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Dependable People: A Spotlight on the Kansas Wheat Commission

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: Kansas Wheat Commission
Member of USW since 1980

Location: Manhattan, Kan.
Classes of wheat grown: Hard Red Winter (HRW); Hard White (HW)
USW Leadership: Adrian J. Polansky, 1985/86 Chairman; Joe Berry, 1996/97 Chairman; Ron Suppes, 2007/08 Chairman

The Kansas Wheat Commission represents “farmers investing in their future.” The grower-funded and governed advocacy organization works to secure a future for Kansas wheat in the global market. International trade, research, export system studies and continually improving wheat varieties are how Kansas wheat remains competitive in the world market. Through a voluntary two cent check-off on every bushel of wheat produced, Kansas wheat growers enhance their productivity and profitability.

USW 2007/08 Chairman Ron Suppes (L), a wheat farmer from Kansas, passes the gavel to Michael Edgar, a wheat farmer from Arizona.

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

Kansas wheat farmers support USW because of the technical expertise and trade assistance they provide to export customers, whose purchases account for about half of the wheat grown in Kansas each year. Much of this wheat is transported by rail to Mexico or to the Gulf of Mexico for export. Mexico is a growing market for Kansas wheat because of free trade policies, population and economic growth and a comparative advantage in transportation logistics.

Gary Millershaski, a USW director and Kansas wheat farmer, was featured along with his family recently in this video, “Stories from the Wheat Farm – The Next Generation in Kansas.”

How have Kansas wheat farmers recently connected with overseas customers?

Each year, international customers travel to Kansas to learn more about the crop, the U.S. wheat grain production and marketing system and the farmers that grow the wheat they buy. These trade teams usually consist of procurement agents, flour millers and executives. They come to Kansas to get a first-hand look at each new crop as it nears the end of its growing season. They discuss the U.S. grading and inspection system to learn how to write their specifications to receive the best product at the most efficient price.

In addition, Kansas wheat farmers and members of the Kansas Wheat staff travel with USW to participate in buyers’ conferences and on USW board teams. We speak at events for international buyers and work with the IGP Institute to provide training to customers.

Kansas wheat farmer Jay Armstrong (R) participated on the 2018 USW Board Team that traveled to South Africa and Nigeria. He is pictured here in a South African wheat field. Read more about this trip here.

A USW Trade Delegation from Nigeria visited in Kansas in 2012. Kansas Wheat has a long history with the Nigerian milling industry and typically hosts customers from there each year.

A USW Sub Saharan Trade Delegation visiting Kansas in 2019.

This year, trade teams look different with current travel restrictions, so Kansas Wheat is reaching out to have virtual discussions with international customers. In June, we are hosting Zoom® meetings with customers from Brazil and Sub-Saharan Africa. While these buyers will not be able to set foot in a Kansas wheat field, they will get the latest information about the 2020 Kansas hard red winter (HRW) and hard white (HW) winter wheat crops, get an early report on grade and non-grade factors, get a live report from a Kansas wheat field, talk to a farmer, and visit with a grain trade representative. There will be a question and answer session for all participants.

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

Wheat harvest in Kansas is just beginning. This year’s crop has had some struggles, from drought conditions last fall, to continued spring drought in the southwest and north central parts of the state, to a damaging April freeze. While the quantity of the crop will likely be slightly lower than normal, the test weight and protein of this year’s crop will likely be above average. There will be enough wheat to meet our customers’ needs.

Kansas Wheat CEO Justin Gilpin (center) gives guests a tour of the Wheat Genetics Resource Center. Learn more about wheat research and breeding here.

The Kansas Wheat Innovation Center (KWIC) was built by the Kansas Wheat Commission, through the Kansas wheat check-off, to get improved wheat varieties into the hands of farmers faster. It represents the single largest research investment by Kansas wheat farmers in history. The KWIC was built on land owned by Kansas State University and is leased to the Kansas Wheat Commission for 50 years. Construction was completed in November 2012. Four new greenhouse bays were completed in spring 2018. Construction of a wheat quality lab housed in the KWIC will be completed this summer.

