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The first event as U.S. Wheat Associates (USW) Country Director for Taiwan Yi-I Huang was to lead his staff and 10 Taiwanese customers of U.S. wheat to the USW North Asia Marketing Conference in Bali, Indonesia. He handled it with ease.

In this short video, we hear from Huang (his first name is pronounced “E-E”) and learn a little about his background. He came to USW after a 14-year career in grain merchandizing, working in both Taipei, Taiwan, and Tokyo, Japan.  We also learn that he is fluent in Mandarin, Taiwanese, Japanese, and English. He holds bachelor’s and master’s degrees in agriculture from National Taiwan University in Taipei, and he participated in an international exchange program at Keio University of Tokyo, Japan.

 

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As we continue a series of articles on U.S. supply chain logistics, rail is arguably the most important mode of transporting wheat for export.

According to a recent USDA Modal Share Analysis Study, rail accounted for an average of 59% of inland transportation for wheat exports between 2016 and 2020, or an average annual total of 17.0 million metric tons. This article will focus on the importance of rail freight in wheat exports and address current trends in rail performance.

Two vertical bar charts showing the volume of U.S. wheat shipped domestically and to export locations by truck, rail and barge between 2004 and 2020.

Rail and barging are the main modes of transportation for wheat exports, as they can handle large volumes of grain over long distances. Together, they transport 89% of the total wheat export shipments. Source: USDA Modal Share Analysis Study.

An Interesting Year

In 2022, increased demand for railcars and performance issues sent U.S. rail rates soaring, with Secondary Railcar Auction Market Bids hitting their highest since 2014. Since then, rail rates have eased drastically. From March 2023 to July 2023 secondary bids for railcars have been negative, indicating that the current supply of railcars is sufficient for meeting the needs of shippers.

Decreased volumes and the subsequent decrease in rail tariff rates and Secondary Railcar Market Auction Bids have added additional pressure to already low basis levels, helping boost the competitiveness of U.S. wheat to importers. However, as the 2023 soy and corn harvest progresses, we can expect rail rates to rise due to increased demand and a higher volume of grain moving via rail.

This vertical bar and line chart show a comparison of grain carloads average from previous years to the current 4 week period up to 8/25/23.

According to the latest Grain Transportation Report, grain carloads (corn, soybeans, and wheat) moved by Class I railroads were down 3% from the previous week and are sitting 22% below the three-year average. The current decreased volume alleviates pressure on basis as rail companies have a sufficient supply of cars to meet the current demand. Source: September 3, 2023 USDA Grain Transportation Report.

Even so, the outlook for fall logistics appears positive. In a recent interview with “Freightwaves,” transportation export Jay O’Neil indicated that “Weather is always a question mark that makes it [performance] impossible to predict. But overall, I think the railroads… have some excess capacity because of [reduced grain export volumes]. I think [railroads] are very much looking forward to the harvest season … So, I don’t see any particular influences right now that should get in their way and prevent them from providing a decent service for harvest.”

Part of a Reliable System

U.S. Wheat Associates (USW) is committed to sharing transparent and pertinent information to customers about inland logistics issues. It is beneficial for U.S. wheat importers to be aware of transportation trends, as seasonal shifts and potential issues have a direct influence on export basis and the Free-on-Board export price.

Encompassing the largest share of inland logistics, the railroads are a critical component for moving U.S. wheat to export. After last years’ service disruptions, steps have been taken to help address the root issues such as hiring additional crew and investing in infrastructure. U.S. railroads are committed to moving U.S.-grown commodities. With diverse origination options and numerous modes of transportation, regardless of the class or export point, rail helps U.S. wheat remain the most reliable choice for world importers.

This article is part of a series outlining the inland logistics for U.S. wheat, highlighting barge freight, the railroads, infrastructure investments, and maritime transportation trends.

