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Wheat Grower Organizations Alarmed About Possible NAFTA Withdrawal

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are alarmed over media reports today that the Trump Administration is considering a withdrawal from the North American Free Trade Agreement (NAFTA). Mexico is our largest U.S. wheat buyer, importing more than 10 percent of all U.S. wheat exports this year. NAFTA truly opened the door to the strong and growing market opportunity in Mexico. Closing that door would be a terrible blow to the U.S. wheat industry and its Mexican customers.

USW and NAWG understand that there are several elements of the trade agreement that could be re-examined and modernized. However, we believe withdrawing from NAFTA would be a serious mistake. It could lead to new tariffs on U.S. wheat and threaten to undermine the long-standing, loyal relationship U.S. wheat farmers have built with Mexico’s wheat buyers and food industry. That would be devastating to U.S. wheat farmers already facing unprofitable prices and increasingly aggressive wheat exporting competitors.

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 a federation of 22 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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U.S. and Canadian Wheat Farmer Leaders Call for Open Wheat Trade in Op-Ed

ARLINGTON, Virginia — In an op-ed published in Canada’s “News Hub Nation” Feb. 8, 2017, U.S. Wheat Associates Chairman and wheat farmer Jason Scott and Western Canadian Wheat Growers Association President and wheat farmer Levi Wood called on the Canadian government to take the steps needed to allow “a free flow of grain in both directions across the border to improve the efficiency of the grain handling systems in both countries and eliminate artificial price distortions that frustrate farmers.”

In the op-ed, Scott and Wood said: “Since the end of the Canadian Wheat Board’s government monopoly control over the marketing of western Canadian wheat … one of the most significant changes to come from marketing freedom for wheat farmers has been the growth in sales of Canadian wheat into the U.S. market.”

“Currently, Canadian farmers delivering wheat into the U.S. receive equitable treatment with grain grown south of the border; however, because of legislation and regulation that existed for years before the marketing freedom changes came to western Canada, U.S. producers who currently deliver wheat into Canada automatically receive the lowest grade, regardless of the quality or variety of grain, even if the variety is registered in Canada … This inequity has created significant concerns in the Canadian and U.S. wheat industries, especially given the potential of re-opening the North American Free Trade Agreement (NAFTA).”

To read the complete op-ed, please click here.

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U.S. Wheat Associates Directors Elect 2017/18 Officers

WASHINGTON, DC — The U.S. Wheat Associates (USW) Board of Directors elected new officers for the 2017/18 (July to June) fiscal year at their meeting Feb. 2, 2017, in Washington, DC. The board elected Doug Goyings of Paulding, OH, as Secretary-Treasurer, current Secretary-Treasurer Chris Kolstad of Ledger, MT, as Vice Chairman and current Vice Chairman Mike Miller of Ritzville, WA, as Chairman. These farmers will take their new leadership roles at the USW Board meeting in July 2017 in Annapolis, MD, when current Chairman Jason Scott of Easton, MD, will become Past Chairman. USW is the export market development organization for the U.S. wheat production industry.

“I think it’s important for growers to give back and U.S. Wheat Associates has had such a strong and positive influence on my family’s farming operation as well as many other farms across the nation,” said Goyings. “With many pressing issues for wheat, we need a strong, united industry guiding us forward and I am honored to be a part of the leadership team working to continue to positively affect U.S. wheat farmers.”

“I’m happy to congratulate Doug Goyings for winning the election, I think he’ll make an excellent Secretary-Treasurer,” said Scott. “U.S. Wheat Associates has a strong board, filled with dedicated farmers that are willingly take time out from their own operations to represent wheat farmers. Without this type of leadership our wheat industry would not have the strong foundation and market share it does today. I look forward to working with the team to continue to promote the U.S. wheat grower’s competitive advantage, which is the quality and reliability of supply.”

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 has 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, and is in his third term on the Washington Grain Commission and his fifth year 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.