The KWIC is also home of the world-renowned Wheat Genetics Resource Center (WGRC). The WGRC has established a national and international network to conduct and coordinate genetic studies in wheat. The WGRC has also been recently designated as a National Science Foundation Industry/University Cooperative Research Center. This is the first I/UCRC focusing on plant sciences. The NSF Center is a collaboration between private wheat genetics companies and public universities including Kansas State University, Colorado State University and Washington State University. The goal is to leverage the wide genetic diversity of wheat to improve modern varieties.

Learn more about the Kansas Wheat Commission on its website here and on Facebook, Twitter, YouTube and Instagram.

In 2019, Kansas wheat farmer Brian Linin testified on behalf of U.S. wheat farmers on the importance of the grain inspection system for U.S. export markets. Read more.

Past USW Chairman and Kansas wheat farmer Ron Suppes spoke at an event for the U.S. Agriculture Coalition for Cuba.

Kansas wheat farmer Justin Knopf is featured in USW’s sustainability profiles here.

Past USW Chairman and Kansas wheat farmer Ron Suppes (green shirt), joined USW on its “Food Aid Learning Journey” to Tanzania in 2017. Read more about this trip here.

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Commercial U.S. Wheat Export Sales Top USDA Estimate

By Claire Hutchins, USW Market Analyst

Despite challenging market factors, U.S. wheat exports for marketing year (MY) 2019/20, which ended May 31, totaled 26.9 million metric tons* (MMT) (988 million bushels), ahead of USDA’s export volume estimate of 26.4 MMT (970 million bushels). That is 4 percent ahead of MY 2018/19 and 10 percent greater than the 5-year average of 24.4 MMT (897 million bushels).

Commercial sales of all classes of wheat in MY 2019/20 exceeded 2018/19 levels in part from favorable market factors including abundant exportable supplies, strong harvest qualities, and competitive export prices at the beginning of the marketing year.

This offset such bearish factors as a strong U.S. dollar, competitor’s advantages, difficult winter wheat planting conditions, significant delays to the spring wheat and durum harvests, uncertainty about U.S. trade policies, and recent challenges during the COVID-19 pandemic.

Throughout the year, even in the face of the pandemic restrictions on meetings and travel, U.S. Wheat Associates (USW) representatives were able to sustain a strong level of service and information flow to its customers, with support from its state commissions members and USDA’s Foreign Agriculture Service export market development programs.

Hard Red Winter. Significantly greater production and attractive export prices buoyed hard red winter (HRW) exports year-over-year. Total 2019/20 HRW exports came in at 10.2 MMT (375 million bushels), 9 percent ahead of last year. According to USDA, higher yields due to cool, moist conditions during the 2019 growing season more than offset decreased planted area. HRW production increased 26 percent in 2019/20 to 22.7 MMT (834 million bushels). The average HRW export price in the first two months of MY 2019/20 fell 4 percent from the year prior to $233/MT. Increased exports to Mexico, the largest market for HRW, Taiwan, Indonesia, Brazil and Colombia more than offset reduced exports to Nigeria, Japan, Iraq and Egypt. Sales to Mexico totaled 2.61 MMT (95.9 million bushels), the highest on record and 22 percent more than last year. Sales to Nigeria, the second largest market for HRW, fell 11 percent from last year to 1.01 MMT (37.1 million bushels). HRW sales to China picked up in 2019/20 to 302,000 MT (11.1 million bushels) compared to the zero metric tons sold in 2018/19.

Hard Red Spring. Total hard red spring (HRS) commercial sales of 8.0 MMT (294 million bushels) were 12 percent greater than last year and 36 percent greater than the 5-year average of 1.45 MMT (53.3 million bushels). Exportable supplies were relatively stable year-over-year as higher beginning stocks in 2019/20 cushioned reduced production. Commercial sales to the Philippines, Japan, Taiwan, South Korea and Vietnam, the top five export markets for HRS, all outpaced 2018/19 sales. HRS sales to China for delivery in 2019/20 at 146,000 MT (5.36 million bushels) were more than 4 times greater than the quantity sold for delivery in 2018/19.