By USW Market Analyst Tyllor Ledford

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U.S. Senators Debbie Stabenow (D-Mich), Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, and John Boozman (R-Ark), Ranking Member, have urged USDA to use its authorities under the Commodity Credit Corporation (CCC) Charter Act to support opportunities for U.S. farmers.

In a letter to the USDA Secretary Tom Vilsack, Stabenow and Boozman highlighted the need to invest in trade promotion and in-kind international food assistance, both of which support American farmers and producers.

Good for U.S. Farmers

“As Congress works toward reauthorizing critical programs in the Farm Bill, we continue to hear from organizations representing the vast majority of U.S. agriculture about the need to strengthen trade opportunities, increase revenue streams, and help producers grow and thrive in a global economy,” the Senators wrote. “We believe that resources available under the CCC can support similar efforts to open access to markets and promote American-grown products abroad.”

“The letter is intended to convey the strong, bipartisan support for additional market promotion funding but also reflects the challenge of identifying new funding resources for a broader Farm Bill reauthorization,” said Tyson Redpath with The Russell Group, a bipartisan government relations firm that represents the Coalition to Promote U.S. Agricultural Trade, in which U.S. Wheat Associates (USW) is a member.

“There is also bipartisan support for critical U.S. Department of Agriculture international food assistance programs,” the Senators continued. “We urge you to explore using CCC resources to advance food assistance initiatives, which will both address humanitarian needs abroad and support American farmers.”

Chinese wheat foods seminar

USW’s work providing technical support to overseas wheat buyers and end product processors like this healthy Chinese wheat food baking seminar in Taiwan is funded by export market development programs administered by USDA-Foreign Agricultural Service. Congress approves program funding through federal “Farm Bill” legislation.

Good for Importers of U.S. Wheat

“We were quite pleased to see the leaders release their letter to Secretary Vilsack,” said USW President Vince Peterson. “Our friends at the National Association of Wheat Growers are strong advocates in Congress for increased export market development program funding. And the use of CCC funds to enhance both export marketing activities and food aid programs would be to the great benefit of U.S. agriculture and the overseas wheat buyers with whom we work.”

This request from the Chairwoman and Ranking Member comes as the Committee continues working to develop a Farm Bill this year. The full text of the letter can be found here.

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Federal officials including U.S. Secretary of Agriculture Tom Vilsack joined Washington state lawmakers and university leaders in early August for the groundbreaking of a new U.S. Department of Agriculture-Agricultural Research Service (USDA-ARS) Plant Sciences Building on the Washington State University (WSU) campus in Pullman.

ARS is USDA’s “in-house research agency” focused on delivering scientific solutions to national and global agricultural challenges. ARS conducts wheat quality research through four regional Wheat Quality Laboratories (WQLs) focused on wheat types commonly grown in its region, including the Western Wheat Quality Laboratory also located at WSU. U.S. Wheat Associates (USW) has strong partnerships with each WQL as well as universities like WSU.

The new building at WSU is planned for opening in 2025. The WSU Plant Pathology, Crop and Soil Sciences, and Horticulture departments will inhabit the new building alongside federal scientists and four ARS research units: Wheat Health, Genetics and Quality; Grain Legume Genetics and Physiology; Northwest Sustainable Agroecosystems; and Plant Germplasm Introduction and Testing.

At the ground-breaking ceremony, more than 150 guests listened as speakers discussed the 20-year path to securing support for this new facility.

U.S. Secretary of Agriculture Tom Vilsack at a podium with the USDA seal addressing participants in a ground breaking ceremony for a new ARS Plant Sciences Building at Washington State University (WSU).

U. S. Secretary of Agriculture Tom Vilsack. WSU Photo.

Secretary Vilsack asked attendees to think ahead to a future when the facility is completed, bustling with students, faculty, and researchers looking to solve the problems facing farmers in Washington and far beyond.

“There’s an effort to try to make sure that we understand how to deal with a particular disease that is impacting wheat production. And imagine the spark, the passion, the energy, the excitement that occurs when the solution is discovered. That’s what this facility is about, that moment of discovery,” he said.

