Quarterly Where Does Your Food Dollar Go? - Idaho dairy outlook, 15 - Idaho Farm Bureau
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Quarterly Idaho Farm Bureau Winter2021 Winter 2022 •• Volume Volume22 21Issue Issue1 4 Where Does Your Food Dollar Go? Idaho dairy Idaho potato Word outlook, 15 outlook, 17 search, 19
The Zipline By Zippy Duvall President American Farm Bureau Federation Farmers making their voices heard on WOTUS W Water is critical to our families and our farms. It breathes life into our crops and produces forage for ani- mals on our rangelands. They’re using new technologies to filter water as it drains beneath our fields and continually work to beef up other clean water protections. Last year, officials at the EPA and U.S. Army It is a priority for farmers and ranchers to en- Corps of Engineers announced they would sure the water we rely on is clean because safe, rewrite the Waters of the U.S. (WOTUS) rule, clean water is critical to all life. continuing a nearly decade-long back and forth Farmers and ranchers are stepping up to that has left farmers and small business owners partner with their communities to protect our scratching their heads. water. Farmers have increased the use of buffer In 2015, the WOTUS rule was rewritten and strips to prevent excess fertilizer from reaching federal courts blocked its implementation in waterways. See DUVALL, page 6 The President’s Desk By Bryan Searle President Idaho Farm Bureau Federation Farmers hit with rising input costs R Rising inflation has impacted every con- sumer and every sector of the economy in America and farming is no exception. Many farmers in Idaho say their cost of produc- in some areas of the country. Farmers can get by without some things, but they can’t get by without fertilizer. Not only has the price of fertilizer increased, but tion has risen about 20 percent compared to a year a lack of supply has been a major concern. There ago. was more fertilizer applied this past fall than any Crop prices are volatile and there is no guaran- other year I’ve farmed and it was due to the con- tee that what farmers and ranchers will receive for cern about a lack of supply and how much more their commodity this year will be enough to cover the price might increase. the increased production costs. The rising price of fertilizer alone will increase Fertilizer prices in particular have gone bal- the average farm production cost listic, with price increases as high as 300 percent See SEARLE, page 7 Inside Farm Bureau By Zak Miller CEO Idaho Farm Bureau Federation I just might need shades I n 1986, a rock group called Timbuk 3 re- leased a song titled, “The Future’s so Bright, I Gotta Wear Shades.” When you see that song title, you are either a At the American Farm Bureau Federation convention in Atlanta in January, Idaho was honored to be represented by some of the best and brightest young producers around. cynic who doubts that claim, or you’re an opti- Farm Bureau offers three specific compe- mist who believes the future is indeed bright. titions that all members of the organization’s If you would like to move from the cynic Young Farmers and Ranchers program, which is camp to the optimist side of the tracks, may I for ages 18-35, can participate in. suggest simply looking at our youth. The Idaho winners of those three contests, Specifically, our young farmers and ranchers which are highlighted below, joined us in Atlan- in this great state of Idaho. ta for AFBF’s annual conference. See MILLER, page 6 2 | Idaho Farm Bureau Quarterly
Idaho Farm Bureau Table of contents Volume 22, Issue 1 IFBF Officers President.............................................................Bryan Searle, Shelley Vice President...........................................Richard Durrant, Meridian 4 The Financial Condition of Idaho Executive Vice President/CEO............................................ Zak Miller Agriculture report. BOARD OF DIRECTORS Dan Garner..................................................................................Clifton Austin Tubbs................................................................................. Malad Jason Fellows.............................................................................Weston Scott Steele.......................................................................... Idaho Falls 8 Farm input costs soar. Stephanie Mickelsen.......................................................... Idaho Falls Travis McAffee............................................................................. Howe Darren Taber..........................................................................Shoshone Rick Pearson.........................................................................Hagerman Rick Brune............................................................................... Hazelton 11 Sugar beet group gets more Cody Chandler............................................................................Weiser Galen Lee.......................................................................New Plymouth members, new name. Matt Dorsey............................................................................. Caldwell Marjorie French.....................................................................Princeton Tom Daniel.................................................................... Bonners Ferry Tom Mosman........................................................................ Craigmont Melissa Durrant....................................................................... Meridian 12 How food gets from the farm STAFF Executive Assistant.............................................................. Cara Dyer to the store. Director of Operations....................................................Justin Patten Operations Assistant..................................................Elly MacDonald Financial Controller..........................................................Tyler Moore Director of Member Relations........................................Brody Miller Dist. I Regional Manager........................................................Ott Clark 15 Idaho dairy outlook for 2022. Dist. II Regional Manager.................................... Camron Hammond Dist. III Regional Manager................................................ Zack Lanier Dist. IV Regional Manager....................................... Naomi Anderson Dist. V Regional Manager............................................. Bob Smathers Boise Office Manager.................................................. Quinne Russell Dir. of Governmental Affairs..................................... Russ Hendricks Energy/Natural Resources........................................... Braden Jensen 17 Idaho potato outlook for 2022. Governmental Affairs Representative...........................Chyla Wilson Director of Information................................................... Joel Benson Project Coordinator ...................................................Kristy Lindauer Publications Editor/Media Contact.................................... Sean Ellis Videography Broadcast Coordinator............................ Paul Boehlke Videographer............................................................. Michaela Andrus Member Benefits Manager.............................................Betty Inskeep 19 Word search: Inventions for Printed by: Adams Publishing Group, Pocatello, ID IDAHO FARM BUREAU QUARTERLY a better life. USPS #022-099, is published monthly except is published by the IDAHO FARM BUREAU FEDERATION, 275 Tierra Vista Drive, Pocatello, ID 83201. POSTMASTER send changes of address to: IDAHO FARM BUREAU QUARTERLY P.O. Box 4848, Pocatello, ID 83205-4848. 22 Thinning small trees. Periodicals postage paid at Pocatello, Idaho, and additional mailing offices. Subscription rate: $4.00 per year included in Farm Bureau dues. MAGAZINE CONTACTS: Idaho Farm Bureau Federation EDITOR (208) 239-4292 • ADS 208-239-4384 26 Building poles for hop growers. E-MAIL: seanellis@idahofb.org ADS: advertising@idahofb.org web: www.idahofb.org COVER: This is the produce section of the Fred Meyer store in Pocatello. For a story on how food gets from the farm to the store, see page 12. (Photo by Michaela Andrus) February 2022 | 3
Photo by Paul Boehlke University of Idaho Agricultural Economist Garth Taylor speaks to Idaho lawmakers Jan. 6 about how the state’s farming and ranching industry fared in 2021. Idaho ag sets record, but net farm income down By Sean Ellis That’s according to University of Ida- ers and ranchers receive directly for their Idaho Farm Bureau Federation ho’s, “The Financial Condition of Idaho commodity and net farm income – total Agriculture: 2021” report, which was re- farm revenue minus costs – is the pro- BOISE – Despite a severe drought and leased to state lawmakers Jan. 6. ducer’s bottom line, or paycheck. early season heat wave that depressed The annual report by UI agricultural According to the Financial Condi- production, Idaho set a record for total economists is the first estimate of how tion report, Idaho farmers and ranchers farm cash receipts in 2021. Idaho farmers and ranchers fared during brought in $8.88 billion in farm cash re- But farm and ranch expenses in Idaho the previous year. ceipts during 2021, which was 9 percent also reached a record level in 2021 and USDA state-level estimates of farm higher than the 2020 total and above the total net farm income in the state de- cash receipts and net farm income are re- previous record of $8.79 billion set in clined by 8 percent last year compared leased in late August. 2014. with 2020. Farm cash receipts is the revenue farm- Despite severe drought and heat that 4 | Idaho Farm Bureau Quarterly
ranging from 3-7 percent not production, which was reduced due When expenses are subtracted compared with 2020. to last year’s drought conditions and ex- According to the Fi- treme heat. from total farm and ranch nancial Condition of Ida- For example, total Idaho wheat produc- revenue, which includes things like ho Agriculture report for 2021, total cash receipts tion declined 32 percent last year but that crop brought in 3 percent more in cash government payments, machine for Idaho’s top seven agri- receipts. cultural commodities in- Barley production in Idaho declined by hire and custom work, total net creased in 2021 compared 21 percent last year but cash receipts for farm income in Idaho in 2021 is with 2020. that crop also increased by 3 percent. Cash receipts for Idaho’s Idaho potato production was down estimated at $2.39 billion, which dairy industry totaled an 2 percent last year despite the fact that is 8 percent below the record level estimated $3.1 billion in 2021, which was a 3 per- farmers planted 15,000 more acres in 2021. However, cash receipts for Idaho of $2.6 billion set in 2020 and cent increase over 2020, spuds increased by 8 percent last year. and cash receipts for the Taylor said growth in total gross do- also below the 2019 total of $2.53 state’s cattle and calves mestic product from Idaho’s agricultur- billion. industry increased by 13 al industry has outpaced growth in total percent, to $1.8 billion. Idaho GDP over the past few decades. significantly reduced most crop yields in Idaho’s top crop, po- Most of that growth in farm GDP in Idaho, “We broke an all-time record high tatoes, brought in a record $1 billion in the state has been driven by production in cash receipts in 2021,” UI Agricultural cash receipts during 2020, according to agriculture and not food processing, he Economist Garth Taylor told legislators the report. That was an 8 percent increase added. Jan. 6. over 2020. From 1997 to 2020, total Idaho farm That’s because prices for most of the Cash receipts for Idaho’s wheat indus- GDP grew by 200 percent, while total state’s main agricultural commodities try totaled $560 million in 2021, a 3 per- Idaho GDP grew by 90 percent, Taylor were up significantly last year compared cent increase, and cash receipts for the said. with 2020, said Taylor, one of the report’s state’s hay farmers totaled $554 million, a Total GDP from Idaho’s food process- co-authors. 21 percent increase compared with 2020. ing industry grew by 60 percent during But enthusiasm surrounding the record Idaho sugar beet farmers brought in that time, he added. is tempered by significantly increased $396 million during 2021, 19 percent Agriculture “is a growth industry for farm input costs, Taylor added. more than during 2020, and Idaho barley the state of Idaho,” Taylor said. “And it’s “The expenses for 2021 are eating us growers brought in $246 million in cash grandma and grandpa on a tractor that is up,” he said. receipts last year, a 3 percent increase. driving that growth.” n According to the report, total farm and In almost every case, the higher cash ranch expenses in Idaho totaled a record receipts were due to higher prices and $7.84 billion in 2021, which was an 8 per- cent increase over 2020. When expenses are subtracted from total farm and ranch revenue, which in- cludes things like government payments, machine hire and custom work, total net farm income in Idaho in 2021 is estimat- ed at $2.39 billion, which is 8 percent below the record level of $2.6 billion set in 2020 and also below the 2019 total of $2.53 billion. UI ag economists attributed the higher expenses to 12 percent increases in farm origin (feed, seed and replacement live- stock purchases) and manufactured (fer- tilizer, chemicals and fuels) inputs. All other inputs, including labor, prop- erty taxes and fees, and payments to stakeholders, increased by percentages Photo by Paul Boehlke February 2022 | 5
