Prairie Grains Jan.-Feb. 98 - Convention Highlights

Issue 11
Jan./Feb. 1998
Minnesota Wheat & Barley
Growers Convention Highlights

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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.

U.S. Wheat Consumption Turnaround

A six-decade slide in U.S. flour consumption bottomed out at 110 pounds in 1972. Since then, flour consumption has zoomed; at a 50-year high of 148 pounds per capita in 1996. The increased flour use equates to an additional demand of about 350 million bushels of wheat per year.
In a private survey compiled in 1997 by the NPD Group, a national market research company that has tracked eating habits for 16 years, sandwiches, pasta, bagels, pretzels, cereal and pizza crust have dominated the list of the decade's fastest-growing food and beverages.
The Wheat Foods Council, charged with raising awareness of wheat foods and increasing the domestic use of wheat, has played a key role in these consumption trends, said Art Brandli, the MWRPC board liaison to the WFC. The WFC is funded in part by state wheat checkoff programs and works in cooperation with the milling and baking industry.
ACS Recognizes MN Wheat Council

The American Cancer Society of Minnesota recognized the Minnesota Wheat Research and Promotion Council, in appreciation of the partnership the two organizations have in promoting a high fiber diet. Wheat bran and whole grains have high insoluble fiber, which plays an important role in the digestive system. Research indicates a high fiber diet has a role in preventing certain cancers, such as colon and breast cancer. "The Minnesota Wheat Council provides the funding for booth fees at county fairs and health fairs, and the American Cancer Society provides the volunteers who not only emphasize good nutrition and high fiber, but also help promote the consumption of wheat products," said Patty Swanson, immediate past chair of the ACS Minnesota Division.
"Including our volunteers and the people we reach in the booths, we are educating about 100,000 people a year about wheat and a healthy diet. That means over the last five years, by working together we've reached about a half million people," said Swanson.
"An Exciting Place To Be"

NAWG Vice President Bill Flory said that with a new long-range plan in place that has identified opportunities for the U.S. wheat industry, and with a new organizational structure in place see these opportunities through, "the NAWG is an exciting place to be."
"Turf wars and battles are history. Interface with industry, researchers, and co-organizations like U.S. Wheat Associates and the Wheat Foods Council have been identified by you the members as being extremely important to your future," said Flory, an Idaho wheat grower.
State, Federal Lawmaker Briefings

Rep. Jim Tunheim (DFL-Kennedy), MN House Ag Committee Chair Stephen Wenzel (DFL-Little Falls), Sen. LeRoy Stumpf (DFL-Thief River Falls) MN Commissioner of Agriculture Gene Hugoson, Congressman David Minge, Congressman Collin Peterson, and Sen. Rod Grams took time to attend the MN Wheat and Barley Convention.
Scab, crop insurance, farm credit, wetlands mitigation, and grain trade are a few of the issues highlighted by Rep. Minge. Last year's poor growing season may mean farm credit challenges for some in 1998, and there may need to be an increase in guarantee authority for federal farm credit, he said.
Minge said rail service has been "abysmal" in 1997. "In my opinion, there's no excuse for it. The railroads need to be held accountable for the problems they're inflicting," he said.
While the federal tax bill passed earlier this year by Congress offers some modest tax relief, it comes at the expense of simplicity in the tax code. Sen. Grams said that the U.S. tax code contains over 10,000 pages. "As Sen. Tim Hutchinson has said, 'that's 10 times larger than the bible, and no good news in it.'" Grams said he is pleased with the capital gains tax relief. "When you are taxed all your working life it is wrong for the Congress to tax what you saved when you die." Taxes are still too high, and still too complex. "We need a different tax system," said Grams.
Rep. Peterson said that he is signed onto three bills that would abolish the IRS and establish a new system. "There's quite a bit of support to sunset the current system by 2001. Several ideas are floating around, including a national sales tax, and a flat tax. It will be healthy to have this debate," he said.
USDA's Weber: Markets will Dictate farm policy after 2002

