Rediscover Wheat - July 2015

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The official publication of the Kansas Wheat Commission and the Kansas Association of Wheat Growers

JULY 2015

INSIDE THIS ISSUE

Harvest 2015 National Festival of Breads Winner Nigerian Millers Visit Kansas Wheat Harvest Wheat Foods Council Names New President

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Volume 2 • Number 7 www.rediscoverwheat.org The official publication of

In This Issue :

1990 Kimball Avenue Manhattan, Kansas 66502 (785) 539-0255

KAWG MEMBERSHIP $100 per year

EDITOR

Marsha Boswell • mboswell@kswheat.com

ASSISTANT EDITOR/DESIGNER

Audrey Schmitz • commintern@kswheat.com

CONTRIBUTORS

Julia Debes • jdebes@kswheat.com Jordan Hildebrand • jhildebrand@kswheat.com

CEO

Justin Gilpin • jgilpin@kswheat.com

KAWG OFFICERS PRESIDENT Michael Jordan • Beloit

VICE PRESIDENT Kenneth Wood • Chapman SECRETARY/TREASURER Justin Knopf • Salina IMMEDIATE PAST PRESIDENT Gary Millershaski • Lakin

KWC OFFICERS

CHAIRMAN Jay Armstrong • Muscotah VICE CHAIRMAN Brian Linin • Goodland SECRETARY/TREASURER Mike McClellan • Plainville IMMEDIATE PAST CHAIRMAN Scott Van Allen • Clearwater

Rediscover Wheat is published by the Kansas Association of Wheat Growers (KAWG) and the Kansas Wheat Commission (KWC), 1990 Kimball Avenue, Manhattan, Kansas 66502, twelve times per year.

Contents of this publication may not be reprinted without permission.

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Harvest 2015 Nigerian Millers Visit Kansas Wheat Harvest NFOB Finalists Tour Kansas Wheat Industry Recipe: Smokehouse Cranberry Cheese Bread Pennsylvania Bread Baker Wins National Festival of Breads Baking Competition

10 IGP Institute Stakeholder News Brief 12 Recipe: Whole Wheat Sugar Cookies 13 News from the National Association of Wheat Growers 20 Wheat Foods Council Names New President 21 News from U.S. Wheat Associates 30 Maltby Market Analysis 36 Upcoming Events

June 28

2015 Harvest Reports June 28

June 23

Lane County farmer Ron Suppes reports a 40 bushel an acre average where his wheat crop was not hit by hail. Spots with hail damage may average 15-20 bushels an acre. Since last week’s rains missed Suppes’ area, he reported that test weights have remained steady at around 62 pounds per bushel.

Off to a good start, Kansas Wheat Commissioner David Radenberg says his harvested wheat in Barton County is a lot better than last year’s.

His WB-Cedar/Armour blend is yielding about 50 bushels per acre with test weights ranging from 59 to 61 pounds per bushel.

Jared Wendelburg, a Stafford County farmer, relayed the difference just a few miles can make. Averages from the ground south of Highway 50 were around 30 bushels per acre while the average north of Highway 50 was around 50 bushels an acre.

Test weights however have taken a hit from recent rains and have hovered around 58 pounds per bushel.

June 24 Kyle Kaiser, Bushton, explains, “We have not had a terrible year, but we have had some bad fields.”

Even though the Kaisers sprayed fungicide, they have seen a loss due to rust and barley yellow dwarf.

Even with the disease loss, Kaiser is averaging 47-52 bushels per acre with test weights averaging from 61-63.5 pounds per bushel.

June 21 David Janzen, a Butler County farmer, is reporting a high average yield of around 60 bushels per acre in his family’s fields. While the Janzen family just started harvest, test weights so far have been running slightly above the average of 60 pounds per bushel and weed pressure has been at a minimum.

June 21 Haviland farmer Denton Clark said that this year’s crop was a “nice change of pace” from last year’s harvest. While he says that the stand is thin, the heads are large and filled to the “tip top.” While yields have been above average for Clark, it didn’t always look that way.

According to Clark, after stripe rust had been spotted in the area, fungicide that was applied has “definitely paid off.”

June 28

June 21 Janice Gates reports that her family, and many others, began a late start to harvest season near Anthony due to wet conditions. While the yields have exceeded expectations, test weights have been at 57 pounds per bushel. Gates also reported 1011% moisture content.

Crawford County farmer Jim Michael reports that area farmers are facing mud after last week’s rains. Yields in the area are extremely variable, with Michael reporting outliers of 30 and 70 bushels per acre. Test weights are running in the mid50’s to the low-60’s.

June 22 Reno County farmer Jenny Burgess said that they are seeing “30 bushels an acre heads on what should be 60 bushels an acre straw.” Burgess attributes the lower yields to stripe rust. Burgess also reported test weights on their operation are at 60-61 pounds per bushel and they're seeing 11 percent moisture.

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Nigerian millers visit Kansas wheat harvest Nigerian mill managers visit a Kansas wheat farm during harvest near Wilsey, in Morris County wenty-one members of the Nigerian flour milling and noodle/pasta manufacturing industries traveled to Kansas during wheat harvest to learn more about the Kansas wheat industry and use their newfound knowledge to make purchasing decisions for their companies.

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Eight senior managers from Nigeria visited Kansas on June 25-26 to examine the current hard red winter (HRW) crop as part of a U.S. Wheat Associates (USW) trade team. USW believes this annual event helps maintain a loyal customer base in a traditionally large market.

In addition on June 18-26, 13 Nigerian flour millers were attending the two-week Nigerian Flour Milling course at the IGP Institute in Manhattan, Kan. As 4

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a major U.S. partner with the Nigerian milling industry, Kansas State University’s IGP Institute annually hosts the Nigerian Flour Milling course in conjunction with U.S. Wheat Associates.

Year-to-year, Nigeria buys more U.S. HRW than any other country.

Nigerian millers imported 58.4 million bushels of hard red winter wheat last marketing year.

The United Nations predicts that Africa — and Nigeria in particular — will have a larger population than the United States by 2050. Emannuel Mshelia, of Royal Mills & Foods Ltd., said, “With population growth, there is more eating. With more eating, there is much buying of U.S. wheat.” Mshelia was on his third trip to the United States and attended the IGP Institute course.

The trade team’s Kansas visit included stops at the Kansas Wheat Innovation Center, USDA’s Center for Grain and Animal Health Research, IGP Institute and a Kansas wheat farm near Wilsey, as well as time with grain merchandisers.

“U.S. Wheat Associates and our state wheat commission member organizations built long-term demand for U.S. wheat in Nigeria by providing information and technical support,” said Muyiwa Talabi, marketing consultant with USW based in Lagos, Nigeria.

“This is our fifteenth annual trade team from Nigeria since 2001 and it is still a key part of our work in an important market where we face new challenges.”

In Nigeria, instant noodles are an increasingly popular source

of nutrition for more than 170 million people. Combined with bread, cookies and crackers and pasta, per capita consumption of wheat foods in Nigeria has more than tripled since 1995.

Nigerian flour is used predominately to make a dense, high volume loaf of bread.

Nigerian flour millers are looking for wheat able to withstand variable conditions and produce the same high quality loaf of bread time and again.

Kansas hard red winter wheat is a great match.

In addition to bread, Nigerians eat more instant noodles than anyone else outside of Southeast Asia. Why? Because as more Nigerians move from rural areas to urban ones, they are looking

for a more convenient, nutritious food source. U.S. Wheat Associates, with assistance from Kansas Wheat, helped introduce this product in the market.

manage it,� said Gerald Theus, assistant regional manager for Sub-Saharan Africa with USW who is based in Cape Town, South Africa.

Today, instant noodles made with HRW wheat are so popular that every milling company produces them, even though the product was a foreign concept just a decade ago. Indomie, the largest producer of instant noodles in Nigeria, can make up to two million boxes of instant noodles every month.

Theus and Talabi led this trade team visit. Accompanying the IGP Institute group on the trip was Cathy Marais, an accountant for U.S. Wheat in Nigeria.

“In an increasingly competitive market, those customers still benefit from, and appreciate, the support USW provides including the chance to see the new U.S. wheat crop and learn about its supply chain from the people who

Kansas Wheat, together with U.S. Wheat Associates, continually works to strengthen the relationship between Kansas wheat farmers and Nigerian flour millers through annual trade team visits and specialized courses at the IGP Institute. Through these activities, Nigerian millers know Kansas farmers will have the wheat they want, year after year.

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NFOB Finalists Tour of Kansas Wheat Industry

By Julia Debes ight finalists traveled from coast to coast to Manhattan, Kansas, to compete in the National Festival of Breads. Before the competition started, however, Kansas Wheat arranged a farm to flour tour for contestants. Aaron Harries, Kansas Wheat vice president of research and operations, served as the tour’s emcee as the finalists and accompanying Speak for Wheat spokespersons traversed I-70.

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Farmer Direct Foods Flour Mill The finalists’ first stop was Farmer Direct Foods flour mill in New Cambria, Kansas. The cooperative mill only grinds whole wheat flour, although they do source both hard red winter (HRW) and soft red winter (SRW) wheat.

The mill uses four 30-inch granite stones to produce stoneground, whole wheat flour for companies like King Arthur Flour. The mill can grind 150,000 pounds of flour each day.

Ron and Shirley Suppes, Kansas Wheat commissioner and farmer for Farmer Direct Foods, joined the tour and talked with finalists about how Farmer Direct works to source wheat through contracts and protein premiums when possible. He also discussed how Farmer Direct has a high level of traceability and is able to trace each bag of flour back to the farmers’ fields from where it originated.

Kejr Farm After working up an appetite at the flour mill, finalists next were treated to a lunch sponsored by Hy-Vee at the Kejr farm in Brookville, Kansas. During the meal, farmers Joe and Geena Kejr showcased their no-till operation, which includes a rotation of wheat, corn, soybeans and grain sorghum.

Despite sprinkles and mud, the contestants explored Kejr’s equipment, including two combines, tractor and grain cart and sprayer. Joe’s nephew even flew his drone around the farm to demonstrate its capabilities.

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Cargill Ag Horizons Following the same route the Kejrs will take to deliver their wheat in coming weeks, the finalists next visited the Cargill Ag Horizons elevator in Salina, Kansas. The largest grain elevator in Kansas, the facility can hold 32 million bushels and can load out one million bushels, equal to 1,000 trucks, a day.

The Cargill facility was originally built during the Cold War as part of long-term food security efforts.

Today, the concrete silos can each hold 60 trucks worth of grain or 60,000 to 70,000 bushels a piece.

The elevator utilizes a RFID smart truck system to more effectively move trucks through the elevator.

Kansas Wheat Innovation Center The final stop on the finalists’ tour was the Kansas Wheat Innovation Center, located across from Bill Snyder Family Stadium on the north campus of Kansas State University. The building represents the largest farmer investment in wheat research in Kansas and includes a state-of-the-art test kitchen as well as 15,000 square feet of laboratory space and 10,000 square feet of greenhouses.

Smokehouse Cranberry Cheese Bread National Festival of Breads 2015 Grand Champion Lisa Keys, Kennett Square, Pennsylvania

Ingredients

Directions

1. In small bowl, whisk together yeast, water, and maple syrup.

Wait 5 to 10 minutes for mixture to foam (proof ).

2. In the bowl of a stand mixer fitted with paddle, blend together butter and tofu until mixture is light and fluffy, about 2 minutes. Scrape sides of bowl as needed.

3. Beat in eggs one at a time.

Stir in cheese, salt, pepper, yeast mixture, and 4 cups of flour; blend well. Exchange paddle for dough hook.