DUVALL Continued from page 2 no impact on any of America’s small a regulated ephemeral stream, which more than half of the states because it was businesses. That simply isn’t true. means it has flowing water only during a clear overreach by the federal govern- The proposal the EPA and Army and after it rains. ment. Corps of Engineers have presented The example James shared was power- In 2020, the rule became the Navigable would significantly expand the land mass ful. That’s how we’ll make an impact as Waters Protection Rule, which provided regulated by the federal government and the Administration works to rewrite the clearer rules while ensuring clean water. lead to a costly labyrinth of permitting WOTUS rule. If you’ve ever had to deal with red tape requirements that small businesses aren’t We must help policymakers and the from our federal government, you know equipped to navigate. public understand the impact of irre- that working through the stack of paper- Although EPA has left me wondering sponsible regulation, tying the hands of work and fees that come with applying about their sincerity in working with the very people stocking our pantries. for federal permits often requires lawyers farmers, I’m grateful that the Small And we must remain persistent in our and consultants. Business Administration seems to be effort to make sure regulations that keep The 2015 rule would have prevented genuinely listening. our water clean also respect farmers, farmers from moving forward on cli- We worked with SBA to set up meet- ranchers, and small business owners. mate smart farming practices and other ings where federal officials heard direct- You can make your voice heard today advancements that ensure farms remain ly from property owners about potential by visiting fb.org/wotus. viable and vibrant. impacts of a new rule. When I called on farmers and ranchers Unfortunately, warning lights point to In early January, the agency heard to respond to this action alert during our the Biden Administration heading down from farmers and small businesses in- AFBF convention, over 1,800 farmers a similar path as the 2015 WOTUS rule. volved in agriculture. James Henderson, and ranchers answered the call in less While EPA Administrator Regan Colorado Farm Bureau vice president, than 36 hours. committed to a robust dialogue about joined the video call from a field he I hope you’ll answer the call, too, and the potential effects of the new rule, the farms. tell the EPA why we need clear rules for agency seems to be moving forward even He was standing in a grass waterway. clean water. We stand ready to engage in as they ask stakeholders to set up region- James said he hadn’t seen water flow- an honest and meaningful dialogue with al meetings. ing through it in years. But, under the policymakers and all stakeholders. The EPA claims the new rule will have proposed rule, EPA could classify it as That’s the Farm Bureau way. n MILLER Continued from page 2 Matt and Jessica Henderson, who won tion where a competitor can lose points Achiever Award: This award is for IFBF’s 2021 Excellence Award, have such for not getting along with their compet- farmers and ranchers who make their a remarkable story. They are chasing a itors. living on the farm or ranch. dream and seeing it continue to grow Andrew Mickelsen from Roberts was Terry and Ashlee Walton from Em- and evolve through their vision. the winner of IFBF’s 2021 Discussion mett, the winners of Idaho Farm Bureau The Hendersons produce pork, but Meet Federation’s 2021 Achiever Award, have that’s not all. They also butcher, package, If people were to watch Andrew par- accomplished amazing things, although smoke, and ship pork in little Swan Lake. ticipate in a Discussion Meet, I doubt they are so humble you would never As if that wasn’t enough, they also many would know he is a full-time pota- know that had they not entered this volunteer for the fire department and a to farmer. It would seem more logical to year’s contest. myriad of other community activities. ask what law school he attended. What the Waltons have accomplished Like the Waltons, it is easy not to Andrew, who competed in multiple is building a farm while achieving finan- know their story and how they have Discussion Meets before winning the cial and production goals, and raising a overcome some extraordinary challenges 2021 event, was so much fun to watch family. because they are so humble. last year and to see his skill and charisma A family working together on the But it is hard to hide drive like that. grow over the past years as he has par- farm, they are living, through their hard Discussion Meet: All politicians ticipated in the event is a testament that work, what so many only dare to dream should compete in this event, which hard things make great people. of doing. features four to five contestants discuss- Farm Bureau exists to represent the Excellence Award: This award is for ing a topic where the goal is not to beat voice of Idaho agriculture. It is awesome farmers and ranchers who have an off- their opponent but to find a solution to for Farm Bureau when people like the the-farm job as well as their duties on the problem! Mickelsens, Waltons and Hendersons the farm. It is quite a concept to have a competi- are willing to offer their voices and share 6 | Idaho Farm Bureau Quarterly
MILLER their experiences with the organization the other 25,000 farmers and ranchers proudly supports and invests in our and other producers. in our state working just like them to do youth to help them achieve great things, If these three excellent examples are more and be more. and for that reason, sometimes, when not enough to convince someone that From 4-H to FFA to the Young Farm- I consider the future, I must reach for the state’s future is bright, consider all ers and Ranchers program, Farm Bureau shades. n SEARLE Continued from page 2 When you buy a food item at the tion costs, there is also uncertainty about significantly during the 2022 growing grocery store or restaurant, out of every whether certain fertilizers and chemicals season. dollar you spend, the farmer or rancher on will even be available this coming grow- And that will be on top of last year’s average gets about 7.6 cents of that dollar, ing season. It appears likely there will be increase in farm production expenses. according to estimates by American Farm shortages of some agricultural chemicals According to estimates by University of Bureau Federation. and fertilizer in 2022. Idaho agricultural economists contained The rest of your food dollar goes to pay While knowing all this won’t lower the in the U of I’s annual “Financial Condition for a myriad of other costs, including those cost you are paying for food, I hope it will of Idaho Agriculture” report, total farm related to transportation, processing, pack- help you better understand the challenges expenses in Idaho reached a record level of aging and advertising. farmers currently face with rising prices $7.84 billion in calendar year 2021, which Using potatoes, here is an example of and the role they play in the food supply represented an 8 percent increase over the how much money a farmer might get for chain. 