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Food Aid: More Important Now Than Ever

By Shelbi Knisley, USW Director of Trade Policy 

The COVID-19 pandemic is threatening to push an estimated 71 to 140 million people into extreme poverty according to studies by the United Nations and the International Food Policy Research Institute (IFPRI). According to the IFPRI study, “a global health crisis could thus cause a major food crisis—unless steps are taken to provide unprecedented economic emergency relief.”

U.S. wheat farmers, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) have been partners in U.S. international food assistance programs for more than 50 years. They have encouraged strategies that include the full range of options to help countries attain lasting and sustainable food security. And U.S. support of food aid programs is more important now than ever.

The pandemic threatens the people who were already severely suffering from food insecurity, especially in areas of Africa and Asia. The USDA Foreign Agricultural Service (FAS) and United States Agency for International Development (USAID) food assistance programs, sustained by U.S. commodities, are ideally prepared to help these countries in extreme need.

There are three major U.S. food aid programs. USDA administers Food for Progress and McGovern-Dole Food for Education. Food for Progress supports countries in modernizing and strengthening their agricultural industry, while McGovern-Dole supports education and food security in low income and food insecure countries. USAID’s program Food for Peace is under Title II of the Food for Peace Act, which is an emergency feeding program.

Wheat is an important component of these programs. Some years the U.S. government donates enough wheat for feeding programs and monetization to count as a top-ten U.S. wheat export market. In marking year 2019/20, for example, U.S. wheat accounted for more than 900,000 metric tons (MT) of food aid donations through USDA and USAID programs, and represented almost four percent of U.S. commercial shipments. This is a source of pride to U.S. wheat farmers.

Much of this wheat was distributed under USAID’s Food for Peace program. The largest recipients of this program, over about the last 5 years, are Ethiopia and Yemen, which has received soft white wheat as the country continues to suffer under civil war.

In August 2018, the World Food Programme (WFP) and USAID hosted an event in Portland, Ore., to bring attention to the need for food in Yemen and the ongoing U.S. efforts to provide aid. The media event was held across the Willamette River from an export elevator where government-purchased SW wheat was being loaded into an bulk container ship bound for Yemen.

With food insecurity on the rise, driven by the current pandemic, it is even more important to ensure food is being provided to those in need. Not only is food aid important in helping to feed a growing global population but also aids in advancing developing countries’ agricultural industries through the support of U.S. commodities.

USW believes it is important to engage our farmers and staff as much as possible in these important food aid programs. In the fall of 2019 USW organized a food aid trip to Tanzania and Kenya which included members and staff from the rice, sorghum, and wheat industries. Trips such as this allow for U.S. growers to see first-hand how their commodities are contributing to these programs and to share their experiences and the good work the United States is doing for others in need.

Farmers representing USW, NAWG, U.S. Grains Council (USGC), and USA Rice spent 14 days in Kenya and Tanzania in November 2019 to see how donation programs help improve lives. The trip was funded by USDA’s Foreign Agricultural Service export market development programs.

The U.S. agricultural industry, including the wheat farmers USW represents, stand ready to continue providing food and economic opportunity through monetization to the world’s most vulnerable during these uncertain

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “There’s a future generation of farmers out there that will carry this through and have that passion that they learned from their family to love the soil and have that ambition to grow good crops.” — Michael Peters, Okarche, Okla., wheat farmer and U.S. Wheat Associates (USW) 2020/21 Secretary-Treasurer

Congratulations to Janice Cooper, Executive Director, Wheat Marketing Center on her appointment to serve on the Agricultural Marketing Service’s (AMS) Grain Inspection Advisory Committee beginning November 1, 2020. In addition, Steve Wirsching, USW Vice President and Director, West Coast Office, was appointed to the committee as an Alternate. The Advisory Committee represents the interests of all segments of the U.S. grain industry from producer to exporter. The committee is comprised of 15 members including grain processors, merchandisers, handlers, exporters, consumers, grain inspection agencies and scientists.

