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Trade Service Helps Tip the Scales to U.S. Wheat in South America

U.S. Wheat Associates (USW) works directly with overseas buyers to answer questions and resolve issues in purchasing, shipping or processing U.S. wheat through technical support and trade service including trade delegations to the United States, regular crop and market condition updates, quality surveys and other activities.

Two examples in South America confirm that USW’s face-to-face interaction with customers has a direct influence on purchase decisions. For an large flour miller buying group in Chile, processing a sample of U.S. wheat and personally observing the U.S. supply system convinced the group to purchase U.S. wheat again. And for a large miller and wheat foods producer in Ecuador, consistent trade service led to a first-time U.S. wheat purchase.

Seeing is Believing.

Chile’s Grupo 9 (G9) purchases about 30% of Chile’s imported wheat but had for several years been importing Canadian spring wheat that was priced aggressively against U.S. hard red spring (HRS) and hard red winter (HRW) wheat. Through USDA Foreign Agricultural Service programs, USW provided a sample of U.S. hard red winter (HRW) and sponsored two G9 millers to participate in a 2017 visit to the United States. Based on the positive reaction to these activities, USW’s representatives in South America invited another influential G9 representative to join another trade team to the United States in June 2018.

In Portland, Ore., the participants made contacts with new Pacific Northwest grain traders and observed the FGIS grain inspection process. In Nebraska, hosted by the Nebraska Wheat Board, the team saw public HRW breeding research at the University of Nebraska, Lincoln, and in North Dakota they learned about the quality of the 2018/19 hard red spring (HRS) crop from the North Dakota Wheat Commission and Northern Crops Institute.

2018 Chile-Ecuador Trade Team in North Dakota at the Northern Crops Institute.

As the tour progressed, USW saw more and more interest from the participants. They learned that lower moisture U.S. wheat offers good value in their milling processes. They saw how they could use inspection data to get maximum return from their wheat import contracts. They also talked to farmers and elevator operators who showed how quality is maintained throughout the supply chain.

In September 2018, the G9 buyer told USW it was considering purchasing a full cargo of U.S. wheat. USW shared the quality data from the new harvest and past years and discussed the excellent buying opportunities. In April 2019, the buyer purchased U.S. HRW to mill into bread flour and soft red winter (SRW) to mill into cookie and pastry flour. And to continue the long-term commitment to serving the buyers group, USW sponsored the same manager to participate in the “Hard Red Spring Wheat Quality Tour” in North Dakota in July 2019.

2018 Chile-Ecuador Trade Team in North Dakota.

G9’s return to buying U.S. wheat helped significantly increase export sales to Chile in 2018/19. It is a trend that has continued into 2019/20. With a sustained effort focused on replacing Canadian supplies, USW can report that after only the first three months of the marketing year, the country’s HRW imports are already twice what they were in 2018/19 at this same time.

Constant Support

Sucesores of Jacobo Paredes M. S.A, is the largest pasta producer in Ecuador and is a major bread product producer. Its purchases represent about 10% of Ecuador’s total wheat imports for food. Mr. Xavier Sanchez is the owner of the company and is responsible for its wheat purchases. Mr. Sanchez and his team have attended virtually all the activities that USW has carried out in Ecuador. However, by tradition and experience, the company has milled only Canadian spring wheat to produce both pasta and bread flour.

USW has focused its technical support on demonstrating how the company can lower its costs and improve its bread quality by replacing at least some Canadian spring wheat with U.S. HRW. In July 2019, Mr. Sanchez participated in a USW “Wheat Purchasing Seminar,” in Quito, Ecuador. He told USW representatives based in Santiago, Chile, that USW’s constant support, along with the information he received at the seminar, had convinced him to make their first purchase of U.S. wheat. Initially, Jacobo Paredes bought 3,000 metric tons (MT) of HRW min 12% pro from the Gulf of Mexico to arrive in October 2019. Recently, the company made a second purchase of 1,500 MT of HRW to arrive in December. Mr. Sanchez said he counts on USW support, which finally made the difference in the company’s purchase decision.