4. Mix in cranberries and gradually add enough remaining flour until a soft dough forms.

Knead dough until smooth and elastic, about 8 minutes on low to medium speed. Place dough

in greased bowl, cover, and let rise until doubled, about 1 hour.

5. Deflate dough and divide in half. Shape into 6” to 7”round loaves, and place into two buttered 9”round cake pans.

Cover; let dough rise until doubled, 40 to 45 minutes. Near the end of the rise, preheat oven to 400°F. Uncover and with a sharp knife or lame, make a ¼”deep “X” slash across the top of each loaf.

6. Bake 25 to 27 minutes until golden brown, tenting with aluminum foil to prevent excess browning. An instant-read thermometer inserted into the middle of the loaf should register about 200°F. Remove from oven, and after a few minutes turn loaves out onto a rack to cool.

2 (¼ ounce) packages RED STAR® Quick·Rise™ Yeast 3 tablespoons (1 ounce) warm water (110°-115°F) 2 tablespoons (1 ounce) maple syrup 1 cup (8 ounces) unsalted butter, softened ½ cup (4 ounces) silken tofu 4 large eggs 2 cups (6 ounces) shredded smoked Gouda or smoked Cheddar cheese 1 teaspoon salt ½ teaspoon ground black pepper 4 ½ to 5 cups (19 to 22 ounces) King Arthur Unbleached Bread Flour, divided 1 cup (5 ounces) sweetened dried cranberries

Nutrition Information

(1 slice, 35g): 120 calories, 6g fat, 0g fiber, 3.5g saturated fat, 0g trans fat, 13g carbohydrates, 32mg cholesterol, 95mg sodium, 4g protein, 0mg vitamin C, 1mg iron, 36mg calcium.

Yield: 2 loaves, 22 servings each.

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Pennsylvania Bread Baker wins National Festival of Breads baking competition isa Keys of Kennett Square, Pennsylvania, is the grand prize winner in the 2015 National Festival of Breads baking competition, sponsored by King Arthur Flour, Red Star Yeast and the Kansas Wheat Commission.

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Judges selected Keys’ Smokehouse Cranberry Cheese Bread from among eight finalist recipes baked at the public competition on June 13 in Manhattan. The National Festival of Breads is the nation’s only amateur bread-baking competition.

Keys’ Smokehouse Cranberry Cheese Bread was entered in the competition’s “Time-Saving and Simple Breads” category.

Keys said, “Memories of visits with my in-laws in Quechee, Vermont, inspired this bread. My mother inlaw always had smoked cheeses from the local farmer and fresh-made maple syrup tapped from trees in town. She was also into healthy foods and introduced me to tofu in delicious breakfast smoothies. This bread honors all of her goodness.”

Keys’ blog, Good Grief Cook, is dedicated to celebrating her son William, who passed away four years ago. For Keys, her time spent cooking is therapeutic as well as tasty and she said she hopes the recipes and memories shared provide strength and support to others who have lost a loved one.

“What I’ve learned is that the grief is never going away,” she said. “I wanted to celebrate the amazing son that he was and show people a positive way to deal with grief.”

Keys is also a “Chopped” champion. She won a Mother’s Day episode of the Food Network show that challenged competitors to create tasty dishes using ingredients like chicken noodle soup, neon-colored breakfast cereal and chocolate body paint.

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As the 2015 National Festival of Breads champion, Keys received $2,000 cash, plus a trip to attend a baking class of her choice at the King Arthur Flour Baking Education Center in Norwich, Vermont. In addition, she will receive a supply (120 envelopes) of Red Star Yeast.

Judges for the event were Zoë François, author of “Artisan Bread in Five Minutes a Day;” Dr. Kadri Koppel of Kansas State University’s Sensory Analysis Center; Jenny Dewey Rohrich, Prairie Californian blogger; and Steven Young, Hy-Vee Bakery manager in Manhattan.

“It was a difficult decision because all of the breads were incredibly different and all held their own merit,” said Rohrich. “Our judging really came down to which bread scored well in all the different categories. The winning bread brought forth the best balance in flavor, but also had great depth of flavor.

“It had incredible workmanship and texture along with ease of preparation. As judges we all agreed, this is a bread we can't wait to make in our own homes.”

The recipe is available at http:// nationalfestivalofbreads.com/cheesebread.

In addition to the competition, the National Festival of Breads featured educational baking demonstrations, children’s activities, bread tasting and more. This was the fourth biennial event, and barbecue demonstrations and sampling were added this year. The nearly 1,000 attendees brought nonperishable food items as admission to the National Festival of Breads, which were donated to the Flint Hills Breadbasket, a community food network in Manhattan to help alleviate hunger and poverty. The King Arthur Bake Truck, part of the Bake for Good program, also handed out treats, collected financial donations and donated all of their

breads baked during the festival to the Flint Hills Breadbasket. In total, more than 654 pounds of food was donated to the Flint Hills Breadbasket.

At the evening National Festival of Breads Awards Banquet, the finalists’ breads were auctioned off with proceeds split between the Flint Hills Breadbasket and Stop Hunger Now, a partner organization of sponsor Red Star Yeast. Together, Stop Hunger Now and Red Star Yeast have launched the “Baking the World a Better Place” campaign to raise awareness of chronic hunger issues and provide meals around the world. About $3,500 was raised to benefit the two organizations.

The finalists for each category and special award winners included: Ethnic: Felice Bogus, Raleigh, North Carolina – Chickpea-Stuffed Aleppo Flatbreads; Mary Hawkes, Prescott, Arizona – Cheddar ‘N’ Chiles Accordion Bread; Rolls: Merry Graham, Newhall, California – Curry and Chia Onion Buns; Amy Meiers, Santa Rosa, California – Rosemary Cardamom Twisters; Whole Grains: Ronna Farley, Rockville, Maryland – Crunchy-Topped Coconut Almond Bread; Patrice Hurd, Bemidji, Minnesota – Peppered Parmesan Veggie Bread; Time Saving and Simple: Jane Fry, Elk Falls, Kansas – Chocolate Swirl Loaves; Lisa Keys, Kennett Square, Pennsylvania – Smokehouse Cranberry Cheese Bread;

Additional information about the 2015 National Festival of Breads, including the finalists’ recipes and a complete list of sponsors, is available at NationalFestivalofBreads.com.

King Arthur Flour is not only the nation’s oldest flour company, it is the single largest educator of home bakers in the world. Founded in 1790 and employee-owned since 1996, the company conducts free baking classes nationwide for both adults and children, and offers a wide variety of hands-on baking classes at its Baking Education Center in Vermont.

King Arthur Flour’s fundamental mission is to be an education and product resource for, and inspiration to, bakers worldwide. More information is available at kingarthurflour.com.

For more than a century, home bakers have trusted the high quality and consistent performance of Red Star®, SAF® and bakipan® Yeast, made by Lesaffre, the world leader in yeast technology. Their mission is to take the fear out of baking with yeast. More information is available at redstaryeast.com.

The Kansas Wheat Commission is a farmer-funded and governed promotion organization working to secure the future of Kansas wheat globally and domestically through research, promotion, marketing and education.

Kansas wheat farmers support the Kansas Wheat Commission with a voluntary 2 cent assessment on each bushel of wheat produced in Kansas. For more information, log onto kansaswheat.org.

Youth Category: Ellie Sapat, Falmouth, Maine – Wild Maine Blueberry Banana Nut Bread; Best Recipe Using Soy Ingredients: Merry Graham, Newhall, California – Kale-Goat Cheese Artisan Olive Bread; Best Recipe Using C&H® or Domino® Sugar: Mary Shivers, Ada, Oklahoma – Orange Scented Cream Cheese Kolaches; Best Recipe Using White Whole Wheat Flour: Jennifer Beckman, Falls Church, Virginia – ButtermilkScallion Flatbreads.

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February June 2015

STAKEHOLDER NEWS BRIEF Moving the Mission Moving the Mission ThisAfter Mayaand June, above average whirlwind February, rainfall has flooded Kansas. it is apparent to me that the Similarly, ancurve aboveisaverage number learning steep and of visitors, participants and the familiarization process will activities have into the IGP continue forpoured quite some time.

Institute.

My initial impression of the IGP MyInstitute highlightand wasthe theDepartment seventh of Grain Science and Industry annual Nigerian Flour Milling is that these are special of dedicated course sponsored

by U.S.places, Wheatfull Associates and several professionals, truly committed to investing in the from future state wheat commissions with my newest friends of our state, country world.

As technology Nigeria.

Although theyand were delayed 36 hours inevolves, Chicago traditional of distance, culture, by weatherboundaries and cancelled flights, the courseeconomics was finally and accessibility soften allowing our education held.

It included an afternoon enjoying harvest and combine outreachrides missions withto the have Kejreven family, greater a visitimpact. to the Cargill Grain Facility in Salina and a tour of the Ardent Knowledge and self -improvement are becomingFlour key Mill in Newton, Kansas. the finaland day,businesses the Nigerian enablers that allow On individuals to trade reach team hosted bypotential.

Aaron Harries of end, Kansas joined their optimum To this theWheat, IGP Institute the course for lunch. appears uniquely suited to provide meaningful training Mark Fowler Gordon Smith

through innovative approaches across an expanding In addition to the flour milling course, two other on-site range of critical offerings. trainings were held. Shawn Thiele along with Carl Hahn, Buhler, Inc. led the Buhler-KSU Executive Milling training for 14 participants. Also, Carlos Campabadal hosted a

In the Spotlight In the Spotlight

Derek Marcotte • Administrative Secretary for U.S. • MillerWheat with Prairie Flour Mills, Elie, Flour Associates and Nigerian Manitoba, Canada Milling course participant • Completed two flour millingright distance ”I’ve enjoyed everything from the courses and enrolled in a third training beginnning. Everyone here at IGP has Shittua lot about quality control from cleaning the “ISeyi haveSola learned given us a warm reception.” wheat to creating a better overall product.”

Trainings and Activities

Courses and activities held in June.

• AFIA-NGFA-KSU Establishing HACCP course • Buhler-KSU Executive Milling course (English) • U.S. Wheat Associates Nigerian Flour Milling training

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HACCP course in partnership with AFIA and NGFA for the feed industry.

As my indoctrination into the IGP Institute and its mission continues, forward toD.C. meeting many of Jay O’Neil traveled Itolook Washington, to conduct you and continuing the dialog around how every a course for the USDA Foreign Agricultural Servicepart of the enterprise market preference, consumption department as can partdrive of the training of agriculture officers posted in U.S. Embassies around theand globe. and utilization of U.S. cereal grains oilseeds. It is indeed my honor to be a part of this team and our Dirk Maier and Carlos worked to advance the mission of commitment to continual improvement in all that we do. the USAID-funded Post-Harvest Loss Innovation Lab by I welcome your input and I can be reached at glsmith@ traveling to Honduras and Guatemala. Dirk addressed the ksu.edu and 785-532-3503. issue of post-harvest loss and food waste as an invited speaker at the BASF Sustainable Food System Symposium in Chicago. Meanwhile, Carlos traveled to the Dominican Republic to conduct a training course with USSEC. Sincerely, Please read the rest of this newsletter to learn more about all the activities taking place at the IGP Institute.