NAWG Blog: The 2020 Election: How the Next Presidential Administration Could Shape Agricultural Policy. National Association of Wheat Growers (NAWG) Intern Michelle Sutton has written a blog post comparing President Donald Trump’s and Former Vice President Joe Biden’s positions on U.S. agricultural policy. The blog post can be found on the National Wheat Foundation’s blog page here: https://bit.ly/3hUeI7A

Stripe Rust Resistant Wheat Varieties. Many farmers would prefer to grow wheat varieties that resist stripe rust disease. To help develop such varieties, scientists from the USDA Agricultural Research Service (USDA-ARS) and Washington State University recently studied stripe rust resistance genes in 616 spring wheat varieties using the genome-wide association study approach. They used the GMS platform recently developed by the USDA-ARS Wheat Health, Genetics, and Quality Research Unit, which reduces the cost greatly compared to other methods. Read more at https://phys.org/news/2020-09-wheat-varieties-resist-destructive-stripe.html

The 2020 Borlaug Dialogues, sponsored by the World Food Prize Foundation, will be held virtually Oct. 12 to 16, 2020, and “will examine four major vulnerabilities or “cracks” in food systems: Climate Change, Finance & Investment, Nutrition, and Equity & Access. These concentrations will focus on actions and outcomes that reflect threats and opportunities in strengthening food systems resilience.” To learn more and register, visit https://www.worldfoodprize.org/en/borlaug_dialogue/2020_borlaug_dialogue/  #foodprize20

The CGIAR Research Program on Wheat (WHEAT) recently shared insights on the impacts and achievements of our vital partnerships, and recommendations to continue “delivering local solutions with a global perspective” to sustainably meet the growing global demand for wheat. WHEAT is a CGIAR Research Program launched in 2012 and led by the International Maize and Wheat Improvement Center (CIMMYT). Read more here: https://wheat.org/a-track-record-of-delivering-local-solutions-with-a-global-perspective-review-confirms-impact-and-importance-of-wheat-research/

IGP Institute Schedules New Flour Milling Courses. IGP Institute courses in this curriculum area cover aspects of managing the flour milling process, including technical milling, management practices, maintenance, quality control and food safety, and HACCP. Buhler-KSU courses provide milling courses on a variety of topics including soft wheat milling, expert milling, and executive milling. Some of these courses are offered in Spanish. Visit the IGP Institute website at https://www.grains.k-state.edu/igp/on-site-training/flour-milling/ to learn more.

Subscribe to USW Reports. USW publishes a variety of reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, the weekly Price Report and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online. Visit our Facebook page at 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 more on LinkedIn.

 

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Latest USDA Report Adjusts Earlier U.S. Wheat Production Estimates

By Claire Hutchins, U.S. Wheat Associates Market Analyst

On Sept. 30, USDA released its latest Small Grains Summary in which its estimate of 2020 U.S wheat production fell to 49.7 million metric tons (MMT). That is down 5 percent from last year and 8 percent below the 5-year average due to reduced yields and lower harvested area. In its report, wheat production, yield and harvested area estimates all fell from the USDA’s Sept. 11 World Agricultural Supply and Demand Estimates (WASDE) report.

While production was down this year, the harvest volume coupled with significant carry-in stocks of 28.4 MMT ensure that a reliable supply of U.S. wheat for 2020/21 remains.

Here is a look at 2020/21 U.S. wheat production by class.

Source: USDA 2020 Small Grains Summary

Hard Red Winter (HRW). According to USDA, total HRW planted area fell 4 percent from last year to 21.5 million acres (8.70 million hectares). Significant yield reductions in Colorado and Kansas due to extreme dryness added pressure to overall U.S. HRW production of 17.9 MMT, down 21 percent from last year and the 5-year average. Though dryness across the Southern Plains challenged producers during the growing season, it made for a quick 2020 harvest with minimal issues. Harvest sample data shows the average HRW protein level at 11.9 percent (on a 12 percent moisture basis), 5 percent more than last year and 2 percent more than the 5-year average. The crop’s moisture level is down 5 percent from last year at 10.9 percent. The average test weight is up significantly on the year at 61.7 lb/bu (81.1 kg/hl), which is 2 percent more than the 5-year average.

Hard Red Spring (HRS). USDA estimates total HRS planted area for harvest in 2020 fell 4 percent from last year to 11.5 million acres (4.66 million hectares), 2 percent below the 5-year average due to overly wet field conditions at planting and concerns over farmer profitability, specifically in eastern North Dakota and northwestern Minnesota. North Dakota HRS planted area fell 15 percent from last year to 5.70 million acres (2.31 million hectares) and Minnesota planted area fell slightly from 2019 to 1.43 million acres (579,000 hectares). USDA estimates total HRS production will reach 14.4 MMT, up 1 percent from last year and 4 percent more than the 5-year average. As of Sept. 25, 94 percent of the HRS crop was in the bin. Harvest data shows stable average HRS protein levels at 14.4 percent and a higher average DHV content of 63.0, up 21 percent from last year on significantly more favorable harvest conditions. The average HRS test weight is up 1 percent from last year at 61.6 lb/bu (81.0 kg/hl).

