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Deep divide

MOORHEAD, Minn. MarkAskegaard is one of scores offarmers south of Fargo, N.D.,who are using the courts andpolitical influence against a$1.8 billion Red River flood di-version project they say willforever change their lives, landand towns.A fourth-generation farmer

south of Moorhead, Minn.,Askegaard, 53, says hed ratherbe thinking only about plantingand marketing crops this timeof year, but instead hes preoc-cupied with the epic issue.In Askegaards mind, the di-

version needlessly underminesthe productivity of thousandsof acres of the Red River Val-leys best and most valuablefarmland, and is moving aheaddespite no solid solutions forcrop insurance in that area.

n Some farmers say the Red River flooddiversion will harm their livelihoods,

project supporters disagree

Stories and Photosby MMiikkkkeell PPaatteess

GG Mark Askegaard, 53, and his daughter, Beth, 23, farm south of Moorhead, Minn., near Comstock. They contend thecurrent Fargo-Moorhead Diversion Plan isnt the most cost-effective option to mitigate flooding and say it will needlesslyforce them out of organic farming.DIVERSION: See Page 9

Monday, March 17, 2014 / AGWEEK

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AGWEEK / Monday, March 17, 2014 PAGE 3

Stucky named RanchingWoman of the Year

n Glenna Stucky of Avon was hon-ored as Ranching Woman of theYear by the Montana StockgrowersAssociation, during their 129th An-nual Convention and Trade Show.Stucky was excited to win theaward. Stucky was born and raisedin Bozeman, Mont. Her youth con-sisted of 4-H, sewing, cooking andplaying the piano for dances withher dad. Her 4-H years led her toher husband Earl Stucky. In theirearly years of marriage, Glennaworked at the state 4-H office whileshe and Earl were 4-H leaders. Theyraised five kids on the ranch onceknown as Flying D. While Earl wasaway at cow camp, Glenna wasoften home alone with the kids, tak-ing care of all the ranch chores, plusher chickens, milk cows and har-vesting a bountiful garden. Her out-side passions were passed down toher kids and grandkids. Glennahelped start the Powell County Cat-tlewomen and is a current memberof the district and state Cattle-women associations. On the ranch,Glenna still keeps books, feeds thehired men and takes care of her fivemilk cows and a dozen or more or-phan calves. An encounter with ahostile heifer during calving, thatlaid her up for a time, has notslowed her down, and she still takesher checks during that busy season.Caking heifers with her daughterevery spring morning and makingsure the shelves are stocked withvaccines and medical supplies forthe ranch are still some of her dailyduties.

MCIA presents awardsn The Minnesota Crop Improve-ment Association honored severalindividuals during its 2014 AnnualMeeting. Stephen Dahl of Roseauwas recognized with the Achieve-ment in Crop Improvement Award.A longtime MCIA member, he hasproduced certified seed of Kentuckybluegrass, perennial ryegrass, timo-

thy and small grains. Dahl is astrong supporter of the University ofMinnesota, having served in an ad-visory capacity and on various spe-cial committees. He has providedleadership to the Minnesota CanolaCouncil, the U.S. Canola Associa-tion and the American Oil SeedCoalition. He also served on theBoard of Directors for MCIA and theNorthwest Regional Partnership.Retired from farming, Dahl serves asbusiness secretary for RL Growers,a grower group producing and mar-keting turf grass seed products. CalSpronk of Edgerton and Tim Back-man of Herman received PremierSeedsman Awards. Spronk hasbeen an MCIA member for 34 years.The Spronk family produces andprocesses soybeans, barley and oatseed. An active member of the agri-cultural community, Spronk servesas a director for the Minnesota Soy-bean Growers Association and thePipestone Soil and Water Conserva-tion District. He has also served onthe MCIA board and was a memberof the Minnesota Department ofAgriculture Seed Program AdvisoryGroup. Backman continues a familytradition of producing certified seed,which began with his father in thelate 1950s. Today. Tim and his wifeMarylyn operate Backman Seeds,producing and conditioning soy-bean and wheat seed. They recentlyadded a state-of-the-art seed treat-ment facility to their operation. Heserved six years on the MCIA boardof directors including a term asboard chairman. Marv Zutz of RedLake Falls received the HonoraryPremier Seedsman Award. Zutz hasdedicated 38 years to the barley,wheat and turf seed industry. Hecurrently serves as the executive di-rector for the Minnesota BarleyGrowers Association and the Min-nesota Turf Seed Council. He hasbeen instrumental in securing fund-ing and support for barley and turfgrass research in Minnesota.

AgweekWireReports

MARCH 17 Sustaining the Legacy Estate Planning and Farm Transi-tions Conference, Watertown andRapid City, S.D. Information: HeatherGessner at 605-782-3290 or [email protected] 18-19 Western Corn BeltPrecision Ag Conference, Sioux FallsConvention Center (S.D.). Information:www.igrow.org.MARCH 20 Truck-Weight Educa-tion and Outreach, Stark CountyShop, Dickinson, N.D. Information:Denise Brown at 701-328-9856 [email protected] 24 Sustaining the Legacy Estate Planning and Farm Transi-tions Conference, Watertown andRapid City, S.D. Information: HeatherGessner at 605-782-3290 or [email protected] 26 Truck-Weight Educa-tion and Outreach, Cass County Shop,West Fargo, N.D. Information: DeniseBrown at 701-328-9856 or [email protected] 27-28 65th Flax Institute,Fargo, N.D. Information: www.ndsu.nodak.edu/flaxinst/register or contactLisa at 701-231-7122MARCH 31 Sustaining the Legacy Estate Planning and Farm Transi-tions Conference, Watertown and

Rapid City, S.D. Information: HeatherGessner at 605-782-3290 or [email protected] 2 SowBridge Session: PainManagement for Sows, teleconfer-ence. Information: Bob Thaler at 605-688-5435 or [email protected] 7 SowBridge Session: AreYou Prepared for a Third Party Audit?teleconference. Information: BobThaler at 605-688-5435 or [email protected] 4 SowBridge Session: Im-portance of Educating Others aboutPork Production, teleconference. In-formation: Bob Thaler at 605-688-5435 or [email protected] 2 SowBridge Session: Prac-tices to Avoid Antibiotic Residue inCull Sows, teleconference. Informa-tion: Bob Thaler at 605-688-5435 [email protected]. 6 SowBridge Session: Advo-cating Worker Safety on Farms, tele-conference. Information: Bob Thaler at605-688-5435 or [email protected]. 22-23 Potato Days Festival,Barnesville, Minn. Information:Theresa Olson at 800-525-4901 [email protected].