Vilsack noted the new facility will not only be a place for discovery but also a resource that farmers both local and far afield of the Palouse will benefit from in the form of new techniques and greater insight into the vital work they do.

“To the extent that we have a university and a government research entity in partnership, ensuring that farmer, that rancher, that grower, that producer, can continue to be productive is an enormous opportunity for this country, and each one of us should be thankful at this groundbreaking for the science that’ll take place that’ll help these farmers, ranchers, and producers continue to productive,” Vilsack said.

Elizabeth Chilton, the inaugural chancellor of the WSU Pullman campus, noted that the groundbreaking represented much more than the beginning of a new research facility.

“It is evidence of the incredible partnership that WSU celebrates with USDA and our local, state, and federal legislators, commissioners, and communities,” Chilton said. “The groundbreaking research that this facility will support will literally change lives. This building will support faculty members, students, and researchers partnering together to create better crops and more sustainable farming practices so that we’re able to better feed our planet.”

Guests and dignitaries attending a ground breaking ceremony at Washington State University (WSU) for a new ARS Plant Sciences Building.

Washington Grain Commission Vice President Mary Palmer Sullivan (second from right) was among dignitaries and guests at the USDA-ARS Plant Sciences Building Groundbreaking ceremony on the campus of Washington State University Aug. 1, 2023. WSU Photo.

In addition to representatives from the federal government and Washington state agriculture groups (including Washington Grain Commission Vice President Mary Palmer Sullivan), WSU Board of Regents Chair Lisa Schauer and Regent Brent Blankenship, a Washington state wheat farmer and Past President of the National Association of Wheat Growers, also attended the events.

This article includes excerpts and photographs from an article in “WSU Insider” by RJ Wolcott. Read more here.

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News and Information from Around the Wheat Industry

Speaking of Wheat

“When we went to ethanol production, we had to have significantly more acres of corn and soybeans to a certain degree with biodiesel. You go back to 2006 and 2007, I remember traveling around the states telling Oklahoma wheat producers, ‘You have got a $1.25 to $1.50 free increase in your price simply because of the corn industry and bean industry.’ The corn industry has to increase their acreage dramatically, and soybeans have got to come in there and protect their acres.” – Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discussing a decline in wheat acreage in an interview with Oklahoma Farm Report’s Ron Hays.

Grain Deal Talks Expected to Resume in Sochi

As reported by several news outlets this week, the much-anticipated meeting between Turkish and Russian presidents over the fate of the grain initiative will be held on Sept. 4 in the Russian resort city of Sochi. The top issue will be the resumption of the grain deal that allowed the export of more than 33 million tons of wheat, corn and other food products from Ukraine to the world markets through Turkish straits. Russia canceled it on July 17 as it could not transport its own products due to the sanctions. Red more here.

USDA: Weather Slows U.S. Spring Wheat Harvest

World-Grain.com cited a USDA report that noted the winter wheat crop was “largely in the bin” but the spring crop was just more than half harvested and progressing slowly due to weather delays. The 2023 US winter wheat harvest was 96% complete by Aug. 20, USDA said in the final aggregate winter wheat harvest update in its weekly Crop Progress report. That compared with 94% a year earlier and matched the five-year average for the date. States with winter wheat remaining in fields at that time included California (97% complete), Colorado (99%), Idaho (70%), Michigan (95%), Montana (78%), Nebraska (99%), South Dakota (97%) and Washington (87%). Read more here.

High Pasta Prices Could Set in As Canada’s Durum Crop Suffers

An Aug. 30 report by Reuters suggests pasta lovers must brace to pay even higher prices for their favorite dish, as drought in Canada and bad weather in Europe damages crops of durum wheat and reduces supplies available to flour millers and food companies. Some estimates released prior to the report release pointed to production falling below 4 MMT. Two upcoming estimates will lead to potential revisions to this data, with Statistics Canada to report official estimates for 2022-23 ending stocks on Sept. 8, followed by an updated production estimate on Sept. 14. Read more here.

