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Wheat Grower Organizations: Enforcing Trade Rules is Best Done Within the Rules

ARLINGTON, Virginia — While U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) understand and support the need to enforce international trade rules, we are very concerned about the implications of the Trump Administration’s decision today to impose more than $60 billion in tariffs on Chinese goods under Section 301 of the Trade Act of 1974.

We agree that unfair Chinese government policies create unnecessary trade distortions that hurt U.S. farmers and other industries. Our organizations urged the U.S. government to challenge China’s domestic price support and tariff rate quota compliance that led to cases disputing these policies within the World Trade Organization (WTO). Such cases served notice to China and our trading partners that the United States would lead a legitimate effort to enforce existing trade rules — by following those rules. We believe that it is in the nation’s best interests, and the interests of the wheat farmers we represent, to challenge trade distorting policies to the maximum extent possible within WTO rules.

It is unfortunate that the well-intentioned decision to challenge other Chinese trade policies has been implemented in a way that violates the rules outlined in Article II of the GATT Agreement. Recent actions including withdrawal from the Trans-Pacific Partnership and implementing steel and aluminum tariffs on the basis of national security have already undermined U.S. leadership in international trade. Now this action further erodes historical support for rules-based trade policies, even though China will likely bring a case against the tariffs within the WTO dispute settlement process.

In addition, USW and NAWG fear that applying unilateral tariffs could invite retaliation that, as recent history shows, would be aimed at U.S. agricultural products. This could very well include China throwing up road blocks to U.S. soybeans, wheat, corn and other commodity imports, which would cut into already unsustainable farm incomes.

We welcome the administration’s strong support for enforcing trade rules. We only wish it would have challenged China’s state-driven policies in ways that complied with and strengthened existing trade rules.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Organizations Ask USTR to Work Toward Re-Joining TPP to Prevent Serious Revenue Loss

ARLINGTON, Virginia — U.S. Wheat Associates (USW), the National Association of Wheat Growers (NAWG) and 33 state wheat organizations have expressed hope in a letter to U.S. Trade Representative (USTR) Robert Lighthizer that the Administration will immediately prioritize accession to TPP to save the valuable Japanese market for U.S. wheat farmers.

“Once TPP is ratified, U.S. wheat exports to Japan will be at serious risk,” the letter stated. “TPP will reduce the effective tariffs that Japanese flour millers pay for imported Australian and Canadian wheat over nine years from about $150 to about $85 per ton. Effective tariffs on imported U.S. wheat would remain at about $150 per ton. Loss in market share and its negative effect on farmgate prices are likely to come much sooner, as Japanese millers reformulate their product mix to avoid the need to purchase artificially expensive U.S. wheat. Lost market share is incredibly difficult to regain.”

The wheat industry organizations noted that Japan has, on average, imported more U.S. wheat than any other country for many years. U.S. wheat market share is typically more than 50 percent of the 6 million metric tons (MMT) of wheat Japan imports annually. Sources within the Japanese milling industry however estimate that could quickly fall to less than 25 percent under TPP 11 rules. At the average price Japan has been paying for U.S. wheat the past five years, that would represent an annual loss of almost $500 million for farmers, rail and barge operators and grain handlers.

“Unfortunately, the agreement among the TPP members will have a devastating impact in rural communities across the wheat belts of the Great Plains and the Northwest, though it will hurt the income of every American farmer growing wheat,” the letter continued. “The President has promised to negotiate great new deals. American agriculture now counts on that promise and American wheat farmers – facing a calamity they would be hard pressed to overcome – now depend on it.”

The organizations said they welcomed the President’s recent openness to joining TPP if better terms for the United States can be negotiated. They also suggested that Ambassador Lighthizer could include acceding to the TPP as an objective in the Administration’s report to Congress that will outline its request to extend Trade Promotion Authority.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

Letter:

The Honorable Robert E. Lighthizer
Ambassador
United States Trade Representative
600 17th Street, NW
Washington, DC 20508

March 7, 2018

Dear Ambassador Lighthizer,

As you prepare the Administration’s report to Congress accompanying the request for extension of Trade Promotion Authority (TPA), the undersigned organizations strongly urge including the objective of acceding to the Trans-Pacific Partnership (TPP) before the extension of TPA expires on July 1, 2021.

