Rediscover Wheat - May 2015

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

MAY 2015

INSIDE THIS ISSUE

Growers Support Trade Promotion Authority Breeder Uses Intuition and Technology Enter Yield Contest by June 1 Kansas Farmer Testifies on Cuban Trade Wheat Scouting 101

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Volume 2 • Number 4 www.rediscoverwheat.org The official publication of

In This Issue : 3

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

KAWG MEMBERSHIP $100 per year

ASSISTANT EDITOR/DESIGNER

Audrey Schmitz • commintern@kswheat.com

CONTRIBUTORS

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

CEO

KAWG OFFICERS

Justin Gilpin • jgilpin@kswheat.com

PRESIDENT Michael Jordan • Beloit

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

KWC OFFICERS

CHAIRMAN Scott Van Allen • Clearwater VICE CHAIRMAN Jay Armstrong • Muscotah SECRETARY/TREASURER Brian Linin • Goodland IMMEDIATE PAST CHAIRMAN Ron Suppes • Dighton

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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EDITOR

Marsha Boswell • mboswell@kswheat.com

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Wheat Growers Support Quick Passage of Bipartisan TPA Legislation Wheat Foods Council Mixing Experience and Technology Results in Better Wheat Varieties for Kansas Farmers Win Big with Kansas Wheat Recipe: Whole Grain Banana Bread IGP Institute Stakeholder News Brief Kansas Wheat Farmer Testifies on Cuban Trade Recipe: Walnut Biscotti News from the National Association of Wheat Growers News from U.S. Wheat Associates Wheat Scouting 101 Stripe Rust Spotted in Kansas, Start Field Scouting Now Maltby Market Analysis Upcoming Events

Wheat Growers Support Quick Passage of Bipartisan T PA Legislation

By Amanda Spoo, U.S. Wheat Associates he U.S. wheat industry applauds bipartisan support for the introduction of legislation to modernize and renew Trade Promotion Authority (TPA). The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 includes improvements to the 2002 TPA law that are key to establishing the groundwork for progressive trade negotiations and outcomes for U.S. farmers and businesses.

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“Trade is vital to the U.S. wheat industry, with 50 percent of the annual crop destined for export markets.

U.S. farmers are eager to sell high quality wheat throughout the world, but artificial trade barriers often stand in their way,” said National Association of Wheat Growers President, Brett Blankenship. “Passage of TPA would send a strong signal that Congress and the Administration are united in their commitment to opening markets for the benefit of farmers and rural communities and creating jobs throughout this country.”

The TPA legislation outlines U.S. trade policy objectives and sets out conditions for the President to negotiate free trade agreements and other trade liberalizing initiatives as well as allowing for expedited Congressional consideration. Also known as “fast track,” TPA builds confidence with our negotiating partners that once an agreement is reached, Congress cannot change it. The bill also institutionalizes consultation requirements to ensure that Congress and the President maintain a strong partnership in advancing trade policy goals.

Together NAWG and U.S. Wheat Associates (USW) encourage the swift enactment of TPA as an essential tool for negotiating market-opening free trade agreements.

The United States is currently engaged in negotiations to complete the 12-country Trans-Pacific Partnership (TPP) and the U.S. and European Transatlantic Trade and Investment Partnership (TTIP), which will lower barriers to U.S. wheat exports in several key markets.

These agreements will also help ensure that U.S. wheat producers have the same market access as other wheat exporters, including Canada and Australia.

“Comprehensive free trade agreements create a more fair and level playing field, and U.S. wheat farmers need the leverage that TPA would give U.S. negotiators to have a unified voice in a growing international market,” said USW Chairman, Roy Motter. “Japan and other countries are less likely to put their best offer on the table for politically sensitive agricultural products like wheat unless they have the confidence provided by TPA.” The United States is the world’s largest wheat exporter, offering customers around the globe a reliable, high-quality supply of six wheat classes. In the 2013/14 marketing year, ending May 31, 2014, the United States exported about 32 million metric tons (nearly 1.2 billion bushels) of wheat valued at about $9.7 billion, which supports thousands of jobs and creates economic benefits across the country. More on the industry’s trade work is at www.wheatworld. org/trade or www.uswheat.org/whatwedo/tradepolicy.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by FAS. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.

NAWG is a federation of 22 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, D.C., NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability.

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Mixing Experience and Technology Results in Better Wheat Varieties for Kansas Farmers

By Julia Debes ansas State University wheat breeder Allan Fritz has a lifetime of intuition and experience in developing new wheat varieties. But, thanks to research funded by Kansas wheat farmers through the Kansas Wheat Commission and Kansas Wheat Alliance, he has new technological tools to help his team work smarter and faster.

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“New technologies in plant breeding have created opportunities for increased efficiency and genetic gain,” wrote Fritz in a research proposal to the Kansas Wheat Commission.

“Those technologies are now becoming available in wheat and are critical to improving the competitiveness of wheat versus other crops as well as for maintaining strength in the public wheat breeding programs.”

By integrating these advanced technologies – including markerassisted selection, doubled haploids, high throughput phenotyping and a genomic selection model – into its existing growth chambers, test plots and nurseries, the Kansas State University wheat breeding 6

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program is “speeding up the breeding cycle,” according to Fritz. And that saves everyone time and money.

“Wheat has not had these same tools, so this is new territory for us,” Fritz said. “It is a really exciting time and we can do some really cool things that are highly practical and help us be more efficient.”

Marker-Assisted Selection and Doubled Haploids The wheat genome has five times more genetic material than the human genome – 17 billion base pairs. But, wheat researchers now can use marker-assisted selection to pinpoint exactly where in that genetic smorgasbord the exact genes for a trait like stripe rust resistance or heat tolerance are located.

According to the International Service for the Acquisition of Agri-Biotech Applications (ISAAA), marker assisted selection involves using genetic markers, or segments of DNA, to identify the location of a specific gene. If researchers find the marker in a genetic sample, they know that the gene is present,

long before it would have been expressed when planted in a test plot.

"Marker assisted selection is using DNA markers to follow genes of interest without having to screen for the given trait.”

The more wheat crosses the wheat breeding team can analyze, the better to find that one genetic mash-up that could be the next great wheat variety.

Doubled haploids enable the team to produce more crosses faster.

According to the Heartland Plant Innovations website, doubled haploids are “genetically pure plant lines that offer a quick route to new gene combinations for higher yield, improved quality, disease resistance, or other crop improvements.”

Doubled haploids help “shorten varietal development time and gain the greatest advantage from new marker based strategies.”

To illustrate, conventional breeding may take 11 to 12 years to develop a new wheat variety.

However, as Fritz explained, with the use of doubled haploids and genomic selection, that process can be cut down to six or seven years.

High Throughput Phenotyping and Genomic Selection Once those lines do reach the test plot, high throughput phenotyping allows researchers to identify which experimental lines not only contain just the right genes, but also express them.

High throughput phenotyping “is the rapid collection of data that is relevant to plant performance.”

That includes everything from plant height to reflected infrared light to disease susceptibility.

Each piece of data provides a glimpse into the potential of that line."

All this infusion of data on genetic potential and expressed characteristics feeds into the K-State genomic selection model.

The genomic selection model helps wheat breeder predict the performance of the best potential crosses. The continuously evolving model utilizes several hundred lines that have already been genotyped and evaluated on a yield and baking quality to predict the potential yield and end-use quality for experimental lines or potential crosses. This statistical model is also able to predict yield and other relevant traits in differing climatic conditions from year to year or from one area of the state to another.

“Genomic selection is an ongoing, rather than one-time effort. Each year, new lines are added and field data is collected.

This information is used to continually tweak the models with the goal of continually enhancing performance.”

Using the combination of these technologies, Fritz explained in the research proposal, “We should

eventually be able to discard poor and intermediate performing lines without yield testing, thus allowing the yield testing efforts to focus on genetically superior lines.”

And the model works well. Fritz reported in the research proposal that “genomic selection and conventional selection finished in a virtual dead heat in our trial designed to compare the methodologies head-to-head.”

Tossing out the genetically inferior lines in this early stage allows the K-State wheat breeding program to increase the number of lines evaluated without adding more test plots to harvest. For example, Fritz explained he starts every year with 3,500 to 6,000 new lines that have to be whittled down to one eventual K-State wheat variety. Fritz said he could increase that number to 20,000 and use a combination of genomic selection and high throughput phenotyping to harvest just 500 to 600.

Fritz said the first breeding target to benefit from this effort will be end use quality, as it is less influenced by environmental factors. This also saves time and money as poor quality lines would not go through expensive yield testing and quality lab tests at the Kansas Wheat Quality Lab, freeing researchers like Dr. Rebecca Miller to focus on testing more existing varieties and advanced lines.

model, for example, Fritz is already testing it in the main breeding population. At other institutions, the field testing for these research tools would be limited to a training population and only moved to the real world breeding after years of testing and tweaking.

Fritz thanked the great team of K-State and USDA wheat researchers for their innovative approach to these technologies.

And Fritz said that none of this work would be possible without the great relationships and support between K-State, Heartland Plant Innovations, Kansas Wheat Commission, Kansas Wheat Alliance and private industry partners.

But, Fritz pointed out the most important supporters of K-State’s wheat research are also the biggest benefactors – Kansas wheat farmers. And he encouraged anyone with questions or suggestions to contact him.

“We need to hear from producers if we are doing what we need to be doing,” he said.

“We are here to benefit the wheat industry and producers are the biggest part of that at the end of the day.”

By the Farmer, for the Farmer The way the K-State wheat breeding team incorporates this burgeoning technology into their program is unique. As researchers are building the genomic selection Rediscover WHE AT | MAY 2015 7

Win Big with Kansas Wheat

heat yields have been a heated topic of discussion at coffee shops across Kansas for years.

But six years ago Kansas Wheat decided to up the ante and see who really had the best yields in the state. Farmers from all over the state, like Doug Keas of Plainville, enter the Kansas Wheat Yield Contest for bragging rights and a potential for up to $1,750 in prize money.

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Keas was last year's Central Region winner, as well as the quality initiative winner. Keas planted SY Wolf on a 10.32 acre plot in Rooks County. His winning yield was 78.39 bushels an acre. His wheat sample was also Doug Keas, Kansas Wheat Yield Contest graded as the overall best quality wheat submitted through the contest.

This result was determined by the overall quality and mill and bake scores. Keas said that he always knew he wanted to farm.

While other kids wanted to be firefighters and police officers, Keas dreamed of being a farmer.

"Winning it last year was great," said Keas. "Even though I was disappointed in our yields last year, we produced even though we didn't have a lot going for us."

For the third party verifier required of the contest, Keas used a familiar face with a local banker.

Other examples of verifiers that participants can use include vocational agriculture teachers, county extension agents, Farm 8

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Credit Services officers, private crop consultants, crop insurance agents and College of Agriculture instructors.

Keas said of the contest, "I've been so competitive all of my life and I love to enter any contest. My agronomist told me that I should enter this one, so I just had to give it a shot."

No matter the inputs a producer puts onto his crop, a harvest can look bleak without rain.

"If it rains, we'll raise some wheat," said Keas. "But if it doesn't, we just won't have much of anything."

The 2015 Kansas Wheat Yield Contest is sponsored by BASF, WestBred, Kansas Wheat Alliance, Limagrain, Plains Gold, AgriPro and Kansas Wheat.

Winners from all three regions win $1,000 and if the regional

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Enter by June 1! winners use a variety from a sponsor of the contest, they will receive an additional $500. The samples from the optional quality initiative will be evaluated for quality components such as test weight, protein content, variety and kernel quality. Top scoring samples will undergo further testing at ADM Milling's Quality Laboratory in Kansas City. The sample with the top quality score will receive $250 in cash.

The application deadline for the 2015 Kansas Wheat Yield Contest is June 1, 2015. A Management Form, Harvest Rules, and a Harvest Report Form will be mailed to the contestant prior to harvest. These forms, along with the quality initiative sample, must be postmarked by July 10, 2015. For more information on the contest, please visit www. kansaswheat.org/yieldcontest.

