North Dakota Farmers Union

Is your wheat some future price in Minneapolis...
or is it still in the bin?

And what are your plans for your 2009 crop?

With volatile markets, what choices will you have when it comes time to market all your crops? Be sure to attend North Dakota Farmers Union’s marketing seminar at the KMOT Ag Expo. Farmers Union and Country Hedging will bring the latest market trends and opportunities to the table.

1:00 p.m. Wednesday, January 28
In the Norsk Room at the North Dakota State Fair Center, Minot

Ag can be a winner in a cap-and-trade emissions environment
The most common type of policy being used to address climate change is known as cap-and-trade, according to Carmen Miller, who is a representative for the PEW Environment Group. Under this arrangement, a baseline is set as a benchmark of measurable greenhouse gas emissions, she told Farmers Union members who attended her break-out session held during the farm organization's annual meeting.

The cap fixes the maximum amount of greenhouse gases that an industry may emit under a voluntary or mandatory program. Should an industry emit more than that amount, it can “buy” credits to offset the difference through an official exchange such as the Chicago Climate Exchange. Ultimately the goal is to reduce emissions below the baseline following annual targets. However, technological advances to reduce these emission may take years to develop and employ.

Agriculture can provide meaningful emissions reductions through the pooling sale of carbon offsets. These offsets are “extremely and uniquely valuable,” said Carmen. They are readily available for immediate use; they are low cost; and they are seen as an important “bridge” until industries adopt ways to reduce emissions. By using certain farming practices, farmers can “lock” carbon dioxide in fields as a way to reduce or offset the level of greenhouse gases in the atmosphere.
“NDFU, with its Carbon Credit Program, has shown leadership on this issue,” she told her audience.

Climate change legislation will be implemented over the next 40 years, so the effort to reduce greenhouse gases will have large economic impacts. She cautioned people to be wary of certain studies that suggest the costs to industries will be prohibitive. “Technology always decreases in price, over time.” Some of the technologies to reduce greenhouse gas emissions have yet to be fully developed, and some studies do not factor in the value of benefits which will accrue in the years to come. The economic models used in most studies may not accurately or effectively account for the “complex interrelated systems, political opposition, or economic forecasts,” explained Miller. Miller said the Farmers Union Carbon Credit Program offers current financial opportunities for farmers, and that agriculture can be an effective partner in reducing greenhouse gases while profiting at the same time.

Bergman Scholarship winners announced
Eric Watne, Jamestown, and Morgan Schwartzenberger, Napoleon, each will receive a $1,000 Bergman Scholarship to help offset the cost of their college educations.

The Bergman Scholarships were established by Alan Bergman, immediate past president of NDFU. Applicants must be current Torchbearers. The scholarships are awarded by a panel which evaluates each applicant’s response to several essay questions relating to Farmers Union, rural issues, and personal leadership.

Watne intends to pursue a degree in marketing at the University of North Dakota. He is the son of Mark and Michelle Watne.

Schwartzenberger plans to earn a degree in Management Information Systems at the University of Mary. He is the son of Terry and Mary Schwartzenberger.

North Dakota: The Saudi Arabia of Wind

Kenneth Hellevang, PHd, a professor, Extention engineer and director of the North Dakota State University (NDSU) Bio Energy and Product Innovation Center lead the break-out session discussion “New Energy Opportunities.”

He began by his asking the audience to “look at the whole picture related to energy" and to "think of it from a holistic approach.” Hellevang updated members on production and conversion, bio-products, and energy economic development. NDSU is studying which crops are being grown for CRP land and how farmers can diversify with crops such as perennial grasses. The college studies a variety of agriculture including a process to remove material from yellow corn that may play a role in preventing health issues such as cataracts. Research is also underway on technology to keep biodiesel from gelling including a campus lab to test biodiesel production on a small-scale. Current college projects also include finding the “break-even” point on various soil types when switchgrass is planted to use in the production of biofuels.

On a national scene, he said the Renewable Fuels Standard encourages research on the next age of energy sources. As slimy as it may sound, this includes making biodiesel out of algae.

Wind energy was a hot topic including a few raised eyebrows during his comments about an electrolyer that converts wind energy into a fuel that would power gas engines. “The primary issue with wind energy, however, is wind leases,” said Hellevang. “We want to plan an economic development process that makes sense long-term.”

He noted that NDSU offers winter workshops on wind energy leases. He noted that the Langdon wind farm has 106 turbines and has a $1.4 million annual impact on various entities.

Hellevang said many other questions need to be addressed such as “what to do with the energy when the wind isn't blowing” and “how do we move power from here to other states” where the demand is. Hellevang credited the North Dakota Alliance for Renewable Energy for pushing for more access to state funding and promoting renewable energy in the state. Additionally, the North Dakota Biomass Energy Task Force has many recommendations in an “action plan” to be presented in the upcoming legislative session. The ND EmPower Commission (communityservices.nd.gov/energy) provides additional information. HB1462 establishes an energy commission to look at the affect on landowners and famers' income. “North Dakota has been referred to as the Saudi Arabia of wind,” said Hellevang, “but it takes investment; and we produce more energy than we use.”

The lease is a factor in wind energy, yet the overall impact must factor in transportation of the energy to places such as Chicago, where supply and demand is high. “We've taken a major step forward in looking at how interconnected everything is,” said Hellevang.

