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News from the Minnesota Association of Wheat
Growers for Friday, June 30,  2000

CLINTON'S THOUGHTS ON REMOVING SANCTIONS ON FOOD AND MEDICINE TO CUBA
Newswire sources suggest President Clinton, on Wednesday, gave his "conditional" support for House legislation that would allow for the sales of US food and medicine to Cuba.  However, reports also indicate Clinton is not ready to move toward "normalizing" relations with Fidel Castro just yet.  Speaking at a new conference, Clinton indicated he would be "inclined to sign the bill", but expressed concerns over provisions of the House legislation that would put new constraints on a president's ability to apply sanctions to foreign countries in the future.  Furthermore, Clinton reportedly is not fully convinced the bill will actually facilitate sales of US food and medicine to Cuba and wants more analysis done on the subject before giving it his full endorsement.  Sources report the House bill would not allow for the use of USDA credits or other public financing to encourage the sale of US agricultural commodities to Cuba.

 

 

U.S. WHEAT ASSOCIATES INSTALLS MN PRODUCER AS 2000-01 CHAIR
The 2000-2001 leadership for U.S. Wheat Associates was installed this week at the annual summer board meeting in Seattle, Washington.  The new Chairman of the Board of Directors is Bruce Hamnes, a wheat farmer from Stephen, Minn.  Henry Jo Von Tungeln, who has been growing wheat in Oklahoma since 1949, is the new Vice Chairman.  Jim McDonald, a wheat producer from Idaho, is the organization's Secretary-Treasurer.

The newly installed officers offer a wealth of experience as USW works to expand the export market for U.S. wheat.  In addition to his experience in various wheat organizations through the years, Hamnes has worked with the University of Minnesota as advisor to overseas agricultural projects, and Von Tungeln has traveled extensively to Europe, Africa and Latin America on behalf of wheat growers to promote wheat and wheat trade.  McDonald has extensive experience in the grain industry at the county, state and national levels.

"Maintaining and increasing the export market for U.S. wheat is absolutely essential, since we need to export almost half of the wheat grown in the U.S. every year," said Hamnes. "We have a global market share of around 28%, making us the world's largest wheat exporter, but we face increasingly stiff competition from Canada, Australia, the European Union and Argentina.

Our Board of Directors, together with staff working in every major overseas wheat market, are privileged to have the support of America's wheat growers as we meet those challenges head-on."

U.S. Wheat Associates is the industry's export market development organization, working in over 100 countries on behalf of wheat producers in 19 states.

For more information contact,Dawn Forsythe, 202-463-0999

 

 

U.S. PROPOSES SWEEPING REFORMS ON FARM TRADE ISSUES
WASHINGTON, June 29 (Reuters) - According to Reuters, the United States on Thursday outlined a set of sweeping farm trade reforms aimed at leveling the international playing field by limiting how much governments can spend on programs that distort trade.

The proposal, which will be formally presented to the World Trade Organization on Friday, would allow U.S. farmers to "sell their commodities in every corner of the earth without being undercut by subsidized competition or blocked by high tariffs," U.S. Agriculture Secretary Dan Glickman said.

It would help developing countries expand their farm exports by requiring the European Union and other developed countries to curb programs that encourage surplus production, U.S. Trade Representative Charlene Barshefsky said.

At the same time, the proposal also "recognizes the appropriate role governments can play in supporting farmers and rural economies, as long as they do not do so at the expense of people on the land elsewhere in the world," she said

 

 

WORLD WHEAT PRODUCTION ESTIMATES MOVE DOWNWARD
On Thursday, the International Grains Council (IGC) revised their monthly estimates of world grain production and pegged 2000-01 world wheat production at 577 MMT, down from their previous forecast of 587 MMT.  Moreover, 2000-01 world wheat trade was estimated to reach 104 MMT, compared to their June 1 forecast of 102 MMT.  Furthermore, sources indicate IGC forecast 2000-01 world wheat use at 596 MMT, down 4.0 MMT from their previous estimate.  Consequently, the IGC trimmed their June 1 2000-01 world wheat ending stocks estimate by 2.0 MMT to 103 MMT.

Statistics Canada also issued, on Thursday, their forecast for 2000-01 Canadian wheat acreage.  Newswire sources report Statistics Canada estimates 2000-01 Canadian spring wheat acreage at 19.87 MA (8.04 MH), down 3% from their 1999-00 forecast of 20.47 MA (8.28 MH).  In addition, the commodity group also pegged 2000-01 Canadian winter wheat acreage at 992 TA (401 TH), 5% higher than their 1999-00 estimate of 937 TA (379 TH).  Finally, Statistics Canada forecast 2000-01 Canadian durum wheat acreage at 6.45 MA (2.61 MH), up nearly 47% from their 1999-00 figure of 4.39 MA (1.78 MH).