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AR

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OPINION

PUBLISHED BY THEGRAND FORKS HERALD

PublisherMike Jacobs

Agweek EditorLisa Gibson

[email protected](701) 787-6753

Copy EditorsSarah Dykowski

[email protected](701) 780-1245Bianca Bina


ReportersMikkel Pates


Jonathan [email protected]

(701) 780-1111

Sales directorJohn Fetsch(701) 212-1026

[email protected]

National/LocalSalesRepresentative

WWoorrtthhiinnggttoonnMegan Prins(507) 360-1793

[email protected]

Sales RepresentativesGGrraanndd FFoorrkkss

Dave Ebertowski(701) 780-1235

[email protected]

Jeanine Halvorson(701) 780-1232

[email protected]

Bryan Shinn(701) 261-6350

[email protected]

DDiicckkiinnssoonnFayette Heidecker

(800) [email protected]: (701) 225-0518

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AAllll ccoonntteennttss ccooppyyrriigghhtt 22001144Agweek is a registered trademark

Farm bill delivers for NDn Bipartisan

effort was keyBy Heidi Heitkamp

Back in the fallof 2011, Iwas get-ting ready tomakeabigdeci-sion.After 12years of privatelife, Iwas tryingto figure outhowI couldbest servethe state I love.As I traveledNorthDakota, Ikept hearing thesame thing:Folkswere frustratedthat politicians inWashington,D.C., couldntwork together tomoveour country forward.Thiswas aparticular concern

for ourhardworking farmers andranchers. Theywerent asking formuch.Thesearemenandwomenwhoput close to amilliondollarsinto the groundeach year,with thehopes of simplymaking adecentincome toprovide for their fami-

lies.All theywantedwas somecer-tainty out ofWashington, so theycouldmakeplans, borrowmoneyfrom thebankandget onwithwhat they are really goodatfeeding theworld.But folks inCongressdidnt

seem tounderstandhow impor-tant agriculturewhich supports25percent ofNorthDakotas jobs is andcouldnt get a farmbilldone. The inability ofmembers towork together inabipartisanway,to compromise for the commongoodwasmy tippingpoint. It iswhy Idecided to seek this office,andwhy, sincebecomingaU.S.senator,my toppriority hasbeento craft a farmbill thatworks forNorthDakotans andget it signedinto law.While Iwasproud toachieve this goal, that is notwhyIm so satisfied. I amproudbe-causewewereable towork inabipartisan fashion to give ourfarmers and ranchers the cer-tainty theydeserveandNorthDakotas biggest economicdriverthe stability it needs.This farmbill is a victory for our

state onmany levels. First,wewereable tomodernize crop in-suranceNorthDakota farmers

toppriority inaway thatmakessure they can survive indifficulttimes.Additionally,wewereableto create a farmprogram that pro-vides support for growerswhentheyneed it themost.Wealso in-vested inapermanent livestockdisaster programsoour rancherswhoproduce foodenjoyedbymillions around theworldarenot forcedout of businessbydisas-trous events beyond their control,suchas the severe snowstorm thathit theDakotas lastOctober.All ofthese steps taken in the farmbillput our farmers and ranchers in aposition to tackle the risks associ-atedwithproductionagriculture,so they can continue toprovidethe lowest cost, highest qualityfood in thehistory of theworld.The law isnot just aboost for

agricultureproducers in our state.It alsomakes critical investmentsin somanyother crucial parts ofNorthDakotas economy.For ex-ample,wemadeahistoric biofu-els investments,whichwill helpsupportNorthDakotas alreadyboomingethanol industry.Andwepushed to include support forfarmerswhohave lost land to thefloodwaters ofDevilsLakeand

help to control flooding in theRedRiverValley, and crucial researchat institutions likeNorthDakotaStateUniversity.As I spent countless hourswork-

ing to convinceother senatorsparticularly those fromstates thatdont havemuch farmactivityabout the importanceof a farmbill, I explainedwhy it is not justgood forNorthDakotabut for theentire country. Oneofmy top goalswas to craft a bill that reduces ourdeficit. I amproud to say that byreformingantiquated farmpolicy,wewill reduce thedeficit bymorethan $23billion.At the same time,the farmbillwill support 16mil-lion jobs across thenation.With the farmbill, weworked

together,Republicans andDemoc-rats, tomoveour country forward.Iwill continue to take this ap-proach todebates on themanyother issuesweare facing. That iswhatNorthDakotanswant, andthat iswhy Iwanted this job.Editors note:Heitkamp is the jun-

iorU.S. Senator fromNorthDakotaandamember of theNorthDakotaDemocratic-NonpartisanLeagueParty.

Heitkamp

Meeks letter misses the marknEthanol helps

economy,environment

By Ashwin Raman

I disagreed with the March 10commentary, Ethanol mandatehurts environment, by AnnetteMeeks of the Freedom Founda-tion of Minnesota.HowMeeks came to the con-

clusion that, Since its incep-tion, the ethanol mandate hadmade neither economic nor en-vironmental sense, was un-clear. A new report by ABFEconomics, a firm that providesconsulting services to the ag andbiofuel industries indicates theethanol industry contributed$44.03 billion to Americas econ-omy in 2013 and employed, di-rectly and indirectly, close to400,000 Americans.The Minnesota Department of

Agriculture estimates theethanol industry contributes$5.03 billion to the states econ-omy and supports more than12,000 jobs.Ethanol also has helped sup-

press the price of gasoline. A2012 study by Iowa State Univer-sitys Center for Agriculture andRural Development concluded

that ethanol reduced the priceof gasoline in 2011 by $1.09 pergallon nationally. In the Midwestalone, CARD found gas priceswere reduced $1.69 per gallon.As for the environment, Ar-

gonne National Laboratory, anonprofit research lab operatedby the University of Chicago forthe U.S. Department of Energy,said in a 2012 study that corn-based ethanol reduced green-house gas emissions by 29 to 57percent depending on the en-ergy efficiency of the plant, oran average of 44 percent.Using Argonne National Labo-

ratorys Greenhouse Gases, Reg-ulated Emissions and EnergyUse in Transportation model,also known as the GREETmodel, the Renewable Fuels As-sociation concluded that the 13.2billion gallons of ethanol pro-duced in 2012 reduced green-house gas emissions fromon-the-road vehicles by 33.4 mil-lion tons. Thats the equivalentof removing 5.2 million cars andpickups from the road for a year.Meeks cited a story by the As-

sociated Press that claimedAmerican farmers last yearplanted 15 million more acresof corn than before theethanol boom. In actuality,farmers increased acreage in re-sponse to drought-ravaged corn

supplies in 2011 and 2012. Infact, as detailed in U.S. Depart-ment of Agricultures WorldAgricultural Supply and De-mand Estimates released in Jan-uary, the amount of bushels usedfor ethanol decreased in 2012 to'13 (the marketing year for cornbegins Sept. 1).Meeks said 5 million acres of

land set aside for conversionmore than Yellowstone, Ever-glades and Yosemite nationalparks combined have van-ished under Obamas watch.The truth is a little different.Acreage enrolled under theConservation Reserve Program,has fallen under PresidentBarack Obama but as a result ofa lower cap on CRP acreage, asstipulated in the 2008 farm bill,which set it at 32 million acresfrom 39.2 million previously. Assuch, in 2009, the CRP acreagewas at 33.72 million and droppedto 31.29 million in 2010 and 31.12million in 2011. In 2012, it was29.5 million.Meeks added that, Histori-

cally, farmers have used most ofthe domestic crop to feed live-stock. However, in the past threeyears, the majority of Americascorn was diverted into fuel.This statement is incorrect. Re-ferring back to USDAs data, 4.67billion bushels of corn, or 39

percent of a total supply of 11.93billion bushels, was used forethanol and coproducts. Thesefigures refute the idea that cornproduction for ethanol super-sedes production for livestockfeed.Moreover, a third of every

bushel of corn used for ethanolproduction is used to producedistillers dried grains, which isa high-protein animal feed.Meeks also said ethanol

raised food prices, but a studyby ABF Economics last yearpointed to the strong link be-tween food and crude oil prices.Indeed, one only has to look atreadily available data by theU.S. Energy Information Serviceand the UNs World Food Organ-ization to see the correlation be-tween crude oil and food prices.High gasoline prices affect thecost of farming and transporta-tion.The bottom line is that

ethanol has contributed posi-tively to our economy, both stateand national, and it has createdjobs, reduced greenhouse gasesand saved us money at thepump.Editors note: Raman is the com-

munications and education coordi-nator for the Minnesota Bio-FuelsAssociation based in Minneapolis.