As representatives of more than 140,000 American wheat farmers, we welcomed President Trump’s recent comments suggesting openness to joining the TPP. Unfortunately, that has become an urgent need as the eleven members of TPP plan to sign the agreement on March 8th in Chile. We hope that the Administration will immediately prioritize accession to TPP in order to save the valuable Japanese market for U.S. wheat farmers.

Once TPP is ratified, U.S. wheat exports to Japan will be at serious risk. Australia and Canada – both TPP members – are major competitors to U.S. farmers in wheat and other agricultural products. TPP will improve their access to several markets, resulting in an erosion of U.S. market share, particularly in Japan, and a major hit on farm income at home.

TPP will reduce the effective tariffs that Japanese flour millers pay for imported Australian and Canadian wheat over nine years from about $150 to about $85 per ton. Effective tariffs on imported U.S. wheat would remain at about $150 per ton. Loss in market share and its negative effect on farmgate prices are likely to come much sooner, as Japanese millers reformulate their product mix to avoid the need to purchase artificially expensive U.S. wheat. Lost market share is incredibly difficult to regain.

In many ways, the Japanese market has been the backbone of the U.S. wheat industry for decades because of its consistent demand for high quality wheat. That is now at serious risk. Japan imports around 3 million metric tons (MMT) of U.S. wheat per year, with an average value of over $800 million. Sources inside the Japanese milling industry tell us this $65 per ton disadvantage will force them to cut U.S. wheat to about 1.35 MMT, a loss of approximately $500 million per year.

Unfortunately, the agreement among the TPP members will have a devastating impact in rural communities across the wheat belts of the Great Plains and the Northwest, though it will hurt the income of every American farmer growing wheat. The President has promised to negotiate great new deals. American agriculture now counts on that promise and American wheat farmers – facing a calamity they would be hard pressed to overcome – now depend on it.

Like President Trump, American farmers do not enjoy losing to their competitors. They want to make great deals and see their family businesses thrive. If the President brings us into TPP, U.S. farmers can start winning again among the world’s most important agricultural markets. The undersigned organizations strongly urge you to put forward the objective of U.S. membership in TPP to prevent this market loss and put the farmers we represent on a strong foundation for the future.

Sincerely,

National Association of Wheat Growers
U.S. Wheat Associates
Arizona Grain Research & Promotion Council
California Association of Wheat Growers
California Wheat Commission
Colorado Association of Wheat Growers
Colorado Wheat Administrative Committee
Idaho Grain Producers Association
Idaho Wheat Commission
Kansas Association of Wheat Growers
Kansas Wheat Commission
Kentucky Small Grain Growers’ Association
Maryland Grain Producers Association
Maryland Grain Producers Utilization Board
Minnesota Association of Wheat Growers
Minnesota Wheat Research & Promotion Council
Montana Grain Growers Association
Montana Wheat & Barley Committee
Nebraska Wheat Board
Nebraska Wheat Growers Association
North Carolina Small Grain Growers Association
North Dakota Grain Growers Association
North Dakota Wheat Commission
Ohio Corn & Wheat Growers Association
Oklahoma Wheat Commission
Oklahoma Wheat Growers Association
Oregon Wheat Commission
Oregon Wheat Growers League
South Dakota Wheat Inc.
Texas Wheat Producers Association
Texas Wheat Producers Board
Washington Association of Wheat Growers
Washington Grain Commission
Wyoming Wheat Growers Association
Wyoming Wheat Marketing Commission

cc:
The Honorable Sonny Perdue, Secretary, U.S. Department of Agriculture
The Honorable Wilbur Ross, Secretary, U.S. Department of Commerce
The Honorable Pat Roberts, Chairman, Senate Agriculture, Nutrition & Forestry Committee
The Honorable Debbie Stabenow, Ranking Member, Senate Agriculture, Nutrition & Forestry Committee
The Honorable Orrin Hatch, Chairman, Senate Finance Committee
The Honorable Ron Wyden, Ranking Member, Senate Finance Committee
The Honorable Michael Conaway, Chairman, House Agriculture Committee
The Honorable Collin C. Peterson, Ranking Member, House Agriculture Committee
The Honorable Kevin Brady, Chairman, House Ways & Means Committee
The Honorable Richard Neal, Ranking Member, House Ways & Means Committee

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Joint Statement from U.S. Wheat Associates and the National Association of Wheat Growers
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NAWG and USW Applaud the Senate Confirmation of Gregg Doud to be Chief Ag Negotiator at USTR

ARLINGTON, Virginia — Today, the United States Senate confirmed Gregg Doud to be Chief Agricultural Negotiator in the Office of the United States Trade Representative. Trade is a top priority for U.S. wheat farmers and this nomination is welcome news for our growers.

