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Taiwan Milling Executives See Opportunity in Visit to the Pacific Northwest

From research labs to the field to the grain elevator, each stage of the supply chain contributes to the overall quality and reliability of U.S. wheat. But in the Pacific Northwest, the major link between quality U.S. wheat and the world market is the Columbia Snake River System. When trade teams from overseas visit the United States to learn more about the U.S. wheat market, learning how the river system supports exports is a key part of their experience.

USW welcomed a trade team of four milling executives from Taiwan that spent a lot of time along the river system from June 11 to 18. USW collaborated with the Oregon Wheat Commission (OWC), Washington Grain Commission (WGC) and the Idaho Wheat Commission (IWC) to organize and host this trade team. Funding for this trade team also came from the USDA Foreign Agricultural Service (FAS).

“On average, Taiwan is the sixth largest market for U.S. wheat. The millers on this team were interested in exploring additional options for purchasing U.S. wheat,” said Boyuan Chen, USW Country Director in the Taipei Office. “Our schedule focused on the export system and sourcing practices, as well as programs for wheat breeding and quality assurance.”

The team began its trip in Portland, OR, meeting with the USW West Coast Office and OWC for briefings on supply and demand, and crop conditions for hard red winter (HRW), soft white (SW) and hard white (HW) wheat. They continued their overview of the supply chain with tours of multiple port elevators and meetings with the USDA Federal Grain Inspection Service (FGIS) and the Wheat Marketing Center (WMC).

Next, the team traveled to Washington and Idaho where the two state wheat commissions worked together to focus on the team’s interests. This included a visit to the USDA-ARS Western Wheat Quality Laboratory, and participation in a county field day where the team saw wheat breeding and quality improvement programs in the new wheat varieties across the test plots. The team also learned more about the value of the river system and how the 465-mile river highway is an essential lifeline that provides farmers from as far inland as the Midwest access to the global market.

“Trade teams that visit this area of the Pacific Northwest have the unique opportunity to see two land grant universities, many wheat related facilities and the river system all in close proximity,” said Blaine Jacobsen, IWC Executive Director. “This is rich farmland where farmers are utilizing the latest technology to plant and care for the wheat that will move down river and on to family tables across Taiwan and all of Asia.”

Always a highlight for visiting customers, the team also had the opportunity to visit with Washington and Idaho wheat growers.

“It’s a wonderful opportunity for wheat growers to rub shoulders with their customers, and it’s a great opportunity for buyers to learn more about the crop and the supply chain in the state of Idaho,” said Bill Flory, Idaho wheat farmer and commissioner.

“Being able to ask questions and discuss wheat quality at each stage of the supply chain with the people that grow and move the crops increased the confidence in U.S. wheat for these milling executives,” said Chen. “That is a great benefit, because they are considering purchasing a larger variety of U.S. wheat, including club wheat and hard white wheat.”

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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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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U.S. Wheat Associates Supports Doud for USTR Chief Agricultural Negotiator

Arlington, Virginia — U.S. Wheat Associates (USW) strongly supports President Trump’s nomination of Gregg Doud to become Chief Agricultural Negotiator, with the rank of Ambassador, in the Office of the U.S. Trade Representative (USTR).

“We are thrilled with Gregg’s appointment,” said USW President Alan Tracy. “He has deep ties to U.S. wheat, served as our market analyst and has remained a friend and ally ever since, especially when working for Senator Roberts. He has the background and the energy to excel as USTR’s agricultural trade negotiator, a position of great importance to our industry.”

Currently, the important dispute cases against China’s trade distorting domestic wheat support and its tariff rate quota obligations on imported wheat need to move forward, and the renegotiation of the North American Free Trade Agreement is looming. USW joins the National Association of Wheat Growers in urging an expedited review and confirmation so Doud can get to work at USTR as soon as possible.

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 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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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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Flag and wheat representing the Cuban wheat market
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U.S. Wheat Organizations See Hope in Growing Public Support for Cuban Trade

WASHINGTON, DC – Even as President Trump announces changes to current travel and trade rules with Cuba, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are hopeful that the increasing public and congressional support for more open trade will lead to an eventual end to the U.S. embargo.

