April/May 1997
News & Views from the
Wheat & Barley Growers
Library
Home
E-Mail
Back
Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.
Canadian Farmers Preserve CWB Barley Selling
Canadian farmers last month voted whether to keep their current single-desk system, or opt for an open market. A majority, close to 63%, voted in favor of keeping barley export marketing under the current Canadian Wheat Board. I think you'll find a mixed reaction to this vote here in the United States. On one hand, it does prevent a potential influx of Canadian barley from coming across the border. On the other, it preserves a state trading enterprise (STE) that has been questioned for causing shenanigans in the export market.
I don't know whether that 37% on the losing end of the vote will keep trying for an open market. I know that STEs remain an unresolved issue for the World Trade Organization, the successor to GATT. Further, our grain disputes with the Canadians have gone on far too long, and we need to start cooperating more. Perhaps it's time for a North American Grain Trade Summit, with two rules: 1) no griping and finger pointing 2) no one leaves the room until we come up with solutions to work together.
Gerald Lacey, Campbell, MN
Minnesota Barley Growers Assn. President
Lawmakers Find Lobby Groups information Source
The legislative assistant in Washington D.C. who handles agricultural issues for Sen. Paul Wellstone was formerly the ag staffer for Sen. Paul Simon, now retired. Her impressions of the Minnesota ag constituency so far: Minnesota has more educated, diversified, grassroots ag representation than Illinois, which she said is dominated by Farm Bureau, corn, hogs, and soybean interests.
Every March several of us on the MAWG board make it a point to visit in person with members of our Congressional delegation and their staff, as well as USDA officials and other key contacts. We brief them on the issues that are important to wheat growers, and almost always, the officials and lawmakers we meet with are open and responsive to the points and policy suggestions we have.
Our wheat associations often aren't viewed as lobbying groups, but as good sources of information representing grassroots views. This premise was echoed in a Grand Forks Herald article during the North Dakota legislative session, where several lawmakers said that regardless of how much politicians talk to voters, their greatest source of information is the lobbyists and interest groups who provide testimony and documents on both sides of issues. One lawmaker in the article said that lobbyists aren't high-pressure people, and don't fit the public image of sharpies in expensive suits, talking about campaign contributions.
Some may say that information from "special interest groups" is biased, but from the MAWG's standpoint, I can tell you that continual credibility is a foremost goal, and providing misleading information would only hurt a lobbying organization.
When the MAWG visits lawmakers and officials, we are doing what our collective membership wants us to do: to simply tell the wheat grower's side of the story.
Tim Dufault, Crookston, MN
Minnesota Assn. of Wheat Growers President
Global marketplace like leafy spurge
You might not think that global grain trading and leafy spurge have anything in common, but they do. If you're a landowner working fervently to control leafy spurge on your property, you'll be a bit frustrated with the guy across the fence line, whose adjacent land remains untreated and ablaze with the yellow noxious stuff every summer.
Enter the same frustration, watching countries continue to subsidize their exports and sell grain at garage-sale prices, as we rein in the export enhancement program and enter a new market transition.
The North Dakota Grain Growers Association was one of the first supporters of the market transition, "Freedom to Farm" concept in the new farm bill. Politically, this was the best hand agriculture could expect to be dealt from Capitol Hill. The net value of the fixed payments would be equal to or better than the old system. Further, it made business sense. The new flexibility or decoupling of payments from production would allow farmers to operate in a production environment that would be much more responsive to market factors.
Let's not forget, however, the linchpin needed for farmers to succeed upon completion of the market transition - equitable global trade. "Level playing field" has been talked about for so long that it's a cliché. Be that as it may, the phrase sums up an international policy objective that has yet to be reached, and it will likely be a key factor in determining where our domestic farm policy will head after 2002.
Single-desk grain boards such as those in Canada and Australia, continue their back-alley selling ways. And bear in mind that under the General Agreement on Tariffs and Trade, no country agreed to eliminate grain subsidies; only reduce them. The amount of grain for export that can be subsidized must be reduced by 21% in six equal installments by the year 2000. As well, export subsidy expenditures must be reduced by 36%.
This means that countries can still subsidize up to 79% of wheat export shipments at up to two-thirds the pre-GATT subsidy payment price when the agreement is fully phased in. Further, the European Union will still maintain a six-to-one advantage in terms of allowable ag export subsidy spending.