2020 total of $7.2 billion. French fries you buy at a fast-food restau- But do know this: Farmers and ranchers The report attributed last year’s overall rant. Say you pay $1 for 8 ounces of fries. are very resilient and will work hard each increase in farm expenses in the state to 12 That equals out to $200 for 100 pounds day to continue to provide a supply of safe percent increases in farm origin (feed, seed of spuds. At current farm-level prices, the food and fiber. n and replacement livestock purchases) and farmer will get about $8 of that. manufactured (fertilizer, chemicals and Keep in mind that farmers are price fuel) inputs. takers and not price All other farm and ranch inputs, includ- makers. That means ing labor, property taxes and fees, capital they can’t pass their Isn't it time to consumption and payments to stakehold- increased costs on ers, increased from 3-7 percent compared to the consumer put your money with 2020. [See page 8 for a story on the increase in like other parts of the supply chain to work for you? Farm Bureau Finance Company offers farm input costs.] can. Like the saying subordinated debenture notes at rates Compounding the challenge of price goes, “Farmers are Benefits above most competitors. increases is the lack of an adequate supply the real gamblers Minimum investment of $50.00 of parts, equipment, labor, fertilizer, chem- due to the risk they You choose the term one month to 60 months Automatic re-investment for your convenience with no loss of interest icals, and the list goes on. take.” I explain this increased cost and lack of With the cost of supplies for farm production not to whine almost everything on behalf of agricultural producers, but to increasing, there is point out what is happening at the farm great risk right now level to help explain why food prices have on the farm and risen, in some cases substantially, over the ranch heading into past year. the 2022 growing Rising inflation, which is at the highest season because level in four decades, has increased the there is no guaran- cost of virtually everything, including the tee that production cost of producing food. costs won’t continue I would in no way try to downplay the to rise significantly impact that rising food costs are having during the rest of Terms in months. Yield assumes that interest is compounded uarterly and is left in the account for a full year. A subordinated debenture note is a security on Americans, but it might help to explain this year. Call: (208)239-4259 offered by Farm Bureau Finance Company that Farm Bureau Finance Company why this is happening and the role that In addition to 275 Tierra Vista Drive may only be purchased by residents within the State of Idaho. Prospectus available upon request farmers and ranchers play in that equation. the rising produc- Pocatello, Idaho 83201 and furnished with each purchase. February 2022 | 7
Photos by Sean Ellis Farm production costs have risen significantly, in some cases dramatically, over the past year. Rising input costs hitting farmers hard By Sean Ellis “Our costs of production have really Rising production costs have reached Idaho Farm Bureau Federation escalated,” says Teton farmer Dwight a level where they may impact Idaho Little. “It was a huge jump in what we potato growers’ planting decisions for POCATELLO – Farm production had to pay this year for inputs.” 2022, Ben Eborn, owner of North Amer- costs rose substantially in 2021, in some Caldwell farmer Sid Freeman asked for ican Potato Market News, said Dec. 16 cases dramatically, and those input cost and got a 20 percent increase in the con- during a University of Idaho Ag Outlook increases are continuing into 2022. tract price for the dry beans he plans to Seminar presentation. Rockland farmer Cory Kress farmed grow in 2022. He has asked for a similar He said 2021 operating costs for most says the current spike in farm input costs price increase for his onions. potato growers in Idaho jumped by 20 is unlike any other he has experienced. But he says his rise in input costs will percent, minimum, and as much as 30 “It’s unreal. These price increases are easily eat those crop price increases up. percent. pretty unprecedented,” he says. “It is go- “It’s bad,” Freeman says of the recent “Costs of production have skyrock- ing to be an interesting year to see how increase in farm production costs. “It’s a eted,” he said. “How do you plan when- this all shakes out.” major concern.” those prices jump like that in a year? Po- 8 | Idaho Farm Bureau Quarterly
tato contract prices are up significantly but so are input costs … and those input costs add a tremendous amount of risk and make decision making very difficult for the coming year.” Fertilizer prices in particular have gone through the roof. According to American Farm Bureau economists, fer- tilizer prices have risen as much as 300 percent compared with a year ago. If one word could be used to describe the current fertilizer market, it would be crazy or wild, University of Idaho Exten- sion Educator Xiaoli Etienne said Dec. 14 during a U of I Ag Outlook Seminar presentation. “Fertilizer prices have been on a crazy, wild ride,” she said. “Rising fertilizer prices are a great concern for farmers across the country,” says AFBF President Zippy Duvall. “The Farm input costs soared in 2021 and those increases are continuing into 2022. rising cost of supplies is slowing down the momentum America’s farmers were tation. Dec. 13 during a University of Idaho Ag starting to build through higher com- Before the recent increase in pro- Outlook Seminar presentation. modity prices and increased demand for duction costs, the average Idaho dairy “There is uncertainty as to whether their products.” needed to make about $16.50 for every some fertilizer and chemicals will even Wilder farmer Doug Gross, who grows hundred pounds of milk it produced to be available this year,” says Idaho Farm potatoes for the processing market, says break even. Now, that break-even point Bureau federation President Bryan he has seen about a 20 percent increase is closer to $19 per hundred pounds, says Searle. in the price he gets for his spuds but Idaho Dairymen’s Association Executive Freeman says that uncertainty is a production costs have gone up more Director Rick Naerebout. major concern heading into the 2022 than that. “The cost of milk production is rising growing season because every chemical a “Our prices are not escalating near as and will likely rise again next year,” farmer applies is applied for an import- fast as our costs are,” he says. “We’re get- Dustin Winston, a commodity finance ant, specific reason. If one of them isn’t ting hit everywhere: fertilizer, fuel, labor, analyst for EDGE-X Group, said Dec. available, it could jeopardize the entire equipment.” 