A sixth generation farmer from Maryland’s Eastern Shore, Jason Scott is the farm manager of Walnut Hill Farms where he produces soft red winter (SRW) wheat, row crops and vegetables. Scott is also an Independent Sales Representative for Pioneer Hi-Bred Int’l, under the title Scott’s Seed, L.L.C. A founding member of the Dorchester County Young Farmers, past president of the Maryland Grain Producers Utilization Board and the Maryland Grain Producers Association, Scott is no stranger to industry leadership. In 2011, he was presented the Maryland Young Farmers Achievement Award. In his eight years on the USW Board, Scott has represented his state and USW on two board team delegations to Africa and Europe and served as Secretary-Treasurer, Vice Chairman and Chairman as well as on several USW committees. He and his wife Dr. Casey Scott have a young daughter and son.

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/Foreign Agricultural Service. USW maintains 17 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.

Header Photo Caption: 2017/18 U.S. Wheat Associates Officers (L to R): Chris Kolstad, Secretary-Treasurer; Mike Miller, Vice Chairman; Jason Scott, Chairman; Doug Goyings, Secretary-Treasurer Elect; Alan Tracy, President.

Doug Goyings (above), Paulding, OH, was elected Secretary-Treasurer of U.S. Wheat Associates (USW) for fiscal year 2017/18. He will take office in July 2016 at the USW Board of Directors annual meeting in Annapolis, MD.

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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 Grower Organizations Disappointed in TPP Withdrawal; Call for New Agreements in Crucial Asian, Latin American Markets

WASHINGTON, DC — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) recognize that President Trump’s executive order to withdraw the United States from the Trans-Pacific Partnership (TPP) was inevitable. It is disappointing, however, that until an alternative trade policy is established, export opportunities in the promising Pacific Rim markets that could help U.S. wheat farmers at a time when they need it most are very much at risk.

“U.S. wheat farmers depend heavily on export demand to determine their per-bushel income,” said Jason Scott, USW Chairman and a wheat farmer from Easton, Md. “We can compete very effectively in Asian and Latin American markets where the demand for high quality wheat is rapidly increasing and our organizations took a long-view of the benefits TPP held out — a trade agreement that promoted economic growth abroad as a way to grow export sales and prosperity for farmers at home.”

Without TPP or alternative agreements, U.S. farmers will be forced to the sidelines of trade while losing market share in the region to our competitors including Australia, Canada, Russia and the European Union, which have current agreements or are negotiating new ones with countries outside the network of existing U.S. trade agreements,” said Gordon Stoner, NAWG President and a wheat farmer from Outlook, Mont.

USW and NAWG agree that trade agreements must provide the most benefit possible to our own farmers and industries. We continue to support new agreements that expand free, rules-based trade, as TPP would have done, and encourage that agricultural interests be able to continue to provide input into those negotiations.

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/Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is a federation of 22 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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U.S. Wheat Associates Hires Technical Specialist in Beijing

USW hired Dr. Ting Liu, Sep. 1, 2016, as Technical Specialist to provide technical support and training to demonstrate the performance qualities of U.S. wheat in production of baked goods and traditional Chinese wheat based products. Liu works from USW’s Beijing office and will regularly travel across China and the region to visit customers and provide baking assistance and technical service.

“Ting provides additional depth to the Beijing office and has the technical expertise that this position requires,” said Jeff Coey, Assistant Regional Vice President for China and Taiwan. “She is a great communicator and has already become a valued asset, translating technical documents and accompanying a recent trade team mission from the United States.

A native of Zhejiang province in east China, Liu received a doctoral degree in food science from the University of Minnesota (UMN) Twin Cities. She was advised by Dr. Gary Hou, Wheat Marketing Center technical director and wheat foods specialist, and UMN Professor Dr. Len Marquart, on developing whole wheat flour tortillas by using U.S. HRW, HRS and hard white (HW) wheat. Liu published four peer-reviewed technical papers and has presented research results at the annual meetings of both the AACC International and the Institute of Food Technologists. She remains actively involved in the AACC International Milling & Baking Division.