U.S. farmers can compete with anyone after the market transition is complete. But not unless the other guys clean up the spurge on their side of the fence.
Lowell Berntson, Kulm, ND
North Dakota Grain Growers Association President
Sustaining the Spring Wheat Breeding Program in Minnesota
On average, Minnesota ranks among the top six states in the nation in all-wheat production. The wheat industry typically contributes about $1.3 billion to Minnesota's economy, according to a 1994 study. Each acre of wheat planted in Minnesota generates close to $11 in tax revenue, and each bushel of wheat produced in Minnesota generates about $11 in total economic activity. Every 182 acres of wheat planted or 7,900 bushels of wheat harvested in Minnesota supports one secondary full-time equivalent job.
However, despite this prominence, did you know that Minnesota is the only state out of the top 20 major wheat-producing states that does not have a state-designated wheat breeder?
We do have Dr. Robert Busch, at the University of Minnesota Campus. However, Dr. Busch is employed by the USDA's Agricultural Research Service. And technically, he is a wheat geneticist, not a wheat breeder. A wheat geneticist conducts basic research, which mainly involves the screening of germplasm. A wheat breeder takes basic germplasm screening work a step further, and applies it to develop new public varieties for farmers to grow.
Over the years Dr. Busch has been wearing two hats as wheat geneticist and wheat breeder, coordinating regional germplasm screening efforts and also working with the U of M to release wheat varieties in Minnesota. However, Dr. Busch will soon retire, putting Minnesota's public wheat breeding program in jeopardy if he is not replaced.
Now is the time to prepare for Dr. Busch's retirement so that we can maintain the current program, if not enhance it. Thus, Minnesota's wheat industry has proposed a partnership to fund a state breeding program located at the Northwest Experiment Station in Crookston.
Under the proposal, the State Legislature would fund a breeding position and the industry would cover the operating costs which would include equipment, technicians, travel and program costs.
State and national wheat yield trends have not increased over the last eight to 10 years. Further, state and national wheat yields have lagged behind corn and soybean yield trends over the last 25 years. A cooler, more humid climate translates into spring wheat growing conditions that differ in Minnesota compared to other spring wheat production areas of the country. That said, we need a spring wheat breeding program that is tailored to the spring wheat production needs unique to this state.
Cliff Keller, Fergus Falls, MN
Chairman, Minnesota Wheat Council
South Dakota Wheat Exec Bids Farewell
Growing up on a farm northwest of Gettysburg, I became addicted to the lifestyle and satisfaction that goes from spring calving through fall harvest. My mom and dad taught me that with dedication (some might call it stubbornness) you can do anything. From my grandfather, I learned that tossing in a little mischief makes any job enjoyable. I also knew that I wanted to stay involved in agriculture; I just didn't know how.
But I got my answer and an opportunity of a lifetime when I was hired as executive director of SD Wheat, Inc. It was a job in agriculture, a great challenge, and I even got paid for it. Right out of college I went on a steep learning curve, but thanks to 20-plus board member bosses, wonderful co-workers and very supportive family and friends, I have grown, mastered many skills, and have learned not to take myself too seriously.
As executive director I have had the opportunity to meet foreign delegates and wheat customers, lobby in our nation's capitol, teach kids, make an impact for the ag community, live through 10 state conventions, and make friends that will last a lifetime.
One has to expect a changing of the guard every once in awhile, however, and I am looking forward to new ag frontiers in my new job as executive secretary of the SD Association of Cooperatives.
I leave SD Wheat with a sense of accomplishment. Of everything I have learned, the most important has been to get involved. We can and do make a difference. It's in the best interest of producers to be involved and support the industry and organizations that are dedicated to promoting their well being. That includes SD Wheat Inc, the NAWG, SD Wheat Commission, U.S. Wheat Associates and the Wheat Foods Council.
The American wheat farmer is what makes a lot of other industries thrive. We are the breadbasket of the world. What we do and say, how we act and react, and what we support or remain silent about all has an impact. Don't ever question for a moment the importance of the time and money you put into your organization, for as a group of wheat producers you rank among the most important businesses in the world. Good luck, thank you and God bless.
Brenda Forman, former Executive Director, SD Wheat Inc.
Executive Secretary, SD Association of Cooperatives