Whole Grain Banana Bread Ingredients 1 cup white whole wheat flour ¾ cup all-purpose flour 1 cup granulated sugar 1 teaspoon baking soda ½ cup chopped, toasted walnuts (optional) 1¼ cups mashed very ripe bananas (3 medium) ¼ cup unsalted butter, softened ¼ cup unsweetened applesauce 2 large eggs, beaten 1 teaspoon vanilla extract 2 tablespoons low-fat buttermilk

Directions

1. Preheat oven to 350°F. Lightly spray with nonstick cooking spray or grease bottom only of 8 ½ x 4 ½-inch loaf pan.

2. In large bowl, whisk together white whole wheat flour, allpurpose flour, sugar, baking soda and walnuts.

3. In medium bowl, whisk together bananas, butter, applesauce, eggs, vanilla and buttermilk.

4. Add banana mixture to flour mixture; stir ingredients together just until combined.

Do not over mix batter. Spread batter into pan.

5. Bake on middle oven rack 60 to 65 minutes, or until wooden pick inserted in center comes out clean. Check doneness by inserting a thermometer in center of loaf (205°-210°F). Cool 5 minutes; loosen sides of bread from pan using a knife. Remove bread from pan to cooling rack.

Cool completely, about 1 hour, before slicing.

Nutrition Information Makes 1 loaf, 16 slices.

1 slice provides approximately: 157 calories 3 g protein 29 g carbohydrates 2 g dietary fiber 4 g fat (2 g saturated) 31 mg cholesterol 15 mcg folate 1 mg iron 90 mg sodium

Note: To store, wrap and refrigerate bread no longer than 1 week. May be frozen.

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April 2015 2015 February

STAKEHOLDER STAKEHOLDER NEWS NEWS BRIEF BRIEF Moving the Mission Moving the Mission MyAfter first ayear at the IGP Institute whirlwind February, willitbe complete in May, andthe it has is apparent to me that been an exciting educational learning curve and is steep and experience.

I’ve enjoyed becoming the familiarization process will part of the team at the institute, continue for quite some time. andMy have been impressed initial impression of with the IGP theInstitute knowledgeable and friendly and the Department PatGordon Hackenberg Smith faculty andScience staff who share their of Grain and Industry experience with sofull many people involved in isprofessional that these are special places, of dedicated the grain industry from across the world. professionals, truly committed to investing in the future of our state, country and world. As technology evolves, My responsibilities include marketing our upcoming traditional boundaries of distance, culture, economics courses and improving the quality of our educational and accessibility soften allowing our education and materials. As part of this effort, I travel with many of our outreach missions to have even greater impact. participant groups on their planned field trips to help Knowledge and self -improvement are becoming key them better understand the course topics and provide enablers that allow individuals and businesses to reach them with firsthand knowledge of the U.S. grain industry their optimum potential. To this end, the IGP Institute and our high quality standards. I recently traveled with appears uniquely suited to provide meaningful training Jay O’Neil’s Grain Purchasing course on their field trip through innovative approaches across an expanding to the Chicago Board of Trade, Cargill’s Houston port range of critical offerings. facility, and the Federal Grain Inspection Service in Kansas City. The course included 20 total participants from 10 countries. It was great to meet the international

In the Spotlight Derek Marcotte • In Miller Prairie Flour Mills, Elie, thewith Spotlight Manitoba, Canada Katrina Dela Cruz • Completed two flour milling distance • Purchasing Manager at Pilmico Foods courses and enrolled in a third training Corporation “I have learned a lot about quality control from cleaning the • Completed Grain Purchasing course wheat to creating a better overall product.”

“The theories explained and applied through the field trips and actual production tour sites combined in two weeks was very educational and enjoyable. There was a wide coverage of material and it was delivered in a manner that was easy to understand and digest.”

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participants and capture their activities through photos and videos.

As my indoctrination into the IGP Institute and its mission continues, look forward to course meetingpromotions many of to We are using theseI to develop new you and continuing the dialog around how every part of provide an overview of the knowledge and experiences the enterprise can drive market preference, consumption available to future participants.

In addition, we have and utilization of U.S. cereal grains and oilseeds. recently added a new digital monitor in our lobbyIt is indeed myphotos honor from to be recent a part of this team our featuring courses and and listing our daily commitment to continual improvement in all that we do. calendar and upcoming events.

I welcome your input and I can be reached at glsmith@ I’ve found IGP Institute to be a great place to ksu.edu andthe 785-532-3503. work because of our shared passion for providing quality educational content and our emphasis on delivering a positive overall experience to the industry professionals who take our courses. I’m lookingSincerely, forward to the next year.

Please look to the rest of the newsletter to see all our April happenings.

Gordon Smith Sincerely, IGP Institute Director

Pat Hackenberg IGP Institute Educational Media Coordinator

Trainings and Activities Courses and activities held in February • AFIA 500 – Fundamentals of Feed Manufacturing

Trainings and Activities

• GEAPS 521 – Aeration Systems Design and Fan Courses and activities held in April.

Operational Management • IGP–KSU Grain Purchasing course • GEAPS 530 – Quality Management Systems • GEAPS 510 – Grain Facilities Planning and Design • GEAPS 542 – Electrical Safety • GEAPS 525 – Management of Insect Pests in Stored • GEAPS Grain 544 – Preventing Grain Dust Explosions • of Milling Causes Principles • GEAPS GEAPS 600 545 –– Overview Grain Entrapment: Prevention and Rescue • IGP–KSU 700 – Fundamentals of Animal Nutrition

Rediscover WH E Kimball AT | MAY 2015 1980 Kimball Avenue,102 102IGP IGPInstitute InstituteConference ConferenceCenter Center||Manhattan, Manhattan,KS KS 66506–7000 66506–7000||Tel. Tel.785-532-4070 785-532-4070||Fax Fax785-532-6080 785-532-6080||www.grains.k-state.edu/igp www.grains.k-state.edu/igp||igp@ksu.edu igp@ksu.edu 1980 Avenue,

The Grain Purchasing course participants stop to pose for a photo with the Chicago skyline on their trip to the Chicago Board of Trade.

Participants from Egypt, Bulgaria, India and the French Caribbean work through a simulation as part of the Grain Purchasing course.

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.

by Lisa Moser, Marketing and Communications Coordinator • Coordinated e-newsletter promotions for upcoming summer trainings.

• Spoke at the USSEC Risk Management workshop in Singapore.

• Conducted Advanced Grain Explosion workshop in Ogallala, Nebraska.

• Traveled with the Grain Purchasing course on a field trip to capture images and videos for use in upcoming promotions.

• Collaborated with the University of Illinois faculty on research consortium.

• Prepared survey and focus group questions for communications research that will be conducted with participants in the summer courses.

• Exhibited a booth and participated in the Pet Food Forum in Kansas City, Missouri.

• Supported Department of Grain Science and Industry with the development of printed materials.

• Conducted website maintenance.

Feed the Future Post-Harvest Loss Reduction Lab Update

by Dirk Maier, Administrative Director • Attended the Global Food Security Consortium Symposium at Iowa State University.

• Gave an invited presentation about the PHL Reduction: Opportunities and Challenges at the Global Food Security Consortium Symposium at Iowa State University.

• Participated in the USAID/Ethiopia Mission quarterly project partners meeting in Addis Abeba, Ethiopia along with four members of the PHL Innovation Lab Ethiopian in-country project team.

• Attended the Feed the Future Innovation Lab Directors meeting in Llongwe, Malawi and presented an update on first year accomplishments of the PHL Innovation Lab. • Presented about PHL and Global Food Security: Minimizing Grain Losses at the AgriTech Conference in Aviv, Israel.

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Kansas Wheat Farmer Testifies on Cuban Trade Kansas farmer was called upon by the United States Senate Committee on Agriculture, Nutrition and Forestry, to testify on the opportunities and challenges for trade with Cuba.

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Kansas Wheat Commissioner Doug Keesling, Chase, was part of a delegation organized by the U.S. Agriculture Coalition for Cuba (USACC) that visited the Caribbean country in order to explore re-establishing agricultural trade.

The committee is chaired by Pat Roberts from Kansas, the first to chair both the Senate and House of Representative's respective committees on agriculture.

Keesling testified in front of the committee on April 21, 2015, and discussed the potential that he, and the nearly 100 other members of the USACC delegation, saw in Cuban trade.

"We had the opportunity to hear from Cuban government officials and speak with Cuban farmers," said Keesling. "We are certainly interested in selling our products

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to Cuba, but we were also there to learn and to help break down the wall that has separated the people in our two countries for so long."

Cuba is the largest country in the Caribbean by area and population. Wheat and rice are both staples of the Cuban diet, though only rice is produced domestically. There are 11 million people on the island, but its population is growing very slowly. The opportunities for increased wheat consumption are limited, unless population growth accelerates or the tourism sector takes off.

It has been estimated that wheat imports from the United States have an upward potential of the entire 30 million bushels currently imported by Cuba.

That’s because today Cubans buy no wheat from the United States.

The state-owned grain buyer, Alimport, buys almost all their wheat from Canada and Europe, even though Cuba is much closer to U.S. gulf ports. That’s a $200 million opportunity that is missed

By Jordan Hildebrand by the U.S. wheat industry every year. Based on USDA Economic Research Service models, those additional exports could put nearly 2,000 people to work, and that’s just for wheat.

"Now that Cuba is allowing increased investment by the private sector, we can expect the sophistication of the Cuban flour milling, processing, and retail segments to improve, which could lead to even more imports in the future," Keesling said. "But if current policies continue, those imports will not be products raised by American farmers."

Keesling testified that for Cuba to become a successful export market for U.S. farmers, regulatory obstacles must be repealed. While under the current embargo, regulations allow for agricultural exports to Cuba, they are full of red tape and expenses for Cuban businesses to deal with.

But Cubans aren't going hungry; instead they are purchasing their imports from competitors like Canada and Europe.

"It doesn’t make any sense to me that if somebody wants to buy the wheat I grow, they have to jump through all sorts of hoops imposed by our government," said Keesling. "I would suggest that Congress carefully consider if there is a compelling, practical reason to restrict the freedom of Americans to engage in commerce, especially for those who are just trying to sell wholesome, American-grown food.

Walnut Biscotti Ingredients

¾ cup English walnuts ½ cup (1 stick) unsalted butter ¾ cup granulated sugar 2 large eggs 1 teaspoon vanilla extract 1 tablespoon brandy, cognac, rum or brandy extract 2 cups plus 2 tablespoons allpurpose flour 1½ teaspoons baking powder

Directions 1. Preheat oven to 350°F. Place walnuts on baking sheet and toast for 5 minutes. Remove from oven and cool. Chop coarsely.

4. On a lightly floured board, divide the dough into 2 equal pieces. Form each into a strip about 2 inches wide and 12 inches long. Transfer strips to baking sheet, leaving several inches between them. Bake 25 minutes, or until lightly browned.

2. Reduce oven to 325°F. Line baking sheet with foil; grease lightly with butter and dust with a few sprinkles of flour.

5. Remove biscotti and let cool 30 minutes. Using sharp, serrated 3. In mixer bowl, beat together knife, cut strips on a diagonal into butter and sugar until soft and ½-inch slices. Place, cut-side down, smooth. Beat in the eggs, mix on a baking sheet. Return to oven well. Add vanilla and brandy and bake 10 to 15 minutes or until or other flavoring. With mixer slices are dry and lightly toasted. on low speed, beat in flour, Transfer biscotti to a wire rack to baking powder and walnuts until cool completely. Store in airtight combined. container. Note: biscottis may be frozen.

