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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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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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Boyuan Chen to Represent U.S. Wheat Farmers in Taiwan Market

ARLINGTON, Virginia — U.S. Wheat Associates (USW) has hired Boyuan Chen as Country Director in the organization’s Taipei, Taiwan, office. Starting Nov. 1, 2016, Chen will manage U.S. wheat market development programs and USW’s business and government relationships in a market that imports on average about 38 million bushels of U.S. wheat every year. Chen will replace long-time Country Director Ron Lu, who is transitioning to retirement at the end of 2016 after 33 years with USW.

“Boyuan Chen is an ideal manager for this position who will draw from 20 years of experience in food and feed commodity procurement with Uni-President Enterprises,” said USW Regional Vice President Matt Weimar. “He joins our history of strong leadership since Western Wheat Associates opened an office in Taipei more than 50 years ago. By helping Taiwan’s flour millers and wheat foods industry constantly improve their products, we have developed very loyal customers for U.S. dark northern spring, soft white and hard red winter wheat farmers.”

After three years in banking, Chen started with Uni-President, Asia’s largest food production corporation, in 1997 as a grain market analyst and gained experience in the company’s soybean procurement group. In 2001, he moved up to assistant chief of the company’s Taipei procurement section working closely with the Taiwan Flour Mills Association (TFMA), the Taiwan Feed Industry Association and the Taiwan Vegetable Oil Manufacturers Association. Chen’s last position with Uni-President was as section chief of import affairs from 2009 to 2016. He earned a bachelor’s degree in Agricultural Economics from National Taiwan University, Taipei, in 1989, and a master’s degree in Financial Management from Syracuse University in 1994.

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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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 Bids Farewell to Taiwan Colleagues Ron Lu and Serena Wu

TAIPEI, Taiwan – U.S. Wheat Associates (USW) announces the retirement of two long-time associates from its Taipei Office. After 33 years of service, Ronald L. J. Lu is stepping down as Country Director, and Serena Wu is retiring her post as Office Manager and Accountant after 38 years of service.

“Today, per capita wheat consumption in Taiwan has exceeded that of rice. It is a market that prefers the quality and reliability of U.S. wheat and Ron and Serena have played key roles in that success,” said USW Regional Vice President Matt Weimar, who oversees operations in South Asia, China, Hong Kong and Taiwan. “USW has a strong presence in Taiwan, across all sectors and entities in the food industry because of their dedication and commitment representing U.S. wheat farmers.”

Lu joined USW in 1983 as a technical specialist and was appointed country director in 2004. During his tenure, Lu worked directly with end users and importers to help them strengthen commercial links with U.S. export companies through trade servicing, technical assistance and promotional activities. From 2007 to 2009, Lu served as the chairman of the China Grain Products Research and Development Institute (CGPRDI). During his USW career, he has facilitated countless customer and trade team visits to the United States, including the biennial Agricultural Trade Goodwill Mission during which the Taiwan Flour Mills Association (TFMA) traditionally signs letters of intent to purchase U.S. wheat during the following two marketing years. Lu will remain with USW through the end of 2016 providing ongoing assistance as a Senior Advisor.

“Over these many years, Ron has added value to every level of USW’s work in Taiwan — from improving and creating the finest wheat food products for consumers to strengthening the long standing trade relationship between Taiwan and the United States,” said USW Vice President of Overseas Operations Vince Peterson. “Through his steady efforts and successes, he has made immeasurable contributions to both the wheat food industry in Taiwan and the U.S. wheat production and export industries.”

“By hosting so many public introductions of those new wheat food products with his customers and educational partners, Ron truly has been the face of U.S. wheat in Taiwan,” said Weimar.

Wu joined USW in 1978 serving as a personal assistant to the country director and overseeing daily office operations. Her responsibilities ranged from budget development and program management to finances and translations. She had an important role in planning conferences, seminars and meetings for the Taipei office, including arranging travel for office staff, consultants and trade cooperators.

“With an ever-engaging smile and upbeat attitude, Serena has been a constant element in producing and molding USW’s activities into a highly successful program for Taiwan,” said Peterson. “She has been indispensable and the wheat-related industries on both sides of the Pacific owe her a huge thank you for her dedication, service and for bringing us all together.”