Quality Survey Shows Reduced French Wheat Protein Levels

Updated quality results from the 2023 French soft wheat harvest showed the percentage of the crop meeting protein requirements for milling had dropped to 91% from an 93%, but remained above a five-year average of 87%, farm office FranceAgriMer said. The survey by was based on data representing 92% of the harvest, compared with 80% the previous week. It also showed that 69% of the crop had test weights above 76 kg per hectolitre (kg/hl), down from 74% the previous week and a five-year average of 79%. Read more here.

Breeding Wheat Plants with Better Starch

A team of UK researchers has figured out how low-quality starch grows in wheat. The discovery, published in The Plant Cell, could help breed plants with more control over their starch. As well as being an important nutritional source of carbohydrates, starch is a valuable ingredient in brewing, glue, paper, textiles, and construction materials. “We discovered that the ubiquitous enzyme, (PHS1) is crucial for the formation of B-type granules in wheat,” says lead author Dr Nitin Uttam Kamble, a postdoctoral scientist at the John Innes Centre, UK. “This is a scientific breakthrough … it shows that the A- and B-type granules of wheat form via different biochemical mechanisms. We can now use this knowledge to create variations in starch for different food and industrial applications.” Read more here.

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Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

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USW Vice President of Overseas Operations (left) meets a U.S. wheat customer from Taiwan (right) introduced by USW Taiwan Country Director Yi-I Huang during the 2023 USW North Asia Marketing Conference.

USW Vice President of Overseas Operations (left) meets a U.S. wheat customer from Taiwan (right) introduced by USW Taiwan Country Director Yi-I Huang during the 2023 USW North Asia Marketing Conference.

In an average year, buyers in Japan, South Korea and Taiwan import 20% of the U.S. wheat crop. It is an impressive statistic that speakers referenced more than a few times during the recent U.S. Wheat Associates (USW) North Asia Marketing Conference. 

The two-day gathering that drew wheat buyers from all three countries to Bali, Indonesia, served as an example of USW’s ability to showcase U.S. wheat quality and key components of the industry’s efficient and effective supply chain efficiently. 

Including, of course, the people who grow U.S. wheat. 

“As a wheat farmer and a new wheat commissioner, this is my first trip overseas, and it didn’t take long to see the bonds U.S. wheat has built in these three markets,” said David Brewer, an Oregon wheat farmer who recently joined the Oregon Wheat Commission 

Speakers Covered All Bases

Conference participants also included USW staff from all three countries, USDA officials, and state wheat commission staff. The speakers selected by USW shared updates on crop production, crop quality outlooks, new technologies, financial forecasts, transportation issues and insights into the global wheat market. 

USW President Vince Peterson pointed out that Japan, South Korea and Taiwan are three countries with separate cultures, industries and languages, yet they share a common interest in U.S. wheat.  

Oregon wheat farmer David Brewer (second from left) listens to speakers at the North Asia Marketing Conference.

Oregon wheat farmer David Brewer (second from left) listens to speakers at the North Asia Marketing Conference.

“Bringing buyers from each country together in one place at one time is a tremendous experience and builds camaraderie amongst the three countries that I think helps us to market wheat to them collectively,” Peterson explained. “Japan, Korea and Taiwan each have customers that we have worked with for decades. We established some of these offices in the 1950s, so we have 60 or 70 years of experience and history with them.” 

Customers Appreciate Information Sharing

Sang-Won Yong, an executive with Daehan Flour Mills in South Korea, expressed appreciation for USW’s ability to organize the conference. A long-time buyer of U.S. wheat, Yong found the opportunity to meet wheat industry people from the U.S. and flour millers from other countries in one place, at one time, both refreshing and encouraging. 