Soft Red Winter (SRW). USDA adjusted total area planted to SRW in fall 2019 for harvest in 2020 up 8 percent on the year to 5.63 million acres (2.28 million hectares) as producers returned to a trendline planting pattern following extremely poor marketing conditions in fall 2018. USDA estimates total SRW production in 2020 reached 7.60 MMT, up 17 percent from the year prior. Favorable weather conditions helped farmers with a rapid harvest. Overall, the 2020 SRW crop is sound and features very good quality characteristics. The 2020 USW SRW Crop Quality Report is available online. 

White Wheat (Soft White, Club and Hard White). White wheat planted area, which includes more than 99 percent soft white (SW), totaled 4.12 million acres (1.67 million hectares) for harvest in 2020, in line with last year and the 5-year average. Significantly higher yields in Washington and Idaho boosted total U.S. white wheat production to 7.89 MMT, up 6 percent from last year and 11 percent more than the 5-year average. Dry conditions during harvest accelerated farmer progress through the late summer and autumn. When compared to last year, this year’s soft white (SW) harvest samples show a higher average test weight at 61.9 lb/bu (81.4 kg/hl) and a higher average falling number value of 323 seconds. The average SW moisture level is down 7 percent from last year at 9.20 percent and the average protein level is down from last year and the 5-year average at 9.80 percent.

Durum. Strong market prices at planting time supported total U.S. durum planted area in 2020 at 1.68 million acres (680,000 hectares), up 25 percent from last year. Significantly higher planted area more than offset reduced average yields. USDA expects total U.S. durum production will reach 1.87 MMT in 2020, up 27 percent on the year. As of Sept. 25, durum harvest stood at 91 percent and 70 percent of the expected samples had been tested. Early sample data shows slightly higher average protein levels than last year at 13.7 percent. The average test weight is up 2 percent from last year and the 5-year average at 62.0 lb/bu (80.7 kg/hl).

 

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Dependable People: A Spotlight on the Texas Wheat Producers Board

For 40 years, U.S. wheat farmers have supported U.S. Wheat Associates’ (USW) efforts to work directly with buyers and promote their six classes of wheat. Their contributions to state wheat commissions, who in turn contribute a portion of those funds to USW, qualifies USW to apply for export market development funds managed by USDA’s Foreign Agricultural Service. Currently, 17 state wheat commissions are USW members and this series highlights those partnerships and the work being done state-by-state to provide unmatched service. Behind the world’s most reliable supply of wheat are the world’s most dependable people – and that includes our state wheat commissions.

Member: Texas Wheat Producers Board
Member of USW since 1980

Location: Amarillo, Tex.
Classes of wheat grown: Hard Red Winter (HRW) and Soft Red Winter (SRW)

The Texas Wheat Producers Board (TWPB) was established in 1971 to provide support and funding for wheat research, education and market development. The fifteen-person board, which operates on a two-cent-per-bushel checkoff fund, is committed to ensuring the competitiveness of Texas wheat in domestic and international markets. These goals are accomplished through unique partnerships with U.S. Wheat Associates, and Plains Grains, Inc. Current research shows that wheat growers receive a $23 dollar return for every dollar invested in overseas marketing efforts.

Jack Norman served on the Texas Wheat Producers Board for 30 years and attended many USW events in that time. In 1998, he traveled with USW to Morocco, Kenya and Egypt. Jack retired from the Texas Wheat board last year.

Why is export market development important to Texas wheat farmers and why do they continue to support USW and its activities?

More than 50 percent of the wheat produced in Texas is exported every year. The TWPB has made it a priority to develop and maintain strong relationships with overseas customers to ensure the profitability of high-quality Texas HRW and SRW wheat. We are uniquely located geographically. The ports along the Texas coast, most prominently the Port of Houston, move over one-third of the wheat exported by the United States. Our location is highly accessible for Mexico, the largest importer of Texas wheat and consistently one of the top importers of U.S. wheat overall. It is imperative to our mission that we work with USW to promote wheat, expand market access and maintain good relationships with overseas customers. We believe the work done by USW will not only help us achieve our goals but also create a better future for all wheat producers.

How have Texas wheat farmers recently connected with overseas customers?