2019 Wheat Purchasing Seminar in Ecuador.

Now, USW’s technical support will be applied to ensure that the U.S. wheat experience will provide the best possible value. USW will visit the mill when the first HRW wheat shipment arrives to help Jacobo Paredes with sampling, conditioning and milling, in addition to helping the company formulate the best flour blend for their bakery.

For more information about USW’s exceptional trade service and technical support, please contact your local USW office.

 

Header Photo Caption: 2017 Chile Trade Team in Washington.

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Wheat Farmers Call on Congress to Pass USMCA Trade Agreement

The U.S. wheat industry is speaking out boldly on the need to pass the United States-Mexico-Canada Agreement (USMCA) this year.

Speaking at a widely attended rally sponsored by Farmers for Free Trade on Capitol Hill today, Ben Scholz, a wheat farmer from Lavon, Tex., said agriculture and wheat farmers desperately needs a win in trade and “passing the USMCA will put us in the right direction.”

As President of the National Association of Wheat Growers (NAWG), Scholz was representing all U.S. wheat farmers and, by proxy, their loyal customers in Mexico, at the rally. Members of Congress, including House Agriculture Committee Chairman Collin Peterson and Ranking Member Mike Conaway, as well as other farm leaders attended the event to discuss how USMCA provides growers with improved market access while maintaining the zero-tariff platform.

“Over the past five years, Mexico has consistently been the top market for U.S. wheat exports,” said Scholz. “USMCA retains tariff-free access to imported U.S. wheat for our long-time flour milling customers in Mexico. Further, the Agreement takes an important step towards fixing the Canadian grain grading system which automatically designates U.S. wheat imported as the lowest grade wheat which puts America’s wheat growers at a competitive disadvantage.”

Ben Scholz, a wheat farmer from Lavon, Tex.

On behalf of wheat farmers, NAWG is a member of Farmers for Free Trade, which is very focused on getting USMCA passed, including sponsoring #MotorcadeForTrade to highlight the importance of ag trade with Mexico and Canada and passing USMCA. In June 2019, NAWG joined nearly 1,000 groups representing the U.S. food and agriculture value chain at the national, state and local levels in signing a letter supporting USMCA passage. This week, Ben was also joined by fellow NAWG growers from several other states to meet with more than two dozen congressional offices to urge swift consideration of USMCA.

NAWG and U.S. Wheat Associates (USW) applauded the three countries for working together to finalize USMCA. This agreement includes important provisions for wheat farmers. Retaining tariff-free access to imported U.S. wheat for Mexico is a crucial step toward rebuilding trust in U.S. wheat as a reliable supplier in this important, neighboring market.

USW thanks Ben and the entire NAWG organization for their efforts representing wheat farmer interests in Congress.

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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USW Video Team Travels in North Dakota to Capture Spring Wheat Harvest

North Dakota’s farm families have a remarkable choice of crops to grow. Canola, dry edible peas, flaxseed, oats, barley, sunflowers and even soybeans are all options. Yet most farmers in North Dakota’s north central “Drift Prairie” would identify themselves first as wheat growers — hard red spring (HRS) wheat growers to be specific.

Philip and Lisa Volk and their five children of York, N.D., count themselves among the state’s wheat growers, making their farm, founded in 1942 in nearby Knox, N.D., an ideal stop for production of a video program focusing on the people who contribute to the wholesome quality of U.S. wheat for dozens of different food products around the world. With previous visits to Kansas, Ohio and Washington state, the show will eventually be completed in 2020 and include additional farm families and information about the U.S. wheat supply system.

Pride and love of their North Dakota farm life are evident on the faces of Phil and Lisa Volk and four of their five children.

Phil is currently serving a four-year term on the North Dakota Wheat Commission (NDWC) and represents NDWC as a director of U.S. Wheat Associates (USW). Earlier in 2019, Phil joined three other farmers representing USW on a Board Team visit to the vibrant milling and wheat foods industries in the Philippines and Indonesia, both major destinations for the HRS wheat Volk Farms produces. He is also the Commission’s liaison to the Wheat Marketing Center and serves as the chairman of the SBARE Wheat Granting Committee.