16 during a U of I Ag Outlook Seminar crop. Last year’s production cost increases presentation. “A large factor of that is “We can’t guarantee we’re going to are one thing but farmers and ranchers feed and we know feed costs have been have all the supplies we’re going to need,” are bracing for similar increases in 2022. extremely high.” he says. “Fungicides, insecticides, herbi- Meridian farmer Neil Durrant fears Inflation has also significantly pushed cides. It all has to be applied in a timely farm input cost increases in 2022 will be up the cost of farm equipment to the manner.” huge also. point where the used equipment mar- The good news, Searle says, is that “You already know everything is going ket is hot right now, says Oakley potato farmers and ranchers are plowing ahead to be up (in 2022),” he says. “You just farmer Randy Hardy. with their normal food production plans, hope commodity prices stay at a level “If you have to have a new piece of despite the great uncertainty they face that can cover those costs. They are equipment, it’s crazy,” he says. “Used right now. going to have to.” equipment right now is hotter than a “American farmers and ranchers are Rising production costs are also firecracker.” definitely resilient and I have faith they having a major impact on the livestock The rising cost of production aside, will find a way to overcome this chal- industry and one of the biggest factors is there is major concern about even hav- lenge, just like they have every other the increasing cost of feed for animals. ing an adequate supply of fertilizer and challenge that has been thrown their way “The elephant in the room is inflation other chemicals in 2022 due to supply over the decades,” he says. n and it is a bit of a struggle for (cattle pro- chain disruptions. ducers),” Joel Packham, a University of “We can go without some things; we Idaho Extension educator, said Dec. 15 can’t go without fertilizer,” Brett Stuart, during an Ag Outlook Seminar presen- president of Global AgriTrends, said February 2022 | 9
Photos by Brad Griff Sugar beets are harvested in a southern Idaho field. The Idaho Sugarbeet Growers Association has changed its name to Snake River Sugarbeet Growers Association. Idaho sugar beet group expands membership and changes name By Sean Ellis 160 farmers in southwestern Idaho and be more efficient and effective when rep- Idaho Farm Bureau Federation eastern Oregon, as well as a handful in resenting sugar beet growers at the state Washington. and national level, said SRSGA President POCATELLO – The Idaho Sugarbeet The ISGA represented about 540 Ida- Randy Grant. Growers Association has expanded its ho growers, so the newly named SRSGA “The membership expansion will allow membership and reach and as a result, now represents 700 sugar beet farmers in us to represent our sugar beet growers has changed its name to Snake River Idaho, Oregon and Washington. at the state and national levels more ef- Sugarbeet Growers Association. Those farmers grow a combined fectively,” he said in a news release. “We The name change took effect Jan. 180,000 acres of sugar beets, with about plan to broaden our advocacy and edu- 1 and reflects the fact the group now 166,000 of those acres in Idaho. cation efforts, and the board is excited also represents members of the for- Combining the membership of the two for the future of our association.” mer Nyssa-Nampa Sugarbeet Growers organizations will allow the Snake River Sugar beets rank No. 6 among Idaho’s Association, which represented about Sugarbeet Growers Association to agricultural commodities when it comes 10 | Idaho Farm Bureau Quarterly
to total farm revenue and Gem State partnering with the American Sugarbeet Growers Association. farmers brought in an estimated $396 Growers Association to educate congres- “All sides are better off if we can speak million in farm-gate receipts in 2021, sional leaders about the importance of with one voice as an industry and we according to University of Idaho’s “Fi- U.S. sugar policy. are unified and pulling in the same nancial Condition of Idaho Agriculture: One of the biggest benefits of the direction,” he said. “This will allow us to 2021” report. merger is that the entire sugar beet coordinate our advocacy and education Sugar beets are also one of the state’s industry in the Pacific Northwest can efforts so much better.” n most stable crops because all sugar beet speak with a unified voice on a state and acres in Idaho and Oregon are grown national level, said Brad Griff, executive under irrigation. director of the Snake River Sugarbeet Joining the ISGA under one um- brella organization gives members of the Nyssa-Nampa Sugarbeet Growers Association an amplified voice at the Idaho statehouse and will increase their relationship with legislators, said Galen Lee, president of the former NNSGA. “Nearly 40 percent of Idaho’s legisla- tive districts are in western Idaho and we can now speak with one voice from our region through the Snake River Sugar- beet Growers Association,” he said. “It’s going to be a good move.” The mission of the Snake River Sugar- beet Growers Association is to advocate for sugar beet growers and educate the public about the agriculture industry. Sugar beets are harvested in a southern Idaho field. The Idaho Sugarbeet Growers The group’s advocacy efforts include Association has changed its name to Snake River Sugarbeet Growers Association. February 2022 | 11
Photo by Michaela Andrus This is the produce section at the Pocatello Fred Meyer store. A food item’s journey from the farm to the store is more complicat- ed than many people probably realize. In the end, a farmer or rancher gets, on average, 7.6 cents of every dollar consumers spend on food in the United States. How does food get from farm to the store? By Sean Ellis grows potatoes for the processing indus- The rest is divided up between the Idaho Farm Bureau Federation try. “It’s not nearly as simple as people different parts of the food supply chain: might think.” transportation, processing, packaging, POCATELLO – The food you buy There are several steps involved in the advertising, agribusiness, wholesale from the store or restaurant doesn’t get food supply chain, which is a food item’s trade, retail trade, food service and legal there by itself. Obviously. journey from farm to store. All of these and accounting. Everyone should know that. steps are necessary but by the time food “There are a lot of hands in the (food But a food item’s journey from farm or is sold to a consumer at the grocery store dollar) pot before food gets to the gro- ranch to the store is a lot more compli- or other eatery, the farmer’s share of the cery store,” says Rockland wheat farmer cated than most people probably realize. retail food dollar is pretty small. Cory Kress. “It doesn’t matter what the “I don’t think most people even care According to estimates by USDA’s commodity price is, a farmer’s share of about that process, unless the shelves are Economic Research Service, a farmer the food dollar pie doesn’t change that empty; then they start thinking about it,” gets, on average, 7.6 cents of every dollar much.” says Doug Gross, a Wilder farmer who spent on food in the United States. The vast majority of what Americans 12 | Idaho Farm Bureau Quarterly
