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Farm Income

A new report from the University of Minnesota Farm Business Management program shows great news for area farmers. The net farm income in 2022, or the amount of money that remains in an operation to make family living, non-farm capital purchases, income tax payments, and principal payments for land and machinery purchases, was reported as $311,240, which is the highest average net farm income on record. The median net farm income, or the midpoint of all incomes reported, was $177,614. Over 1,400 Minnesota farms participated in the study, with more than 60 percent grain farms, 12 percent livestock operations, and the balance were combinations of crop, livestock, and other enterprises.

Other details from the report:

The average farm business received $14,606 in government program payments, which is down from the total reported in 2021 of $58,190.

The average family living income was reported at $71,375. That’s a slight increase over 2021 reports. The average non-farm income was $45,240, which represents about 38% of the total net farm income.

The average farm business working capital was reported to be $601,008, more than three times higher than the working capital reported in 2019.

Overall, the report finds excellent crop farm returns with more modest livestock income and a generally positive outlook for the future.

Train Derailment

State and local officials are working to determine what caused a Canadian Pacific train to derail in northwestern Minnesota Wednesday night. Gov. Tim Walz said the derailment happened near Lancaster, which is just over 10 miles south of the Canadian border. No injuries were initially reported and the site has reportedly been contained, with no hazardous materials believed to have leaked. The Lancaster Fire Department said the derailment happened around 4 p.m., involving about 27 train cars. Some of them were carrying flammable liquid NOS, but the department said the liquid remained confined within the cars. The Minnesota Department of Transportation said at 6:30 p.m., Hwy. 59 south of Lancaster was closed due to the derailment. As of Thursday afternoon, the highway remains closed between Hwy. 175 and County Rd. 5. Crews are continuing clean-up and inspection efforts on Thursday. MnDOT said the process can take up to 2 to 3 days to complete.

Marijuana And Gun Ownership

Until recreational cannabis is federally legalized, marijuana users cannot legally own or use guns. Minnesota House Representative Marion O’Neill recently pointed out some underlying challenges with the new Minnesota marijuana bill. “There are cases going through the federal courts right now about whether or not it is unconstitutional, to remove someone’s second amendment rights, because they’ve been found in possession of marijuana” said O’Neill. The bureau of alcohol, tobacco, firearms and explosives clarifies that regardless of the recent Minnesota law, someone who is currently using marijuana is still federally defined as an “unlawful user” of a controlled substance. “If you are found in possession of marijuana, you absolutely should lose your second amendment rights. That is what Biden’s administration is saying right now” said O’Neill. Along with the newly passed Minnesota law, the federal reserve will start using FedNow as a federal certification service starting July 1st. “Every single time you use a check, every single time you use a credit card, that transaction is gonna go through FedNow and FedNow is gonna know every single transaction that you make electronically, every single one. You don’t think they’re gonna be looking for marijuana transactions?” said O’Neill. Some opponents are even saying gun control and weed legalization are in the same boat. “One might surmise that weed legalization is a backdoor to take your guns away…” said O’Neill. Minnesotans 21 and older will be able to legally consume and grow cannabis for personal use starting August 1st.