TWPB members have a long history of taking part in overseas trade mission trips, as well as hosting international trade delegations in Texas, and we value the experiences built through meeting customers face-to-face. Although the global pandemic put on hold on these meetings, we have used virtual platforms to connect with vital markets. In June, we joined USW for a virtual meeting with African wheat buyers, providing background on how wheat is produced in Texas and sharing updates on the 2020 wheat harvest. In July, our staff participated in another virtual meeting with Chilean flour milling executives and worked with Colorado Wheat staff to give an overview of 2020 HRW wheat quality. Both these virtual meetings gave us the opportunity to discuss the importance of Texas in the wheat production cycle, from the development of new varieties to the export of grain from our ports, which will help carry out our mission to increase demand of Texas-grown wheat.

A USW Brazilian Trade Delegation in College Station, Texas, in 2019, after a tour of the Texas A&M wheat breeding and research labs.

What is happening lately in Texas that overseas customers should know about?

The TWPB has always put a major focus on research. Based on the feedback from overseas markets, we have invested in projects aimed at enhancing end-use quality in order to produce a product with more functionality for our customers. Last year, our state researchers released two new winter wheat varieties that performed well with fewer inputs, decreasing the financial burden on farmers, while demonstrating exceptional milling and baking characteristics. Because of this research, we can supply a high-quality wheat without impacting the cost.

The board has also been active in trade policy. We have actively engaged with U.S. government officials, including the Office of the United States Trade Representative (USTR), to promote expansion of trade access and avoid market disruption due to tariff implementation. It is our priority to provide overseas customers with a high-quality wheat that is also affordable, and we will continue to work with USW to promote favorable trade agreements.

Learn more about the Texas Wheat Producers Board on its website here and on Facebook and Twitter.

 

 

 

TWPB sponsored a Texas A&M AgriLife Research wheat breeder, Dr. Jackie Rudd, on his trip to the 2019 USW Breeders Team to Latin America. He attended in order to connect with buyers on their quality needs and he has implemented their feedback directly into the Texas breeding program.

In 2015, a delegation of Texas Wheat representatives, including current USW board member Ken Davis (middle), traveled to Cuba for a trade alliance meeting.

A 2018 USW Sub-Saharan African Trade Delegation in Houston at an export terminal elevator.

 

 

 

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Desert Durum® Continues to Deliver Consistently Excellent Quality

The 2020 Desert Durum® crop will again deliver the valuable milling, semolina and pasta quality traits that customers have learned to expect and appreciate.

Desert Durum® is a registered certification mark owned jointly by the Arizona Grain Research and Promotion Council (AGRPC) and the California Wheat Commission (CWC). The mark certifies or is intended to certify that grain so named is at least 90 percent wheat grain produced under irrigation in the desert valleys and lowlands of Arizona or California.

Before providing details on the new crop Desert Durum® quality, here is a look back by AGRPC Executive Director Allan B. Simons at how this unique and valuable commodity evolved into the identity preserved product it is today.

Historical Perspective

Arizona and California farmers grew durum wheat widely in the decades before 1980. However, the varieties available at the time generally possessed such mediocre milling and semolina flour qualities that this “desert durum” suffered a rather poor reputation among both domestic and foreign semolina millers and pasta makers. Therefore, much of this production was consigned to livestock feed.

Somewhat better quality durum varieties were being grown and even exported by the early 1980s. However, a cross between several northern durum varieties and two high-producing desert varieties, performed by a private cereal breeding firm in 1976 serendipitously produced a line possessing such superior color and pasta quality traits that it was introduced to a major Italian pasta company in 1980/81. The Italian firm began importing this durum, first in containers before moving to cargo ship holds. The variety was awarded a plant variety protection certificate in 1982 and occupied significant crop acreage in Arizona and the Imperial Valley of California by 1983. This variety, with its very desirable qualities, represented the first in a long and continuing line of high-quality durum varieties adapted to the southwestern U.S. deserts now known as Desert Durum®. These varieties are developed and released by Arizona’s private breeding programs to be sold both domestically and overseas.

Arizona Desert Durum® variety trial plots.

About half of annual Desert Durum® production in Arizona and California has been exported for many years, with Italy as the perennial leading export destination. One reason for Italy’s continued purchase of Desert Durum® is its valued semolina quality traits, allowing Italian pasta makers to maintain quality standards as they deal with typically variable grain quality from other sources.

Arizona wheat growers possess very little grain storage capability, so most of the annual Desert Durum® crop is grown to be “identity preserved,” a program by which the grower plants certified seed purchased from the grain handler that will eventually purchase the crop. The grain crops are harvested, delivered and stored by variety for future shipment to fill existing or future customer orders. Also, the handlers continually remind growers of the critical need to maintain production practices needed to achieve the expected quality standards for Desert Durum®. Grain handler representatives annually discuss varietal traits, production conditions, prices, shipping realities and other factors with customers. They also work with U.S. Wheat Associates (USW) representatives to support and inform potential Desert Durum® buyers.

