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News from the Minnesota Association of Wheat
Growers for Friday, May 12,  2000

CHINA'S WHEAT CROP EXPECTED TO DROP THIS YEAR
According to a recently released USDA agricultural attaché report, China's 2000-01 wheat production is expected to reach 107 MMT, down from the 1999-00 estimate of 113 MMT.  Poor wheat growing conditions in late winter and early spring, combined with lower domestic support prices led to the attaché's lower wheat production estimate.  Consequently, the attaché report forecast China's 2000-01 total wheat imports at 3.0 MMT, up from the 1999-00 estimate of 600 TMT.  Furthermore, the attaché expects nearly 1.5 MMT of the 2000-01 imports to be sourced from the US.

 

 

COMMERCE SECRETARY DALEY ANNOUNCES 5 POINT PLAN FOR ENFORCING CHINA AGREEMENT
Last Wednesday, US Commerce Secretary William Daley announced a 5-point plan to support enforcement of China's trade agreement commitments in an effort to ensure that China lives up to WTO rules following its potential accession.  Sources indicate the plan is the latest effort by the Clinton Administration to garner additional support in the House of Representatives to pass permanent NTR status with China and eventually lead to China's membership into the WTO.  Furthermore, unidentified Congressional aides suggest the trade enforcement plan has five components, including the creation of a "rapid response compliance team working simultaneously in the US and China, tighter deadlines for investigating trade problems and trade enforcement monitoring.  Both sides of the issue are laying claim to an eventual victory, while the actual House vote is scheduled to take place the week of May 22, 2000.

 

 

AGRICULTURE BUDGET PASSED WITH A PROVISION TO LIFT EXPORT SANCTIONS ON FOOD
On Thursday, the subcommittees in both the Senate and the House approved budgets for US agriculture in fiscal 2001, according to newswire reports.

Moreover, the approved legislation is now being sent to a full appropriation committee to be further debated.  Sources indicate the House panel approved a $14.4 billion budget, while the Senate panel approved $14.9 billion in discretionary spending for the USDA, both budgets were less than the $15.5 billion that the Clinton Administration requested.  The newswire source defined "discretionary spending" as funds that the USDA has full control over, above mandatory spending for such things as salary expenses.  Furthermore, newswire sources indicate the House subcommittee attached several amendments to the budget bill including legislation to lift US bans on food and medical exports for one year to private and government agencies in Cuba, North Korea, Iran, Libya and Sudan.

 

 

SENATE AG COMMITTEE TARGETS JUNE 29 FOR FINISHING A PLAN TO SPEND $5.5 BILLION THIS YEAR
An unidentified aide indicated the Senate Agriculture Committee is expected to have a plan by June 29, 2000, to spend $7.1 billion in income assistance to US farmers, of which $5.5 billion will be given to farmers in this fiscal year, most likely in the form of an extra "lump-sum" AMTA payment.  According to the source, the additional $1.6 billion can be spent anytime before the end of fiscal 2005, but would probably be used to assist dairy farmer and growers of specialty crops.  As reported earlier this week, the House farm panel has already approved the $7.1 billion aid package.  Moreover, congressional sources suggest additional income support could be approved for US farmers for fiscal 2000, as farm state legislators would like to "pre-empt" a possible third year of low prices by enacting emergency legislation prior to harvest.

 

 

 

GLICKMAN ANNOUNCES NEW LOANS FOR ON-FARM STORAGE
WASHINGTON, May 9, 2000   Agriculture Secretary Dan Glickman said today that USDA will begin making seven-year, low-cost loans to farmers to help build or upgrade commodity storage and handling facilities. 

"To get the best price for their crops, farmers need marketing flexibility," Glickman said.  "On-farm storage gives farmers the control they need to segregate their crops and decide when to sell them." Additional information can be found on website:  www.fsa.usda.gov

 

 

WINTER WHEAT PRODUCTION DOWN 3 PERCENT
Winter wheat production is forecast at 1.65 billion bushels, down 3 percent from 1999, according to USDA. Based on May 1 conditions, the U.S. yield is forecast at 47.5 bushels per acre, 0.3 less than last year's record.  If realized, this would be the second highest yield on record.  Record yields are forecast in Ohio and North Carolina.  Grain area totals 34.7 million acres, down 2 percent from last season.  Dry conditions in Texas have led to abnormally high abandonment.

