JAMESTOWN (May 9, 2008) – With spring planting well under way across the state, farmers are dealing with unprecedented high expenses for production costs. “We’ve seen more farmer outrage at these prices than at anything else that I’ve seen in the last few years,” said Robert Carlson, president of North Dakota Farmers Union.

In the past 30 days, the price of anhydrous ammonia – a nitrogen fertilizer – has increased by $240 a ton. “It’s more than tripled over the past two years. This is a serious problem and we want to hear some explanations,” he said.

North Dakota Farmers Union is asking the state’s congressional delegation of Senator Kent Conrad, Senator Byron Dorgan, and Representative Earl Pomeroy to request that an appropriate committee of Congress and/or a federal agency inquire into the reasons for the sharp increase in prices charged for agricultural fertilizers. The state’s largest general farm organization is also asking federal lawmakers to examine the competitive conditions that exist in the fertilizer manufacturing and wholesale industry.

Some costs increases, such as for seed and fuel, are understandable because of high demand and tight supply, explained Carlson. “However, there is real anger in the countryside and a strong belief that fertilzer price gouging and price fixing are occurring somewhere below the retail level.”

Carlson said local cooperatives are operating on tight margins and are not the businesses profiting from the higher fertilizer prices. “The local co-ops that are dealing with fertilizer, retailing it to farmers, are every bit as unhappy with the situation as the farmers are,” he said. “The people selling to producers are also disturbed by the high prices they are forced to pay for the product.” The local dealers are being forced to bid for fertilizer supplies. Bids are required for all purchases, both near term and next year delivery. The dealers cannot guarantee supply to the farmers until they learn if they “won” the bid for the product.

“It’s a very serious problem, as farmers are struggling to get the crop in this spring, not to have readily available fertilizer at an affordable price.”

To view the letter sent to congressional delegation, click here. 

For an audio or video clip of President Carlson's remarks, click here.

By Bob Kjelland • Union Farmer Editor

Walmarts are known for being packed with products that are made by low-cost labor in China. North Dakotans Walmart shoppers can look forward to a taste of home, thanks to Maryln Kalmbach and her two-oven bakery in Jud.

Each week, Kalmbach makes from scratch and bakes enough kuchen to supply the demand for the the dessert pastry. “I bake on Mondays and Wednesdays. I deliver on Tuesdays and Thursdays.” Kalmbach bakes from 230 to 280 kuchens on average, during her baking days. She delivers these pastries to the Walmart Supercenters in Fargo, Jamestown, Aberdeen, and two in Bismarck. She also supplies Marketplace Foods in Valley City.

Kuchen is the German word for cake. In reality (and on the table), kuchen looks like a pie whose fillings vary according to the seasons and overall demand. Fruit fillings are the most popular, says Kalmbach. Peach, blueberry, and apple lead in sales. Other fillings are cherry, rhubarb, raspberry, prune, dry curd, and chocolate chip. “I make pumpkin at Thanksgiving," she says. The fillings are supported by custard and sweet dough, and topped with cinnamon. She makes her own dough. All the ingredients come from products grown or produced in North Dakota. “I have had people leave messages saying ‘That's just like my grandmother’s’.”

Her kuchen baking skills come naturally. She remembers the days her grandma used to visit her home when she was growing up. “The minute you opened the door you could smell kuchen and knoephle soup.”

She began by baking kuchen for family events. “It’s all made from scratch; fresh, not frozen. No artificial flavors or preservatives,” she says. She makes each kuchen by hand using her aunt's recipe. “I learned how to make kuchen from my aunt. But she changed things and I’ve changed things,” she says of the recipe. Regardless, the final mix sells because it's good. So good that her husband Brad and others encouraged her to bake kuchens for a statewide market.

She initially took kuchen samples to the Walmart in Fargo and asked to see the manager. As fate turned out, the Walmart food merchandiser was there as well. They were impressed enough to consider stocking this product in the coolers in the Walmart food departments. She says it took a year to get Walmart to sign her on as a supplier.

For this enterprising effort, Mary’s Bake Shoppe was established in 2005 in Jud, a small community about 20 miles south of Jamestown.