USW Vice President of Trade Policy Dalton Henry presents on new technologies in wheat production - a topic that attracted a lot of attention from wheat buyers from Japan, South Korea and Taiwan.

USW Vice President of Trade Policy Dalton Henry presents on new technologies in wheat production – a topic that attracted a lot of attention from wheat buyers from Japan, South Korea and Taiwan.

“Everyone at this conference was focused on the important things we deal with every day, and that is how to make our customers happy and how to keep our businesses going forward,” he said. “We all find U.S. wheat to be a big part of the formula to do what we do, to produce quality products for our customers. We’ve been able to rely on U.S. wheat farmers to produce the quality wheat we need.” 

Quality is Top of Mind

Shojiro Kubota, Managing Executive Officer at Nitto Fuji Flour Milling in Tokyo, said Japanese consumers expect quality products. Using U.S. wheat has helped keep his company’s customers happy, so he finds value in hearing about the current U.S. wheat crop and other issues that affect the ability to purchase it. 

“Things we learn from the speakers and presentations, and having conversations with those in the U.S. wheat industry is very helpful,” Kubota said. “The millers from each country may be looking for different types of wheat for different types of uses, but we have many of the same questions about importing wheat. It’s a great idea to bring all of us together.” 

(left to right) Japan Country Director Rick Nakano, South Korea Country Director Dong-Chan “Channy” Bae and Taiwan Country Director Yi-I Huang pause for a photo during the welcome reception at the 2023 USW North Asia Marketing Conference.

(left to right) Japan Country Director Rick Nakano, South Korea Country Director Dong-Chan “Channy” Bae and Taiwan Country Director Yi-I Huang pause for a photo during the welcome reception at the 2023 USW North Asia Marketing Conference.

Rick Nakano, Dong-Chan “Channy” Bae and Yi-I Huang – USW Country Directors from Japan, South Korea and Taiwan, respectively – each led groups of U.S. wheat customers to the conference, meeting individually with those customers to make sure all their questions were answered. 

Farmers Happy to Answer Questions

Brewer and USW Chairman Michael Peters had several questions posed to them about the U.S. wheat crop and overall production across all six classes of U.S. wheat. 

“I’ve actually had some of these buyers on my farm for trade team visits, and they were eager to hear about the crop situation back home,” said Brewer. “Seeing those same customers in their environment helps me understand how they make buying decisions.” 

One thing that became evident to Brewer over the two days is how all the U.S. wheat classes are utilized.  

“I’m a farmer from the northwest, but it makes me feel good to hear buyers from these important markets talking about wheat from Ohio, Texas, Kansas, Oklahoma and other states,” he said. “It reminds us that we are unified as farmers. When I get back home and have the chance to share what I learned in Asia, I will emphasize that our customers here really want to know what is available in the U.S. It’s all about the quality we produce.” 

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According to the U.S. Department of Agriculture, approximately 31% of U.S. exported wheat is moved by barge to export points in the Gulf of Mexico and the Pacific Northwest (PNW). Barging is an extremely safe, efficient, and competitive mode of transporting grain for export, contributing to our robust grain marketing system.

As key gateways for wheat exports, this article will explore recent barge freight trends on the Mississippi River (photo above) and Colombia Snake River System (CSRS), highlighting their effectiveness and providing updates about current issues.

Map of the U.S. shows the Mississippi River system, and the Columbia Snake River System to show where barging is important for U.S. wheat export logistics.

The Mississippi and the Columbia-Snake River systems are major transportation routes facilitating exports from the Gulf of Mexico and the PNW. Source: USDA/Agricultural Marketing Service/Transportation and Marketing Program/Transportation Economics Division.