Lisa and Phil Volk take the time to share their family’s story for USW’s video production crew on their farm in north central North Dakota.

USW wants to thank NDWC’s Erica Olson, Market Development and Research Manager, and Jim Peterson, Policy and Marketing Director, for their help arranging this important stop. And for giving their time and effort to share their story at one of the busiest times of their year, as well as for the crops they grow for the world, the Volk family deserves special thanks.

Capturing the ultimate reward for another year of effort on the Volk family farm near York, N.D., for a video production about the people who produce U.S. wheat for the world.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Quote of the Week: “There’s a real purpose in this job … there’s a calling when you’re working for an entire industry … I’ve made a lot of relationships and worked for some great companies in the ag space, but the opportunity to represent the U.S. farmer in foreign markets is really something that appeals to me.” – Ryan LeGrand, President and CEO, U.S. Grains Council quoted in an article in “Feed Navigator.com”.

Genetic Diversity Crucial to Wheat Supply. To safeguard food supplies and ensure durable disease resistance in wheat, scientists must embrace a globally integrated strategy that deploys resistance genes in a coordinated way, according to Maricelis Acevedo, associate director of science for the Delivering Genetic Gain in Wheat (DGGW) project in International Programs in Cornell’s College of Agriculture and Life Sciences. Read more in this article from the “Cornell Chronicle.”

Brazil Wheat TRQ to Open? Reuters reported Sept. 3 that the president of the Brazil’s wheat industry group Abitrigo said at a press conference that Brazil is expected to introduce a tariff-free wheat import quota of 750,000 metric tons per year starting from 2020. The report said Brazil announced the opening of the TRQ earlier this year in connection with President Jair Bolsonaro’s visit to the United States, with U.S. wheat producers seen as potential beneficiaries, although the policy has yet to be instituted. Read the story here: https://reut.rs/2ks5BU3.

Trade War Impacts. The folks who work at USW are big fans of Michelle Erickson-Jones of Montana or, as she is known on Twitter, @bigskyfarmher. In a recent article by Helen Santoro in “High Country News,” Michelle talks about the additional strain from trade issues on Montana farmers already hit hard by low crop prices. From the article: It may still be a while before producers like Erickson-Johnson turn a profit. “I would like to keep operating,” she said, but the trade war “definitely puts a little bit of a dimmer on the future of agriculture.” Read the entire article online at https://bit.ly/2jVlpyi.

Register for the 2019 World Food Prize Borlaug Dialogue International Symposium. The 2019 Symposium theme, “Pax Agricultura: Peace Through Agriculture,” will serve as an opportunity to take stock of the current state of global agriculture and food security. Learn more and register here.

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 page at https://www.facebook.com/uswheat for the latest updates, photos and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter at www.twitter.com/uswheatassoc and video stories at https://www.youtube.com/uswheatassociates.

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Scenes from the USW 2019 World Staff Conference

More than 90 U.S. Wheat Associates (USW) staff, stakeholders and customers recently came together in Barcelona, Spain, at what USW President Vince Peterson called the best World Staff Conference (WSC) the organization has held in many years.

The conferences provide a rare but valuable opportunity for USW overseas and domestic staff to meet in person and share challenges and opportunities associated with the organization’s mission to develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.

The 2019 conference included general sessions with all participants and breakout sessions focused on “Proving the Value of U.S. Wheat.” To help bring that theme to life, USW offices brought local wheat foods to share with participants. In addition, many of the sessions also examined and celebrated the significant contribution of veteran USW staff (including special recognition for colleagues who will be retiring in the relatively near future) and welcomed the next generation of people working on behalf of U.S. wheat farmers.

USW wishes to thank the USDA Foreign Agricultural Service for their support of the 2019 WSC and our ongoing work around the world. And we thank our state wheat commission members, our board of directors and many presenters from outside the organization for their contribution to the conference.

