Prairie Grains Nov 97 - News & Views

Issue 10
November 1997
NEWS & VIEWS FROM THE WHEAT AND 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.

Five influences on profitability
I'd like to touch on five influences of profitable wheat production in Minnesota:

1. Scab
This is the number one nemesis to Minnesota wheat growers, and it was the MAWG's number one priority this year at the state and federal levels. I am happy to report success in both arenas. At the state level, we secured $1.6 million over the 1998-99 biennium to continue an accelerated scab research program at the University of Minnesota. At the federal level, we played a key role in obtaining $200,000 in FY97 funding, and $1 million in FY98 funding, for scab research. We already have made inroads on trying to secure funding in the federal FY99 budget for scab. It will take a few years. But if we can hang in there, better crop science will help us get through this. Our dads and grandpas didn't let rust beat them in the 1950s. We can't, and won't, let a fungus beat us now.

2. USWP
Several thousand wheat growers from four states have come together to form a frozen dough cooperative. This is a well-researched venture directed by a proficient, deliberative board and headed by a CEO that formerly was a top manager with a global processing giant. You have to like the chances of this effort. During this time that a business plan is being brought forward, and years from now when the plant is in operation, I hope that USWP never forgets its roots: with the wheat growers associations, which laid the foundation for this value-added spring wheat venture to be built.

3. Crop insurance
Improvements are on the horizon in prevented planting coverage and the nonstandard classification system. A new product, Crop Revenue Coverage, offers protection against reductions in yield and price. Despite the new tires and a coat of paint, however, there are still problems under the hood. Many growers were stung this harvest by spring wheat quality adjustments that didn't take scab and market losses accurately into account. Also, production history keeps declining because of the inadequacy of APH to factor in disaster years. Many growers feel that the poor coverage isn't worth the high premium, and simply don't participate. Crop insurance as an issue is going to swell, and you can count on us to weigh in on it.

4. Jerry and Earl
If you think two farmers can't make a difference, think again. Earl Riopelle of Argyle, MN played a key role in the MAWG's investment in the Red River Farm Network. And for almost a decade, Jerry Nordick, Rothsay, MN, poured his soul into the MAWG, becoming a state and national authority on the farmer's side of environmental issues; leading a wheat and barley steering committee that helped launch USWP; and serving as president during the topsy turvy markup of the 1996 Farm Bill. Both are stepping down from the MAWG board, and both will be missed.

5. "Pathways to Profits"
Why is this the theme of our MAWG convention this year, Nov. 24 at the Ramada Inn in Grand Forks? Because managing the market transition, adopting sound risk management techniques, and understanding and executing key business elements of your farming operation are indeed pathways to profits, and the focus of this year's program. Don't miss it. n
Tim Dufault, Crookston, MN (MN Wheat Growers President)

Rail Service An Issue For Northern Commodities
We've always been at a disadvantage to other parts of the country when it comes to moving grain by rail. Because of longer distances to market, it costs more to ship. Our higher transportation costs mean our cash grain prices seldom approach the futures price. Our northern grain-producing area can be thankful it also has a coal industry; the more track use, the cheaper the freight. Without the movement of coal there would be even less investment in maintaining rail infrastructure than there already is.
Transportation always seems to be an issue around harvest, but it's been an even bigger issue this year, with car shortages, backlogged service, and the storm from the grain trade that stemmed from Burlington Northern Santa Fe's imposition of a tariff to speed up grain loading turnaround at country elevators. More independent and remote country elevators are losing rail service, and those who depend on the rails to move grain complain of poor or delayed service. But ominously enough, they can't complain too loudly to the railroad powers-that-be, or it could get even worse.
Some say the problems were aggravated with the deregulation of railroads in the 1980s. I'm not suggesting a return to tighter rail regulation; that's one for the politicians to debate. But our growing rail problems do suggest a key point: It is imperative in this part of the country to maintain good roads, because trucking is the only competition railroads have got. A strong voice is needed for the continued maintenance of outstate road infrastructure.
Adding value to our bulk commodities will also help, although some products lend themselves better to higher value than others. It's easier and more cost effective to ship sugar instead of sugar beets, for example, but that does not hold true for beer from barley or baked products made from wheat. In those cases, it's better business to process your product where the consumer is, not ship cross country.
Can farmer-owned short line railroads be profitable? They should, if there's enough traffic to justify the track. And short lines would have an advantage over the corporate lines due to cheaper labor costs. In fact, realizing that metro transit in most cities is subsidized, and many highways and waterways are government-assisted, is it outlandish to suggest that governments in ag-dependent areas assist in short-line development in some way? If a study would conclude that doing so would be feasible, even generate revenue, then why not? Transportation generally has been a back-burner issue for most commodity groups. But with a more market-driven agriculture, that may need to change. n