 

 

US WHEAT INDUSTRY CALLS FOR IDENTITY PRESERVATION SYSTEM PRIOR TO COMMERCIALIZATION OF GM WHEAT
Declaring that the customer comes first, U.S. Wheat Associates announced a major effort to develop a system to ensure that wheat importers around the world will always be able to get non-genetically modified U.S. wheat, if that is what the buyer wants.

At their annual summer meeting this week, the USW Board of Directors formally adopted a biotechnology policy that states "the U.S. wheat industry commits itself absolutely to the principle that our customers' needs and preferences are the most important consideration." Although genetically modified wheat will not be commercialized before 2003 and available for farmer production for a year or two after that, the USW Board of Directors recognized that, even at this early point, there are some overseas customers who have already informed the wheat industry that they only want to purchase traditional wheat.

"85% of Idaho's wheat goes to overseas markets," said Heidi Linehan, wheat grower and USW board member from Idaho, "and it is absolutely essential to listen to our overseas customers and heed what they say."

"We are very sensitive to the concerns of these customers," explained Darrell Hanavan, chairman of USW's biotechnology committee and Executive

Director of the Colorado wheat producers organizations. "We intend to work with all segments of the industry -- the technology providers, producer representatives, country elevators, and exporters -- to develop a viable identity preservation system that will ensure that our customers continue to get the specific wheat traits they want."

Hanavan explained that he and others were working with technology providers, and that the companies were keenly aware of concerns for the export market in countries where there is consumer resistance to genetically modified food. To address those concerns, the USW board strongly urged the biotechnology companies to "ensure customer acceptance prior to commercialization" of wheat developed using biotechnology. USW also committed itself to assuring that a testing and certification program is instituted before genetically modified wheat is commercialized. "We have an obligation to our customers and to wheat producers to establish these programs," Hanavan said.

To better ascertain what further advances in biotechnology can do to develop wheat traits that are needed by customers, the USW Board position indicates that the wheat industry wants to explore some possible venues for technical sessions with interested overseas customers.

"We have some customers overseas who have told us that they see that biotechnology provides advantages for growers," explains Mark Samson, vice president in USW's Asian region. "But they are asking what biotechnology is going to do to benefit the millers and consumers of U.S. wheat. We need those answers."

The Board also adopted a definition of "biotechnology-derived products" that they will use to encourage international harmonization of definitions, standards and trade rules.

U.S. Wheat Associates is the industry's export market development organization working in over 100 countries, supported by wheat growers in 19 states. Nearly half of the wheat grown in the U.S. is destined for the export market.

For more information call:
Dawn Forsythe, 202-463-0999

 

 

THE MARKET ADVISOR: BASIS IMPLICATIONS FOR MARKETING DECISIONS
By George Flaskerud, Extension Crops Economist

Basis levels for spring wheat, corn and soybeans in North Dakota are approximating basis levels during calendar years 1998 and 1999. What are the implications for marketing decisions if 1999 basis patterns are repeated?

The analysis that follows is based on monthly averages of the nearby basis at three North Dakota locations: Hunter, Gladstone and Minot. Read more at http://www.ext.nodak.edu/extnews/.

 

 

REGISTRATION GRANTED FOR RONILAN ON CANOLA
As you know from the recent joint news release of the Northern Canola Growers Association and the Minnesota Canola Council, a section 3 (full registration) was granted on June 21 for the use of Ronilan on canola for Sclerotinia stem rot.  It has the advantage of being highly effective over a wide window of application: 20-50% bloom.  Other products registered in the US and Canada provide good management when applied early, but do not provide the same broad window of application; this may be one reason for the consistent performance of Ronilan over a wide range of locations and environmental conditions.  Ronilan is to be applied at 20-50% bloom.  Ronilan is less effective if applied after 50% bloom. It is to be used at 10.6 to  16 oz/A.  These rates are consistent with the Canadian label.

Ronilan has consistently provided excellent Sclerotinia management at the 12 oz/A rate.  I would suggest that the 12 oz rate be used in most situations.  A higher rate, such as 14 oz, might be considered under extreme conditions such as high yield potential (over 2,000 lb/A, especially if the potential is 3,000 lb/A) and high disease potential.  High disease potential situations include a field that had severe Sclerotinia in that or nearby fields in recent years, a heavy crop canopy, and 4-5 inches of rain in the past 2 weeks.

Ronilan was being stockpiled in the area even before the section 3 was granted.  Consequently, the Ronilan in warehouses does not contain the supplemental label for canola.  Growers and applicators who use Ronilan will need the supplemental label. 

The supplemental label is available on the website of the North Dakota Department of Agriculture: http://www.agdepartment.com/pestlbl.html ;and the website of the NDSU Extension Service Pesticide Program: http://www.ag.ndsu.nodak.edu/aginfo/pesticid/LabelPage.htm

Until phone service is restored at NDSU, my cell phone number is
701-799-3313.

Art Lamey
alamey@ndsuext.nodak.edu
Extension Plant Pathologist
N. D. State Univ.,
Box 5012, Fargo, ND 58105
FAX: 701-231-7851    
Tel.: 701-231-7056