Gordon Smith IGP Institute Director Mark Fowler Associate Director and Technical Miller, IGP Institute

Trainings and Activities Courses and activities held in February • AFIA 500 – Fundamentals of Feed Manufacturing • GEAPS 521 – Aeration Systems Design and Fan Operational Management • GEAPS 530 – Quality Management Systems • GEAPS 542 – Electrical Safety • GEAPS 544 – Preventing Grain Dust Explosions • GEAPS 600 – Overview of Milling Principles U.S. Wheat Associates Nigerian Flour Milling participants and Kejr Farms workers pose in front of a combine during wheat harvest. Participants rode along in the combines and tractors.

Rediscover WH AT | JULY 2015 1980 1980E Kimball Kimball Avenue, Avenue, 102 102 IGP IGP Institute Institute Conference Conference Center Center || Manhattan, Manhattan, KS KS 66506–7000 66506–7000 ||Tel. Tel. 785-532-4070 785-532-4070 || Fax Fax 785-532-6080 785-532-6080 || www.grains.k-state.edu/igp www.grains.k-state.edu/igp || igp@ksu.edu igp@ksu.edu

Scott Kohl, Chief Financial Officer for White Energy and course participant, checks a gauge as part of a hands on Buhler-KSU Executive Milling (English) course.

Andreia Bianchini, University of Nebraska, and co-leader of the Guatemala project, demonstrates a hand-held John Deere moisture meter to a small holder farmer.

Where in the World

Marketing the Brand

A monthly look at where we’ve been as we make our way around the globe promoting U.S. commodities and IGP Institute training opportunities.

• Conducted feed manufacturing training with USSEC in Santiago, Dominican Republic.

by Lisa Moser, Marketing and Communications Coordinator • Updated commissions on fourth quarter activites of the IGP Institute.

• Spoke on post-harvest loss and food waste at the BASF Sustainable Food System Science Symposium in Chicago, Illinois.

• Traveled to Honduras to visit USAID and the University of Zamorano as part of the USAID Reduction of Post-harvest Loss Innovation Lab. • Worked on Reduction of Post-harvest Loss Innovation Lab project in Guatemala.

• Developed the Meet the Instructor column on course pages featured on the website.

• Completed post-course promotions for June offerings. and pre-course publicity for future trainings.

• Gathered video footage for upcoming course promos.

• Began developing a regional marketing packet to support targeted course promotions.

Post-Harvest Loss Update

by Dirk Maier, Senior Post-Harvest Engineer Post-Harvest Loss Innovation Lab team members recently traveled to Honduras and Guatemala. At the University of Zamorano in Honduras, we met with students conducting research and outreach work in crop protection, food safety and post-harvest loss prevention of perishable crops. Students are challenged with projects that involve real-world interaction with smallholder farmers and agribusiness companies.

In Guatemala, a prototype dryer at a smallholder farm located in the western mountains was tested at an altitude around 7,500 feet. Students from a local university built a dryer based on provided designs and included a corncob burner to increase the drying air temperature. Ear corn from the previous harvest had been hand-shelled by the farmer in advance of the test. Thanks to a moisture meter provided by the John Deere Foundation, we were able to demonstrate the actual moisture content of the corn. Previously, the farmer estimated moisture content by whether salt stuck to the kernel surface or how corn sounded when dropped on concrete. After an adventurous journey on a single lane gravel road up the mountain with occasional on-coming traffic, we set the system up and operated it for three days. We were able to collect useful data and learned a lot about the performance of the dryer. As a result, we are redesigning the system in preparation for fall harvest when multiple units will be deployed to dry ear corn at a dozen smallholder farm sites.

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Whole Wheat Sugar Cookies Celebrate National Sugar Cookie Day on July 11th by baking these delicious Whole Wheat Sugar Cookies!

Nutrition Information Prep Time: 15 minutes Bake Time: 10 minutes Yield: 24 cookies Per cookie: 74 cal, 3 g fat, 13 mg chol, 59 mg sodium, 12 g carbo, 1 g fiber, 1 g pro, 1 mcg folate.

Ingredients

2 cups whole wheat flour 1 teaspoon baking powder 1/2 teaspoon baking soda 1/2 teaspoon salt 1/2 teaspoon ground nutmeg 1/2 cup butter or margarine 1 cup granulated sugar 1 egg 1 tablespoon grated orange peel 1 teaspoon vanilla extract 2 tablespoons low-fat milk Topping 1/2 teaspoon ground cinnamon 2 tablespoons granulated sugar

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Directions

1. In small bowl, stir together whole wheat flour, baking powder, baking soda, salt and nutmeg. Set aside.

2. In a large mixing bowl, beat butter or margarine with an electric mixer on medium to high speed for 1 minute.

Add the granulated sugar; beat mixture until combined.

Stir in egg, orange peel and vanilla; beat mixture until well combined.

3. Stir in the flour mixture and milk just until combined.

4. Shape into 1-inch balls and place on ungreased cookie sheet 2 inches apart. Flatten slightly with bottom of a glass dipped in topping mixture.

5. Bake cookies in a preheated 375 degrees F oven 8 to 10 minutes or until golden brown. Transfer cookies to a wire rack to cool.

News from : NAWG Weekly Updates June 4, 2015 NPDES Fix Reintroduced in Senate Senators Crapo (R-ID) and McCaskill (D-MO) reintroduced legislation to end the need for a National Pollution Discharge Elimination System (NPDES) permit for certain pesticide applications. “NAWG applauds the introduction of this legislation that would bring regulatory clarity on pesticide applications and we urge the Senate to pass the bill,” said NAWG President, Brett Blankenship, wheat grower from Washtucna, Washington.

“Growers are stewards of the land. Farmers are the original environmentalists. We follow application guidelines established by the EPA when applying any crop protection product to our field.”

Pesticide applications are regulated by the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) with restrictions listed on the FIFRAapproved label. Since 2011, an additional Clean Water Act NPDES permit has been required for certain pesticide applications.

Those found out of compliance could be subject to daily fines.

The legislation introduced would eliminate the need for the Clean Water Act permit, but retain the FIFRA regulation and any appropriate use restrictions on the label.

NAWG Comments on Conservation Compliance Rule The U.S. Department of Agriculture issued its conservation compliance rule for federal crop insurance premium support. The rule is available http://www.regulations.gov/# !documentDetail;D=USDA -2015-0001-0001 for review and comment; the 60-day public comment period ended on June 23, 2015. Throughout this process, USDA stressed the importance of the June 1 deadline for submitting the AD-1026 form. NAWG has heard concerns from producers about implementation of these requirements for crop insurance premium support eligibility, particularly since the Risk Management Agency (RMA) has not been involved with processing AD-1026 forms. To convey those concerns, NAWG joined with a broad coalition of agriculture,

lending, crop insurance, and conservation organizations in submitting comments seeking clarification on the rule.

The comments ask USDA to reconcile differences between FSA and RMA records to ensure there is clear and effective communication between the agencies, the Approved Insurance Providers and companies; to clarify whether producers would be able to cancel or reduce a policy if they are found to be out of compliance after the sales closing date; to clarify the treatment of land purchased after the June 1 AD-1026 submission deadline; to clarify the treatment of crop insurance products that are made available after June 1; and to clarify the exceptions that are offered for producers who begin farming after June 1.

House Agriculture Committee Reviews Foreign Ag Subsidies The House Agriculture Committee held a hearing to explore the structure and extent of agricultural subsidies in other countries. The Committee heard from Craig Thorn, a partner with DTB Associates in Washington, Rediscover 2015 13 Rediscover WH WHEE AT AT || JULY JULY 2015 13

D.C., and Dr. Darren Hudson, Director of the International Center for Agricultural Competitiveness (ICAC) at Texas Tech University. DTB Associates had conducted a study sponsored

by U.S. Wheat Associates and the USA Rice Federation quantifying the degree to which several other countries subsidize their agricultural industries, including China, India, Brazil, Turkey and Thailand. His testimony similarly addressed how other countries are subsidizing production to levels outside of their WTO commitments and are not transparent in terms of reporting their subsidies. Dr. Hudson’s testimony included information about ICAC’s database, which ranks countries’ support programs, in terms of exceeding their trade commitments.

According to this database, the United States’ system of subsidies and tariffs is low on the list.

NAWG has been following this issue closely, and will continue to defend crop insurance and the new Title 1 programs included in the 2014 farm bill. Additionally, NAWG continues to believe that we need a level playing field in the world market in order to be able to compete fairly. This hearing provided an opportunity for Members of Congress to get a sense of the degree to which other countries are violating their WTO commitments as well as a better understanding of the enforcement mechanisms available through the WTO. Additional information about the hearing, including links to witness testimony, can be found at http://agriculture.house. gov/press-release/committeeagriculture-reviews-agriculturalsubsidies-foreign-countries.

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House Holds Hearing on Financial Health of Farm Country NAWG attended the House Subcommittee on General Farm Commodities and Risk Management hearing on the financial health of farm country.

The hearing included a panel of farmers and state commodity organization leaders and an economist. Witnesses discussed the increase in agricultural risk, while commodity prices have decreased and market pressures have intensified. Farmers today are battling more than weather conditions and market prices.

Witnesses were also troubled by foreign trade policies. The combination of these issues creates stress on the future of American agriculture. Crop insurance protects farmers from price variation. However, it does not serve as the security blanket for foreign trade market protection. Members also raised concerns about area-wide trigger programs.

Each witness spoke on behalf of the current land prices and rental agreements in their home states and all agreed that prices boil down to the tenant-landowner relationship. All witnesses said that agreements will be adjusting due to the current market and land prices have been softening.

NAWG Concerned about EPA Actions on the RFS The Environmental Protection Agency finally released the renewable volumetric requirements for the Renewable Fuels Standard (RFS) for 2014, 2015, and 2016. EPA’s decision to lower the requirements below the levels set by Congress is

concerning to NAWG for the precedent it sets for developing additional biofuels markets.

This action sends the wrong signals for future investments into next generation biofuels.

NAWG supports the RFS and other programs that will spur production of renewable fuels utilizing biomass, such as wheat straw and other agricultural byproducts. The EPA proposal is open for public comment until July 27 and the Agency held a public hearing in Kansas City on June 25.

June 11, 2015 NAWG members are strongly encouraged to contact your Members of Congress urging them to support TPA. Trade Promotion Authority is necessary for concluding trade agreements, including the Trans Pacific Partnership (TPP).

Around half of America’s wheat crop is exported – access to our international markets is absolutely critical for the agricultural economy.

A vote for TPA isn’t itself a vote for TPP – TPP negotiations aren’t finalized, and if the President is granted Trade Promotion Authority, any final trade deal would still have to receive an up or down vote by Congress before it could be enacted.

If the U.S. doesn’t participate in trade negotiations, our trading partners will set the rules and we’ll be left behind.

Support for TPA is support for American agriculture and industry.

House Passes Grain Standards Act Reauthorization On June 9, the U.S. House of Representatives approved by voice vote H.R. 2088, the United States Grain Standards Reauthorization Act. The House version of the reauthorization would require that in instances where state-delegated agencies intend to disrupt services, that agency must provide notice to the U.S. Department of Agriculture (USDA) 72 hours in advance of the disruption. If that advance notice is given, USDA would be required to resume services within 6 hours; if no advance notice is given, USDA would then have 12 hours to resume inspections. If USDA is unable to do so, the export elevator would be able to request inspection services from any other delegated or designated state agency. Additionally, the bill would require USDA to review the delegation of that state agency’s authority and make a determination as to whether or not the agency should retail that authority moving forward.

The Senate Agriculture Committee has also marked up its own reauthorization bill. The Senate version of the bill would also require 72 hours notice by a state delegated agency that intends to temporarily stop providing inspection services, but it would require USDA to immediately take actions that are necessary to address the disruption, rather than allowing for another delegated or designated state agency step in. The bill would also require USDA to establish a transparent certification process for state-

delegated agencies within a year of enactment, as well as require certification every five years.

withdraw the waters of the U.S. regulation that was released on May 27.