“This is a political process and that means there are going to be steps forward and back,” said USW President Alan Tracy. “Our organizations support measures that move toward ending the embargo. Cuba is a significant wheat importing nation and our farmers can supply high-quality wheat at a lower cost than Cuba pays now to import European and Canadian wheat. Wheat is an important food grain that should be above politics, but the embargo will likely have to end before wheat farmers can help meet the increasing demand for agricultural products to help feed the Cuban people.”

“Wheat growers are facing significant economic hurdles and need more markets,” said David Schemm, a wheat farmer from Sharon Springs, KS, and NAWG President. “NAWG supports the effort to end the embargo on Cuba because it is what is best for our farmers. Farmers know that agricultural trade is a proven way to foster stronger and more productive ties with folks who live outside the United States.”

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 18 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is a federation of 20 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability.

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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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Mid-Size Millers Team from Japan Learn about U.S. Wheat Supply Chain

In the world wheat market, milling companies of all sizes can have an impact on wheat exports and purchasing decisions. This is certainly the case in Japan where mid-sized milling companies representing Japan’s National Cooperative of Millers provide input on the functional characteristics those millers need to meet customer demand to buyers at Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF).

USW welcomed a trade team of four milling executives from mid-sized companies representing the co-op to the United States May 28 to June 4. USW collaborated with the Oregon Wheat Commission (OWC), Washington Grain Commission (WGC) and the Montana Wheat & Barley Committee (MWBC) to organize and host this trade team. Funding for this trade team also came from the USDA Foreign Agricultural Service (FAS).

“Japan will be the second largest buyer of U.S. soft white (SW) and hard red spring (HRS) wheat this year, which means no matter the size of the mill, it is important that these millers are familiar with the value of U.S. wheat and the U.S. wheat marketing system,” said Steve Wirsching, USW Vice President and Director of the West Coast Office. “Japanese millers are always quality conscious and ask good questions about improving overall wheat quality and end-use functionality.”

The team began its trip in Portland, OR, meeting with the OWC, USDA Federal Grain Inspection Service (FGIS) and the Wheat Marketing Center (WMC), to learn more about the U.S. wheat market.

Next the team traveled to Washington where the team focused on research and breeding, transportation and SW wheat crop conditions.

During a tour at a barge loading facility, the team had an impromptu opportunity to visit the nearby dam and watch a barge and tug boat go through the lock and down through to the river.

“U.S. wheat growers rely on the river system to move their wheat,” said Mary Palmer Sullivan, WGC Vice President. “The opportunity to see the system in action demonstrated its importance and why periodic closures have to happen so improvements can be made.

Palmer Sullivan shared that during a visit to the USDA Agricultural Research Service (ARS) Western Wheat Quality Lab, the team also spent time in the greenhouse, observing the wheat breeding process.

“The same traceability that we recognize as important to U.S. millennials, is maybe more important to Japanese consumers,” said Scott Yates, WGC Director of Communications and Producer Relations. “They want to know that their food was grown to the highest standard.”

While in Montana, the team shifted their focus to HRS wheat production and continued to meet with members of the supply chain. At the center of their schedule, was a farm tour with Chris Kolstad, Montana wheat farmer, who showed them his spring and winter wheat production, equipment, grain bins, and explained how the technology he uses allows his farm to be more efficient.

“The team was curious about the new varieties we seeded and I shared with them that all of our wheat varieties are tested and proven before they are commercialized for farmers to use,” said Kolstad, who current servers on the USW Board of Directors as Secretary-Treasurer. “Eighty percent of Montana grains are sent to foreign markets, so it is important to demonstrate the work we put in to growing quality wheat.”

Stephen Becker, MWBC Outreach Coordinator added, “We are firm believers in the strength of personal relationships with our trade partners,” he said. “These customers learn firsthand the knowledge our producers carry and the pride they have in producing a high quality crop, which is important to keep in the forefront of the minds of those who make purchasing decisions.”

Ultimately the importance of relationships between U.S. wheat farmer and overseas customers is mutual.

“I think the opportunity to meet with U.S. wheat farmers and breeders is important,” said Shinjo Oda, Odazo Flour Milling Company President. “From wheat breeding to the producer to the country elevator and to the shuttle train or barge, we have a better understanding of the overall flow of U.S. wheat industry.”

