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News from the Minnesota Association of Wheat
Growers for Friday, June 23,  2000

CLINTON ON FREEDOM TO FARM
WASHINGTON--According to Agdayta.com, on signing the Agriculture Risk Protection Act Tuesday, President Clinton taped a radio statement severely criticizing the farm aid section of the bill. "While this bill is important, it still fails to fix what is plainly an unsuccessful farm policy. We should be targeting assistance where it's truly needed, instead of making payments to farmers who haven't planted a crop and who don't need our help. That's why we need to revise, revamp, and improve the 1996 Freedom to Farm bill -- to build a safety net that adequately protects our nation's farmers," Clinton said on the radio.

In the written statement, Clinton said he supported "the reform of the crop insurance program…" Clinton noted that, when he signed the 1996 bill, he said the Freedom to Farm Agricultural Marketing Transition Act payments do not adjust to changes in crop prices or revenues and that he had proposed counter- cyclical farm income assistance in his fiscal year 2001 budget. "I am disappointed that the Congress did not adopt this proposal and instead chose again simply to double the AMTA payments without regard to the hardships facing individual producers this year. We need to move beyond this kind of untargeted, patchwork fix to assure a stronger, more reliable farm safety net that provides dependable assistance to family farmers based on their current farm income."

Clinton concluded "….we need to build a stronger, better farm safety net on which American producers, their families and communities can depend."

 

 

GAS PRICES REVEALS RFG PROGRAM NOT BEHIND PROBLEM
RFA president Eric Vaughn says when conventional gasoline and ethanol RFG (Renewable Fuels Association) are selling for the same wholesale price, the oil industry can no longer blame ethanol for the high price crisis. "The ethanol industry has said from the beginning that supply mismanagement by the oil companies is forcing the price of all gasoline higher without regard to actual production costs," he said.

Vaughn added the ethanol industry is relieved the oil industry appears to be getting a handle on the Midwest supply crisis. "We're hopeful that the retail gasoline prices will quickly follow the drop off in wholesale gasoline prices. The ethanol industry stands ready to help by providing additional ethanol for blending in the Midwest," he said. "Oil refiners could additionally lower the cost of gasoline by blending 10 percent ethanol into every gallon of gasoline sold in the Midwest."

 

 

WORLD WHEAT PRICES REMAIN LOW DESPITE LOW WORLD WHEAT STOCK
Despite a low world wheat stocks-to-use ratio, as well as reduced world wheat production and an increase in world wheat consumption, the world wheat price remains at historically low levels.  Speaking at the International Grains Council (IGC) 2000 grains conference, USDA's Foreign Agricultural Service chief August Schumacher addressed the phenomena suggesting the world wheat stocks-to-use ratio is no longer the adequate measure of supply, demand and price as it once was. According to a newswire report, Schumacher indicated the stocks-to-use ration was a good predictor when world wheat trade was dominated by unpredictable, "price-driving" government wheat buyers, especially China and the former Soviet Union.  However, Schumacher suggests the increase in privatized, liberal wheat markets and the advent of "just-in-time" inventory systems by major world wheat importers have effectively muted the price impact of historically low wheat stock levels.  Furthermore, Schumacher turned his attention to state trading enterprises (STE) indicating the US will continue to work to lessen the power of the STE in order to improve the ability of producers and traders to operate within an open world market.

 

 

DISASTER ASSISTANCE FOR "NONINSURED" CROPS REQUIRE PROMPT ACTION

By James B. Johnson
(406) 994-5606
MSU-Bozeman Extension Service Economist
BOZEMAN -- If drought causes crop losses, some Montana producers may be able to reduce their losses in areas which may be designated as Noninsured Crop Disaster Assistance Program (NAP) areas.

Administered by the USDA's Farm Service Agency, NAP helps producers who don't have federal multiple peril crop insurance like that available for wheat and barley. In Montana, it may help producers of peas and lentils, several of the minor oilseed crops, seed and some harvested forage crops.

