 |
|
 |
|
|
|
|
|
|
|
|||
News from the Minnesota Association of Wheat |
|||||||||
CROP INSURANCE PASSES AG COMMITTEE Speaking on the behalf of his amendment, Senator Roberts compared agriculture and those Members of Congress from farm states as a large family, with the Chairman being
the head of the family. However, according to Roberts, even the happiest families have disagreements and he was just going to have to disagree with the Chairman on this issue. The majority of the committee
agreed and adopted the Roberts/Kerrey amendment on a vote of 10 to 8. In presenting his arguments for the amendment, Roberts had inserted into the committee's record a letter organized by NAWG and signed by eighteen
agriculture organizations supporting the Roberts/Kerrey language. NAWG has long supported the Roberts/Kerrey approach, which closely resembles NAWG policy. The bill, if adopted, would provide for an inverted
crop insurance premium subsidy in which the federal obligation would increase as farmers "buy up" to higher levels of coverage. "This is a big victory for crop insurance and for NAWG," stated NAWG President
Terry Detrick. "Wheat producers have worked long and hard to bring about today's action. Both Senators Roberts and Kerrey should be recognized and commended for their dedication in seeing this bill through," continued
Detrick. NAWG now plans to lead other agriculture organizations in bringing the bill to the floor of the Senate as soon as possible. Following Senate passage, the bill would then go on to a conference with the
House of Representatives which passed its version of crop insurance reform last year.
GLICKMAN COMMENTS ON POLICY PROPOSAL AT THE AG OUTLOOK CONFERENCE
1) Support total farm income rather than commodity prices. Glickman also added additional short-term measures he could take to help US farmers, such as approving USDA loans for on-farm storage
and by announcing he was going to freeze 2000 marketing loan and loan deficiency payment rates for wheat , corn, soybean, rice and cotton at 1999 levels.
USDA AG ATTACHE ESTIMATES CHINA WILL INCREASE THEIR 2001 WHEAT IMPORTS
AMS NAMES WICKEL GM, AND HAGEN TO HEAD ND GRAIN GROWERS Lance Hagen has been hired as executive director of the North Dakota Grain Growers Association. Hagen farms near
Ellendale, N.D, and served as chief clerk of the North Dakota House of Representatives in the last legislative session. "Lance Hagen's diverse agriculture and business background as well as his political insight
will be a valuable asset to the NDGGA," says Allan Skogen, president of the NDGGA. Hagen replaces Lance Gaebe, recently named executive director of the N.D. Agricultural Products Utilization Commission. Eric
Bartsch, a recent NDSU graduate in crop and weed science, has been named head of the North Dakota Dry Pea and Lentil Association, and the North Dakota Dry Pea and Lentil Council. Bartsch is originally from Velva, N.D.
Bartsch replaces Paul Thomas, who recently accepted a position with the Northern Canola Growers Association. Along with managing the NDGGA, NDDPLA, and the NDDPLC, both Hagen and Bartsch will also work with other
associations and farm groups through Association Management Services, Inc. (AMS). AMS provides administrative, membership, communications, and lobbying services to associations, groups, and start-up companies.
"What we do is provide fully equipped office space, staff, bookkeeping, convention and educational planning, and other organizational services on either a long- term contract or on an as-need basis," says
Barbara Wickel, who was recently named general manager of AMS. Wickel, a Brigham Young University graduate and former executive director of the Wyoming Dental Association and the Wyoming State Board of Dental
Examiners, will oversee the operations of AMS and its accounts, which include the NDGGA, NDDPLA, and NDDPLC. Wickel will also work directly with the North Dakota Buffalo Association.
ONLINE GRAIN EXCHANGE INTENT OF CYBERCROP.COM Market data, ag information, and weather reports will also be included. Market data is currently available on the site with a 10-minute delay, and
when the site is fully activated this summer, regular traders will have free access to real-time market data. "We expect CyberCrop.com to be the first secure Internet site for buyers and sellers to conduct an
online cash grain transaction," says Scott Deeter, CEO, Fort Collins, CO. "CyberCrop.com will create value for farmers by giving them more marketing options for selling their crops, and we believe this will
help maximize farm prices and profits."