Soft Red Winter. Soft red winter (SRW) sales fell 27 percent on the year to 2.45 MMT (90.0 million bushels) as reduced exportable supplies supported export prices. USDA estimates 2019/20 SRW production fell 17 percent from last year to 6.50 MMT (239 million bushels). The average SRW export price for 2018/19 was $217/MT, but for almost the entire second half of the marketing year, SRW futures prices were higher than HRW futures. Exports to 8 out of the top 10 SRW markets fell below 2018/19. Sales to Mexico, the top market for SRW, fell 11 percent from last year to 815,000 MT (29.9 million bushels). Price sensitive buyer Egypt made no SRW purchases in MY 2019/20. Sales to Colombia, the fourth largest market for SRW, increased 11 percent year-over-year to 288,000 MT (10.6 million bushels).

White Wheat. Total commercial sales of soft white (SW) and hard white (HW) wheat of 5.37 MMT (197 million bushels) were slightly less than last year but still 14 percent ahead of the 5-year average of 4.69 MMT (172 million bushels). HW sales represent about 4 percent of the total. Sales to 3 of the top 5 white wheat markets fell below 2018/19. Sales to Japan, the second largest market for white wheat, fell 21 percent from last year to 701,000 MT (25.8 million bushels). Sales to the Philippines, the top market for white wheat, increased 14 percent from last year to 1.51 MMT (55.5 million bushels).

White Wheat Sales

Note that USDA reports both SW and hard white (HW) in its U.S. White Wheat commercial sales. HW represents about 4% of total White Wheat sales.

Durum. USDA reported 2019/20 durum sales at 965,000 MT (35.5 million bushels), nearly double last year’s figure and 70 percent greater than the 5-year average on significantly increased European Union (EU) imports. EU durum production fell 14 percent year-over-year on sharply lower harvested area, prompting greater imports from the United States. Italian imports of U.S. durum nearly tripled last year’s import volume at 672,000 MT (24.7 million bushels).

*Slight adjustments will be made when final commercial sales data is published on June 11.

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Stories from the Wheat Farm – The Next Generation in Kansas

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 Kleeman/Millershaski Family: Gary Millershaski started farming with his father-in-law Earl Kleeman in 1992 and his sons Jeremy and Kyler joined the operation four years ago. Sadly, Earl passed away in 2019, but not before he proudly helped harvest what was one of the family’s best wheat crops in years. Kyler Millershaski is excited to build on his family’s legacy as the next generation on the farm.

Location: Lakin, Kansas
Classes of Wheat Grown:  Hard Red Winter (HRW) and Hard White (HW)
Leadership:
Gary Millershaski: Past President, Kansas Association of Wheat Growers; Kansas Wheat Commissioner; USW Director
Kyler Millershaski: Vice President, Kansas Association of Wheat Growers 

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Vietnam Reduces Tariffs on Wheat and Other Agricultural Products

The Government of Vietnam recently revised Most Favored Nation (MFN) tariff rates on several imported agricultural products, including wheat. This decision reduces Vietnam’s tariff on imported U.S. wheat (excluding durum) from 5 percent to 3 percent and will take effect July 10, 2020.

The reduced tariff is welcome news to U.S. wheat producers in part because it helps make U.S. wheat more competitive in Vietnam’s growing wheat market. There is, however, more work to be done because Vietnam pays no tariffs at all on most of their imports as a result of a series of preferential trade agreements such as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), of which the United States is not a member.

Elimination of tariffs on U.S. wheat would benefit the growing Vietnamese milling industry and its customers. Despite the tariffs, their imports of U.S. hard red winter (HRW), soft white (SW) and hard red winter (HRW) wheat imports reached a market share of almost 13 percent in marketing year 2019/20, the largest level in five years. Vietnam currently imports an average of more than 2 million metric tons per year.

