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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 Association.

1999 Domestic Wheat Plan
Safety Net— Measures are needed to correct commodity prices below cost of production, resulting in liquidation of equity or cash.
• Improve farm cash flow by lifting loan caps and reauthorizing ‘99 market loss payments.
• Advance year 2000 Agricultural Marketing Transition Act Payments (AMTA).
• Reform crop insurance to develop affordable alternatives that will protect against crop and revenue losses.

Environment—The wheat industry is in danger of losing more crop protection tools due to new regulations by the U.S. Environmental Protection Agency (EPA). Specific action needed:
• Support continued availability of phosphine, a tool that farmers and grain handlers use to control insects.
• Use sound science in implementing food quality protection.
• Reinforce efforts to harmonize U.S./Canadian regulatory programs for pesticides.

1999 Wheat Export Plan
The following steps are recommended to move more U.S. wheat into export markets to improve the outlook for declining farm income. Moreover, an aggressive U.S. position on wheat trade will improve U.S. leverage in the upcoming agricultural trade talks in the World Trade Organization.

Legislative action:
• Request that the administration immediately approve Niki Trading Company’s request to buy $500 million of U.S. agricultural products for Iran.
• Seek an end to trade sanctions that currently preclude U.S. wheat from 11% to 15% of the world market.
• Fund existing export programs to the full extent authorized in the 1996 farm bill.
• Fund discretionary export programs like PL-480 Title I and the Foreign Market Development /Cooperator Program at fiscal year 1999 program levels or greater.
• Fund the Market Access Program at the fiscal year 1999 level.
• Fund the Export Enhancement Program at the Farm Bill authorized level of $579 million. • Approve trade negotiating authority (fast track) immediately.
• Approve the United States Agricultural Trade Act Of 1999 (S. 101), to promote trade in U.S. agricultural commodities, livestock, and value-added products and to prepare for future bilateral and multilateral trade negotiations.
• Approve the Food and Medicine Sanctions Relief Act of 1999 (S. 327), to exempt agricultural products, medicines, and medical products from U.S. economic sanctions.

Administrative action:
• Aggressive use of existing export programs: EEP, GSM-102/103, and PL 480 Title I.
• Target EEP to offset European export subsidies and to combat the discriminatory pricing practices of State Trading Enterprises. The EU has increased the level of its subsidies, while U.S. stocks continue to increase.
• End administrative sanctions on the export of food and medicine to Iran and Sudan.
• Increase wheat and flour donations to Cuba and to North Korea.
• Urge greater U.S. wheat sales under an expanded U.N.-sanctioned Oil for Food Program for Iraq.
• Negotiate an end to China’s ban on U.S. wheat due to a perceived threat of TCK (a fungal disease).
• Resolve the problem of India’s discriminatory sanitary/phytosanitary standards and tender specifications.
• Initiate negotiations with Chile to eliminate the Chilean price band system for wheat.
• Provide increased wheat flour, under Section 416 to Yemen, to counter EU subsidized flour exports.
• Avoid interference with commercial market sales under monetary projects where U.S. government assistance is provided.
• Pursue the lifting of Brazil’s remaining ban on all wheat imports from the U.S.
• Implement a grain cleaning program and consider other innovative ideas to enhance the competiveness of U.S. wheat.
• Pursue a lower tariff on high quality U.S. durum exports to the EU.
• Support the elected wheat producer representative to the Agriculture Policy Advisory Committee and the World Trade Organization. This position will allow U.S. wheat producers to speak with a united voice on trade. USDA, the U.S. Trade Representative, and Congress are asked to rely on this individual for guidance and direction throughout the upcoming trade negotiations

Leaders of the National Association of Wheat Growers drafted measures on several key policy issues, at the NAWG’s spring board meeting held recently in Washington, D.C.