Time for floor consideration in the Senate has not yet been scheduled. Following House action on its bill, NAWG sent a letter with other ag groups to the leadership of the Senate Agriculture Committee urging the Senate to act. To view the letter go to http://www. wheatworld.org/wp-content/ uploads/GrainjointletterUSGSA15-0610.pdf. The letter also discussed the importance of timely Federal Grain Inspection Service (FGIS) intervention when a state-delegated agency is unable to inspect, the importance of maintaining state-delegated authority and establishing a certification process, and the need for a mechanism for USDA to provide security services for FGIS personnel during situations like what occurred at the Port of Vancouver last summer. The legislation approved by the Senate Agriculture Committee addresses the concerns of the signing organizations.

The Waters of the U.S. Regulation does not provide clarity to growers about the waters that will be under the jurisdiction of the Clean Water Act. NAWG has continued to express these concerns as well as concerns about the inclusion of the prairie pothole region and other waters as “regional treasures” and the expanded jurisdiction over these waters.

NAWG continues to be active in ensuring that the flow of grain through our export ports can continue uninterrupted during operational disruptions.

NAWG Applauds Senate Committee Approval of Water Bill The Senate Environment and Public Works Committee approved S. 1140, the Federal Water Quality Improvement Act. NAWG supports the bill, which would require the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to

House Subcommittee on Conservation and Forestry Discusses Conservation Programs The U.S. House Subcommittee on Conservation and Forestry held a hearing that discussed the implementation of the conservation programs included in the 2014 Farm Bill. Natural Resources Conservation Service (NRCS) Chief Jason Weller testified in addition to Farm Service Agency (FSA) Administrator Val Dolcini.

Administrator Val Dolcini discussed the Conservation Reserve Program (CRP). Citing that the 2014 Farm Bill mandates that non-easement functions of the repealed Grassland Reserve Program be carried out under CRP, with enrollment of up to 2 million acres authorized. These enrollments count against the statutory CRP acreage cap. In addition, the farm bill mandates changes to routine, prescribed, and emergency grazing, managed harvesting frequency, tree thinning payments and other provisions. Administrator Val Dolcini reassured the Committee that rulemaking to implement Rediscover 2015 15 Rediscover WH WHEE AT AT || JULY JULY 2015 15

those changes is well underway, as is the process to complete the National Environmental Policy Act requirements.

The second panel included conservation stakeholders from the National Association of Conservation Districts, USA Rice Federation, Lancaster Farmland Trust and Pheasants Forever. Chairman Thompson (R-PA) was also concerned with communication flow between the agencies and producers especially in regards to the USDA’s June 1 self-certification deadline.

NWF Chairman Encourages Wheat Growers to Participate in Yield Contest In a post on The Word on Wheat blog, National Wheat Foundation (NWF) Chairman, Dusty Tallman, urges wheat growers to participate in the National Wheat Yield Contest that will begin later this year (NWYC).

“The NWYC, a new program of NWF, is an opportunity for all U.S. wheat growers to help enhance the quality and quantity of the U.S. wheat crop.

I encourage my fellow wheat growers to take advantage of this national competition to showcase your individual abilities to produce the best quality wheat in the world. The NWYC will help increase U.S. wheat grower productivity to ensure an ample supply of quality U.S. wheat to reliably meet the needs of the domestic wheat market and our valued foreign customers.

Through the generous support of NWYC founding and crop protection partner BASF, and equipment partner John Deere, seed partner Monsanto and 16 16

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agronomic services partner WinField, NWF is able to launch this new knowledge-sharing competition to America’s wheat growers this fall.”

“We are very appreciative of our industry partners helping our NWF grower-leaders fund, design and create this program for our growers across the U.S. Through their support, we hope to drive innovation in the industry, enable knowledge transfer between growers, encourage the use of available technology and identify top wheat growers in each state who will compete for the top five national winter wheat and spring wheat winners.”

Visit http://wheatfoundation.org/ nwf-chairman-encourages-fellowgrowers-to-participate-in-nwyc/ to read the complete article.

June 18, 2015 House Passes Trade Promotion Authority Efforts to reauthorize Trade Promotion Authority (TPA) have taken multiple turns. The House passed legislation to reauthorize TPA; however, the House also voted down a bill to reauthorize Trade Adjustment Assistance (TAA). The rule for consideration required that both bills pass in order to move forward. House leadership subsequently took procedural steps to allow for a re-vote on the TAA bill up until July 30.

However, on June 17, House leadership also took steps to allow for a separate vote on a TPA-only measure. Today the House voted on the measure, which passed 218-208. The Senate would now have to vote on the stand-alone measure. Additionally, part of

the overall strategy includes the Senate attempting to attach TAA to a separate trade preferences bill. NAWG continues to engage Congress concerning the importance of reauthorizing Trade Promotion Authority as quickly as possible in order to enable the Administration to continue Trans-Pacific Partnership (TPP) negotiations.

NAWG President Brett Blankenship issued a statement following the vote. “Providing our trade negotiators with the tools to finalize trade negotiations is critical to keeping America in the lead on trade talks and wheat growers at the table. Support for TPA is support for American agriculture. I’m hopeful that Congress can finish this process quickly and send this important legislation to the President’s desk.”

Go to http://www.wheatworld. org/news-events/2015/06/wheatgrowers-applaud-tpa-passage/ for the complete statement.

Senate Ag Appropriations Committee Considers FY 2016 Spending Bill The Senate Agriculture Appropriations Subcommittee, chaired by Congressman Robert Aderholt (R-AL), marked up and approved by voice vote its version of the FY 2016 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill today. The bill would provide $20.7 billion in discretionary spending, which would represent a 1 percent reduction from the FY 2015 enacted level, and it is $1.1 billion less than the Administration’s budget request.

The text of the bill can be viewed at http://appropriations.

house.gov/uploadedfiles/bills114hr-sc-ap-fy2016-agriculturesubcommitteedraft.pdf. The “bill report” has not yet been made publicly available; as such, details related to wheat-specific research programs in the bill are not yet known.

The bill includes a provision that would prohibit USDA from restricting premium assistance related to conservation compliance for crop insurance eligibility for the 2016 reinsurance year. The intended purpose of the language is not to unravel conservation compliance requirements, but rather to allow for additional time for implementation in order to address concerns posed by producers. If enacted, implementation would continue to move forward, but producers would not be penalized for noncompliance during this first year. The Senate Appropriations Committee has not yet acted on its own version of the FY 2016 Agriculture Appropriations bill, but NAWG expects consideration could occur soon.

Appropriations Bills Address Clean Water Rule The Senate Appropriations Subcommittee on Interior and Related Agencies including a provision in the fiscal year 2016 funding bill that would prohibit the EPA from implementing the regulation redefining the waters of the U.S. under the Clean Water Act. This provision is similar to a provision included in the House version of the bill. The House Appropriations Committee also approved their bill related to funding for the EPA this week.

Annual funding bills must be

passed and signed into law by the end of September to fund the government for next fiscal year.

The waters of the U.S. regulation, released on May 27, has not yet been published in the Federal Register, but it is expected to be printed in the next week or two. Once officially printed, a 60-day Congressional Review period starts and the regulation will become effective at the end of the 60 day period. NAWG supports these appropriations bill provisions and legislation to that would require EPA and the U.S. Army Corps of Engineers to withdraw the regulation.

House Subcommittee Highlights Need for Safe and Accurate Food Labeling Act NAWG issued a statement applauding the House Energy and Commerce Health subcommittee for holding a hearing on the Safe and Accurate Food Labeling Act. “The current situation of individual states having unique labeling requirements is not workable or sustainable. NAWG supports facilitating interstate commerce by having a common labeling rule set by Congress. We are pleased the bill is receiving bipartisan support,” said NAWG President, Brett Blankenship, wheat grower from Washtucna, Washinton.

The Safe and Accurate Food Labeling Act will ensure that food labeling in the United States is consistent across state lines and based on sound science.

The bill increases coordination between the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA), guaranteeing that our nation’s foremost experts on

food and agricultural safety are in charge of labeling decisions.

Go to http://www.wheatworld. org/news-events/2015/06/nawgapplauds-house-subcommitteefor-highlighting-need-for-safeand-accurate-food-labeling-act/ to read the full statement.

NWF Launches 2015 Wheat Harvest Photo Contest The National Wheat Foundation is proud to sponsor a photo contest recognizing wheat farmers and showcasing this year’s harvest season. “We are excited to announce the 2015 Wheat Harvest Photo Contest,” said NWF Chairman and Colorado wheat farmer, Dusty Tallman.

“We want to commemorate this year’s harvest and thank America’s wheat farmers by inviting all to enter our photo contest.” Entering the photo contest is simple. Email your best 2015 wheat harvest picture to kbullerman@wideopenthinking. com. Photos will be posted on the National Wheat Foundation’s Facebook page. The Foundation directors will vote to determine the winning photo. All photos must be received by August 28, 2015. The NWF Directors will be awarding four winners. First place will receive an iPad and three runners up will receive a 50-dollar gift card. The winning photos will be displayed in the Wheat Growers office in Washington, D.C. Go to http:// wheatfoundation.org/wheatharvest-2015-photo-contest/ for more information on how to submit a photo.

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Farm Foundation Explores the Future of Land Grants NAWG attended the Farm Foundation Round Table in Columbus, Ohio. Over 200 participants and speakers addressed the current relevancy and focus of the “land grant” system of colleges and universities established in 1862, discussed their future role, and commented on ways they could provide more benefits to society in general and to agriculture specifically. The Farm Foundation Round Tables provide a forum for farmers, tech provider senior executives, university deans, national ag media, political advisors and private industry to discuss off the record the issues impacting our nation’s ability to produce food and fiber. In combination with the discussion of the future of the land grant university system, the participants also discussed the future of agricultural research, the overlapping of human and animal health, farmers’ expectations of university extension outreach.

Participants also went on a tour of The Ohio State University’s integrated food research area and ongoing wetlands studies. Kansas wheat grower, Jay Armstrong, completed his two-year term as chairman of the Farm Foundation at this meeting.

June 25, 2015 TPA Moves to the Finish Line In the last step of an extensive process, the Senate passed legislation to reauthorize Trade Promotion Authority (TPA) on a 60-38 vote. The bill now heads to the President for his signature.

This final vote followed multiple rounds of consideration by both 18 18

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the House of Representatives and the Senate, and required that the Senate also vote on a separate trade preferences bill that would carry a provision to reauthorize Trade Adjustment Assistance (TAA), a worker retraining program to assist those who lose their jobs as a result of trade agreements. The House approved the TAA reauthorization bill, which now goes to the President for his signature.

Following the vote on TPA, NAWG President Brett Blankenship released a statement. “Wheat farmers commend the Senate and the House of Representatives for renewing their commitment to trade and reauthorizing Trade Promotion Authority. This TPA vote reaffirms America’s commitment to expanding agricultural trade and provides the tools necessary to develop strong trade relationships that are crucial to the success of the U.S. wheat industry.” Go to http:// www.wheatworld.org/newsevents/2015/06/wheat-growerscommend-trade-commitment/ for the complete statement.

Senate Passes Legislation to Reform the Surface Transportation Board On June 18, the Senate passed the Surface Transportation Board Reauthorization Act of 2015 (S. 808) by unanimous consent. The legislation contains several important changes to the structure of the Board, including an increase in its membership from three to five members; transparency requirements to ensure the reporting of the nature and disposition of complaints considered by the Board; the

establishment of a voluntary arbitration process to resolve disputes; and the new ability of the Board to initiate investigations without having to wait for a formal complaint to be filed.