Mississippi River Update

About 8% of all U.S. wheat moves on the Mississippi River system, bringing primarily soft red winter wheat (SRW) from growing regions in the eastern U.S. to export in the Gulf of Mexico via the Mississippi, Missouri, Illinois, and Ohio rivers. The Mississippi River system spans an immense geographic area, originating grain from as far north as Minnesota and as far east as Ohio and Illinois. Barges on the Mississippi River can carry 1,750 MT of grain, and a 15 barge tow can transport over 26,000 MT, the equivalent of 2 unit trains. Exports from the Gulf of Mexico account for 33% of U.S. wheat exports. Though wheat only accounts for 3% of Mississippi River barge movements, it is still an essential and efficient mode of transportation for U.S. wheat.

In the fall of 2022, low water levels on the lower Mississippi River slowed exports at ports on the Louisiana Gulf to their lowest level in 9 years. As a result, barge rates skyrocketed, and grain flows were restricted.

Monthly Downbound Grain Barge Rates

In October 2022, Mississippi River barge rates spiked to a record high of $2,092.83, 150% above the next highest price, due to low water levels and restricted barge flows Source: USDA Monthly Downbound Grain Barge Rates.

Since last fall, Mississippi River barge tariffs have normalized. However, according to the latest Grain Transportation Report, barge movements on the Mississippi River (Lock 27- Granite City, IL) are down 46% from last year and 72% below the three-year average. This decrease is attributed primarily to lower exports for all commodities (wheat, corn, and soybeans). Looking ahead, draft reductions in the lower Mississippi River may be a recurring issue as dryness in the Midwest persists.

this chart of barge movement on the Mississippi River show the downward trend in volumes seasonally and over the past several years.

Barge movements vary by season on the Mississippi River, but are down 46% from last year and 72% from the three-year average, driven primarily by a sharp decrease in grain exports. Weekly inspections for exported grain (wheat, corn, and soybeans) are down 47% from last year and 45% below the three-year average. Source: USDA Grain Transportation Report.

Columbia Snake River System

Shifting our focus to the PNW, the Columbia Snake River System (CSRS) accounts for 60% of all U.S. wheat exports via the deep-water draft ports on the Lower Columbia River. By barge alone, over 10% of all U.S. wheat exports move on the CSRS from as far inland as Lewiston, Idaho (360 miles). From an efficiency standpoint, according to the Pacific Northwest Waterway Association, barges on the CSRS can carry 3,500 MT of grain, and a four barge tow can transport over 14,000 MT, the equivalent of 1.5 unit trains and over 580 trucks.

From January 14 to March 29, 2024, an extended closure of the CSRS is scheduled to replace components at the John Day and McNary dams on the Columbia River and at the Lower Monumental, Little Goose, and Lower Granite dams on the Snake River. Routine maintenance assures the waterway remains a reliable mode of grain transportation and helps maintain the competitiveness of U.S. wheat. Similar to the Gulf of Mexico, grain exports from the PNW are down 71% from last year and 65% below the three-year average, subsequently impacting demand for barges.

Due to low export demand, grain exports from the PNW are down 71% from last year and 65% below the three-year average. Source: USDA FGIS Export Grain Inspections Data.

A Reliable System

U.S. Wheat Associates is committed to sharing transparent and pertinent information to customers about inland logistics issues, as domestic transportation makes up a significant portion of U.S. wheat export basis. Though barges only make up a small portion of U.S. inland logistics, barging helps ensure the U.S. remains the most reliable choice for world importers by complementing the use of Class I railroads and trucks. With diverse origination options and numerous modes of transportation, regardless of the class or export point, U.S. wheat is always available.

This is the first in a series of three articles about the efficient and reliable U.S. grain export transportation system. Future articles will focus on rail and ocean freight logistics.

By USW Market Analyst Tyllor Ledford.

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A business card to describe the jobs Art Schultheis fills in a typical year would be too big for any pocket.

“I drive a tractor and harvest with a combine – all the things people think a farmer does,” explained Schultheis, a fifth-generation farmer from Colton, Washington. “But behind the scenes I’m also a mechanic, I’m a bookkeeper, and, like most farmers, I have a whole long list of other jobs.”