Sustainability Metrics

Some domestic and overseas customers of Desert Durum® have adopted certain “sustainability metrics” for their grain purchases that tend to cast an unfavorable reputation on small grains production in some environments. One of their negative metrics determines that wheat grown with substantial irrigation possesses a relatively high “water footprint,” defined as the quantity of water needed to produce a unit of grain.

The AGRPC recently commissioned a University of Arizona study that reviewed a wide range of the topic’s literature and production practices and environments that influence the metric. The study concluded that Arizona’s durum wheat production, as currently practiced, has a water footprint that is lower to much lower than evidenced in many other durum production regions. Furthermore, the report observes that the water footprint values stated or calculated for durum wheat production under Arizona’s conditions are over-stated on many sustainability websites. The report can be accessed on the following website under “2015 Project Reports”: https://agriculture.az.gov/arizona-grain-research-and-promotion-council-previously-funded-research-projects.

2020 Crop Quality

Desert Durum® crops in both Arizona and Southern California are grown under weather conditions and management practices that promote consistently favorable grain, milling, and semolina traits. These crops are seldom negatively affected by adverse weather events. The result is grain of consistently large low moisture kernels possessing very high hard amber durum counts and which yield high semolina extraction rates.

Desert Durum® production acreage in 2020 was somewhat greater than in 2019. The combined results of Desert Durum® surveys conducted by the AGRPC and CWC reveals the following crop data. The average grade is No. 1 Hard Amber Durum (HAD). Test weight is 62.3 lb/bu (81.1 kg/hl). The average hard vitreous amber kernel content (HVAC) is 99.0%, a high average typical of Desert Durum®. Average damaged kernels are 0.2% and total defects are 0.6%. Desert Durum® is characterized by its low kernel moisture content and this year’s average is 6.9%. Protein content average is 14.5% (12% mb).

Semolina and Processing Data. The semolina extraction rate average across varieties is 71.1%. The semolina b* value is 32.7, higher than 2019 b* value of 29.2. Wet gluten is 34.7% and gluten index is 87. Semolina Mixograph score is 7 and Alveograph W value is 294 (10-4 J), both of which indicate high strength. Pasta color b* value is 43 and score is 9.6. Pasta cooked firmness is 7.4, higher than 2019.

Whole wheat durum pasta.

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Philippines Government Extends Anti-Dumping Duties on Imported Turkish Flour

By Joe Sowers, USW Regional Vice President for Philippines and Korea

U.S. Wheat Associates (USW) is very pleased that the Tariff Commission of the Republic of the Philippines has extended anti-dumping duties on imports of wheat flour originating and exported from the Republic of Turkey until 2023. The commission’s ruling, announced Sept. 9, 2020, extended anti-dumping duties that were first imposed in 2014 after PAFMIL, the Philippine Association of Flour Millers, Inc., proved that Turkish flour imports threatened to cause material injury to the domestic milling industry. The decision marks the culmination of a decade-long effort by the Philippine flour industry to deter Turkey’s unfair trade practices and secure a fair and competitive market for wheat and flour trade.

USW and U.S. officials have been aware for many years that the Turkish government employs a complex, inward processing scheme that creates incentives for its milling industry to export flour regardless of price, distorting and disrupting flour markets around the world. In making its original case to the Philippine Tariff Commission, PAFMIL argued that the landed cost of Turkish flour was much lower than imported flour from other countries, lower than the prices of flour produced by the Philippine industry and, indeed, well below flour prices in Turkey. USW provided significant information on relative costs and other factors that supported PAFMIL’s case.

In 2014, anti-dumping duties of up to 16.19% were imposed on Turkish flour. Combined with the MFN tariff rate of 7 percent, the duties were enough to reduce imports of Turkish flour by more than 70 percent and allow the Philippine milling industry to increase production of flour needed to make high-quality Philippine wheat food products. The growth in demand for locally produced flour allowed mills to expand and helped smaller and independent Philippine flour milling companies to enter the growing market.

U.S. wheat farmers, who have had representation in the Philippines for 59 years, will also see benefits from PAFMIL’s effort. The Philippines is currently the world’s third largest wheat importer, with demand for wheat flour and milling wheat nearly doubling in the last decade. Its expanding population, coupled with increasing per capita income, has contributed to a surge in consumption of wheat-based products, especially bread, noodles, biscuits and cakes. The Philippine milling industry purchases nearly all its milling wheat from the United States for its quality and consistency. The impact of PAFMIL’s effort is clear with imports of U.S. hard red spring (HRS), soft white (SW) and hard red winter (HRW) wheat rising from 2.16 million metric tons (MMT) in marketing year 2015/16 to 3.58 MMT in 2019/20.

