>> CATHY: WELCOME TO "ALMANAC."

WE'LL GET TO THE BIG REPUBLICAN GUBERNATORIAL DEBATE IN JUST ABOUT 15 MINUTES, BUT WE HAVE A COUPLE OF OTHER STORIES FOR YOU FIRST, INCLUDING A LOOK AT THE CONTENTIOUS DFL U.S.

SENATE PRIMARY RACE.

>> ERIC: WE START TONIGHT WITH A LOOK AT HOW FARM COUNTRY HAS BEEN AFFECTED BY THE EXTREME HEAT AND LACK OF MOISTURE AROUND THE STATE THIS SUMMER.

BEFORE HE HEADS OFF TO FARMFEST NEXT WEEK, WE ASKED MINNESOTA AGRICULTURE COMMISSIONER THOM PETERSEN TO STOP BY TO TALK ABOUT EXTREME WEATHER AND IMPACT OF RISING OIL PRICES ON MINNESOTA FARMERS.

I DON'T KNOW IF THIS HAPPENED IN FARM COUNTRY TODAY, BUT THIS WOULD HAVE BEEN LIKE BILLION-DOLLAR RAIN IF IT HAD BEEN IN FARM COUNTRY.

>> WELL, ERIC, YOU KNOW, WE USED TO CALL IT A MILLION-DOLLAR RAIN.

NOW, YOU KNOW, IT LITERALLY PROBABLY IS A BILLION-DOLLAR RAIN, YOU KNOW.

FOR MUCH OF OUR STATE, YOU KNOW, AS WE LOOKED AT OUR STATE, I OOK AT THE DROUGHT MONITOR EVERY THURSDAY MORNING WHEN THAT COMES OUT 8:00 A.M.

AND THIS WEEK 75% OF THE STATE, D-1 MODERATE DROUGHT, 35% OF THE STATE IN D-2, SEVERE DROUGHT, YOU KNOW, THAT MEANS THAT WE'RE REALLY CLOSE TO SEEING, WE HAD TWO COUNTIES, ROCK AND NOBLES COUNTY, DECLARED USDA DISASTERS THIS WEEK.

YOU KNOW, AND SO AS WE LOOK AT THAT, THIS WAS A BILLION-DOLLAR RAIN.

AND A CROP-SAVING RAIN FOR A LOT OF FARMERS.

>> Cathy: GOSH, LE SUEUR GOT SEVEN INCHES RAIN, THAT WAS MAYBE A LITTLE BIT TOO MUCH I SUPPOSE.

I KNOW YOU'VE BEEN GOING TO THE COUNTY FAIRS.

YOU WERE AT WASHINGTON COUNTY THIS WEEK.

I KNOW YOU ET AROUND.

WHAT ARE FARMERS SAYING?

>> YOU KNOW, I THINK FARMERS ARE SAYING, WE NEED THE RAIN, IS A BIG THING.

THAT IS THE IMMEDIATE PROBLEM WITH A LOT OF FARMERS.

IT WAS REALLY DRYING OUT AROUND THE STATE.

AND, YOU KNOW, WE'RE HOPEFUL WE'RE GOING TO CONTINUE TO GET RAIN BECAUSE WE NEED A LOT.

WE GOT THE CENTRAL PART OF THE STATE GOT SOME, BUT WHERE THOSE DROUGHT AREAS IS, THAT'S TOUGH.

INPUTS, FUEL PRICES, YOU KNOW, HAVING DIESEL BE 40% HIGHER THAN IT WAS LAST YEAR AT THIS TIME AS WE GET CLOSE TO HARVEST THAT'S A CONCERN.

>> Eric: CORN AND SOYBEANS HAVE DONE PRETTY WELL THE LAST FEW YEARS, I WONDER IF THAT'S ENOUGH TO CUSHION THE BLOW.

>> WE REALLY HOPE THE MARKETS CONTINUE TO BE STEADY BUT WITH THE INPUT COSTS, WITH FERTILIZERS, A LOT OF FARMERS BUY THEIR FERTILIZER IN THE FALL.

YOU KNOW, I'LL TELL YOU, WHEN I TALKED TO THE FERTILIZER SUPPLIERS AND I SAY, HOW'S THAT LOOKIN', YOU KNOW, AND THEY SAY, NOT GREAT, YOU KNOW, WHETHER THAT MEANS SUPPLY OR WHETHER THAT MEANS PRICE FOR FARMERS, THAT'S CONCERNING BECAUSE OF WHAT'S GOING ON.

YOU KNOW, IN THE MIDEAST AND OTHER PLACES.

YOU KNOW, SO WE'LL SEE WHAT HAPPENS.

YOU KNOW, FARMERS HAVE TO BE OPTIMISTS, BUT THERE IS A LOT OF HEADWINDS RIGHT NOW.

BUT THERE ARE POSITIVES, WITH CORN AND SOYBEANS, BIOFUELS, ETHANOL, THOSE TYPE OF THINGS ARE UP, TOO, AS WELL.