Liu is interested in both the scientific and culinary sides of baking, and in her brief time at USW has already attended baking training courses held by Hou and fellow USW colleagues Roy Chung and Shu-ying Yang. Her responsibilities include baking demonstrations, technical seminars and popularizing research results.

“We are very pleased to have Liu with us to represent USW at Chinese and regional conferences, and provide the technical support our customers need,” said Coey.

Dr. Ting Liu

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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 Promotes Ben Conner to Director of Policy, Henry Moving to Capitol Hill

USW is pleased to announce that Ben Conner has been promoted to Director of Policy to lead the USW policy team’s efforts and manage relations with wheat value chain organizations.

Current USW Vice President of Policy Dalton Henry will depart USW on Dec. 30, 2016, to take a position as Legislative Director for U.S. Congressman-Elect Roger Marshall. Henry will have the opportunity to work on policy affecting his home district in Kansas.

“We recognize that this is an opportunity Dalton should not pass up and, while we will miss him at USW, we congratulate him and thank him for his service to wheat farmers in Kansas and across the United States,” said USW President Alan Tracy. “Trade policy is a critical part of our mission to open new overseas markets and Ben is well prepared to take up to the challenge. With Policy Specialist Elizabeth Westendorf focusing on food aid, innovative breeding and production policies and other areas, our policy team will keep advancing our aggressive USW trade policy agenda.”

Conner joined USW in 2014 as Assistant Director of Policy at the organization’s Headquarters Office in Arlington, VA, after spending five years working in agriculture and trade policy in the office of U.S. Sen. Mike Johanns. He also has extensive academic experience in international affairs and agricultural economics. For more information, visit https://bit.ly/1mW1Hgq.

Ben Conner

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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 Grower Organizations Welcome New Trade Enforcement Actions Challenging China Policies

WASHINGTON, DC — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome two trade dispute actions by the U.S. Trade Representative (USTR) challenging Chinese government policies that distort the wheat market and harm wheat growers throughout the rest of the world. USW and NAWG are encouraged to see the U.S. government take such a strong position on trade enforcement, which is crucial for building confidence in existing and new trade agreements.

The USTR filed a request on Dec. 15, 2016, for consultations with the World Trade Organization (WTO), alleging that China is not fairly administering its annual tariff rate quotas (TRQ) for corn, rice and 9.64 million metric tons (MMT) of imported wheat. This request states that China’s TRQ administration unfairly impedes wheat export opportunities. The USTR announced the TRQ action simultaneously with a request that the WTO form a dispute panel in the case it filed in September against China’s excessive market price support for domestic wheat, corn and rice production.

“As with its price support case, the USTR is shining a light on other policies that pre-empt market driven wheat trade, stifle our export opportunities and force private sector buyers and Chinese consumers to pay far more for milling wheat and wheat-based foods,” said USW President Alan Tracy.

“The facts in these two cases go hand-in-hand, demonstrating how Chinese government policies create an unfair advantage for domestic wheat production,” said Gordon Stoner, president of NAWG and a wheat farmer from Outlook, Montana. “Both actions call attention to the fact that when all countries follow the rules, a pro-trade agenda and trade agreements work for U.S. wheat farmers and their customers.”

China’s wheat TRQ was established in its WTO membership agreement in 2001. Under that agreement, China is allowed to initially allocate 90 percent of the TRQ to be imported through government buyers, or state trading enterprises (STEs), with only 10 percent reserved for private sector importers. The private sector portion of the TRQ is functioning well enough to be filled in recent years, in part because Chinese millers are trying to meet growing demand for products that require flour from different wheat classes with better milling and baking characteristics than domestically produced wheat provides. However, China’s notifications to the WTO on TRQ usage show an average fill rate of only 23 percent.

The WTO does not require that TRQs fill every year, but it has established rules regarding transparency and administration that are intended to facilitate the use of TRQs.

