall state crop being rated as “good.” The soybean crop is progressing with 86% of the crop at bloom and 61% of the crop setting pods. Only 27% of the state’s soybean crop is rated in “good” condition. One crop that has thrived during these dry conditions across the state has been cotton, which almost has completed squaring (98%) with 78% of the crop setting bolls. With no open bolls seen across the state, we find the crop from Southeast Missouri representing as 66% “good” and 27% as “fair.” The Missouri rice crop is progressing with 70% of the crop headed. Overall, the rice crop is rated as 65% “good.”

– Eric Oseland, Director of Agronomy and Research, Missouri Soybeans; and Bryan Stobaugh, Director of Licensing & Commercialization, Missouri Soybeans

 

Wisconsin

For the week ending on August 6, Wisconsin farmers had approximately six suitable days for fieldwork, as reported by the USDA-NASS Report. Most of the state experienced a dry week, which accelerated the harvesting of hay and small grain crops. Parts of the northeast and east-central regions received some rain, partially alleviating the drought impacts.

Corn silking had progressed to 83% completion, which is 9% ahead of the average for the previous year and only 3% ahead of the averages for 2018 and 2022. About 20% of the corn had entered the dough stage. The corn’s condition received a rating of 53% in the good to excellent range, marking a 2% decrease from the prior week and a 5% decrease from the previous year.”

Soybean blooming has reached 86%, equal to the progress of the previous year and 1% ahead of the five-year average. Forty-two percent of the soybeans were putting on pods. The condition of the soybeans was rated at 52% good to excellent, the same as the previous week and a decrease of 7% from the previous year.

In Wisconsin, most of the corn and soybean crops maintain a favorable condition. However, moving forward, adequate rainfall is necessary to facilitate their maturation and achieve satisfactory yields.

— Shawn Conley, State Extension Soybean and Small Grain Specialist, University of Wisconsin-Madison

 

Note: To see state Crop Progress reports from USDA’s National Agricultural Statistics Service (NASS): click here.

IP Crop Network, July Report

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This monthly feature from SSGA’s Agronomy Action Team highlights growing conditions for Identity Preserved crops from different regions around the country. Thanks to the states/regions that contributed this month. If you would like to contribute, please get in touch with David Kee or Shane Frederick. You should also follow David Kee on Twitter for some of the latest, most-interesting information on agronomy and research that affect IP and other farmers.

 

Illinois

The USDA puts the crop at 36% good to excellent, a 6% improvement over the last report, but still 25% behind the five-year average.

Most of Illinois has seen significant relief from the dry conditions beginning the last few days of June. That rain did come with some substantial winds and storms and has done significant crop damage in several areas throughout the state. Soybeans obviously fared much better than corn, but some localized hail events were hard on some soybean fields. We will need continued rains over the next 6-8 weeks to finish the soybean crop, but there is still a chance for a very good crop.

Most of the earliest planted fields did hit the reproductive stages by June 21, which is the goal to capture maximum sunlight/yield potential. In a few areas it has already started, but fungicide applications will get going pretty heavily by the middle of next week and follow the maturity for the next month. We will plant soybeans for four months somewhere in the state. The double-crop beans after wheat finished up last week in the south-central part of the state.

Late July and August rains are critical for the success of the Illinos soybean crop. The forecast for the next 10 days holds significant chances of rain across the state, so it looks like we will make it through most of July. … August will be the wildcard.

– Scott A. Eversgerd, Field Agronomist – Southern Illinois, Pioneer Hi-Bred Int’l

 

Michigan

The soybean crop in Michigan has gotten some relief from the very dry conditions in June in sporadic rainfall in early July. Nearly all of the rainfall events have been scattered with some areas receiving adequate amounts, while others are left needing more. Whatever the amount, farmers are thankful for the improvement in their crops. The most recent USDA crop progress report indicated that 62% of the state has adequate to surplus moisture in the topsoil. This has resulted in 31% of the soybean crop rated as good to excellent.

The most-advanced soybean crop growth stage is R2 with many fields just beginning to flower at R1. Some fields with limited soil moisture at planting have plants that are at R1 while other skips in the crop stand are filling in with unifoliate plants that have emerged with the recent rainfall. Variable maturity at harvest is likely in many fields.

Many growers are relieved that their crop stress has been relieved with rainfall but are still concerned as soil moisture is temporary with the increased crop size and water needs. “Cautiously optimistic” may describe much grower sentiment at this time.

– Mark Seamon, Research Director, Michigan Soybean Committee

 

Minnesota

Minnesota is dry! According to the July 6 drought monitor report, 98% of the state is in abnormally dry (D0) to severe (D2) drought status. In the July 3 Minnesota crop progress report, topsoil moisture supplies were rated 46% short to very short, 51% adequate and 3% surplus. Subsoil moisture supplies were rated 50% very short to short, 46% adequate, and 4% surplus.