“We believe the confirmation of Gregg Doud will bring a needed agriculture voice to USTR’s political leadership,” stated NAWG CEO Chandler Goule. “NAWG congratulates Doud on his appointment and are looking forward to working with him and his team in the future.”

From 2011-2013, Doud was a senior aide to the Senate Agriculture Committee for Senator Pat Roberts and Senator Thad Cochran. There he assisted in drafting what would become the 2014 Farm Bill. For eight years, Doud also served as Chief Economist for the National Cattlemen’s Beef Association. He is also a former market analyst at U.S. Wheat Associates (USW).

“We are pleased that Mr. Doud’s confirmation comes at a time when our organizations are actively engaged in discussions at home and with overseas customers about trade policies that directly affect export demand,” said USW Associates Chairman Mike Miller, a wheat farmer from Ritzville, Wash. “We need his experience in the NAFTA renegotiation and to help prevent huge potential export losses under the new Trans-Pacific Partnership that will be signed March 8 without the United States.”

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About U.S

. Wheat Associates

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Steel, Aluminum Tariffs Raise the Risk of Retaliation Against U.S. Agriculture

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are extremely disappointed in the decision announced today to impose sweeping tariffs on imports of steel and aluminum. We have repeatedly warned that the risks of retaliation and the precedent set by such a policy have serious potential consequences for agriculture. It is dismaying that the voices of farmers and many other industries were ignored in favor of an industry that is already among the most protected in the country.

If the United States is taken to dispute settlement at the World Trade Organization (WTO) for imposing these tariffs, we call on the U.S. Trade Representative (USTR) to avoid invoking the essential security exception under GATT Article XXI. The recent Department of Defense memorandum made it clear that imported steel and aluminum did not threaten its ability to acquire enough from domestic suppliers to meet its needs. The USTR should not take the extraordinary step of invoking Article XXI to defend what we believe is protectionism.

At NAWG’s board of directors meeting this week, a new resolution was passed urging the Administration to avoid imposing national security-based trade barriers on commonly traded products. NAWG’s newly instated President Jimmy Musick, a wheat farmer from Sentinel, Oklahoma, said “at such an economically hard time for wheat growers, we do not want to see trade barriers brought against us from some of our top customers who are impacted by this decision.”

Wheat farmers battling a market in which China holds almost 50 percent of world ending wheat stocks can sympathize with steel and aluminum workers on the economic effects of Chinese policies leading to global oversupply. However, we hope that our legitimate concerns with this action are heard and taken into consideration in this process.

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About U.S. Wheat Associates
USW is the export marketing organization for U.S. wheat farmers. Its mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities around the world are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Associates Announces U.S. and Overseas Staff Promotions

ARLINGTON, Virginia — U.S. Wheat Associates (USW), the industry’s export market development organization, promotes three associates to Vice President. Ben Conner is named Vice President of Policy, Joe Sowers is promoted to Regional Vice President for Philippines and Korea, and Jeff Coey becomes Regional Vice President for China and Taiwan. In addition, Matt Weimar, Regional Vice President for South Asia, adds responsibilities as Senior Advisor across all Asian countries.

“The importance of trade policy issues related to U.S. wheat export opportunities continues to grow and Ben Conner has stepped up quickly to senior level work in his role as Director of Policy,” said USW President Vince Peterson.

Based in Arlington, Va., Conner directs USW efforts to work collaboratively with wheat farmers and customers around the world to create a fair and competitive trade environment for U.S. wheat. He joined USW in October 2014 as Assistant Director of Policy and was named Director of Policy in 2016. Before joining USW, he worked in agriculture and trade policy as a legislative assistant to former U.S. Sen. Mike Johanns. Conner also served as a special assistant at the U.S. Department of Energy following graduation from Miami University with a bachelor’s degree in international studies. His undergraduate experience included academic work in management and Middle East and Islamic Studies at American University in Cairo, Egypt. Conner went on to earn a master’s degree in International Commerce and Policy at George Mason University and a joint MS-MBA in Food and Agribusiness Management from Purdue and Indiana Universities.