Nutrition Information Prep Time: 1 hour, 30 minutes Bake Time: 40 minutes Yield: 4 dozen 1 serving provides approximately: 70 calories 1 g protein 9 g carbohydrates 0 g dietary fiber 3 g fat (1 g saturated) 13 mg cholesterol 15 mcg folate .41 mg iron 20 mg sodium

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News from : April 2, 2015

NAWG Weekly Updates

Wheat Leaders Attend 2015 ABA Convention NAWG President Brett Blankenship and NAWG CEO Jim Palmer attended the 2015 American Bakers Association (ABA) convention in Orlando, Fla. This year’s convention, “The Power of Baking,” focused on leadership and hosted record attendance with over 500 registered attendees. The annual event brings together bakers, retailers, suppliers an‑d partner organizations to learn about the latest trends, develop positions on baking issues and connect with industry colleagues.

“Attending events like this with our industry partners at ABA is very important in developing

stronger relationships with our colleagues along the grain chain.

I appreciate ABA allowing us to join them this year,” said Blankenship. “I appreciate ABA presenting NAWG the opportunity to listen to the industry’s concerns and share our common goals. Enhancing NAWG’s domestic profile is vital to our economic and political success.” For more information on ABA and the convention visit http://americanbakers.org/.

USDA Issues “Actively Engaged” Proposed Rule On March 26, 2015, the U.S. Department of Agriculture published a proposed rule that would make changes to determining whether a farmer is “actively engaged” in a farming operation for purposes of farm program eligibility, as was required in the 2014 Farm Bill.

According to the announcement from USDA, “Under the proposed rule, nonfamily joint ventures and general partnerships must document that their managers are making significant contributions to the

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farming operation, defined as 500 hours of substantial management work per year, or 25 percent of the critical management time necessary for the success of the farming operation. Many operations will be limited to only one manager who can receive a safety-net payment.

Operators that can demonstrate they are large and complex could be allowed payments for up to three managers only if they can show all three are actively and substantially engaged in farm operations. The changes specified in the rule would apply to payment eligibility for 2016 and subsequent crop years for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs, loan deficiency payments, and marketing loan gains realized via the Marketing Assistance Loan program.”

The rest of the announcement can be read http://www.fsa. usda.gov/FSA/newsReleases?ar ea=newsroom&subject =landing&topic =ner&newstype =newsrel&type =detail&item =nr_20150323_rel_0074.html.

Additionally, the text of the rule can be found at http://www.fsa. usda.gov/Internet/FSA_Federal_ Notices/actively_engaged_ farming.pdf.

The comment period on the proposed rule is open until May 26, 2015. NAWG is reviewing the text, and we would be happy to get your input. If you would like to submit your own comments, instructions for doing so are outlined in the rule.

NAWG Hires Oakes as Director of Operations NAWG announced the addition of Brian Oakes as the director of operations to the wheat growers’ team. Oakes will assist in office management and coordination, and will work closely with the policy team to execute wheat policy strategy. Oakes was most recently with FLM+ Public Affairs where he worked directly with Washington, D.C., based clients. Oakes also served as an intern for Representative Ken Calvert (CA-42) and worked for Governor Romney’s campaign in 2012. Oakes received his bachelor’s degree in political science/international relations from the University of California San Diego. He can be contacted at BOakes@wheatworld.org.

Welcome, Brian!

John Deere and Monsanto Additional Industry Partners for Yield Contest The National Wheat Foundation’s new National Wheat Yield Contest (NWYC) has two additional industry partners for its inaugural year. In addition to primary industry partner and sponsor BASF, both John Deere and Monsanto have agreed to serve as additional industry partner sponsors in 2015. The NWYC will kickoff with the planting of the 2015/2016 winter wheat crop this fall. While several

wheat-growing states conduct their own yield contests, there has not been a national competition since 1993. The objectives of the NWYC include knowledge transfer between wheat-grower peers, encouraging the adoption of wheat technologies currently available, strengthening the position of wheat in overall U.S. crop rotations and ensuring U.S. wheat growers’ position as a sufficient and reliable supplier of wheat to meet a growing global need. Competition rules and protocols will be announced later this spring or early summer.

The Word On Wheat: Wheat Advocate Starts Blog/Podcast Series“Where Does My Food Come From?”

Wheat Advocate program participant and farm wife from Montana, Shauna Farver, recently started a new blog/podcast series to put a face and a personal story behind production agriculture. In her series “Where Does my Food Come From?” she has been sitting down with farmers from across the nation to ask them questions about their operations and agribusinesses to shine some light on the truth behind the farm-tofork story.

In her latest part of the series, Shauna talks with Mark and Jenny Rohrich of North Dakota. The Rohrichs grow wheat and other crops on their family farm. They discuss some of the challenges they face as well as how their wheat product is planted, harvested and transported to the local elevator. They are also contributing to the industry in big ways off the farm. The husband and wife duo are partners in an

agronomy business, Maverick Ag, and Jenny is an active advocate for agriculture on her blog, Prairie Californian. Listen to the Rohrich’s story and follow the great work of the NWF Wheat Advocates at http:// wheatfoundation.org/advocatepost-where-does-my-food-comefrom-mark-jenny-rohrich/.

April 16, 2015 USDA Issues Conservation Compliance Rule On Thursday, April 16, the U.S. Department of Agriculture (USDA) posted its final conservation compliance rule for federal crop insurance premium support. It is available at http:// www.fsa.usda.gov/Internet/FSA_ Federal_Notices/conservation_ compliance.pdf for review and will be officially published in the Federal Register, followed by a 60-day public comment period.

NAWG staff joined others from the agriculture and conservation community at a recent briefing conducted jointly by the Farm Service Agency, Risk Management Agency and Natural Resources Conservation Service to discuss the rule.

USDA officials stressed that June 1 is the deadline for submitting the AD-1026 form, which certifies that the producer will not: Plant or produce an agricultural commodity on highly erodible land without following an NRCS approved conservation plan or system; Plant or produce an agricultural commodity on a converted wetland; or Rediscover WHE AT | MAY 2015 15

Convert a wetland that makes the production of an agricultural commodity possible.

NAWG will thoroughly review the rule and determine what comments may be needed on behalf of America’s wheat growers. We encourage members to provide input to us with any issues you would like to see reflected in our comments.

Individuals can also submit comments and instructions for doing so will be available in the Federal Register posting.

Wheat Growers Support Quick Passage of TPA Legislation The U.S. wheat industry applauds bipartisan support for the introduction of legislation to modernize and renew Trade Promotion Authority (TPA). The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 includes improvements to the 2002 TPA law that are key to establishing the groundwork for progressive trade negotiations and outcomes for U.S. farmers and businesses.

“Trade is vital to the U.S. wheat industry with 50 percent of the annual crop destined for export markets. U.S. farmers are eager to sell high-quality wheat throughout the world, but artificial trade barriers often stand in their way,” said NAWG President, Brett Blankenship.

The TPA legislation outlines U.S. trade policy objectives and sets out conditions for the president to negotiate free trade agreements and other trade liberalizing initiatives as well as allowing for expedited 16

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congressional consideration.

Also known as “fast track,” TPA builds confidence with our negotiating partners that once an agreement is reached, Congress cannot change it. The bill also institutionalizes consultation requirements to ensure that Congress and the president maintain a strong partnership in advancing trade policy goals. In a statement issued today, NAWG and U.S. Wheat Associates encouraged the swift enactment of TPA as an essential tool for negotiating market opening free trade agreements.

House Committee Approves WOTUS bill The House Transportation and Infrastructure Committee approved legislation directing the Environmental Protection Agency (EPA) and Army Corps of Engineers to scrap the proposed Waters of the U.S. regulation and develop a new regulation. H.R. 1732, the Regulatory Integrity Protection Act, was introduced by committee Chairman Bill Shuster.

The bill will now proceed to the full House of Representatives for consideration. NAWG supported H.R. 1732, sending a letter of support to Chairman Bill Shuster (R-PA) on Monday.

The committee’s action is in response to the administration’s efforts to finalize the proposed Waters of the U.S. regulation. EPA submitted the final regulation to the Office of Management and Budget for interagency review.

OMB can take up to 90 days to review the final regulation, but they are not required to take the entire time allowed.

NAWG Outlines Tax Reform Priorities The Senate Finance Committee is soliciting input for comprehensive tax reform priorities from interested organizations. NAWG joined a broad coalition of farm and general agricultural groups that sent a letter to the committee outlining the importance of several tax provisions that should be addressed during this process. Specifically, the letter urges Congress to restore the maximum amount of expensing under Section 179 to $500,000 (indexed for inflation) and to make Section 179 expensing permanent. Additionally, the letter urges against reducing the number of farms eligible to use cash accounting, discourages any increase in capital gains rates and discusses the importance the 1031 Like-Kind Exchange provision.

A letter complements NAWG’s other efforts to eliminate the estate tax can be found at http:// www.wheatworld.org/wp-content/ uploads/Agriculture-Industry-TaxReform-Letter-to-Senate-FinanceCommittee-FINAL-04-15-2015. pdf.

Senate Committee on Foreign Relations Talks Food Aid The Senate Foreign Relations Committee held a hearing themed “American Food Aid: Why Reform Matters.” The committee heard from witnesses that support food aid reform and increased flexibility in the Food for Peace program.

During the hearing, Chairman Bob Corker (R-TN) expressed his commitment to reform food aid and allow more flexibility for Food for Peace, pointing

to the reintroduced bill he cosponsored with Senator Coons titled “Food for Peace Reform Act of 2015.” Many senators voiced their support for food aid reform and more flexibility. Ranking Member Cardin agreed that helping the hungry is important and also shared his concerns on the affects such an aggressive bill may have on various industries, especially maritime. During testimony and questions, Dina Esposito, director of the Office of Food for Peace, used many examples to illustrate the need for flexibility. U.S. commodity groups were mentioned several times, specifically those comprised of wheat growers.

However, the significance of U.S. commodity support and contributions to Food for Peace were overshadowed by the idea of reform. The full testimony and hearing can be found at http:// www.foreign.senate.gov/hearings/ american-food-aid-why-reformmatters-04-15-15.

House Passes Death Tax Repeal Act of 2015 The U.S. House of Representatives passed the Death Tax Repeal Act of 2015 (H.R. 1105). The legislation passed on a vote of 240-179. This legislation would permanently repeal the estate tax. NAWG applauds passage of the legislation and has advocated for the Senate to also act against the estate tax.

Senate Agriculture Committee to Address Trade With Cuba The Senate Agriculture Committee held a hearing on Tuesday, April 21, at 10:00 a.m. about opportunities and challenges for agricultural trade with Cuba. The hearing kicked off

with testimonys by administration officials from USDA, the Department of Commerce and the Department of Treasury, followed by a panel of producers, including Doug Keesling, a wheat farmer from Kansas. Information on the hearing can be found at http://www.ag.senate.gov/ hearings/opportunities-andchallenges-for-agriculture-tradewith-cuba.

April 23, 2015 Grain Standards Act Reauthorization Efforts Underway NAWG sent a letter to members of the House Agriculture Committee concerning NAWG’s priorities for reauthorization of the Grain Standards Act. The Act, which governs grain inspections for export and authorizes the Federal Grain Inspection Service (FGIS), is up for reauthorization this year and is under consideration by both chambers of Congress. Specifically, NAWG is opposed to allowing inspections by private entities and supports continuing FGIS’ ability to delegate inspection authority to states. A copy of NAWG’s letter can be viewed at http://www. wheatworld.org/wp-content/ uploads/NAWG-Letter-to-HouseAgriculture-Committee-re-GrainStandards-Act-Reauthorization-420-15-FINAL.pdf.

The House Agriculture Committee’s General Farm Commodities and Risk Management Subcommittee held a hearing to review the Grain Standards Act ahead of its reauthorization efforts. During the hearing, the Subcommittee heard testimony from David

Winkles, president of the South Carolina Farm Bureau Federation; David Cox Sr., national president of the American Federation of Government Employees; and Nick Friant, business unit food safety leader at Cargill in Minnesota, representing the National Grain and Feed Association and the North American Export Grain Association. Information about the hearing, including testimony, can be found at http://agriculture. house.gov/hearing/subcommitteegeneral-farm-commodities-andrisk-management-%E2%80%93public-hearing. Draft bill text for the reauthorization process is expected to be released soon. The Senate Agriculture Committee is also expected to begin its process soon as well. NAWG will continue to actively monitor the process on behalf of wheat growers.