Oil industry is is tapping into new opportunities in northwestern ND
The state’s oil industry is drawing national attention as companies stepped up efforts to tap the Bakken oil field in northwestern North Dakota. That is one reason why North Dakota’s annual oil production is fifth in the nation. The exploration-and-drilling boom ramped up as the global price for oil shot past $100 per barrel. Although crude oil prices have slid considerably, Bruce Hicks believes prices will rebound enough to keep the state’s oil patch viable and have pumps steadily humming along like so many slow-motion sewing machines on the prairie.

Hicks, the assistant director of the Oil and Gas Division for the North Dakota Industrial Commission, says the rig count should stay level at 87. About 1,000,000 barrels of oil per day – which is more than half the production of oil in North Dakota – is being pumped out of the Bakken. The oil industry has known about the Bakken formation since the early 1950s. The relatively recent explosive development can be attributed to much higher crude oil prices and technological advances in drilling. The production is limited to a degree by transportation. For now, production is being shipped out by truck and rail. New pipelines will greatly ease transportation and also allow the oil field to remain cost effective relative to the volatility of global prices.

There are 34 rigs in Mountrail County, 18 in Dunn, and 17 in McKenzie. Of 87 total rigs in North Dakota, 78 are tapping into the Bakken formation. And 78 of the 83 rigs now in operation are of the horizontal rather than vertical arrangement. From 1951-86, rigs drilled vertically to tap oil fields. From 1987-02, the drilling operation changed to horizontal, meaning the rigs would drill down to a set level and then curve “sideways” horizontally into a field. Based on the geologic features of the field, this would allow more crude oil to be recovered. Currently, rigs are using horizontal drilling to hit natural “fractures” in the rock and shale to further recover oil. “It’s got a huge potential,” said Hicks.
Even deeper and larger is the Three Forks formation. However, the combination of exploration costs and the unknowns of the formation make it economically beyond reach, for now. Hicks said the oil industry is using experience, science and technology to improve its ability to extract oil from the oil fields deep below northwestern North Dakota’s farm fields

Torchbearers honored at state convention
The glow of candles and a warm address of encouragement by Governor John Hoeven set the stage for youth participating in the annual Torchbearer Award ceremony held during North Dakota Farmers Union’s 82nd annual convention.

“You have a tremendous organization. A very progressive organization,” Hoeven told more than 600 people attending the Torchbearer banquet. “The work you do with these young people to emphasize education... is a tremendous thing,” he said.

The Torchbearer Award is the highest award senior youth may achieve in Farmers Union. Youth must complete five consecutive years of senior youth work to be eligible for this award.

NDFU President Robert Carlson lit the candle of each Torchbearer as they crossed the stage.
“Not only are we celebrating the success and achievements of the organization, but also those of our young leaders as the culmination of their youth experience brings them to their new role as adult members of Farmers Union,” said Josh Norby, member education coordinator for the farm organization. “They are the future families and leaders of this organization, their communities, the state, and country. We congratulate you on your new start.”

Amber Hill, former member education coordinator and now training and outreach coordinator for NDFU, added, “We are celebrating their achievement of a goal – becoming a Farmers Union Torchbearer. By attending county meetings, day classes, summer camps, award trips and other leadership activities each of our 50 Torchbearers have made the commitment to become leaders.

This year over 1,500 youth in grades 3-12 attended Farmers Union Camps and award trips and nearly 1,300 youth completed day class work. “This success is due to our county youth leaders who share their time and talents,” added Hill. “Each year hours of preparation and planning is done by our volunteers. Thank you for helping guide these young leaders through the program to their award tonight.”

“We challenge each of you to go out into the world and make a positive influence with the gifts and talents you have been given. If you believe in yourself and support each other, you will be successful in all you do,” concluded Norby.

NDFU members elect Barth as Vice President;
Blooms are Farm Family of the Year

More than 800 North Dakota Farmers Union members from across the state drafted policy, elected a new vice president and learned more about the state’s burgeoning energy industry at the organization’s annual convention which was held in Bismarck this past weekend.

Elwood “Woody” Barth of Solen was elected as vice president to succeed Richard Schlosser, Edgeley, who retired this year after having served in the leadership role since January 1997. Barth was currently NDFU’s District V director. The county leaders in that district will meet to choose someone to complete Barth’s term.

North Dakota Farmers Union’s state board of directors is elected by members in seven districts. Director terms are for two years. Barth was challenged by Marcy Svenningsen, Valley City, who is a director for District VII.

Other district directors are Terry Borstad, Cando, District I; Jon Erickson, Minot; District II, who replaces Bob Finken, Douglas, who chose not to run for re-election; Dennis Stromme, Zahl, District III; Bob Kuylen, South Heart, District IV; and Ellen Linderman, Carrington; District VI.

Robert Carlson was elected to his 12th consecutive term as president of North Dakota Farmers Union. During his annual address to members, Carlson said the farm organization had numerous successes during the past year, including its efforts to keep country-of-origin food labeling and a permanent disaster title in the 2008 Farm Bill. “Nothing is more important than food, and nothing is more important than the farmers and ranchers who produce that food,” he said.

Speakers at the convention were National Farmers Union President Tom Buis, U.S. Representative Earl Pomeroy, Governor John Hoeven, and Commissioner of Agriculture Roger Johnson.

Ron and Rita Bloom of Ryder were named as the 2008 Farm Family of the Year. The Blooms are active in their community, and have compiled an extensive record of involvement in cooperatives and Farmers Union.

As a grassroots organization, Farmers Union members introduced, debated, and adopted policy, highlights of which will be posted on NDFU’s Web site.

The event concluded with the Torchbearer ceremony at which youth were awarded the farm organization’s highest award for graduating from the youth education program.