Most of the annual crops are now in the reproductive growth stages, the period of maximum evapotranspiration and sensitivity to drought damage (seed set and seed fill). Small grain crop yields have already been impacted in northwest Minnesota. Much of June saw drought, excessive heat (>95oF), and smoke from Canadian wildfires that impacted small grain canopy height and will impact seed set and seed fill.

As soybean and corn are currently in early reproductive stages, timely rains could still provide moisture needed for decent yields. Consequently, yield for these crops is predicted to be highly variable due to summer precipitation patterns (scattered thundershowers across the landscape).

Disease and insect pressure have been manageable to date. Weed control programs have been largely effective to date. Residual herbicide activity was impacted by the drought, and control for most of the pre-emergent programs have lapsed. The lack of canopy closure over much of the soybeans is worrisome; crop yield will be dependent on the success of post-emergent weed control program.

The current recommendation is to scout, scout then scout some more. These, and other, concerns will make July and August two very long months.

– David Kee, Director of Research, Minnesota Soybean Research and Promotion Council

 

Missouri

It has been dry around Missouri. We are averaging about six workdays per week as given to us by the USDA’s survey. In recent days we have seen some rain and are looking into the forecast seeing that we have good chances this week with higher humidity and temperatures coming in the next 3-5 days.

Missouri’s corn crop is 52% silking with about 3% at dough, and 23% of the crop is rated as good. The soybean crop across the state has 37% blooming with 6% setting pods, and about 23% is rated as good. The state’s cotton crop is moving through the dry season, as expected, very well, and about 76% of the crop is squaring with 6% of the crop setting bolls. The cotton crop in southeast Missouri is thriving with 67% of the crop rated as good. The rice crop in southeast Missouri is also progressing, and it is showing about 22% of the crop as headed with 64% of the crop rated as good. Our winter wheat crop is almost harvested for the season, and we are seeing our pasture and range land taking a big hit with the minimal amounts of rain we have had. Only 4% of the state’s range and pastureland are rated as good.

We are needing rain across the entire state, and we have high hopes for the predicted rain to come to fruition this week.

– Eric Oseland, Director of Agronomy and Research, Missouri Soybeans

 

North Dakota

North Dakota experienced hot and dry growing conditions in early June with scattered and patchy rains. Last week’s average daily air temperatures trended normal or below normal according to records from NDAWN stations. The northeast region remains dry with little, or no rain received last week, which negatively impacted crop development.

Soybeans and other broad-leaf crops such as field peas and canola started to flower. IDC symptoms continue to show up in soybeans. Soybean aphids were observed a few weeks ago. Grasshopper populations are slowly increasing, and the nymphs are becoming big. Scouting continues to be important to monitor and manage various insects and disease pests.

It has also been hot and dry in northwest North Dakota. Scattered and patchy rains were not enough to alleviate the drought stress that crops experienced in the past several weeks. Crop growth stages are in a wide range, from flowering to heading.

South-central North Dakota received about 0.1-1.5-inches of rain last week, but more rain is needed during the coming weeks.

Overall, most of North Dakota is experiencing dry conditions. Soil moisture at 4- and 8-inch depths show deficits mainly in the northwestern part of the states and north of I-94, with optimum to excess moisture mainly south of I-94 and several locations in eastern North Dakota. Widespread and timely rains are needed to overcome dry conditions during the pod-filling period of various crops.

— Miki Miheguli, Research Programs Coordinator, North Dakota Soybean Council

 

Wisconsin

According to the latest USDA-NASS report, Wisconsin farmers experienced six favorable days for fieldwork during the week ending on July 9. The growth of crops was aided by sporadic rain, particularly in the western regions of the state, resulting in a 1% increase in the condition of soybeans and a 2% increase in the condition of corn compared to the previous week.

Currently, 42% of soybeans and 45% of corn are reported to be in good to excellent condition. However, persistent dry conditions continue to pose challenges for crop growth across most of the state. The corn crop has begun to silk, with 2% completion, only 2% behind the average recorded between 2018 and 2022. In contrast, soybean blooming has reached 22%, trailing behind the five-year average by 10%, with 1% of fields starting to set pods.

Looking ahead, the forthcoming days will prove critical for crop yields in Wisconsin, as below-average rainfall remains a concern for optimal crop development and production.

— Shawn Conley, State Extension Soybean and Small Grain Specialist, University of Wisconsin-Madison

 

Note: To see state Crop Progress reports from USDA’s National Agricultural Statistics Service (NASS): click here.