However, prompt reporting is required by the program. Producers must notify local FSA offices within 15 days of the:
  --Occurrence of a natural disaster;
  --Final planting date if they were prevented from planting due to a natural disaster;
  --Date damage to the crop or loss of production becomes apparent.

Though NAP financial assistance offsets only a small portion of per acre operating costs, it can reduce losses for producers of eligible crops and commodities.

NAP provides financial assistance to producers of a commercial crop or agricultural commodity for which catastrophic crop insurance is not available and the crop or commodity is grown for food, livestock feed or fiber (excluding trees).

Several technicalities apply. NAP crops are those with no Risk Management Agency actuarial table, and for which a producer did not request an actuarial change and receive a written agreement to provide individualized crop insurance coverage.

Most Montana producers report their acreage and production of crops eligible for NAP coverage during annual crop reports to county Farm Service Agency offices. The NAP requires this actual production history to calculate assistance levels.

After a natural disaster such as a drought, Farm Service Agency offices will identify its geographic extent, the crops or commodities impacted, and the NAP area affected by the natural disaster, which must include at least five different producers of eligible crops. NAP areas are often at least one county in size.

 To be eligible for NAP financial assistance:
  --the disaster must reduce each specific crop in the NAP area must by more than 35 percent of actual area production, and  
  --producers in the NAP area must have their expected production reduced more than 50 percent or have been prevented by the natural disaster from planting more than 35 percent of the specific crop acreage intended to be planted.

NAP assistance kicks in only after individual expected losses exceed 50 percent.

A producer's NAP indemnification for a specific crop will be on the loss greater than 50 percent of their expected production. Expected production will be determined based on the producer's reported crop acreage and approved yield.

The specific NAP financial assistance for a producer's crop will consider crop acreage, approved yield, net production; 55 percent of the State FSA Committee established price; and a payment factor reflecting when in the production cycle the loss occurred.

For example, consider a producer in a NAP area with 100 acres of an eligible crop. The state Farm Service Agency committee sets a price of $0.10 per pound. The producer harvests 200 pounds on a field with an actual production history of 900 pounds per acre. To calculate what the producer would receive, begin with 450 pounds representing half of the actual production history. Subtract the 200 pounds harvested. Multiply the resulting 250 pounds times the result of 10 cents a pound times the 55 percent of the state FSA established price (0.55 x $ 0.10), and that times 100 acres. The resulting $1,375 represents $13.75 per acre. Since the producer went through the entire production and harvest cycle, there was no payment factor reduction applied.
Questions on NAP should be directed to county Farm Service Agency offices.

 

 

GLICKMAN ANNOUNCES NEW STEPS TO PROMOTE CLEANER WHEAT EXPORTS
WASHINGTON, June 21, 2000–Agriculture Secretary Dan Glickman today announced two new steps designed to make U.S. wheat more competitive in world markets by encouraging the export of cleaner wheat.

"By tightening standards for USDA purchases and providing incentives for cleaner wheat, we can help improve the quality and value of U.S. wheat around the world," Glickman said.

Glickman said USDA will immediately raise the standard for cleanliness of wheat purchased for U.S. foreign food assistance programs by reducing the level of dockage permitted. is determined contractually between buyer and seller.

USDA also will request public comments on a proposal to establish an official U.S. standard for maximum dockage levels in exported wheat. GIPSA is expected to publish the proposal in the Federal Register this fall.  The measures announced today were based, in part, on suggestions made by wheat producer organizations in Kansas, Texas, Colorado, Oklahoma, and Nebraska

 

 

NDSU RELEASES SIX-ROWED BARLEY, DRUMMOND
June 22, 2000
The North Dakota Agricultural Experiment Station at North Dakota State University is releasing a six-rowed white barley, Drummond. NDSU six-rowed barley breeder Richard Horsley developed Drummond from a cross he made in 1991 that involved two North Dakota experimental lines and Stander, a cultivar from the University of Minnesota. Drummond will be subject to the 1994 amendments of the Plant Variety Protection Act with the Title V option.