The House of Representatives has not yet considered its own reauthorization bill.

House Agriculture Committee Reviews Food Aid On June 25, the House Agriculture Committee held its first hearing reviewing U.S. international food aid efforts.

USAID’s Acting Assistant Administrator for the Bureau for Democracy, Conflict and Humanitarian Assistance Thomas Staal and USDA’s Foreign Agriculture Service Administrator Phil Karsting testified at the hearing.

The two testimonies requested additional flexibility in the Food for Peace program to include cash and vouchers systems. In his opening statement the Chairman stated, “it is prudent that we monitor the outcome of this added flexibility over the life of the Farm Bill to get a better sense of what is working and what needs to be improved.” The Committee leadership made it clear they wish to monitor the recent changes and keep the discussion of the future of the program in the context of the next Farm Bill. You can find testimonies and view the hearing at http://agriculture.house. gov/hearing/full-committeeagriculture-%E2%80%93-publichearing-review-us-internationalfood-aid-programs.

NAWG Joins Global Food Security Letter NAWG signed onto a letter sent to the Chairmen and Ranking Members of both the House and Senate Agriculture and Foreign Affairs/Relations Committee addressing global food security.

In the letter, commodity groups and international development organizations raised the issue that “by 2050, the world’s population is projected to grow by 30 percent, from 7.1 to 9.2 billion, and food demand will rise by as much as 60 percent.” The groups expressed the need to continue a whole-of-government approach to food security, emphasizing the importance of coordination with USDA and US agriculture to achieve increased agriculture production. Read the full letter at http://www.wheatworld.org/ wp-content/uploads/Importanceof-Agriculture-in-Global-FoodSecurity-Letter.pdf.

of Fame. WOLF is a national board member and state senior staff orientation program conducted by the National Wheat Foundation with funding provided by Bayer CropScience.

NAWG Attends BASF Symposium & 150th Anniversary NAWG Treasurer David Schemm attended the BASF Sustainable Food Chain from Field to Table Science Symposium and BASF’s 150th anniversary

celebration in Chicago, IL. The symposium highlighted ongoing scientific research and included focused sessions on enhancing crop yield, plant science and food science. The science and chemistry needed to meet the demands a growing population was a common theme. BASF is the crop protection and founding partner of the National Wheat Foundation (NWF) National Wheat Yield Contest that launches early this fall.

NAWG Participates in Ag Relations Council Annual Meeting The Agricultural Relations Council (ARC), which is comprised of communications and industry relations professionals, held its annual meeting this week in Denver, Colorado. Participants discussed Colorado’s marijuana crop, pollinator health, crisis management and social media utilization measurement. They also had the opportunity to tour a JBS beef plant and examine global food production issues.

At this week’s meeting, 2015 Wheat Organization Leaders of the Future (WOLF) program presenter Steve Drake was inducted into the ARC Hall Rediscover 2015 19 Rediscover WH WHEE AT AT || JULY JULY 2015 19

Wheat Foods Council Names Tim O’Connor As New President The Wheat Foods Council (WFC) announced that Tim O’Connor, president and CEO, Tim O’Connor Associates, Centennial, Colo., has been named president of the organization, effective June 15, 2015. O’Connor replaces Judi Adams, MS, RDN, who retired at the end of June.

In making the announcement, WFC Chair Erica Olson, North Dakota Wheat Commission, stated, “We are extremely pleased to bring a top caliber industry leader with expertise in agriculture as well as marketing to the Wheat Foods Council.

Tim has an outstanding record of achievement and will build on the Council’s reputation as a sciencebased resource on wheat and wheat food nutrition.”

She also thanked Judi Adams for her many years of service to the organization as well as to the wheat industry as a whole.

“Judi’s long-time association with agriculture, as well as her credentials as a registered dietitian, played a key role in making the Wheat Foods Council 20

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what it is today,” said Olson. “We will miss her dedication, energy and commitment and wish her the very best in retirement.”

O’Connor’s background is firmly grounded in agriculture and marketing. Prior to launching his own consulting firm, O’Connor worked as CEO of Avocados from Mexico, a start-up marketing agency created to build demand for Mexico’s avocado production.

From 1999 to 2013, he served as president and CEO of the United States Potato Board, where he successfully positioned the organization as one of the leading produce marketing organizations. He also is a past executive vice president and CEO of the Illinois Beef Association.

“I am very excited about being part of the Wheat Foods Council and look forward to building on the organization’s strong foundation,” commented O’Connor.

The Wheat Foods Council is a nonprofit organization formed in 1972 to help

increase public awareness of grains, complex carbohydrates, and fiber as essential components of a healthful diet. The Council is supported voluntarily by wheat producers, millers, and related industries. For more information, visit www.wheatfoods.org.

News from : June 4, 2015 A Wheat Marketing Year in Review

By Casey Chumrau, USW Market Analyst Marketing year 2014/15 ended May 31 and proved to be another record setting year for wheat in several key categories. Production, supply and total consumption all hit record levels. However, quantity came at the expense of quality in many regions around the world and high protein wheat was in very short supply.

Improved production in China and Argentina, combined with a strong U.S. dollar, resulted in lower U.S. exports.

This year saw higher production in the European Union (EU), Russia and China that offset lower production in the United States, Canada and several other major suppliers. USDA estimates the 2014/15 global wheat crop reached a record 726 million metric tons (MMT), up 1 percent from the previous record of 715 MMT set in 2013/14. The higher production, coupled with a 6 percent increase in carry-in stocks, put global wheat supplies at a record 913 MMT, up 20.6 MMT from 2013/14, according to USDA’s calculation.

The production scenarios were very similar in most of the major wheat producing countries in

the Northern Hemisphere in 2014/15. Crop conditions in the United States, Canada and Black Sea region were promising before untimely rain hit just before harvest, which significantly diminished crop quality and reduced protein levels. In the EU, cool, wet weather throughout the growing season boosted yields and resulted in record production.

However, the majority of the crop had low protein and poor overall quality. France, the EU’s top wheat producer, was the country most severely impacted by poor quality.

Strategie Grains estimated just 64 percent of France’s 37.5 MMT crop reached milling quality, compared to a three-year average of close to 90 percent. In contrast, hot and dry conditions in the U.S. Pacific Northwest stressed the white wheat crop, resulting in higher protein in a class favored for its low protein content.

China and Argentina both harvested more wheat in 2014/15 than the prior year, causing a shift in global demand. Following multiple years when consumption outpaced production, China looked to the world market to replenish diminished government wheat stocks, buying 6.77 MMT in 2013/14, the most since 1995/96. On top of the added supply, China produced a record crop of 126 MMT in 2014/15. According to USDA, this exceeded the estimated

consumption of 124 MMT, causing imports to drop to half of the five-year average at 1.5 MMT. Argentina’s crop of 12.5 MMT in 2014/15 was closer to its historical average after two consecutive years of small output.

In 2012/13 and 2013/14, the government restricted exports to a combined 5.8 MMT, putting its Mercosur trading partners in a tough spot. Brazil had to turn to the United States to help meet its annual 7.0 MMT import demand.

These restrictions gave the United States a 68 percent market share in 2013/14, compared to a 7 percent average in the five years prior. Thanks to the larger crop, Argentina recovered some of its market share in 2014/15 when the government authorized 5.5 MMT for export. USDA anticipated a shift back to more normal trading patterns in 2014/15, with China relying on domestic production and Brazil relying on Argentina that would result in significantly lower U.S. exports. Initial estimates by USDA last May put 2014/15 U.S. exports at 25.9 MMT. However, a steady increase in the strength of the U.S. dollar toward a 12-year high, hindered exports even more over the course of the year. This further reduced the competiveness of U.S. wheat, which already holds a premium over competitors. Coincidentally, USDA estimates that 2014/15 exports fell to a 12-year low of WHEE AT AT || JULY JULY 2015 2015 21 21 Rediscover WH

23.4 MMT, but it is interesting to note that because of its quality, variety and the reliability of its supply, customers in many countries continue to import U.S. wheat at a steady rate.

Despite record consumption of 716 MMT, 2014/15 total global trade fell an estimated 2 percent from the record set in 2013/14 to 162 MMT. However, global exports were still 11 percent above the five-year average.

Records in all major supply and demand categories have been broken many times in the past ten years, including three new records in 2014/15. The trend is likely to continue as we look forward to 2015/16 and beyond.

USW Harvest Reports Provide Timely Information on Quality For farmers and their customers, there is a timeless value in knowing that another wheat harvest is underway. USW Harvest Reports are an excellent way to read weekly updates and comments on harvest progress, crop conditions and crop quality for hard red winter (HRW), soft red winter (SRW), hard red spring (HRS), soft white (SW) and durum wheat. USW posted its first report on the 2015/16 crop on May 28.

A lengthy period of rain in the southern and central plains, and cooler than normal temperatures has delayed the HRW harvest and provided favorable conditions for plant disease development.

While it is too early to identify what impact that might have, Harvest Reports provide timely information wheat buyers will need this year. The long-range weather forecast shows little chance of rain, so the harvest 22 E AT | JULY 2015 22 Rediscover RediscoverWH WHE AT | JULY 2015

pace should pick up. Generally, the rain helped improve the potential supply of this year’s crop and provided desperately needed moisture after several years of drought (http://droughtmonitor. unl.edu/).

harvest. To get insight directly from the custom harvest crews as the combines roll north, visit “High Plains Journal” and its “All Aboard Wheat Harvest” blog at http://www.allaboardharvest. com/.

According to USDA’s latest National Agricultural Statistics Service (NASS) report, all winter wheat (HRW, SRW, SW) is in better condition this year compared to the 2014/15 crop on this date last year. Late last week, NASS rated about 44 percent of this year’s winter wheat crop as good or excellent compared to 30 percent last year. Comparing poor to very poor ratings, this crop stood at 20 percent compared to 44 percent on this date last year.

Vietnam Promising for U.S. Wheat Exports, But TPA and TPP Are Needed

Looking further ahead, NASS reported that by May 31, 91 percent of the 2015/16 U.S. spring wheat crop was up and growing.

That is well ahead of last year when just 64 percent had emerged and beats the five-year average by nearly 30 percentage points.

Early planting reflected dry and relatively warm conditions this spring. A colder weather pattern set in a few weeks ago, but 88 percent of the crop currently rates as fair to good with 8 percent rated excellent.

The global demand for high quality wheat continues to grow and customers know that U.S. wheat producers deliver every year. It is good to know that U.S. wheat stocks are plentiful; yield potential is generally at or above average and U.S. wheat value remains high.

Stay informed about the 2015/16 crop as USW posts its Harvest Report every Friday afternoon at http://www.uswheat.org/

By Ben Conner, USW Assistant Director of Policy By now, everyone paying attention to international trade has heard of the massive TransPacific Partnership (TPP). The ambition of the agreement is to create the largest, most comprehensive free trading bloc in history. Japan’s involvement may get the lion’s share of attention in TPP negotiations, but another very important TPP partner that may be easily overlooked is Vietnam.

The desire to forge new trading relationships between countries is strong. It is remarkable to think that two countries at war with each other only 40 years ago are now on the verge of signing an agreement that would make them the closest of trading partners.

Since the formal restoration of relations twenty years ago, trade between the United States and Vietnam has grown to nearly $35 billion.

Vietnam has achieved an average economic growth rate of 6.8 percent per year since 1990.