FIRST in its class: SSGA uses third-party field trials for assurance

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Everyone loves a good mystery.

When farmers plant – and end users buy – soybeans, they don’t want a mystery. They want to know exactly what they’re going to get.

That’s where Farmers’ Independent Research of Seed Technologies (FIRST) comes in.

As a third-party company, FIRST provides unbiased comparisons of seed genetics, improving yield and profitability for corn and soybean growers. FIRST tests seed products in 15 states and uses field managers and their independent businesses to identify, plant and harvest over 500 tests across over 300 locations.

“One of our strongest selling points is that we are strictly independent and unbiased; we’re not associated with any seed companies or private entities,” said Mark Querna, southern Minnesota FIRST manager. “We also set ourselves apart by our data turnaround. Within 48 hours of harvesting a site, the information will be on our website and available to anyone around the world.”

FIRST is a vital piece of solving mysteries for Specialty Soya and Grains Alliance’s (SSGA) member companies by supplying SSGA with the necessary tools to carry out their mission.

SSGA is focused on the production, processing and shipping of U.S. Identity Preserved field crops. The organization works to facilitate the supply and sale of specialty crops needed to fulfill the market on behalf of its members. Without accurate and pertinent data, this facilitation becomes difficult.

“One of the things that SSGA feels they’re missing right now is that data set of field trials of specialty soybean varieties,” said Scott Sinner, sales and supply at SB&B Foods. “If we can provide our member companies the opportunity to submit varieties to put in these trials to gain that data set, we hope that it will translate into additional acres and additional supply for all of our member companies.”

Historically, the trial data available regarding specialty soybeans has been limited. Keith Schrader, who grows corn and soybeans near Nerstrand, Minn., was a strong proponent of expanding FIRST trials to include specialty soybeans.

“Keith is the one who kept pressuring me to include food grade beans in the trials,” said Querna. “I also had a strong interest in providing more of this data because I was an organic farmer from 2004 to 2019.”

The database that FIRST provides benefits everyone on the food chain – from farmers all the way to end users. Schrader participates in FIRST trials to ensure that the varieties he grows on his farm have the traits he’s seeking.

“We wanted to be able to use the results from the FIRST trials to look at cross sections and see what worked well,” said Schrader, who is a past SSGA director. “On the customer side, it’s important to show what the yield is, along with protein, oil, sugars and amino acids, which proves to the customer what kind of product they’re getting, especially on new varieties that are being used in the FIRST trials.”

Out of all the trial work Schrader could participate in, FIRST was an easy choice.

“Information is key to our industry. Other than state commodity groups, FIRST is the only organization that I’m aware of that does independent trial work,” Schrader said. “Their protocols don’t vary from state to state or county to county – everything follows the same protocol – so it’s really easy to follow on a nationwide basis.”

Along with growers, FIRST proves to be invaluable to processors.

“As a processor, we go to the end user first and find the genetics that work for their food product. Then, we bring it back and start looking at agronomic traits and making sure those traits fulfill the needs of the farmer. We can’t do that without the partnership that we have with FIRST,” said Sinner, who also sits on SSGA’s agronomy action team. “The third party, unbiased testing on all of these genetics allows us to show the farmers that these genetics absolutely perform and they’re going to work on their farms.”

As the specialty soybean trial data portfolio expands, FIRST will continue to rely on growers to drive the research.

“FIRST is nothing without our farmer hosts,” said Ed Dahle, central Minnesota FIRST manager.

True to their mission, FIRST’s comparisons of innovative seed genetics provide growers, processors and end users with the information they seek, so that choosing a variety doesn’t turn into solving a mystery.

“It’s making sure that we have all of the tools in the toolbox to be able to provide the farmer what they need as well as what the customer needs,” Sinner said.

SSGA goes to Kathmandu

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SSGA participated virtually in a U.S. Soybean Export Council (USSEC)-organized “Soy Protein and Health” seminar in Kathmandu, Nepal, on April 13. More than 70 representatives from Nepal’s soy food and feed industries, as well as Nepali government officials, attended the well-received seminar.

The Soy Protein and Health Seminar was held in Kathmandu on April 13. Photo courtesy of U.S. Soybean Export Council.

The seminar featured a video presentation from SSGA Executive Director Eric Wenberg, who underscored the economic, quality and sustainability advantages of U.S. Identity Preserved (IP) soybeans. The presentation included critical information from SSGA’s research demonstrating that a 40 million liter/year soymilk plant could import 700 tons less soya by shifting from 36% protein non-IP beans to 44% protein IP soy, resulting in major savings in shipping costs and strain on processing equipment.

