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News from the Minnesota Association of Wheat
Growers for Friday, April 28,  2000

GLICKMAN LEADS PRESIDENTIAL DELEGATION TO CHINA
Agriculture Secretary Dan Glickman leads a week-long Presidential Delegation to China. The delegation will visit Beijing, Shanghai, and Hong Kong to discuss and learn more about U.S.-China relations, additional U.S. export opportunities, and China's commitment to market-opening agreements and international trade rules. The delegation will include five American elected officials: Rep. Norman Dicks (D-WA), Rep. Ruben Hinojosa (D-TX), Rep. Gregory Meeks (D-NY), Rep. Greg Walden (R-OR), and Governor Edward Schafer (R) of North Dakota. The Chinese market is now worth more than $1 billion per year to American farmers and ranchers. USDA projections indicate that after China is granted permanent normal trade relations (PNTR) and joins the World Trade Organization, U.S. farm exports to China will increase by $2 billion per year by 2005. Read more at www.usda.gov

 

 

FARMLAND CEO URGES CONGRESS TO VOTE TO CHINA PNTR
The U.S. Congress needs to approve permanent Normal Trade Relations (PNTR) status for China in order to help the U.S. lower the trade deficit it has with China, according to Farmland Industries, Inc., CEO H.D. "Harry" Cleberg..

"The best way to deal with the trade deficit is to lower trade barriers to foreign markets for American agricultural products, goods and services," Cleberg told the U.S. Trade Deficit Commission.

Cleberg stressed that an important step America can take to reduce its trade deficit is for Congress to approve PNTR for China, which would allow the United States to reap the benefits of China's accession into the World Trade Organization (WTO).  Read more at www.profarmer.com

 

 

CHINA BUYS SOUTH  AMERICAN SOYBEANS
HONG KONG,April 28 (Reuters)
China bought several cargoes of South American soybeans at $221 a tonne C&F China for prompt shipment as futures prices in Chicago fell overnight, traders said on Friday, according to a Reuters article.
"Chinese buyers stepped into the market because of the price drop," a trader said. "Some are really eager to book shipments because they are concerned the market will keep going up."

A trader said there was talk China also bought two shipments of U.S. soybeans at $230 a tonne C&F, but these purchases were not confirmed. Another trader said he had doubts about the purchase of the higher priced U.S. soybeans.

The soybean buying by China came as the supply of soymeal dwindled and the domestic soymeal price rose in China's producing areas in the north to more than 2,000 yuan ($241) a tonne, traders said.

 

 

CHILE FEBRUARY WHEAT IMPORTS SOAR
SANTIAGO, April 27 (Reuters) - Chile imported 26,440 tonnes of bread wheat in February compared with 7,780 tonnes in the same month last year, the agriculture ministry said in an April report, according to a Reuters article.

In January-February 2000, Chile did not import any durum wheat, which is commonly used for pasta, it said, adding that the country imported 1,298 tonnes of durum wheat in January-February 1999 for $156,000.  Imports of bread wheat in the first two months of this year totaled $4.82 million compared with $5.18 million in the same period in 1999, it said.  Also in the first two months of this year, Chile imported 575 tonnes of wheat flour for $115,000 versus 935 tonnes for $218,000 in January-February 1999.

The United States, Canada and Argentina are the main suppliers of wheat to Chile.

Chile resumed importing U.S. wheat in calendar year 1998. It had halted imports in March 1996 because of a fungus known as Karnal bunt, found in the southwestern United States. The fungus, which caused the wheat to smell bad, also reduced yields. Chile reversed its decision in October 1997.

The agricultural year for Chilean wheat runs from April to March. Planting takes place between April and October, and the harvest runs from December to March.

 

 

CORN SURVEY HIGHLIGHTS 1999 MANAGEMENT STRATEGIES
April 27, 2000
A survey of corn growers from North Dakota, southeastern South Dakota and west- central Minnesota shows that weed problems varied considerably in 1999. Likewise, producers relied on an array of herbicides to control weeds.