“When you consider that China’s domestic wheat prices are more than 40 percent higher than the landed cost of U.S. wheat imported from the Pacific Northwest, it would be logical to assume the TRQ would be fully used if the system were operating fairly, transparently and predictably as the rules intend. It is clearly not operating that way,” said Tracy. “This troublesome administration of China’s wheat TRQ is restraining export opportunities for U.S. wheat farmers and farmers from Canada, Australia and other wheat exporting countries to the detriment of Chinese consumers.”

The facts also argue against potential claims that enforcing the TRQ agreement would threaten China’s food security. China produces more wheat each year than any other single country and currently holds an estimated 45 percent of the world’s abundant wheat supplies. If China met its 9.64 MMT wheat TRQ, it would move up from number 14 to number 2 on the list of the world’s largest wheat importers, and its farmers would still produce 90 percent of domestically consumed wheat. Opening the wheat TRQ would also allow private sector millers and food producers to import the types of wheat they say they need, but cannot now obtain, and the benefits would be passed on to China’s consumers.

USW and NAWG also applaud the USTR’s request for a dispute panel in its WTO challenge to China’s trade-distorting market price support programs for wheat, corn and rice. It is a crucial step toward reining in a policy that costs U.S. wheat farmers between $650 and $700 million annually in lost income by pre-empting export opportunities and suppressing global prices, according to a 2016 Iowa State University study sponsored by 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 19 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 22 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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Wheat Growers Urge Congressional Leadership to Allow a Vote on TPP

WASHINGTON D.C. — Nine months ago, following the signing of the 12-nation Trans- Pacific Partnership (TPP), the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) called on Congress to rapidly consider and ratify the agreement. After a long and disappointing wait, a real window of opportunity for a vote on TPP will soon open when the legislative session resumes next week. We call on Congress again, to urge its leadership to allow an implementing bill to be considered as soon as possible.

Wheat is the most export-dependent grain commodity grown by U.S. farmers. Since February, many national and state wheat grower association members visited congressional offices to stress their support for the agreement. Since February, however, those same growers have seen their average cash prices drop from an already unprofitable $4.90 per bushel to a devastating $3.50 per bushel.

“Wheat growers depend on export markets like those in South Asia and Latin America that are growing, but highly competitive,” said NAWG President Gordon Stoner, a wheat farmer from Outlook, Mont. “When implemented, TPP will help ease the pain of low prices by expanding demand for our wheat in those markets. Now more than ever, we cannot afford to lose even more momentum in these markets from Congress letting this opportunity to ratify TPP slip by.”

Asia is a growing region and TPP has the potential to increase economic opportunity and wheat demand even in countries where we already have duty free access. That is critically important because competitors like Australia are moving ahead with bilateral agreements that eliminate tariffs on wheat imports with countries like Vietnam. And U.S. wheat exports face similar tariff disadvantages in several other countries that want to join TPP but cannot apply for membership until after Congress and governments of the other countries ratify the agreement.

“The high standards in the TPP agreement should help us be more competitive and hopefully lead to even more opportunity for our wheat as new countries join TPP in the future,” said USW Chairman Jason Scott, a wheat farmer from Easton, Md. “The Obama Administration has taken strong actions that show trade agreements, when enforced, work for agriculture. At such a critical time, America’s farmers and ranchers need this agreement as a platform for expanding global markets for years to come.”

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 the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service (FAS).

NAWG is a federation of 22 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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Vince Peterson Named to Follow Alan Tracy as U.S. Wheat Associates President in 2017

ARLINGTON, Virginia — At their fall meeting Nov. 5, 2016, in Denver, CO, the U.S. Wheat Associates (USW) Board of Directors unanimously selected Vince Peterson as the next President of the organization replacing Alan T. Tracy, who plans to retire in July 2017. Peterson currently serves as USW Vice President of Overseas Operations. USW is the industry’s export market development organization, representing the interests of U.S. wheat farmers in more than 100 countries.