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OPINION

THE VIEWS EXPRESSED ON THE OPINION PAGES ARE NOT NECESSARILY THOSE OF AGWEEKWed like to hear from you. Email letters to the editor to [email protected] or mail to Lisa Gibson, PO Box 6008, Grand Forks, ND 58206-6008.

By Tom BuisTheRenewableFuel Standardhasbeen

so successful that theoil industry nowseesethanol as amajor threat to its bottomline.Unfortunately,AnnetteMeeks opin-ionpiece, Ethanolmandatehurts envi-ronment, recently published inAgweek,shamelessly parrotedmanyof theoil in-dustrys false claimsabout ethanol and re-peatedly cites skewed facts fromanAssociatedPress story that canonlybede-scribedas a hatchet jobagainst theethanol industry.Meeks op-edwas riddledwith errors. It

erroneously claimed that 5millionacresof land set aside for conservationhavevanished.Actually, asU.S.AgricultureSecretaryTomVilsack recently noted, thetotal acreageof conservationprogramshas increasedmore than 70percent in re-cent years tomore than 350millionacres.While landuse change in theU.S. is a com-plexanddynamicprocess, SecretaryVil-sackemphasized that itwasunlikely thatsignificant amounts of acreage set asidefor conservation in 2012went into cornproduction in 2013.Meeks also cited rising foodprices, and

erroneously shifted theblameonto the

backof the ethanol industry. In fact, a re-centWorldBank studyoutlinedhowcrudeoil prices are responsible for 50percent ofthe increase in foodprices since 2004ayearbefore theRFSwasevenenacted.Furthermore, this analysis hasbeenvali-datedby theU.S.Department ofAgricul-tureandcountless other objectiveeconomic studies.Hereswhats indisputable, however:

clean, renewablebiofuels arehelping cutourdangerousdependenceon foreignoilandcreating significant economic oppor-tunities hereat home.Andbecause

ethanol costs about 60 cents per gallon lessthan gasoline, it savesus allmoneyat thepump.Its time to set the record straight onBig

Oils cynical scheme to stifleAmerican in-novationandprotect their ownprofitsnomatter the costs to our environment,our economyandournational security.Ethanol andotherbiofuels aremaking ourcountry stronger, safer andmoreprosper-ous anddeserve the steadfast support ofour leaders inWashington.Editors note: Buis is theCEOofGrowth

Energy.

RFS reality check n Ethanol deserves support

Biofuel concerns arent justifiedn Minn. can

handle the switchBy Robert Moffitt

Bemidjis school busesperformanceduring thiswinters harshweather raisedsomeconcerns about biodiesel, and theMinnesotas plans to increase the requiredbiodiesel blend from the current 5percent

blend (B5) to 10percent (B10) this summer.First, the state lawclearly specifies that

B10will be soldonlyduring thewarm-weathermonths. In thewinter, its back tothe sameB5blend that virtually all dieselvehiclesusedduring this record-breakingcoldwinterwithout problem. So, any con-cerns that biodieselmight gel inwintertemperatures areunfounded.Another concern raisedwasabout bac-

terial growth in fuel storage tanks. Thisisnt just aMinnesotaproblem; its a prob-lem inmanyother states. It has nothing to

dowithbiodiesel ordiesel fuel theproblem iswater.In 2006, the federal government re-

quiredall diesel fuel to beultra-low sulfurto reduce the risk of acid rain.But, thatsulfur actedas anantibiotic agent in thefuel, and its removal caused someunantic-ipated issueswithmicrobegrowthwhenthe tanks containedenoughwater for thebacteria to grow.Again, this happens forbothbiodiesel blends and traditionaldiesel fuels. Fortunately, there are somesimple solutions andpractices to elimi-

nate this problem.Minnesota literallywrote thebookon

handling and storingbiodiesel in coldweather.Wehave the technical expertiseand real-world experience tomake theB5toB10 transition smoothand freeofdrama. Switching to anadvancedbiofuelthat is cleaner-burning, locally producedandperforms just aswell as petroleumdiesel is awin for allMinnesotans.Editors note: This opinionappearedMarch

3 in theBemidji (Minn.) Pioneer.

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REGIONALNEWS

On the front linesn RRV marketerwas in Ukraineduring protests

By Mikkel PatesAgweek Staff Writer

FARGO, N.D. A Red River Valleygrain bin equipment marketing execu-tive was in Kiev, Ukraine, during thedeadly riots in mid-February. MartinTubby says hell be going back as earlyas April to support his friends andclients, despite political unrest.

Tubby, 45, of ruralClimax, Minn., is anEnglish native and di-rector of Internationalsales for AgriDry LLCof Edon, Ohio, whichmarkets stored cropprotection equipmentand products. Tubbysays hes been inUkraine 12 times sinceFebruary 2012. Typi-

cally, he meets with clients in Odessa orKiev, the oldest capital city in Centraland Eastern Europe.Protests started in late November

2013, when Ukrainian President ViktorYanukovych announced the governmentwould abandon an agreement tostrengthen European Union ties. Threeprotesters had died by the time Tubbyvisited in early February. Tubby stayedwhere he usually does, in a hotel nearKievs Boryspil International Airporton the eastern outskirts of town.

Scary yet peacefulSergey Palyeugnuk, one of Tubbys

longtime friends and clients, asked ifhe wanted to go downtown to see therevolution.Thats what he called it, Tubby says.

I said, Only if youre comfortablegoing there. So Tubby and Palyeugnukwere in the square at about 6:30 p.m. onFeb. 12. The two walked througharound the entrance of the famousDnipro Hotel near Maidan Square.Tubby was greeted by the specter of

destruction burned-out minibuses,tractor tires, bricks, sticks and stones,garbage cans and oil drums.The protesters lived in tents, set up

on a six-lane street, sometimes acrossthe street from high-end retail stores.Riot police were camped out beyondwhere the burning was done. Tubby wastold many of the protesters were fromrural areas, not Kiev.It was like being in a haunted house,

where things are dark. Pitch black, hesays. I didnt want to attract too muchattention. It was the scariest, saddest,

yet most peaceful place Ive been to, ifthat makes any sense, Tubby says. Itwas sad like a funeral and scary like aroller coaster.Tubby flew out of Ukraine Feb. 18

the day 26 people died and hundredswere injured.

Selling, inquiringTubby sells grain spreaders, mechan-

ical devices placed in the tops of steelbins, or silos as the Europeans callthem. The rotating spider-like devicesuse gravity and centrifugal force tospread grain so broken kernels, graindust and other trash dont concentratein the middle of a bin.The technology we have is not com-

plicated, but its new to them, he says.Regardless of how old Ukraine is, theyhave only had grain bins the past 10 to15 years. Small to medium farmers towhom we market in the U.S. are as yetunaware of the advantages of grain binstorage, or have a lack of funds to pur-chase them, or dont know how to fullyuse them. Theres some mistrust, or an-ticipation that were trying to sell themsomething that they dont need, when infact they need it.Some Ukrainians are concerned

about regulations the European style ofgovernance under Russian control

might imply. Farmers there often burnstraw in the fields, a practice that mostEuropean governments have banned.

