1
00:00:07,174 --> 00:00:10,477
>> Fuel and Fertilizer. The
cost of them has spiked due

2
00:00:10,544 --> 00:00:14,081
to the war in Iran that has
disrupted crude oil fields

3
00:00:14,147 --> 00:00:17,718
and transport, as well as
the export of fertilizer on

4
00:00:17,784 --> 00:00:20,320
farms. In Wisconsin,
growers consider their

5
00:00:20,387 --> 00:00:24,258
crops and spring planting
in the face of this price

6
00:00:24,324 --> 00:00:27,561
volatility. Wisconsin
Farmers Union President

7
00:00:27,628 --> 00:00:29,596
Darin Von Ruden is here
with more. He joins us from

8
00:00:29,663 --> 00:00:32,366
Westby. And thanks a lot
for being here.

9
00:00:32,432 --> 00:00:34,134
>> Thanks for having me
this morning.

10
00:00:34,201 --> 00:00:36,336
>> So what are your farmer
members saying about the

11
00:00:36,403 --> 00:00:39,740
price shocks happening
right now?

12
00:00:39,806 --> 00:00:42,676
>> Well, lots of concerns.
You know, some of our

13
00:00:42,743 --> 00:00:46,680
members actually were able
to book their inputs last

14
00:00:46,747 --> 00:00:49,149
fall, so probably aren't
going to see that sticker

15
00:00:49,216 --> 00:00:52,786
shock this spring. Like we
are amongst other members

16
00:00:52,853 --> 00:00:56,590
that don't have the ability
to because of cash flow

17
00:00:56,657 --> 00:01:00,694
problems by that. So
they're right now probably

18
00:01:00,761 --> 00:01:04,264
examining, do we stay with
corn and need to put more

19
00:01:04,331 --> 00:01:07,201
nitrogen on the ground, or
should we look at a, you

20
00:01:07,267 --> 00:01:11,405
know, small grain crop or
do we plant more soybeans

21
00:01:11,471 --> 00:01:13,941
just because of that price
of fertilizers has

22
00:01:14,007 --> 00:01:17,544
increased so much in the
last two weeks here.

23
00:01:17,611 --> 00:01:19,980
>> What are the ways the
increased cost of fuel

24
00:01:20,047 --> 00:01:24,051
impact producers?
>> Well, in really in all

25
00:01:24,585 --> 00:01:27,988
aspects, number one, it
costs more to get the, the

26
00:01:28,055 --> 00:01:31,291
items that we need to
produce the crops to the

27
00:01:31,358 --> 00:01:35,696
farm. There are surcharges
that are co-ops in process

28
00:01:35,762 --> 00:01:40,133
or our delivery folks will
be charging. It's going to

29
00:01:40,200 --> 00:01:43,136
cost more to put the crop
in the ground. If. Unless

30
00:01:43,203 --> 00:01:47,975
you were able to book that
fuel earlier, which doesn't

31
00:01:48,041 --> 00:01:51,445
happen very often. And then
just to get the products

32
00:01:51,512 --> 00:01:55,048
that we produce to the
consumer through the

33
00:01:55,115 --> 00:01:57,784
processors and distributors,
we're probably going to be

34
00:01:57,851 --> 00:02:01,855
seeing surcharges on those
deliveries to.

35
00:02:02,890 --> 00:02:04,992
>> Now. The Trump
administration just waved a

36
00:02:05,058 --> 00:02:08,028
100 year old shipping law
to speed up oil and

37
00:02:08,095 --> 00:02:10,330
fertilizer shipments ahead
of spring planting. How

38
00:02:10,397 --> 00:02:13,834
welcome is that?
>> Well, you know, if it

39
00:02:13,901 --> 00:02:17,070
helps in that price of what
the cost is to get by that

40
00:02:17,137 --> 00:02:20,307
gallon of diesel or that
gallon of gas, you know, it

41
00:02:20,374 --> 00:02:23,844
certainly is welcome news,
but I'm hearing that it's

42
00:02:23,911 --> 00:02:27,080
it probably will have very
little impact on it because,

43
00:02:27,147 --> 00:02:30,250
you know, planting season
is probably two weeks away

44
00:02:30,317 --> 00:02:33,554
in southern Wisconsin here
right now. So can that

45
00:02:33,620 --> 00:02:36,423
really impact what's going
to happen on day one when

46
00:02:36,490 --> 00:02:39,293
farmers need to be in the
fields? Big question mark

47
00:02:39,359 --> 00:02:41,195
there.
>> Yeah for sure. So how

48
00:02:41,261 --> 00:02:45,566
how difficult is it to move
from corn to soybeans or

49
00:02:45,632 --> 00:02:49,403
other crops? Just kind of
on a dime here.