“With promotions for Joe Sowers and Jeff Coey, we are recognizing their contributions and growth in their export market development roles,” said USW Vice President for Overseas Operations Mark Fowler. “The changes in responsibility will also help make regional activities even more effective and efficient.”

Sowers is based in Manila, Philippines, and will manage staff and export market development activities originating there and in Seoul, South Korea. He joined USW in 2005 as a market analyst in Washington, D.C., and earned a promotion to senior market analyst before moving to the USW regional office in Mexico City as assistant regional director for Mexico, the Caribbean and Central America. In 2011, Sowers was transferred to Manila as assistant regional director for South Asia. He earned a bachelor’s degree in agronomy and a master’s degree in agricultural economics from Virginia Polytechnic Institute and State University. From 2000 to 2004 Sowers analyzed global grain and oilseed markets with the economic consulting firm, Global Insight, stationed in Philadelphia and Barcelona, Spain.

Coey is based in Hong Kong and will manage staff and export market development activities originating in offices in Hong Kong, Beijing and Taipei. He joined USW in 2015 with more than 25 years of marketing and trade facilitation experience in East Asia, including cotton merchandising in Hong Kong and Beijing, China, and as a lecturer for the master’s degree program at the Hong Kong Baptist University’s School of Communication. Fluent in Mandarin, Coey studied Chinese language and literature at Middlebury College and National Taiwan University. He holds bachelor’s degrees in East Asian Studies and Chinese from the University of Kansas, as well as a master of business administration from the University of Wisconsin, Madison, in international business and marketing.

Weimar started with USW as country director in the Beijing office in 1987 and was assigned as regional director in 1993 in the Hong Kong office where he served for many years before being named Regional Vice President for South Asia and moving to Singapore in 2015. Weimar hails from a wheat and cattle ranch near Arlington, Ore. In addition to farm management, his work experience includes marketing livestock feeds and supplements for Loomix, Inc., and value-added product promotion in Asian markets for the Oregon Department of Agriculture. Weimar received a bachelor’s degree in agricultural and resource economics from Oregon State University in 1982, graduating with high honors after being named both outstanding undergraduate and senior in OSU’s College of Agriculture.

USW works in more than 100 countries with a mission to “develop, maintain and expand international markets to enhance wheat’s profitability for U.S. producers and its value for their customers.” USW activities are funded by producer checkoff dollars managed by 17 state wheat commissions and by USDA Foreign Agricultural Service cost-share programs. For more information, visit www.uswheat.org or contact your state wheat commission.

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Nondiscrimination and Alternate Means of Communications
USW prohibits discrimination in all its programs and activities based on race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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TPP 11 Puts U.S. Wheat Exports to Japan at Risk

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) have expressed concern that the recent announcement that the eleven remaining TPP members have concluded talks on a revised deal without us is a looming disaster for U.S. wheat farm families and related industries. It puts U.S. wheat exports at serious risk in Japan, which has been our largest, most consistent importer for decades.

President Trump recently suggested that we could reconsider the decision not to join TPP if a better deal is possible. The President is a tough negotiator and clearly wants a good deal for the United States. It would be a better deal for wheat farmers now if the Administration would apply its strength to open the door all the way to negotiating a better TPP deal or bilateral solutions to protect the crucial Japanese market and help open other wheat markets like Vietnam.

TPP 11 calls for gradually discounting effective tariffs that Japanese flour millers pay for imported Australian and Canadian milling wheat over 9 years from about $150 to about $85 per metric ton (MT). Imported U.S. wheat effective tariffs would remain at about $150 per MT.

Sources within the Japanese milling industry estimate this $65 per metric ton disadvantage would eventually force them to find alternatives to U.S. wheat and cut average total imports of Western White, dark northern spring (DNS) and hard red winter (HRW) wheat from about 3.1 million metric tons (MMT) per year to as little as 1.35 MMT per year. U.S. wheat farmers and the U.S. grain trade will essentially be writing a $500 million check every year to Australian and Canadian farmers, even at today’s relatively low wheat prices, if nothing changes before the effective tariff schedule is fully implemented.