 

 

SCLEROTINIA RESEARCH INITIATIVES SEEK STATE, NATIONAL FUNDING
A research initiative focusing on sclerotinia (white mold) in sunflower and other crops will be proposed to N.D. lawmakers for funding in the 2001 legislative session, while a separate national white mold research initiative may be launched this fall, pending funds from a new federal grant.

North Dakota State University is seeking close to $100,000 in state funding for its white mold research proposal, which would involve several NDSU departments, including plant pathology, plant sciences, agriculture and biosystems engineering, and involve federal researchers as well, says Glen Statler, an official in NDSU's agricultural department.

A national white mold research initiative including sunflower, soybeans, canola, and other broadleaf crops susceptible to the disease is seeking $2 million in grant funding from the U.S. Department of Agriculture, according to Maureen Kelly, who is involved in the effort on behalf of the United Soybean Board. The National Sunflower Association and other national organizations representing crops affected by the disease are involved as well.

The national initiative, if successful in securing $500,000 in annual research funding over a four-year-period, would get underway October 1, 2000, and involve 10 to 15 states affected by white mold. Anne Dorrance, a plant pathologist at Ohio State University, would be the lead coordinator of the national research project.

"Sclerotinia is the reason they don't grow sunflower in Ohio anymore," says Kelly.

Indeed, the disease has been crippling to sunflower and other broadleaf crops in many crop production areas of the U.S., largely due to the ability of the pathogen to survive in the soil as sclerotia, and environmental conditions during the 1990s that favored inoculum buildup in the soil.

USDA Agricultural Research Service national program staff rank white mold among the top of their priority list, notes NDSU. Losses from sclerotinia in 1999 are estimated at nearly $100 million in North Dakota alone. Sclerotinia head rot affected more than 80 percent of sunflower fields in eastern N.D. last year, reaching epidemic proportions not reached since 1986, according to NDSU.

There are no sclerotinia-resistant cultivars in beans, canola, or sunflower, but some cultivars are more susceptible to others. Other crops such as potatoes, safflower, flax, lentil, mustard, and crambe can also be infected if conditions favor the disease.

An integrated management approach is needed to get the disease under control, according to NDSU, requiring multi-faceted, multi-crop research in 1) genetics/breeding (screening for resistance); 2) fungicides (chemical control strategies); 3) production (rotation, tillage); 4) biological control; and 5) disease forecasting.

 

 

IMPEDIMENTS TO CONTROLLING LEAFY SPURGE IN THE NORTHERN GREAT PLAINS

Authors:  Randall S. Sell
               Dean A. Bangsund
               F. Larry Leistritz     
lleistri@ndsuext.nodak.edu

Dated May 2000

Abstract: Leafy spurge is an invasive noxious weed, which by definition means it is inordinately difficult to control.  The objective of this report is to present the results of focus group meetings and personal interviews with ranchers, local decision makers, and public land managers to discover strategies to improve leafy spurge management.  Participants in the interviews and focus group meetings managed property in Fallon, Carter, and Wibaux Counties of Montana; Golden Valley, Bowman, Billings, and Slope Counties of North Dakota; Harding County of South Dakota; and Crook County of Wyoming.

Ranchers and local decision makers believe that leafy spurge control must become more proactive rather than reactive; current strategies are largely reactive.  Interviews with ranchers and local decision makers revealed that a considerable gap in understanding how to control leafy spurge exists between researchers and those attempting to combat the weed.  Interviewers often mentioned that they have been unable to eradicate leafy spurge, which indicates that the current mind set of ranchers and land managers needs to change to one focusing more on controlling and managing leafy spurge rather than eradication.  Specific recommendations would include 1) reducing the current levels of herbicide application rates - which are often two to three times higher than rates recommended by weed scientists, 2) must appreciate that herbicides are but one tool in the battle against leafy spurge, 3) must understand that in many cases eradication of leafy spurge will not be possible - the goal should be trying to control it, and 4) rangeland rental rates need to reflect current levels of weed infestations.  Records of weed infestations (e.g., acreage, location, rate of spread, attempts at control) on public lands are woefully inadequate.  Cooperation between ranchers, county weed boards, and public land agencies could be improved to enhance the effectiveness of existing control programs.  Weed control regardless of land ownership is important for ranchers, absentee landowners, and public agencies to effectively control leafy spurge.  In general, ranchers and land managers need to generate a broader base of support for control of leafy spurge, since the weed attacks the entire ecosystem and is not just an agricultural problem.