Senate Committee on Agriculture Discusses Trade with Cuba The U.S. Senate Committee on Agriculture, Nutrition and Forestry met to discuss the benefits and potential costs of opening agricultural trade with Cuba. Chairman Pat Roberts (R-KS) began the discussion by stating that granting Trade Promotion Authority (TPA) is good for agriculture and that international trade is vital to our nation. He concluded by stating, “Agriculture has long been used as a tool, not a weapon, a tool for peace and stability.” USDA Undersecretary for Farm and Foreign Agriculture Services Michael Scuse cited the fact that Cuba currently imports around 80 percent of the food its people eat.

The 11 million Cuban citizens, he observed, represent a large Rediscover WHE AT | MAY 2015 17

potential market for American ag producers.

Also among the witnesses was Doug Keesling, a fifth-generation farmer and commissioner of Kansas Wheat. Referencing his recent fact-finding trip to Cuba, he stated, “Cubans eat a lot of it [wheat], and they’re the largest wheat importer in the Caribbean, to the tune of nearly 30 million bushels per year. That would be over 10 percent of all the wheat grown in Kansas going to this one island just a couple days’ sail from U.S. ports.” Other testimonies continued to focus on the great opportunities ag trade with Cuba would create for American farmers.

A full transcript of all witness testimonies, as well as a recording of the hearing, can be found at the Senate Ag Committee’s website, http://www.ag.senate. gov/hearings/opportunities-andchallenges-for-agriculture-tradewith-cuba.

Senate and House Committees Consider Trade Promotion Authority On April 21, 2015, the Senate Finance Committee held a hearing concerning Trade Promotion Authority, where the committee heard testimony from Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, and from Richard Trumka, president of the AFLCIO. The hearing preceded the Finance Committee’s Wednesday consideration of S. 995, bipartisan legislation to renew Trade Promotion Authority. During the markup, the Committee considered a number of amendments and adopted three.

Adopted amendments include: 18 18

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one from Senator Cardin (D-MD) that would add a negotiating objective with the intent of enhancing U.S.-Israel trade; a second amendment from Senator Cardin to make the human rights/ good governance negotiating objective a principal goal; and an amendment from Senator Menendez (D-NJ) that would prohibit TPA from applying to trade agreements with countries that don’t sufficiently combat human trafficking.

The House Ways and Means Committee also began consideration of the TPA legislation. Updates can be found at the Committee’s website, http:// waysandmeans.house.gov/.

NAWG Participates in Field to Market Meeting NAWG Treasurer David Schemm participated in the Field to Market meeting at Coca-Cola headquarters in Atlanta, Ga. Field to Market is working within the agriculture supply chain on sustainability metrics and fieldprint projects with individual food company members. As consumers become more interested in purchasing sustainably grown food, food companies and retailers are looking to work within the supply chain to highlight sustainable production in the United States.

NAWG has been a member of Field to Market for several years, seeking to ensure a greater understanding of wheat production and advocating for wheat growers. During the meeting, the workgroups and separate membership sectors had a chance to meet face to face and discuss work for the coming year. The General Assembly

met to review the organization’s business plan, membership and dues structure. Schemm represents NAWG on the Technology workgroup and Keira Franz represents NAWG on the Information, Communication and Education workgroup.

Palmer Presents Closing Remarks at McFadden Lecture NAWG CEO Jim Palmer gave closing remarks at the Edgar S. McFadden Lecture on Wheat Improvement held in Washington, D.C., at the USDA Whitten Building. The program included Kevin D. Kephart, vice president for Research and Economic Development at South Dakota State University. His talk was entitled “Foundations for the Green Revolution: The Insights of Edgar S. McFadden and Norman E. Borlaug.” Edgar McFadden envisioned and accomplished the first major breakthrough in conferring genetic resistance to stem rust in wheat. His work set the stage for the successes of Dr. Norman Borlaug and is still making a critical difference today in food production. NAWG looks forward to the continued partnership with SDSU and the Edgar S. McFadden Endowment for Wheat Improvement.

April 30, 2015 House Ag Committee Approves Grain Standards Act Legislation The House Agriculture Committee considered legislation to reauthorize the Grain Standards Act (GSA). The proposed legislation—introduced

by Chairman Conaway, Ranking Member Peterson, Subcommittee Chairman Crawford, and Subcommittee Ranking Member

Walz—would reauthorize GSA for five years. It includes some transparency provisions as well as changes to the ways fees are structured. Additionally, the bill would require a review of any state delegated authorities that cease inspections and would require the Federal Grain Inspection Service (FGIS) to step in to provide inspections should state agencies cease their responsibility. If FGIS is not able to step in within a specified timeframe, the bill would allow other state delegated or designated agencies to provide inspections at such facility for up to 90 days.

The Committee approved the legislation unanimously. NAWG is gathering input from our members, and will continue to engage with the House and Senate Agriculture Committees on this important issue. The Senate Agriculture Committee with be holding a hearing next Tuesday afternoon on this topic where the panel will hear from various segments of the value chain. A section-by-section summary of the House legislation can be found at http://docs.house.gov/meetings/ AG/AG00/20150430/103417/ HMKP-114-AG00-20150430SD002.pdf.

“We applaud the efforts by this group of Senators and the introduction of this bill that seeks to protect the water quality of navigable waters and more clearly define what waters of the U.S. includes and does not include,” said NAWG President, Brett Blankenship. “On behalf of the nation’s wheat growers, we look forward to working with Congressional leadership to ensure a swift passage. We are very supportive of this legislation that addresses significant flaws in the proposed WOTUS rule.”

NAWG also joined a group of agricultural organizations voicing support for the Act by signing on to a letter sent to the Senate Committee on Environment and Public Works.

NAWG Attends NAFB Washington Watch NAWG and U.S. Wheat Associates attended the National Association of Farm Broadcasters (NAFB) Washington Watch in Washington, D.C. NAWG President, Brett Blankenship, attended the event and discussed Trade Promotion Authority and the Grain Standards Act reauthorization with broadcasters from around the country.

Washington Watch is held each spring and provides an opportunity for NAWG leaders and staff to interact with farm broadcasters and discuss NAWG issues

This legislation establishes sound principles to guide the agencies’ action on a “waters of the U.S.” rule so the final result reflects the statutory limits created

by Congress.

NAWG Applauds Introduction of the Federal Water Quality Protection Act During a press conference today, a bipartisan group of senators announced the Federal Water Quality Protection Act that requires the Environmental Protection Agency and U.S. Army Corps of Engineers to rewrite the proposed waters of the U.S. regulation.

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News from : April 9, 2015 USDA Report Confirms U.S. Farmers Seeding Less Wheat for 2015/16

By Casey Chumrau, USW Market Analyst As the spring weather emerges and farmers are getting back in their fields, the prospects for the new U.S. wheat crop become clearer. The USDA provided a key piece to the puzzle on March 31 with its first Prospective Plantings report for 2015/16. The agency estimated total U.S. acreage for the 2015/16 harvest at 55.4 million acres, down 3 percent from 2014 but on par with the five-year average.

it would still fall below the fiveyear average of 1.78 million acres.

Plantings will increase in every durum producing state except Idaho, according to the survey.

However, if farmers see more favorable weather conditions at planting time, durum acreage could be higher than this initial estimate.

The report gives the industry its first look at expected spring wheat and durum acres. Based on a farmer survey, USDA projects hard red spring (HRS) planted area will fall 1 percent from last year to 12.1 million acres, slightly higher than the five-year average of 11.9 million acres. According to Reid Christopherson, executive director of the South Dakota Wheat Commission, the report likely reflects price uncertainty moving into the next marketing year.

The Prospective Plantings report also provides an updated look at winter wheat seedings.

USDA estimates total winter wheat plantings reached 40.8 million acres, down from 42.4 million last year but 1 percent higher than its previous estimate.

Of the total area, farmers planted an estimated 29.6 million acres to hard red winter (HRW), the largest U.S. wheat class by production volume. That estimate is down slightly from last year’s 30.2 million acres but 1 percent greater than the five-year average.

USDA showed decreased winter wheat acreage in Kansas, the top HRW producing state and a 70 percent drop in North Dakota.

USDA reported increased HRW acres in Nebraska, Oklahoma, South Dakota and Wyoming compared to 2014, plus a notable increase in Montana since the last estimate.

Following two years of near record low-planted area, durum acreage should increase 18 percent yearover-year to the 1.65 million acres USDA expects. If realized,

Soft red winter (SRW) planted area is less than it has been since 2010/11, according to the survey Plantings fell to 7.75 million acres, down from 8.50 million last year

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and 4 percent below the fiveyear average. Acreage is down in nearly every SRW producing state, including large drops in Ohio, Illinois and North Carolina.

USDA expects white wheat acres, which includes both winter and spring varieties, to reach 4.33 million in 2015, up 7 percent from last year and higher than the five-year average of 4.16 million. Farmers in the Pacific Northwest grow most U.S. white wheat and winter wheat area there did not change much from last year. A 17 percent increase in Idaho’s spring acreage did help push total planted area higher.

Dry conditions are of concern for white wheat farmers but very little of the crop was rated poor by USDA as of April 6.

As always, the weather is the single largest factor in determining a crops potential.

There is still a lot of time between now and harvest and farmers need Mother Nature’s help to turn planted acres into harvested acres.

New Reports Look at Crop Conditions, Winter Damage

By Amanda J. Spoo, USW Communications Specialist USDA released its first official crop progress report for the year, giving better insight into the 2015/16 U.S. winter wheat crop as it emerges from dormancy. The April 5 report rated the national

winter wheat crop as 44 percent good or excellent and 16 percent poor or very poor. Last year at this time, USDA rated the national crop as 35 good or excellent and 29 percent poor or very poor.

For individual farmers and some regions, of course, the picture may not be quite so encouraging.

It is interesting to note that springtime historically is often not kind to wheat. USDA’s “Weekly Weather and Crop Bulletin” notes that a decline in winter wheat conditions is normal between the last autumn report from USDA’s National Agricultural Statistics Service (NASS) and its first spring report.

Over the last 20 years, “substantial improvement in U.S. wheat condition was noted only four times,” according to the bulletin.

The last time that wheat condition appreciably rose during the spring was 1996, when May rainfall on the central and southern Plains helped to revive a droughtravaged crop. In contrast, an April cold snap severely damaged the wheat crop in 2007. (To view the whole bulletin, visit http://bit. ly/1ydcngC.) As for this spring, early-April winter wheat conditions have significantly improved in Texas and Oklahoma, but South Dakota and Nebraska report the opposite. USW Market Analyst Casey humrau reported on March 26 that the following two weeks would be critical to plant development. That period is now past and, in general, the crop still needs a good boost of moisture in most areas.

In Nebraska, there is much concern over what the lack of moisture has done to HRW in the past month. As of April 6, USDA rated Nebraska’s winter wheat as 34 good or excellent and 30 percent poor or very poor. The previous official USDA rating on March 2 estimated 62 percent of the crop was good or excellent and just 3 percent poor.

The spring thaw also revealed a new, regional concern for HRW and hard white (HW) wheat farmers in Nebraska and other central plains states — winterkill.

Larry Flohr, who grows HRW and some HW just north of the Colorado border in the southeastern area of the Nebraskan panhandle, saw good vegetative growth last fall, but he and other farmers to his south and east experienced a rapid temperature drop followed by a dry winter with very little snow.