Sales are steady year-round, dropping off slightly in January and February, and peaking in November and December. “I just started out with a regular oven. I could bake six, eight at a time.” Business has grown in terms of sales and production. Two big commercial ovens were purchased to meet demand. “I can bake 60 at a time; however, I normally do 40 because it is easier to manage.” Brad Kalmbach prepares the product labels and maintains the company's Web site (www.marysbakeshoppe.net).

Kalmbach is a member of Pride of Dakota, a program coordinated by the North Dakota Department of Agriculture. Pride of Dakota assists North Dakota companies that make products in North Dakota to develop advertising and marketing programs. Kalmbach says the Pride of Dakota program (www.prideofdakota.nd.gov) has been of immense value in getting Mary’s Bake Shoppe off to a successful start.

Sales have been good and “I could expand. Right now I have about all I can handle,” she says. For now, Kalmbach's sister, Paula, helps as her schedule allows. Any additional increase in production will require hiring someone to help in the kitchen. She is open to baking for others who might want to embrace the “Buy Fresh, Eat Local” concept promoted by Farmers Union youth programs. Kalmbach also bakes cheese cakes for weddings and other events.

“Without the encouragement of Brad and Paula and others, I might not have had the courage to do this.”

Governor John Hoeven has proclaimed May 5-9, 2008, as Farmers Union Youth Week, citing North Dakota Farmers Union’s dedication to cooperative education and community leadership through its youth program.

“Farmers Union members have developed cooperative and community leaders through education classes and a statewide summer camping program,” wrote Hoeven in a signed proclamation. “Educating young people on cooperative business is important to growing our state’s agriculture industry and overall economy.”

As the state’s largest general farm organization, North Dakota Farmers Union conducts county-sponsored classes and summer camps that annually attract more than 2,500 youth. The organization’s youth camping program gets underway in June. Three and five-day camps are offered for youth in grades 3-12.

“Farmers Union Camp is open to all youth in North Dakota,” said Amber Hill, North Dakota Farmers Union education coordinator. “It is an interactive, hands-on program that builds teamwork and communication skills in young people. Without a doubt, it is the best week of summer for making lasting memories and lifelong friends.”

CARE, the international relief agency, has asked North Dakota Farmers Union to partner on a project to raise $50,000 to reintroduce sustainable agriculture into Shuar communities. Native women will be the vehicle through which agriculture is introduced. We need $10,000 more to reach our goal.

Contributions may be mailed to:
NDFU Foundation
PO Box 2136
Jamestown, ND 58402.

To see a video about the project click here.

(FARGO, ND) – April 2, 2008 – John Johnson, chief executive officer of CHS, Inc., fielded questions posed by North Dakota State University students enrolled in a cooperative business class taught by Dr. Greg McKee. Johnson found the questions to be direct, and his answers were equally frank. Johnson said there may be a perception in corporate America that only graduates of Harvard, Yale or other similar institutes are worthy to head major corporations. Johnson disagreed, telling students to "get a great education – which you will here at NDSU – work hard and find companies you like to work for and love what you do."

CHS is a regional cooperative and the largest co-op in America. CHS was formed by the merger of Cenex and Harvest States. Each co-op was formerly know as Farmers Union Central Exchange and Farmers Union Grain Terminal Association, respectively. "Here in North Dakota is where it all started. We got our roots right here," he said. with $17 billion in annual sales and 6,000 employees, CHS is a significant business in the fields of energy, grains, and food processing. "A co- op is another form a business, but it's not a religion," he said. No other business structure better alines customers with the business operations, he added.

Cooperatives do have limitations, especially in sourcing investment capital, he explained. Still, by using earnings and the equity of co- op patrons, access to investment dollars "has never hampered our ability to grow our business." This member-owned equity is not liquid, which is a concern to members and management. "The answer is to take the company public." Johnson said that provides one solution to the equity issue but it has obvious consequences. "You do that once." After which the company may lose its member focus and will lose member control.

He said the CHS board and management used to look ten years into the future during strategic planning events. That dropped to five, then three years. Today, he said, the business world is changing so fast that near-term projections are likely to change overnight. "Some of the rules we've played by in the past may not be adaptable in the future. We are who we are. We are in the business we are in."

More than 100 farmers, ranchers and business leaders from across the state rallied at the Seven Seas in Mandan on Thursday to show support for a permanent disaster relief provision in the new farm bill.