Mike Seeger, Red Lake Falls, MN (Minnesota Barley Council Chairman)

South Dakota Wheat Membership Goal: 2000 in 2000
South Dakota Wheat Inc. has launched two endeavors important to the vitality of our organization. First, we have embarked on an aggressive new membership program, "2000 in 2000." Our goal is to triple the membership in S.D. Wheat Inc. from what it is today to 2,000 members in the year 2000.
I believe producers need, more than ever, involvement in a commodity association. The opportunity for a knowledge-based commodity association to create the future is now. We have set for ourselves an ambitious goal, but in order for us to thrive as individual producers we must speak with one voice to be heard.
To this end, our Association is zeroing in on the needs of members by envisioning and planning for the future. And, we currently are identifying opportunities that will be of key benefit to members.
Separately, SDWI has established the South Dakota Wheat Foundation, a permanently endowed fund within the South Dakota Community Foundation, a public non-profit corporation with permanent assets of over $20 million. The fund's earnings will be used to support the programs of South Dakota Wheat, Inc. A board of directors will oversee fundraising and distribution of earnings.
The South Dakota Wheat Foundation is being established by a founding donation of 500 bushels of wheat from Dennis Anderson of Fort Pierre, S.D. Anderson was President of the S.D. Wheat Producers in 1961 when the wheat checkoff was established. The South Dakota Wheat Foundation will be the beneficiary of those who wish to support the production and promotion of wheat in South Dakota.
An exciting, successful future for wheat is being built in South Dakota, and I hope all S.D. wheat growers become a part of it. n

Tom Young, Onida, SD (SD Wheat Inc. President)

MN Wheat Research Reporting Session Nov. 24
Try to get to the Minnesota Wheat Research Reporting Session November 24, at the Ramada Inn in Grand Forks. There will be updates on wheat research projects funded in part by the Minnesota Wheat Checkoff.
Several key topics will be discussed: the effects of residue management on wheat diseases, soil fertility issues, wheat research programs at the West Central Experiment Station, updates on breeding new varieties for scab resistance, and using molecular genetics to research scab.
There will also be a summary of the 1997 regional hard red spring and durum wheat quality survey. This is another program funded by the wheat checkoff. Every harvest, samples of spring wheat and durum are taken in the Northern Plains, and the quality is analyzed. A quality summary is put together in the form of a report, and these findings are reviewed at meetings held for prospective wheat buyers from around the world. One point from the 1997 survey: the milling and baking characteristics of U.S. hard red spring wheat were up this year as a whole, and that's a plus.
The uniqueness of how Minnesota wheat checkoff-funded research projects are identified and prioritized by the Small Grains Research and Communications Committee was featured in testimony given during hearings last summer on the reauthorization of federal research programs. The Committee is represented by a cross-section of the industry, including state and federal crop scientists, a member of the media, agri-business, and growers, including Tom Anderson of Barnesville, MN. Tom has spent a lot of time this past year on educating state and federal officials about the need for scab research, and he deserves our thanks. n

Cliff Keller, Fergus Falls, MN (MN Wheat Council Chairman)