SSGA South Asia Technical Adviser Philip Shull joined the seminar to answer questions. Several soy food processors expressed interest in obtaining assistance from SSGA on exporting processed soy foods made from U.S. IP soy to India and other regional markets. Unlike India, where U.S. whole soybeans are still banned, Nepal is an active importer of U.S. soybeans. SSGA plans team up with USSEC to participate in person in follow-up promotional events in Nepal and India later this year.

IP Crop Network, April Report

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This monthly feature from SSGA’s Agronomy Action Team highlights growing conditions for Identity Preserved crops from different regions around the country. Thanks to the states/regions that contributed this month. If you would like to contribute, please get in touch with David Kee or Shane Frederick. You can also follow David Kee on Twitter for some of the latest, most-interesting information on agronomy and research that affect IP and other farmers.

Illinois

It’s been a pretty slow start to spring across most of Illinois. We have had a couple of one- or two-day windows of field activity with some anhydrous being applied and a few guys setting planters in the field. This time one year ago we had quite a bit in the ground, and with the 10-day forecast calling for significant rain, it looks like it will be after Easter before things really get moving.

The wheat crop, working south to north, has started growing and overall looks pretty good. There are some thinner stands on late seedings, but with most of the spring fertilizer applications made and even most herbicide applications made, the crop is off to a good spring start. Likely, it will not be the overall great crop we had in 2021, but it can still be a very good crop.

Corn acres are still holding for now, but if we get delayed through April, there will likely be a switch to beans, especially on the marginal acres.

Chemical supplies remain tight with glyphosate starting to loosen up some, but most other products remain scarce and expensive.

Michigan

The 2022 growing season has started with some green up of the winter wheat crop. Cool temperatures, along with consistent rainfall, has not allowed for field work in most places. At this date, this is not a significant issue for Michigan soybeans, but the sugar beet and wheat growers would like to be getting a stronger start to field operations.

The USDA planting intentions report has indicated that Michigan growers plan to plant about 9% more soybeans in 2022 than in 2021. Expected corn acres are about the same as the previous year. So additional soybean acres will come from winter wheat that was not able to be planted last fall and some minor crops.

Contracts for specialty soybeans, including non-GMO and food grade soybeans, are reduced compared to a year ago. Some reasons that I have heard for this change are planning for weed control challenges such as herbicide resistant weeds and potential profit of commodity soybeans. It is likely that attractive contracts for dry edible beans have also taken some acres away from specialty soybeans.

Optimism for the 2022 season remains high as commodity markets continue to offer profit opportunities.

Minnesota

Minnesota conditions are variable; 52% of the state is rated abnormally dry (D0) to moderate drought (D1). Drought appears more severe in eastern Minnesota compared to the west side of the state. The dry conditions are allowing some growers time to finish manure applications and complete tillage operations. In the wetter areas of western Minnesota, tillage and other field preparation activities are limited.

Winter’s grip is slowly fading; Lakes and rivers are flowing, tree and shrub buds are starting to swell. Soil temperatures (4-inch depth) are increasing, slowly, with highs ranging in the mid-30s to the mid-40s at Lamberton and Waseca. In the next week, rain and snow is in the forecast for much of the state. Farmers are still cautiously optimistic for an early planting season; however, few have started planting.

Missouri

We have been experiencing roller coaster weather with several days of wet conditions and few good days, with not much field work being done at this time. Work within the winter wheat crop is taking place, but it is dependent upon the wet conditions with fertilizer being the major focus right now and some weed control for winter annuals. Wheat progress and condition varies greatly around the state with only 1% of the wheat is headed, per USDA’s April 4 update. On the same USDA report, 50% of the Missouri winter wheat acres falling in the “good” category.

Missouri farmers planted a significant acreage in cover crops, approximately 1.1 million acres, the vast majority of that is cereal rye and planned for soybean planting. Work continues to promote cover crop usage after soybean to protect the residue ahead of corn planting.

North Dakota

According to the USDA’s National Agricultural Statistics Service for the week ending April 3, there were 1.5 days suitable for fieldwork so far in North Dakota. Reports indicated that, on average, producers intend to begin fieldwork on April 14. Topsoil moisture supplies rated 23% very short, 23% short, 51% adequate and 3% surplus. Subsoil moisture supplies rated 26% very short, 32% short, 40% adequate and 2% surplus.

The soybean acreage estimate for North Dakota is down 3%. Corn acreage is down about 12% in North Dakota declined 12%. Rising input costs likely contributed to the bigger than expected decline in corn planting intentions. North Dakota remains the largest spring wheat producing state with the planted area forecast at 5.2 million acres. That’s down 5% from 2021.