In addition, although phytosanitary restrictions sometimes limit exports, the Vietnamese flour milling and wheat foods industry look to U.S. wheat for consistent supply and quality, while USDA’s Foreign Agricultural Service (FAS) and Animal and Plant Health Inspection Service work to alleviate non-tariff and tariff barriers.

According to the MFN principle of the World Trade Organization (WTO), these MFN tariff rates will apply to all Vietnam trading partners with whom Vietnam has no preferential arrangements in place (such as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) trade agreement, of which the United States is not a member). Although its name implies favoritism toward another nation, MFN denotes the equal treatment of all countries.

In addition to U.S. wheat, Vietnam’s tariff reductions apply to milk and dairy products, fresh apples, grapes, dried grapes (raisins), frozen potatoes, almonds (in shell), walnuts (in shell), chilled pork, and ethanol. Additionally, the MFN tariff rate for frozen pork has been temporarily reduced from 15 percent to 10 percent, from July 10 until Dec. 31, 2020.

 

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Wheat Industry News

Recent news and highlights from around the wheat industry. 

Speaking of Wheat: “There is a societal cost of not using new genome editing techniques or being slow in adoption. We have no time to lose in resolving our shared problems for food and nutrition security.” – Robin Fears, Director, European Academies Science Advisory Council, in a statement calling for reform of European regulation of plant breeding innovations. 

Today We Have Bread. All of us at USW feel very fortunate to continue working virtually, and our farmer board of directors agreed with our staff to share some of that good fortune with others in need. So, USW is donating bread, produced at Uptown Bakery, owned by Master Baker and USW consultant Didier Rosada, to three area food banks. One of the recipients is the food pantry at Columbia Baptist Church in Arlington, Va. Rev. Gregory Loewer recently shared this in a letter thanking USW for the bread donation: “The recipients of your donations were so grateful to receive the bread. I happened to be serving on the team yesterday and when I told the folks waiting in line that ‘today we have bread’ they were delighted.” 

“Killing Before Milling.” North Dakota State University (NDSU) researchers recently received a USDA Food Safety and Defense grant to explore the use of steam pasteurization to reduce pathogens in milled flour. Senay Simsek, NDSU’s Bert L. D’Appolonia Cereal Science and Technology of Wheat Endowed Professor, and Teresa Bergholz, associate professor of microbiological sciences, will work on a project titled “Killing Before Milling: Utilization of Vacuum Steam Pasteurization for Controlling Enteric Pathogens on Wheat.” The three-year USDA grant totals nearly $500,000. Read more about the project.  

Award of Excellence for Dr. Simsek. NDSU’s Senay Simsek has been awarded the NC-213 U.S. Quality Grains Research Consortium 2020 Andersons Cereals and Oilseeds Award of Excellence. Simsek, who has been with NDSU since 2007, leads the HRS wheat end–quality project in the Department of Plant Sciences. Congratulations to Dr. Simsek, who is a frequent collaborator with USW. Read more about the award and Dr. Simsek’s work. 

University of Maryland Professor Puts the UMD Small Grains Breeding and Genetics Program on the Map. Vijay Tiwari, assistant professor in Plant Science and Landscape Architecture at the University of Maryland, recently received the Leadership Award from the International Wheat Genome Sequencing Consortium (IWGSC). This award is given annually to scientists who make a crucial impact in wheat genomics. This year, Tiwari was the sole recipient for his leadership and expertise in Radiation Hybrid mapping or RH mapping, a technique that was used to validate the entire wheat genome assembly. 

2020 National Wheat Yield Contest June 15th Early Bird Registration for Spring Wheat. The National Wheat Foundation officially opened the 2020 National Wheat Yield Contest in February 2020. The Foundation is currently accepting entries for Spring Wheat until Aug. 1 with an early registration deadline of June 15.

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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Dependable People: A Spotlight on the North Dakota Wheat Commission

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: North Dakota Wheat Commission
Member of USW since 1980

Location: Mandan, N.D.
Classes of wheat grown: Hard Red Spring (HRS); Durum
USW Leadership: James Ole Sampson, 1980/81, USW’s first Chairman; Cecil Watson, 1992/93 Chairman; Alan Lee, 2003/04 Chairman; Brian O’Toole, 2015/16 Chairman.