Source: USDA

 

Source: USDA

However, the original tariffs were set to expire at the end of 2019 and PAFMIL’s request for extension had to make the case that ending the tariffs would encourage Turkish exporters to target the Philippines again, increasing exports through their established dumping practices and, in turn, resume its threat to the Philippine milling industry.

PAFMIL’s successful petition to the Tariff Commission stated: “Once the duty is lifted, Turkish flour will come in at even lower prices and cause damage to the local industry. Extension of the anti-dumping duty will help these emerging independent Philippine flour millers to establish themselves and even expand such that the needs of the Philippine market for flour will be fully addressed.” After finding that Turkish exporters continued to dump flour in the Philippines during the period of investigation and would likely resume large scale exports should the duties be lifted, the Tariff Commission extended the anti-dumping duties for another three years, in fact increasing the top rate to 29.57 percent.

As an organization that believes in the value of a trade environment in which the participants compete fairly and openly, USW was happy to support PAFMIL’s request to reinstate the anti-dumping duties. And we were humbled by a recent letter from PAFMIL Executive Director Ric Pinca to our organization:

“I write to thank you for the support and encouragement the U.S. Wheat Associates extended … in our campaign for fair trade against the Turkish government and its wheat flour milling industry. It was a difficult and uphill fight, but we had the truth and your support behind us. With these, we never wavered in our confidence and we have been rewarded with a favorable ruling by the Philippine Tariff Commission … We couldn’t have gained this victory without your unceasing support, for which we are deeply appreciative and grateful.”

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Stories from the Wheat Farm – A Passion for the Land in Oklahoma

U.S. wheat farm families grow six distinct classes of wheat across the diverse landscape of the United States. Those farmers take great care in producing the highest quality wheat in the most sustainable ways possible to honor their family legacies and to ensure greater value for their customers at home and abroad. Behind the world’s most reliable supply of wheat are the world’s most dependable people.

The Peters Family: Peters Farms is a family-owned operation that was started when Michael Peters’ great-great-grandfather homesteaded a piece of land in central Oklahoma in the 1880s. Today, Michael farms with his father, Fred Peters, and his son Tyler. They grow hard red winter (HRW) wheat and graze cattle on some of that crop over the late fall and winter. Linda Peters, Michael’s wife, is a teacher and church musician who remains an active participant in the farm operations.

Location: Okarche, Okla.
Classes of Wheat Grown:  Hard Red Winter (HRW)
Leadership: Michael Peters: 2020/21 Secretary/Treasurer, U.S. Wheat Associates; Commissioner, Oklahoma Wheat Commission (OWC); Chair, USW Audit Committee; Past Chair, USW Wheat Quality Committee; member of the USW and National Association of Wheat Growers Joint International Trade Committee; Past President, St. John’s Lutheran Church; Past President, CHS Western Oklahoma Cooperative; member of Okarche Rural Fire Fighters’ Association Board.

View other videos and stories in this “Stories from the Wheat Farm” series:

The Next Generation in Kansas
Loving the Work in Ohio
Committed to Stewardship in Washington
Living with Purpose in North Dakota
Committed to Wheat Quality in Oregon
Embracing the Agricultural Lifestyle in Montana

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “[It has been] an immense honor to represent the people of the 11th district of Texas in Congress for the past 16 years. [I am] humbled [by] witnessing the hard work of Americans to feed, clothe and fuel the world and used it to help fight for America’s farmers, ranchers and the entire agriculture industry in the decisions that affect their lives and future generations.” – Former House Agriculture Committee Chairman Michael Conaway, R-Texas, at the ceremony unveiling his official Chairman’s portrait for the House of Representatives’ art collection.

Vince Peterson Talks Trade, COVID-19 and more on Episode 195 of the “Wheat All About It!” podcast produced this week by the Washington Grain Commission (WGC). WGC Director of Communications Scott Yates talked to USW President Peterson about the Phase One China deal, the bi-lateral trade deal with Japan and the USMCA treaty. A second episode with Peterson will be posted next week. 