In addition to the group photo at the top of this page, here are several scenes from the conference.

Barcelona provided a wonderful backdrop to three full days of activity and learning at the USW 2019 WSC.

 

Joao Amorin Faria of Cerealis Internacional, Portugal, adds a note of humor to his general session presentation on the wheat performance needs of end use customers at the 2019 WSC.

 

USW Regional Technical Director Peter Lloyd shares his respected knowledge with participants in a breakout session focused on identifying competitive advantages of U.S. wheat.

 

The wide range of wheat foods produced using at least some portion of flour from U.S. wheat classes shown here and below added a tasty perspective on the presentations and discussions from the 2019 USW World Staff Conference.

 

 

 

 

 

 

 

 

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Drought-Fueled Production Losses in Australia Alter Global Wheat Trade

By Claire Hutchins, USW Market Analyst

Prolonged drought has severely impacted Australia’s wheat production and, as a result, contributed to a significant shift in world wheat trade. If current weather conditions in Australia persist, U.S. Wheat Associates (USW) believes these export trends could continue through marketing year (MY) 2019/20 and beyond.

According to USDA data, in the five years leading up to drought conditions that started in 2017, Australia exported an average of 18.5 million metric tons (MMT) of wheat per year. In MY 2016/17, Australian wheat production reached a record 31.8 MMT and exports reached 22.6 MMT, their highest level since MY 2011/12 (a significant portion of this volume was wheat exported for animal feed). In MY 2017/18, however, reduced supplies led to a sharp fall in Australian wheat exports to 13.8 MMT. In MY 2018/19, exports fell again to 9.0 MMT after Australian wheat production declined to 17.3 MMT.

Australia produces white wheats that compete effectively in regional bread applications, but most significantly in South and North Asian noodle markets. Even though there is no single U.S. wheat class with optimal characteristics for fine Asian noodle products, over many years, USW has provided technical assistance to millers and noodle manufacturers on blending of U.S. wheat or flour to optimize noodle quality and compete with Australian noodle varieties. In addition, U.S. hard red spring (HRS) provides a competitive option for higher protein flour needed in many markets to meet expanding demand for loaf bread products and hamburger buns.

USW believes that key customers have turned to the United States as Australian farmers struggle to produce enough exportable supplies. Between MY 2016/17 and MY 2018/19, for example, Australia lost market share in six of its top ten wheat export markets. Notably, Australian wheat exports to the Philippines, Indonesia, Vietnam and Malaysia declined while U.S. wheat exports to those countries increased in MY 2018/19.

Australian wheat’s share as a percent of total wheat imports in four key export markets has declined over the past two market years. Prolonged drought has significantly reduced exportable Australian supplies.

In MY 2019/20, USDA predicts Australian wheat production will rebound slightly to 21.0 MMT and exports are expected to increase to 12.5 MMT. Current USDA commercial sales data also show U.S. wheat exports to those four countries are ahead of last year’s pace.

U.S. farmers understand all too well the financial strain drought creates for their families and for end users of their wheat. Australian farmers must be concerned about whether their market share will rebound when the drought ends and supplies increase. That too is something U.S. wheat farmers, who have lost virtually all their market share in China under the current trade dispute, can understand. Market conditions change for all competitors. Ideally, that competition will continue to be carried out with the best interest of our shared customers and prospects in mind.

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“Breeding for Better Wheat” Illustrates Innovations  

Wheat is a staple of diets across the world. In fact, it is the source of about 20 percent of the calories consumed worldwide. Researchers at Kansas State University are using innovative methods like gene editing to breed wheat with added benefits, including lower gluten options that could one day allow people with gluten sensitivities to enjoy bread and other wheat-based foods.

U.S. Wheat Associates (USW) is pleased to share more information about plant breeding innovations in wheat in “Part 3 of the Plant Breeding Innovation” video series from the American Seed Trade Association and CropLife International. Click here to watch this informative presentation: https://bit.ly/2lB7zl3.

Produced by the American Seed Trade Association and CropLife International, “Breeding for Better Wheat” is next in a series on plant breeding innovations. To watch the video, visit https://bit.ly/2lB7zl3.