Planning Ahead

On a late August afternoon, in a wheat field a dozen or so miles north of his home, Schultheis greeted a film crew (photo above) with a glance to the sky and a shrug. A soft rain had begun to fall, bringing that day’s harvest to a reluctant halt.

“I am not going to even try to predict it,” he announced to the film crew, while taking another glance upward. “But I think we may as well plan to get back at it tomorrow.”

Yet another job for Schultheis: planning strategist.

The film crew was commissioned by U.S. Wheat Associates (USW), which is collecting “Stories of Stewardship” from wheat farmers across the country to highlight their efforts to produce high-quality crop using sustainable practices.

In August, the 61-year-old Schultheis was harvesting his 40th wheat crop. His diversified operation typically grows hard red winter (HRW), soft white winter (SRW), hard red spring (HRS), and hard white spring wheat. The farm has also produced barley, garbanzo beans, lentils, Kentucky bluegrass seed, oats, canola, and alfalfa. There are also 10 beef cows to take care of.

Photo shows two men, farmers, standing next to each other and looking to the left side of the photo; in the background there is a tractor pulling a wagon through a golden wheat field.

Colton, Washington, farmers Art Schultheis, right, and his son Kyle Schultheis.

An Eye to the Future

Schultheis took over Diamond S Farms from his father more than three decades ago. With an eye to the future, his son Kyle has returned to the farm and is being mentored to one day take over all his father’s jobs. Bringing Kyle into the mix is part of the family’s approach to sustainability.

“To me, there are three parts to sustainability,” Schultheis explained. “Number one is I want to leave the land in better shape than when I started farming. Number two is my farm must be profitable. If you are not profitable, you are not sustainable. Number three is that you need a succession plan for your farm to continue to operate through generations.”

As the film crew set up the next morning to capture his story, Schultheis pointed out that sustainability is second nature to him and all other farmers.

“We have always cared for the land, but now we have tools that we never had decades ago,” he said. “We can do things today that we could not do in the past, and the soil keeps producing at higher and higher levels. One of my hopes for Kyle is that when I’m gone, he can stand here and say he learned things from me and makes the land even better than it will be once I call it quits.”

USW’s Stories of Stewardship series will be available for all to see and explore. It is expected to be of special interest to customers of U.S. wheat around the world.

Responsible as Possible

“I think consumers here in the United States and across the world are asking questions about where their food comes from,” said Schultheis. “On our farm, we do not raise commodities, we are raising food. And we need to be as responsible as possible because we know the end-consumer is making that connection between where food comes from and how it is produced. To be honest, it makes my job a lot more fun.”

And by his “job,” Schultheis means every single one of them.

 

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Three different countries, three different languages, three different cultures and three different sets of consumers. Yet flour millers from Japan, South Korea and Taiwan actually have something in common: They have a strong interest in U.S. wheat.

U.S. Wheat Associates (USW) invited wheat buyers from each country to Bali, Indonesia, August 28 and 29, 2023, for the 2023 USW North Asia Marketing Conference. The conference provides an opportunity for U.S. producers to meet their customers and share information about this year’s wheat crop. It also gives customers the chance to hear about each aspect of the U.S. wheat supply chain and learn about the global wheat market.

USW President Vince Peterson

Vince Peterson

“It is a very unique gathering because of the differences in the markets, but our staff in each of the participating offices is able to organize it in a way that brings wheat buyers together with everyone to share information and learn about all the advantages of buying U.S. wheat,” said USW President Vince Peterson. “In fact, you immediately notice a camaraderie as flour millers meet with farmers and others in the U.S. industry.”

The short video below captures some scenes as the conference opened on Aug. 28 in Bali.

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Attractive cash prices, a good agronomic fit, and excellent breeding and crop management have once again combined to help produce a large and high-quality U.S. soft red winter wheat crop in 2023.