More than 72% of North Dakota is classified as being in moderate to extreme drought, according to the U.S. Drought Monitor. That’s a 6% increase in the past week. Extreme drought conditions persist in the northwestern part of the state with the entire western half of North Dakota experiencing at least some form of moderate to severe drought. The drought conditions extend into western and central South Dakota.

The USDA released their much-anticipated Prospective Plantings report on March 31. U.S. soybean acres are up 4% to a total of 91.0 million acres; in contrast, U.S. corn acres are down 4% to a total of 89.5 million acres. Most major soybean growing states predict modest % increases from 2021.

In North Dakota, total principal crop area planted dropped 2% to 23.7 million acres from 24.1 million acres in 2021. Soybean acres are down 3% from 2021 to a total of 7.0 million acres (2021 had 7.25 million acres); this would place North Dakota fourth in total soybean acres (the same as 2021). Canola acres would be a record high for North Dakota

IP Crop Network, March report

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This monthly feature from SSGA’s Agronomy Action Team highlights growing conditions for Identity Preserved crops from different regions around the country. Thanks to the states/regions that contributed this month. If you would like to contribute, please get in touch with David Kee or Shane Frederick. You can also follow David Kee on Twitter for some of the latest, most-interesting information on agronomy and research that affect IP and other farmers.

Minnesota
As winter begins to lose its grip on the state, Minnesota farmers are busy planning. Input availability varies considerably across categories and locations. Farmers are also facing sticker shock on all inputs and services. Of the ones I chatted with, management plans now have versions M, N and O in place. Most of the standard tillage and fertilizer applications occurred as scheduled last fall. Consequently, minor change in crop acreage allocation is anticipated.

Minnesota’s drought-impacted area (D0-D2) has shrunk from 94% of the state in September to 57% in early March. The western third of the state is relatively drought-free, but there is limited subsurface water available. Timely rains will be needed to make a good crop. In the middle of February, soil temperatures, at 4-inch depth, ranged in the low to high 20s (oF) in the north (Crookston) and upper 20s to low 30s in the south (Lamberton). Reports are that tile lines are still open indicate the frost line is relatively shallow. This is supported by the 40-inch soil temperature (>34oF) in Crookston. Farmers are cautiously optimistic of an early planting season, but April is still three weeks away.

Michigan
The outlook for the 2022 Michigan soybean crop is positive and enthusiastic. The recent run-up in commodity process has changed some sentiment in the crop mix among growers. As crop input prices were calculated throughout the winter season, many farmers were considering the switch from corn to soybeans on some acres. This thought has moderated somewhat with increased prices, especially of corn. Fertilizer availability and weather during the planting season likely will have the biggest effect on the crop mix choices this year.

As herbicide availability and prices are still unknown in some cases, more growers are considering the choice of some non-GMO soybeans. If glyphosate and glufosinate pricing and availability become more secure, this may change. Weed control challenges continue to be a strong influence on growers’ choices as herbicide resistant marestail and common waterhemp continue to be strong considerations.

It took all of that to say that I don’t expect the soybean acreage in Michigan to be drastically different than our past acreage. But the wild ride of commodity prices and crop inputs continues and may have another curveball to throw before the crops are planted.

Illinois
In my 30 years in the ag business and 50 years being involved on the farm, I have never seen anything like what we are currently experiencing: grain markets on a huge roller coaster, record-high input prices and land sale prices and cash rents that show no signs of stopping. Last week had two grain farmers drive an auction to $21,000/acre for ground that five years ago would have brought $5,000/acre. We are definitely experiencing unprecedented times.

Corn acres in Illinois likely will be flat to possibly up a little in the good soils and flat to down on the lighter soils. Those in central/northern Illinois who apply anhydrous had the opportunity to do that at $750-$800/ton, compared to all of the spring applied anhydrous that is going to go on at $1,500/ton. Based on that, one of the largest costs in corn production is locked in at well below current market prices. Corn will get planted. As you move south that high price of N and lower-yielding soils will drive more acres to soybeans.

Current soil profiles are at maximum water holding capacity, and as soon as it dries up, we will see field activity. Not much will get planted until April 1, but a lot of work will get done if the weather allows.

The most interesting story right now is the winter wheat crop that is in the ground. Illinois ended up with around 735,000 acres planted last fall, a fairly large crop compared to the last few years. Most of the crop looks pretty good and three-fourths of the acres have had half of the spring nitrogen applied. The recent spike in price has many growers asking about planting spring wheat in central and southern Illinois. For many agronomic reasons this is strongly discouraged, but I am betting somebody will try it.