While the emphasis here is on innovative research associated with Kansas State University, state wheat commissions that are members of USW work closely with the Land Grant universities in their states to conduct similar public plant breeding programs. Private seed producers are also doing excellent work focused on improving both yield and functional characteristics of wheat.

USW is concerned that wheat production and harvested areas are on a long-term, downward trend around the world. Net returns per acre to farmers often favor other crops, and the differential is widening. An eventual supply and demand situation where smaller supplies of wheat are produced only in areas where more profitable alternatives do not exist will translate into supply challenges for the global food industry.

USW believes that these new technologies as well as on-going, conventional breeding methods benefit farmers, customers, and consumers, and will make positive impacts on the environment and the long-term health of U.S. agricultural land. To make this possible, USW urges the adoption of a nationally and internationally accepted definition of plant breeding innovation that clearly differentiates these methods from traditional biotechnology. The organization also advocates for international harmonization of scientific standards and trade rules.

For more information on USW’s positions on Innovation and Sustainability, visit the USW website at https://www.uswheat.org/policy/innovation-and-sustainability/.

The Genetic Literacy Project recently published this article on the role of plant breeding innovation in global wheat production: https://geneticliteracyproject.org/2019/08/29/crispr-and-other-new-breeding-techniques-could-be-key-to-unlocking-potential-of-global-wheat-production/.

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Columbia Snake River System Has a Crucial Role in Moving Grain to Port

Early in 2019, I attended a presentation given by the Executive Director of the Pacific Northwest Waterways Association (PNWA), Kristin Meira. In the audience were farmers eager to hear how U.S. legislators shared their interests regarding the ongoing navigability of the Columbia Snake River System. Open waterways are a crucial and efficient source for U.S. farmers to export their products to international markets.

The Columbia Snake River System is the leading gateway for wheat exports. The Columbia Rive alone barges 53% of U.S. wheat destined for export. The rivers can move more volume at once, with greater fuel efficiency, making them more effective for moving grain to market than by rail or truck. One barge can carry the same amount as 35 rail cars or 134 18-wheelers. A barge tow can carry more than one 100-unit train or 538 trucks. One barge can move a ton of wheat 647 miles per gallon while a truck can only move a ton of wheat 145 miles per gallon

A Voice for the River System

The PNWA is an active voice in promoting the benefits of keeping the river systems open for navigation. In their own words, the PNWA is a collaboration of ports, businesses, public agencies and individuals who combine their economic and political strength in support of navigation, energy, trade and economic development throughout the Pacific Northwest (PNW). The organization’s history dates back to the projects of the New Deal in 1934. The group, known then as the Inland Empire Waterways Association, petitioned President Roosevelt to fund a navigation lock along the Columbia River just east of Portland, Ore.

Since then, the PNWA has been a leader in securing Congressional authorization for the necessary funds to build another seven locks and dams along both the Snake and Columbia River. The PNWA also works hard to maintain and improve navigability. They advocate for deepening the draft and improving the jetties that allow safe passage into the Columbia River.

Conflicting Interests

The importance of the river system is not lost on the farming community. However, balancing the interests of environmental groups is difficult. Save Our Wild Salmon, an organization with the goal of increasing PNW wild salmon and steelhead populations, advocates for the removal of dams on the Snake River and expanded spillways on the remaining dams. They also want to modernize the Columbia River Treaty with Canada. These changes would include the river’s health as an equal portion of the treaty, which currently only governs energy production and flood management.

