News & Views from the Wheat & Barley Growers

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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.

Here’s a little-known but highly significant news item from a recent issue of the Manitoba Co-operator: Warburtons, the largest independent bakery in the United Kingdom with 5,000 employees and 320 retail stores, contracted as an experiment last year three specific registered varieties of Canadian spring wheat through the Manitoba Pool Elevator system.

The Pool in turn contracted with farmers at five elevators in western Manitoba to grow about 30,000 tons of the three Canadian varieties Warburtons prefers in making its premium breads. Field samples were collected and shipped to Warburtons last fall, and the wheat that met the company’s specifications was identity preserved throughout Canada’s handling and transportation system. The wheat was exported to the UK through Thunder Bay.

For the extra effort, farmers were paid a $30 per ton (82 cents/bushel) premium on top of what they will receive through the Canadian Wheat Board, which supported the project as a niche-market activity. The project is being evaluated and will likely continue again in 1996.

It’s exciting to see that the identity-preserved concept can work, in a win-win situation for the spring wheat producer and the end user. We have a right to feel envious that this didn’t occur on our side of the border, but many more premium bread-wheat users exist in the world, and maybe we can use the example as a catalyst to establish our own such arrangements.

-- Paul Aasness, Chairman, MN Wheat Research and Promotion Council, Fergus Falls, MN

Issues "Cooking" at the NDGGA

Working on the new farm bill has taken up much of our time at the NDGGA. The process of writing it hasn’t been the same as the past, partly because there were virtually no public hearings on the bill. Further, it’s been difficult to find accurate budget numbers. What is apparent about this bill is that it is being written with as much input from the money counters as from us in production agriculture.

I attended the Canadian Wheat Growers Convention in Regina recently. The marketing picture seems to have changed for the Canadian producer. Last year he wanted to sell his crop into the U.S. This year with stronger world markets, he wants to find a better way to deliver his crop overseas. That means gaining access to our ports to deliver his grain for export.

We are seeing progress in our work to promote value-added agriculture in the northern region. The time is right to move ahead and gain a new position in the food chain. We encourage continual grower input on all that the NDGGA is involved with today. We can make a difference in agricultural policy; keep in touch.

-- John Cook, NDGGA president, Mohall, ND

NBGA supports FTF, conditionally

The barley growers have been going through a tough year politically, trying to come up with a united stand on a farm bill that will meet the budget requirements and the political philosophy on both sides of the aisle. Minnesota Barley would like to have had a meaningful marketing loan, but the money was not to be found. We, the Minnesota Barley Growers, have been working very hard with our 7th District Congressman, Collin Peterson, to see what the realistic possibilities are. Mr. Peterson has been very helpful and has given us an opportunity to educate House Ag Chair Pat Roberts and others to the problems of barley.

After careful review of all farm bill options, the National Barley Growers Association came out in support of the Freedom to Farm bill as passed through conference committee because of its flexibility and immediate economic support to barley producers, provided that, 1) the loan rate cap be removed; 2) the USDA

Secretary has discretion to extend loan terms from nine to 18 months; 3) interest rates on loans be calculated using the current formula; 4) EEP be fully funded at GATT-negotiated levels with any unused funds to be paid back directly to producers of the affected commodity; and 5) permanent farm program provisions be retained.

The NBGA also recommends that Congress establish a guaranteed investment program to assist in investing in value-added cooperatives.

-- Gerald Lacey, President, Minnesota Barley Growers Association, Campbell, MN

Crop situation underscores ag research importance

Wheat is the most consumed food grain in the world, supplying about 20 percent of the world’s dietary needs. Put in perspective, that’s about the same as saying one billion people rely on wheat to live.

But there are no more than 500 wheat breeders in the world today working to develop better varieties, and only about 40 public and private breeders in the U.S., according to estimates by U of M small grains specialist, Jochum Wiersma.

In 1994, the federal government spent $66.5 billion on research and development, of which 57 percent was on national defense. Of the non-defense federal R&D budget, the largest share went for health research at 37 percent, followed by science and space at 32 percent. Federal ag research was at 4 percent, according to the USDA. Kansas State University wheat breeder Rollie Sears once said that, "we sometimes need to take a step back and realize those fields we drive by are fields of food, not wheat." That quote should be engraved on plaques and sent to all who could impact research spending, including lawmakers and end users.

The scab outbreak illustrated how important a commitment to ag research is, in safeguarding the region’s economic well-being and in upholding our leadership role in feeding the people of the world. Perhaps the tight grain stocks situation worldwide, caused in part by production problems, will lead to a more far-reaching valuation of ag research.

--Jerry Kruger, MAWG board member, Warren, MN

Barley wake-up call

Over the last few years, barley was the crop people seemed to hate; this spring may be barley’s turn to wake up," says Brad Paulson, with Progressive Ag Marketing, Fargo. Paulson says U.S. barley acreage peaked in 1986, and acreage has been declining over the last few years. However, that may change in 1996. More farmers, especially in western ND and SD who have fewer planting options, may increase barley plantings on their flex acres. He says that barley ending stocks are projected to be tight, "and I don’t think the malting industry is bought too far ahead either."

U.S. barley acreage could increase by 5 percent to as much as 10 percent in 1996, with Canada seeing the same level of increase. Watch the fine print in signing malting barley contracts next season, Paulson warns. As some growers learned last year, there are quality requirements that if not met, may result in discounts.

Traders are watching dryness in the hard red winter wheat growing area, but they do realize that the window for better weather is still large. Freeze damage was critical last year, and it will be a factor traders will watch for again next April-May, when the winter wheat crop breaks dormancy.

Paulson says that farmers should strive to consistently sell in the upper one third of the market; it is a more achievable goal than gunning for the top.