Idaho Farm Bureau Federation graphic This graphic shows how much of the average dollar spent on food in the United States each part of the food supply chain gets. Notice that farmers and ranchers only get 7.6 cents of the average food dollar. pay for food “is certainly not going in develop individual marketing plans. been able to reduce the use of pesticides, the farmer’s pocket, that’s for sure,” says “The guy at the bottom of the totem water, and tillage thanks to the advance- Oakley potato farmer Randy Hardy. pole is the producer,” he says. “If I’m ments in technology.” He provided an example of what a down here at the flour mill or the feed After harvest, food has to be trans- farmer might get for his commodity. mill and my costs go up, I just pass that ported, packaged, washed, processed, Say you pay $1 at a fast-food estab- on. But if I’m the producer and my costs and then transported again. That trans- lishment for 8 ounces of French fries. go up, I don’t get to pass that on. I’m still portation process involves a lot of trucks That equals out to $200 for 100 pounds at the mercy of the market.” but also boats, trains and sometimes of spuds. The grower will get about $8 The first step of the food supply chain airplanes. of that. That’s actually only 4 percent of is, of course, the farm or ranch. That’s That whole process, which involves what that 100 pounds of potatoes ulti- also the most important step and one storage for some commodities, such as mately sold for. where technology plays a major role. potatoes and onions, involves lots of Kress says it’s important to know that “I don’t think most people realize how manpower. farmers are price takers and not price sophisticated food production is these “There are a lot of hoops the farmer makers. days,” says Idaho Wheat Commission has to go through to grow the type of “Farmers are the only ones in the Executive Director Casey Chumrau. quality food that American customers entire supply chain that don’t set their “Farmers and ranchers today rely heavily have become accustomed to and get it to prices,” he says. on science and technology to produce the store,” Gross says. When it comes to divvying up the av- the healthiest food in the most efficient “We are very fortunate in this country erage food dollar, agricultural producers and sustainable manner.” to find so much variety at the grocery are at the back of the line, says JC Man- Total food production in the U.S. store and rarely question the quality or agement Co. President Clark Johnston, continues to increase despite decreas- freshness of our food,” Chumrau says. n who contracts with Idaho Farm Bureau ing acres dedicated to agriculture, she Federation to help farmers and ranchers adds. “At the same time, growers have February 2022 | 13
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Photo by Sean Ellis The global milk supply is tight and farm-level milk prices are up, but so are production costs for Idaho dairy operators. Milk supply tight and farm- level prices up, along with costs By Sean Ellis as Class III milk. “The amount of risk in the business any Idaho Farm Bureau Federation Class III milk futures are currently in the more makes it tough for those smaller $19-20 per hundredweight (cwt) range for all operations to stick around for another year,” POCATELLO – The global milk supply is of 2022. Naerebout said. contracting and, from a price perspective, The break-even price for most of Idaho’s Dairy is Idaho’s No. 1 agricultural com- that bodes well for Idaho’s dairy industry, dairy operations has been about $16 to $16.50 modity when it comes to total farm cash which has a large impact on the state’s overall per cwt for the past several years. receipts, which is what the farmer gets economy. But higher production costs have pushed directly for their commodity. Idaho dairies “Global supply is contracting. Just about that break-even level into the $18.50-$19 per bring in about $3 billion per year in farm cash everywhere, we’re seeing milk supply con- cwt range, said Idaho Dairymen’s Association receipts. tracting,” Dustin Winston, a dairy financial Executive Director Rick Naerebout. When the hay, corn and other crops needed analyst based in Idaho, said Dec. 16 during He said the higher cost of feed has been the to feed cows is factored in, the dairy indus- a University of Idaho Ag Outlook Seminar main factor behind higher production costs try’s total economic impact on the state is presentation. for dairy operations, and higher labor costs considerable. “Demand is in fact pretty strong. As supply haven’t helped. According to the U.S. Dairy Export Coun- becomes limited, there (is) a bidding war for Despite the higher production costs, most cil, Idaho’s dairy industry has a $9.1 billion … that supply that is out there,” he said. Idaho dairies did make a profit during 2021, economic impact on the state, contributes 5.7 Winston said milk prices paid to dairy Naerebout said. percent to Idaho’s total gross domestic prod- operators will likely continue to be strong “Prices were above break-even for Idaho uct, and supports more than $400 million in through at least June. dairy operations in 2021 and they are making wages. But while a tight milk supply means higher some money,” he said. “I expect the average While global milk supply is expected to farm-level milk prices for Idaho dairies, the Idaho dairy operation will have had a decent continue to contract, production costs are cost of production for those operations has year in 2021.” expected to continue to rise. also risen substantially over the past year. But, he added, the uncertainty surrounding “The cost of milk production is rising and That makes it tough for dairies to eke out a production costs, the COVID situation, labor will likely rise again (in 2022),” Winston profit even with higher milk prices. availability and other factors have added a said. n Idaho ranks No. 3 in the nation in total tremendous amount of risk to the business milk production and most of Idaho’s milk is and that has resulted in a number of smaller used to produce cheese. That milk is known dairies being purchased by larger operations. February 2022 | 15