Grain Craft Relocates to the Kansas Wheat Innovation Center. On Sept. 10, Grain Craft announced plans to relocate its corporate laboratory to the Kansas Wheat Innovation Center in Manhattan, Kan., in 2021. The laboratory will be housed in newly finished space within the innovation center, which is located on the Kansas State University Campus. Grain Craft said the move is consistent with the company’s commitment to enhancing wheat quality as well as to flour quality and consistency and to “ongoing exploration of innovation activities.” Read the full announcement here.

Idaho Wheat Commission (IWC) Plans New HQ. The IWC plans to replace the building it owns near the state Capitol building in downtown Boise. The commission since 2003 has owned a 7,500-square-foot building with a partial second story. IWC aims to construct a three-story, 27,300-square-foot building that it hopes to be a central hub for many of the state’s agricultural organizations. Former USW colleague Casey Chumrau is the IWC Executive Director. Read more here.

Golden State Grains Community. The California Wheat Commission (CWC) is the prime mover behind a new “Golden State Grains” online community of participants in California’s grain economy. Golden State Grains is designed to be an innovative and sustainable marketplace for California grown and processed grain. In addition, this web tool is intended to bring all participants together to support production practices that improve the environment, increase profitability and sustainability, and provide food that improves human health. Find out more about Golden State Grains here.

NAWG Leads on Science Behind Glyphosate. Writing in a recent edition of “Agri-Pulse,” National Association of Wheat Growers (NAWG) President Dave Milligan detailed the effort of NAWG and top agricultural groups across the country to fight an unjustified California law that would have forced food manufacturers to put a warning label on products made from agricultural products that may have been treated with the herbicide glyphosate. NAWG and the other organizations cited the risk to the national agricultural economy and sustainable wheat production that would result from the loss of glyphosate as a valuable farming tool, as well as confusion among consumers when glyphosate has undergone decades of regulatory and safety review.

Subscribe to USW Reports. USW publishes a variety of reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, the weekly Price Report and the weekly Harvest Report (available May to October). Subscribe here. 

Follow USW Online. Visit our Facebook page at 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 more on LinkedIn.

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Deadly Wildfires, Smoky Air Has Not Interrupted U.S. Wheat Exports

By Michael Anderson, USW Assistant Director, West Coast Office

For the past several days, many wildfires across the western United States have left devastating damage and loss of life. Across the Pacific Northwest. Unusually high winds on Sept. 7 dramatically expanded the fires in Washington state and Oregon. While many of the fires have been contained, the smoke has caused dangerously high levels of air pollution over the entire region.

Despite the choking smoke and destructive force of the blazes, damage to the U.S. wheat crop and infrastructure has been limited. Export facilities and wheat export logistics are still operating as usual. The export facilities in the Columbia River system continue to operate normally and without delay.

Smoke from massive wildfires obscures the familiar view of a vessel being loaded across the Willamette River from USW’s West Coast Office in Portland, Ore.

 

While there were no delays in vessel loading, sadly, fires in Eastern Washington state ignited recently harvested wheat piles next to the Pine City Grain Elevator south of Spokane. Rural communities in both Washington and Oregon have been heavily impacted. Some wheat fields in both Oregon and Washington received some low-level fire damage but much of the crop was already harvested. Far worse, the fires have killed many people.

Low visibility has caused barges to limit the amount of wheat they can carry west to Portland, but the barge companies are accustomed to such hazards as limited visibility caused by fog is common in the Pacific Northwest.

Smoke is expected to continue expanding east across the continent with haze reported as far east as New York, N.Y., and the Arlington, Va., headquarters of U.S. Wheat Associates (USW) nearly 3,000 miles away.

Everyone at USW shares concerns about the people who grow and deliver U.S. wheat and our colleagues in the Pacific Northwest. A change in the weather pattern that will help end this natural disaster is very much needed.

Photo at top by Bongil Lee.

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2020 Global Wheat Harvest Update

By Claire Hutchins, U.S. Wheat Associates Market Analyst

As the 2020 wheat harvest nears its end in the Northern Hemisphere, U.S. Wheat Associates (USW) surveyed industry sources to assess the global harvest situation.

United States. The 2020 U.S. hard red winter (HRW) and soft red winter (SRW) harvests are officially complete and preparations for the 2021 crop are now underway. The Pacific Northwest (PNW) soft white (SW) harvest made strong progress last week on favorable field conditions. Farmers in Washington have harvested 95% of the expected SW crop. Idaho’s SW crop is 99% harvested and Oregon’s SW harvest is now complete.

Warmer weather next week is expected to push spring wheat harvest nearly to its end across the Northern Plains.

