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The official publication of the Kansas Wheat Commission and the Kansas Association of Wheat Growers
NOVEMBER 2015
INSIDE THIS ISSUE National Coop Month WindRiver Grain, LLC Garden City Coop Mid Kansas Coop Farmway Coop Farmers Cooperative Grain Assocation Kansas Cooperatives Invest in Infrastructure and Services
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Volume 2 • Number 11 www.rediscoverwheat.org The official publication of
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1990 Kimball Avenue Manhattan, Kansas 66502 (785) 539-0255
KAWG MEMBERSHIP $100 per year
EDITOR
Marsha Boswell • mboswell@kswheat.com
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ASSISTANT EDITOR/DESIGNER
CONTRIBUTORS
Audrey Schmitz • commintern@kswheat.com
Julia Debes • jdebes@kswheat.com Jordan Hildebrand • jhildebrand@kswheat.com
CEO
Justin Gilpin • jgilpin@kswheat.com
KAWG OFFICERS
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PRESIDENT Michael Jordan • Beloit
VICE PRESIDENT Kenneth Wood • Chapman
SECRETARY/TREASURER Justin Knopf • Salina
IMMEDIATE PAST PRESIDENT Gary Millershaski • Lakin
KWC OFFICERS
CHAIRMAN Jay Armstrong • Muscotah VICE CHAIRMAN Brian Linin • Goodland SECRETARY/TREASURER Mike McClellan • Plainville IMMEDIATE PAST CHAIRMAN Scott Van Allen • Clearwater
Rediscover Wheat is published by the Kansas Association of Wheat Growers (KAWG) and the Kansas Wheat Commission (KWC), 1990 Kimball Avenue, Manhattan, Kansas 66502, twelve times per year. Contents of this publication may not be reprinted without permission.
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In This Issue :
Rediscover Kansas Cooperatives during National Coop Month Teamwork Leads to Grain Business Success for Wind River Grain, LLC Garden City Coop Shares Success by Investing in Services, Infrastructure Together We Achive More: MKC Matches Growth with Investment in Kansas Agriculture Farmway Co-op Invests, Expands to Help Farmers Succeed Past to Present, Farmers Cooperative Grain Association Adapts to Meet Changing Agricultural Needs Kansas Cooperatives Invest in Infrastructure and Servicies Recipe: Tom Turkey Bread Centerpiece IGP Stakeholder News Brief News from National Association of Wheat Growers News from U.S. Wheat Associates Maltby Market Analysis Upcoming Events
Rediscover Kansas Cooperatives during National Co-op Month
By Julia Debes
he local co-op is often a place to stop for a cup of coffee, grumble about today’s prices and pick up the next batch of fertilizer. Even more so, the local co-op is where farmers deliver and store their grain, market their crops, obtain field recommendations and purchase inputs. Every October since the 1930s, the American agriculture industry has joined in celebrating this mutually beneficial business model during National Co-op Month.
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These member-owned, member-controlled businesses handle and market commodities, help members bargain for better prices and sell farm supplies and inputs. According to the Kansas Cooperative Council voluntary membership survey, released in October 2015, 82,600 voting members belong to 85 local/farm marketing and supply cooperatives in Kansas. Simply put, the National Council of Farmer Cooperatives (NCFC) stated, “Farmer cooperatives are farmers.” Outside of farm supplies and marketing, cooperatives also provide credit, insurance, electric service, health care, housing, telephone services and even child care. In fact, nearly one out of every three Americans are member-owners of a cooperative of some type, according to NCFC.
Kansas Cooperative Council estimated cooperatives in all sectors pay $277 million in payroll and $23 million in property taxes. The foremost benefits of a cooperative, however, are the earnings returned to the members who own it. As NCFC explained, “farmer cooperatives exist for the mutual benefit of their farmer members with earnings returned on a patronage basis.” Nationwide, NCFC reported that farmer cooperatives returned $613 million in patronage income to members in 2011. As part of National Co-op Month, Kansas Wheat will highlight farmer cooperatives throughout October. Check back each week for new stories of how farmer cooperatives are investing in the Kansas grain industry, benefiting their farmer owners and contributing to the reliability, quality and value of the Kansas wheat crop each year. Leslie Kaufman, president and CEO of the Kansas Cooperative Council, discussed National Co-op Month on the Kansas Ag Network’s Ag Issues Podcast on Thursday, October 1. Listen to her interview at http://kansasagnetwork.com/2015/ kansas-ag-issues-podcast-10012015/.
These businesses support the health of local economies by creating jobs, paying property taxes and income taxes and giving to charity. In Kansas, the Rediscover E AT | NOVEMBER 2015 3 Rediscover WH WHE AT | NOVEMBER 2015 3
Teamwork Leads to Grain Business Success for WindRiver Grain, L.L.C.