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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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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Wheat Industry Stresses Importance of Food Aid at Farm Bill Hearing

Washington, D.C. (June 07, 2017) – Today, the House Committee on Agriculture held a Full Committee hearing on “The Next Farm Bill: The Future of International Food Aid and Agricultural Development.” On behalf of the wheat industry, Mr. Ron Suppes, a wheat grower from Dighton, KS, testified on food aid and a recent trip to Tanzania where he saw programs that utilized wheat.

“In Tanzania, I saw first-hand how wheat farmers can play a significant role in international food aid programs,” Suppes said. “These programs involve a significant amount of wheat, a fact not lost on farmers with full grain bins and more wheat piled on the ground from last year’s historically high harvest. It is a year when the U.S. needs to be a world leader in helping provide for those in need with these ample supplies.

“Food aid can also generate goodwill with other countries. By encouraging agricultural development in Tanzania, we’re ultimately spurring economic growth, which means Tanzania is more likely to be a stronger trading partner in the future. And the tangible presence of U.S. wheat in that equation is a symbol that cash can’t match.

“U.S. commodities play a key role in helping regions unable to produce wheat and other commodities on their own due to drought, conflict or other circumstances. We have enough surplus that no one should be going hungry.

“I commend the House Committee on Agriculture for recognizing and highlighting the valuable role that the agricultural industry plays in international food aid.”

Ron Suppes.

National Association of Wheat Growers (NAWG) President David Schemm, a wheat grower from Sharon Springs, KS, made the following statement:

“The U.S. is producing enough wheat to meet global demand and still have a surplus. In 2017, USDA projects that global production of wheat will reach an all-time high of 751.3 million metric tons with stockpiles at a record high of 258.3 million tons.

“Wheat can play a significant role in the fight to end hunger. Not only for humanitarian reasons but for global security as well. Even if located on the other side of world, food-insecure nations are prone to enter civil unrest which can impact us right here at home.

“As a wheat farmer from Kansas, I am proud to play a role in helping to feed those who cannot provide for themselves.

For more information about wheat industry policy positions on food aid, visit https://www.wheatworld.org/policy-action/issues/food-aid/ or https://bit.ly/2fD8X06.

Additional panelists at the hearing included Ms. Margaret Schuler, Senior Vice President of the International Programs Group at World Vision; Ms. Navyn Salem, Founder and Chief Executive Officer of Edesia Nutrition; Mr. Brian W. Schoeneman, Political and Legislative Director of the Seafarers International Union (AFL-CIO), on behalf of USA Maritime; and Dr. Thomas S. Jayne, University Foundation Professor at Michigan State University, on behalf of the Farm Journal Foundation.

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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.

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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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A Warning to Commerce: National Security Arguments Cut Both Ways

ARLINGTON, Virginia — The Department of Commerce (DOC) has released public comments, including comments submitted by U.S. Wheat Associates (USW), related to its investigation into the national security implications of steel imports. USW believes that if the United States goes down a road to restricting steel imports, many countries may use the same national security pretense to restrict imports from U.S. wheat farmers. After all, food security has always been tied to national security. To view USW’s full submission, click here.

Under Section 232 in the Trade Expansion Act of 1962, the Commerce Department may investigate the effect of imports on national security. Commerce announced its investigation of steel imports on April 20, 2017. It is the first such investigation since 2001. Findings could lead to a conclusion that protective duties on imported steel should be applied for national security reasons.

“Pursuing a strategy of import protection under the guise of national security would set a dangerous precedent,” said USW President Alan Tracy. “If the United States undermines WTO national security exemptions, it would be handing a gift-wrapped roadmap of protectionism to food self-sufficiency advocates all over the world.”

The World Trade Organization (WTO) allows countries to impose trade restrictions for very few reasons, including national security. This exception is rarely used outside of weapons, nuclear materials and the like because most countries understand that doing so would open a Pandora’s Box of competing national security claims. If the United States went first with a commonly traded product like steel, many countries would be eager to include food security in the exception.

“I’m all for challenging unfair subsidies, but farmers like me know you need to use the right tool to fix a problem,” said Jason Scott, USW Chairman and a wheat farmer from Easton, Md. “Citing national security to block imports like this would be like lighting a fire to kill a weed. It might do the job but you could destroy the whole field.”

