Issue 32
November/
December 2000

Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc. and the Minnesota Barley Growers Assocation.

Copyright Prairie
Grains Magazine
 November/
December 2000

News & Views

Association Perspectives:

With Election Dust Settling, Attention Turns to Ag Issues in 2001.

With the election dust settling, attention now turns toward key rural issues looming at state and federal levels.

On Capitol Hill, discussion on a new farm bill will take center stage. Wayne Hammon, director of government relations for the National Association of Wheat Growers, notes that the House Agriculture Committee is very likely to draft new farm bill language next year. The Senate Committee will probably move at a slower pace, although Hammon notes that half of the Senate Agriculture Committee is up for election in 2002, and there is pressure to work the farm bill very early in 2001 to avoid election-year politics feeding into 2002. 

Key questions in the discussion of a new farm bill will be re-formulating base acres, loan rates, and of course, the need for a commodity price safety net, a key complaint of "Freedom To Farm." The NAWG is proposing a trigger price to be put in place, so when prices dipped below a certain level, a counter-cyclical payment would be triggered.

Federal crop insurance (many still aren't convinced that it has been reformed), transportation competitiveness, agribusiness mergers, gene technology, sanctions reform,

World Trade Organization negotiations, estate and capital taxes, and harmonization of pesticide laws are other issues that will be high on the federal agenda.

Also, if the price slump continues into the next growing season, with higher fuel prices and a drop in the scheduled transition payment, will there be another emergency assistance payment in 2001?

Hammon will discuss in greater detail how the national election results will affect U.S. agriculture at the Prairie Grains Conference and Expo, December 5 at the Ramada Plaza Suites, in Fargo.

Let's not forget matters-at-hand in the state legislature, including tax issues and reapportionment of legislative districts based on population shifts, that are sure to impact rural areas.

A lot of important ag issues remain on the table, with a lot of new government officials (including appointees and staff of these elected officials) who are unfamiliar with these issues. All the more reason why it's important to support a strong, active growers association to help educate lawmakers.

We recall a classic example from the early 1990s, when leaders from the Minnesota Association of Wheat Growers met with an official from one of the state's environmental agencies.  Incredibly, one state regulator had the impression that farmers had underground pipelines extending from field to field from which tractors and combines were refueled, creating a potential environmental hazard.  This misconception was quickly set straight, and helped avert what could have been a needless regulatory hoop. 

Telling the grain grower's side of the story to the public and to lawmakers is a key objective of our associations. We look forward to carrying this objective forth in 2001.

USTR commits to investigating allegations against CWB

U.S. Trade Representative Charlene Barshefsky has announced her office's decision to proceed with an official investigation into the anti-competitive trade practices and policies of the monopolistic Canadian Wheat Board and the government of Canada, as alleged by the North Dakota Wheat Commission.

Provisions for the investigation fall under Section 301 of the Trade Act of 1974, which authorizes the USTR to retaliate against any unjustifiable, unreasonable or discriminatory act or policy of a foreign country.

The NDWC has obtained numerous documented case studies from third country sources that point to discriminatory pricing practices by the CWB, but until now has been without means to force the release of hard pricing data and documentation from Canada. The entire 301 investigation process could take a year, but the NDWC is hopeful that all elements can be completed more expeditiously.

In its petition, the NDWC is seeking both short-term relief to CWB trade distortions and a long-term solution that addresses the very nature of the Canadian government's monopoly over the procurement and sale of Canadian wheat.

"Association Perspectives" represents the views of the North Dakota Grain Growers Association, South Dakota Wheat Inc., Minnesota Barley Growers Association, and the Minnesota Association of Wheat Growers, which publishes Prairie Grains along with the Minnesota Wheat Research and Promotion Council.