>> Cathy: TARIFFS, THE LAST TIME YOU WERE ON, WE WERE TALKING ABOUT THAT.

IS THAT STILL A CONCERN?

>> TARIFFS ARE -- I THINK PERSONALLY, TARIFFS ARE A BIG CONCERN FOR OUR FARMERS.

AS WE SEE, WE DID NOT RENEW THE U.S.

MCA FOR THE LONG TERM ON JULY 1st.

SO, TO ME, CANADA IS A BIG PARTNER FOR US.

SO, AS WE LOOK AT SOME OF THOSE TRADING ISSUES THAT CREATES UPHEAVAL WITHIN THE MARKET.

FARMERS REALLY NEED SOME STEADY MARKETS.

OUR TRADING PARTNERS NEED TO KNOW THAT WE HAVE A GOOD, STRONG BACKGROUND WITHIN MINNESOTA THAT WE'RE GOING TO BE A STEADY TRADING PARTNER.

AND THERE'S A LOT OF DOUBT IN THAT RIGHT NOW.

>> Eric: A COUPLE OF THINGS THAT HAVE HAPPENED SINCE THE 1980s CRISIS.

ONE IS, WHEN THE FEDERAL AID -- WHEN THE PRICES FOR THE FARMER GOES DOWN, THE FEDERAL AID GOES UP.

AND THEN THE TRUMP ADMINISTRATION HAS HAD BILLIONS OF DOLLARS IN KIND OF ONE-TIME MONEY.

>> YEAH, AND, YOU KNOW, IT'S NOT WHERE FARMERS WANT TO GET THEIR MONEY.

BUT, UNFORTUNATELY, IT'S GOING TO BE NECESSARY FOR SOME FARMERS.

WE LOST 1300 FARMERS IN THE LAST TWO YEARS.

>> Eric: WOW.

>> A LOT OF THAT, TOO, CAN BE KIND OF A SILVER TSUNAMI AND THE BABY BOOMER.

BUT A LOT OF THAT WE KNOW THROUGH MEDIATIONS, BANKRUPTCIES, AND OTHER THINGS, ESPECIALLY CROP FARMERS, THAT THEY'RE STRUGGLING.

YOU KNOW?

>> Cathy: STILL FAMILY FARMERS, SMALL FARMS?

>> UP.

YOU KNOW, AND WE DO HAVE, BY NATURE IN MINNESOTA, FAMILY, 98% OF OUR FARMS ARE FAMILY OWNED.

AND THAT IS CONCERNING ON THE CROP SIDE.

YOU KNOW, THE CATTLE FARMERS ARE DOING VERY WELL.

YOU KNOW, AND, SO, I ALWAYS BALANCE THAT ALL THE TIME.

THOSE PRICES ARE RECORD HIGH RIGHT NOW.

BUT THERE ARE CONCERNS ON THE CROP SIDE FOR SURE.

>> Eric: WHERE DO WE STAND ON THE FEDERAL FARM BILL?

>> YOU KNOW, AND I THINK WE'RE GOING TO SEE, AND THIS WILL BE INTERESTING NEXT WEEK, BECAUSE WE HAVE THE GOVERNOR DEBATE AT FARM FEST ON WEDNESDAY.

AND, YOU KNOW, WE COULD BE DOING THE FARM BILL ON THURSDAY.

AND THAT COULD HAVE IMPORTANT THINGS, LIKE E-15 IN THE SENATE.

SO SENATOR KLOBUCHAR, I KNOW, IS WORKING VERY HARD ON THAT.

THERE'S GOOD THINGS IN THERE FOR MINNESOTA, WHETHER THAT'S CONTINUED ENHANCEMENTS FOR DISASTER-TYPE THINGS, ETHANOL OR E-15, AND ESEARCH, TRADE, A LOT OF DIFFERENT THINGS.

HE SAID YEAH.

>> SO IT'S GOING TO BE AN INTERESTING WEEK, WE COULD FINALLY BE CLOSE TO GETTING THAT DONE.

>> Cathy: OF COURSE, CONGRESS HAS BEEN KICKING THAT CAN DOWN THE ROAD FOR, WHAT, YEARS, RIGHT?

>> YES, IF THEY'RE NOT ABLE TO DO THAT, WE WILL LIKELY HAVE ANOTHER ONE-YEAR EXTENSION.

AGAIN T WOULD BE NICE TO HAVE SOME LONG-TERM -- A LOT OF TIMES WE TALK ABOUT BIPARTISAN ARM BILLS, IT WOULD BE NICE TO SEE THEM GET THAT DONE AND BRING SOME SURE ET CETERA TO OUR FARMERS.

>> Eric: HAVE FUN AT FARM FEST.

SURETY.

>> Cathy: YOUR FAVORITE THING ABOUT FARMEST?

>> SEEING FARMERS FROM EVERY CORNER OF THE STATE, BEING ABLE T