Unusual RRV figureTubby grew up about 100 miles north-

east of London near Norwich, England.He worked on Drayton Farms where hisfather and two grandfathers drove trac-tors before him. The farm is connectedto a construction company and pro-duced sugar beets, wheat, potatoes, bar-ley and milk.In 1986, Tubby came to the University

of Minnesota-Crookston as an exchangestudent. He returned to England andlater replaced his retiring father as atractor driver and became assistantfarmmanager of Drayton Farms. In2001, he returned to Crookston to finishhis two- and four-year degrees.Out of school, Tubby worked for two

years on a crop farm for Tom Grabanskiof Grafton, N.D., a farmer whose opera-tions ended in a tangle of lawsuits andbankruptcies from North Dakota toTexas.When Grabanski built a grain eleva-

tor facility in Grafton, Tubby was hiredaway as a sales representative byNorthern Grain Equipment of WestFargo, N.D., a steel bin dealer. In the

past, Tubby met Ukrainians, mostlythrough contacts from Amity Technol-ogy in Fargo.In early 2008, everybody was going

gangbusters, selling the gold rush,Tubby recalls, of the Russia/Ukrainemarket. Tubby traveled to Ukraine forthe first time and hosted Sergey and hisbrothers at the Big Iron trade show inWest Fargo.In May 2009, Tubby left NGE before

that companys collapse. He took a re-gional sales post for Sioux Steel ofSioux Falls, S.D., and then went to workfor himself as Atlas Grain Systems, be-fore adding the AgriDry LLC productlines.Despite the troubles, Tubby says he

enjoys the new contacts hes been ableto make there. He expects to stick withhis customers, whatever complicationsarise.These guys want me back in June for

another outdoor farm show, Tubbysays. My own personal opinion is Idont want to run from this situation be-cause these guys will do anything forme. If I turn my back and dont do anybusiness there, Im going to losefriends, lose respect. Its up to me tofind ways for these guys to continue todo business with me.How I do that I dont know.

GG Martin Tubby of Climax, Minn., stands in front of protester tents in downtown Kiev, Ukraine, on Feb. 12, the weekbefore the deadly Feb. 18 protests that killed 26 and wounded hundreds. Tubby markets grain storage products andhas been to Ukraine a dozen times in the past two years.

Submitted by Martin Tubby

Tubby


It is billed as the best, most cost-ef-fective way of protecting the existingFargo-Moorhead and Cass County prop-erty from flooding, but he and othercritics say theyre suffering the effectsof a city simply wanting to develop landin a natural flood plain.Rodger D. Olson dis-

agrees. Hes a Leonard,N.D., farmer, Red RiverDiversion Authoritymember and co-chairwith Askegaard on anagricultural subcommit-tee for the project. Hesays the groups areworking toward crop in-surance solutions andthe priorities for theproject are effectiveness and safety.While his own farm isnt affected byflooding or diversion impacts, some ofhis familys land is his children wentto school in Kindred, N.D., which wouldfeel the effects.I look at it as flood protection of al-

most 200,000 people, Olson says. Whatis that value? I look at it as protectionfor a hospital I might need, 40 milesaway. I dont get a direct benefit here atmy home. I have an indirect benefitfrom whats protected there.

Details of the planAskegaards great-grandfather came

from Norway in 1890 and settled aroundHickson, N.D. After a big flood in 1897,the family moved across the river nearComstock, Minn. Askegaard has man-aged the farm since 1982 and startedtransitioning to organic in 1994. Hisdaughter, Beth, also is in the operation.The Askegaards are among a handful offarmers in a seven-mile radius whoraise some 5,500 acres of certified or-ganic grains.Since the record flood of 40.8 feet in

Fargo in 2009, Askegaard says the proj-ect has developed in ways he nevercould have imagined.Were sitting above the 500-year

flood plain on the Minnesota side here.We never got flooded after that,Askegaard says. If the diversion goesthrough as planned, his 900 acres wouldbe within the red box, a term forareas that will see more than 1 foot offloodwater.The original diversion was dis-

cussed as coming onto the Minnesotaside, and would have been farthernorth at the Red River and Wild RiceRiver confluence. Rep. Collin Peterson,D-Minn., and others protested that be-cause Minnesotas topography was 5.5feet higher, and Minnesota communi-ties werent suffering as much as Fargoand Cass County. That was scuttled inthe spring of 2010.The Red River Diversion Authority

contracted with the U.S. Army Corps ofEngineers, which settled on new plans

for diversions on the North Dakota side,moving the impacts upstream, or to thesouth (the Red River flows north). Theplan called for the project to retainwater in a specified area, where the im-pact would be more predictable. Therewould be a control structure, a 13-foot-tall dam on the river, and tie-backlevies. When the diversion is used, itcould impact 50,000 acres upstream(south) from Fargo with between 1 inchand 8.5 feet of water.Askegaards place, 10 miles south of

Moorhead, theoretically would have 3feet of water, a ring dike and some landwould be lost to the diversion dike. Hesays there are no assurances on how

multi-peril crop insurance will be han-dled in shallower areas flooded by thediversion. Standard crop insurancecant be used when the damage is man-made. In addition, the Askegaardscrops wouldnt be certified organicafter being submerged in floodwater.

Compensation plansIn 2013, the Diversion Authority un-

veiled plans to compensate businessesand communities for impacts from theproject. The plan would involve buy-outs and flowage easement compen-sations on the 32,000 acres of farmlandthat would be hit with more than 1 footof water.

Olson has been a key figure in the dis-cussion because of his position on sev-eral boards. To name just a few: CassCounty Joint Water Resource Districtboard and the Red River Diversion Au-thority, as well as its subcommittees onoutreach, land management and agri-culture. While Olson says hes aware ofthe unhappiness of farmers affected bythe project, he says the multi-peril cropinsurance coverage concern is one ofthe important things on his mind.The Diversion Authority has con-

tracted with Watts & Associates ofBillings, Mont., to find crop insurancesolutions. About 20,000 acres would see1 foot of water or less, outside the red

COVER STORY

Continued from Page 1DIVERSION

Greater than 3 feet

Richland County

Cass County

Clay County

Wilkin County

WildRiceRiver

RedRiver

WolvertonCreek

The Fargo-Moorhead Diversion Authority identifies farmland south ofFargo as being within the red box an area that would get more than 1 footof extra water in a 100-year flood with the diversion in place. The red line on themap indicates the area where federal rules would require mitigationcompensation for landowners.

0 to 1 feet 1 to 3 feet

Source: U.S. Army Corps of Engineers

Structures

Olson

DIVERSION: See Page 10


box area of the most concern.The possibilities for a solu-

tion arent solid enough for theMnDak Upstream Coalition,which was formed in May 2010.Scott Hendrickson, a farmerfrom Colfax, N.D., and formerchairman of the North DakotaSoybean Growers, is the chair-man.

3-foot enhancementHendrickson says the group

wants to protect Fargo andCass Countys infrastructure,but only at a reasonable cost,and without inflicting harmelsewhere. He says farmersneed answers and think theproject is draconian.Project opponents point to

the Halstad Upstream Reten-tion Study, released in lateJanuary 2014 by the Red RiverBasin Commission and fundedby the Diversion Authority. Itshowed that a distributedstorage project, involving upto 96 retention areas on up-stream tributaries, could cutflood volumes on the RedRiver mainstem by more than20 percent.Askegaard says that cut

would reduce Fargo-Moor-heads river levels by up to 3feet in a 100-year event, if otherinternal levee protectionswere in place. The peak RedRiver crest was 40.8 feet inFargo in the record flood of2009, so the distributed storageoption coupled with internalprotections could cut itbelow 38 feet, Askegaard rea-sons. Thats significant becauseFargo will be protected up to

42.5 feet and Moorhead will beat 44 feet with another $6 mil-lion of investment.The Diversion Authority, on

its web page, labels this criti-cism as misinformation.Engineering models indicate

it would take 400,000 to 600,000acre feet of retention to re-place the 215,000 acre feet inthe recommendation.Olson says the retention

areas have value to farmersjust below them, but less valuethan diversion opponentsthink. He notes that if the im-poundments were built, mostof them would have to be inRichland and Wilkin counties,where opposition is the great-est.