Taiwan is on average the sixth largest market for U.S. wheat, purchasing more than 15 million metric tons (more than 550 million bushels) since 1998. In each of the past two marketing years, Taiwan’s flour millers purchased about 1.0 million metric tons (MMT), or nearly 37 million bushels, of U.S. 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 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.

Header Photo Caption: Ron Lu and Serena Wu with USW colleagues at the USW Taipei Office 50th Anniversary event in April 2016. (L to R): Steve Mercer, Vice President of Communications; Shu-Ying “Sophia” Yang, Asian Products/Nutrition Technologist; Erica Oakley, Program Manager; Serena Wu, Office Manager and Accountant; Fiona Lee, Executive Secretary and Accountant; Matt Weimar, Regional Vice President; and Ronald Lu, Country Director.

Caption: USW staff recently hosted a dinner honoring Ron and Serena’s many years of service. (L to R): Ronald Lu, Country Director; Kevin McGarry, Vice President of Finance; Serena Wu, Office Manager and Accountant; and Matt Weimar, Regional Vice President.

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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 Rutger Koekoek to European Regional Marketing Director

ARLINGTON, Virginia – U.S. Wheat Associates (USW) is pleased to announce that Rutger Koekoek is promoted from marketing specialist to regional marketing director for Europe. Koekoek joined USW in 2009 and is based in the organization’s regional office in Rotterdam, The Netherlands. USW is the export market development organization for U.S. wheat farmers.

“We are recognizing Rutger’s work and his successful performance over the past several months filling this regional role as our long-time director Goris van Lit transitioned to retirement,” said USW Regional Vice President Ian Flagg. Flagg manages USW staff and all market development activities in Europe, the Middle East and North Africa from Rotterdam.

Europe continues to be an important regional market for U.S. wheat. It is the largest export market for northern durum and Desert Durum® and flour millers frequently import U.S. hard red spring (HRS) wheat to blend with locally-produced “soft” wheat.

Before joining USW, Koekoek worked in seed sales and marketing management first with Delta and Pine Land in its Netherlands office. Koekoek managed sales and marketing of cotton seed in Europe and directly managed Delta and Pine Land’s Turkish subsidiary. Koekoek also worked as a marketing product manager for Dutch vegetable seed producer De Ruiter Seeds, where he steered the development and product lifecycle for pepper and eggplant varieties.

Koekoek received a bachelor’s degree in International Management at the Rotterdam Business School and a master’s degree in Agricultural Economics and Marketing from Wageningen Agricultural University.

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.

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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 Welcome Trade Enforcement Action on Chinese Market Support Programs

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the Obama Administration’s new trade enforcement action against China at the World Trade Organization (WTO). The significant investigative effort by the Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) followed five years of work by USW, NAWG and other industry partners to demonstrate how China’s domestic support policies hurt U.S. farmers.

This enforcement action challenges the level of China’s trade-distorting market price support programs for wheat as well as for corn and rice. In describing its action, USTR said “the level of support provided through these programs in excess of China’s commitment was nearly $100 billion.”

These programs cost U.S. wheat farmers between $650 and $700 million annually in lost income by pre-empting export opportunity and suppressing global prices, according to a 2016 Iowa State University study sponsored by USW. That loss estimate is actually 19 percent more than the losses estimated by a similar 2015 study due to the effect of increasing global stocks and resulting market price decline.

“Wheat production subsidies in China and other advanced developing countries are the single biggest policy issue affecting our farm gate prices and global trade flows,” said USW President Alan Tracy. “In taking this step, USTR and USDA are demonstrating that trade enforcement can ensure that our many trade agreements and a pro-trade agenda really work for American farmers.”

“This enforcement action shows a welcome willingness to defend farmers against governments that blatantly disregard the rules of the road under their trade agreements,” said NAWG President Gordon Stoner, a wheat grower from Outlook, MT. “It comes at a critical time for farmers who have seen market prices collapse to unsustainable levels in recent years.”

A 2014 study by DTB Associates, also sponsored by USW, showed that China’s minimum procurement price of about $10 per bushel for wheat, in addition to other subsidies, violates China’s WTO commitments. That market price support is so high that the Chinese government has to purchase and store enormous stocks of domestic wheat. As a result, USDA estimates that by June 2017, China will hold 44 percent of the world’s wheat stocks, which will be at record levels and further depress market prices. This also hurts Chinese flour millers who are forced to purchase overpriced domestic wheat from these stocks and hurts their customers who pay more for the flour.