Missouri
As we roll into Spring in Missouri, we are seeing the up and down of temperatures with intermittent rain and snow showers. We are coming off two weeks of cold weather with snow and ice hitting most of the state. The Missouri Soybeans’ staff was in Portageville, MO, last week for the Missouri Soybean Merchandising Council board meeting. While down there, we saw several areas with water standing at the lower ends of the field furrows, but there was some green-up in sight. We did see several acres of wheat starting to green. Also, we did see some aerial applications beginning down there. Some producers noted that tillage had begun.

Overall, we are seeing the same trends across the U.S. There are many producers working to secure inputs for the season, but this is a trend across the U.S. Also, the SOYLEIC® soybean team is still working with licensees across the U.S. to lock in more SOYLEIC® soybean acres. This also goes for non-GM acres. If you have any leads on producers interested in non-GM or planting the SOYLEIC® soybean trait, let us know. Many QSSBs and licensees are working to fulfill the demand for both, non-GM and SOYLEIC soybean acres.

This monthly feature from SSGA’s Agronomy Action Team highlights growing conditions for Identity Preserved crops from different regions around the country. Thanks to the states/regions that contributed this month. If you would like to contribute, please get in touch with David Kee or Shane Frederick. You can also follow David Kee on Twitter for some of the latest, most-interesting information on agronomy and research that affect IP and other farmers.

Competitive Shipping: SSGA backs Senate’s ocean shipping reform legislation

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By Bruce Abbe, SSGA Strategic Adviser for Trade and Transportation

The much-awaited U.S. Senate version of the ocean shipping reform legislation was formally introduced on Thursday by Sen. Amy Klobuchar (D-Minn.) and Sen. John Thune (R-S.D.).

The legislation earned the initial support of more than 75 business trade organizations at its introduction, including the Specialty Soya and Grains Alliance, as part of a wide cross-section of additional national and state agriculture organizations. Supporting groups also included the Agriculture Transportation Coalition, Minnesota Soybean Growers Association, Minnesota Corn Growers Association and South Dakota Soybean Association, along with a number of notable companies involved in container export shipping such as SSGA member SB&B Foods and Double River Forwarding.

The bill also had 12 bipartisan co-sponsors, including Sens. Tammy Baldwin (D-Wis.), John Hoeven (R-N.D.), Debbie Stabenow (D-Mich.), Roger Marshall (R-Kan.), Gary Peters (D-Mich.), Jerry Moran (R-Kan.), Richard Blumenthal (D-Conn.), Todd Young (R-Ind.), Mark Kelly (D-Ariz.), Marsha Blackburn (R-Tenn.), Cory Booker (D-N.J.) and Joni Ernst (R-Iowa).

The Senate legislation would:

  • Require ocean carriers to certify that late fees —known in maritime parlance as detention and demurrage charges — comply with federal regulations or face penalties.
  • Shift burden of proof regarding the reasonableness of detention or demurrage charges from the invoiced party to the ocean carrier.
  • Prohibit ocean carriers from unreasonably declining shipping opportunities for U.S. exports, as determined by the Federal Maritime Commission (FMC) in new required rulemaking.
  • Require ocean common carriers to report to the FMC each calendar quarter on total import/export tonnage and 20-foot equivalent units (loaded/empty) per vessel that makes port in the United States.
  • Authorize the FMC to self-initiate investigations of ocean common carriers’ business practices and apply enforcement measures, as appropriate.
  • Establish new authority for the FMC to register shipping vessel-sharing alliance exchanges.

It’s been noted that the Senate version of the bill differs slightly from the House version of the legislation, introduced by Rep. John Garamendi (D-Calif.) and Rep. Dusty Johnson (R-S.D.), which passed the with overwhelming support in December.

Both bills require that ocean carriers certify that any detention and demurrage fees they charge shippers, forwarders or truckers comply with federal guidelines on such penalties before automatically billing them and forcing shippers to file information proving the bills are incorrect.

Stronger guarantees of carrier handling of U.S. exports is also the aim of both bills. However, while the House bill would prohibit carriers from rejecting export bookings if the cargo can be “loaded safely and timely” on vessels destined to the destination, the Senate bill would leave it up to the FMC to develop rules and procedures to strengthen ocean carriers’ common carrier responsibilities to handle exports.

“Congestion at ports and increased shipping costs pose unique challenges for U.S. exporters, who have seen the price of shipping containers increase four-fold in just two years. Meanwhile, ocean carriers have reported record profits,” Klobuchar said in a news release. “This legislation will help level the playing field for American exporters so they can get their goods to market in a timely manner for a fair price. As we work to improve our supply chains, I’ll keep fighting to establish trade opportunities for the U.S.”