Many groups do not place value on the beneficial role that the dams have regarding grain transportation and clean renewable energy. The four dams on the Snake River power up to 800,000 homes while producing zero carbon emissions. Instead, environmental groups focus their argument on enhancing the railroad as a replacement for barge grain transportation. This tactic would take billions of dollars in infrastructure upgrades and would not be as efficient or as environmentally friendly

A Necessary Link

The value of the Columbia Snake River System as a transport hub from farm to market is the link necessary to connect the United States to its trading partners. The river system keeps U.S. wheat competitive by moving higher volumes at more efficient prices. The wheat associations that make up the tri-state region of Idaho, Oregon and Washington all support, through their PNWA membership and resolutions,  the ongoing navigability of the rivers system. There will continue to be controversy surrounding the river system and the rich ecosystem that they sustain. The shared interest between farmers, sportsmen, environmentalists, scientists and commerce are diverse. An organization like PNWA, which has spent more than 80 years advocating for an open river system, is the key to keeping it open for decades to come.

By Michael Anderson, U.S. Wheat Associates (USW) Assistant Director, West Coast Office

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Quote of the Week: “As we expand our understanding of the basic biological construction of food, [plant] breeders will deploy a greater variety of tools to identify and produce foods with attributes that can help feed the world as the climate, and thus our agricultural landscape, changes. “ – Mark McLellan, Vice President for Research and Graduate Studies, Portland State University, in “The Borlaug Blog.” Read more here.

2019 Borlaug Field Award for Scientists Under Age 40. The World Food Prize Foundation announced recently that Dr. Hale Ann Tufan, of Turkey, is the 2019 Recipient of the Norman E. Borlaug Award for Field Research and Application, Endowed by the Rockefeller Foundation. She is recognized for championing the incorporation of gender-supportive activities within the global agricultural research community, working across disciplines to ensure women farmers and scientists are fairly represented in the lab, in the field and at the table. Read more here.

Register for the 2019 World Food Prize Borlaug Dialogue International Symposium. The 2019 Symposium theme, “Pax Agricultura: Peace Through Agriculture,” will address the increasingly intersectional issues of food security, conflict and development. With topics ranging from diplomacy, climate, scientific innovation, and corporate leadership, this year’s Dialogue will serve as an opportunity to take stock of the current state of global agriculture and food security. Attendees will have access to 20 panel discussions and keynote addresses, 25+ breakout events, and opportunities to meet and network with experts, Laureates and leaders in food security and agriculture from over 40 countries. Learn more and register here.

New Wheat Variety for the Noodle Market. “Ryan,” the newest spring soft white wheat variety from Washington State University, is winning over Northwest farmers and grain buyers across the Pacific, thanks to its surprising ability to create an outstanding fresh noodle. “Ryan has hit harder and generated way more interest than anything I’ve done before,” said Mike Pumphrey, WSU’s O.A. Vogel Endowed Chair of Spring Wheat Breeding and Genetics. “What sets Ryan apart is its quite remarkable noodle quality.” Read more here.

Scientists Discuss Gene Editing and The Future Of Agriculture. “Diversity is needed for species to thrive and evolve in nature,” explains Dr. Amita Mohan, a professor of plant physiology at Temple University, quoted in an article on Innovature.com. “Variety is what leads to higher yield, disease resistance, stress tolerance and higher nutritional quality.” Mohan is using gene editing to spur diversity in wheat crop at a time where the crop’s yield is plateauing once again. Read more here.

IAOM-KSU Basic and Advanced Milling Principles. Through hands-on training in the Kansas State University milling facilities and classroom discussions at the IGP Institute, these two courses will further develop participants basic and advanced milling skills and understanding of the milling process. The IAOM-KSU Basic Milling Course will be held Oct. 7 to 11, 2019. Click here for more information about these courses and the IGP Institute.

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 page at https://www.facebook.com/uswheat for the latest updates, photos and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter at www.twitter.com/uswheatassoc and video stories

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Unfavorable Weather Delays U.S. Spring Wheat Harvest

By Claire Hutchins, USW Market Analyst

Though early April is the ideal planting window for U. S. hard red spring (HRS) wheat, saturated fields and cold soil temperatures kept many farmers out of their fields until late May or early June this year. The same precipitation and cool temperatures that delayed planting boosted early HRS development through mid-June and helped reduce concerns about late planting from central Montana to western Minnesota. Now, scattered precipitation and high humidity across the Northern Plains are preventing many farmers from entering their fields to begin the spring wheat harvest. According to USDA’s August 19 Crop Progress report, only 16% of the country’s spring wheat harvest was complete compared to last year’s 56% and the 5-year average of 49%. In spite of the delay, USDA rates 70% of U.S. spring wheat in good to excellent condition and an average yield of 49.2 bu/acre (3.30 MT/hectare), up from last year’s 48.3 bu/acre (3.25 MT/hectare). USDA predicts the country will produce 597 million bushels (16.2 million metric tons (MMT)) of HRS in 2019.

