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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.

During the U.S. Wheat Associates (USW) annual board of directors meeting last month in Nashville, a resolution was approved to form a World Trade Organization (WTO) task force. The formation of a U.S. wheat industry strategy heading into the next WTO negotiations, which kick off in November 2000 in Seattle, will be the focus of USW’s March meeting in Washington, D.C.

Hamnes elected USW Vice Chair

USW 1999-2000 officers were elected in Nashville. They are Christopher Shaffer, Washington, chairman; Bruce Hamnes, Minnesota, vice-chairman; and Henry Joe Von Tungeln, Oklahoma, secretary-treasurer. These individuals will take office following the summer 1999 USW board of directors meeting, at which time Jerry Kress, Idaho, will serve as past-chairman.

Exports of Food Aid Banned in Russia

The Russian government has banned the re-export of agricultural commodities and food products, including wheat, being shipped to Russia under the massive U.S. food aid program. The ban should ease any concerns that such re-exports might occur. Last fall, Russian grain exports were considerably high following the devaluation of the ruble. The U.S. food aid package to Russia includes 1.7 million tons of wheat. The European Union is supplying one million tons of wheat to Russia in the form of aid.

Drought Affecting Wheat Crop in China

One third of China’s winter wheat crop is being affected by what is being called the worst drought of the decade. News reports indicate approximately 9.5 million hectares of the 26.25 million planted hectares have been affected by the drought. In order to prevent serious yield reductions, rain is needed in March when the crop comes out of dormancy. Winter wheat accounts for 90% of total wheat production in China.

USW urges action on Canadian trade practices

USW recently sent a letter to U.S. Secretary of Agriculture Dan Glickman and U.S. Ambassador Charlene Barshefsky (USTR) to bring their attention to a resolution approved by USW’s board of directors calling for Canadian wheat pricing information and an end to discrimination toward U.S. wheat in Canada. The resolution calls for the establishment of the necessary leverage to convince Canada to:

1) Provide the pricing information needed to determine whether the Canadian Wheat Board is dumping grain into the United States, and

2) End its discrimination toward U.S. wheat that could potentially enter the Canadian grain handling and transportation system.

The letter expresses concern about unfair Canadian Wheat Board (CWB) pricing practices in third country markets, where USW has received reports from buyers on standing offers by the CWB to sell wheat at $7 per ton or more below prevailing U.S. prices.

"The lack of real progress in reforming the CWB is raising the hackles of U.S. producers as a whole," USW President Alan Tracy said. "As a government backed monopoly, the CWB can set prices where it wishes without the risk that private exporting companies face."

USW’s letter is supported by a publication produced by the North Dakota Wheat Commission, "Grains of Truth About U.S.-Canada Wheat Trade," which highlights key inequities in cross border trade and Canada’s predatory actions in third country markets. Among the publication’s key points:

• Some U.S. farmers benefit from corn and soybean exports to Canada, but the overall balance in agricultural trade has tipped in Canada’s favor by an average $742 million annually during the period of 1996 to 1998.

• Canada has been increasingly targeting the U.S. market for wheat, to the degree that the United States is on average Canada’s number two destination for all wheat exports combined, second only to China.

• U.S. spring wheat and durum are superior to their Canadian counterparts on several key quality factors, in spite of Canada’s claims.

• The Canadian Wheat Board controls average annual wheat exports of 680 million bushels, compared to the estimated 228 million bushels of U.S. wheat that would be controlled by the proposed and much scrutinized Cargill-Continental merger.

• Canadian wheat growers receive $.50 to $.75 per bushel less than U.S. wheat growers. This is despite some advantage on rail freight costs and Canadian Wheat Board claims of allegedly obtaining premium sales prices.

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