Noted Iowa State University agricultural economist Dr. Dermot Hayes conducted the 2015 and 2016 studies of domestic support effects. In reviewing the 2016 study results, which compared a base case including China’s current support to a new scenario in which the factors represented by China’s policies were removed, Dr. Hayes said farmers there would grow less wheat because domestic prices would fall and input costs would increase.

“In our comparison, that would benefit farmers in the United States and other wheat exporting countries as China would need to increase its imports to more than 9 million metric tons,” Dr. Hayes said. “The corresponding lift in wheat exports would increase U.S. farm income from wheat by 19 cents per bushel.”

“China may try to cloak its market price support as necessary to achieve self-sufficiency in wheat production, but this does not justify ignoring its trade commitments,” said Tracy. “Trade plays a vital role in food security, as no country can truly be self-sufficient in food production. The studies we have sponsored clearly show that eliminating its expensive market price support programs and letting the market work to meet their wheat needs would reduce the cost of food for Chinese consumers.”

“Trade agreements cannot meet their promise if other countries ignore the rules, no matter if the agreements are multilateral, bilateral or regional like the Trans-Pacific Partnership,” said Stoner. “That TPP has improved enforcement mechanisms is one more reason we strongly support its passage. Our grower organizations fully support this new trade enforcement action with China, and we will continue to work with our government and industry partners to address other trade distorting issues.”
USW and NAWG have posted the Iowa State studies online at https://bit.ly/1XPLrLo and https://www.wheatworld.org/issues/trade/. For results of two DTB Associates studies measuring domestic support in advanced developing countries, visit www.dtbassociates.com/docs/DomesticSupportStudy11-2014.pdf and www.dtbassociates.com/docs/domesticsupportstudy.pdf. For a third party analysis of individual policy measures by country, visit https://www.oecd.org/tad/agricultural-policies/producerandconsumersupportestimatesdatabase.htm#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 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.

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 Industry Welcomes End to Japan’s Temporary Suspension of White Wheat Imports

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are pleased that Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) resumed tenders this week for new purchases of U.S. Western White (WW) wheat, a blend of soft white and club wheat. On Sept. 1, 2016, MAFF announced it had purchased 58,000 metric tons, or more than 2.13 million bushels, of WW for delivery in October.

MAFF had temporarily suspended new WW purchases following the announcement on July 29, 2016, by USDA’s Animal and Plant Health Inspection Service (APHIS) that a small number of wheat plants containing an unapproved, genetically engineered (GE) event to resist the herbicide glyphosate were found in a fallow field in eastern Washington State.

USW and NAWG believe that this unexpected situation caused only a minor disruption in trade because every stakeholder approached it in a reasonable way. APHIS promptly identified the regulated wheat event, validated a detection method developed by Monsanto and made that test available to officials in Korea and Japan. Effective communications between government officials, including USDA’s Foreign Agricultural Service, the grain trade companies and customers kept the process moving in a positive way.

As a result, APHIS, MAFF and the Korean government have now tested thousands of samples of U.S. wheat and found no evidence of any GE material in commercial supplies, which reaffirms the conclusion that this was a limited, isolated situation.

The productive relationships wheat farmers and their representatives at USW, NAWG and state wheat organizations have built with customers at home and around the world also played an important part in resolving this incident.

On behalf of those wheat farmers, USW and NAWG express our appreciation to APHIS for its help. To all our customers, we thank them for their response to this situation and their continued confidence in the quality, safety and value of U.S. wheat.

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 United States – +1-605-331-4923). 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 Bringing Indonesian Milling Executives to Experience U.S. Wheat Supply System

ARLINGTON, Virginia — Three top-level executives from Indonesia’s largest flour milling company will travel to North Dakota and the Pacific Northwest August 17 to 27, 2016, with U.S. Wheat Associates to learn how they can select and efficiently import different classes of U.S. wheat. The millers work for Bogasari, which operates four separate flour mills in Indonesia. These managers in quality and product development, production planning and finance will see and hear how U.S. hard red spring (HRS), hard red winter (HRW) and soft white (SW) can help them meet the needs of their growing market.

Funding for this trade team visit comes from USDA through its Foreign Agricultural Service export market development programs and from in-kind contributions from the Montana Wheat and Barley Committee, the Idaho Grain Commission, the Washington Grain Commission, the Oregon Grain Commission and the Wheat Marketing Center in Portland, OR.