USW gathered some additional information from our stakeholders in HRS production states.

Minnesota. “It’s been a good year for wheat. The crop looks great and we expect above average yields and average protein levels despite delays,” says Charlie Vogel, Executive Director of the Minnesota Wheat Research & Promotion Council. Farmers in Minnesota, the second largest HRS-producing state in the country, are expected to harvest 91.7 million bushels (2.5 MMT) of wheat in 2019, down slightly from 2018 levels as reduced planted area offset increased expected yields. According to Vogel, Minnesota farmers have barely begun the spring wheat harvest due to scattered precipitation throughout the state. In an average year, farmers would be about 88% complete by now compared to the 14% reported by USDA. In the west, farmers are swathing their wheat in windrows to dry it out before combining. With a cool, dry weather forecast for the next 10 days, Vogel expects Minnesota’s harvest to progress nearly to completion by next week if dry conditions hold.

In Montana, the third largest HRS-producing state in the country, cold and wet soil conditions widened the spring planting window from mid-April to early June. A dry July helped farmers who were able to get their HRS in the ground early, but could hurt yields for late-planted HRS. The Montana spring wheat harvest has been “slow and frustrating” according to Cassidy Marn, Marketing Program Manager at the Montana Wheat & Barley Committee, as rainy, cold weather poured over the southern two thirds of the state around August 10. Marn believes these conditions have delayed the HRS harvest by about 3 days on average and by as much as two to three weeks in some places. Montana’s spring wheat harvest, at 20% complete, is far behind last year’s pace of 42% and the five-year average of 44%. When Montana’s farmers do complete harvest, they are expected to see an average 34.0 bu/acre (2.28 MT/hectare) in 2019, 2.0 bu/acre higher than last year’s yield, according to USDA. Montana’s HRS crop is expected to total 85.0 million bushels (2.31 MMT) this year, down 11% from last year as reduced planted area more than offsets increased expected yields.

North Dakota. “Spring wheat harvest had a sluggish start, but is beginning to accelerate. It is an above-average crop and we are waiting to see how rains impact harvest pace,” says Jim Peterson, Policy and Marketing Director at the North Dakota Wheat Commission. North Dakota is the largest HRS-producing state in the country and is expected to produce 320 million bushels (8.70 MMT) in 2019. Cool, wet weather delayed spring wheat planting but boosted yield potential in the central and southern part of the state. In north-central North Dakota, HRS yields could be lower than USDA’s predicted 50.0 bu/acre (1.36 MT/hectare) due to unusually dry conditions that affected the crop throughout the summer. As of August 18, only 12% of the state’s HRS was harvested compared to 55% last year and the 5-year average of 43%. Peterson predicts the state’s HRS harvest could take off in the next couple of days if a pocket of cool, dry weather rolls through the state.

South Dakota. According to Reid Christopherson, Executive Director of the South Dakota Wheat Commission, “HRS harvest is extremely delayed. Unfortunately, the crop is ready to harvest; however, moisture and mud in the fields have stalled progress. Extreme humidity and frequent rains have allowed only a few hours of harvest per day when field conditions permit access.” Only 27% of the state’s HRS harvest is complete compared to last year’s 89% and the 5-year average of 75%. Based on early harvest data, South Dakota HRS test weights and protein levels look good, but continued moisture throughout the harvest could reduce kernel color. USDA expects South Dakota HRS yields to increase 12% over last year to 42.0 bu/acre (2.82 MT/hectare), but production is expected to fall 10% year-over-year as reduced planted area offsets increased expected yields.

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