Senator Kent Conrad told the crowd that a farm bill will be passed with $4 billion in funding for a permanent disaster aid provision. “Family farmers and ranchers should not have to come to Congress hat in hand each time Mother Nature wreaks havoc,” he said. “By including a disaster program, we can ensure that our farmers and ranchers have access to support in a timely, cost-efficient manner. It makes sense for both our farmers and the taxpayer.”

The Senate version of the five-year farm bill, which included a $5 billion disaster aid program, won wide bipartisan support in January. But the Administration has threatened a veto, citing the disaster program as one reason for its potential veto.

Congress recently extended the current farm bill until April 18.

“There is a lot of uncertainty out there with respect to where we are at in terms of input costs, where are we at in respect if there is a disaster,” said Schlosser. “We need to relay a message back (to Congress) to get this done.”

Click here to view more photos.

High energy costs and inflation are driving today’s food costs, not the prices farmers receive for their crops and livestock. That’s the message county Farmers Union organizations shared with consumers on Wednesday, March 19, at “Farmer’s Share” meals held across the state.

The price for each meal was just $1, which represents the amount farmers receive from every $5 spent on food by consumers.

“Today’s high crop prices are being blamed for the rise in food costs. One myth is that the demand for renewable fuels has caused high corn prices, which in turn has led to higher food prices,” said North Dakota Farmers Union President Robert Carlson. “In fact, rising energy prices have twice the impact on the Consumer Price Index for food than the price of corn.”

Farmers today earn just 20¢ of every dollar spent on food, noted Carlson. Non-farm costs including marketing, processing, wholesaling, distribution and retailing account for 80¢ of every food dollar spent in the United States. In 1952, farmers earned 47¢ of every dollar spent on food.

Current world markets and stock inventories are also adding to increased food prices. Carlson said the weak U.S. dollar has resulted in greater exports of American crops to other nations at a time when our overall “inventory” of crops is at a 30-year low. Additionally, inflation factors into higher food costs. According to the Bureau of Labor Statistics, the 25-year average annual food inflation rate is 2.9%. Government statistics confirm that the increase consumers face is standard.

Another urban myth, Carlson said, is that farmers are getting rich on $12 a bushel wheat. While farmers would love to lock in their prices at $12 a bushel, he said prices have risen so high because most farmers have already sold their crops at lower prices. They, too, face fuel prices and input costs that have effectively doubled in recent years.

Contentious negotiations in Washington, D.C., over a permanent disaster title in the new farm bill should have producers clamoring for its passage, said North Dakota Farmers Union President Robert Carlson.

“But there is a sense in the countryside that all is well. That’s not the case. I think producers have been distracted by high commodity prices,” he said. “We are facing very dry conditions already in western North Dakota. Right now, a permanent disaster title is the most important component of the farm bill’s safety net.”

Negotiations between the House, Senate and Bush Administration currently center on how to allocate $10 billion over baseline expenditures for farm bill programs; of which Farmers Union believes $5.1 billion should be allocated to a permanent disaster assistance program over a five-year period.

“If Congress and the White House can find billions for an economic stimulus package and bank bailout to stabilize our economy, why wouldn’t we stabilize our food supply?” said Carlson. “Natural disasters will continue to occur in agriculture. We should be proactive and put a program in place that helps farm families, who grow our food, when they are hurt by disasters.

“A permanent disaster title is our opportunity to make the impact of disasters a thing of the past.”

Farmers Union will be hosting a rally with Senator Kent Conrad on Thursday, March 27, at the Seven Seas in Mandan at 3:15 p.m. The event will draw attention to the need for a permanent disaster title. Representative and House Agriculture Committee Chairmen Collin Peterson has been invited to participate in the rally.

“It will be important to get the message to our congressional leaders that permanent disaster assistance is a necessity,” Carlson said. “It’s not just important for agriculture, it’s important for our nation.”

Amazing juggling and witty humor provided by the Larry O. Comedy Variety Show at the McIntosh County Farmers Union Active Member Banquet entertained a crowd of approximately 130 people.

The program and banquet was held on Tuesday, February 26, at Dakota Family Restaurant in Ashley.

The evening began with a welcome from Terry Ulrich, McIntosh County Farmers Union President. Members then enjoyed feasting on a wonderful meal of chicken and roast beef with all the trimmings.