“USW has had success demonstrating to Indonesian mills the processing advantages of flour made from U.S. hard red spring and winter wheat for bread products,” said USW Regional Vice President Matt Weimar, who will lead the Bogasari team. “We are also promoting soft white for superior performance in cakes, cookies and other soft wheat products. This visit supports those strategies very well.”

The team will start its visit in Fargo, ND, with the North Dakota Wheat Commission, North Dakota State University and Northern Crops Institute focusing on the advantages of HRS and the on-going work to improve functional performance. Next is a visit to Greg Svenningsen’s farm in Valley City, ND, and a country elevator owned by Columbia Grain before the team flies west to Portland. The visit there and then back up-country to eastern Washington and northern Idaho provides a complete picture of the U.S. Pacific Northwest wheat supply system and a detailed look at SW advantages.

“With U.S. wheat at a price disadvantage compared to Canadian wheat the last couple years and with Australia’s strong influence with Indonesia nearby, it is important to bring top-level managers from a large mill like Bogasari that has a majority market share to the United States to put a face on our advantages,” said Weimar. “It makes a difference when the buyer meets the breeders, farmers and grain handlers who actually make U.S. wheat the world’s most reliable supply.”

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 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. Its activities are made possible through producer checkoff dollars contributed by 18 state wheat commissions and cost-share funding from USDA’s Foreign Agricultural Service.

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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 United States – +1-605-331-4923). 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 Market Analyst Joins Colombian Trade Team on Its U.S. Tour

For Stephanie Bryant-Erdmann, USW’s market analyst, the diversity of the wheat export market and its changes keep her job interesting. She works closely with industry partners and USW overseas staff to track the pulse of the industry, so when the opportunity to gain direct insight into customer needs and concerns by traveling with one of USW’s trade teams from Colombia — she took it.

“Trade teams provide a unique opportunity to see the interaction between U.S. exporters and their customers that normally takes place remotely,” said Bryant-Erdmann. “This face-to-face interaction helps me better understand the challenges and opportunities U.S. wheat exports face.”

With funding from USDA’s Foreign Agricultural Service, USW collaborated with the North Dakota Wheat Commission (NDWC) and the Montana Wheat & Barley Committee (MWBC) to host a trade team of five Colombian executives July 24 to 30, 2016. Colombia was the top destination for U.S. wheat in South America in marketing year 2015/16 (June to May) after importing over 670,000 metric tons (MT) from four of the six U.S. wheat classes. During their visits to North Dakota, Montana and Louisiana the team focused on renewing their familiarity with the advantages of the U.S. wheat marketing system and gaining a better understanding of the U.S. wheat industry.

“The managers on this team represent the major flour, cookie and pasta groups in Colombia. Some are experienced buyers and account for 40 percent of the country’s wheat imports in 2015,” said USW Assistant Regional Director Osvaldo Seco, who led the team. “They are directly responsible for evaluating and importing wheat for their organizations and this trip put them directly in contact with traders to better inform their purchasing decisions.”

The team started its trip in Fargo, ND, at the Northern Crops Institute where they heard from a variety of North Dakota State University durum and spring wheat researchers on breeding and quality programs, pasta production techniques and pricing strategy.

“The programs the state commissions put together were excellent. One highlight for me was the USDA-ARS Hard Spring and Durum Wheat Quality Laboratory on the NDSU campus,” said Bryant-Erdmann. “Not only did the team see the depth and breadth of the lab’s capabilities, but we also saw samples fresh from the elevators and fields awaiting analysis for the USW annual Crop Quality Report.”

The trip’s northern leg, which included Montana, put an emphasis on highlighting the supply chain with tours of farms, grain elevators, the Montana State Grain Laboratory, Pasta Montana, General Mills and Columbia Grain. They also had several opportunities to meet directly with growers.

To top off their experience, the team traveled to Destrehan, LA, to visit a FGIS field office and a Bunge export elevator; and to Reserve, LA, to visit Cargill’s Terre Haute Marine Facility.

“Gulf exports account for roughly 45 percent of all U.S. wheat export volume, and have their own, unique challenges and opportunities,” said Bryant-Erdmann. “While the Pacific Northwest handles a similar quantity of exports, the Gulf climate, origination logistics, classes of wheat and customers ensure it is an entirely different animal. This was a great experience to share with the team.”

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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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