The agreement that the eleven remaining TPP members announced was designed to provide an opening for the United States to re-engage in the agreement, so we do not have to sit on the sidelines.

American agriculture now counts on the Administration’s strong negotiating skills; and American wheat farmers, facing a calamity they would be hard pressed to overcome, now depend on it.

The TPP 11 countries include Canada and Australia, which are major competitors to the United States in the Japanese wheat market. Other TPP countries with rapidly growing demand for imported wheat include Mexico, Vietnam, Malaysia, Chile and Peru. Singapore, Brunei and New Zealand round out the remaining TPP partner countries

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About the National Association of Wheat Growers
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Associates Directors Elect 2018/19 Officers; Oregon Farmer New to Officer Team

WASHINGTON, DC — The U.S. Wheat Associates (USW) board of directors elected new officers for the 2018/19 (July to June) fiscal year at their meeting Feb. 10, 2018, in Washington, D.C. The board elected Darren Padget of Grass Valley, Ore., as Secretary-Treasurer; current Secretary-Treasurer Doug Goyings of Paulding, Ohio, as Vice Chairman; and current Vice Chairman Chris Kolstad of Ledger, Mont., as Chairman. These farmers will begin their new leadership roles at the USW board meeting in June 2018 in Seattle, Wash., when current Chairman Mike Miller of Ritzville, Wash., will become Past Chairman. USW is the export market development organization for the U.S. wheat industry.

Darren Padget is a fourth generation farmer in Oregon’s Sherman County, with a dryland wheat and summer fallow rotation currently producing registered and certified seed on 3,400 acres annually. Previously, Padget held positions on the Oregon Wheat Growers League board of directors and executive committee for seven years, serving as president in 2010. He chaired the Research and Technology Committee for the National Association of Wheat Growers (NAWG) and also served on the Mid-Columbia Producers board of directors, for which he was an officer for 10 years.

“Oregon exports 80 to 90 percent of its wheat, so I’ve always been interested in what is going on when our wheat leaves the country. I first served on a local cooperative board of directors for 13 years and learned about the importance of wheat quality, the mechanics of how the grain moves and what the customers want,” said Padget. “My farm is two hours from Portland, so I tend to get some overseas visitors, and that is what started my interest in serving as an Oregon wheat commissioner.”

A few years ago, Padget represented wheat farmers on USW’s annual Crop Quality Seminar tour in Asia and it was that experience that motivated him to become more involved with USW and eventually want to serve on the officer team.

“Seven countries in 20 days gave me a pretty good overview of U.S. wheat overseas. I met the millers, and bakers, and while I’ve always been involved on the cooperative and political side [of the wheat industry], this really came full circle for me; and to see what the [USW] staff has done on behalf of the U.S. wheat farmer to sell a bushel of wheat was very impressive,” said Padget. “That was my ‘a-ha moment.’ When I got back I thought, wow, this is a big deal and something I’d like to be a part of and contribute to.”

Padget said the support from his family – including his parents who still live on the farm – and help from his son, who came back to the farm full-time, helped give him the time to pursue this opportunity.

“The more I learn about it [USW], the more impressed I am, so I wanted to dedicate my time to serve on this board,” said Padget.

Doug Goyings’ family has been farming in northwestern Ohio since 1884. Together with his wife Diane, son Jeremy, daughter-in-law Jessica and his twin grandsons, Goyings grows soft red winter (SRW) and has hosted numerous trade teams on their farm. With more than 35 years of experience representing wheat and Ohio agriculture, Goyings has been a member of the USW board while serving as a director for the Ohio Small Grains Checkoff Board since 2009 and is a past chairman of the USW Long-Range Planning Committee. He is also a past-president of his local Farm Bureau and previously sat on the board of directors for the Ohio Veal Growers Inc., Creston Veal, Inc., and Paulding Landmark, Inc.