AUSTRALIA SETTING EXPORT RECORDS
CANADIAN WHEAT BOARD PROVIDES PRICING FLEXIBILITY TO CANADIAN WHEAT FARMERS
FAMILY FARMS CONTINUE TO BE MOST COMMON N.D. FARM ORGANIZATION
"Individual and family farms continued to represent the majority
NATIONAL ASSOCIATION OF WHEAT GROWERS REPORT FROM WASHINGTON Issue: MM March 3, 2000
NAWG ON THE GO STB HEARS FROM NAWG In a statement to the Surface Transportation Board (STB) NAWG President Terry Detrick, addressed the ever-increasing concentration of railroad marketing power. The
statement asserted that because U.S. wheat production is a major contributor to the U.S. economy, with almost half of the wheat produced in U.S. moving into export channels, efficient and economical transportation
across the country is crucial to providing value to U.S.citizens. The statement has also highlighted the fact that the U.S. has only two major railroads in the West and two major railroads in the East. These rail
lines are far enough apart in a majority of areas to render the U.S. captive to non-competitive monopoly railroads. Detrick stated that the, "U.S. national farm economy does not need a monopoly transportation system
exacting monopoly rents, but rather a finely tuned, competition -driven components at the producer, merchandising, transportation and export levels." He continued, "American farmers want a level playing field, in order
to compete in the world marketing of wheat. Our goal should be to get rid of trading cartels and monopolies so everyone can fairly compete." In his concluding statement, Detrick outlined NAWG's recommendations to
the STB on future rail merger policy. These recommendations include: Not allowing Class I carriers t restrict, through paper barriers, access of shortlines (Class I and III's) to other Class I's; NAWG supports the
efforts of the Alliance for Rail Competition to bring competition and competitive forces back into the nation's railroad system; STB should not approve any future railroad mergers without re-introducing competition into
the railroad system; and NAWG will support the idea that the Montana Wheat & Barley Committee has put forth in this proceeding to setup demonstration projects to study the effects of introducing competition into the
rail industry. NAWG SUPPORTS MODERNIZING UPPER MISSISSIPPI This week, NAWG joined other national organizations in support for the modernization of the Upper Mississippi and Illinois River navigation systems.
Collectively, these rivers are responsible for transporting more than 60 percent of U.S. grain exports valued at over $14 billion annually to coastal ports. In a letter sent to the Army and OMB, NAWG stated that these
waterways "deteriorating locks and dams which are fifteen years beyond their design life and also rapidly reaching their capacity." The letter also stated frustration over the amount of time that the Army Corps of
Engineers has taken in conducting an environmental, engineering and economic study. Specifically, it has taken seven years and cost $54 million dollars to evaluate the feasibility of expanding the capacity of this
navigation system. Although the Army Corps has yet to provide a draft recommendation, a "disgruntled economist in the agency's St. Louis District" has asserted that based upon his economic model developed for this
study, no improvements on the waterway were needed. Although this conclusion has been faulted by other economists and has not been validated by an independent source, environmental groups have demanded that the entire
study should be discontinued. NAWG will continue to follow the developments of this study. NAWG EXPRESSES CONCERN WITH CFTC PROPOSAL In a letter to the Secretary of the Commodity Futures Trading Commission,
Jean Webb, NAWG and other farm and agricultural organizations stated their opposition to a proposed rule that would amend Commission Regulation 1.41. Regulation 1.41 establishes the submission and review procedures for
proposed contract market rules. This includes those related to the terms and conditions of a contract, rules that are not related to terms and conditions, and exempt or emergency rules that may be implemented prior or
simultaneous to filing with the Commission. The proposed rule would allow contract markets to place new rules and rule amendments into effect on the business day following their submission to and receipt by the
Commission and eliminate requirements for prior Commission review of the submission. For commodity producers whose crops or livestock are traded on one or more exchanges, the price discovery function of the market has
significant influence over the realized price obtained from physical commodity sales. Nearly all immediate and delayed pricing contracts for cash sales include pricing elements established through commodity exchange
trading including both futures prices and basis. Therefore, allowing exchanges to change or amend rules without review, public notice or an appropriate time-frame for comment could serve to disadvantage those who commit
to sales contracts based in part on the price discovery and other functions of the futures markets established under one set of rules only to find the rules have changed prior to contract settlement.