In a statement, Thune said: “South Dakota producers expect that ocean carriers operate under fair and transparent rules. Unfortunately, that is not always the case and producers across America are paying the price.”

For more details, read coverage in Freightwaves, Journal of Commerce and AgriPulse.

 

Klobuchar, Booker also address carrier alliances

Separately Klobuchar, a senior member of the Senate Commerce Committee and chair of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, introduced legislation together with Booker aimed to address shipper concerns over ocean carrier alliance practices.

The ocean container carrier industry has gone through much consolidation over that past eight years, and today the 10 largest global steamship lines operate in just three container vessel-sharing alliances.

Klobuchar’s statement noted: “While alliances are intended to benefit the global shipping industry, only three alliances dominate the global shipping industry, creating imbalance of market power.”

The “Ocean Shipping Competition Reform Act” (S. 3586), according to the Klobuchar news release, would allow for third parties to participate in legal cases brought by the FMC against ocean carriers for anticompetitive harm and let successful third parties in those legal cases receive money damages, with additional financial penalties designed to deter anticompetitive conduct.

 

More transportation updates

Ocean carriers post ‘greatest quarter ever’: Preliminary results of the financial performance of the world’s ocean container carriers at the end of last year, according to transportation media outlet Freighwaves, shows the carriers are recording “history-making profits … trouncing already stratospheric expectations.” More details, including public earnings reports for several major container lines are available here.

USDA announces subsidy for California ‘pop-up’ export container staging yard: American Journal of Transportation and Freightwaves have details about a program USDA announced last week on a partnership the agency started with the Port of Oakland to support agriculture exports from a new 25-acre container staging facility. Key congressional lawmakers say more is needed.

Bulk shipping rates slide: While container ocean rates continue at high levels, bulk shipping rates reportedly are declining due largely to a slowdown in China’s steel production. That affects rates for shipping bulk agriculture commodities, according to American Journal of Transportation.  

West Coast port congestion numbers reported: According to a Northwest Seaport Alliance (NWSA) operations report, as of February 3, the number of ships waiting to berth at the Seattle and Tacoma terminals were down to just five vessels. Prince Rupert also had five ships waiting; Vancouver, B.C., had 14 waiting; and Oakland had 13 waiting. Los Angeles and Long Beach, the two largest U.S. container ports had 89 ships waiting, using a new container vessel queuing process for the California ports.

Check out a video on NWSA’s new T5 terminal: You can get a look at NWSA’s new big-ship-ready modernized T5 terminal, with the largest cranes in the world, in a video posted on YouTube. MSC is the first ocean carrier with regular scheduled service at the now open terminal.

House passes bipartisan ‘Ocean Shipping Reform Act’

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The Specialty Soya and Grains Alliance is pleased that the “Ocean Shipping Reform Act” (H.R.4996) overwhelmingly passed the U.S. House of Representatives on Thursday. The legislation, co-sponsored by Rep. John Garamendi (D-CA) and Dusty Johnson (R-SD), passed by a bipartisan vote of 364-60

The bill, which has received strong endorsement from SSGA and many other national organizations whose members have been affected by global supply chain disruption, would make the Federal Maritime Commission (FMC) a more effective federal regulator and ensure a more competitive global ocean shipping industry.

The legislation now heads to the United States Senate for consideration.

“We are pleased to see the House of Representatives take a strong bipartisan step forward to protect the interests of U.S. agricultural exporters by making needed reforms to strengthen the U.S. Shipping Act,” said Darwin Rader, SSGA board director and competitive shipping action team chair. “We hope the Senate will follow through with strong complementary legislation and that Congress will provide the Federal Maritime Commission with adequate resources to carry out its vital regulatory oversight mission.

“We would further welcome the opportunity to engage with the ocean carriers on ways to assure that inland U.S. agriculture shippers have timely access to containers and space on vessels so that we can reliably serve our overseas food manufacturing customers.”

The “Ocean Shipping Reform Act of 2021” would:

  • Establish reciprocal trade to promote U.S. exports as part of the Federal Maritime Commission’s (FMC) mission.
  • Require ocean carriers to adhere to minimum service standards that meet the public interest, reflecting best practices in the global shipping industry.
  • Require ocean carriers or marine terminal operators to certify that any detention and demurrage charges comply with federal regulations or face penalties.
  • Shift burden of proof regarding the reasonableness of detention or demurrage charges from the invoiced party to the ocean carrier.
  • Prohibit ocean carriers from declining opportunities for U.S. exports unreasonably, as determined by the FMC in new required federal rulemaking.
  • Require ocean common carriers to report to the FMC each calendar quarter on total import/export tonnage and twenty-foot equivalent units (loaded/empty) per vessel that makes port in the United States.