Juggernaut rolls onWhile opponents question

the rationale and effects, thediversion project continues to

grind forward with supportfrom the North Dakota con-gressional delegation and thestate legislature. Another $6.3million in federal appropria-tion was announced for CorpsEngineers funding, bringingthe total to $40 million. Min-nesotas delegation has favoredflood protection for the metro-politan area, but less directly.Minnesotas Rep. Peterson

has made it no secret that helikes upland storage.Frankly, were over-build-

ing and spending a bunch ofmoney that we dont need tospend, he told a meeting of di-version opponents on Jan. 23,in Comstock. He says impound-ment projects are gainingfavor, citing the successfulNorth Ottawa Project, 25 milessouth of Breckenridge, Minn.In August 2013, the MnDak

Upstream Coalition and the

Richland-Wilkin Joint PowersAuthority filed a lawsuit inWilkin County, suing the Corpsof Engineers and contendingthe diversion plan violatesMinnesota state law that pro-hibits blocking an outlet or aditch. Some $250,000 has beenraised for legal costs. A hear-ing will be held April 3 and 4in Duluth before a state magis-trate.

No cooling rhetoricTim Fox, states attorney for

Wilkin County and the city ofBreckenridge, Minn., who ad-vises the Richland-Wilkin JointPowers Authority, says Fargo ismorally corrupt because itallows houses to be built in anatural flood plain, dispersingwater to much larger areas

COVER STORY

Continued from Page 9

DIVERSION

FARGO, N.D. Farm-related oppo-nents to the Diversion Authority plansay theyre uncomfortable with uncer-tainties about how crop insurance willbe handled on some 50,000 acres thatcould incur collateral damage in aFargo-Moorhead flood fight.The Diversion Authority says there

is only a 10 percent chance of the di-version being used in any given year,with an average of 5.5 days of inunda-tion when it is used. It says the 100-year inundation with the project inplace is 50,760 acres, of which 32,602would already flood under existingconditions, without a project in place.Rodger D. Olson, a member of the

Diversion Authority and co-chairmanof its subcommittee on agriculture,speaks confidently.There is a very strong commitment to

figure this out, he says, but there are noguarantees yet on crop insurance.The authority has contracted Watts

& Associates of Billings, Mont., tostudy crop insurance alternatives.Among the alternatives so far are sup-plemental riders to crop insurancepolicies, or self-insure.The risk policy will cover prevent-

plant scenarios where project opera-tion would prohibit planting, theDiversion Authority declares on itswebsite, emphasizing it will be equiv-alent crop insurance coverage as grow-ers have today. Any federal programwould have to be approved by the RiskManagement Agency.Among the possibilities: the author-

ity could find a private insurer to in-sure farmers; it could self-insure; or itcould use flowage easements only. Onehypothetical option is that the Diver-sion Authority could purchase all theland in the staging area and put aneasement on it and resell it.

Socially, that option wouldnt fly to take land away and put it back onthe market, Olson says.He says the solution must be more

than flowage easements.Thats not good enough for us, he

says, adding that the whole DiversionAuthority supports this crop insurancething, and are aware that it only cov-ers landowners and does nothing forthe operator that rents that land.Thats what were working at protect-ing.Scott Hendrickson, chairman of the

MnDak Upstream Coalition and afarmer near Walcott, N.D., says if farm-land cant get adequate crop insur-ance, landowners will be forced totake less for cash rent or some kind offlexible rent deal. He says the self-in-surance would have been used in 2009,2010 and 2013.Farmers are worried because the

project is moving forward even thoughthere are no guarantees about pre-vent-plant policies.Proven yields could go down, which

translates to the value of the land.Larger, outside operators might beable to come in and outbid the localowners.The value of land is going to de-

crease, Hendrickson says, unless theDiversion Authority comes up withproper compensation. Flowage ease-ment values have been discussed at$800 per acre, for a one-time payment,but that would depend on farmlandvalues at the time the easement is ac-quired, Olson says.

Double penaltyMark Askegaard, a Moorhead or-

ganic farmer, is a member of theMnDak Upstream Coalition and also isa co-chair of the Diversion Authoritys

advisory agricultural subcommittee.He says organic growers are doubly-penalized. It takes three years of farm-ing without synthetic fertilizers andcrop pesticides to be certified as or-ganic. Organic crops typically bring intwice or three times what conventionalcrops do.If youre in a water staging area,

youre exposed to genetically modified(GM) seed and GM plant residue. Itsfloating around in a 50,000-acre pool,so its going to come onto your land. Ideither have to farm conventionally ormove, Askegaard says. He says if helost certification because of the use ofa diversion, it wouldnt be worth it togo through the transition again. Cropsgrown organically can be rejected forpremiums if they include any GM seedor chemical residue.Olson acknowledges that buyouts

might be the only reasonable solutionfor organic producers.Among the other impacts for farm-

ers:n Transportation Each county

road or major highway would have abridge over the diversion, maybe twoto four miles long. Farms fields willbe cut up into pieces, with parts on ei-ther side.n Infrastructure Township roads

could be covered by water from timeto time, as they can be in any flood.If its handled like watershed dis-

tricts projects, then yes, it would pro-vide maintenance on those gravelroads, including gravel and riprap,Olson says. The maintenance plan isntset in stone. If we cause damage, weneed to fix it, he says. He notes thatbackup of water in a retention areawill be slower than in nature.nDevelopment, tax bases Some

school districts would see their land

base devalued and expansion opportu-nities limited. The communities ofOxbow, Bakke and Hickson in NorthDakota are set to be surrounded byring dikes, financed by state money.Olson says theDiversionAuthoritys

ag committee is pressing for deeper ringdikes for farm operators wanting to stayon the land. Bins and shops could beprotected by ring dikes, he says, but ac-cess during a flood could be a limitingfactor in allowing ring dikes.n Sediment, erosion Farmers in

the retention pool will deal withclean-up after a flood the movementof stumps, branches and other residue,plugging legal drains and field drains.Talk of the project hiring contractorsto remove debris has swirled, but op-ponents are wary. Farmers in water-shed drainage projects worry aboutbeing assessed costs for cleanouts oflegal drains.n Buildings The project is promis-

ing buyouts or ring dikes for farms in-side the red box, where water levelsare expected to exceed 1 foot. Buyoutsare automatic for more than 3 feet.Fox says many existing structures notin ring dikes would have to be re-moved. No new buildings would be al-lowed where there is a flowageeasement.nAgribusiness Curt Bjertness,

manager of the C-WValley Co-op, basedinWolverton, Minn., says the diversionwould influence farmers not to fall-fer-tilize and would concentrate input ap-plication to the spring. It could cutyields, affecting his companys grainhandling and other income.You throw in relocating farm head-

quarters, ring-diking, he says. Thereare so many aspects and whateverhappens to my producers happens tomy business.