50
00:02:49,469 --> 00:02:53,273
>> The biggest thing is, is
the availability of the

51
00:02:53,340 --> 00:02:56,210
seeds. So, you know,
farmers generally try to

52
00:02:56,276 --> 00:02:59,279
have that contracted
earlier delivery. You know,

53
00:02:59,346 --> 00:03:02,182
at this time of year, those
seeds are being delivered

54
00:03:02,249 --> 00:03:06,086
to the farm. So if your
supplier has adequate

55
00:03:06,153 --> 00:03:10,224
supplies of both, you're in
good shape. But some years

56
00:03:10,290 --> 00:03:13,460
they'll the people that we
buy from are trying to

57
00:03:13,527 --> 00:03:16,597
guess what farmers are
going to do. And so could

58
00:03:16,663 --> 00:03:20,100
be shorted one or the other.
And small grains is another

59
00:03:20,167 --> 00:03:22,536
issue because a lot of
suppliers don't necessarily

60
00:03:22,603 --> 00:03:26,139
have large quantities of
that seed available. So it

61
00:03:26,206 --> 00:03:28,942
might take 2 to 3 weeks to
get that to come in from

62
00:03:29,009 --> 00:03:31,879
another source.
>> So even ahead of the war

63
00:03:31,945 --> 00:03:34,982
in Iran, how have Wisconsin
farmers weathered tariffs

64
00:03:35,048 --> 00:03:39,419
and resulting markets?
>> Yeah, certainly, you

65
00:03:39,486 --> 00:03:42,556
know, last year was not a
good year for farmers on

66
00:03:42,623 --> 00:03:46,660
the on the economic side, a
lot of farmers posted

67
00:03:46,727 --> 00:03:50,497
losses in corn and soybeans,
especially because of that

68
00:03:50,564 --> 00:03:52,399
disruption in the
marketplace and not having

69
00:03:52,466 --> 00:03:56,236
those overseas buyers to
buy that. You know, we have

70
00:03:56,303 --> 00:04:00,007
weather, a little bit of
that with the increased

71
00:04:00,073 --> 00:04:02,843
prices that we've seen.
After President Trump

72
00:04:02,910 --> 00:04:05,512
announced some of the trade
deals with China, but we

73
00:04:05,579 --> 00:04:08,115
still haven't seen all of
those markets come back to

74
00:04:08,182 --> 00:04:12,419
the level that they were
two, three years ago.

75
00:04:12,486 --> 00:04:15,389
>> How meaningful have one
time payments out of

76
00:04:15,455 --> 00:04:18,725
Washington to offset tariff
losses been for farmers in

77
00:04:18,792 --> 00:04:21,828
Wisconsin?
>> Well, you know, it

78
00:04:21,895 --> 00:04:25,232
certainly has helped ease
some of the pain between

79
00:04:25,299 --> 00:04:28,402
the banker and the farmer
because they were able to

80
00:04:28,468 --> 00:04:32,039
pay maybe a bigger portion
of the the operating loan

81
00:04:32,105 --> 00:04:35,242
that they had. But in
reality, when you look at

82
00:04:35,309 --> 00:04:39,346
the the real numbers, it
was only about 15% of what

83
00:04:39,413 --> 00:04:43,183
farmers needed to pay for
their production costs. So,

84
00:04:43,250 --> 00:04:46,453
you know, in the end, we're
still quite a bit behind on

85
00:04:46,520 --> 00:04:50,490
that process. And, you know,
farmers generally want to

86
00:04:50,557 --> 00:04:53,527
receive our income from the
marketplace and not depend

87
00:04:53,594 --> 00:04:57,431
on Uncle Sam to send us a
check when we're in dire

88
00:04:57,497 --> 00:05:00,968
needs. And so with the
trade war that we had, you

89
00:05:01,034 --> 00:05:04,304
know, those market
conditions were really

90
00:05:04,371 --> 00:05:07,941
impacted in a negative way.
And it's really a

91
00:05:08,008 --> 00:05:12,279
frustration of farmers that
we need to depend on the

92
00:05:12,346 --> 00:05:15,082
federal monies to come in
in order to pay bills.

93
00:05:15,148 --> 00:05:19,386
>> All right. Darin Von
>> All right. Darin Von