Web Site:  http://agecon.lib.umn.edu/ndsu/aem185.html

 

 

RESEARCHERS, SCIENTISTS WATCHING MOVEMENTS OF CEREAL LEAF BEETLE
May 11, 2000

Researchers and scientists from North Dakota State University and the North Dakota Department of Agriculture (NDDA) are preparing for the possible arrival of an unwelcome guest: the cereal leaf beetle, a defoliating insect native to Europe. Because of the history of the cereal leaf beetle's movements in areas of the Corn Belt, the East Coast and some western states, certain shipping restrictions apply to states where the insect becomes established.

"No cereal leaf beetles were detected in our survey last year--or in previous years--but all counties will be surveyed again this year, and the scouts will be looking for this insect, as well as other pest problems," says Marcia McMullen, extension plant pathologist at NDSU. McMullen .  Finish the article at http://www.ext.nodak.edu/extnews/

 

 

NATIONAL ASSOCIATION OF WHEAT GROWERS REPORT FROM WASHINGTON

Issue: MM
May 12, 2000
No. 015

NAWG ON THE GO

NAWG CEO MAKES WEEKLY TRIP TO WHITE HOUSE
NAWG CEO Jack Eberspacher again this week made what seems to be his weeklybvisit to the White House to discuss China PNTR. In addition to discussingblast minute strategies to gain support from House Members, participants began making strategy regarding what type of action needs to be taken after the May 16 and 17 fly-in and in preparation of the House vote.

NAWG PRESIDENT ADDRESSES NEED FOR ASSISTANCE
In a letter sent to each member of the House and Senate Agriculture Committees on May 9, NAWG President Terry Detrick outlined the need for further government assistance this year (see related story in News from Capitol Hill). Below is the text of the letter in full:

Dear Senator/Congressman:
As President of the National Association of Wheat Growers (NAWG), and on behalf of wheat producers from across the nation, I write today in regard to your work on the agriculture assistance package currently before the House and Senate Committees on Agriculture.  Identical letters are being sent to each member of both committees.

NAWG strongly supports language included in Section 216 of the Conference Report to House Concurrent Resolution 290, which designates funds for financial assistance to the nation's farmers and gives the authorizing committees the responsibility of developing the assistance package. Likewise, we remain optimistic that the committees will complete their work prior to the June 29 deadline.

NAWG is greatly troubled by reports that some Members of Congress have pointed to recent, limited gains in the agriculture commodity futures markets as justification for failing to act on the assistance package. Nothing could be further from the truth.

While agriculture commodity futures markets have gained some ground since mid-April, the price of most commodities - including wheat - remains well below both historical averages and the cost of production.  Fortunately, most lawmakers understand that a modest, two week gain can not erase a three year slide in prices.  In addition, farmers continue to battle rising input costs, especially the cost of fuel - which hit its highest point at a time when many farmers were returning to the field.

Of even greater concern to wheat producers is the continued rise in interest rates.  As you know, the Board of Governors of the Federal Reserve System has raised interest rates five times over the last eight months.  Many anticipate that another rise will occur when the Board meets again on May 16.  Since most farmers are dependent on annual loans to cover their operational costs, agriculture bears the burden of higher interest rates in proportionately to other sectors of the economy.

For these three important reasons, NAWG believes that an agriculture assistance package which contains the following two essential elements is imperative.

First, the package should provide assistance equal to the per-farmer amount distributed in 1999. Last year, as you will remember, Congress provided assistance equal to 100 percent of the producer's AMTA contract.  For wheat producers, this resulted in a $.637 payment per contract bushel. This payment, when combined with the standard $.637 AMTA payment, resulted in wheat producers receiving $1.274 in direct financial assistance. The 2000 AMTA payment, by comparison, is $.583.  Even if Congress approved another assistance payment equal to 100 percent of AMTA, total financial assistance would drop by over 10 cents per contract bushel. Accordingly, adjustments must be made to ensure that the per-farmer assistance is equal to that of last year's package.

Second, NAWG calls upon you to include language in the assistance package that would establish a loan deficiency payment (LDP) or its equivalent for wheat producers who harvest their crop by allowing it to be grazed out by livestock. Last year's assistance package included a "Sense of Congress" resolution which expressed its support for this idea and called upon USDA to establish such a payment.  Unfortunately, USDA has failed to act on this provision despite its decisions to expand the LDP program to other "non-traditional" harvesting methods.

Legislative language, similar to that developed by Congressman Frank Lucas (Oklahoma), which would create a payment in lieu of a LDP is attached to this letter.  NAWG requests that you include it in the agriculture assistance package.

I appreciate your timely attention to this matter and urge you and your colleagues to act as soon as possible.  The nation's wheat producers are extremely grateful for your continued support and stand ready to assist you in this important effort.