Searching for solutionsDIVERSION: See Page 12

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("'#$'%&! AFC;=$FA #0FC ?6=7#CF"- )@#7F+D6C' A#7


that dont flood naturally.He likens it to one farmer

wanting to build grain binsdraining water onto anotherfarm, just because the neighborhad fewer grain bins.Its okay for me to do it, be-

cause hes going to have twograin bins and Im going to have50, Fox says. I should be ableto flood him because I want tobe bigger.The diversions flowage ease-

ments allow the land to beflooded at any time and for anyamount of time, Fox says. Hecontends the project will blocknumerous ditches, which willspread water for miles.Its the blockage of those

outlets thats going to have dra-matic impact onmany, manyacres far beyond what the scopeof this project is, Fox says,adding that it will have a nega-tive impact on grain elevators,fertilizer plants, implementdealers and the economies as awhole.Perry Miller, a businessman,

a former farmer and RichlandCounty commissioner for thepast 11 years, is chairman of the

Richland-Wilkin Joint PowersAuthority. The JPA includesabout 40 taxing entities (town-ships, fire departments and thelike) working to fight off nega-tive effects of the diversionproject.Miller contends an easement

for water flowage is a much big-

ger deal than a standard, 100-foot-wide easement for a gasline.Because of these flowage

easements, youre done build-ing on entire sections of land,permanently, he says. Theseentire sections of land becomea building dead zone.

The Diversion Authority saysthe water staging area will notbe a dead zone. Farming willcontinue in it, and it will onlyoperate under flood eventslarger than a 10-year event.Miller says his constituents

tell him to keep fighting tochange the project. The farmerslive with crop insurance uncer-tainty, and the Kindred SchoolDistrict has sacrificed its futuregrowth on tens of thousands ofacres so Fargo can develop in aflood plain, Miller says. FargoSchool district built the $45 mil-lion Davies High School in themiddle of a flood plain with novote. Construction started inthe fall of 2009 and its dedica-tion was held Aug. 21, 2011.Its like, Were going to win,

and youre going to lose. Heresa check, you can sit down andbe quiet. Thats the attitude,Miller says. This thing is a wolfof a development plan, dis-guised in the sheeps clothing offlood control.

A reasonable costThe City of Fargo says its fol-

lowed all federal floodplainmanagement and flood insur-ance program rules and hasactually adopted rules for de-velopment that exceed what isrequired under federal and

state law.On its website, the Diversion

Authority acknowledges onlythat a small amount of futuredevelopment was included inthe economic analysis, consis-tent with Corps policy, based oncurrent growth rates; all futuredevelopment was assumed tobe constructed above the 100-year floodplain, and repre-sents a small portion of theeconomic benefits.Fargo Mayor Dennis Walaker,

a member of the Diversion Au-thority, says a small, vocal mi-nority inWilkin and Richlandcounties are basically trying tostop the project. He says thesoils in Fargo wont allow pro-tection to the 44-foot level thatis needed. He says the city haspurchased 500 to 600 homes andhas another 100 to go. If thedamweremoved farther north,it would take another 250homes. He says Fargo needssomething akin toWinnipeg,Manitoba, which has 700-yearprotection.As for the crop insurance

concerns, Walaker relies onOlson and the ag committee tocome up with solution recom-mendations.Well do whatever we have

to, he says.

COVER STORY

Continued from Page 10

DIVERSION

GG Perry Miller, a Richland County commissioner fromWahpeton, N.D., says the Fargo diversion project makesmore than 30,000 acres of prime Red River Valley croplandineligible for crop insurance compensation anytime thediversion is used, undermining value.

n Other insolvency-related casesmove forward


FARGO, N.D.CHS Inc., onMarch 7withdrew a challenge of theNorthDakota Public Service Commissions as-sessment of its claim against cash graindeliveries to the insolvent AndersonSeed Inc.Midwest Cooperative, a CHS Inc.-re-

lated elevator in Pierre, S.D., is one ofthe claimants against Anderson Seed.Anderson Seedwas based inMentor,Minn., but had grain receiving stations inDurbin and Selz, in North Dakota. CHSclaimed it had delivered $740,140.52 ingrain to theNorth Dakota locations, butthe PSC had approved only $45,512 ofthat claim.CHS attorney Jon Brakke in Fargo says

the company had reviewed additionalrecords and determined it couldnt tiethe additional quantities to NorthDakota, so dropped its objection.Cass County District JudgeWickham

Corwin on Feb. 25 ruled on a cash settle-ment of $965,000 that would cover 43 per-cent of the $2.23million in cash claims.Separate credit-sale contract holderswill receive 80 percent of valid claims, ora net of about $640,000, from a state in-demnity fund. Randy Christmann, theNorth Dakota Public Service Commis-sioner with the grain license portfolio,says if there are no appeals, the PSC canstart paying farmers bymid-June.Separately, CHS continues a $1.5 mil-

lion lawsuit against Anderson Seed own-ers RonAnderson and his daughter,Stephanie Anderson. That case recentlywas delayed from anApril 2014 courtdate in Polk County District Court inCrookston, Minn., to January 2015.Brakke says withdrawing the objectioninNorth Dakota has no bearing on theMinnesota case.In other grain company insolvency-re-

latedmatters:nOnMarch 14, the PSC got approval

fromBurleigh County District Judge GailHagerty to initiate credit-sale contractpayments from a state indemnity fund tofarmers whod delivered grain to Falkirk(N.D.) Farmers Elevator Co. There are$279,000 in valid credit-sale claims, so re-imbursements of 80 percent, or $223,200,can be paid, roughly on the same sched-ule as the Anderson Seed case.Separately, St. Hilaire (Minn.) Seed Co.

has a federal lawsuit pending againstFalkirk Farmers Elevator for $1.7 mil-lion, relating to dry edible beans. St. Hi-laire claims it purchased warehousereceipts for edible beans fromFalkirk,but didnt receive the beans.At the time of the Falkirk insolvency,

St. Hilaire Seedwas owned by the sameAnderson family that separately ownedAnderson Seed. LegumexWalker ofWin-

nipeg, Manitoba, purchased all of the as-sets of St. Hilaire Seed and some of theassets of Anderson Seed.Christmann says if St. Hilaire pre-

vails in its federal court claims, itwould file those against a trust ac-count, which could include a $380,000bond, if needed. It isnt clear what

other assets the claims might comefrom.nThePSConMarch 17will askMorton

CountyDistrict JudgeDonaldL. JorgensoninMandan to approveapaymentplan in-volving the 2011 insolvencyofMitchellFeedofHendrum,Minn. Thereare $1mil-lion in valid claims for paymentbut only a

$70,000bond,Christmann says.Thats a sad casebecause itmeans just

a 7percentpayout, Christmann says. Inthe twoyearsbefore the insolvency,MitchellFeedpurchased sunflowers fromclaimants in the communities ofTowner,Sherwood,Mylo, Crosby andGlenburn,amongothers.

Regionalnews

CHS drops objection in Anderson Seed case

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n Agency will helpdispurse higher-grade product

By Jerry HagstromSpecial to Agweek

SANTAFE,N.M.Higher grade lev-els of ethanol need to be available out-side theMidwest and theU.S. Depart-ment of Agriculturewill helpmake thatpossible, Agriculture Secretary TomVil-sack said.