The North Dakota Wheat Commission (NDWC) works to sustain and expand use of wheat grown by North Dakota farmers by creating worldwide market opportunities through efforts including opening overseas markets, reinforcing consumption of grain foods, developing new wheat varieties and influencing international import and export policies. Wheat producers fund these programs with a checkoff of a penny and a half on each bushel sold.

NDWC Commissioner David Clough congratulates 2015/16 USW Chairman Brian O’Toole, a wheat farmer from North Dakota, at the 2016 Summer Board Meeting in Fargo, N.D.

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

Many variables drive wheat prices globally and export market share. Some of these variables, such as global production, quality impacts from adverse weather, political and economic trends, or “black swan” events like COVID-19 can dramatically affect trade flows and prices. USW provides the network to help react to those larger forces, drive needed policy changes in trade or market tangibles, and tweak the little things that can add up to a big difference in the final sale. Every wheat producer wants to build the optimum market share and the highest local price within the global competitive environment, but we cannot do market development as a single state. USW helps ensure we are reaching out to current and potential customers on an individual basis, by promoting the wheat grown on individual farms through the synergies only achieved from a collective marketing force across multiple states and producers.

Our board members consider USW to be the “boots on the ground” to promote our high quality HRS, durum and other U.S. wheat classes.

In recent years, the value of USW marketing programs and staff, have become even more important, in our perspective, due to the consolidation and shift in major export companies. Most now source their wheat from multiple origins and promote their sales on that basis. USW helps customers find the best source and class of U.S. wheat for their needs. They help provide the real picture of what U.S. produced wheat can provide to customers, and help trouble shoot any challenges customers may have in accessing or utilizing wheat from the United States.

Without the government programs that once existed to support U.S. wheat exports more effort is needed to educate customers on the higher value and reliability of U.S. wheat, in the face of intense price competition. The reputation that the U.S. has as a premium source of wheat, is largely due to the day-to-day activities of USW. Investment in export market development will always be a priority for North Dakota wheat producers since we rely on export markets for slightly more than half of our annual production of HRS and roughly 40 percent of our durum.

USW Director of Communications Amanda Spoo (middle) with past NDWC Commissioner David Clough and his wife Aileen on their farm during the 2018 Spring Wheat Tour.

How have North Dakota wheat farmers recently connected with overseas customers?

Traditionally, North Dakota hosts trade delegations from various countries every summer. Our producers enjoy these teams as an opportunity to visit with customers face-to-face. Our customer educational program involves an extensive overview of our wheat breeding and quality research programs, current crop prospects or harvest quality, risk management strategies, and visits to a local elevator and wheat farm family. We strive to showcase the unique qualities of our wheat, and build a trust and a relationship with customers, assuring them that North Dakota producers are committed to raising some of the best wheat in the world, designed with the customer in mind.

Last fall, Commissioners Greg Svenningsen and Philip Volk attended the Japan Buyers Conference and various other commissioners have participated in USW board travel, meeting key customers around the world and USW staff. Producers return from board travel with a new understanding of key customer markets and a keen appreciation for USW staff working overseas on their behalf.

The Northern Crops Institute (NCI) Grain Procurement course, held since 1983, has also been a great opportunity for producers to interact with customers with USW sending key participants.

Currently, NDWC is exploring and enacting efforts, along with USW, to interact with customers on a virtual platform. This is needed with the current travel restrictions worldwide and may offer additional opportunities to reach more customers within a country or region.

NDWC Commissioner Phil Volk and his family were featured in a USW video shoot during their 2019 spring wheat harvest.

What’s happening lately in North Dakota that overseas customers should know about?