Read more.

India: Partnership and progress toward market access

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China Experience Proves Local Producers Can Thrive as Imports Rise

By Philip Shull

A frequent refrain from frustrated exporters to tough destinations is: “This is a market of great potential. … And it always will be!”

Philip Shull

Philip Shull

With its huge population, rapidly growing economy, massive protein deficit, high tariffs and impossibly strict phytosanitary requirements, India has been in this category for decades. Despite promising trade missions, pressure from U.S. Department of Agriculture and U.S. Trade Representative over the years, and ready demand for our products among local processors, the India market has remained closed to U.S. Identity Preserved soy.

But this could soon change. Thanks to the initiative and strong advocacy of India’s Soy Food Promotion and Welfare Association (SFPWA, an industry group comprised of Indian processors of soy foods), access for U.S. IP soy to this long-closed market has never been closer.

Rising economic demand for protein among India’s 1.4 billion consumers has led to a sharp increase in domestic food prices. In response to this worrying development, the Indian government took the historic step in May 2021 of suspending its ban on pulse imports. This was a major development in a country where pulses are a foundational protein source and where self-sufficiency in pulses has long been a pillar of India’s agricultural policy.

Leveraging this unprecedented market opening, SFPWA wrote a letter to the Indian government requesting a 50,000-ton tariff rate quota (TRQ) for food quality soybeans. (Governments use TRQs to allow a certain amount of a given product to enter the country at a reduced tariff.)

Among other things, the letter explained that imports of IP soy would not harm Indian soy farmers because India has a large soy deficit and the characteristics and uniformity that U.S. specialty soy provides and that Indian processors need are unavailable in the domestic market.

In contrast to past market-opening efforts, SFPWA’s letter was met with an immediate and positive response from the Indian media. Dozens of articles appeared in support of the request. These media reports indicate that SFPWA’s ability to show how a TRQ could help Indian soybean farmers, as well as consumers, have led key ministries to meet with SFPWA leadership to discuss the issue. While much remains to be done and market access is not yet assured, progress toward this goal appears to be unprecedented.

SFPWA’s position is that opening the Indian market to soybeans will not harm Indian soybean farmers, and the experience of China supports this assertion. China’s decision in the 1990s to open its market to soybeans led to explosive growth in Chinese soy production, along with the historic growth in imports and consumption.

China is an especially apt case study for India because the countries share key characteristics.  Both are rapidly growing emerging markets with similar-sized populations, limited arable land and a history of strong import restrictions on soybeans. Just as importantly, both countries have experienced widespread protein deficits that harmed quality of life for their people. SFPWA believes that a TRQ for Identity Preserved soy will help improve diets throughout India. The Specialty Soya and Grains Alliance and the U.S. Soybean Export Council agree.

USDA data show that Chinese soy production rose, even as imports grew.  Today, China’s soy production (20 million tons) and imports (103 million tons) are both at or near-record levels. Meanwhile, Chinese soybean consumption rocketed from roughly 7 million tons in the 1970s to almost 120 million tons estimated in 2021 (v. 0 to 11.2 mmt for India). Consumption of soy for food rose from 6 million tons to 15 million tons during this period. This combined increase in soy consumption has contributed enormously to improvements in Chinese nutrition and quality of life during this period.

Charts linked here compare Indian and Chinese soybean imports (India, China), production (India, China), consumption (India, China), food-use consumption (India, China) and exports (India, China) over the past 50 years.

Per capita income in China and India was roughly equivalent at $500 in 2000. However, since China opened its market to soybeans, there has been a sharp divergence. While income in both countries grew strongly, India’s per capita income reached roughly $2,000 per capita in 2020, China’s grew to almost $10,000.

Bottom Line:  India remains a market of immense potential for U.S. specialty soya, and gaining access is a priority for SSGA. Given the similarities in the agricultural and consumer profiles between China and India, it is clear that Indian consumers and producers of poultry, dairy, aquaculture and soy-based foods could benefit greatly from greater access to imported soy without harm to India’s soybean farmers.

For years, SSGA and USSEC have worked intensively with the Indian soy food and feed industries to demonstrate how U.S. soy can improve diets and incomes throughout the country. We value this cooperation and applaud SFPWA for its historic initiative and unprecedented effort.

As President John Quincy Adams said, “Perseverance has a magical effect, before which difficulties disappear and obstacles vanish.”

Philip Shull is an SSGA Technical Adviser for South Asia. For 31 years he served in USDA’s Foreign Agricultural Service (FAS), opening markets for U.S. agricultural products.  He was stationed in China and greater China for 11 years (1987-92, 2006-2010, 2014-2016).