Chris Kolstad’s family farm is located in Montana’s “Golden Triangle” region. He and his wife Vicki have four children, including their son Cary who is a partner in their operation and the fifth generation of their family to farm. Kolstad grows hard red winter (HRW) wheat, dark northern spring wheat and durum, barley and dry peas. As a commissioner of the Montana Wheat and Barley Committee, Kolstad has represented his state on the USW board since 2012. He is also an active member of the Montana Grain Growers Association and Montana Farm Bureau. His community leadership includes serving on his local school board, as treasurer for his family’s church and has been a regular blood donor since 1972.

Mike Miller is a fourth generation farmer who operates a dryland wheat farm and grows multiple crops on a separate, irrigated farm in east central Washington. He has served on many local, state and national boards, including the Washington Grain Commission and r as a USW director representing Washington. Miller is also very active in supporting wheat research and development. He and his wife, Marci, have three children.

More photos from the meeting are available on USW’s Facebook.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. USW maintains 16 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat. For more information, visit our website at www.uswheat.org.

Caption: (L to R) Darren Padget, Secretary-Treasurer Elect and a farmer from Grass Valley, OR; Jason Scott, Past Chairman and a farmer from Trappe, MD; Mike Miller, Chairman and farmer from Ritzville, WA; Chris Kolstad, Vice Chairman and a farmer from Ledger, MT; Doug Goyings, Secretary-Treasurer and a farmer from Paulding, OH; and USW President Vince Peterson.

Caption: Darren Padget, a farmer from Grass Valley, OR, who represents his state on the USW Board of Directors, was elected to the 2018/19 USW Officer Team. He will begin his new leadership role as Secretary-Treasurer at the USW Summer Board Meeting in Seattle, WA, June 2018.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Study Shows U.S. Lags Behind Competitive Investment in Developing Ag Exports

ARLINGTON, Va. — The latest analysis of foreign export promotion program investment shows that several competing countries and the European Union spent close to $1 billion in public funds on agricultural export promotion in 2016, outspending the United States 4 to 1. That is an increase of 70 percent in real competitive public spending since 2011. U.S. public funding for the two largest agricultural export promotion programs is about $235 million per year and its real value has declined by 12 percent since 20111. The conclusions echo results of three similar competitive studies since 2013.

“As a cooperating organization in USDA’s Foreign Agricultural Service export market development programs, we have seen a similar decline in annual funding,” said U.S. Wheat Associates President Vince Peterson. “This has forced us to cut back on activities in certain markets even though our state wheat commission members have invested more to try to minimize the loss.”

This study, “An Analysis of EU and Other Selected Foreign Export Promotion Programs,” was commissioned by Wine Institute and other agricultural associations and conducted by Informa Economics, IEG, with Market Access Program funding. With a focus on EU export development investment, Informa Economics also reviewed agricultural export promotion investment by major competitors from Australia, Chile, China, New Zealand and others.

“The total public investment alone from just the EU and four European countries are expected to exceed $550 million in 2019, which is more than twice what the U.S. government authorizes for agricultural export development under the farm bill,” said Mark Powers, president of the Northwest Horticultural Council and chairman of the Coalition to Promote U.S. Agricultural Exports.

The study showed the EU is investing about $300 million per year on wine export promotion alone. Canada and Italy doubled their total annual spending, and Brazil and China tripled their total annual export promotion budgets according to the study.

“Other governments are investing more in global food and agricultural markets while inflation, sequestration and administrative costs are chipping away at U.S. funding,” said Tom Sleight, CEO of U.S. Grains Council, which is a member of the Agribusiness Coalition for Foreign Market Development. “That also cuts into the ability of American family farmers, livestock and dairy producers, fishermen and small agri-food businesses to compete in growing export markets.”

Sleight said increasing competition is one of the reasons why organizations that participate in cost-share export programs with USDA’s Foreign Agricultural Service, as well as a number of members of Congress, are calling for more funding for U.S. programs.

He said by 2016, private funding from industry members provided 70 percent of the total annual investment in the Market Access Program (MAP) and the Foreign Market Development (FMD) program, both administered by USDA’s Foreign Agricultural Service. The remaining 30 percent from annual government funding has been stagnant at $200 million for MAP since 2006 and at $34.5 million for FMD since 2002.

Coalition members are asking that MAP and FMD funding be doubled by the last year of the new farm bill. That is also the goal called for in S.1839 and HR 2321, the “Cultivating Revitalization by Expanding American Agricultural Trade and Exports (CREAATE) Act,” introduced in 2017.