Now Flohr says he sees winterkill on what he estimates to be 10 percent of his HRW crop with damages ranging from complete loss up to 30 percent loss in yield potential. He says loss of yield potential in the NE panhandle could be up to 15 percent but that potential for losses increases to 25 percent in central and southern Nebraska. In contrast, Bob Delsing, who grows HRW in northwest Nebraska, says that he is experiencing average winterkill damage. He has heard of other producers with 100 percent loss in some fields, but that thus far he has had “very little to none, the conditions are pretty normal this year. We just need some moisture.” Read additional new coverage on winterkill damage in the Midwest at http://www.

nptelegraph.com/news/local_ news/winterkill-damages-nebwheat/article_31d03c04-0ec9525d-a1b0-87dad00664b3.html The April 2 Nebraska Crop Report shares more information broken down by region on crop conditions.

Flour Dumping, Trade Commitments at Issue in USTR Report

By Dalton Henry, USW Director of Policy Last month the Office of the U.S. Trade Representative (USTR) released its annual National Trade Estimates report, a 444-page long summary of trade barriers that U.S. companies and producers face around the world. USW provided input into this report on behalf of wheat producers and their customers in other countries. Here is a link to the full text of the USW submission: http://bit.ly/uswtradebarriers.

The NTE continues to highlight unfairly priced Turkish flour exports as a priority. This is also a major focus for USW. The report states, “…the Turkish Grain Board generally purchases domestic wheat at intervention prices (above world prices) and then sells domestic wheat at world prices to Turkish flour, biscuit and pasta manufacturers. U.S. exporters have expressed serious concerns about the adverse impact subsidized Turkish wheat flour exports have had on their sales in certain third country markets.” USW has demonstrated that this complex scheme serves as an export subsidy, illegal under World Trade Organization (WTO) rules, which harms Rediscover WHE AT | MAY 2015 21 Rediscover WHE AT | MAY 2015 21

millers in countries where Turkey has dumped flour and offsets thousands of tons of U.S. wheat exports.

exports or restrict imports to the detriment of the rest of the world’s wheat producers. Read more at http://reut.rs/1HRfOcM.

Another too familiar barrier highlighted in this year’s NTE is Brazil’s failure to implement a duty-free tariff rate quota (TRQ) of 750,000 MT wheat sourced from non-Mercosur countries.

While the commitment dates back to the 1994 Uruguay Agreement schedule, Brazil has never officially implemented it. Instead, Brazil has provided duty-free access in each of the last three years when its traditional supplier, Argentina, faces production shortfalls and export restrictions that are likely to end this year. USW maintains a strong relationship with Brazil’s millers and appreciates the opportunity to compete on a level playing field when possible. USW also supports the USTR’s commitment to continue engaging Brazil on the issue.

USW is committed to working with the USTR and USDA to monitor trade barriers that U.S. wheat producers face in world markets and to advancing policies that will allow freer trade of wheat and increased food security. The key to accomplishing these goals is the identification of barriers affecting our customers and exporters, and applying constant pressure on U.S. government officials to resolve trade barriers that harm our customers and producers.

One trade barrier that cuts across multiple countries in USTR’s report is the rise in domestic support spending by advanced developing countries. Support in Brazil, India, Turkey and China is increasing in multiple agricultural commodities, including wheat, and the 2015 NTE report called these programs out. A recent study commissioned by several U.S. agricultural organizations, including USW, confirmed there is these countries are violating their WTO commitments on domestic support. The study found these advanced developing countries use a variety of support programs to encourage production, and often subsidize 2222 Rediscover WHE AT | MAY 2015 Rediscover WHE AT | MAY 2015

Wheat Breeders Traveling to Asia to Listen and Share with Milling and Baking Customers

By Amanda J. Spoo, USW Communications Specialist Each year the United States exports, 25 to 35 million metric tons (MMT) of wheat, which accounts for roughly 50 percent of the annual crop. This makes the voice of overseas customers important to U.S. wheat research.

To demonstrate that importance, four wheat breeders will travel with U.S. Wheat Associates (USW) to Asia, April 18 to 26, 2015, on a Wheat Quality Improvement Team (WQIT).

The team will visit with buyers and end-users in Japan, Korea and Thailand to listen and exchange ideas. Their primary goal will be to gather input on wheat quality from key customers to inform their own research and to share what they learn with other U.S. wheat breeders upon their return.

They will also share the successful

efforts of the U.S. wheat industry to improve the quality of newly released varieties.

“It is vital that we actively listen to and respect the needs of our overseas customers,” said USW Vice President and West Coast Office Director Steve Wirsching, who will lead the team. “The impact breeders have on the industry and the livelihood of farmers is huge. Ultimately, if a variety offers higher yield potential but does not have strong milling or baking qualities that domestic and overseas customers need, farmers will feel that impact.”

This is the fourth WQIT led by USW. In 2004, USW sponsored a similar trip to Asia, followed

by Latin America in 2009, and Europe and Northern Africa in 2010. State commissions in Oregon, Washington, North Dakota and Minnesota identified and sponsored top wheat breeders from their land grant universities to join this team.

Dr. Arron H. Carter leads the winter wheat breeding and genetics program at Washington State University where his research focuses on breeding improved wheat varieties for cropping systems in Washington state that incorporate diverse rotations and environments.

Dr. Michael Flowers is an assistant professor and extension cereals specialist at Oregon State University where his research areas include variety trials, nitrogen management in hard wheat and management practices for new Oregon winter wheat varieties.

Dr. Mohamed Mergoum represents North Dakota State University as the Richard C. Frohberg Spring Wheat Breeding/ Genetics Endowed Professor. His program’s main objectives are to develop modern and improved cultivars adapted to the spring wheat region and generate wheat germplasm with valuable economic traits required in cultivar development.

Dr. James Anderson is a professor in wheat breeding and genetics at the University of Minnesota where the program he leads investigates complexly inherited traits, including disease resistance and grain quality, and incorporating disease and pest resistance into new cultivars using marker-assisted selection.

The WQIT is a part of a larger USW effort to address the quality of exported wheat and the needs of importing countries.

It is a logical next step to a 17-year-old program called the “Overseas Variety Analysis” or OVA program. Through OVA, USW cooperates with millers and bakers to compare the performance of flour from newly or soon-to-be released U.S. wheat varieties to the local country’s

cooperators. To learn more about the success of OVA programming visit http://bit. ly/1MynGmr. USW will post photos and other information from the 2015 WQIT on its Facebook page at www.facebook. com/uswheat.

USW Colleagues Remember Jim Mckenna On April 4, USW and our customers in Sub-Saharan Africa lost a dear friend and colleague with the death of Jim Mckenna, who retired last year after 21 years of service as a milling and baking consultant. Regional Vice President Ed Wiese reports that phone calls and emails from members of the region’s milling and baking industries paying tribute to Jim have been pouring into the USW/Cape Town Office.

How Jim’s colleagues remember him echoes his commitment and dedication, as well as his sincere interest in other people that made him so successful. May

his example be an inspiration for all of us as we carry on the reputation of quality, value and reliability for U.S. wheat and the farmers who grow it.

The late USW baking consultant Bennie Beretta introduced Jim to Ed Wiese and Assistant Regional Director Gerald Theus in 1993.

“Jim and Bennie went on to open doors to everyone who is anyone in the South African industry,” Ed remembers. “Their experience and knowledge of Africa helped pave the way for USW's market development efforts, and the success of U.S. wheat exports, throughout the region – specially in Nigeria.”

“His astute and in-depth knowledge of all U.S. and competing wheat classes always amazed me,” Theus says. “Jim’s recommendations for a specific U.S. class targeting a specific market was always spot-on and helped open up new and exciting markets.”

standards. USW shares these results — both good and not so good — with breeders and with state wheat commissions who develop recommended variety lists for wheat farmers. USW currently works with 22 OVA cooperators around the world.

During the upcoming trip, the team will participate in an OVA workshop at the UFM Baking School in Bangkok, Thailand, to hear directly from several Asian

Jim McKenna and Muyiwa Talabi at work sharing a laugh with flour milling customers in Accra, Ghana.

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“Jim's name will be written boldly when the history of USW’s legacy with the Nigerian wheat milling industry is written,” says USW Marketing Consultant Muyiwa Talabi. “He helped establish professional relationships with business giants and CEOs in the milling industry.

Then he encouraged USW to train Nigerians for jobs in milling and baking that has endeared USW to the hearts of so many Nigerian people and organizations. Yet in his own right, he was a technical genius.”

Peter Lloyd, Regional Technical Manager, USW/Casablanca, remembers Jim as a colleague who “was admired, respected and loved by many from the Cape to Cairo. He had an ability to get the best from people, especially those on the shop floor, by leading from the front with a ready smile and gentle guidance. He will inspire me always.”

Jim Mckenna’s influence extended around the world, particularly to many people in the hard red winter wheat production region of the central and southern U.S. plains.

“His committed and diligent work did so much for Kansas wheat farmers,” says Justin Gilpin, CEO of Kansas Wheat. “I learned a lot from Jim about the wheat industry and most importantly, how to value relationships and the importance of treating people the right way. He was one of a kind and it is hard to express what he meant to me.”

“Jim touched so many lives in such a positive way and always had a relaxed way of conveying his message,” Wiese notes.

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“Work was always important to him, but Jim had life's priorities straight. His number one priority was his family and our thoughts and prayers are with them now.

And so for Jim, from South Africa, Nigeria, Ghana, Cote d'Ivoire, Senegal, Cameroon, Angola, Mozambique and many other countries, African drums are beating and wishing him farewell.”

Wheat Industry News Benson Hill Biosystems and Limagrain Announce Research Agreement. Benson Hill Biosystems and Limagrain, through its affiliates Vilmorin & Cie and Biogemma, announced a partnership on April 3 to develop and commercialize traits to increase yields in wheat and corn.

Read the full announcement at http://bit.ly/1y1BIK0.

The American Society of Baking inducted the late Donald K. Dubois as a member of its 2015 Baking Hall of Fame class. Dubois was a trusted ally of bakers starting at Doty Laboratories in 1944 and joining AIB International in 1978. Read more here http://bit.ly/1IGT1k5.

Condolences. We recently learned that the mother of our friend, North Dakota Wheat Commission Marketing Director Jim Peterson, died. Our condolences to Jim and his family on her passing.

IGP Course Will Cover the Importance of Risk Management Within Trading Markets. The IGP Institute in Manhattan, KS, is hosting the IGP-KSU Risk Management course Aug. 2 to 7, 2015. "Our program is not focused

on the use of grain futures and options for speculation; instead, we concentrate on the proper use of futures and options as a risk management tool to control price volatility and market risk," said Jay O'Neil, senior agricultural economist and course instructor Registration closes 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 on how to analyze, interpret and apply rheological results effectively. For more information or to register, visit www.northerncrops.com/courses2/.

WMC Biscuit and Cracker Technology Short Course. The Wheat Marketing Center in Portland, OR, will hold its Biscuit and Cracker Technology Short Course May 12 to 16, 2015.

For more information or to register, visit http://wmcinc.org/ WMC_03_Cookie_and_Cracker. html.

April 23, 2015 Competitive Factors Pressuring U.S. Wheat Export Pace

By Casey Chumrau, USW Market Analyst In a year when record global wheat supplies depressed prices, U.S. farmers have struggled to compete in price sensitive markets. Exports of high protein U.S. classes, often the highest priced, are well ahead of last year but overall sales for all classes through April 9 were 24

percent less than a year earlier.

As the 2014/15 marketing year progressed, a surge in the U.S. dollar helped further increase the competitive position of major exporters with ample supply and lower prices.

The ICE U.S. Dollar Index is hovering around a 12-year high after increasing 22 percent in an 8-month period. A strong dollar makes U.S. products more expensive to global customers.

U.S. wheat exporters believe the strong dollar, in part, is contributing to a slower sales pace. USDA projects 2014/15 U.S. wheat sales will reach 24.0 million metric tons (MMT), which would be well below the five-year average of 29.4 MMT and the lowest mark since 2009/10. With just six reporting periods left in the marketing year, total known U.S. exports and commitments equaled 23.7 MMT, according to USDA. Strong competition is also adding pressure to the export pace. There were quality issues throughout the world crop, but production volume reached a record level for the fifth time in seven years at 725 MMT. Several countries that most directly compete with the U.S. for market share are seeing strong sales.