The Department of Commerce has only authorized duties twice after Section 232 investigations, and not once since the WTO was created in 1995. The WTO agreements include an exemption under GATT Article XXI for trade restrictions related to “essential security interests,” which can be defined broadly by the WTO member country.

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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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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Maghreb Region Trade Team Focuses on Quality and Integrity of U.S. Wheat Marketing System

Trade servicing and technical assistance are key elements of USW’s mission to help customers understand the value of U.S. wheat. In the Maghreb region of North Africa, USW works directly with end users and importers to help strengthen commercial links with U.S. export companies and help motivate North African buyers to move toward more value-driven purchasing.

To give those buyers a deeper look at U.S. wheat, USW welcomed a trade team of four from Algeria and Morocco to the United States, May 14 to 20, led by Mina El Hachimi, North Africa Administration and Programs Manager, USW Casablanca Office. USW collaborated with the Montana Wheat & Barley Committee (MWBC) and the North Dakota Wheat Commission (NDWC) to organize and host this trade team. Funding for this trade team also came from the USDA Foreign Agricultural Service (FAS).

“These activities show customers how U.S. wheat can meet both quality and quantity requirements in the most profitable manner, as well as demonstrate the benefits of blending U.S. wheat classes with local and other imported wheat for specific end products while fostering more demanding quality specifications,” said El Hachimi. “Our focus was on the unique quality and integrity of the U.S. wheat marketing system, including how wheat is graded and exported. The team was particularly interested in learning more about U.S. durum characteristics and specific uses of Dark Northern Spring (DNS) wheat as an improver wheat.”

The team began its trip in Montana with a schedule that included tours focusing on research and breeding, milling, transportation and export logistics.

“Although this is not a new market for Montana, this was a fun, unique team for us to host,” said Collin Watters, MWBC Executive Vice President. “It was eye-opening for us to learn about the specifications they are interested in for durum, and for spring and winter wheat.”

On a tour of Montana Milling in Great Falls, MT, Watters said the team was especially interested in the mill’s specialty products and in the design of the mill itself. During another stop at Northern Seed, LLC, in Fort Benton, MT, which develops new durum varieties, the team saw progress toward the color specifications that their market demands.

The team was impressed by the level of research and connectivity throughout the entire U.S. wheat industry.

“I will share information with my own colleagues about the importance U.S. wheat farmers place on research and developing their industry,” said Adil El Eulj, Administrator, IZDA.

While in North Dakota, the team met with grain trade representatives and transportation experts to learn more about sourcing options and how to tender for combination shipments with spring wheat and other commodities. They also received a crop update and market outlook to help guide their buying decisions.

“This team was especially important to us because it represents one of our largest durum markets, behind only Italy,” said Erica Olsen, NDWC Marketing Specialist. “These buyers have unique quality needs, specifically regarding high semolina color. But we also have strong competition in these markets based on logistics and cost.”

U.S. durum sales to Algeria as of May 18 in marketing year 2016/17 (June to May) are 127,913 metric tons or 4.7 million bushels versus 89,811 metric tons or 3.3 million bushels at the same time last year, and Olson reported that the customers had positive feedback on the quality consistency. She also shared that the team met with Dr. Frank Manthey, North Dakota State University (NDSU), who presented promising quality data on new durum varieties that show improvements in semolina color, which was good news for the Moroccan team members.

“I think the dialogue that took place during this visit was extremely helpful for our promotion efforts in that region and some of the most valuable we’ve had in recent years,” said Olson.

Looking back on the experience, all the team members commented on the collaboration between farmers, state commissions, universities and suppliers as “passionate and exemplary.”

“We learned that wheat producer success spanning many generations was not by chance,” said Farid Taieb Ezzraimi, Director General, Group SIM, Algeria. “It is due to the close collaboration with the universities and advanced research in the agricultural sector.”

Reda Sellami, Director General, Moony Group, added, “The cultivation of cereals in the United States is a perfect model of development with the best control and management of the production process, storage and wheat marketing.”

“The interactions these customers had while traveling on a U.S. trade team will have a great impact on buying decisions,” said El Hachimi. “The experience helps build confidence between the U.S. wheat industry and the North African importer.”