"Responses varied greatly as to what the top-three weed problems were for 1999, but about 25 percent of the farmers did harbor a grudge against foxtail (pigeongrass)," says Denise McWilliams, extension crop production specialist for North Dakota State University and the University of Minnesota.

When deciding on the top three weed problems, the corn farmers responding to the survey varied greatly in their choices.

For more information about the survey, contact the North Dakota Corn Growers Association at (701) 293-7467 or Denise McWilliams at (701) 231-8160. Read the complete article at http://www.ext.nodak.edu/extnews/

 

 

HARVEST RECOMMENDATIONS FOR PRIME ALFALFA HAY CHANGE WITH WETTER CONDITIONS
April 27, 2000
The latest research on alfalfa quality at North Dakota State University is showing that in wetter years, making harvest decisions based on plant height and plant maturity rather than on plant maturity alone may result in a consistently higher relative feed value (RFV) in the field--which translates into higher-quality alfalfa in the bale.

"In order to be considered prime hay, alfalfa in the bale must have an RFV of 151 or greater," explains Dwain Meyer, NDSU plant sciences professor. "The reason we shoot for an RFV of 175 to 180 in the field is because wilting, harvesting and storage can lower RFV by 25 to 30 points."  Read the complete article at http://www.ext.nodak.edu/extnews/

 

 

NATIONAL ASSOCIATION OF WHEAT GROWERS REPORT FROM WASHINGTON

NAWG ON THE GO

AG GROUPS PROTEST EPA RULE ON DIESEL FUEL
In a letter this week to EPA Administrator Carol Browner, NAWG and other agriculture and industry groups stated their concern with the agency's proposal to reduce the sulfur levels in diesel fuel. This reduction could have "adverse unintended consequences for American agriculture and rural America." These consequences could potentially include disruptions in fuel supply and higher prices for farmers for both on-farm and highway fuels.

As an alternative to the proposal, the letter states that EPA set an on-road diesel fuel sulfur cap at around 50 parts per million – a 90 percent reduction from the current level. Additionally, EPA should delay or phase in any implementation of a diesel rule until the final gasoline rule has been implemented as well as maintain a higher off-highway diesel fuel standard to minimize costs to farmers and ranchers

INTERNATIONAL WHEAT SCAB SYMPOSIUM
The Cytogenetics Institute, Nanjing Agricultural University and the Wheat Genetics Resource Center at Kansas State University will be holding the International Wheat Scab Symposium in Suzhou and Nanjing, China, on May 5-10, 2000. The symposium will allow for an exchange and discussion of information and ideas on improving scab resistance in wheat.

The agenda will include the exploration of resistant germplasms, the mapping and genetic examination of scab resistant genes, fusarium pathology, scab resistance breeding and methodologies. Participant will also tour a processing center and other facilities in the area.

Further details can be found on the U.S. Wheat and Barley Scab Iniative web site at http:\\www.scabusa.org

WHEAT FOODS COUNCIL RESPONDS TO WHEAT BRAN POLYP PREVENTION TRIAL STUDY
In a recently published study in the New England Journal of Medicine, researchers from the University of Arizona and the Arizona Cancer Center suggested that wheat bran does not offer any protection against the recurrence of colorectal polyps in men and women. However, the Wheat Foods Council has responded this week by asserting that the study only contributes to consumer confusion as conflicting nutrition information makes its way to the spotlight. 

According to Council President Judi Adams, MS RD, "This study required participants to remain on a high- or low-fiber diet for three years. However, the number of subjects in the high-fiber group adequately adhering to the diet was much lower during years two and three. It's difficult to determine if wheat bran fiber can be protective if it's not consumed." Adams continued, "If anything, this study illustrates that people should consume more fiber and whole grains to prevent the first occurrence of colorectal polyps. It's just like brushing your teeth to prevent the onset of cavities – once you have a cavity, all the brushing in the world isn't going to make it go away."