Canadian exports are benefitting from a second consecutive bumper crop and a significant easing of transportation issues compared to last year. According to Grains Canada, 2014/15* sales through April 12 were 14.7 MMT, 8 percent greater than the same date last year. USDA projects total Canadian exports will reach 23.5 MMT, which would be the most since 1991/92.

Russian exports are also well ahead of last year’s pace despite government intervention.

According to SovEcon, Russian wheat exports through March were 19.5 MMT, 27 percent greater than a year earlier. The agricultural analyst firm expects total 2014/15* exports will reach 21.5 MMT, which would be just shy of the record 21.6 MMT set in 2011/12. This would be quite a feat considering the Agricultural Ministry imposed an export tax on wheat in February, intentionally slowing exports in order to limit inflation and protect the domestic market. The ministry has signaled it may lift the tax on July 1.

Last year, Brazil imported an unusually high volume of U.S. hard red winter (HRW) to help cover the insufficient supply of its Mercosur partner, Argentina.

That continued into the start of 2014/15 with 1.53 MMT of HRW imports. Brazil has imported only an average volume of soft red winter (SRW) several months because improved Argentinian production in 2014/15 will allow for increased exports. USDA expects Argentina to export 5.5 MMT in 2014/15, which is nearly enough to fulfill the Brazilian import need of 5.9 MMT. According to the most recent data from the Global Trade Atlas, Argentina’s total sales through February of 1.89 MMT were nearly four times those of a year earlier. However, Argentina’s government still controls the export licenses for wheat and has yet to authorize the full 5.5 MMT. Despite a year of reduced exports, the U.S. remains the largest single-country supplier of wheat in the world. Lower sales

mean there is more wheat in the bin, ready to supply our customers at any time.

Soft White Farmers Face Inconsistent Conditions Those who watch soft white (SW) wheat conditions in the Pacific Northwest (PNW) are seeing inconsistent temperatures and rainfall take production on a bit of a roller coaster ride that could end with a smaller supply of this important export crop.

After drought conditions limited the 2014 crop, total white wheat supply dropped to 7.73 MMT, the lowest level in seven years.

The most recent USDA National Agricultural Statistics Service (NASS) Prospective Plantings report estimated that white wheat seeded area is up 3 percent from last year to 4.33 million acres (1.73 million hectares) and is greater than the 5-year average of 4.18 million acres.

Assuming average yields can rebound from just 3.84 metric tons (MT) per hectare in 2014/15 — the lowest since 2002/03 — production could eclipse the 7.73 MMT of white wheat produced last year. Washington Grain Commission (WGC) Director of Communications and Public Relations Scott Yates put this into perspective.

“I was talking to an elevator manager a summer ago and he said bad crops usually come in pairs because the conditions that set up the poor first crop linger and influence the next one,” said Yates. “Keeping in mind how early it is in the year, our estimate for the current SW crop in Washington is a little better than last year, but still off our five-year average by about 10 percent.”

Rediscover WHE AT | MAY 2015 25 Rediscover WHE AT | MAY 2015 25

The April 20 NASS Crop Progress and Condition report covering Washington, Oregon and Idaho noted that inconsistent temperatures and strong winds depleted soil moisture and affected spring planting.

NASS rated topsoil moisture in Washington at 20 percent short and 80 percent adequate, while Idaho is rated 24 percent short and 71 percent adequate. Ratings in Oregon were the lowest in the PNW at 44 percent short and 52 percent adequate.

According to Yates, crop conditions in Washington this year have been anything but consistent.

“We had sporadic but fairly severe winter kill in November and I have heard estimates that 25 percent of fall seeded wheat was replanted,” said Yates. “We will take all the precipitation we can get, but timing of the rain is also important. Poor planting conditions last fall and a dry winter have led to thinner stands and moisture now cannot make new plants grow.”

“A warm, dry spell in February had us wondering if we were going to be putting in spring crops so when it finally started to rain, we got busy putting in spring wheat.

I have had 5.5 inches of rain over the last month,” added Randy Suess, who grows SW in Eastern Washington. “While we still have above average temperatures, if we get timely rains in June we should have a good crop.”

Across the border in Oregon, farmers are worried about what impact a low snow pack will have on availability of water for irrigation.

2626 Rediscover WHE AT | MAY 2015 Rediscover WHE AT | MAY 2015

“Farmers say the crop looks good across most of the state with the exception of planting delays in a few of the spring production areas,” said Oregon Wheat Commission Associate Administrator Tana Simpson.

“The snow pack and reservoir levels are low so irrigated and spring wheat is of particular concern. We are going to need additional moisture and mild temperatures to avoid significantly reduced yields.”

Dale Case, a SW grower in northeast Oregon agrees.

“Despite a near normal rainfall, we have had no snow pack this past winter in the area. The spring has been very dry and some fields are starting to show stress,” said Case. “The growers with irrigation from wells should be OK but if they get irrigation water from the river, they may run short for spring wheat or later crops.”

Reports from Idaho round out the impact that an early spring has had on the PNW. “The water outlook for the Snake River Plain is at about 80 percent of what it is normally, but our early spring meant we had to start irrigating early, so it is anyone's guess if the water will hold until crops have finished out,” said Idaho Wheat Commission Member Gordon Gallup.

Timely and adequate moisture through the rest of the season will be essential to make a consistently good crop, which becomes even more important when SW market watchers note that the ratio of U.S. white wheat stocks to use is likely to be down for the third straight year at the end of

2014/15. USW will continue to update customers on conditions.

Additional updates are available from the USDA Weekly Weather and Crop Bulletin at http://bit.ly/ YqaABl. Farmers Expect Average SRW Yields after Late Seeding and a Cool Spring Soft red winter (SRW) wheat supply and demand has settled back to a more familiar place after Chinese buyers took advantage of good quality at an attractive price to import more than 4 MMT of U.S. SRW wheat in marketing year 2013/14. In 2015/16, supply should remain strong and prices attractive even though farmers planted significantly less SRW last fall.

SRW is a versatile, weak-gluten wheat with excellent milling and baking characteristics for cookies, crackers, pretzels, pastries and flat breads. Farmers east of the Mississippi River as well as in Missouri, Arkansas, Louisiana and east Texas grow SRW in rotation with other crops or as a second crop following soybeans. Over the past five years, average SRW production is about 13.3 MMT and average exports (without counting the outlying year in which China dominated the market) are 3.7 MMT. Production in 2013/14 was well above average so, at an average export pace, USDA expects 2014/15 ending stocks on May 31, 2015, to be 5 MMT, about 19 percent more than the 5-year average.

Looking at the SRW outlook for 2015/16, USW Market Analyst Casey Chumrau reported in the last issue of “Wheat Letter” that USDA estimated SRW

planted area was less than any year since 2010/11. Plantings fell to 7.75 million acres, down from 8.50 million last year and 4 percent below the 5-year average, with reductions in every SRW producing state, including large drops in Ohio, Illinois and North Carolina. Wet conditions prevented seeding in some fields and, even though farm gate prices are relatively low, alternate crops offered more profit potential than SRW. Spring has arrived a bit late in much of the eastern United States and that has slowed SRW development. Heading was behind schedule as far south as Louisiana in late March. Dan Weathington, executive director of the North Carolina Small Grain Growers Association, reported that with a bit more warmth, wheat there should start heading. USW colleagues visiting farms in eastern Maryland saw SRW still in the tillering stage on April 17 (see “Wheat Industry News” below).

Taken as a whole, the 2015/16 SRW crop is in good to fair condition (see SRW Conditions

chart below) and yield potential remains about average according to several colleagues who shared their perspective.

“The North Carolina crop looked pretty good going into January but we had extremely cold conditions with some damage earlier this spring,” said Weathington. “Then rains came and kept a lot of farmers from applying nitrogen fertilizer, so I figure we will lose quite a bit of the crop due to rain and cold damage. We will have to wait for the official report in two weeks before we will have an idea how much that will hurt yields.”

“From what I hear, most wheat is in good condition and we predict normal wheat yields of about 64 bushels per acre, but will be from fewer acres this year,” said Diane Handley, executive secretary of the Illinois Wheat Association.

“Here in Ohio, planting dates tell the tale,” reported John Hoffman, who farms near Circleville in the south-central part of the state. “The wheat I was able to seed early looks

SRW Conditions, Percent by State, as of April 21

really good, but in the state, seedings were down by 10 to 12 percent. A lot of that wheat was seeded late and it has struggled to grow. I spoke to a few farmers in northwest Ohio who might abandon part of their crop and on the fields they expect to harvest, yields will be below average.”

Hoffman represents the Ohio Small Grains Marketing Program on the USW Board of Directors.

Extension Grain Specialist Dr. Wade Thomason said condition ratings in Virginia are mostly good but the crop is one to two weeks behind. He said there is significant late-seeded area and a cool, wet spring has limited tillering.

“Most folks say the crop is about one to two weeks later than ‘normal,’” said Dr. Bob Pitman, superintendent at the Eastern Virginia Agricultural Research Center in Warsaw, VA. “Overall, we should see only average yields in the state.”

Wheat Growers Support Quick Passage of Bipartisan TPA Legislation The U.S. wheat industry applauds bipartisan support for the introduction of legislation to modernize and renew Trade Promotion Authority (TPA). The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 includes improvements to the 2002 TPA law that are key to establishing the groundwork for progressive trade negotiations and outcomes for U.S. farmers and businesses.

“Trade is vital to the U.S. wheat industry, with 50 percent of the annual crop destined for export markets. U.S. farmers Rediscover WHE AT | MAY 2015 27 Rediscover WHE AT | MAY 2015 27

are eager to sell high quality wheat throughout the world, but artificial trade barriers often stand in their way,” said National Association of Wheat Growers (NAWG) President Brett Blankenship. “Passage of TPA would send a strong signal that Congress and the Administration are united in their commitment to opening markets for the benefit of farmers and rural communities and creating jobs throughout this country.”

The TPA legislation outlines U.S. trade policy objectives and sets out conditions for the President to negotiate free trade agreements and other trade liberalizing initiatives as well as allowing for expedited Congressional consideration.

Also known as “fast track,” TPA builds confidence with our negotiating partners that once an agreement is reached, Congress cannot change it. The bill also institutionalizes consultation requirements to ensure that Congress and the President maintain a strong partnership in advancing trade policy goals.

Together NAWG and USW encourage the swift enactment of TPA as an essential tool for negotiating market-opening free trade agreements. The United States is currently engaged in negotiations to complete the 12-country Trans-Pacific Partnership (TPP) and the U.S. and European Transatlantic Trade and Investment Partnership (TTIP), which will lower barriers to U.S. wheat exports in several key markets. These agreements will also help ensure that U.S. wheat producers have the same market access as other wheat 2828 Rediscover WHE AT | MAY 2015 Rediscover WHE AT | MAY 2015

exporters, including Canada and Australia.

“Comprehensive free trade agreements create a more fair and level playing field, and U.S. wheat farmers need the leverage that TPA would give U.S. negotiators to have a unified voice in a growing international market,” said USW Chairman Roy Motter.

“Japan and other countries are less likely to put their best offer on the table for politically sensitive agricultural products like wheat unless they have the confidence provided by TPA.” The United States is the world’s largest wheat exporter, offering customers around the globe a reliable, high-quality supply of six wheat classes. In the 2013/14 marketing year, ending May 31, 2014, the United States exported about 32 million metric tons (nearly 1.2 billion bushels) of wheat valued at about $9.7 billion, which supports thousands of jobs and creates economic benefits across the country. More on the industry’s trade work is at www.wheatworld.org/trade or www.uswheat.org/whatwedo/ tradepolicy.