The Maghreb region of North Africa is comprised of the Atlas Mountains and the coastal plain of Morocco, Algeria, Tunisia, and Libya. Morocco and Algeria are a part of USW’s Middle Eastern, East and North Africa (MEENA) region, directed by Regional Vice President Ian Flagg from Rotterdam, Netherlands, and supported by offices in Casablanca, Morocco, and Cairo, Egypt.

Team at the Northern Crops Institute (NCI)

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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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USW Dismayed by Budget Proposal to Eliminate Trade Development Programs

Arlington, Virginia — U.S. Wheat Associates is very disappointed that the Administration’s proposed FY 2018 budget eliminates funding for the USDA’s Foreign Agricultural Service Market Access Program (MAP) and Foreign Market Development (FMD) program and severely cuts funding for food aid programs. These cuts and other proposed cuts to the farm safety net would be devastating to wheat farmers who are already facing severely challenging economic conditions.

“These are the wrong proposals at the wrong time for the wheat farmers we represent,” said USW President Alan Tracy. “Agriculture is truly a global industry and export demand determines the prices U.S. wheat farmers receive. Without funding from MAP and FMD, we would not be able to continue the training, technical assistance and service that is needed to promote this incredibly complex food crop. Our competitors would swoop in to take those markets and the potential effect on wheat prices is obvious.”

In addition, a major econometric study led by Texas A&M agricultural economists in 2016 on the effectiveness of MAP and FMD showed that eliminating these programs would result in an annual average loss of $14.7 billion in export value, which would hurt almost every farmer in the country.

“It is very short-sighted to cut out programs that are vital to the health of the entire U.S. agricultural economy,” said Jason Scott, USW Chairman and a wheat farmer from Easton, Md. “Farmers, livestock producers, small businesses and the U.S. government have seen an amazing return on the investment in these highly successful programs. Our farmer leaders agree with the National Association of Wheat Growers President David Schemm who believes MAP and FMD merit an increase in federal funding, not elimination as proposed in this budget.”

In addition, time-honored U.S. food aid programs have been engines of peace, food security and local capacity building in countless countries around the world. Wheat makes up 40 percent of of all in-kind food aid and because almost all food aid recipients are wheat-import dependent, particularly in Africa, wheat donations do not distort local markets. It is not a good time to diminish our ability to promote better lives around the world.”

For more information about MAP, FMD and the essential role they play in building a more productive agricultural economy, please visit www.AgExportsCount.org.

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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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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Wheat Industry Looks for New NAFTA Opportunities, But Priority Remains Do No Harm

WASHINGTON, DC – U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) urge caution today as the Trump Administration officially submitted to Congress its notice of intent to renegotiate the North American Free Trade Agreement (NAFTA). The U.S. wheat industry welcomes the opportunity for improving the framework for cross border wheat trade between the United States, Canada, and Mexico, but would strongly oppose changes that might limit the current NAFTA’s benefits for wheat farmers and their customers, particularly in the Mexican food processing industries.

Since NAFTA entered into force on Jan. 1, 1994, trade has boomed between the United States, Canada, and Mexico. Specifically, NAFTA delivered a winning combination of free trade on a level playing field and a growing Mexican middle class with the income to demand better products, including food using imported wheat. Following years of market development work and duty free access, Mexico dramatically increased its U.S. wheat imports after NAFTA and imports in the current marketing year are up 40 percent, making Mexico our largest buyer.

“I cannot emphasize enough how important our Mexican customers are to U.S. wheat farmers,” said Jason Scott, a wheat farmer from Easton, Md., and USW Chairman. “There is nothing wrong with modernizing a 23-year-old agreement, but that must be done in a way that benefits the food and agriculture sectors in both countries.”

Negotiating a new NAFTA certainly can make improvements. A good place to start are the sanitary and phytosanitary (SPS) rules that the three countries already agreed to as part of the Trans-Pacific Partnership (TPP) negotiations.

“If the administration intends on renegotiating NAFTA, it must guarantee growers that new terms won’t reverse the significant benefits for U.S. wheat farmers, like duty free access,” said David Schemm, a wheat farmer from Sharon Springs, Kan., and NAWG President. “Despite the risks, there’s an opportunity here to get better trade rules in place that will set the gold standard for trade agreements going forward, without hurting wheat farmers and their importing customers.”

