Posted 07/30/2021

North Dakota Stockmen’s Association Member Update:

July 30, 2021

Water Commission approves more drought assistance for livestock producers

In a special meeting today, the North Dakota Water Commission approved an additional $2 million in funding for the Drought Disaster Livestock Water Supply Program, which provides up to $4,500 in cost-share per project to producers to address water supply shortages. Among the eligible projects: the addition of new water wells, rural water connections, pipeline extensions and taps. More than 900 projects valued at $3.7 million have already been approved since the program was reactivated in April.

Additionally, in response to a request by the NDSA, the Water Commission provided a separate $2 million in funding for a temporary water supply assistance program called the Emergency Livestock Water Supply Program. This will be a 50-50 cost-share program for temporary water supply projects, equipment and hauling. Its purpose: to provide immediate water supply relief for producers who are currently on a waiting list for a permanent water supply project. To be eligible, livestock producers must have verifiable water losses from the drought and must purchase water and/or transport water to livestock; own breeding livestock (defined as beef and dairy cows, bison, sheep and goats) and own a minimum of 25 animal unit equivalents. The following will be considered “water” for this program: that purchased from a rural water system or municipality. Water from personal wells or on-farm rural water is only eligible for the transportation assistance. Storage tanks, transportation tanks and other materials to assist in the transportation of water will be considered “equipment” for rental assistance. Transportation costs for water incurred between July 1, 2021, and Oct. 31, 2021, qualifies and will be eligible for reimbursement on a portion of expenses based on a loaded mile of purchased water delivered. For personal mileage, the rate will be set at $2 per mile, while commercial mileage will be based on the total amount charged, but reimbursement will be on a percentage basis. Commercial rates higher than the program average will be reduced to average or rejected. Reimbursement requests must be submitted to the North Dakota Department of Agriculture by Dec. 1, 2021. Applications will require a signed W-9 form, third-party verification of water losses from a bank, Extension agent or veterinarian, all receipts and acceptance of the terms on the application form.

The Water Commission also authorized $1 million to allow lessees of trust lands owned by the State of North Dakota to place permanent improvements on the lands with the written consent of the commissioner. The Department of Trust Lands currently cost-shares up to $11,100 for water wells, $1,575 for rural water pasture taps and $5,600 for water pipelines that originate from a water source on the trust land. The additional funding will be used to cover costs exceeding the maximum practice cost-share amount for permanent water supply projects on trust lands. The permanent improvements will be deemed property of the state and may be used by the Department of Water Resources to access and use for aquifer observation.

For more information about any of these programs, click here or call (701) 328-2750.

Industrial Commission approves two BND drought loan programs

Two Bank of North Dakota (BND) loan programs approved on Tuesday aim to make $150 million available to help the state’s livestock producers cover expenses related to the drought. Interested producers should work with their local lender to determine if the programs are a good fit and to apply.

The Livestock Drought Loan Program will cover ag-related costs incurred because of this year’s drought. Loans are for up to a five-year term at a fixed interest rate of 3.5 percent. The proceeds may be used for items such as production or purchase of feed; transportation of feed or livestock; obtaining water for livestock by drilling a well, piping or hauling water; forage and seed costs; cover crops; silaging costs and insecticide costs. Applications will be accepted through June 30, 2022. Details of the loan program can be found here.

The Livestock Rebuilder Loan Program is meant for producers who had to reduce the size of their herd due to a lack of feed. It will provide funds for purchasing and rebuilding breeding stock when the time is right. The loan is available for up to a seven-year term at a fixed interest rate of 3.5 percent. Applications will be accepted through June 30, 2023. Details of the loan program can be found here.

North Dakota Congressional leaders to Vilsack: more help needed for drought-stricken producers

North Dakota’s Congressional delegation – Sen. John Hoeven, Sen. Kevin Cramer and Rep. Kelly Armstrong – were among the western lawmakers who called on U.S. Secretary of Agriculture Tom Vilsack on Tuesday to provide more relief to agricultural producers suffering because of the extreme drought. The request came as part of a bipartisan, bicameral effort urging the U.S. Department of Agriculture (USDA) to open relief programs to producers in the western United States who have lost crops and culled herds because of recent drought, wildfire or extreme heat.

“Due to the severity of the ongoing situation, we believe that additional federal assistance will be needed beyond what can be offered through current USDA drought relief programs,” the lawmakers wrote. “Therefore, in an effort to provide financial and other assistance to these producers, we respectfully request USDA explore all potential flexibilities for additional relief within existing programs and identify other options to deliver federal relief to producers in our states so they have the resources to overcome the extreme drought.”

The letter encourages USDA to work with Congress to provide technical assistance as lawmakers craft additional authorities and appropriations to address the 2020 and 2021 seasons that include drought, wildfire and excessive heat-related losses.

CRP Flexibility Act introduced to help for the future

Sens. Kevin Cramer, John Thune and Tina Smith introduced the CRP Flexibility Act, bipartisan legislation to improve the U.S. Department of Agriculture’s (USDA) ability to allow emergency haying of eligible Conservation Reserve Program (CRP) acres prior to Aug. 1 in response to drought and other weather-related disaster events. The trio of lawmakers was joined by North Dakota’s Sen. John Hoeven and Rep. Kelly Armstrong and other supporters as co-sponsors.
 