Its population will roughly equal Japan’s by 2050. A 2014 Pew Research Center survey asked citizens of more than 40 countries if most people would be better off in a free market economy, and in Vietnam, the answer was a

resounding yes with 95 percent agreeing. Compare that to only 70 percent in the United States who agree. With a rapidly growing economy and a large population that is committed to open markets, Vietnamese millers and bakers along with U.S. farmers can expect robust demand growth in the coming decades.

Vietnam imports an average of 2.0 MMT of wheat per year.

Approximately 75 percent of that comes from Australia, used to make wheat noodles that are popular in Vietnam. However, many countries increase their purchases of bread wheat and lower protein soft wheat as their economies grow and Vietnam has done the same. Sales of U.S. wheat to Vietnam in 2014/15 were a record 273,000 MT, two-and-ahalf times greater than last year and the five-year average.

USDA projects a 40 percent increase in wheat imports by Vietnam in the next 10 years, but the availability and cost of wheat will largely depend in part on U.S. government policy.

Specifically, it depends on the ability of the U.S. Congress and Administration to come to an agreement on Trade Promotion Authority (TPA), which the House of Representatives is debating this month. If Congress fails to approve TPA, it would put the entire TPP agreement at risk.

Other countries are not waiting to see if TPP will make it across the finish line. Australia recently signed a free trade agreement with Vietnam and other Southeast Asian countries, which will provide duty-free access to Australian wheat exports by next year. This past week,

leaders of the Eurasian Economic Union (including Russia and Kazakhstan) signed a trade agreement with Vietnam. These agreements will soon give Russia, Kazakhstan, and Australia, three of the largest wheat exporters, duty-free access to the Vietnam market. If Congress cannot pass TPA, and TPP flounders as a result, U.S. farmers could lose out on market opportunities because Vietnamese wheat buyers will have to pay more for the highquality U.S. wheat they have just learned to admire.

Value-Added Traditions Continue with 2015 U.S. Wheat Trade Teams

By Amanda J. Spoo, USW Communications Specialist Consistency, trust and quality are essential to good business relationships, particularly for U.S. wheat farmers who annually produce enough to export about 50 percent of their crop. To help strengthen those cornerstone characteristics, USW and its state wheat commission members connect U.S. farmers directly with their customers through annual trade team visits — allowing them to shake hands, share meals and have a firsthand farm experience.

Every year from spring to early fall, USW organizes trade team visits to learn about U.S. wheat production and marketing systems. Accompanied by their regional USW representative, participants range from millers and bakers to grain purchasers, traders and executives. Each team’s itinerary and experience is unique, but all center on giving overseas customers the opportunity to ask questions, build relationships and learn

why the United States has the most reliable export supply in the world.

Trade teams visit wheat farms and university plots that grow the classes of wheat important to their markets, taking the opportunity to discuss crop conditions with the farmer or hear from wheat breeders on future varieties. They also tour elevators and export facilities, meeting with industry representatives to observe grain grading and inspection procedures.

There are currently 14 USW trade teams planned for 2015, representing at least 12 countries.

According to USDA’s May 21 Weekly Export Sales Report, these countries represent 55 percent of total 2014/15 U.S. commercial wheat sales.

Time and experience have proven the success of these team visits to the participants and U.S. wheat farmers. Some countries recognize a long-term value in the teams they send, such as the Nigerian Trade Mission and the Japanese Executive Millers, making their visits an annual occurrence.

In 2009, a Chilean Trade Mission traveled to Portland, OR, to tour port facilities and meet with grain trade association members. Upon returning to Chile, two of the largest mills on the mission immediately purchased three combined cargoes (up to 100,000 MT) of SW and HRW wheat from the Pacific Northwest (PNW). Chile has continued to be the number one SW buyer in South America.

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good results in building and strengthening the confidence that Chilean wheat buyers and millers have in U.S. wheat,” said USW Santiago Office Assistant Regional Director Osvaldo Seco.

“Consequently, in 2010 and 2011 Chile imported 99 percent and 94 percent of its total wheat requirements from the PNW, respectively.”

In addition to sales, trade team visits help build valuable relationships. In 2013, a European Durum Trade Team met with Desert Durum® traders in California. One participant from Italy, Intergrain CEO Marco Percossi, formed contacts that led to a follow-up meeting later that year in Italy between the Arizona Grain Research and Promotion Council and seven Italian durum milling and pasta manufacturing companies.

“Trade teams help our overseas customers get closer to the market,” said USW Rotterdam Office Marketing Specialist Rutger Koekoek, who recently spoke at the International Grain Summit in Italy by invitation from a 2014 trade team participant. “When I travel, I continue to meet new contacts and have the opportunity to capitalize on the value of a faceto-face conversation. Trade teams are the foundation of building those relationships.”

In 2015, trade team visits will cover 16 states, as well as the District of Columbia. In addition to funding from USDA/Foreign Agriculture Service (FAS) market development programs, state wheat commissions support these trips through their checkoff dollars. They also help organize itineraries and accompany the 24 24 Rediscover RediscoverWH WHEEAT AT| |JULY JULY2015 2015

team traveling in their state, playing an essential role in the traditions of trade teams and their history of success.

results of this competition will reinforce our reputation as the world’s most reliable supplier of wheat.”

“Interaction with farmers is one of the biggest benefits of hosting a trade team,” said Kansas Wheat Commission Director of Communications Marsha Boswell. “These buyers appreciate the interaction they get with the Kansas farmers who produce that wheat. Their visits also give us the chance to promote the quality and reliability of Kansas and U.S. wheat.”

NWF will launch this new knowledge-sharing competition this fall. That is possible with generous support from NWYC founding and crop protection partner BASF, equipment partner John Deere, seed partner Monsanto and agronomic services partner WinField.

To read more about each team as visits continue throughout the year, visit www.uswheat.org/ newsmeetings.

New Yield Contest Encourages Wheat Innovation

By Hugh Whaley, Director of Corporate Relations, National Wheat Foundation The National Wheat Yield Contest (NWYC), a new program of the National Wheat Foundation (NWF) in the United States, is an opportunity for all U.S. wheat growers to help enhance the quality and quantity of the U.S. wheat crop. Wheat growers will take advantage of this national competition to showcase individual ability to produce more of the best quality wheat in the world.

“The contest will help increase U.S. wheat grower productivity to ensure an ample supply of quality U.S. wheat to reliably meet the needs of our valued overseas customers and the domestic wheat market,” said NWF Chairman Dusty Tallman, a Colorado wheat grower. “The

Tallman said NWF growerleaders appreciate industry partner assistance with funding, designing and creating this program. Through sponsor support, NWF hopes to drive innovation in the industry, encourage growers to share information, encourage the use of available technology and identify top wheat growers in each state who will compete for the top five national winter wheat and spring wheat winners.

The NWYC is modeled, in part, after a successful 50-year old National Corn Yield Contest (CYC) of the National Corn Growers Association (NCGA).

That contest has helped boost U.S. corn production exponentially.

In fact, NCGA has determined that it takes about 10 years for the CYC winner’s yield to become the national corn yield. NWF believes wheat growers will see similar results with the focus to improve quality and yield encouraged by the NWYC. NWF envisions a marked increase in both production and profitability for growers over the next five years.

NWF grower-leaders and the NWYC industry partners firmly believe competition brings out the best in growers and sets the

stage for the industry as a whole to take that next step. Being able to compete on an equitable basis, compare best practices and turn data into usable insights is key to ensuring the viability and future of U.S. wheat production.

Wheat Industry News Nebraska Farmer Elected Plains Grains Chairman.

Nebraska Wheat Board District 3 Director Larry Flohr of Chappell was recently named chairman of Plains Grains Inc. Flohr, a past USW director, is a certified wheat and millet seed dealer and corporation president of V&F Farms. Plains Grains, Inc. is a nonprofit organization that provides quality characteristics and production data on HRW wheat production from 12 states to foreign and domestic millers and grain purchasers. A board of directors representing Colorado, Idaho, Kansas, Montana, Nebraska, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Washington and Wyoming guides the organization.

The Alliance to Feed the Future launched a new mobile responsive design and update for its website. The site has new features highlighting the organization’s mission to “raise awareness and improve understanding of the benefits and necessity of modern food production and technology in order to meet global demand.”

This includes a live Twitter feed, a prominent top navigation bar and an index of resources.

Visit the site at http://www. alliancetofeedthefuture.org/.

Wheat Industry Leader Plans to Retire From Farming. After 30 years of farming, Randy Suess, Washington Grain Commission board member and farmer from Colfax, WA, recently announced that he plans to retire after this year’s harvest. Suess has had a long-standing leadership role in the industry, including serving as a USW director and as chairman in 2011-2012. “He was very articulate and one of the better speakers that I’ve ever worked with,” said Tom Mick, former CEO for the commission.

“That went over very well at seminars and programs we put on around the world.” Read more at http://www.capitalpress.com/ Washington/20150524/wheatindustry-leader-plans-to-retirefrom-farming.

Four Weeks Left to Register for IGP Institute Risk Management Course.

Understanding the importance of risk management within trading markets is crucial to the security of a company's financial future. Individuals interested in expanding their knowledge of marketplace challenges are encouraged to take advantage of this two-part course, held August 2 to 7 in Manhattan, Kansas.

Registration closes on July 2. For more information or to register, visit www.grains.ksu.edu/igp.

NCI Rheology of Wheat and Flour Quality Course.

Registration closes July 1, 2015, for this short course at the Northern Crops Institute July 21 to 23 in Fargo, ND. The course will focus on wheat and flour quality, and effective analysis of rheological results. For more information or to register, visit www.northerncrops.com/courses2/.

Wheat Marketing Center Whole Grain Summit PreMeeting Workshop. This whole grain product workshop held June 22 to 23 at WMC in Portland, OR will offer a hands-on experience to produce different types of popular products with whole-grain raw materials and functional ingredients. For more information or to register, visit http://wholegrainsummit2015. com/pre-meeting-workshop/.

June 18, 2015 Inconsistent Weather Conditions Generate Crop Quality Concerns

By Casey Chumrau, USW Market Analyst In the May 7 edition of “Wheat Letter,” I discussed how timely rain in the United States and abroad could boost global production potential. Some said that April rain showers in Texas, Oklahoma and Kansas saved the winter wheat crop from drought disaster, but sometimes you must be careful about your wishes. In the past 30 days, vast parts of those states received between 6 and 15 inches of precipitation, causing serious and widespread flooding. Weather is always a major, unpredictable factor in grain production and so far this year, it has challenged wheat farmers. In the coming weeks and months, persisting or additional weather events could affect wheat prices.

Most of the Central and Southern U.S. Plains received above-average rainfall in the last month, eliminating drought conditions that plagued the region the last three years. Nevertheless, excessive moisture and flooded Rediscover 2015 25 Rediscover WH WHEE AT AT || JULY JULY 2015 25

fields could diminish yield potential. Winter wheat crop condition ratings slightly declined the last two months but avoided a major downgrade thus far. As of June 14, USDA rated 43 percent of the winter crop as in good or excellent condition, down just 1 percent from the April 6 rating.

The percentage rated poor or very poor increased from 6 percent to 22 percent. In Texas and Oklahoma, the ratings fell slightly more, leaving farmers in need of a turn in the weather.

The wet conditions have already delayed the start of soft red winter (SRW) and hard red winter (HRW) harvest, with significant delays reported in Arkansas, Illinois, Kansas Missouri, North Carolina and Oklahoma. As of June 14, USDA reported that farmers have cut 11 percent of the crop, below the five year average of 20 percent. The concern is that the longer mature wheat stays in the field the more risk to the soundness of the crop, helping push prices higher. Additional delays could make U.S. supplies less competitive, but current weather forecasts are better and farmers are hopeful they will be back in their fields soon.