A Better Answer to Coffee Shop Talk
The challenges grain farmers are facing have been many this year. It has included drought, scab, imports, and low prices for the grain we raise just to name a few, thus making it hard to turn a profit in an industry that already allows for only marginal returns.
Our ability to solve these problems will determine our future profitability. Currently, one solution to our problems is to go to the local café and talk about how bad things are with our neighbors. Of course after that last cup of coffee we have all the answers to farming and world problems. Trouble is, those suggestions usually get left at the table and aren't passed along to make a difference. So what has this method of dealing with issues accomplished? Aside from venting, absolutely nothing.
A better approach to work on solutions for farm problems is to purchase or renew a membership in NDGGA. Your membership will not guarantee that all problems affecting farming will disappear before the next growing season. However, it does mean that your concerns are being voiced to people who can provide help in finding positive solutions to these problems. At this point you're making a difference, not just irritating the waitress.
By investing $95 in a one year membership, which is about equal to hiring someone at minimum wage for 20 hours, you have your concerns represented at meetings year-round with policy decision makers. In 1997, the policy meetings were extensive.
From five statewide educational meetings last March on Crop Revenue Coverage and CRP, to our spring Environmental Tour to educate Congressional and federal regulatory staff on agricultural/environmental issues. From the August Ag Foundation Congressional Staff Tour to July 31 testimony in Washington D.C. before the House Ag Committee on Canadian grain imports. From our meeting with USDA's Miley Gonzalez on scab in Grand Forks, to our co-hosting of a Prairie Pothole Region tour this fall, to educate the soon-to-be NRCS Swampbuster head on agricultural problems associated with wetlands.
In just the past month and a half the NDGGA has addressed issues concerning conservation, research, trade, shipping, and crop insurance to name just a few. Successes have ranged from an emergency exemption for the use of Folicur on wheat last summer for scab suppression, to new federal dollars to fight scab.
Your concerns are also heard on a national level through the National Association of Wheat Growers and the National Barley Growers Association, which work to represent your concerns on the national front. Your membership dues only cost you 26 cents per day. If you were going to represent your own interests on your own time, how much would it cost you?
Putting the cost of membership into perspective, that 26 cents per day is about half the cost of a cup of coffee at most coffee shops. No one can argue that rather than spend 50 cents on coffee to sit daily at the café and gripe amongst ourselves about farm problems, that it is worth far more to invest 26 cents per day in a NDGGA membership, to be in the seat at a table where policy decisions are made.
Join the NDGGA. Establish a voice in setting priorities for your organization in the coming year. Seize the opportunities to be heard and make a difference, by attending the upcoming Speak-Ups scheduled for various locations throughout the state in November, and the annual convention December 10th in Bismarck. n

Mark Gage, Page, ND (NDGGA Vice President)