Producing a quality product is a source of pride for North Dakota wheat farm families. NDWC contributes about 40 percent of its budget to research, prioritizing investment on customer needs – specifically end-use quality. Our board understands the need to maintain HRS and durum quality to continue to meet customer demands. Wheat is grown all over the world, and many customers can source general quality wheat from closer points of origin. Our wheat needs to provide special, inherent quality attributes that cannot be sourced elsewhere. The consistent, and strong track record of export sales to many traditional customers attests to the benefits this focus on quality has brought to our producers. Our board members and other producers involved in Commission activities have genuine enthusiasm for growing quality wheat for customers, once they learn more about customer needs and meet customers in person.

Learn more about the North Dakota Wheat Commission on its website here and on Facebook.

Current and past NDWC commissioners at the 2016 USW Summer Board Meeting in Fargo, N.D.

 

NDWC Administrator Neal Fisher at the 2017 USW World Staff Conference in Estes Park, Colo.

 

 

 

NDWC Commissioner Phil Volk and North Dakota wheat farmer (far left) participated on the 2019 USW South Asia Board Team trip to the Philippines, Singapore and Indonesia.

 

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2020 Hard Red Winter Wheat Tour Goes Virtual in Kansas

By Claire Hutchins, USW Market Analyst

Each year in May, the Wheat Quality Council (WQC) hosts a three-day winter wheat tour across Kansas and parts of surrounding states to assess hard red winter (HRW) wheat conditions and yield potential. For the past 50 years, caravans of industry stakeholders including farmers, journalists, economists, millers, traders and agronomists have joined together to report on the crop.

This year, with the uncertainty of the COVID-19 pandemic, WQC could not conduct the traditional tour. Instead, Kansas Wheat and K-State Research and Extension (KSRE), in conjunction with the Kansas Department of Agriculture, and other industry partners held a virtual wheat tour.

Instead of the traditional process, a small group of crop scouts surveyed hundreds of fields in Kansas between May 18 and May 21, and estimated environmental, disease and pest pressures and yield potential by region and for the whole state. These estimates represent a snapshot in time and are subject to change with environmental developments.

Stakeholders followed the tour closely through social media (#wheattour20) and in summaries conducted on the Zoom conference service at the end of each day. The event started with some trepidation as drought in the western third of the state, dryness in the state’s central corridor and broad freeze damage in April had raised concerns about what scouts would find.

“Overall, the crop was in better condition than I personally was expecting,” said Justin Gilpin, CEO, Kansas Wheat. “The last two weeks of moisture have really aided secondary tillers emerging in the central corridor and heads are filling with the added moisture.”

After three days of sampling, the state’s 2020/21 wheat crop potential (planted 2019) was estimated at 7.73 million metric tons (MMT), 7 percent below USDA’s May 12 estimate of 8.33 MMT and 16 percent below last year’s output of 9.20 MMT. The state’s average estimated wheat yield came in at 44.5 bu/acre (2.99 MT/ha), 14 percent below last year’s realized yield average of 52.0 bu/ acre (3.50 MT/ha).

According to Kansas Wheat, the state’s north-central district has been plagued by spring drought, and stripe rust and barley yellow dwarf are starting to emerge. The spring freeze also had a significant effect on the crop in that area. The tour estimated the average yield potential for north central Kansas at 41.1 bu/acre (2.76 MT/ha).

“Quality-wise, good rains will help with yield and test weights in the central corridor,” said Gilpin.

Image courtesy of KSU Wheat and Forage Extension Pathology.  

The crop looked better in northwest Kansas but was still variable. Jeanne Falk Jones, Multi-County Extension Agronomist, KSRE said, “April took a toll on the wheat crop this year with all the cold temperatures.”

She reported cosmetic leaf burn from cold temperatures on April 2 and 3, and again April 12 to 15. The area has suffered from drought stress, weed pressure due to thin stands, low pressure wheat streak mosaic virus, tan spot and stripe rust. The average yield potential was 51.7 bushels per acre (3.48 MT/ha).