Many health experts, including the study's lead investigators, emphasize Americans should continue to eat a diet rich in complex carbohydrates and whole grains. Fiber-rich foods protect against developing colon polyps in the first place, as well as coronary heart disease, hypertension, certain types of diabetes, and other types of cancer. In addition, Dr. Arthur Schatzkin, Chief of the National Cancer Institute's Nutrition Epidemiology Branch, and lead investigator of a similar study in the April 20 issue of the New England Journal of Medicine, said "Adopting a diet low in animal fat, high in whole grains, and rich in vegetables and fruit can improve one's overall health and reduce the risk of chronic disease."

Other medical doctors in the field of nutrition also spoke out stating the many health benefits of whole grain foods and wheat bran. Additionally, the revised Dietary Guidelines for Americans, anticipated to be released by the U.S. Departments of Agriculture and Health and Human Services at the end of May, will continue to emphasize at least six daily servings of grain foods as the base of a healthy diet – with several of these servings from whole grain foods.

COURTS BEGIN ACTION ON RAIL MERGER
Earlier this week, the U.S. Court of Appeals for the District of Columbia Circuit ordered an expedited schedule under which to consider the Burlington Northern Santa Fe (BN) request to stay the 15-month moratorium on rail mergers imposed earlier this month by the Surface Transportation Board. Although this court decision does not respond to BN's motion to stay the moratorium, many observers believe that the fact that the expedited schedule has been set indicates that the court saw sufficient merit to pursue oral arguments. The court will then decide on whether to stay the moratorium following oral arguments.

The schedule set by the court is as follows:
BN and Canadian National (CN) joint opening brief is due May 5, 2000
Intervenors and/or Amici Supporting Petitioners must file a single brief by May 5, 2000
Respondents' brief (also combined) is due May 19, 2000

Intervenors and/or Amici Supporting Petitioners brief is due May 19, 2000 .  BN and CN's joint reply brief is due May 24, 2000  Oral arguments before the court on Tuesday June 13, 2000

It is expected that a decision on this matter may be made fairly quickly after oral arguments are heard

THIS WEEK ON CAPITOL HILL

UPDATE ON CROP INSURANCE CONFERENCE
NAWG continues to closely monitor developments in the House/Senate conference on crop insurance. Congressional staff met each day this week in an effort to hammer out an agreement. However, several key issues remain unresolved.

NAWG continues its work to advance the reforms supported by wheat growers while trying to head-off changes, which might prove detrimental. It is anticipated that the conference committee will not finish its work until mid-May.

TRADE NEWS FROM WETEC

PNTR FOR CHINA WILL FAIL UNLESS YOU GET INVOLVED
By Christopher Shaffer – WETEC Chairman

The wheat producer position is simple and unwavering: U.S. wheat growers strongly support China's entry into the World Trade Organization (WTO) and the immediate approval of Permanent Normal Trade Relations (PNTR) status for China.

On April 7, 2000, Speaker of the House Dennis Hastert (R-Illinois) announced that the U.S. House of Representatives would vote on PNTR for China during the week of May 22, 2000.  Wheat producers greeted this announcement as a positive step toward a successful outcome.  But victory on this critical vote is far from certain.  At least 218 votes are needed pass PNTR in the House, and many members have not yet committed to how they will vote. American wheat growers must intensify their efforts in the weeks leading up to the China PNTR vote to assure its success.

U.S. wheat producers have traditionally supported renewal of China's trade status because of China's vast potential as a wheat market for U.S. exports. In 1989, following the Tiananmen Square Pro-Democracy demonstrations in Beijing, U.S. wheat producers and their Washington representatives were among the key voices in support of continued trade with China. Senators from key wheat producing states, acting on behalf of their constituents, sustained two presidential vetoes of bills to rescind China's trade status.

At that time, our efforts focused on encouraging the President to extend a Jackson-Vanik waiver by the annual June 3 deadline and to discourage Congress from overturning the President's decision or attaching unrealistic or unattainable conditions to the trade legislation.

This year's legislative battle over China's trade relations with the United States is dramatically different.  After lengthy negotiations for China's entry into the WTO, and the announcement of a comprehensive bilateral trade deal, President Clinton has proposed breaking the contentious cycle of an annual review and granting PNTR for China. This initiative, if successful, will allow the U.S. to immediately reap the benefits of bilateral agreements reached between the U.S. and China last November and to be positioned for the benefits that will occur upon China's imminent accession to the WTO.