USDA hopes the next Congress will approve several housekeeping measures to the 1996 Farm Bill, said Bruce Randy Weber, associate administrator of the USDA's Farm Service Agency in Washington, DC. Including a November to August window for advance market transition payments, which would help producers manage land rental arrangements. Also, USDA suggests an extension of the loan rate for up to six months if market prices average below 110%. Haying and grazing of CRP and some farm credit changes are also included on USDA's fix-it list.
Weber pointed out that the 1996 Farm Bill does not end farm policy. If no new farm legislation is introduced after this bill expires in 2002, we revert back to old policy, the 1949 Act. Market conditions will play a key role in influencing which direction U.S. farm policy will head next, he said.
"If we have high prices, there could be a good chance the farm program could end. If prices are low, there might be a program extension. Maybe it would be 'green-related,' tied to conservation efforts, or some level of continuation of the AMTA program," said Weber. "The important thing will be your involvement. This will be a unique opportunity to look at farm policy and come up with recommendations, to say 'here's what we think makes sense for agriculture.'"
Even though the new farm bill means less government involvement in farming decisions, farmers should still be willing to accept the federal government as a partner, "if only to deal with the new world we're in," said Weber.
USDA projects relatively tight wheat stocks through 2005, with wheat prices in 2005 around $4.75. One issue that will need more attention during the market transition is the effect of fluctuating currency values, and how they affect U.S. ag trade. "Imbalances in global currency rates I think presents a problem," said Weber.
1997 MN WHEAT & BARLEY CONVENTION SPONSORS

Agassiz International Travel
AgrEvo
AgriData Inc.
AgriPro Seeds Inc.
AGSCO
Agweek Magazine
American Agrisurance Company
American Coalition for Ethanol
American Malting Barley Assn
BASF
Benson-Quinn
Burlington Northern Railroad
CP Rail Services
Cenex Land O'Lakes
Centrol Crop Consulting
Elf Atochem
Farm Credit Services of Minnesota
Farm Credit Services of North Dakota
Farm & Ranch Guide
Gustafson Inc.
Harvest States Cooperatives
KNOX Radio
Minnesota Barley Council
Minnesota Crop Improvement Assn
Minnesota Wheat Council
Monsanto
North Dakota State Mill & Elevator
Northern Insurance Agents
Northwest Grain
Novartis Crop Protection
Rain & Hail Insurance
Red River Farm Network
Red River Valley Sugarbeet Growers Assn
Rohm & Haas
Seaway Port Authority of Duluth
Zeneca