In west-central and southwest Kansas, the driest parts of the state, the wheat is thin and short. Gary Millershaski, Kansas Wheat Commissioner from Lakin, Kan., reported that many acres of wheat had been abandoned due to extreme drought conditions in the spring and fall. In addition, planted acres were already down significantly in the area. He said only 30 percent to 40 percent of wheat in the area emerged before winter, which had a negative effect on yield potential.

Severe drought stress in the eastern part of Seward County, Kan. Photo courtesy of Romulo Lollato.

Buyers should keep in mind that crop yield and grain protein content are generally inversely related. Fields that were fertilized for 50.0 bu/acre (3.36 MT/ha) that end up with lower yields should produce a crop with higher protein levels.

Millershaski said, “I believe our quantity is going to be down a little bit, but I feel like our quality is going to be unbelievable.”

Calculated yield potential for west-central Kansas was 42.5 bu/acre (2.86 MT/ha), and the southwest Kansas estimate came in at 32.4 bushels per acre (2.18 MT/ha).

“It is amazing how the crop was still holding on, holding out hope for just one shot of rain. Cool night temperatures have helped the wheat from burning up. In those areas of 20 to 25-bushel wheat, if it catches a rain, it may run up to 35 bushel wheat, which is an amazing testament to the wheat varieties,” said Gilpin.

To see more information about the 2020 virtual wheat tour, click here.

Header Photo: Evidence of freeze damage in central Kansas. Photo courtesy of KSU Wheat and Forage Specialist, Romulo Lollato.

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U.S. Wheat Supply Chain System: Grain Handlers

By Michael Anderson, USW Assistant Director, USW West Coast Office

Each day during harvest season in the Pacific Northwest, the road to mid-Columbia Grain Company in The Dalles, Ore., is backed up by large grain trucks loaded with recently harvested wheat. A sample is taken from each load, then graded and tested for protein before being offloaded and elevated into segregated storage or directly onto a barge that will make its way down the Columbia River to export grain terminals. Wheat from other up-country elevators is also loaded into rail cars for the trip to port.

Downriver, storage is limited but variable orders must be filled quickly. So, what is being offloaded from up-country is segregated by class and protein, inspected to certify it will meet buyers’ specifications and re-loaded into bulk vessels.

Such logistics are complex, but it is happening all the time across the United States. It is a system that continues to be highly efficient at receiving, storing, sorting, blending and shipping large amounts of grain of uniform quality to a diverse international customer base. To read more about the systems that support U.S. grain handling, visit the National Grain and Feed Association website here.

The North American Export Grain Association (NAEGA) describes exporting grain as both a competitive and capital-intensive industry. On its website, NAEGA states that “since the margin of profit to be earned from moving a ton of grain can be quite small, exporters depend upon moving large volumes very quickly. They seek to achieve an economy of scale that lowers their average fixed costs per unit of volume handled, provides operating flexibility, increases bargaining power in chartering for shipping, and improves the services they can provide worldwide.”

Using trucks, rail and river barges, the U.S. grain handling system in marketing year 2018/19 moved about 56 percent of annual wheat exports through ports in Oregon and Washington State, about 31 percent through ports in Louisiana and the Texas Gulf, about 9 percent from the “interior,” mainly via direct rail from the Plains to Mexican buyers, and 4 percent through ports on the Great Lakes.

From the bookkeepers at country elevators to the longshoremen who load bulk ocean-going vessels, every person in our grain handling system is working hard to add value to every metric ton of wheat our overseas customers purchase. Even today, as the threat from COVID-19 continues, these men and women remain at work, helping to feed the world.

Read other blog posts in this series:
Research and Breeding
Farmers and State Wheat Commissions
Exporters, Inspectors and USW Overseas Offices

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USW 2020/21 Harvest Reports Return This Week

The new crop U.S. wheat harvest is underway in south Texas and U.S. Wheat Associates (USW) will publish its first “Harvest Report” for marketing year 2020/21 on Friday, May 29.

USW Harvest Reports are published every Friday afternoon, Eastern Daylight Time, throughout the season with updates and comments on harvest progress, crop conditions and current crop quality for hard red winter (HRW), soft red winter (SRW), hard red spring (HRS), soft white (SW) and durum wheat.