Drummond is named in honor of Bill Drummond, the first executive director of the North Dakota Barley Council. During his career, Drummond also worked as an agronomist for the Malting Barley Improvement Association and as an agent for the NDSU Extension Service.

NDSU scientists have been conducting agronomic and disease evaluations of Drummond in North Dakota since 1994, Horsley says. Data from those evaluations indicate that Drummond has a greater yield potential than Morex, Robust and Foster and is similar in yield to Stander. Drummond has a greater degree of straw strength than any commercially available six-rowed cultivar and is similar in heading date and plant height to Robust.   Drummond is resistant to spot blotch has and better net blotch resistance than any other six-rowed variety. Drummond is similar to Robust in its resistance to Fusarium head blight (scab), Horsley says.

The American Malting Barley Association is currently evaluating Drummond, but AMBA has not yet rendered a decision regarding Drummond's acceptability as a malting variety, Horsley says. In its first-year evaluation, however, Drummond demonstrated satisfactory malting and brewing qualities.

In 1999, North Dakota producers grew about 1.4 million acres of barley, nearly 70 percent of which was the variety Robust. In statewide trials covering many years, Drummond has outperformed Robust, on average, by more than 2 bushels per acre, says Al Schneiter, chair of the Department of Plant Sciences at NDSU. At current feed barley prices and with a planted area similar to 1999, the economic impact of Drummond's yield advantage would mean a revenue increase of about $2.7 million annually for North Dakota producers.  "If Drummond is approved as a malting variety, then the economic impact would be significantly greater," Schneiter concludes.

Phones are temporally down due to the excessive rainfall, so if you have questions, please use these e-mail addresses.  Thank you. dhulse@ndsuext.nodak.edu or  tjirik@ndsuext.nodak.edu

 

 

NDSU RELEASES SPRING OAT VARIETY
June 22, 2000
The North Dakota Agricultural Experiment Station at North Dakota State University is releasing Killdeer, a spring oat variety named for the county seat of North Dakota's Dunn County. Killdeer is the result of a cross that NDSU oat breeder Mike McMullen made in 1990 between experimental lines from North Dakota and Illinois. Killdeer will be subject to the 1994 amendments of the Plant Variety Protection Act, but without the Title V option.

During three years of evaluation at nine locations in North Dakota, Killdeer produced higher average grain yields than any commercial variety currently available, McMullen says. The test weight of Killdeer is similar to AC Assiniboia. Killdeer is a comparatively early maturing cultivar, with an average heading date about one day later than Jerry, another NDSU variety.

"Killdeer offers an advantage to producers in that it is an early maturing cultivar with grain-yield potential exceeding later-maturing varieties," McMullen says.

Killdeer produces medium-large kernels with white hulls. Killdeer's groat percentage is slightly greater than Jerry's, but its whole-oat protein content is slightly lower than Jerry's.

McMullen says the groat lipid content of Killdeer is similar to that of Jerry. In addition, Killdeer has moderate crown rust resistance and is resistant to the prevalent races of stem rust.

In recent years North Dakota's annual oat acreage has averaged about 750,000 acres, of which producers harvest one-third for forage while they devote two-thirds to grain production. Killdeer
is expected to replace acreage of Otana, a variety that producers
currently plant on about 35 percent of their oat acres, says Al
Schneiter, chair of NDSU's Department of Plant Sciences.

In North Dakota variety trials from 1997-99 Killdeer has
outyielded Otana by 38.4 percent. Schneiter says that if Killdeer
were to replace Otana on only 50 percent of North Dakota's oat
acreage devoted to grain production, then the state's producers
might expect to receive an additional $3 million of annual
income, based on current prices for feed oats.

Phones are temporally down due to the excessive rainfall, so if you have questions, please use these e-mail addresses.  Thank you.
dhulse@ndsuext.nodak.edu or  tjirik@ndsuext.nodak.edu