The key is get more E15, E20, E30and E85 available nationwide, Vilsacktold the National Farmers Union in aquestion-and-answer session after aspeech in Santa Fe, N.M.He noted that most of the gas stations

with pumps that consumers can use tobuy the higher grades are in Midwest-

ern states. It cant be centrally locatedin the Midwest, he said. It has to beall over.If higher grades of ethanol are avail-

able more broadly, consumers willcome to support it, Vilsack said.The petroleum industry succeeded in

convincing Congress to forbid USDAfrom using the Rural Energy for Amer-ica Program to install blender pumps,Vilsack said, but he pledged to use otherUSDA rural development programssuch as the business and industry loanprogram to install them. Tomake the ap-plication process easier, he said, he willallow projects to aggregate blenderpumps at a number of locations.Vilsack also noted that USDA will

promote ethanol exports.The secretary repeated previous

statements that he does not know whatdecision the Environmental ProtectionAgency will make on its proposal to re-duce the volumetric requirements forbiofuels under the Renewable FuelStandard.Vilsack noted that when Congress cre-

ated the Renewable Fuel Standard,there was an assumption that U.S. gaso-line usage would continue to rise. Butwhen EPAwasmaking its proposal forthis years volumetric requirements, itwas looking at the fact that Americanswere not using as much gasoline be-cause the economy was not as strong andvehicles have becomemore efficient.We have a new reality, Vilsack said,

but he also noted that things havetipped up a bit in terms of gasoline use.He said he has made sure EPA Ad-

ministrator Gina McCarthy is aware ofthe increase in gasoline use and EPA isalso taking the thousands of commentsit has received under advisement.But at the end of the day regardless

of what happens with that standard,weve got to be more aggressive in thisindustry in terms of expanding more toget those higher blends, he said.Vilsack also said ethanol leaders

need to reassure people that higher lev-els of ethanol in their fuel wont endan-ger their vehicles or blow up theirmotors and get the rest of the worldmore excited about renewable fuelsand push back harder on food versusfuel.The secretary was unrelenting in his

criticism of the oil industry for its lob-bying to encourage Congress to cut backor repeal the RFS.We have looked for ways to partner

with someone as powerful as Big Oil. Ihave chosen the Defense Department,which he noted has battle ships thatconstantly need energy. USDA, henoted, is working with the Navy on itsplans to buy blended fuel while re-searchers try to develop aviation fuel.We cant let this industry wither

under the attack of Big Oil, Vilsacksaid. We need to move forward regard-less of what EPA does.

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n Grand Forks,ND, conference

promotes soil health

By Jonathan KnutsonAgweek Staff Writer

GRANDFORKS,N.D. SpeakersataGrandForks,N.D.,conferencehavesomesuggestionsonhowfarmersandrancherscankeeptheirprecioussoilhealthyandpro-ductive.

The secondannualGrandForksSoilHealthWorkshoponMarch11drewabout100 agriculturalists,most fromnortheastNorthDakota andnorthwestMinnesota.Agroupof local, county, state and federal or-ganizations sponsored theevent.Wewant tohelpoperators and land-

lords learnmoreaboutwhats going on in

their soil, saidPaulBjorg,with theGrandForks office of theNaturalResourcesCon-servationService, anagency of theU.S.Department ofAgriculture andoneof theconference sponsors.Speakers lookedat issues ranging from

saline vs. sodic soil to the role of holisticmanagementpractices.Saline soil is amajor concern in theRed

RiverValley of easternNorthDakota andwesternMinnesota.Roughly $150millionin annual revenue is lost becauseof salinesoil, according to informationpresentedatthe conference.Toooften, however, farmers andothers

in agriculturemistakenly lumpsaline soils(oneswith excess soluble salts)with sodicsoils (oneswith excess sodium), saidTomDeSutter, anassociateprofessor of soil sci-enceatNorthDakotaStateUniversity anda speaker at theGrandForks conference.Sometimes, oneorboth are referred to

alkali,when in fact saline-affected soilor sodium-affected soil ismoredescrip-tive.Diagnosing theproblemproperly isthere toomuch salt, toomuch sodium, orboth, in the soil? is essential to dealingwith it,DeSutter said.Sodium-affected soil is amajor concern

inparts of theUpperMidwest, but not theRedRiverValley,DeSutter said.Both saline soil and sodic soil can hurt

plant growth. Salts decreasewateruptakeandcanbe toxic toplants. Sodic soils usu-ally haveadense, root-restricting layerthat hurts fertility.Salinitycanbetackled inseveralways,

includingdrainageandplantingcrops, suchasbarley, that toleratesalt relativelywell.Nonetheless, Theres nomagicpotion

inmanaging saline soil,DeSutter said.Thesoil foodweb is vital in soilhealth,

saidHalWeiser, aJamestown,N.D-basedsoilhealthspecialistwith theNRCSandaspeakerat theGrandForksconference.The termrefers to all living organisms

in the soil, everything from the tiniest one-celledbacteria to earthworms, insects andplants. Theorganismseat, growandmovethrough the soil, helping to keep it healthy.Weiser andother speakers stressed the

importanceof keeping adiversemixofplants on the soil, enhancing the soil foodweband soil health.Thatdiversity should include cover

crops, or crops grownprimarily to improvesoil health, not for harvest and sale.Cover crops are a good startingpoint

for farmers andothers interested in im-proving soil health,Bjorg said.Usingcovercropsoften ismoreattrac-

tive toproducerswithboth livestockandcrops than it is to farmerswhoraiseonlycrops, saidJerryDoan,owner-operatorofBlackLegRanchnearMcKenzie,N.D., andaspeakerat theGrandForksconference.His ranch includesboth cow-calf and

farming.Cover crops canprovide forage for live-

stock, enhancing their value,Doan said.Its easier tomove your (production)

systemwhenyouhave livestock, he said.But cover crops also canhelp cut ex-

penses and increase yields of crops grownforharvest and sale, he said.AgweeksMarch24coverstorywilltakea

closerlookatsoilhealthandthegrowingat-tentionitsdrawingacrosstheUpperMidwest.

REGIONALNEWS

Keeping soil healthy

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REGIONALNEWS

n Ag industry reportsno relief in sight


FARGO, N.D. Agricultural ship-pers in the region are still reportingdelays, as railroads have continued tofeel the effects of cold weather.In a March 14 weekly podcast up-

date, Burlington Northern Santa FeRailway vice president John Miller re-ported a slightly worsening late carsreport from the March 6 podcast, andno updated information on shuttletrains, except that velocity of ag trainmiles per day had increased 14 per-cent.Ag trains holding from last Friday

to this morning are down 32 percent,Miller said in his March 14 report.But he says the company has a long

way to go toward achieving stronger,more consistent velocity metrics.Specifically, he noted:n North Dakota showed 7,305 late

cars, up 9 percent from the March 6 re-port. The average for late days was22.4, up from 20.8 and 18.6 days theprevious two weeks, respectively.n South Dakota reported 1,284 late

cars, down 8 percent from March 6. Av-erage days increased to 21.8, comparedwith 19 days and 18.6 days in the previ-ous two weeks.nMontana had 3,176 late cars, up 9

percent from March 6. Average dayslate was 23.2, up from 20.5 days and18.8 in the two previous weeks.nMinnesota reported 1,309 late

cars, down 5 percent from the previousweek. The cars averaged 23 days late,compared with 20.5 days and 18.8 daysin the previous two weeks.The March 14 report (recently

changed from Thursday to Fridayweekly release dates) did not indicatea new figure for shuttle service.Similarly, Rep. Kevin Cramer, R-

N.D., released a March 12 report fromBNSF that showed 200 sugar cars hadbeen spotted in North Dakota duringthe week ending March 8, a decline ofabout 70 cars from the previous week.The dwell time in the north region in-creased by 2 percent from the previousweek, and train speed declined 1.9percent.In his March 6 report, Miller said the

companys 110-car shuttle trains werereporting an average of 2.2 cycles permonth nationwide. Turns to the PacificNorthwest destinations were reportedat two per month per shuttle.