Copyright Prairie
Grains Magazine
November 1997

Issue 10 November 1997	NEWS & VIEWS FROM THE WHEAT AND 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.	Five influences on profitability I'd like to touch on five influences of profitable wheat production in Minnesota: 1. Scab This is the number one nemesis to Minnesota wheat growers, and it was the MAWG's number one priority this year at the state and federal levels. I am happy to report success in both arenas. At the state level, we secured $1.6 million over the 1998-99 biennium to continue an accelerated scab research program at the University of Minnesota. At the federal level, we played a key role in obtaining $200,000 in FY97 funding, and $1 million in FY98 funding, for scab research. We already have made inroads on trying to secure funding in the federal FY99 budget for scab. It will take a few years. But if we can hang in there, better crop science will help us get through this. Our dads and grandpas didn't let rust beat them in the 1950s. We can't, and won't, let a fungus beat us now. 2. USWP Several thousand wheat growers from four states have come together to form a frozen dough cooperative. This is a well-researched venture directed by a proficient, deliberative board and headed by a CEO that formerly was a top manager with a global processing giant. You have to like the chances of this effort. During this time that a business plan is being brought forward, and years from now when the plant is in operation, I hope that USWP never forgets its roots: with the wheat growers associations, which laid the foundation for this value-added spring wheat venture to be built. 3. Crop insurance Improvements are on the horizon in prevented planting coverage and the nonstandard classification system. A new product, Crop Revenue Coverage, offers protection against reductions in yield and price. Despite the new tires and a coat of paint, however, there are still problems under the hood. Many growers were stung this harvest by spring wheat quality adjustments that didn't take scab and market losses accurately into account. Also, production history keeps declining because of the inadequacy of APH to factor in disaster years. Many growers feel that the poor coverage isn't worth the high premium, and simply don't participate. Crop insurance as an issue is going to swell, and you can count on us to weigh in on it. 4. Jerry and Earl If you think two farmers can't make a difference, think again. Earl Riopelle of Argyle, MN played a key role in the MAWG's investment in the Red River Farm Network. And for almost a decade, Jerry Nordick, Rothsay, MN, poured his soul into the MAWG, becoming a state and national authority on the farmer's side of environmental issues; leading a wheat and barley steering committee that helped launch USWP; and serving as president during the topsy turvy markup of the 1996 Farm Bill. Both are stepping down from the MAWG board, and both will be missed. 5. "Pathways to Profits" Why is this the theme of our MAWG convention this year, Nov. 24 at the Ramada Inn in Grand Forks? Because managing the market transition, adopting sound risk management techniques, and understanding and executing key business elements of your farming operation are indeed pathways to profits, and the focus of this year's program. Don't miss it. n Tim Dufault, Crookston, MN (MN Wheat Growers President) Rail Service An Issue For Northern Commodities We've always been at a disadvantage to other parts of the country when it comes to moving grain by rail. Because of longer distances to market, it costs more to ship. Our higher transportation costs mean our cash grain prices seldom approach the futures price. Our northern grain-producing area can be thankful it also has a coal industry; the more track use, the cheaper the freight. Without the movement of coal there would be even less investment in maintaining rail infrastructure than there already is. Transportation always seems to be an issue around harvest, but it's been an even bigger issue this year, with car shortages, backlogged service, and the storm from the grain trade that stemmed from Burlington Northern Santa Fe's imposition of a tariff to speed up grain loading turnaround at country elevators. More independent and remote country elevators are losing rail service, and those who depend on the rails to move grain complain of poor or delayed service. But ominously enough, they can't complain too loudly to the railroad powers-that-be, or it could get even worse. Some say the problems were aggravated with the deregulation of railroads in the 1980s. I'm not suggesting a return to tighter rail regulation; that's one for the politicians to debate. But our growing rail problems do suggest a key point: It is imperative in this part of the country to maintain good roads, because trucking is the only competition railroads have got. A strong voice is needed for the continued maintenance of outstate road infrastructure. Adding value to our bulk commodities will also help, although some products lend themselves better to higher value than others. It's easier and more cost effective to ship sugar instead of sugar beets, for example, but that does not hold true for beer from barley or baked products made from wheat. In those cases, it's better business to process your product where the consumer is, not ship cross country. Can farmer-owned short line railroads be profitable? They should, if there's enough traffic to justify the track. And short lines would have an advantage over the corporate lines due to cheaper labor costs. In fact, realizing that metro transit in most cities is subsidized, and many highways and waterways are government-assisted, is it outlandish to suggest that governments in ag-dependent areas assist in short-line development in some way? If a study would conclude that doing so would be feasible, even generate revenue, then why not? Transportation generally has been a back-burner issue for most commodity groups. But with a more market-driven agriculture, that may need to change. n Mike Seeger, Red Lake Falls, MN (Minnesota Barley Council Chairman) South Dakota Wheat Membership Goal: 2000 in 2000 South Dakota Wheat Inc. has launched two endeavors important to the vitality of our organization. First, we have embarked on an aggressive new membership program, "2000 in 2000." Our goal is to triple the membership in S.D. Wheat Inc. from what it is today to 2,000 members in the year 2000. I believe producers need, more than ever, involvement in a commodity association. The opportunity for a knowledge-based commodity association to create the future is now. We have set for ourselves an ambitious