Issue 26
February 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 Association.

Copyright
Prairie Grains Magazine
February 2000

"Harvest The Energy" Prairie Grains Conference attracts close to 400

Close to 400 producers from North Dakota and Minnesota turned out for the Prairie Grains Conference and Expo, held December in Fargo and sponsored by the Minnesota Association of Wheat Growers, Minnesota Barley Growers Association, the North Dakota Grain Growers Association, and Northland Community Technical College's Farm Business Management Program.  Spring Wheat Bakers also held its annual shareholder meeting in conjunction with the event.  Highlights of the meeting follow.

Galvin cites U.S.-Canada trade progress

Tim Galvin, administrator of the USDA's Foreign Ag Service, told attendees of the recent Prairie Grains conference via live satellite TV downlink that U.S. trade negotiators made "substantial progress" in talks with EU negotiators at last year's WTO ministerial meeting in Seattle on negotiation parameters of key issues including discipline of state trading enterprises, market access and tariffs, artificial trade barriers, and genetically-enhanced commodities. 

But the EU thus far is hanging tough on its willingness to negotiate its use of export subsidies.  "The rest of the world is lining up against the EU on this issue," Galvin said.  Negotiators hope to settle on parameters of the next round of talks when they reconvene in Geneva later this year.

Galvin said he is excited about the recent bilateral trade agreement with China, and "the promise of freer trade there." He also cited progress in the first year of a trade accord with Canada, spearheaded by U.S. producer complaints of unfair Canadian grain and livestock trading practices.

Among the improvements are streamlined procedures for grain from eligible states to be transshipped through Canada to other U.S. destinations.  Also, cooperation in harmonizing the pesticide review and registration process in the two countries.  The joint progress report on the U.S.-Canada ROU is available on the web at www.fas.usda.gov

NAWG accomplishments

Jack Eberspacher, CEO of the National Association of Wheat Growers, briefed Prairie Grains Conference attendees on NAWG positions and actions on several issues, including emergency assistance, recommendations on fixing the farm bill, tax reform, and crop insurance. Over 20 state wheat associations are affiliated with the NAWG, which is headquartered only a few blocks from Capitol Hill, and this year celebrates 50 years in existence as the voice on national wheat policies.  Producers who join their state wheat associations automatically become members of the NAWG.

In Washington D.C. in 1998, and again in 1999, it was almost unanimous among farm groups that another market assistance package was needed.  Because of this unified agricultural voice, it was much easier for Congress to make the appropriation needed, which doubled the Agricultural Market Transition Act (AMTA) payment.

The NAWG is already in the process of developing policy recommendations for 2000, Eberspacher said, adding that it needs to be developed and supported by other groups as well, so a clear, collective voice on recommendations can be taken to Capitol Hill.

Farm bill recommendations expected

Bill Northey, an Iowa producer, past president of the National Corn Growers Association, and current member of the 21st Century Commission on the Future of Agriculture,  charged with compiling post "Freedom To Farm" recommendations, said he does not expect major changes to the farm bill this year.  He said there could be a tune-up to federal crop insurance, however.

Northey said the Commission, chaired by Kansas State University ag economist Barry Flinchbaugh, will release a report this year outlining initial policy options to implement when the current farm bill expires.

"The design of it is to put options out for discussion well before 2002 to know and debate ahead of time," said Northey.  "With a year and a half to throw at it, it's hard to imagine that what will initially be released would be adopted as policy after 2002."

2000 farm policy resolutions

At the Prairie Grains Conference, members of the MAWG and NDGGA approved farm policy resolutions for 2000.  The resolutions for each organization addressed issues related to a variety of issues including domestic farm programs, trade, value-added agriculture, research, taxes and grain transportation. 

Among the MAWG resolutions, members voted to continue to support the 1996 "Freedom to Farm" law, but only if all remaining provisions essential to the law are implemented immediately, including crop insurance reform, a better safety net, aggressive trade policies and harmonization of pesticide laws with Canada.

Among the NDGGA's resolutions:

•  To support the concept of adding a section to the 1996 "Freedom to Farm" law that would provide a safety net by permanently adding a direct payment triggered when grain prices fall below an established price level based on cost of production.

•  The U.S. Department of Agriculture should discontinue its appeal of the court judgement that Crop Revenue Coverage rules (CRC) for durum in 1999 should not have been changed after producers signed up for the coverage. Dropping the appeal would release an escrow fund to producers eligible for payments under the program.

•  The NDGGA supports the North Dakota Wheat Commission to pursue trade actions against Canada for relief of imported durum and hard red spring wheat into the U.S.