“First I want to thank the board for their confidence in me following the great work that Alan has done leading this organization for the last 20 years,” Peterson told the farmer directors. “This day would not be possible for me without the work and support of all the overseas staff and my colleagues here in our U.S. offices. I want all of them and the board to know that I will do all I can to continue this organization’s strong service to American wheat farmers and their overseas customers.”

“Protecting and expanding export demand for wheat has always been critical, but never more so than in this depressed market,” said 2016/17 USW Chairman Jason Scott, a wheat farmer from Easton, MD. “The entire board believes that Vince Peterson is the right person at the right time to fill the President’s position after Alan retires. He has spent his entire career in the grain trade and has been a steady hand directing overseas marketing efforts for USW over the last 31 years. This also represents a very practical way to make this transition.”

After Tracy informed the board in July 2016 of his intention to retire, Scott formed a search committee and appointed USW Past Chairman Brian O’Toole, a wheat farmer from Crystal, ND, as its chair.

“During our initial meetings, the committee decided to focus the search for Alan’s replacement inside the wheat industry,” O’Toole said. “Vince expressed his interest in the position and it quickly became clear that he was the most qualified candidate with obvious respect across the entire wheat industry. The committee voted unanimously to recommend him to the directors, and they agreed with us.”

“From the start of this process I expressed my hope that this would be a smooth transition,” Tracy said. “Vince has been one of my senior staff colleagues from the time I accepted this position in 1997 and I had no hesitation recommending him as my replacement. We will have plenty of time to look back at my work here, but for now I offer my sincere congratulations to Vince and I look forward to working with him and the board to make sure this organization doesn’t miss a beat.”

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” Its activities are made possible by producer checkoff dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org or contact your state wheat commission.

Header Photo Caption: Wheat Export Organization Announces Leadership Transition for 2017. U.S. Wheat Associates (USW) Board of Directors selected Vince Peterson (far left) as the next President of the organization at their fall meeting Nov. 5, 2016, in Denver, Colo. Peterson, who currently serves as Vice President of Overseas Operations, will replace Alan T. Tracy (second from right) who will retire in July 2017 after 20 years as USW President. They join USW Chairman Jason Scott (second from left), a wheat growers from Easton, Md., and Past Chairman Brian O’Toole (far right), a wheat growers from Crystal, N.D., who chaired a selection committee.

 

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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 Farmers Participate in USDA Export Promotion Programs that Boost U.S. Farm Export Value by 15 Percent, Create Thousands of Jobs

ARLINGTON, Virginia — Agricultural export market development programs funded through the Farm Bill have contributed an average of $8.2 billion per year, a total of more than $309 billion, to farm export revenue between 1977 and 2014 according to a new study conducted by noted land grant university economists.

“In other words, these programs have accounted for 15 percent of all the revenue generated by exports for U.S. agriculture over that time. To me, such a positive result is just stunning,” said Dr. Gary Williams, professor of agricultural economics and co-director of the Agribusiness, Food, and Consumer Economics Research Center at Texas A & M University, who led the study.

The study examined the effectiveness of USDA’s Market Access Program (MAP) and the Foreign Market Development (FMD) program. They are part of a public-private partnership that provides competitive grants for export development and promotion activities to non-profit farm and ranch organizations that contribute funds from checkoff programs and industry support.

U.S. Wheat Associates (USW) represents U.S. wheat farmers in overseas markets and is a participant in the MAP and FMD programs. Private funding for USW’s export market development activities comes from 19 state wheat commissions and qualifies USW to compete for program funds. For every $1 wheat farmers contribute, they earn an additional $2 in MAP and FMD funding. A recent, separate study showed that between 2010 and 2014, every $1 wheat farmers invested in the program generated an additional $149 in U.S. wheat exports and returned $45 in net revenue back to farmers from the increased export demand.