No grain shipmentimprovementDelane Thom, regional manager for

Southwest Grain, a division of CHSInc. in Taylor, N.D., says hes seen noimprovement on grain shipments. Thenormal expectation is that a shuttletrain will be able to make three trips amonth to the Pacific Northwest, Thomsays. When advised of the two turns tothose ports Thom says, We havent ex-perienced anything quite that good.Thom says hes seen reports from the

congressional delegation, indicatingimprovement by June. Things have tohappen fast to make that happen, hesays.He says road trucking restrictions

were implemented March 12 in hispart of the state.That affects us on the grain we

transfer from substation locations intoour main terminals, he says. The re-strictions require farmers to quit ship-ping or ship partial loads, making thetransportation uneconomical.As we sit on Friday, March 14, all of

our terminals are sitting full, and havebeen that way for several days, Thomsays. The terminal in New Salem we havent dumped a truck all thisweek.Thom says hes encouraged by the

railroads recent discussions of invest-ments in the rail system, but he sayshe doesnt see how increasing mainte-nance and capital expenditures however needed can help the veloc-ity matter.I dont see any changes in the oper-

ating plan that will help the ag sectorat this point, Thom says.While oil and coal do not have expi-

ration dates, grain which cant be de-livered can rot in a bin over time,Cramer says. With every passing day,these stranded assets lose value andour producers risk losing market sharein key export countries and domesticmarkets, as well. I appreciate the ef-forts BNSF says it is making, but I amnot hearing of any relief from NorthDakota farmers who are depending onimmediate improvements.

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REGIONALNEWS

n Plants are lookingbetter than

expected despitebrutal weather


FARGO, N.D. At least one factorcan be considered an early indicationthat North Dakotas winter wheat cropmight be surviving better than somepeople expected, considering theharsh winter, according to Blake Van-der Vorst, senior agronomist withDucks Unlimited.DU has been advocating for the past

15 years for farmers to increase theuse of winter-planted crops to help fos-ter waterfowl nesting habitat. VanderVorst says a group of samples hes col-lected have survived almost 100 per-cent so far in a wide area in westernNorth Dakota.Vander Vorst pulled four winter

wheat samples in a drive from Velva toButte and to Wilton. On Feb. 12, heconducted a test in which the plantsare placed in a bag that is filled withcarbon dioxide. The plants aretrimmed to encourage growth, whichcan be seen within a few hours.Our Wilton research site is in

canola stubble and had good snowcover and (showed) 100 percent sur-vival, he says, adding they had greenleaves emerging the next day.The other three fields Vander Vorst

checked were prevent-plant fieldswith the samples taken from dryknobs or wind-swept slopes that allhad desiccated top growth and likelyopen to the winter elements, he says.He collected 10 to 20 plants at each

location. After the overnight bag test,those three samples had 40 percent, 80percent and 90 percent growth andsurvival percentages.Thats way better than I would have

expected, Vander Vorst says.

Weather will be crucialNone of the prevent-plant field sam-

ples had green leaves, so the vigorisnt as good as at the Wilton site,which was seeded into standingresidue cover from the previous crop,Vander Vorst says. He wasnt immedi-ately aware of the varieties at each lo-cation.The weather over the next three to

four weeks may determine the fate,once again, of the prevent-plant winter

wheat with little surface cover thiswinter, Vander Vorst says.Vander Vorst says a record-high of

750,000 acres of winter wheat wereplanted in the fall of 2013, in part be-cause it was a good fit for acres thathad been too wet and had prevent-plant insurance payments in 2013.He says farmers were reluctant to

seed as many winter crops in the fallof 2012 because of dry conditions. Only220,000 acres were planted to winterwheat in 2012, and 205,000 acres wereharvested in 2013. The 2013 yield wasestimated at 43 bushels per acre, downfrom the 55 bushels per acre in 2012,with a record-high of 700,000 acres har-vested last summer.Some farmers planted winter wheat

in the fall of 2013 in part because of arequirement to plant acres at least oneyear out of four to continue to be eligi-ble for prevent-plant insurance pro-tection, Vander Vorst says.

The key to survivalBrian Fowler, a geneticist at the

University of Saskatchewan, says thekey indication of survival is if plantswith green leaves can regenerate newroots from the crown.I have seen badly damaged patches

in fields green up in the spring andthen die off in a couple of weeks be-cause the plants were unable to gener-ate new root growth in the spring,Fowler says. The leaves grow untilthe reserves in the crown are depletedand then they essentially starve todeath and die off. The roots are themost tender part of the plant and areusually the first part to suffer winterdamage.The leaf green-up followed by plant

death is often attributed to late springfrost damage, but Fowler says thecrown damage has always occurred inmid- to late-winter and the plants areunable to regenerate new roots in thespring. Waiting a week to 10 days willdetermine if Vander Vorsts plant sam-ples can produce new white roots,Fowler says.Bob Fanning, South Dakota State

University Extension Service agrono-mist in Winner, S.D., says bag tests thathe and others ran in early Februaryindicated little winter kill. He sayswinter wheat went into the fall withgood moisture, which cuts the soil tem-perature fluctuations and hydratesplants for good survival. Soil tempera-tures did not get down to the 5 degreesFahrenheit that winter wheat typicallysurvives. He says there might also besome spots of winter injury wherethere was wind erosion.

ND winter wheatsurvival good

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regIONALNeWS

n Maximize yourinvestment

SDSU Extension Service

BROOKINGS, S.D. Genetic manage-ment can be used to capture addedvalue through the supply chain, accord-ing to Lisa Elliott, assistant professorand South Dakota State University Ex-tension commodity marketing specialist.Management tools andprotocols

shouldbe coupledwith complementary or-ganizational arrangements andmarketdif-

ferentiationmechanisms inorder tomaxi-mize value captured from the investment,Elliott says.Elliott identified threekey components

tomanagingbeef genetics: geneticman-agement, organizationdesignandmarketdifferentiationmechanisms. Themainareadiscussedwas geneticmanagement,what itmeansandhowproducers canuseit to increase their profitability.What does geneticmanagementmean to

producers?Elliott says geneticmanagement is iden-

tifying andemploying complementary or-ganizationarrangements andmarket

differentiation that reduces transactioncosts and, perhapsmost importantly, in-creasepremiums toproducers.Geneticmanagement canbeused to

capturepremiums in themarket, shesays. However, there are challenges to op-timizingmanagement of beef geneticswhen transaction costs exist throughoutthebeef supply chain.Sheexplains that price signals that

should incentivizeproducers tomanagegenetics havebeendistorted from transac-tion costs due tomarket failures.For example, a producermaybear

most of the risk, or cost, in a genetic pro-

gram. If it fails, theproducer couldpoten-tially bear large costs,whereas theproces-sormay share little of the cost of geneticimprovement, she says.Vertical integration,Elliott explains,

could limit the transaction costs; however,it canalso increase other costs in thebeefsupply chainbecauseof differencesbe-tween firms.Addedvalue fromgeneticmanagement canoccur from twodifferentsources: value-addedpremiums for higherquality beef products, and improved seg-regationof beef production that leads toincreases in consistency of products andquality yields.

Economic value of managing genetics

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0317 AGWEEK

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