“All the members of our coalition are grateful for federal export promotion support over the years,” Powers said. “The investment has been very successful in boosting U.S. agricultural export volume and revenue at a rate that far exceeds its public expense. Because these programs also protect and create American jobs, and increase farm income2, there is no doubt they are highly successful public-private partnerships worth the increased investment.”

The executive summary of the Informa Economics competitive study, and more in-depth information about MAP and FMD programs and their outcomes, are posted online at www.AgExportsCount.org.

1An Analysis of EU and Other Selected Foreign Export Promotion Programs, Informa Economics, IEG, November 2017
2Economic Impact of USDA Export Market Development Programs, Informa Economics, IEG, July 2016

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Wheat Organizations from the United States, Canada and Mexico Call for Successful NAFTA Agreement

ARLINGTON, Virginia — Today, organizations along the North American wheat value chain sent a letter to President Trump, President Peña Nieto, Prime Minister Trudeau, as well as to lead negotiators from each country, Ambassador Lighthizer, Minister Freeland, and Minister Guajardo, stressing the importance of the North American Free Trade Agreement (NAFTA) to the wheat industry. Ranging from seed to bread and baked goods, key groups from the wheat value chain signed onto the letter.

“As we enter the sixth round of negotiations, it’s important to remember that NAFTA created the world’s largest free trade area between the United States, Mexico, and Canada,” said Gordon Stoner, President of the National Association of Wheat Growers (NAWG) and a wheat farmer from Outlook, Mont. “NAFTA has benefited not only wheat growers but all our partners along the entire value chain from farmers to consumers and everyone in between. The fact that wheat producers and end users from all three countries would speak with one voice about the importance of NAFTA should speak volumes to our leaders.”

“The relationship between U.S. wheat farmers and Mexican flour millers and wheat food companies took off with NAFTA,” said Mike Miller, Chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash. “It is a highly successful partnership, with tariff-free access, that helped make Mexico our largest customer the past two years and supports revenue for wheat farmers from dozens of states.”

In the letter, the groups emphasized that an updated trade deal is critical to ensure that all of us can work together to provide the highest quality products at the greatest value for both the supply chain and consumers. Further, the letter states that an integrated supply chain between the three countries is only effective with NAFTA in place.

“The industry understands the need to modernize the 23-year-old agreement, but it must be done in a way that benefits the food and agriculture sectors in all three countries,” continued Stoner. “It’s critical that all parties remember during the negotiations that when one link breaks, the entire chain is weakened.”

The following organizations signed the letter: American Bakers Association; Cámara Nacional de la Industria Molinera de Trigo (National Chamber of Industrial Wheat Millers, Mexico); Cereals Canada; NAWG; North American Millers’ Association; USW; Western Canadian Wheat Growers. The letter is attached below.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Industry Celebrates Japan Flour Millers Association Anniversary

ARLINGTON, Virginia — Several representatives from the U.S. wheat industry joined members of the Japan Flour Millers Association to help celebrate the association’s 70th anniversary in Tokyo on Jan. 23, 2018. Senior managers from U.S. Wheat Associates (USW), as well as state wheat commission representatives and farmers from Washington, Oregon, Idaho and Montana participated in events commemorating the anniversary.

Japan has purchased significantly more U.S. wheat than any other country since 1949, when the Oregon Wheat Growers League first organized a trade delegation to investigate opportunities for expanding U.S. wheat sales there.

Today, the Japanese domestic milling and wheat foods industries are highly advanced and demand consistent, high quality wheat and flour. USW Chairman Mike Miller, of Ritzville, Wash., told members of the association that U.S. farmers are very proud to supply much of that wheat every year.

“It is good to know that our wheat is an essential ingredient in the wonderful wheat foods the Japanese people enjoy — and an essential ingredient in the success of these flour millers,” Miller said. “I reassured them that to honor their achievements, farmers will continue to invest in trade service and technical support in Japan, and to improve the quality and wholesomeness of our wheat to meet their needs in the future.”

“It was a great pleasure to congratulate the association’s Chairman, Mr. Masayuki Kondo, President of the Japan Flour Millers Association, and the members of the association in person on their important anniversary,” said USW President Vince Peterson. “We were also able to thank our respected friend and colleague, Mr. Masaaki Kadota, who is retiring after many years serving as the association’s Executive Director.”