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Photos by Sean Ellis Potatoes are planted in a Bingham County field in spring 2021. Farm-level potato prices are up but the cost of production for farmers is also up, significantly. Potato prices up for farmers but so are input costs By Sean Ellis time in 2021. dropped, from 420 million cwt in 2020 to Idaho Farm Bureau Federation “That’s the lowest drop in decades,” 413 million cwt in 2021. POCATELLO – The global potato mar- Eborn said. “Prices are extremely strong Total 2021 potato production in Canada ket is tight on supply and farm-level spud and not behaving like they normally have is forecast to be 535 million cwt, up from prices for Idaho farmers are up substan- in the past.” 524 million cwt in 2020. tially. Idaho is the nation’s top potato-produc- But certain factors, including a pota- But so are farm input costs and, with ing state and Gem State farmers produce to quarantine in the Canadian province prices for other Idaho crops also up signifi- about a third of the nation’s total spud of Prince Edward Island, has somewhat cantly, many Idaho potato farmers may be supply. restricted the flow of Canadian potatoes to faced with some tough planting decisions The price increase is partly due to processors in the United States. in 2022. Idaho producing a smaller spud crop in Total potato production in the European Russet potato prices for Idaho farmers 2021 compared with 2020. Idaho farmers Union fell 7 percent, from 863 million cwt typically drop significantly from August to planted 315,000 acres of potatoes in 2021, in 2020 to 803 million cwt in 2021. October but that didn’t happen this year, compared with 300,000 in 2020, but total “Globally, there is a (potato) supply situa- Ben Eborn, president of North American statewide production decreased 2 percent tion that is rather tight,” Eborn said. Potato Market News, said during a Univer- in 2021 to 132 million hundredweight. That has driven farm-level potato prices sity of Idaho Ag Outlook Seminar presen- That drop in Idaho potato production up. But cost of production for spud farmers tation Dec. 16. was due largely to the drought conditions is also soaring. Idaho Russet prices dropped $8 per and unusually high summer temperatures “Operating costs for most growers are hundredweight from August to October in 2021, which sharply reduced average probably up 20 percent, minimum, and in 2019, $12 per cwt during that period in yields. maybe as much as 30 percent,” Eborn said. 2020, but only $3 per cwt during that same Total U.S. potato production also Continued on page 18 February 2022 | 17
Potatoes are harvested in a Bingham County field in this Idaho Farm Bureau Federation file photo. Farm-level potato prices are up but the cost of production for farmers is also up, significantly. Continued from page 17 what to plant in 2022. in (potato) acres and I don’t see a big de- Rising costs add tremendous risk to But he doesn’t think there will be a major crease.” n farmers, he said. “How do you plan when change in Idaho potato acres, either up or those prices jump like that in a year?” down. That could present Idaho potato farmers “There will be some thinking like that with some tough choices when it comes to going on but I don’t think acres will change “The question on everybody’s deciding what to plant in 2022, Eborn said. much,” he said. “I don’t see a big swing in mind right now is how many Yes, potato prices are extremely strong acres either way.” compared to where they were a year ago Randy Hardy, an Oakley farmer who potatoes are we going to plant and that could encourage potato growers to plant more spuds, he said. grows potatoes for the fresh market, agrees with that assessment. in Idaho in the coming year? But potatoes cost a lot to grow compared He pointed out that Idaho potato acres How much are we going to in- with many other crops grown on a large have stayed pretty constant over the past crease when the cost of produc- scale in Idaho and the price for some of decade – in the 300,000 to 320,000 range. those crops is way up. For example, wheat There is a lot of competition price-wise tion has skyrocketed like this?” prices are up 61 percent compared to a year from other crops right now and soaring ago. input costs will make decision-making dif- – Ben Eborn, North American Prices for barley, hay and corn are also ficult for the 2022 growing season, he said. Potato Market News up. But, he added, “I don’t see a big increase “There is still a lot of uncertainly in the potato market, and other ag markets as well,” Eborn said. “It makes decision mak- ing difficult for the coming year.” “The question on everybody’s mind right now is how many potatoes are we going to plant in Idaho in the coming year?” he said. “How much are we going to increase when the cost of production has skyrocketed like this?” Idaho Farm Bureau Federation President Bryan Searle, a potato farmer from Shelley, said planning next year’s crop on higher input costs is difficult and some potato growers may have a tough time deciding 18 | Idaho Farm Bureau Quarterly
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Photos by Chris Schnepf Precommercial thinning is a golden opportunity to set a young forest on the course you desire. Thinning small trees By Chris Schnepf to a mill. It is also a task that a landowner can University of Idaho Precommercial thinning (some- do a little bit at a time. times referred to as “PCT”) focuses on Species selection is one of the most Of all the different treatments that smaller trees. Precommercial thinnings important dimensions of precommer- can be made to meet forest owner are made early in the life of a stand, cial thinning. Natural regeneration of objectives, thinning is one of the most between 10 and 20 years old, depending tree seedlings often happens in Idaho, powerful. on the initial density of the trees and but not always the way we want. Part of thinning’s utility comes from how rapidly they are growing. Even if you plant the ideal species reducing stand density, which lowers The term “precommercial” thinning for a site, you may get additional trees tree moisture stress, making trees more does not necessarily mean the primary seeded in from nearby trees (sometimes resilient in the face of drought, forest objective is managing for ultimate com- referred to as “ingrowth”) that change insects, and fire. mercial harvest. You may be managing your species composition. But one of the most valuable dimen- primarily for other objectives, including Ingrown species may not a be a sions of thinning in Idaho is the oppor- wildlife, aesthetics, grazing, or other problem if they are desired for the site; tunity to adjust species composition, values and still do some precommercial who wouldn’t like to have a little more setting the