Wheat Industry News NAWG Urges Close Oversight Over Federal Grain Inspection Service (FGIS). NAWG believes there must be a mechanism in place to ensure there are no trade disruptions and urged Congress to reject attempts that would undermine the current system of inspections. Click here to read NAWG’s letter to the U.S. House Committee on Agriculture.

Steve Wirsching Elected Vice-Chair of FGIS Advisory Committee. USW Vice President and West Coast Office Director Steve Wirsching will serve as vicechair of a committee that advises the Grain Inspection, Packers and Stockyards Administration (GIPSA) on the programs and services it delivers under the U.S. Grain Standards Act. Read more at http://www.gipsa.usda.gov/fgis/ advisorycommittee.aspx.

Edgar S. McFadden Symposium on Wheat Improvement. The Edgar S. McFadden lecture on April 20, 2015 at USDA Headquarters in Washington, DC, featured keynote speaker Kevin Kephart,

Vice President for Research and Economic Development, South Dakota State University. USW President Alan Tracy joined NAWG CEO Jim Palmer to give concluding remarks. For more information on Edgar S. McFadden visit www.sdstate.edu/ mcfadden/.

Syngenta Introduces “2015 Voices 4 Wheat” Blog Campaign, a wheat-focused blog that spotlights the wheat production story all year through the experiences of growers and retailers. To follow the 2015 participants on their journey, visit http://voices4wheat.com.

USW Visits Walnut Hill Farm.

Several colleagues who have joined the USW Headquarters staff in the past few months enjoyed a day away from the office April 17 traveling to eastern Maryland and Jason Scott’s family farm near Hurlock. They learned a lot about SRW production and how to calculate yield potential.

They will put that knowledge to work later this year at the annual hard winter and spring wheat tours sponsored by the Wheat Quality Council. A special thank you to Jason and his family for hosting the group. Look for more photos on the USW Facebook page.

Wheat Foods Council Improves Website. This organization, funded primarily

by U.S. wheat farmers through state wheat commissions, does a great job educating nutritionists and other influencers in the U.S. wheat foods value chain.

Its newly re-designed website features expanded content and is even more attractive and easier to navigate. Many overseas customers will want to visit to access the latest information about U.S. wheat quality and food safety. Visit www.WheatFoods. org.

On April 17, this SRW field on Walnut Hill Farm in eastern Maryland was in the tillering stage. Overall, the U.S. SRW crop is about two weeks behind average progress with average yield potential. Walnut Hill Farm is the family operation of USW Secretary-Treasurer Jason Scott near Hurlock, MD.

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 how to analyze, interpret and apply rheological results effectively. For more information or to register, visit www.northerncrops.com/courses2/.

WMC Cookie and Cracker Baking Technology Short Course. The Wheat Marketing Center in Portland, OR, will hold its Cookie and Cracker Baking Technology Short Course June 1 to 5, 2015. For more information or to register, visit http://wmcinc. org/WMC_03_Cookie_and_ Cracker.

IGP Risk Management Course.

The IGP Institute in Manhattan, KS, is hosting this course Aug. 2 to 7, 2015. "Our program is not focused on … the proper use of futures and options as a risk management tool to control price volatility and market risk," said Jay O'Neil, senior agricultural economist and course instructor.

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

Rediscover WHE AT | MAY 2015 29 Rediscover WHE AT | MAY 2015 29

Wheat Scouting 101

By Julia Debes

ore than 90 grain traders, government officials, reporters, millers and even a few farmers started the 2015 Wheat Quality Council’s Hard Winter Evaluation Tour on May 6. Over the next three days, they will canvass the state’s wheat crop from Manhattan to Colby to Wichita and back again. Along the way, they will stop every 15 miles or so to estimate yields in wheat fields on their routes. At the end, the results will be compiled into a yield estimate average for the Kansas hard red winter wheat crop.

M

But, you do not have to be on the tour to scout wheat fields and make your own estimates. To help, we have compiled the steps participants will use to estimate yields so you too can participate.

Justin Knopf, wheat farmer in Saline County, provided some helpful hints he and other farmers use when evaluating their fields.

What You Need: • One yard stick (a ruler will work in a pinch).

• One writing utensil and notepad.

• One calculator (the one on the phone will suffice).

30 30 Rediscover RediscoverWH WHEEAT AT| |MAY MAY2015 2015

• The wheat yield formula (see below in the story).

Optional: • A pocket knife to slice open wheat in the boot stage to examine the wheat head.

• The KWYC (Kanas Wheat Yield Calculator) app, downloaded onto your smart phone.

• A camera to capture an overall view of the wheat field (the one on the phone is fine).

How to Estimate Wheat Yield and Conditions: Step 1: Find a wheat field.

If you are not a farmer or landowner, call a farmer friend or the Kansas Wheat Commission.

Above all else, be respectful of other people’s property.

Wheat Tour Tip: Do not enter a fenced field, just as you would not enter a fenced yard in town.

Step 2: Pick your scouting spot. Knopf suggested going further out in the field than the first few rows, called end rows.

This is where equipment often overlaps and farmers load out their trucks near field entrances, both of which can affect tiller count.

Step 3: Observe general field conditions. Do you see weeds?

Does the field have an odd color (yellow or blue)? Is the wheat stand uniform or are there bare patches in the field? How thick or thin is the canopy (where the leaves from one row touch the other, same as in a forest where the trees touch each other)?

Wheat Tour Tip: Old farmer’s scouting trick: Throw a hat into the field. If the wheat holds it up, it is generally a good, thick stand.

Watch the wind!

Wheat Tour Tip: Color can be an indicator stress, which will reduce yield. A yellow cast can indicate a lack of nitrogen or drought stress. A blue cast indicates drought or heat stress.

Wheat Tour Tip: Yellowed leaves at the bottom of the plant are not necessarily indicative of reduced yield. But, yellow patches on the upper leaves with red spots (pustules) indicate stripe rust .

Wheat Tour Tip: Knopf said to pay close attention to the flag leaf, which must provide the photosynthesis to fill the wheat head with grain. If disease is present or the flag leaf is curled up, the wheat head will likely not fill to its maximum potential.

Step 4: Measure the height of the wheat plant. By this time of year, wheat should be well above your knee.

Wheat Tour Tip: If the wheat is not taller than the rusty can you found in the ditch, it is abnormally short and will be very difficult to harvest.

Step 5: Examine the wheat head. If the wheat head has emerged, count the rows of spikelets (covering of the wheat kernels). Knopf said he generally looks for 12 or more in a row for a good stand of wheat. Do not count the bottom or the top. This is the maximum potential the wheat plant has at this point of growth.

Wheat Tour Tip: The most common spacing between rows is 7.5 or 10 inches.

Step 7: Count the number of stalks (tillers) per foot (12 inches). Record.

Farmer Tip: Officially, for the Wheat Tour, all stalks should be counted. However, Knopf said that secondary tillers (short ones that will feel more like a blade of grass than solid like a tree trunk) are unlikely to mature in time to produce grain at harvest. You decide.

Step 8: Calculate yield, using one of two methods.

Method 1 – Paper calculation.

Select the appropriate formula depending on whether you are in the western, central or eastern third of the state.

Method 2 – Use the app.

Download the KWYC app onto your smartphone.

Enter the Field Name. Get creative like “Wind Turbine” or just enter something basic like “Field 1.”

Enter the county where the field is located.

Optional information: Field size or any observational notes from before.

Hit Save.

Select the field you just created and select New Sample.

Enter the Feekes stage of growth. The app has pictures.

Enter row width.

Enter stalks per foot.

Optional information: Height or a picture of the field.

If the wheat head has not emerged, slide your hand up the stalk. You will feel a bump, called a node, toward the middle third of the plant. Use your pocket knife to slice open the stalk just above that node and you should find the immature wheat head.

The wheat head should look green, not white, and be soft, but not mushy.

Congratulations! You have calculated projected wheat yield.

Hit Save.

Re-click on the sample you edited to see projected yield according to three different formulas: Kansas Wheat Alliance, Crop Insurance and Kansas State University.

Calculate heads per foot, per the formula.

While the above steps help gauge the general health and conditions of the wheat field, the next steps will be how you formulated projected yield. So, get out your handy yardstick!

Multiply the number of heads per foot by the average weight per head, per the appropriate formula.

Step 6: Measure the distance between wheat rows in inches.

Record on your yardstick or notepad.

Multiple the result by 19.213.

Why 19.213? Ask someone more educated than us!

Divide by row spacing.

Step 9: Share your results!

Participants on the Wheat Tour will be tweeting results straight from the field using the hashtag #wheattour15. If you are not on Twitter, share the results with us at Kansas Wheat any way that your prefer – Facebook, e-mail, postcard – we will take them all!

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Stripe Rust Spotted in Kansas, Start Field Scouting Now s the 2015 Kansas wheat crop continues to develop, wheat producers need to be cautious about a growing threat of stripe rust moving across the state. This disease has the potential to cause losses of 40% or more to a wheat crop when it occurs prior to heading on susceptible varieties.

A

According to K-State Research and Extension (KSRE), industry sources in southeast Kansas reported a heavy infection of stripe rust near Altamont, and several more moderate cases around Labette County. KSRE also reports stripe and leaf rust may be active in Barber, Ottawa, Allen, Bourbon and Anderson counties. Farmers statewide should begin scouting their fields in search of stripe rust and other diseases.

"Stripe rust is an important disease of wheat in Kansas,"

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Rediscover WHE AT | MAY 2015

said Erick DeWolf, professor of plant pathology at Kansas State University. " We have experienced several severe outbreaks of stripe rust in the last decade. Many of the most common varieties in the state are vulnerable to the disease including Everest, Armour and TAM 111."

Stripe rust thrives in cool, humid climates, which most of the state is experiencing. The disease grows rapidly between 50-60 degrees Fahrenheit, but is inhibited when night-time temperatures reach 68 degrees Fahrenheit or after several days of temperatures in the mid 80s.

While many producers with sparse infections may choose to "wait and see" while monitoring the disease closely, others with more intense infections may choose to apply fungicides. If

farmers choose to spray, special care should be taken to adhere to label instructions.

"Fungicides may be warranted if the disease is found on the upper leaves prior to heading," DeWolf said. "Fields with a good yield potential should be the top priority. If the disease is still restricted to the lower leaves, fungicides may not be needed; however, it is important to keep checking because stripe rust can increase rapidly."

Evaluating the affect of current crop economics is also important.

KSRE estimates that it could take at least a 5-bushel yield response to a fungicide application to break even, but notes that stripe rust is a disease that can be damaging and is not one to take lightly.

Hello Kansas Wheat.

Maltby Market Analysis

by Dan Maltby

The “official” Wheat Quality Council Tour travels mainly through Kansas this week (and some input from Colorado, Oklahoma and Nebraska is gathered too) looking at wheat fields and then issues an “official” guess of mainly Kansas wheat production Thursday night.

They will see some good fields and some bad fields, and a lot of “not perfect, but…” type of fields. These fields all have problems, from freeze damage, to disease pressure and of course, the ever present “a late rain will make a difference”…

That late rain, or lack of it (and/or a freeze, or too much heat) can indeed really make a difference, and of course, that applies to every wheat field, pretty much everywhere. The Thursday Wheat Tour estimate is not only influenced by yield, but also by a guess of what percentage of the acres will be harvested.

But “for purposes of illustration”… consider this table: “WQC Wheat Tour Kansas estimate vs USDA May Kansas estimate” table .

"Wheat 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Tour" USDA May diff (WT-USDA) %diff 260.7 260.4 0.3 0.12% 313.1 299.7 13.4 4.28% 403.8 387.0 16.8 4.16% 256.7 261.8 -5.1 -1.99% 333.5 344.4 -10.9 -3.27% 333.3 340.0 -6.7 -2.01% 379.1 357.2 21.9 5.78% 392.7 361.0 31.7 8.07% 319.2 319.6 -0.4 -0.13% 419.7 422.4 -2.7 -0.64%

If you are reading this in another state, the reason I used Kansas data is the crop tour used to be called “The Kansas Wheat Tour”, and thus has more complete historical data, and for a state such as Colorado, the tour does not make as many stops in all parts of the state, although, recently this is getting better, and the same could be said for Oklahoma.