Anyone may subscribe to an email version of the “Harvest Report” at this link. USW includes links in the email to additional wheat condition and grading information, including the U.S. Drought Monitor, USDA/NASS Crop Progress and National Wheat Statistics, the official FGIS wheat grade standards and USDA’s World Agricultural Supply and Demand Estimates report. Harvest Reports are also posted online on the USW website here.

The weekly Harvest Report is a key component of USW’s international technical and marketing programs. It is a resource that helps customers understand how the crop situation may affect basis values and export prices.

USW’s overseas offices share the report with their market contacts and use it as a key resource for answering inquiries and meeting with customers. USW/Mexico City also publishes the report in Spanish.

USW wants to thank and acknowledge the organizations that make “Harvest Reports” possible, including:

  • California Wheat Commission Laboratory;
  • Durum Wheat Quality and Pasta Processing Laboratory, North Dakota State University (NDSU)
  • Great Plains Analytical Laboratory;
  • Plains Grains, Inc.;
  • State Wheat Commissions;
  • USDA/Federal Grain Inspection Service;
  • USDA/Foreign Agricultural Service;
  • USDA/Agricultural Research Service Hard Winter Wheat Quality Laboratory;
  • USDA/National Agricultural Statistics Service;
  • Wheat Marketing Center;
  • Wheat Quality & Carbohydrate Research, Department of Plant Sciences, NDSU;
  • Wheat Quality Council.

 

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USDA Revises Rules on Biotechnology and Plant Breeding Innovations

By Shelbi Knisley, USW Director of Trade Policy

On May 18, 2020, USDA and its Animal and Plant Health Inspection Agency (APHIS) published revised rules intended to modernize its regulatory system on genetically engineered organisms and other breeding technologies through a science-based system.

USDA said this new rule will help give U.S. farmers access to these critical tools “to help increase agricultural productivity and sustainability, improve the nutritional value and quality of crops, combat pests and diseases, and enhance food safety. This new rule signals to the world that the United States is focused on risk assessments based on science to give proper oversight to these new technologies.

USDA’s Animal and Plant Health Inspections Service has introduced a new regulatory system for evaluating new plant traits derived from transgenic and gene editing technologies. The SECURE Rule was published in The Federal Register May 18.

In particular, the rule seeks to address products that are developed through gene editing, which is of great interest to U.S. wheat producers. Gene edited products may be exempt from  strict regulation so long as no “plant pest” is present, and the products could be produced through traditional breeding methods. While many in the industry are working to determine exactly how much of these exemptions will apply to wheat breeding, the  approach is similar to that taken by other countries such as Argentina, Australia, Brazil, Canada, Chile, Colombia, Israel and Paraguay.

While of smaller interest to U.S. wheat customers, as there have been no genetically modified (GM) traits commercialized in wheat in the United States, the rule also adjusts the existing regulatory structure for GM plants. Those adjustments will make it easier for companies to bring to market GM plants with the same plant and trait combinations that USDA has previously reviewed.

Through its joint Wheat Breeding Innovation Committee (WBIC) with the National Association of Wheat Growers (NAWG), U.S. Wheat Associates (USW) regularly consults with plant breeding companies and members of the grain handling industry. That dialog focuses on ensuring that regulation of new breeding technologies strikes an appropriate balance between preserving access to technology for U.S. farmers and avoiding market disruptions. That committee has established core policy positions regarding regulation of plants produced through gene editing, found here.

USW supports a science-based approach to regulating new technologies. Although there is no transgenic wheat in commercial production, U.S. wheat growers are excited about the potential for many of these new plant breeding innovations to feed a growing world population. This policy positions the U.S. to help encourage other trading partners to use science-based approaches when considering their own regulations on gene editing.

USW and NAWG will continue to work hand in hand with customers, seed developers and technology providers to ensure that domestic and overseas industry participants are informed when new technologies are brought to market. For more information, the USDA Rule can be found here and USDA’s Question and Answers can be found here.

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