About USW
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 18 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 a federation of more than 20 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability. For more information, visit our website at www.wheatworld.org.

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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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Japanese Executive Millers Focus on Trade Issues and Quality on Annual U.S. Wheat Tour

When a new Administration takes office and appoints new leadership, new opportunities and challenges for U.S. agriculture and trade are inevitable. It becomes increasingly important for the U.S. wheat industry to continue to renew the relationships built over the years with overseas customers and clearly communicate how changes might affect them.

Every year, as a part of USW’s market development activities, several overseas teams of U.S. wheat customers are organized and invited to travel to the United States to learn firsthand about the benefits of a business relationship with the U.S. wheat industry. USW welcomed its first 2017 trade team, a group of five Japanese executive flour millers, to the United States April 18 to May 6. USW collaborated with the Oregon Wheat Commission (OWC), Washington Grain Commission (WGC), Idaho Wheat Commission (IWC) and North Dakota Wheat Commission (NDWC) to organize and host this trade team.

“The United States is the biggest wheat supplier for Japan, so it is important to maintain dialogue between representatives of Japan’s biggest wheat users and our U.S. wheat contacts,” said Mr. Masaaki Kadota, Executive Director of the Japan Flour Millers Association (JFMA). “Our focus for this trip was to exchange views on future trade issues and maintaining a stable supply of wheat to meet our needs.”

USW President Alan Tracy noted that JFMA and the U.S. wheat industry have maintained a mutually respectful relationship for many years.

“We want to thank Mr. Kadota for his friendship and many years of service,” Tracy said.

The team began its trip in Portland, OR, meeting with U.S. wheat producers from Oregon and Idaho to discuss current crop conditions. Darren Padget, OWC Chairman, outlined the pressing decisions farmers have to make that affect the wheat crop and Bill Flory, Wheat Marketing Center (WMC) Chairman, hosted the group for a tour of the WMC laboratory. The team also met with the staff at the Overseas Merchandise Inspection Company (OMIC) grain and chemical residue testing laboratories and with the Japanese grain traders.

“At our office, we discussed the overall decrease in wheat seeded area, but we also assured them that the United States has ample carryover stocks and production conditions look pretty good for states that are tributary to Pacific Northwest ports,” said Steve Wirsching, USW Vice President and Director of the USW West Coast Office.

Next, the team traveled to Washington state, where they looked at the journey wheat takes from the farm to port, visiting with USW Vice Chairman Mike Miller while touring a warehouse and rail facility. They also learned more about plant breeding innovations at the Washington State University wheat breeding program and the USDA Agricultural Research Service (ARS) Western Wheat Quality Lab in Pullman.

During the next leg of their trip to Washington, DC, the team shifted its focus to the U.S. and global wheat market situation and trade policy, including meetings with the North American Export Grain Association, National Grain and Feed Association and USDA/FAS.

The team rounded out their trip in North Dakota where they met with U.S. wheat producers and focused on wheat quality and the North Dakota State University wheat breeding programs.

“Japanese consumers seek extremely high quality, safe and secure products,” said Mr. Junji Kokuryo, General Manager, Flour Milling Department, and Officer, Showa Sangyo Co. “It is our responsibility to convey those needs and message to U.S. wheat producers and breeders.”

Erica Olson, NDWC Marketing Specialist, said the team was very interested in hearing about planting progress and crop expectations in North Dakota.

“Japan is not only one of our oldest customers and quality focused buyers, but they are often the largest importer of hard red spring wheat,” said Olson “Hosting the team gives them the opportunity to share their questions and needs with producers. In return, our producers better understand the necessity of a quality product ­— that all wheat is not created equal and that they need to produce a crop that stands out amongst the growing competition.”

In 2016, the USW Tokyo Office celebrated 60 years serving customers in Japan and since the office opened in 1956, bringing trade teams to the United States has become a tradition.

“Steady communication and transparency is the key to the U.S. wheat industry’s long term relationship with Japan,” said Wirsching. “Inviting our customers — and friends — here renews that commitment year-after-year and is an investment in both of our industries.”

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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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