USDA forecasts U.S. wheat production in 2020/21 will total 50.0 million metric tons (MMT), down 4 percent from last year on reduced planted area and lower average yields. Total U.S. wheat exports are expected to reach 26.5 MMT, up 1 percent from last year and 5 percent more than the 5-year average, if realized.

Click here to read more about the 2020 U.S. wheat harvest.

Canada. Canada is set to reach its second-highest level of wheat production in more than a century.

“The projected increase in wheat area is largely attributable to the durum wheat and winter wheat area remaining after winterkill, which offset the decrease in spring wheat area,” said Statistics Canada (Statscan) on Aug. 31.

USDA expects total Canadian wheat production will reach 36.0 MMT, up 11 percent from last year and 16 percent more than the 5-year average. Total wheat harvested area at 9.9 million hectares (24.5 million acres), is up 2 percent from last year and 5 percent more than the 5-year average.

In Saskatchewan, Canada’s largest wheat producing province, as of Sept. 8, official data showed 32 percent of spring wheat in the bin, the durum harvest at 62 percent complete and winter wheat at 99 percent harvested.

In Alberta, the second-largest wheat producing province in Canada, as of Sept. 8, spring wheat is 13 percent harvested, durum is 58 percent complete and winter wheat is 92 percent harvested. Recent frosts have been reported, but it is too early to determine if there was any crop damage as a result, said Alberta’s Department of Agriculture and Forestry.

This year, USDA forecasts total Canadian wheat exports will reach 25.0 MMT, the highest in more than 10 years.

Russia. According the Russia’s Ministry of Agriculture, Russian farmers have harvested 78.8 MMT of wheat as of Sept. 9, 24% more than this time last year. The average yield is up slightly this year at 48.0 bu/acre (3.23 MT/ha). Increased harvested area is expected to augment increased average yields. USDA predicts Russian wheat harvested area will jump 4 percent from last year to 28.3 million hectares (69.9 million acres), 6 percent more than the 5-year average. SovEcon, a Russian agriculture consultancy, increased the country’s wheat production forecast from 82.6 MMT last month to 83.3 MMT on Sept. 10.

USDA’s estimate for Russian wheat output differs from SovEcon’s report. USDA did not change its forecast of 78.0 MMT in 2020, unchanged from the August forecast, but 6 percent more than last year, if realized. USDA forecasts Russian wheat exports in 2020/21 will reach 37.5 MMT, up 9 percent from last year and 14 percent more than the 5-year average.

Ukraine’s 2020 wheat harvest ended on Sept. 7. The country’s Ministry of Agriculture reported final production at 26.9 MMT, in line with USDA’s estimate, and down 7 percent on the year as continued dryness through the growing season challenged average yields. A 3 percent decrease in harvested area from last year, at 6.80 million hectares (16.8 million acres), pressured overall production. USDA predicts total Ukrainian wheat exports will total 18.0 MMT in 2019/20, down 14 percent from last year’s record, but in line with the 5-year average, if realized.

European Union (EU). According to Stratégie Grains (SG), a European agriculture consultancy, estimated soft (non-durum) wheat production in the EU (including the United Kingdom) decreased by more than 2.0 MMT between July and August to 128 MMT.

“With the harvest ending in France and poor results in southeastern Europe, new reductions to growing areas in France and Germany accentuated the forecasted decline. Soft wheat production has therefore fallen by almost 20.0 MMT, or 13 percent, from last year,” said SG.

Poor planting conditions in the fall of 2019 followed by an extremely warm, dry growing season challenged soft wheat production in the EU’s two largest producing countries, France and Germany. According to USDA, total EU wheat harvested area is expected to fall 5 percent from last year to 24.7 million hectares (61.0 million acres), down 6 percent from the 5-year average, if realized. The total wheat average yield is expected to drop 7 percent from last year to 82.0 bu/acre (5.51 MT/hectare), down 3 percent from the 5-year average.

SG estimates that total EU durum production will fall slightly below last year to 7.30 MMT. USDA predicts total EU wheat production, including soft wheat and durum, will fall to 136 MMT, 12 percent less than last year, 9 percent below the 5-year average and the lowest output since 2012/13.

European Commission (EC) data shows that, so far in marketing year 2020/21, the EU and the United Kingdom have exported 3.60 MMT of wheat to all non-EU destinations. That is 41 percent behind their export pace this time last year. USDA forecasts the EU will export just 25.5 MMT of wheat this marketing year, 34 percent less than last year and 13 percent less than the 5-year average.

USW will continue to monitor global conditions as farmers in the Northern Hemisphere start the 2021 winter wheat planting campaign.

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