The 2016 study measuring the general effectiveness of total MAP and FMD funding showed that average annual farm cash income was $2.1 billion higher, and annual average farm asset value was $1.1 billion higher over 2002 through 2014. The programs increased total average annual U.S. economic output by $39.3 billion, GDP by $16.9 billion and labor income by $9.8 billion over the same time. The study results also showed that the economic lift created by these programs directly created 239,000 new jobs, including 90,000 farm sector jobs.

By testing what would happen if federal MAP and FMD funding were eliminated, the study showed that average annual agricultural export revenue would be lower by $14.7 billion, with corresponding annual average declines in farm cash income of $2.5 billion and significant drops in GDP and jobs.

“I would say these are very successful economic development programs based on their impact to the farm and general U.S. economy,” Dr. Williams concluded.

The non-profit agricultural organizations that participate in MAP and FMD contributed about $470 million dollars per year to the programs in 2014. That was more than 70 percent of total funding. The federal budget for MAP has been fixed at $200 million per year since 2006 and FMD’s $34.5 million annual budget has not changed since 2002. The Commodity Credit Corporation programs are administered by USDA’s Foreign Agricultural Service (FAS), which is required to report to Congress periodically on program effectiveness.

This is the third study of FAS export promotion programs since 2007 but the first to use an export demand analysis to measure their effectiveness. MAP and FMD participating organizations USW, USA Poultry & Egg Export Council and Pear Bureau Northwest sponsored the new study, which was funded by USDA FAS. Informa Economics IEG assembled data to support the study, recruited the team of five agricultural economists from Texas A & M, Oregon State University and Cornell University, interviewed dozens of MAP and FMD participants and reported on results.

The new study identified a return on investment from these programs between 1977 and 2014 of 28 to one, which Dr. Williams considers quite strong and is consistent with results from the two previous MAP and FMD cost-benefit studies.

“The average return on investment, or benefit to cost ratio, for 27 previous industry specific export promotion studies is just under 11 to one,” Dr. Williams said. “So I was, frankly, quite surprised that the return was this high. The previous MAP and FMD studies showed returns of 25 to one in 2007 and 35 to one in 2010.”

Informa’s report concluded that no matter what type of analysis is used or what time period is considered, “the results of this study and previous studies all demonstrate the importance and effectiveness of market promotion funding on exports, the farm economy and the overall macro economy.”

The entire study results, a separate Executive Summary (posted below) and more information is posted online here.

2016 USDA Export Market Development Program Study Contributors

Dr. Gary Williams is Professor of Agricultural Economics and Co-Director of the Agribusiness, Food, and Consumer Economics Research Center (AFCERC) at Texas A&M University, College Station, Tex. He is the AFCERC chief operations officer responsible for managing the research program of the Center and leads AFCERC research and outreach projects relating to commodity and agribusiness markets and policy and international trade and policy. He is also an Associate Faculty Member of the Department of International Affairs in the Bush School of Government and Public Service at Texas A&M University. His areas of teaching and research emphases include commodity promotion programs, international agricultural trade and development, agricultural policy, and marketing and price analysis. Dr. Williams was raised in Lubbock, Texas and holds a Ph.D. and an M.S. degree in Agricultural Economics from Purdue University and a B.S. in Economics from Brigham Young University. Prior to joining the faculty at Texas A&M University in 1988, he gained experience as a professor and Assistant Coordinator of the Meat Export Research Center at Iowa State University, Senior Economist at Chase Econometrics, agricultural economist for the USDA, and Special Assistant to the U.S. Deputy Under Secretary of Agriculture for International Affairs and Commodity Programs at USDA. In recent years, he has become particularly well known for his research on the economic effectiveness of commodity checkoff programs, including those for soybeans, cotton, lamb, dairy, Florida orange juice, Texas citrus, Texas pecans, and others. He is also well known for his research on U.S. and world oilseed and oilseed product markets and the U.S. livestock industry including issues related to sheep and lamb markets and the effects of concentration in the beef packing industry. He recently served as Chair of a National Academy of Science Committee on the Status and Economic Performance of the U.S. Sheep and Lamb Industry. He also recently served as a member of a National Academy of Science Committee on the Future of Animal Science Research.