“As North Dakota producers have worked to overcome this year’s drought, it has become clear one step Congress can take to ensure they are able to receive assistance is to allow emergency haying of eligible Conservation Reserve Program acres prior to Aug. 1,” said Cramer. “Our bipartisan bill would allow the Department of Agriculture to designate those acres for emergency haying under certain circumstances, which would provide long-term clarity for how they can work to address the emergency needs of the agricultural community in our region and across the country.” Read the proposed legislation here.

Late last week, USDA denied the state’s request to open CRP for haying before the primary nesting season ends on Aug. 1. “We are very disappointed to learn that USDA has denied our plea to allow early haying of CRP,” said NDSA President and New Rockford, N.D., cattleman Jeff Schafer in a statement last Friday. “Border to border, North Dakota cattle ranchers are in a dire situation that has set new records. With 90-plus-degree and triple-digit temps in the forecast for the foreseeable future, the quality of the forage diminishes every day, so time absolutely matters. The ag community and conservation community are all on the same page that CRP should be opened for haying immediately. It’s heartbreaking that this will not happen this year.”

Extension compiles drought impacts to livestock producers

The North Dakota Extension Service compiled a comprehensive Survey of Drought Impacts to North Dakota’s Livestock Producers and released the findings from 43 counties in the report on Monday. Among the data sets are reports on reductions in range and pasture production, reductions in harvested forages, reductions in feed inventory, reductions in livestock herd size, reductions in the grazing period and nitrate testing completed by Extension agents. The survey also includes narrative comments from each of the counties. To read the survey and see the accompanying maps, click here.

NDSA brand inspection reports show significant increase in sales

The NDSA released its June 2021 Brand Inspection Report, which tallies the number of brand inspections at the state’s livestock auction markets and those in neighboring states where North Dakota conducts routine inspection, local inspections, registered feedlots, weigh stations, scales and production scales. The year-to-date inspection numbers – from January to June 2021 – total 765,389 head, as compared to the 673,658 that were inspected in that period in 2020. That represents a 13.6 percent increase in total brand inspections. Of the total inspections so far in 2021, only 3,095 were horses.

The number increase has been most dramatic at the auction markets, where numbers are up more than 20.5 percent when comparing the first six months of 2021 to that period in 2020. Livestock marketings were up throughout the year, but only by 6 percent at the end of May 2021. By June, intensifying drought spurred more dramatic sales. When comparing June 2020 to June 2021, brand inspection numbers were up 49.98 percent.

Inspection numbers are up at all but two of the 19 markets in the report – one tallying lower simply because it is no longer in business. The market year-to-date increases range from 9.4 percent to 61.8 percent, with the most dramatic increases at the markets in Sidney, Mont., (61.8 percent); Rugby (59.4 percent); Wishek (38.9 percent); Aberdeen, S.D., (35.8 percent); and Napoleon (32.6 percent).

When comparing June 2021 inspection numbers to those from June 2017, when North Dakota was going through the most recent statewide drought, the numbers are up by 25,573 head, or 31.8 percent, this year.

Beef cow numbers continue to decrease nationally

On July 23, the U.S. Department of Agriculture’s National Agriculture Statistics Service released its mid-year estimates of the U.S. cattle inventory. Most all beef-related inventory categories were lower, with all cattle and calves down 1.3 percent from July 1, 2020. The beef cow inventory was off a little more than 2 percent from last year. This was the largest mid-year decrease in beef cow numbers since 2012, but still leaves the beef cow inventory just 3 percent off its recent high in 2018. The full report can be viewed here.

Check your policies

An NDSA member suffered a devastating loss this week when fire broke out in his hay yard and torched more than 700 hay bales his family was relying on for winter feed for their cowherd this year. He said what added fuel to the fire, so to speak, was learning that his insurance policy did not cover the hay like he thought it had. His advice to others: check your insurance policies carefully and make sure everything you intend to cover is explicitly included.

7,000 landowners posted electronically

The North Dakota Game and Fish Department reported that 7,000 landowners posted 3.75 million acres through a new electronic posting system approved by the 2021 North Dakota Legislature earlier this year. That acreage represents about 8.3 percent of North Dakota’s area. North Dakota is the first state to make electronic posting available for private land.

The NDSA advocated for the system and other improved landowner protections against trespass. SB 2144 allows landowners in all North Dakota counties the option of posting their land electronically to protect against hunting trespass. The new law, which includes the same penalties for those who trespass on electronically posted land as those who trespass on traditionally posted land, goes into effect Aug. 1.

The electronic posting deadline for landowners for this year was July 15. A map marking the posted parcels can be found here. The posted parcels are indicated in orange, crosshatched squares. The Game and Fish Department is also publishing printed maps for sportsmen to use this hunting season.

The legislature also approved an ongoing study of the system and land access issues during the interim. The Interim Natural Resources Committee is expected to take up the study sometime in late fall or early 2022 to evaluate the system and recommend any changes.

Landowners who did not electronically post their land but want to in the future will have a chance to enroll their property next year. Physical posting signs are still a viable, legal option for those who prefer the traditional process or who missed this year’s electronic posting deadline.

Beef producers salute military heroes

The NDSA, North Dakota CattleWomen and North Dakota Beef Commission joined forces again this year to host the Beef Industry Military Appreciation Day at the North Dakota State Fair on Tuesday. The groups saluted active-duty military men and women and their families with a roast beef and all-beef hot dog lunch and children’s activities and provided beef promotional materials and real-life rancher interactions to this important constituency.