THIS WEEK ON CAPITOL HILL CROP INSURANCE PASSES AG COMMITTEE After a lot of time and effort, Senators' Pat Roberts (R-Kansas) and Bob Kerrey (D-Nebraska) crop insurance bill was reported out of the Senate
Agriculture Committee on Thursday. The bill was used as a substitute amendment to replace Agriculture Committee Chairman Richard Lugar's (R-Indiana) crop insurance legislation. The Committee also adopted an amendment by
Senator Tom Harkin (D-Iowa) to require all farmers who participate in crop insurance to develop conservation plans for their operations. Speaking on the behalf of his amendment, Senator Roberts compared agriculture
and those Members of Congress from farm states as a large family, with the Chairman being the head of the family. However, according to Roberts, even the happiest families have disagreements and he was just going
to have to disagree with the Chairman on this issue. The majority of the committee agreed and adopted the Roberts/Kerrey amendment on a vote of 10 to 8. In presenting his arguments for the amendment, Roberts had
inserted into the committee's record a letter organized by NAWG and signed by eighteen agriculture organizations supporting the Roberts/Kerrey language. NAWG has long supported the Roberts/Kerrey approach, which
closely resembles NAWG policy. The bill, if adopted, would provide for an inverted crop insurance premium subsidy in which the federal obligation would increase as farmers "buy up" to higher levels of
coverage. "This is a big victory for crop insurance and for NAWG," stated NAWG President Terry Detrick. "Wheat producers have worked long and hard to bring about today's action. Both Senators Roberts and Kerrey should
be recognized and commended for their dedication in seeing this bill through," continued Detrick. NAWG now plans to lead other agriculture organizations in bringing the bill to the floor of the Senate as soon as
possible. Following Senate passage, the bill would then go on to a conference with the House of Representatives which passed its version of crop insurance reform last year. TRADE NEWS FROM WETEC
WHEAT GROWERS TAKE CHINA PNTR CASE TO THE HILL Testifying in support of PNTR for China, Kress stated, "In order for wheat
producers to realize the full potential of the Chinese market, it is absolutely critical that Congress approves legislation to grant China PNTR as soon as possible." As the rural economy continues to suffer and
legislators look for solutions, Kress advised that "nothing else on the horizon could have such a big impact in the short-term on U.S. wheat exports and the economic stability of wheat producers or hold such
potential for expanded growth in the future." Kress signaled to the committee that failure to approve PNTR "would amount to another self-imposed sanction on the agriculture community out of a major world
market." In concluding the past Chairman stressed, "the Administration must make this an absolute top priority, and not be deterred from the right course by the difficulties of the primary and general
election campaigns. We have heard disturbing opinion expressed that it does not really matter whether PNTR is passed this year - this is absolute folly! The time is now; the opportunity is at hand." Kress warned
the Administration and Congress to "not be lulled by any temporary political advantage into believing that you can always set right next year what you failed to do right today. This is an opportunity we can not
afford to let slip away." THE WHEAT INDUSTRY HOSTS CHINA "WHEAT TEAM" ON THE HILL These
events gave Members of Congress an opportunity to discuss follow through on China's April 1999 Commitments on World Trade Organization (WTO) membership and on steps taken to implement the agreement to allow importation
of U.S. wheat. Members of the House Agriculture Committee took advantage of the meeting to thank the delegation for their purchase of 50,000 MT of Pacific North West wheat and to stress that this is just the beginning
of reopening trade with China. They also discussed the importance of having China in the WTO and signaled a commitment to an early and successful, although difficult, vote on Permanent Normal Trade Relations for
China. The Chinese delegation led by Mr. Sun Zhenyu, Vice Minister of the MOFTEC and Mr. Zhou Ming Chen, President of COFCO both commented on China's dedication to moving forward with their commitment to open trade.
They stressed the importance of the economic opportunities that opening China's market holds for both the Chinese and for U.S. producers. The delegation leaders talked about the importance of the changes taking place in
China towards opening their market to world trade. Hosts Chairman Combest and Representative Stenholm as well as Representatives Greg Walden-Oregon, Marion Berry -Texas and Earl Pomeroy-North Dakota attended the House
reception. CHINA PURCHASES U.S. WHEAT; INCLUDING 30,000MT FROM THE PNW The purchase totaled 50,000mt and is broken down to include three classes of U.S. wheat: 30,000 mt of soft white wheat;
10,000 mt of hard red winter wheat; 10,000 mt of hard red spring wheat. This "trial shipment" will be the first after last April's resolution of a twenty-five year phytosanitary trade dispute between the U.S.
and China. The variety in the shipment will afford Chinese millers the opportunity to sample several classes of U.S. wheat. China is the largest consumer and producer of wheat in the world and has the potential to
again be one of the world's major importers. This purchase is a significant step forward for the U.S.-China trade relationship, and the Chinese have agreed to purchase larger amounts after their accession to the World
Trade Organization (WTO) is complete and Congress grants them permanent normal trade relation status. In a memorandum from Ambassador Peter Scher, the U.S. Trade Representative's Special Ambassador for Agriculture, to
members of the House Ways & Means Committee, the Senate Finance Committee, and the House and Senate Agriculture Committees he stated that "We [USTR] expect product to move expeditiously through Pacific
Northwest ports." NEWS FROM AGRIBUSINESS NEW WEBSITE DEVELOPED FOR FARMERS The "marketplace" will be open 24 - hours a
day, seven days a week. The site will allow farmers to purchase a wide range of crop protection tools, fertilizer, equipment and other supplies. Farmers will also be able to market their crops on-line as well as price
and delivery options from participating suppliers or cash grain bids from competing buyers. Additionally, Rooster.com will offer weather, news and discussion forums and services. In a joint news release, Rooster.com
spokesperson Joe Stone stated, "Rooster.com will be a convenient place for farmers to shop online, with connections to local businesses that provide the services and facilities farmers rely on. We anticipate that
farmers will eventually be able to use the site as a connection to state and federal agencies, commodity organizations and other critical farm links." The site is scheduled to be launched by May 1, 2000, and can be
found at USDA-FAS COMMODITY DONATIONS |
|||||||||
 |
|||||||||
 |
|||||||||