Dr. Jeff Reimer, Associate Professor, College of Agricultural Sciences, Oregon State University, Corvallis, Ore. Dr. Reimer has been with Oregon State University since 2005. His research program concerns topics in international trade, the economics of food and agriculture, and general equilibrium modeling. Dr. Reimer teaches courses in agricultural price and market analysis, micro-economic theory, and international trade. Dr. Reimer grew up on a farm in Illinois before receiving a bachelor’s degree from the University of Illinois and spending three years working in agricultural development in rural Bangladesh. After completing his doctorate in Agricultural Economics from Purdue University in 2003, he spent two years as a research associate at the University of Wisconsin-Madison. At Oregon State University he has been major advisor for 10 graduate students and been the recipient of more than a dozen grants and contracts. He has published more than 30 journal articles and book chapters, including in the Journal of International Economics, Economic Inquiry, and the American Journal of Agricultural Economics.

Dr. Rebekka M. Dudensing, Assistant Professor and Extension Specialist, Department of Agricultural Economics, Texas A&M University. Dr. Dudensing’s responsibilities include the analysis of economic and fiscal impacts. She also studies economic responses to natural disasters and the roles of business and social structures in community economic development. She has done extensive economic impact modeling including IMPLAN I-O approaches. Much of her research is driven by the concerns of Extension clientele with objectives to find solutions to those local concerns and to project these issues to a wider audience though applied research and methodological improvements. Dr. Dudensing is particularly interested in the sustainability of agriculture- and natural resource-dependent rural communities.

Dr. Bruce A. McCarl, University Distinguished Professor and Regents Professor of Agricultural Economics at Texas A&M University. He received his B.S. in Business Statistics at the University of Colorado and Ph.D. in Management Science from Pennsylvania State University. His recent research efforts have largely involved policy analysis (mainly in climate change, climate change mitigation, water economics, and biosecurity) as well as the proper application of quantitative methods to such analyses. He teaches graduate courses in applied mathematical programming and applied risk analysis. He was part of the 2007 Nobel Peace Prize winning Intergovernmental Panel on Climate Change.

Dr. Harry M. Kaiser, Gellert Family Professor of Applied Economics and Management, Cornell University, Ithaca, N.Y. Dr. Kaiser teaches and conducts research in the areas of price analysis, marketing, and quantitative methods. Professor Kaiser has written 114 refereed journal articles, four books, 17 book chapters, over 150 research bulletins, and received $8 million in research grants in these areas. Since 1994, Professor Kaiser has been the director of the Cornell Commodity Promotion Research Program. Much of his research focuses on the market-wide economic effects of commodity advertising and promotion programs. Currently, Professor Kaiser and his staff annually conduct the economic analysis required by the U.S. Congress for the national dairy and fluid milk processor advertising programs.

Joe Somers, Vice President, Informa IEG, Washington, D.C. Somers is responsible for economic analyses and agricultural policy consultancy work. He brought to Informa more than 25 years of experience with USDA’s Foreign Agricultural Service (FAS) as a Foreign Service officer and has been a member of Informa’s staff since 2002. While at FAS, he served in Brazil and Argentina and traveled on official USDA fact-finding trips. In Washington, D.C., he supervised and conducted world supply/demand and trade policy analyses for a wide range of commodities and managed publication of several analytic circulars. He also was director of research and marketing for the GIC Group, Alexandria, Virginia, where he was responsible for business development and economic and market analyses. He received his bachelor’s degree in political science from Northeastern University, Boston and master’s in agricultural economics from the University of Massachusetts, Amherst.

For additional information:

https://www.fas.usda.gov/programs/market-access-program-map

https://www.fas.usda.gov/programs/foreign-market-development-program-fmd

https://bit.ly/1UsGNU5

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 the profitability of U.S. wheat producers and their customers.” The activities of USW are made possible by producer checkoff dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org or contact your state wheat commission.

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