Soft red winter (SRW) is grown over a wide area of the eastern United States that experienced generally good growing conditions in the 2023 crop year. This crop is very sound with high test weight and falling number values, large kernel size, good milling characteristics, and is relatively free of DON. Processors will find a versatile crop with good qualities for cookies, cakes, and crackers. With higher protein and good extensibility, the crop should also be valuable in blending for baking applications.

This image shows a map of the United States with soft red winter wheat production and regions from which samples were analyzed for quality.

Great Plains Analytical Laboratory, Kansas City, Mo., collected, tested, and analyzed 232 samples from elevators in 18 reporting areas across 11 states: 46 samples were from East Coast states and 186 from Gulf states.

The full SRW Quality Survey will be available soon online here. Buyers are encouraged to review their quality specifications and work with their local U.S. Wheat Associates (USW) representatives to ensure that purchases meet their expectations.

The Season in Review

USDA estimates the total SRW seeded area for 2023 harvest at 3.10 million hectares, up 12% seeded for the 2022 harvest and up 26% over the 5-year average, making this the most planted area since 2014.

Early development was good and much of the soft red winter growing area received plentiful moisture through the winter and spring with only Maryland seeing a decrease in soil moisture. Later in the season, mild temperatures and rainfall benefited critical kernel development.

Harvest began in mid-May and picked up pace in early-June with unusually dry conditions and below-average temperatures. Weather patterns changed by mid-June with widespread rain causing harvest delays in North Carolina, Maryland, and Ohio.

However, USDA estimates the 2023 SRW crop to be 12.0 MMT, up from both 9.2 MMT in 2022 and the 5-year average of 8.1 MMT, making this the largest SRW production in 9 years and highest yield on record.

 

2023 Crop Highlights

  • The overall average sample grade for the 2023 soft red winter harvest survey is U.S. No. 1 SRW; the Gulf average is U.S. No. 1 SRW, and East Coast is U.S. No. 2.
  • Test weight averages trended higher and indicate a sound crop with Composite average 60.3 lb/bu (79.3 kg/hl), Gulf average 60.4 lb/bu (79.5 kg/hl) and East Coast 59.6 lb/bu (78.4 kg/hl).
  • The wheat falling number overall average of 320 seconds is below 2022 but above the 5-year average and indicates there is very little sprout damage in the crop; lower East Coast average is due to rainfall at harvest.
  • Single kernel values reflect a consistent crop. Kernels are harder, heavier, and larger than last year’s and 5-year averages.
  • Vomitoxin (DON) averages are well below the USDA threshold of 2.0 ppm and indicate the sampled crop is relatively free of DON.
  • Amylograph data indicate suitable starch characteristics for batter-based products. The 2023 averages for Composite (655 BU) and Gulf (709 BU) are very sound, reinforce the high falling numbers, and indicate very low levels of amylase activity. The East Coast value of 401 BU reflects this year’s slightly lower falling number values.
  • Solvent Retention Capacity (SRC) values indicate excellent quality for all typical applications. Sucrose values indicate cookies and crackers will benefit from reduced bake time and should not experience any excess water-holding issues.
  • Dough properties suggest this crop is typical for SRW although weaker than the 5-year average
  • Alveograph data indicate a crop that is less extensible, more resistant/tenacious than last year and is suitable for blending applications: P values: Composite (51 mm), East Coast (50 mm) and Gulf (52 mm); L values: Composite (57 mm), East Coast (56 mm) and Gulf (57 mm).
  • Cookie diameter values are consistent across the soft red winter crop (9.0 cm) and are higher than last year but similar to the 5-year average, indicating this crop has adequate to good spreadability.
  • Loaf volume averages are lower than last year and 5-year averages, which is consistent with alveograph data, and indicate this crop is suitable for blending: Composite (602 cc), East Coast (587 cc) and Gulf (606 cc).

By USW Vice President of Programs Erica Oakley