With support from state wheat commissions and USDA’s Foreign Agricultural Service, USW focuses on providing up-to-date market information and collaborating with Japanese industry groups to demonstrate the quality and value of U.S. wheat. The mills provide purchase specifications to Japan’s Ministry of Agriculture, Fisheries, and Forestry (MAFF) based on the strict characteristics their wheat food customers demand. Japanese grain trade organizations act as intermediaries between MAFF and overseas sellers. Then MAFF carries out all milling wheat purchases and sells the wheat to Japanese flour mills.

“It is difficult to express how much we value our partnership with Japan’s flour millers and the rest of the wheat foods industries,” Peterson said. “We have developed a deep level of trust by maintaining an open dialogue with them. That has been so important to our mutually beneficial, long-term trading relationship and we confirmed our commitment to continue our partnership in that spirit.”

U.S. farmers continue to earn the largest market share in this well-established and quality conscious wheat market. MAFF issues consistent weekly tenders for U.S. hard red spring (HRS), hard red winter (HRW) and Western White, a blend of soft white (SW) and up to 20 percent club wheat. As a result, Japan has purchased an average of 3.1 million metric tons (about 114 million bushels) of wheat annually the past five years.

Also honoring the association at events in Japan were: wheat farmers Bill Flory of Culdesac, Idaho., Walter Powell of Condon, Ore., and Darren Padget of Grass Valley, Ore.; Damon Filan, manager of Tri-Cities Grain, LLC in Pasco, Wash.; Glen Squires, chief executive officer of the Washington Grain Commission; Michelle Hennings, executive director of the Washington Association of Wheat Growers; Collin Watters, executive vice president of the Montana Wheat and Barley Committee; Mark Fowler, USW vice president of overseas operations; Mr. Wataru “Charlie” Utsunomiya, USW/Japan country director; and Ms. Sadako Ishida, USW/Japan program assistant.

U.S. Wheat Associates (USW) is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities are funded by producer checkoff dollars managed by 17 state wheat commissions and USDA Forei­gn Agricultural Service cost-share programs. For more information, visit www.uswheat.org or contact your state wheat commission.

Photo from the JFMA Anniversary event

 

PHOTO CAPTION (High resolution image posted online):
Mr. Masayuki Kondo (center), Chairman of the Japan Flour Millers Association and President of Nippon Flour Mills, accepts a gift recognizing the association’s 70th anniversary from Mike Miller (third from right), Chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash., and Vince Peterson (second from right), President of USW. Behind Mr. Kondo is Mr. Masaaki Kadota, who is retiring after many years as the association’s Executive Director. Mr. Wataru Utsunomiya (far right), USW Country Director for Japan, served as interpreter at the ceremony Jan. 23, 2018, at the association’s headquarters in Tokyo, Japan.

TOP PHOTO CAPTION (High resolution image posted online):
U.S. Wheat Associates (USW) and U.S. wheat industry representatives joined Mr. Chairman, Mr. Masayuki Kondo (holding a ceremonial gift plate), Nippon Flour Mills President and Chairman of the Japan Flour Millers Association, to celebrate the association’s 70th anniversary Jan. 23, 2018, in Tokyo, Japan.

Members of the U.S. delegation included (front row, left to right): Glen Squires (third from left), Washington Grain Commission CEO; Vince Peterson (fourth from left), USW President; Mike Miller (sixth from left), USW Chairman and a wheat farmer from Ritzville, Wash. (Back row, left to right): Walter Powell (fifth from left), a wheat farmer from Condon, Ore.; Collin Watters, Montana Wheat and Barley Committee Executive Vice President; Bill Flory, a wheat farmer from Culdesac, Idaho; Darren Padget, a wheat farmer from Grass Valley, Ore.; Michelle Hennings, Washington Association of Wheat Growers Executive Director; and Damon Filan, manager of Tri-Cities Grain, LLC in Pasco, Wash. Not pictured, Mark Fowler, USW Vice President of Overseas Operations, and Ms. Sadako Ishida, USW/Japan Program Director.

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Nondiscrimination and Alternate Means of Communications
USW prohibits discrimination in all its programs and activities based on race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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