Minnesota
Dramatic drop in Minnesota farm incomes
Last year was a rough year for Minnesota farmers, as lower prices for corn, soybeans and other commodities and challenging profitability for the dairy and hog sectors led to a drastic reduction in farm income.
Despite difficult growing conditions across much of the state, crop yields were close to average. But the prices for corn, soybeans, milk and pork fell during the year, causing an economic storm for many producers in Minnesota. On average, the farmers who submitted data to the analysis in 2023 averaged a net profit of 8 cents for every dollar in gross income, reflecting the high cost and thin margins of farming operations.
After three years of strong profits, the overall median net farm income for Minnesota farms fell to $44,719 in 2023, marking a return to the challenging levels faced from 2013 to 2019. This was down more than 76% from the previous year. The average Minnesota farm saw a reduction in working capital, stagnant retained earnings and limited profitability for the year.
“There was much uncertainty going into the 2023 production year for Minnesota farms. The sharp decline from 2022 profitability levels was not unexpected. Many farms were anticipating decreased commodity prices along with sticky input costs for the year,” says Pauline Van Nurden, Extension economist with the University of Minnesota’s Center for Farm Financial Management. “Most producers were in a good financial spot to handle a down year. The question now is how long these reduced profits will last.”
This analysis includes 2,335 participants in the Minnesota State Farm Business Management programs and 113 members of the Southwest Farm Business Management Association. Participating farmers represent about 10% of Minnesota’s farms with gross incomes over $250,000 annually.
The data are collected by farm management educators and housed in the FINBIN database at U-MN.
Persistently high expenses hamper real gains
The median net income for crop farms was $45,760, more than an 80% drop from the previous year. Crop sale prices during the year were similar to those seen in 2022, but the lower profit stems from higher expenses and reduced inventory values at the end of the year. In other words, crops are likely to be sold in 2024 for a lower price. When considering cash flow projections for the coming year, the majority of farm operations anticipate negative margins.
Low prices and high costs also affected many Minnesota livestock producers. Milk prices declined by 21%; dairy farm profits were down 73% from the previous year. Pork prices declined 16%, with a median net pork farm income loss of more than $32,000.
Beef production was the bright spot last year. Beef producers experienced higher median net farm income as a group. These producers capitalized on the record beef prices offered in 2023.
“Hog producers experienced the most challenging year on record, even worse than 1998. Thankfully, these producers had a strong financial foundation to lean on as they managed through the year. These producers lost nearly $30 per pig sold, which led to losing a half million dollars in working capital and a net worth loss year over year. Thankfully, pork prices have improved in early 2024, easing some challenges for these producers,” says Garen Paulson, lead field staff for the Southwest MN Farm Business Management Association.
“The Dairy Margin Coverage program provided needed support for dairy producers in 2023. This government program assisted producers as they managed through high feed costs and low milk prices,” says Nate Converse, farm business management instructor at Central Lakes College. “Without this program, dairy producers would have experienced a net farm income loss in 2023 as well. The coming year will be challenging too, given milk price futures and limited DMC program payments expected.”
Concern for 2024 prospects
There is much worry related to 2024 farm profitability in Minnesota. Farmers and consumers share many concerns, including inflation, rising interest rates and general economic uncertainty. The global market situation is also worrisome for Minnesota producers. Much of the future concern relates to decreased commodity prices, compressed margins and interest rate increases.
The latest USDA Farm Income Forecast echoes this concern. USDA’s February 2024 forecast predicts inflation adjusted net farm income will decrease more than 25% in 2024. If realized, this net farm income level would be well below the previous 20-year average.
“Input costs are typically ‘sticky’ for farmers. Commodity prices correct quickly, while input costs tend to stay high after they’ve increased. Over the last few years, machinery costs, land rent and fertilizer have all increased. These expenses don’t look like they will come down as fast as commodity prices falling,” Paulson says. “I encourage all farms to know their cost of production and focus on risk management planning for the coming year.”
New programming
In addition to data for traditional commodity agriculture, several FINBIN initiatives added in recent years help address emerging questions in Minnesota agriculture.
New programming includes a beginning farmer program to help with farm transitions. Decision tools are being developed to help address questions related to climate and agriculture. Also added are analyses of value-added farm enterprises, which include secondary enterprises for the farm such as crop custom work operations, trucking enterprises and food sales.
“We are excited to dig into the information related to value-added farm enterprises. The reality today is many farms diversify their operations with ‘side-gig’ enterprises. Minnesota farmers are entrepreneurial, especially those just starting to farm. Value-added enterprises allow the farm to diversify income streams and tap into more niche markets. We hope to learn more about the impact of these value-added enterprises and how they add value to many farm operations,” says Tina LeBrun of the Minnesota State Southern Agricultural Center of Excellence.
Source: University of Minnesota Extension
Minnesota
2 woman killed in Christmas Eve wreck in SW Minnesota
(FOX 9) – Two women are dead after a crash involving a minivan and a semi-truck in southwest Minnesota on Christmas Eve.