Copyright Prairie
Grains Magazine January 1998

Issue 11 Jan./Feb. 1998	Minnesota Wheat & Barley Growers Convention Highlights

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.	U.S. Wheat Consumption Turnaround A six-decade slide in U.S. flour consumption bottomed out at 110 pounds in 1972. Since then, flour consumption has zoomed; at a 50-year high of 148 pounds per capita in 1996. The increased flour use equates to an additional demand of about 350 million bushels of wheat per year. In a private survey compiled in 1997 by the NPD Group, a national market research company that has tracked eating habits for 16 years, sandwiches, pasta, bagels, pretzels, cereal and pizza crust have dominated the list of the decade's fastest-growing food and beverages. The Wheat Foods Council, charged with raising awareness of wheat foods and increasing the domestic use of wheat, has played a key role in these consumption trends, said Art Brandli, the MWRPC board liaison to the WFC. The WFC is funded in part by state wheat checkoff programs and works in cooperation with the milling and baking industry. ACS Recognizes MN Wheat Council The American Cancer Society of Minnesota recognized the Minnesota Wheat Research and Promotion Council, in appreciation of the partnership the two organizations have in promoting a high fiber diet. Wheat bran and whole grains have high insoluble fiber, which plays an important role in the digestive system. Research indicates a high fiber diet has a role in preventing certain cancers, such as colon and breast cancer. "The Minnesota Wheat Council provides the funding for booth fees at county fairs and health fairs, and the American Cancer Society provides the volunteers who not only emphasize good nutrition and high fiber, but also help promote the consumption of wheat products," said Patty Swanson, immediate past chair of the ACS Minnesota Division. "Including our volunteers and the people we reach in the booths, we are educating about 100,000 people a year about wheat and a healthy diet. That means over the last five years, by working together we've reached about a half million people," said Swanson. "An Exciting Place To Be" NAWG Vice President Bill Flory said that with a new long-range plan in place that has identified opportunities for the U.S. wheat industry, and with a new organizational structure in place see these opportunities through, "the NAWG is an exciting place to be." "Turf wars and battles are history. Interface with industry, researchers, and co-organizations like U.S. Wheat Associates and the Wheat Foods Council have been identified by you the members as being extremely important to your future," said Flory, an Idaho wheat grower. State, Federal Lawmaker Briefings Rep. Jim Tunheim (DFL-Kennedy), MN House Ag Committee Chair Stephen Wenzel (DFL-Little Falls), Sen. LeRoy Stumpf (DFL-Thief River Falls) MN Commissioner of Agriculture Gene Hugoson, Congressman David Minge, Congressman Collin Peterson, and Sen. Rod Grams took time to attend the MN Wheat and Barley Convention. Scab, crop insurance, farm credit, wetlands mitigation, and grain trade are a few of the issues highlighted by Rep. Minge. Last year's poor growing season may mean farm credit challenges for some in 1998, and there may need to be an increase in guarantee authority for federal farm credit, he said. Minge said rail service has been "abysmal" in 1997. "In my opinion, there's no excuse for it. The railroads need to be held accountable for the problems they're inflicting," he said. While the federal tax bill passed earlier this year by Congress offers some modest tax relief, it comes at the expense of simplicity in the tax code. Sen. Grams said that the U.S. tax code contains over 10,000 pages. "As Sen. Tim Hutchinson has said, 'that's 10 times larger than the bible, and no good news in it.'" Grams said he is pleased with the capital gains tax relief. "When you are taxed all your working life it is wrong for the Congress to tax what you saved when you die." Taxes are still too high, and still too complex. "We need a different tax system," said Grams. Rep. Peterson said that he is signed onto three bills that would abolish the IRS and establish a new system. "There's quite a bit of support to sunset the current system by 2001. Several ideas are floating around, including a national sales tax, and a flat tax. It will be healthy to have this debate," he said. USDA's Weber: Markets will Dictate farm policy after 2002 USDA hopes the next Congress will approve several housekeeping measures to the 1996 Farm Bill, said Bruce Randy Weber, associate administrator of the USDA's Farm Service Agency in Washington, DC. Including a November to August window for advance market transition payments, which would help producers manage land rental arrangements. Also, USDA suggests an extension of the loan rate for up to six months if market prices average below 110%. Haying and grazing of CRP and some farm credit changes are also included on USDA's fix-it list. Weber pointed out that the 1996 Farm Bill does not end farm policy. If no new farm legislation is introduced after this bill expires in 2002, we revert back to old policy, the 1949 Act. Market conditions will play a key role in influencing which direction U.S. farm policy will head next, he said. "If we have high prices, there could be a good chance the farm program could end. If prices are low, there might be a program extension. Maybe it would be 'green-related,' tied to conservation efforts, or some level of continuation of the AMTA program," said Weber. "The important thing will be your involvement. This will be a unique opportunity to look at farm policy and come up with recommendations, to say 'here's what we think makes sense for agriculture.'" Even though the new farm bill means less government involvement in farming decisions, farmers should still be willing to accept the federal government as a partner, "if only to deal with the new world we're in," said Weber. USDA projects relatively tight wheat stocks through 2005, with wheat prices in 2005 around $4.75. One issue that will need more attention during the market transition is the effect of fluctuating currency values, and how they affect U.S. ag trade. "Imbalances in global currency rates I think presents a problem," said Weber. 1997 MN WHEAT & BARLEY CONVENTION SPONSORS Agassiz International Travel AgrEvo AgriData Inc. AgriPro Seeds Inc. AGSCO Agweek Magazine American Agrisurance Company American Coalition for Ethanol American Malting Barley Assn BASF Benson-Quinn Burlington Northern Railroad CP Rail Services Cenex Land O'Lakes Centrol Crop Consulting Elf Atochem Farm Credit Services of Minnesota Farm Credit Services of North Dakota Farm & Ranch Guide Gustafson Inc. Harvest States Cooperatives KNOX Radio Minnesota Barley Council Minnesota Crop Improvement Assn Minnesota Wheat Council Monsanto North Dakota State Mill & Elevator Northern Insurance Agents Northwest Grain Novartis Crop Protection Rain & Hail Insurance Red River Farm Network Red River Valley Sugarbeet Growers Assn Rohm & Haas Seaway Port Authority of Duluth Zeneca
Copyright Prairie Grains Magazine January 1998

Minnesota Wheat & Barley Growers Convention Highlights

U.S. Wheat Consumption Turnaround

ACS Recognizes MN Wheat Council

"An Exciting Place To Be"

State, Federal Lawmaker Briefings

USDA's Weber: Markets will Dictate farm policy after 2002

1997 MN WHEAT & BARLEY CONVENTION SPONSORS

Minnesota Wheat & Barley
Growers Convention Highlights