Sincerely,
Terry Detrick
President
National Association of Wheat Growers

NAWG/WETEC PREPARE FOR FLY-IN
Preparations are well underway for next week's fly-in in support of granting PNTR status to China.  Wheat Growers from across the nation will descend on Washington, DC, May 16-17 to show support for the trade measure. During their two-day visit, NAWG members plan to visit the office of every member of the House of Representatives and deliver information on how opening trade with China will benefit agriculture.

With financial assistance from the Idaho Wheat Commission, NAWG has purchased buttons and other materials for wheat producers to distribute during their visit. "We've made sure that NAWG members will be very visible as they make their way through the halls of Congress," said NAWG President Terry Detrick. "By the time the House votes on PNTR, every Member will know how important their vote is to wheat producers and that we are watching them carefully."

A very full schedule has been set up for the NAWG members' visit. In addition to their visits with Members of Congress, wheat producers will meet with USTR Charlene Barshefsky, Former USTR Mickey Kantor, USDA Secretary Dan Glickman, House Speaker Dennis Hastert and other national policy leaders. 

SURFACE TRANSPORTATION BOARD ANNOUNCES DECISION ON ANHYDROUS CASE
Wheat growers may remember that several ago a suit was brought against Koch Pipeline Company (a division of Koch Industries) by several national farm groups and industry partners. The suit alleged that Koch's increase inpipeline shipping rates of anhydrous ammonia in 1996 were "unreasonable."

Accordingly, two shippers, Farmland Industries and CF Industries, Inc. are entitled to reparations totaling the difference between the increased rates and the rates prior the 1996 increase. NAWG has been working on this issue for three years and is pleased with the favorable outcome. More information is available at the STB web site.

THIS WEEK ON CAPITOL HILL

APPROPRIATIONS TRAIN CHUGGING ALONG
Significant progress was made this week on the annual agriculture appropriations bills, which fund USDA activities for the coming fiscal year. Both the House and Senate Appropriations Committees reported their own version of the measure this week.

The Senate committee acted on the bill on Tuesday. In addition to the normal funding provisions (details were included in last week's "Report from Washington"), the Senate committee approved almost $2 billion for disaster relief and other non-defense related emergency spending. Agriculture spending makes up only $1.3 billion of that total and includes: $450 million for livestock producers, $443 million for dairy producers, $35 million for peanut producers, $50 million for rural water projects and $80 million for rural development projects. It is unlikely, but still possible, that this spending will be counted against the $7.1 billion ($5.5 billion in FY2000 and $1.6 billion in FY2001) set aside in the annual budget resolution for another agricultural assistance package.

The Senate committee also approved an amendment by Senators Byron Dorgon (D-North Dakota) and Slade Gorton (R-Washington) to exempt food and medicine from all U.S. unilateral sanctions. The language is almost identical to that

offered last year by Senator John Ashcroft (R-Missouri) and similar to that included in the amendment offered by Congressman George Nethercutt (R-Washington) that was included in the House version of the bill last week. Although the Ashcroft language won the approval of the full Senate last year, it was ultimately dropped in a House/Senate conference.

According to WETEC Executive Director Barbara Spangler, having similar language in both bills greatly increases the odds of the retaining the provision in the final version of the bill.  "We've made significant progress on this issue since last year," stated Spangler.

The House committee cleared its version of the bill on Wednesday. While the House bill contains less emergency spending, the Nethercutt amendment on sanction reform remained intact despite attempts from its opponents to try to strike the provision. The committee rejected, on a vote of 35-24, an amendment offered by Representative Tom DeLay (R-Texas) that would have stricken the Nethercutt language.  According to reports, DeLay launched a lengthy attack stating, "this provision would make American farmers partners with the oppressors of the Cuban people."  He went on to say, "Food is power.  It is a power that you [the amendment's supporters] would give to despots."

Responding to DeLay's objection, Nethercutt fired back, "I couldn't care less about Fidel Castro or about North Korea's leaders. I do care about their people and the American farmer."

Nethercutt was joined by what some observers called an "unusual coalition" of farm-state conservatives and liberal Democrats concerned with social conditions abroad. According to news reports, Representatives Jose Serrano (D-New York) and Rosa DeLauro (D-Connecticut) helped lead the charge despite having no farm interests in their states. According to Serrano, who represents the South Bronx district of New York City, this was the first time in his ten years as a House member that he was visited by farmers and farm organization lobbyists. NAWG has been leading the effort to educate urban members about the needs of rural America, with NAWG Officers and Board Members visiting each member of the House and Senate Appropriations Committees during recent trips to Washington, DC. Floor action is expected on both versions of the bill late next week with the Senate likely to take up the measure on Thursday and the House to follow on Friday.