The price of failure is just as dramatic.  China will become a member of the WTO and the U.S. will be sitting on the sidelines while our competitors take advantage of the trade concessions the U.S. negotiated.  Based on USDA's estimates, the U.S. will walk away with an increase of approximately $2 billion in annual farm export sales.  Secretary of Agriculture Dan Glickman estimates that the U.S.-China WTO Accession Agreement could add an expected $1.6 billion annually to U.S. grain, oilseed and cotton exports by the year 2005.

China is potentially the world's largest wheat market.  Unfortunately, it has maintained a non-tariff trade barrier on U.S. wheat exported from Pacific Northwest ports since 1972, and from Gulf ports since June of 1996, due to the perceived threat of TCK smut. This has had a negative impact on all U.S. wheat producers.

In April of 1999, Prime Minister Zhu Rongji announced China's intention to lift its long-standing restrictions on the export of U.S. wheat from areas where TCK is known to occur. The agreement allows U.S. wheat to be exported from any state or any U.S. port to any Chinese port as long as these imports do not exceed a tolerance level of 30,000 TCK spores per 50-gram sample. This level can easily be met by U.S. wheat exporters and provides the necessary level of protection against infection that the Chinese sought. The agreement was effective immediately and spans one year and will become permanent upon China's entry into the WTO.

On February 22, 2000, China purchased 50,000 metric tons of U.S. wheat under the April agreement. This "trial shipment" consisted of 30,000 metric tons of soft wheat, 10,000 metric tons of hard red spring wheat, and 10,000 metric tons on hard red winter wheat.  Nearly one month to the day following the announcement that it had bought U.S. wheat, China issued new rules governing the import of U.S. wheat, marking the final stage in the implementation of the April 1999 agreement.

PNTR is an irresistible deal for U.S. farmers and ranchers. This virtually limitless trade opportunity coincides with the third consecutive year of economic downturn for American farmers and ranchers.  American agriculture simply cannot afford to let this opportunity pass by allowing PNTR to fail. Please make sure you contact your Senators and Representatives to advise them of your strong support for passage of PNTR.

If you need any additional materials to support your position, or if your member of Congress seeks any statistical or other information, call WETEC at 202-547-2004 for assistance.

NEWS FROM USDA/EPA/USTR

USDA SECRETARY LEADS DELEGATION TO CHINA
On Monday, USDA Secretary Dan Glickman led a Presidential Delegation to China for a weeklong visit to Beijing, Hong Kong and Shanghai. Included in this delegation is a bipartisan group of lawmakers: Representative Norman Dicks (D-Washington), Representative Ruben Hinojosa (D-Texas), Representative Gregory Meeks (D-New York), Representative Greg Walden (R-Oregon), and North Dakota Governor Edward Shafer.

The purpose of the visit is to learn more about U.S. export opportunities, U.S. China relations, and discuss China's commitment to market-opening agreements and international trade rules. In doing so, the delegation will meet with senior government officials, academics, American business leaders in Beijing, processing centers, and other businesses throughout the region.

USDA HELPS TO BOLSTER EXPORTS VIA THE WEB

This week the USDA announced a new on-line directory of U.S. exporters of food, fiber, fish and forest products. According to the USDA over 2,800 exporters registered on paper in 1999 and they are expecting over 4,000 to register on-line.

USDA plans to promote this directory to overseas buyers and importers through agricultural attaches, trade officers, DC staff. To access the on-line directories go to, http://www.fas.usda.gov/buying.html or to register as suppliers go to, http://www.fas.usda.gov/ussupplier.html.

 "Report from Washington"
Editor: Gina Hoback
Contributing Editor: Wayne Hammon
Contributing Editor for WETEC: Chris Holdgreve

Published weekly by the National Association of Wheat Growers, 415 Second Street, NE Suite 300Washington, DC 20002.
Phone: 202-547-7800
Web site:
http://www.wheatworld.org