goal, but in order for us to thrive as individual producers we must speak with one voice to be heard. To this end, our Association is zeroing in on the needs of members by envisioning and planning for the future. And, we currently are identifying opportunities that will be of key benefit to members. Separately, SDWI has established the South Dakota Wheat Foundation, a permanently endowed fund within the South Dakota Community Foundation, a public non-profit corporation with permanent assets of over $20 million. The fund's earnings will be used to support the programs of South Dakota Wheat, Inc. A board of directors will oversee fundraising and distribution of earnings. The South Dakota Wheat Foundation is being established by a founding donation of 500 bushels of wheat from Dennis Anderson of Fort Pierre, S.D. Anderson was President of the S.D. Wheat Producers in 1961 when the wheat checkoff was established. The South Dakota Wheat Foundation will be the beneficiary of those who wish to support the production and promotion of wheat in South Dakota. An exciting, successful future for wheat is being built in South Dakota, and I hope all S.D. wheat growers become a part of it. n Tom Young, Onida, SD (SD Wheat Inc. President) MN Wheat Research Reporting Session Nov. 24 Try to get to the Minnesota Wheat Research Reporting Session November 24, at the Ramada Inn in Grand Forks. There will be updates on wheat research projects funded in part by the Minnesota Wheat Checkoff. Several key topics will be discussed: the effects of residue management on wheat diseases, soil fertility issues, wheat research programs at the West Central Experiment Station, updates on breeding new varieties for scab resistance, and using molecular genetics to research scab. There will also be a summary of the 1997 regional hard red spring and durum wheat quality survey. This is another program funded by the wheat checkoff. Every harvest, samples of spring wheat and durum are taken in the Northern Plains, and the quality is analyzed. A quality summary is put together in the form of a report, and these findings are reviewed at meetings held for prospective wheat buyers from around the world. One point from the 1997 survey: the milling and baking characteristics of U.S. hard red spring wheat were up this year as a whole, and that's a plus. The uniqueness of how Minnesota wheat checkoff-funded research projects are identified and prioritized by the Small Grains Research and Communications Committee was featured in testimony given during hearings last summer on the reauthorization of federal research programs. The Committee is represented by a cross-section of the industry, including state and federal crop scientists, a member of the media, agri-business, and growers, including Tom Anderson of Barnesville, MN. Tom has spent a lot of time this past year on educating state and federal officials about the need for scab research, and he deserves our thanks. n Cliff Keller, Fergus Falls, MN (MN Wheat Council Chairman) A Better Answer to Coffee Shop Talk The challenges grain farmers are facing have been many this year. It has included drought, scab, imports, and low prices for the grain we raise just to name a few, thus making it hard to turn a profit in an industry that already allows for only marginal returns. Our ability to solve these problems will determine our future profitability. Currently, one solution to our problems is to go to the local café and talk about how bad things are with our neighbors. Of course after that last cup of coffee we have all the answers to farming and world problems. Trouble is, those suggestions usually get left at the table and aren't passed along to make a difference. So what has this method of dealing with issues accomplished? Aside from venting, absolutely nothing. A better approach to work on solutions for farm problems is to purchase or renew a membership in NDGGA. Your membership will not guarantee that all problems affecting farming will disappear before the next growing season. However, it does mean that your concerns are being voiced to people who can provide help in finding positive solutions to these problems. At this point you're making a difference, not just irritating the waitress. By investing $95 in a one year membership, which is about equal to hiring someone at minimum wage for 20 hours, you have your concerns represented at meetings year-round with policy decision makers. In 1997, the policy meetings were extensive. From five statewide educational meetings last March on Crop Revenue Coverage and CRP, to our spring Environmental Tour to educate Congressional and federal regulatory staff on agricultural/environmental issues. From the August Ag Foundation Congressional Staff Tour to July 31 testimony in Washington D.C. before the House Ag Committee on Canadian grain imports. From our meeting with USDA's Miley Gonzalez on scab in Grand Forks, to our co-hosting of a Prairie Pothole Region tour this fall, to educate the soon-to-be NRCS Swampbuster head on agricultural problems associated with wetlands. In just the past month and a half the NDGGA has addressed issues concerning conservation, research, trade, shipping, and crop insurance to name just a few. Successes have ranged from an emergency exemption for the use of Folicur on wheat last summer for scab suppression, to new federal dollars to fight scab. Your concerns are also heard on a national level through the National Association of Wheat Growers and the National Barley Growers Association, which work to represent your concerns on the national front. Your membership dues only cost you 26 cents per day. If you were going to represent your own interests on your own time, how much would it cost you? Putting the cost of membership into perspective, that 26 cents per day is about half the cost of a cup of coffee at most coffee shops. No one can argue that rather than spend 50 cents on coffee to sit daily at the café and gripe amongst ourselves about farm problems, that it is worth far more to invest 26 cents per day in a NDGGA membership, to be in the seat at a table where policy decisions are made. Join the NDGGA. Establish a voice in setting priorities for your organization in the coming year. Seize the opportunities to be heard and make a difference, by attending the upcoming Speak-Ups scheduled for various locations throughout the state in November, and the annual convention December 10th in Bismarck. n Mark Gage, Page, ND (NDGGA Vice President)
Copyright Prairie Grains Magazine November 1997

NEWS & VIEWS FROM THE WHEAT AND BARLEY GROWERS

Copyright Prairie Grains Magazine November 1997

Copyright Prairie
Grains Magazine
November 1997