Anyways…my point is that as goofy as it might seem, the Wheat Tour’s final estimate on Thursday May 7 will very closely match what the USDA issues this coming May 12 for their first official look at USA winter wheat production for 2015/16.

In the previous 10 years, the average difference between the Wheat Tour’s KS estimate and the USDA’s initial KS estimate is only 1.44%! That is pretty tight.

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 guarantee…dm

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 1

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How does the May estimate compare with the final production tally, as shown in the annual Small Grains Summary?

Here we can see the big swings. This table shows Kansas and Colorado USDA data, from the May estimate to the final production estimate:

USDA KS May KS Sept diff % diff CO May CO Sept diff % diff 2014 260.4 246.4 -14.0 -5.38% 84.2 89.3 5.1 6.12% 2013 299.7 321.1 21.4 7.14% 62.0 40.8 -21.2 -34.22% 2012 387.0 378.0 -9.0 -2.33% 92.3 73.8 -18.5 -20.02% 2011 261.8 276.5 14.7 5.61% 64.5 78.0 13.5 20.93% 2010 344.4 360.0 15.6 4.53% 87.4 105.8 18.4 21.00% 2009 340.0 369.6 29.6 8.71% 73.6 98.0 24.4 33.15% 2008 357.2 356.0 -1.2 -0.34% 67.2 57.0 -10.2 -15.18% 2007 361.0 283.8 -77.2 -21.39% 73.5 94.0 20.5 27.89% 2006 319.6 291.2 -28.4 -8.89% 54.0 39.9 -14.1 -26.11% 2005 422.4 380.0 -42.4 -10.04% 87.8 52.8 -35.0 -39.83%

Wheat prices were lower, again, this week, reflecting an expected shot of rain coming.

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 2 34

Rediscover WHE AT | MAY 2015

This is a Kansas City July wheat chart. It remains in a strong down trend, with new selling coming into the market below the latest red line. New lows bring in new selling.

This is a longer term Kansas City wheat chart. Every line is a week’s worth of price action.

If there is any good news, it is KC wheat is in a “buy zone”, represented by the parallel black lines, roughly from $5.20 to $4.20…which means it is historically cheap.

IF/when…KC closes ABOVE $5.20 (coming out of the buy zone), some relatively minor buy-stops will be triggered.

Unfortunately for long wheat positions, that may not be for several weeks, or even months, and even then, the rally will be met with a lot of skepticism.

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 3

Rediscover WHE AT | MAY 2015 35

This weekly futures table shows the big buy stops (blue fonts) in KC wheat are 90c away. And as stated previously, new red fonts, signifying new closing lows, bring in new selling.

CLOSE

KWK15

KWN15

KWZ15

CK15

CN15

CZ15

WK15

MWK15

MWN15

SK15

SN15

05/01

$4.93

$5.01

$5.30

$3.60

$3.63

$3.80

$4.70

$5.20

$5.35

$9.69

$9.65

04/24

$5.02

$5.08

$5.37

$3.65

$3.70

$3.88

$4.86

$5.35

$5.45

$9.70

$9.71

04/17

$5.09

$5.15

$5.44

$3.77

$3.80

$4.03

$4.95

$5.33

$5.44

$9.69

$9.72

04/10

$5.59

$5.63

$5.90

$3.77

$3.85

$4.03

$5.27

$5.81

$5.87

$9.52

$9.56

04/03

$5.83

$5.86

$6.10

$3.87

$3.95

$4.11

$5.36

$5.96

$6.00

$9.86

$9.91

03/27

$5.53

$5.58

$5.84

$3.91

$3.99

$4.15

$5.08

$5.75

$5.80

$9.67

$9.72

03/20

$5.70

$5.75

$6.01

$3.85

$3.93

$4.09

$5.30

$5.90

$5.94

$9.74

$9.78

03/13

$5.39

$5.44

$5.72

$3.81

$3.88

$4.05

$5.02

$5.68

$5.73

$9.74

$9.78

03/06

$5.22

$5.28

$5.56

$3.86

$3.94

$4.11

$4.83

$5.57

$5.62

$9.85

$9.91

02/27

$5.40

$5.46

$5.75

$3.93

$4.01

$4.18

$5.13

$5.67

$5.73

$10.32

$10.35

02/20

$5.38

$5.46

$5.73

$3.93

$4.01

$4.16

$5.07

$5.67

$5.72

$10.02

$10.06

02/13

$5.64

$5.69

$5.93

$3.95

$4.03

$4.18

$5.29

$5.85

$5.87

$9.95

$10.00

Dec corn

Corn continues to sink, and continues to look like the contract lows will be tested.

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 4

And the long term weekly corn chart…well, it doesn’t take much of a crystal ball to see where another huge corn crop would take prices.

Cash wheat bids are lower this week, again in a broken record performance. The following table points out that cash wheat has dropped 90c in a month. And it wasn’t that great a month ago.

Variability in basis bids is noted, as possibly some firms have rolled to the July (look at Protection and Ark City), while others have not. The Gulf Export bids have rolled to the July, as has the Milling Basis posted in Kansas City, so the balance of these lagging bids will probably roll Monday, BUT this points out that checking around on bids is generally a good idea. Anyway, this table is shown as if all bids are already against the July. I might then expect some of these basis bids will look a little higher next week…

Date 05/01*N 04/24 04/17 04/10 04/03 Date 05/01*N 04/24 04/17 04/10 04/03 BASIS 05/01*N

Dodge $4.53 $4.62 $4.69 $5.19 $5.43 Concordia $4.71 $4.82 $4.89 $5.39 $5.63 Dodge -48

Colby $4.56 $4.62 $4.69 $5.17 $5.53 Salina $4.81-$4.86 $4.92-$4.97 $4.99-$5.04 $5.44-$5.54 $5.73-$5.78 Colby -45

Goodland $4.58 $4.67 $4.74 $5.23 $5.52 Hutchinson $4.64-$4.88 $4.73-$4.97 $4.80-$4.99 $5.27-$5.49 $5.51-$5.73 Goodland -43

Protection $4.66 $4.67 $4.74 $5.24 $5.48 Wichita $4.73-$4.78 $4.82-$4.87 $4.89-$4.94 $5.37-$5.44 $5.61-$5.68 Protection -35

Scott City $4.53 $4.62 $4.69 $5.19 $5.43 Ark City $4.72 $4.79 $4.86 $5.33 $5.57 Scott City -48

Sublette $4.55-$4.55 $4.64-$4.71 $4.71-$4.73 $5.21-$5.23 $5.45-$5.47

Sublette -46, -46

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 5

Rediscover WHE AT | MAY 2015 37

04/24 04/17 04/10 04/03 Date 05/01*N 04/24 04/17 04/10 04/03

-40 -40 -40 -40 Concordia -30 -20 -20 -20 -20

-40 -40 -42 -30 Salina -20, -15 -10, -05 -10, -05 -15, -05 -10, -05

-35 -35 -35 -30 Hutchinson -36, -12 -29, -10 -29, -10 -32, -10 -32, -10

-35 -35 -35 -35 Wichita -27, -22 -20, -10 -20, -10 -22, -10 -22, -10

-40 -40 -40 -40 Ark City -27 -23 -23 -26 -26

-38, -36 -38, -36 -38, -36 -38, -36

OR the basis might not be better next week, as certainly old-crop export demand seems rather limited right now. This week’s export sales showed a REDUCTION in this marketing year’s sales of 51,000 tonnes (1.9 million bushels). Next season’s export commitments are starting to improve, BUT MANY ANALYSTS in the trade are questioning the export demand for this coming season.

Consider this USA wheat supply and demand table. It looks to me like USA wheat production will now be about 120 million more bushels than this past season.

I left most demand, including exports, about unchanged. year carry in production imports total supply

maltby 5/3/15 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 546 540 571 456 306 657 976 862 743 718 590 690 2158 2105 1809 2051 2499 2218 2207 1999 2266 2135 2026 2150 71 81 122 113 127 119 97 113 122 169 145 145 2775 2726 2502 2620 2932 2994 3280 2974 3131 3022 2761 2985

food seed feed/residual domestic use

910 78 182 1170

917 78 157 1152

938 82 117 1137

948 88 16 1052

927 78 255 1260

919 70 150 1139

926 71 132 1129

941 76 163 1180

945 73 388 1406

951 77 228 1256

960 77 160 1197

960 75 165 1200

exports

1066

1003

909

1263

1015

879

1289

1051

1007

1176

880

880

total demand

2236

2155

2046

2315

2275

2018

2418

2231

2413

2432

2077

2080

carryout

539

571

456

305

657

976

862

743

718

590

684

905

stox/use

24.1%

26.5%

22.3%

13.2%

28.9%

48.4%

35.6%

33.3%

29.8%

24.3%

32.9%

43.5%

farm price

$ 3.40

$ 3.42

$ 4.26

$ 6.48

$ 6.78

$ 4.85

$ 5.70

$ 7.24

$ 7.77

$ 6.87

$ 6.05

$

4.35

The carryout swells to 905 million bushels, and the resulting ending stocks/usage ratio balloons up to 43.5%, and the national average wheat farm price drops to $4.35/bushel.

The good news is that’s only about 30c lower than the current prices.

Yuk. And as the world wheat growing condition are currently almost uniformly very good, this outlook table is probably more realistic than a USA wheat farmer would hope.

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 6 38

Rediscover WHE AT | MAY 2015

Possibly USA hard red winter wheat exports gain market share on USA hard red spring wheat, as this spread chart of MGEX July – KC July appears “toppy”. I tend to think spring wheat at a 40c premium to Possibly USA hard red wheat exports gain market share on USA in hard red spring wheat, as this KC futures is more thanwinter enough when the outlook is we are swimming wheat. spread chart of MGEX July – KC July appears “toppy”. I tend to think spring wheat at a 40c premium to Possibly USA hard red wheat exports gain market share on USA in hard red spring wheat, as this KC futures is more thanwinter enough when the outlook is we are swimming wheat. spread chart of MGEX July – KC July appears “toppy”. I tend to think spring wheat at a 40c premium to KC futures is more than enough when the outlook is we are swimming in wheat.

Beans… And while soybeans have resisted setting new lows, (the futures table did not show red fonts in beans), by no means is the soybean technical picture encouraging just yet.

Beans… And while soybeans have resisted setting new lows, (the futures table did not show red fonts in beans), by no means is the soybean technical picture encouraging just yet.

Beans… And while soybeans have resisted setting new lows, (the futures table did not show red fonts in beans), by no means is the soybean technical picture encouraging just yet.

Maltby Market Analysis is provided weekly to members of the Kansas Association of Wheat Growers via email.

To become a KAWG member subscribe, please contact Jordan Hildebrand jhildebrand@ Hopefully you’ve been getting someand moisture, and will continue to get moisture, as whenat prices are kswheat.com. crummy, more bushels help a little.

Hopefully you’ve been getting some moisture, and will continue to get moisture, as when prices are crummy, more bushels help a little.

Hopefully you’ve been getting some moisture, and will continue to get moisture, as when prices are Kansas Wheat #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 7 crummy, moremarket bushelsupdate help a little.

Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 7 Kansas Wheat market update #168 danmaltby.riskmgmt@gmail.com 05/01/15 pg. 7

Rediscover WHE AT | MAY 2015 39

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Upcoming Events MAY 2015 • Wheat Quality Council Hard Winter Wheat Tour, May 4-7 • ADM event, May 14, 11:00 a.m., K-State Agricultural Research Center, Hays

JUNE 2015 • Deadline for Yield Contest entries, June 1 • National Festival of Breads, June 13, Hilton Garden Inn, Manhattan, KS, nationalfestivalofbreads.com