Some climate experts blame the atmospheric phenomenon known as El Niño for the excessive U.S. rain. El Niño affects regions differently, causing rain in one area such as the U.S. central plains and drought in another like in Australia, where it normally dries out farmland. This week, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) lowered its 2015/16 wheat production forecast by 800,000 metric tons (MT) to 23.6 million metric tons (MMT), citing El Niño’s drought effects.

26 26 Rediscover RediscoverWH WHEEAT AT| |JULY JULY2015 2015

Similarly, crop conditions in Europe and Russia began to slip slightly the past few weeks amid dry conditions. Following a low quality year, it is expected that with additional rain, overall crop quality will rebound in 2015/16 in France — the EU’s top wheat producer and exporter. Russia’s agricultural consultancy IKAR downgraded its production forecast by 1.0 MMT this week due to dry weather in several regions. The group now expects Russian output to reach 55.0 to 59.0 MMT, compared to 59.1 MMT in 2014/15.

It appears the global wheat crop is at a tipping point and the weather is seriously threatening its quality potential. It seems likely that at least one, if not several, major wheat suppliers will have some quality concerns this year and customers will have to pay more to secure the wheat they want. The U.S. has the distinct advantage of geographical diversity, allowing high quality wheat production in one area despite concerns in others.

Customers are wise to pay close attention to the weather forecast this year, as it will certainly affect buying decisions. Your local USW representative is always available to answer questions.

Trade Promotion Authority: Small Victory, But the Debate Continues

By National Association of Wheat Growers When the U.S. House of Representatives voted on Trade Promotion Authority (TPA) legislation, we were hoping it would be the last bout in an eight-year struggle to renew the President’s ability to finalize trade

agreements. It was encouraging when TPA actually received enough votes for passage, even though it was a slim margin (219 to 211). However, the rule for considering TPA required that the House also pass a bill to reauthorize a worker-retraining program, called Trade Adjustment Assistance (TAA), which was voted down 126 to 302. This vote stalled the whole package.

The United States’ global leadership hinges in part upon TPA. There have been about 100 trade agreements implemented since TPA expired but the United States has not been party to any of them. With TPA, the United States can join so many other countries aggressively negotiating new trade pacts. Additionally, since Congress must approve trade agreements, our negotiating partners need reasonable assurance that Congress will consider a whole agreement without picking apart carefully negotiated tradeoffs.

Geographic and climactic advantages help make the U.S. wheat industry internationally competitive. We usually become more competitive with freer trade.

Of course, trade also benefits wheat users and consumers in importing countries by giving them better access to wheat with the quality and price they are seeking.

Which brings us back to the House of Representatives. Even though the overall trade package did not get enough support, it is good news that the TPA portion of the package received majority of votes. That means that majorities in both the House and the Senate have supported

renewal of TPA. Now the trade supporters in both the White House and Congress need to find a procedural way forward.

The House passed a separate, TPA-only bill on a vote of 218208. The Senate is expected to take up the bill next week. As part of this strategy, it appears that the Senate may attempt to attach TAA to a separate trade preferences bill. If that strategy does not work there are other possible ways forward, and both the White House and leadership in Congress are committed to getting this done. The National Association of Wheat Growers also continues to engage with our congressional representatives to tell the story of how important expanding international markets are to U.S. agriculture and to our customers at home and abroad.

The House passed a rule that allows it to re-vote on TAA up until July 30, though it would require convincing a number of representatives to change their vote. If that does not happen there are other possible ways forward, and both the White House and leadership in Congress are committed to getting this done. The National Association of Wheat Growers also continues to engage with our Congressional representatives to tell the story of how important expanding international markets are to U.S. agriculture and to our customers at home and abroad.

Brazilian Wheat Importers See SRW, HRW Crops A team of five executives representing large flour mills in Brazil are in the United States this week to learn more about the 2015/16 crop and the U.S.

wheat supply chain. Together, they purchase about 60 percent of Brazil’s annual wheat imports.

Wheat farmers are pleased to see these buyers return to the United States.

“Brazil turned to the United States the last two years because its usual trading partners in Argentina could not meet demand,” said Osvaldo Seco, USW assistant regional director for South America, who is travelling with the team. “They were able to do that because we kept Brazilian millers informed about the quality, variety and value — and U.S. farmers had the wheat they needed.”

The potential for an on-going increase in U.S. wheat exports to Brazil will not be taken for granted, even though Argentina’s 2014/15 production provided exportable supplies again. USW, the Ohio Small Grains Marketing Program, the Nebraska Wheat Board and the Texas Wheat Producers Board hosted this team’s visit as a pivotal part of building buyers’ confidence in U.S. HRW and SRW wheat compared to supplies from Argentina, Uruguay, Paraguay, the EU or Canada.

After visiting farms in Ohio and Nebraska and meeting with export elevator managers in Texas’ western Gulf ports, Seco said these executives would go back to their mills with a greater knowledge of how to specify for the best quality and value from the U.S. supply. These flour millers will also get a chance to meet with their peers during a visit to a Mennel Milling Company flour mill and a tour of a Mondelez snack food plant in Ohio.

“We will also meet with export grain traders and review the federal grain inspection system in Nebraska,” Seco said.

“Relationships are very important to these buyers and there is no more powerful marketing tool than sitting face-to-face with the people who develop, grow and handle U.S. wheat.”

Farm and Industry Visits Help Protect Demand for U.S. Wheat in Nigeria Eight senior managers from Nigeria’s milling and noodle/ pasta manufacturing industries visited South Dakota and Kansas June 21 to 27, 2015, to examine the current HRW crop as part of a USW trade team. USW believes this annual event helps maintain a loyal customer base in a traditionally large market.

“USW and our state wheat commission member organizations built long-term demand for U.S. wheat in Nigeria by providing information and technical support,” said Muyiwa Talabi, USW marketing consultant based in Lagos, Nigeria. “This will be our fifteenth annual trade team from Nigeria since 2001 and it is still a key part of our work in an important market where we face new challenges.”

“In an increasingly competitive market, those customers still benefit from, and appreciate, the support USW provides, including the chance to see the new U.S. wheat crop and learn about its supply chain from the people who manage it,” said Gerald Theus, USW assistant regional manager for Sub-Saharan Africa who

WHEEAT AT || JULY JULY 2015 2015 27 27 Rediscover WH

is based in Cape Town, South Africa. Theus and Talabi will lead this trade team visit.

USW collaborated with the South Dakota Wheat Commission, the Kansas Wheat Commission and USDA’s Foreign Agricultural Service to organize this trade team. In South Dakota, the team met with grain merchandisers and visited several farms. The team’s Kansas visit included stops at the Kansas Wheat Innovation Center, USDA’s Center for Grain and Animal Health Research and the Kansas State IGP Institute as well as time with grain merchandisers.

Breaking Bread Together: National Festival of Breads Highlights Kansas Wheat Production

Kansas Wheat Commission and sponsored by King Arthur Flour and Red Star Yeast. Each original recipe was judged on creativity, healthfulness and taste. After a full day of baking bread, a food contest regular and blogger from Pennsylvania, Lisa Keys, won the grand prize with her Smokehouse Cranberry Cheese Bread.

Before the contestants ever stepped in the kitchens, however, the staff at Kansas Wheat provided a farm-to-fork tour of central Kansas. The finalists visited a wheat farm, many of them for the first time, and toured the largest grain elevator in Kansas as well as a stone ground flour mill. At each of these stops,the finalists were not just tourists, but avid students of

Eight finalists from across the United States qualified for the biennial event, hosted by the 28

JULY 2015 2015 Rediscover WHE AT || JULY

Activities like the National Festival of Breads require more than a few details, but the lessons included mean participants leave with much more than a few samples and some great recipes. Combatting myths about wheat consumption discourages fad dieting and encouraging consumers to try their own hand at baking increases flour consumption, while promoting the sharing of bread highlights hunger issues. These are the true benefits of events like the National Festival of Breads. See page 7 for recipe.

Wheat Industry News

By Julia Debes, USW Communications Consultant Mr. and Mrs. Slice. Eight colorful kitchens. A bake truck with a giant spatula on top. Thanks to these attractions and others, more than 1,000 visitors attended the National Festival of Breads in Manhattan, Kansas, on June 13. While many people came for the free bread and barbeque samples, or to listen to a bestselling cookbook author, they also left with information on the role of wheat in the diet. Visitors learned how to make recipes healthy and tasty and why U.S. wheat is such an important part of all of it.

the hungry in their community and around the world. With 50 percent of Kansas wheat headed to export markets each year, these lessons are especially relevant.

how the principal product in their recipe is grown, transported and processed. As these bakers leave Kansas, they do so with a greater understanding of how to answer that consumer favorite question: “Where does my food come from?”

The International Wheat Genome Sequencing Consortium (IWGSC) and the Wheat Initiative announced on June 16 that reference sequencing of wheat chromosome 4B would start soon in France. This complements the reference sequencing projects already underway on 11 other wheat chromosomes and adds momentum to the goal of achieving a high quality reference sequence of the bread wheat genome to speed up gene discovery and breeding of new wheat varieties. To read more on this story visit www. wheatinitiative.org.

Festival attendees also learned not only how to bake great bread, but also how to make recipes healthier, why bread is so important in many cultures and what they can do to contribute to

AIB International Adds Courses For BRC Training Academy. As a BRC Approved Training Provider, AIB recently added five new official courses to its catalog of in-plant training.

The British Retail Consortium (BRC) is the leading trade association for UK retailing, whose food safety standard is recognized worldwide.

AIB International located in Manhattan, KS, works with food-processing, distribution, foodservice and retail industries to elevate their food safety and production process capabilities by developing and delivering application-oriented learning, consulting and value-added services. Find information on the courses online at http://www. bakemag.com/Trends/News/ News%20Home/2015/6/AIB%20 Training.aspx?&e=jsdebes@ uswheat.org.

The Wheat Foods Council Announced its New President on June 10, 2015. The Wheat Foods Council board of directors named Tim O’Connor as CEO, effective June 15, 2015. O’Connor replaces Judi Adams, MS, RDN, who is retiring at the end of the month. O’Connor’s background is firmly grounded in agriculture and marketing. Prior to launching his own consulting firm, he worked as CEO of Avocados from Mexico. From 1999 to 2013, he served as president and CEO of the United States Potato Board, a leading produce marketing organization. He also is a past executive vice president and CEO of the Illinois Beef Association.

For more information, visit http:// www.wheatfoods.org/.

Congratulations to USW Colleagues Mina El Hachimi and Vince Peterson on 30 Years of Service. Mina is North Africa Administration & Programs Manager in the USW/Casablanca office. Vince is Vice President of Overseas Operations in the

Headquarters office. We are so fortunate that it is not rare to have such devoted, loyal colleagues at USW. Thank you Mina and Vince for your years of dedicated service to our organization, to U.S. wheat farmers and to our customers around the world!

Congratulations to Dr. Senay Simsek and her family on their newest addition. Baby boy, “Mert,” which means “brave,” was born June 4, 2015; 7lb, 14 oz.

Dr. Simsek is a professor in the Department of Plant Sciences at North Dakota State University and works with USW as a consulting university specialist in spring wheat quality.

Expansion Planned for the Saginaw Valley Research Extension Center. The Michigan State University research center will be expanding this summer thanks to support from community partners. Agricultural groups and businesses contributed more than $1 million to erect a new educational facility. The building will serve as a meeting space for Extension activities and will open before Sept. 1, 2015.