PROGRESS MADE ON CROP INSURANCE CONFERENCE
After weeks of staff level negotiations, significant progress was made this week in finalizing the conference report on the crop insurance reform measure. Staff worked through the weekend and each day this week to hammer out an agreement that will be presented to the Members on Tuesday of next week.

While the text of the conference report has not been released, NAWG staff have examined the most important parts of the package and were very pleased with the final compromises.

A more complete report is expected in time for next week's "Report from Washington."

PROGRESS MADE ON ASSISTANCE PACKAGE
Congressional staff are hard at work trying to finalize details of the agriculture assistance package (see related story in NAWG on the go). While the budget resolution set the deadline for action on the measure for June 29, 2000, it is hoped that an agreement can be reached in time to include the package in the conference report on crop insurance reform, which is expected to be finalized next week.

While $7.1 billion might seem like a lot of money, farm groups are already struggling over how to split the pie. In keeping with the policy adopted at the annual conference, NAWG is aggressively seeking two provisions: 1) A payment that would result in the per-farmer assistance (emergency payment plus AMTA) equal to that received last year; and 2) The establishment of a LDP or its equivalent for grazed-out wheat.

SETTING THE STAGE FOR PNTR
Senate leaders announced this week that the Senate Finance Committee will report its version of legislation approving PNTR for China next Wednesday, setting the stage for the floor vote in the House of Representatives the following week. While passage in the Senate is considered very likely, Senate leaders hope that action on their side of the Capitol will sure-up support for the measure in the House.

Wheat producers from states whose Senators serve on the Finance Committee are encouraged to contact them in support of the measure.

TRADE NEWS FROM WETEC

ACTION NEEDED ON SANCTION REFORM
NAWG and WETEC have joined other national farm organizations in support of language offered by Congressman George Nethercutt (R-Washington) that would exempt food and medicine from unilateral U.S. sanctions (see related story above). While significant victories took place this week, the measure still faces several challenges.

The next roadblock to be overcome is opposition to the reforms from members of the Rules Committee, the powerful House panel that governs which bills are placed on the House calendar and how each will be debated. Accordingly, Nethercutt and other supporters have circulated a letter asking the Rules Committee to support including the reform measures in the FY2001 Agriculture Appropriations bill.

NAWG members are strongly encouraged to contact their representatives today and encourage them to cosign the Nethercutt letter.

NEWS FROM USDA

USDA RELEASES DETAILS OF ON-FARM STORAGE PROGRAM
USDA announced this week that applications for low-cost loans for the purchase, improvement or construction of on-farm storage facilities will be accepted beginning May 30, 2000. The program provides seven-years of financing for producers of wheat and other commodities at interest rates equal to the rate charged on Treasury securities, the lowest possible lending rate.

In a change from earlier reports, USDA stated that the loan program would be retroactive to February 2, 2000. Making the program open to producers who have already begun work on their storage facilities was a high priority for NAWG and many farm-state lawmakers. In a statement released on Tuesday, Senate Minority Leader Tom Daschle (D-South Dakota) stated, "I am very pleased that Secretary Glickman has agreed to make the loans retroactive. .. ."  Daschle went on to say, "these low interest loans . . . will benefit farmers struggling with inadequate storage capacity."

Additional information on the program is available at local FSA offices and on the Internet at www.fsa.usda.gov.

USDA SEEKING PROCEDURES FOR DETECTING BIOTECHNOLOGY-DERIVED GRAINS
In an effort to standardize the identification of biotechnology-derived grains, USDA's Grain Inspection Packers and Stockyards Administration (GIPSA) announced this week that it will review, upon request, and accredit those laboratories testing for biotechnology grains. This announcement by USDA Secretary Dan Glickman comes on the heels of the proposed biotechnology initiatives announced last week by the Clinton Administration (details available in last weeks "Report from Washington.")

Additionally, GIPSA will also be evaluating test kits used by laboratories for detecting biotechnology-derived grains. With these new initiatives taking hold, USDA will also be soliciting public comments on additional ideas and/or methods for detecting biotechnology grains.

According to Secretary Glickman, "We want to provide consumers, farmers, and industry with more information about biotechnology-derived foods and we want to ensure that information is accurate and reliable."