stand’s future trajectory for thinning. western redcedar in their forest? the next 40 years or more. The term simply refers to the size of But naturally seeded trees can be Thinning is also a way to improve trees being cut (small). problematic if they are not suited to forest genetics (if you will be relying on Precommercial thinning is a fairly the site over the long term, or if they those trees eventually to seed in new approachable practice for many fam- suppress the most desired species for trees). ily forest owners because it does not the site. There are two broad types of thinning involve setting up a timber sale and For example, sites that have been – precommercial thinning and com- the smaller sapling trees are easier for harvested and re-planted due to root mercial thinning. Commercial thinning a novice to cut down, though there are disease issues often have lots of Doug- removes trees large enough to be taken still safety considerations. las-fir and grand fir in the surrounding 22 | Idaho Farm Bureau Quarterly
forest that seed into a plantation. Reducing stand density is an Such Douglas-fir and grand fir will important part of all thin- likely be killed by root diseases, but not ning. It is not uncommon on before suppressing species which are ul- sites with lodgepole pine seed timately more resilient to root diseases. sources to have 3,000 or more Precommercial thinning is an excellent saplings per acre. opportunity for early course correction. For perspective, we typically The first step to any thinning effort is plant no more than 400 trees to assess stand density. per acre. If such “doghair” For tree planting and precommercial thickets are left untreated, thinning, we usually estimate stand their growth often stagnates, density by counting trees in sample and they are degraded by bark plots. Plots can be many different sizes, beetles or fire. but in extension programs on PCT, we Lodgepole pine can be one commonly use 1/100th acre circular of our better growing tree spe- plots, which makes the math very easy. cies if density is managed. You simply count the trees in the plot Timing of precommercial and multiply by 100. thinning varies by the species You can purchase a variety of tapes and the initial stand density. to measure out plots, but if you are just There is some value in letting doing plots for precommercial thinning, trees compete for a while cut a rope to 11’10“ – a circle made to identify which trees are using that rope as a radius would be a exhibiting the best growth 100th acre plot. potential. Some foresters use 250th acre plots But a good rule of thumb and cut a wooden stick 7’5” to measure is to thin before the average plot radii (in this case, the number of crown ratios get below 40%. Lodgepole pine can be a great species if stand trees counted would be multiplied by The crown ratio is the portion density is managed. 250). Smaller plots like this are easier of a tree’s height that has green greater exposure to weather hazards. for one person to measure. branches coming from it. University of Idaho Extension offers Generally, measure at least one plot If you have a 10-foot-tall tree and the field days every summer on thinning for every 10 acres or at least three plots top 7 feet has green branches, that tree and pruning where you can learn more through the whole site if you have less would have a 70% crown ratio. Some about the science, techniques, and than 10 acres. If you have a stand that would focus on 30% crown ratios, and tools for thinning. Check UI Extension is very mixed in terms of species and that is not wrong, but if you wait till Forestry calendar (www.uidaho.edu/ density, more plots are probably a good then, you do not have as many years to extension/forestry/programs ) and click idea. complete the treatment. on “Strengthening Forest Stewardship Ultimately, the more plots you Crown ratio estimates should be Skills” for dates and locations. measure, the more accurate your stand made on the inside of the stand and not Precommercial thinning is an essen- estimate will be. Setting the plots up with trees next to a road or meadow – tial silvicultural tool. By asserting some on a regularly spaced grid system will those trees will have larger crown ratios management early in the life of a stand help you map out where the density is than the interior stand trees due to the or regeneration patches, landowners highest and lowest. light they get from those openings. can save themselves a lot of headaches For more information, see “Ba- Stands with small or poorly devel- later in the life of the forest. sic Forest Inventory Techniques for oped crowns and long, slender stems In my next column, we will discuss Family Forest Owners” (PNW 630) from waiting too long to thin are prone practical tools and techniques for get- available at (https://pubs.extension. to windthrow or breakage from heavy ting precommercial thinning done. n wsu.edu/basic-forest-inventory-tech- wind or snowstorms, so it is important niques-for-family-forest-owners ). to get the thinning done before they Chris Schnepf is an area extension Don’t just count trees. When counting reach this state. educator in forestry for the University trees, record their species, to give you a If a stand already has very small of Idaho in Bonner, Boundary, Koote- fuller picture of what you have to work crown ratios, you may be able to do nai and Benewah counties. He can be with. Plots may reveal that you had light thinnings in stages, to build larger reached at cschnepf@uidaho.edu. more of some species than you imag- crowns and root systems and develop ined. more stem taper so trees can withstand February 2022 | 23
24 | Idaho Farm Bureau Quarterly
Frozen Soil Powered Auger Kit Part #206.10 The Frozen Soil Powered Auger Kit was designed to core through those dreaded frozen soil conditions. The Core Barrel Auger is equipped with carbide cutting teeth that are specifically designed to chew through tough frozen soil and pull relatively undisturbed cores inside the barrel. Pulling ice samples just got easier! Kit should be used with a SDS- Max shank hammer drill, drill sold separately. Mission Statement The Idaho Farm Bureau is a voluntary grassroots organization dedicated to strengthening agriculture and protecting the rights, values, and property of our member families and neighbors. IFBF Policy Policy statements were developed over the past 82 years by Idaho Farm Bureau volunteer members. The policy development process takes place at the county, district and state levels throughout the year. The policy comes from our grassroots members and is then used to guide the Idaho Farm Bureau's lobbying, public relations and educational efforts each year. You can find our 2022 policy statements at Idahofb.org/policy-books February 2022 | 25
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