Research on the 310-acre center focuses on wheat, black beans, sugar beets, corn and soybeans.

Registration for IGP Institute Risk Management Course Closes July 2. Understanding the importance of risk management within trading markets is crucial to the security of a company's financial future. Individuals interested in expanding their knowledge of marketplace challenges are encouraged to take advantage of this two-part course, held August 2 to 7 in Manhattan, KS. Registration closes on July 2.

For more information or to register, visit www.grains.ksu.edu/igp.

NCI Rheology of Wheat and Flour Quality Course.

Registration closes July 1, 2015, for this short course at the Northern Crops Institute July 21 to 23 in Fargo, ND. The course will focus on wheat and flour quality, and effective analysis of rheological results. For more information or to register, visit www.northerncrops.com/courses2/.

Wheat Marketing Center Whole Grain Summit PreMeeting Workshop. This whole grain product workshop June 22 to 23 at WMC in Portland, OR, offers a hands-on experience producing different types of popular products with whole-grain raw materials and functional ingredients. For more information or to register, visit http://wholegrainsummit2015. com/pre-meeting-workshop/.

RediscoverWH WHEEAT AT| |JULY JULY2015 2015 29 29 Rediscover

Maltby Market Analysis Hello Kansas Wheat.

by Dan Maltby

Wheat prices were significantly higher last week. This is a Chgo weekly wheat chart (NOT KC wheat futures), in a line chart (not a bar chart) format. A weekly chart helps show the stops I might track in my weekly futures table (shown below the chart)‌and WE SEE BUY SIGNALS.

CLOSE

KWN15

KWZ15

KWN16

CN15

CZ15

CN16

WN15

MWN15

MWZ15

SN15

SX15

06/26

$5.59

$5.89

$6.18

$3.85

$4.02

$4.24

$5.62

$5.96

$6.22

$10.02

$9.86

06/19

$5.03

$5.32

$5.63

$3.53

$3.69

$3.94

$4.88

$5.43

$5.67

$9.72

$9.40

06/12

$5.26

$5.53

$5.82

$3.53

$3.70

$3.95

$5.04

$5.61

$5.83

$9.40

$9.04

06/05

$5.35

$5.63

$5.93

$3.61

$3.78

$4.03

$5.17

$5.72

$5.95

$9.38

$9.14

05/29

$4.99

$5.25

$5.53

$3.52

$3.68

$3.91

$4.77

$5.31

$5.56

$9.34

$9.06

05/22

$5.47

$5.74

$5.98

$3.60

$3.78

$4.02

$5.15

$5.69

$5.93

$9.24

$9.07

05/15

$5.42

$5.68

$5.92

$3.66

$3.83

$4.07

$5.11

$5.61

$5.87

$9.53

$9.35

05/08

$5.09

$5.35

$5.60

$3.63

$3.78

$4.04

$4.82

$5.41

$5.68

$9.76

$9.52

05/01

$5.01

$5.30

$5.58

$3.63

$3.80

$4.06

$4.74

$5.35

$5.58

$9.65

$9.41

04/24

$5.08

$5.37

$5.66

$3.70

$3.88

$4.14

$4.89

$5.45

$5.65

$9.71

$9.53

04/17

$5.15

$5.44

$5.71

$3.80

$4.03

$4.26

$4.89

$5.44

$5.67

$9.72

$9.53

04/10

$5.63

$5.90

$6.13

$3.85

$4.03

$4.27

$5.24

$5.87

$6.04

$9.56

$9.43

Charts and discussions follow, with the goal of giving you useful information to help you with your business. My disclaimer remains the same: these are my sometimes rapidly changing opinions; the markets are quite treacherous; and past performance is no guarantee‌dm

Kansas Wheat market update #176 danmaltby.riskmgmt@gmail.com 06/26/15 pg. 1 30

Rediscover WHE AT | JULY 2015

Chicago futures had consolidated over time long enough that the 1-week, 2-week, and 4-week buy-stops combined to push wheat up into 11-week buy-stops. I interpret this as meaning technical systems cannot be short anymore, and some systems would be going long, especially on new weekly highs.

In other words, new highs will bring in more buying. It’s been a while since we’ve seen buy signals.

The problem with that statement is the financial markets are under some pressure RIGHT NOW due to Greece apparently defaulting on IMF loans. The USA stock market futures are currently getting creamed…this is an E mini Sept futures contract:

You can see this chart shows a nasty gap lower move. It’s not too hard to imagine all of this year’s stock market gains are in jeopardy. Whether or not Greece is forced out of the European Union, or whether this means the beginning of the end for the EU itself…

I’m more than willing to admit I have no idea, and for all I know, the wheat market might be able to ignore it completely. But I think this is a big injection of financial uncertainty.

But some systems actually buy ag futures, and sell stock market futures, so again, I’m not really sure what this means, if anything.

Going back to the weekly futures table on page 1, new 11 week closing highs were set in Chgo wheat, MGEX wheat, KC July16 wheat, and old-crop and new-crop soybeans. Both old-crop and new-crop corn are just pennies below new 11-week closing highs, as is KC wheat.

I really doubt all of the big spec funds have covered their shorts, let alone began the process of going long, so thus I am cautiously optimistic this wheat rally still has some legs.

AND that is a good thing because almost all of you almost certainly have some new-crop wheat that “must” be sold. Some of you might have old-crop too. And all of you will be planting another wheat crop in about 90 days.

When we look at these cash wheat prices, for wheat that “must be sold”, this week’s rally was a gift, and I am personally hesitant to “look a gift horse in the mouth”…(although I am sure my sons would have no idea what that phrase means…)

Kansas Wheat market update #176 danmaltby.riskmgmt@gmail.com 06/26/15 pg. 2

Rediscover WHE AT | JULY 2015 31

These wheat bids are higher because of higher futures, AND in many spots, higher basis bids too:

Date 06/26 06/19 06/12 06/05 Date 06/26 06/19 06/12 06/05 BASIS 06/26 06/19 06/12 06/05 Date 06/26 06/19 06/12 06/05

Dodge $5.19 $4.63 $4.86 $4.95 Concordia $5.54 $4.83 $5.06 $5.10 Dodge -40 -40 -40 -40 Concordia -05 -20 -20 -25

Colby $5.36 $4.71 $4.94 $4.90 Salina $5.59-$5.69 $4.93 $5.16 $5.25 Colby -23 -32 -32 -45 Salina -00, +10 -10, -10 -10, -10 -10, -10

Goodland $5.37 $4.71 $4.91 $5.00 Hutchinson $5.47-$5.69 $4.84-$5.03 $5.07-$5.26 $5.11-$5.35 Goodland -22 -32 -35 -35 Hutchinson -12, +10 -19, -00 -19, -00 -24, -00

Protection $5.29 $4.73 $4.91 $5.00 Wichita $5.53-$5.69 $4.95-$5.08 $5.18-$5.31 $5.12-$5.40 Protection -30 -30 -35 -35 Wichita -06, +10 -08, +05 -08, +05 -23, +05

Scott City $5.24 $4.61 $4.84 $4.93 Ark City $5.40 $4.84 $5.07 $5.12 Scott City -35 -42 -42 -42 Ark City -19 -19 -19 -25

Sublette $5.19-$5.21 $4.63-$4.65 $4.86-$4.88 $4.95-$4.97

Sublette -40, -38 -40, -38 -40, -38 -40, -38

Export sales pace is not very fast, and USA wheat prices remain at “a premium” to world prices, so what is driving the higher basis?

It is our old friend, KCN15- KCN16. Almost 60c/bu … about 5c a month to pay storage is a big factor.

Kansas Wheat market update #176 danmaltby.riskmgmt@gmail.com 06/26/15 pg. 3 32

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It’s a two-edged sword‌as this nearby basis is a very good basis, and these terminal basis bids will not go any higher. IF a producer KNEW bids would not go any higher, then he would sell without fear.

I am telling you these terminal basis bids have NO upside, and if the terminal basis bids are not going up, more than likely the bids further west will be reluctant to go higher as well. THEREFORE if you have wheat to sell, I am recommending you call your elevator and get something on the books, especially if your elevator has been raising his basis bids. IF he has not been raising his basis, I would check around to see what the other guy is bidding.

Should you sell the basis only, or go ahead and sell the flat price too? This is a KC Dec15 chart:

The purple line is a 200 day simple moving average, offering resistance. IF the market can get thru it, and close above it a couple of days, then many technical systems will trade from the long side. Here is a plan: when the 200 day MA is violated again to the downside, then price your basis sales.

Here is Dec corn, responding to too much rain. I admit I DO NOT TRUST this corn rally at all.

Kansas Wheat market update #176 danmaltby.riskmgmt@gmail.com 06/26/15 pg. 4

Rediscover WHE AT | JULY 2015 33

Soybeans might be different though, as I believe the Canadian canola which had to be massively replanted due to a freeze, is in trouble. Canola is an oil seed, like soybeans…mass quantities to China.

This is Nov beans. I think some bean producers still own last fall’s beans. This blue line around $10.25 or so is a pricing opportunity…

The “reasons” for this ag commodity rally, in wheat and corn and beans…include: 1. Short covering. Funds have been short, profitably. The markets quit going down, and went sideways, which eventually forces all tech systems to cover shorts.

2. North American weather has not been ideal. Canadian freezes, followed by very little moisture supported wheat and canola, which has supported beans. Too much rain in The USA Corn Belt have raised ideas bean acreage will be lower than expected.

3. India’s wheat was hurt by too much rain too, and it looks like she will import a million tonnes of good quality wheat this year for blending purposes.

4. El Nino fans the flames of an Aussie drought, although so far, it is NOT a true concern.

5. European wheat weather has been too dry, cutting French and German potential.

Don’t get me wrong. ALL of these could get worse. If the Aussie wheat crop drops to 20 million tonnes…If India needs to import 3 million tonnes…if Canada stays dry and wheat production up North drops to 24 million tonnes…

Thus I am not recommending selling wheat that you don’t have to sell, but I am strongly encouraging you to go ahead and take advantage of this bump on bushels you NEED to sell anyways. Again, for most of you, that’s around 30% of this year’s crop. So sell a third of that. Get 10% of your crop on the books now.

Montana is very hot… should be some protein in the wheat they cut.

Kansas Wheat market update #176 danmaltby.riskmgmt@gmail.com 06/26/15 pg. 5 34

Rediscover WHE AT | JULY 2015

Looks to me like the USA HRW harvest will basically finish up this week.

Conversely…Indiana is too wet, and going to get wetter.

USDA will be issuing stocks-in-all-positions Tuesday. If you are going to get that 10% of your wheat priced, I’d get it done Monday. I know I said buy-signals exist, but I’m pretty sure you have some wheat that needs to be sold…

Maltby Market Analysis is provided weekly to members of the Kansas Association of Wheat Growers via email. To become a KAWG member and subscribe, please contact Jordan Hildebrand at jhildebrand@ kswheat.com.

Kansas Wheat market update #176 danmaltby.riskmgmt@gmail.com 06/26/15 pg. 6

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Upcoming Events JULY 2015 • Kansas Wheat Office Closed, July 3, Happy Independence Day! • Peruvian Trade Team, July 23-26

SEPTEMBER 2015 • Kansas State Fair, September 11-20

AUGUST 2015 • Caribbean Trade Team, August 18-20 • Drought Policy/Risk and Profit Conference, August 20-21, Dealing with Drought: The Effects and Economics of Drought in Agriculture