Deadly Pipestone County crash
What we know:
Minnesota State Patrol responded around 1:45 p.m. on Wednesday to a crash along Highway 75 at 21st Street in Elmer Township in Pipestone County. The intersection is about eight miles east of the South Dakota border and 30 miles northeast of Sioux Falls. Google Maps images show a rural intersection surrounded by farmland with a power substation on the northwest corner. There are stop signs located on 21st Street.
According to an incident report from state patrol, the semi involved was headed northbound on Highway 75 when it collided with the minivan, which was traveling westbound on 21st Street.
Local perspective:
Troopers say both the driver of the minivan, 71-year-old Patricia Ann Struiksma, and a passenger, 69-year-old Donna Jean Vanthof, were killed in the crash.
The driver of the semi was not hurt.
What we don’t know:
Further details about the circumstances leading up to the crash were not disclosed. However, troopers said alcohol was not believed to be a factor in the crash. Investigators also noted that road conditions were wet at the time of the collision.
Minnesota
Central Minnesota man honors
On Dec. 9, 1965, “A Charlie Brown Christmas” debuted on CBS, and it became an instant classic. Lee Jenkins’ home is proof that the show is still a hit six decades later.
“It’s just something about these people,” Jenkins said. “Talking about health, talking about wealth, talking about friendship and everything.”
A long-time Staples, Minnesota, businessman, Jenkins didn’t have any woodworking skills when he retired.
But in 2017, at the age of 74, he decided to pick up a jigsaw and build something that made him happy. Snoopy came to mind, and after he created Charlie Brown’s beloved beagle, he realized he was hooked.
“It just evolved from that to more characters every year until this year,” Jenkins said. “There are 18 in the main gang and Marcie is number 11.”
Each of his creations is made out of particleboard. Jenkins first sketches an image and then goes to work.
“I’m not an artist, this is all freehand out of here,” Jenkins said.
From the sketching to the cutting to the sanding to the painting, it takes anywhere from 10 to 20 hours for Jenkins to build one character.
“Probably the hardest one I had to make was Pig-Pen,” Jenkins said.
He now has enough for an entire holiday scene, complete with Charlie Brown’s scrawny tree just like in the show.
There’s Linus with his blanket, Schroeder with his piano and Charlie right in the middle of it all.
“His famous saying was ‘Good Grief,’” said Jenkins. “And it is fun. It really is neat for the family, and that’s what I’ve got here is a family.”
Jennifer Krippner was as surprised as anyone when her dad began this holiday hobby in his mid-70s, but she believes this isn’t just a tribute to Peanuts creator and St. Paul native Charles Schulz.
“I think what it says to a lot of us is passion, creativity, doesn’t retire,” Krippner said.
She believes her dad is honoring a more innocent time. Back when a phrase like “good grief” meant good things.
“It’s a classic show and the Peanuts, I don’t think, are just characters. They are memories for us, and I think that brings back a lot of nostalgia,” Krippner said.
Each of Jenkins’ Peanuts creations is about 3 feet high and they are on display in front of his house, four miles north of Staples. He typically builds one or two each holiday season.
Minnesota
Minnesota officials warn federal agents that swapping license plates ‘will not be tolerated’
State officials sent a formal warning to the Department of Homeland Security on Tuesday in response to reports of federal agents illegally meddling with Minnesota-issued license plates on unmarked vehicles.
The cease-and-desist letter from Driver and Vehicle Services Director Pong Xiong describes allegations of DHS agents swapping license plates between vehicles and placing identical license plates on two separate vehicles.
Video: ICE agents in Twin Cities stop US citizen, demand proof of citizenship
“The above-described conduct violates Minnesota law and will not be tolerated,” Xiong wrote to Homeland Security Secretary Kristi Noem. “To be clear, Minnesota law prohibits anyone, including the driver of an unmarked law enforcement vehicle, from displaying a Minnesota license plate other than the license plate assigned to that vehicle by DVS.”
If federal agents don’t abide by Minnesota law, DVS could reconsider federal agents’ access to Minnesota’s undercover license plate program.
“Historically, DHS has used this program to protect the anonymity of law enforcement personnel
performing sensitive work in Minnesota while adhering to state law and providing a mechanism for
accountability in the event an unmarked vehicle is misused,” Xiong wrote.
Further violations could result in DVS revoking their vehicle registrations and seizing their license plates, the DVS director warned.
Read the full letter from DVS below.
Gov. Tim Walz also addressed the alleged conduct by U.S. Immigration and Customs Enforcement (ICE) officers during a news conference on Tuesday.
“These guys are doing what criminals do: They’re putting license plates on vehicles they’re not registered to. They’re renting vehicles and putting on fake plates,” Walz said, adding that such a practice makes it more difficult for local and state law enforcement to know whether a vehicle is involved in official duties.
‘It’s putting people at risk’: Walz, Twin Cities leaders denounce ICE immigration operations
5 EYEWITNESS NEWS has reached out to DHS and ICE for comment and is awaiting a response.
This isn’t the first time federal immigration agents have gotten in hot water with state officials over alleged license plate violations.
Earlier this month, Illinois Secretary of State Alexi Giannoulias announced that his office had revoked a rental car’s license plate when investigators found ICE agents swapped its plates. He also issued a warning to all rental car companies that they can be held liable if federal agents are caught tampering with the license plates assigned to their vehicles.
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