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By Julia Debes oading the first 110-car unit train at WindRiver Grain, L.L.C. in Garden City took four days, far longer than the industry standard 15 hours. The process was plagued by rain, then snow that piled up higher than the locomotive. According to Bob Tempel, chief operating officer for WindRiver, “It was our first and most challenging train.”
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Today, the view at WindRiver is much brighter. The independent company now handles between 40 and 50 million bushels of wheat, corn and milo each year. WindRiver sends shipments by rail to the Texas Gulf for export, across the border directly to Mexican buyers and even to flour mills in California. WindRiver not only exports Kansas wheat and milo, the company also imports corn into Garden City to service local end users. Tempel explained the ability to unload corn and reload wheat or milo creates remarkable efficiencies for both the BNSF Railway Company and WindRiver. Capitalizing on Opportunities Presented In 1997, Cargill, Inc. purchased facilities in Garden City from Bunge Corporation and decided to invest in a shuttle-loading location dedicated to sending 110car unit trains loaded with hard red winter wheat directly to the Texas Gulf for export, according to Tempel. Today, WindRiver is owned by four additional companies, including the Garden City Co-op, Sublette Cooperative, Inc., Irsik and Doll Feed Services, Inc. and Scott Cooperative, Inc. Even with five member-
owners, Tempel said WindRiver has remained an independent and entrepreneurial company, allowing them to work with all the major players across the grain industry to find the best marketing opportunities. For example, Tempel explained that when flour mills in California needed to source hard red winter wheat, readily available in Kansas, WindRiver saw a marketing opportunity. However, the track nearest to the flour mills could not support a full 110-car train. But, the BNSF was willing to work with WindRiver to break out these 110-car trains into smaller units to meet the needs of these flour mills. “The partnership and teamwork between the BNSF and WindRiver has been incredible for both companies,” Tempel said. Expanding Beyond Grain WindRiver’s partnership with the BNSF and their local owners has sparked additional business opportunities for the community of Garden City. First was the construction of an ethanol plant, Bonanza BioEnergy, LLC, which has the capacity to produce 55 million gallons of ethanol annually, using approximately 20 million bushels of feed grains. The ethanol produced is also shipped out via BNSF unit trains. In addition, Garden City’s industrial park now includes a wind distribution center that unloads turbines and blades and the approved site for a dry milk processing plant, which recently broke ground. The Kansas Department of Transportation
also approved the industrial park as a development site for a transload shipping center in September. Tempel said these expansions are part of a common effort to partner with other companies who have similar philosophies. “We have learned our mission is much bigger than ourselves,” he said. “None of this would be possible without the dedicated people within each of our organizations who truly care about one another. Like production agriculture, it takes a lot of teamwork to make it all happen. Developing these mutually beneficial relationships continues to create additional growth opportunities within the community.” Humble Blessings Tempel said WindRiver has a cooperative support network built from relationships with local owners, strong multinational companies as well as a very unique win-win partnership with the BNSF. He said the WindRiver team feels very humbled and blessed to have built partnerships with companies who are committed to helping each other grow. “WindRiver would not be WindRiver without local cooperatives and their producers. They helped build this company,” Tempel said. “How fortunate we feel to be able to work within the agricultural industry; we wake up and go to work for people we really believe in.”
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Garden City Co-op Shares Success By Investing in Services, Infrastructure By Julia Debes n 1915, a group of Garden City farmers banded together to purchase a single wooden elevator with no storage, forming the Garden City Cooperative Equity Exchange. Unfortunately, the area was still in transition from grazing to farming and tough times forced the cooperative to disband in 1917. But, the same group of farmers joined back together in 1919 to form the Garden City Co-op, which today shares their founders’ same steadfast belief in the cooperative model of success.
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According to the Garden City Co-op website, “We came from a group of people who were strong and determined and full of hope through drought, hail and dust storms, and continued to believe that there would be rain.”
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Molly Witzel, communications director with the Garden City Co-op, explained that the cooperative model gives every member-owner a stake in the success of not only their own operation, but also their neighbors and community. “A cooperative is often formed out of a mutual need in a community,” Witzel said. “The memberowned company is proud, committed to success, and happy to share their success with others because this is their home, too.” Witzel explained advancements in farming technologies and overall increases in crop production have allowed the cooperative to grow from that single country elevator to an
extensive network of facilities and services. Today, approximately 150 employees serve more than 2,050 members. The grain division now includes 20 elevators from Ulysses to Shields with a total storage capacity of nearly 28.3 million bushels. Other divisions of Garden City Co-op include crop production, petroleum, transportation and safety.
tractors and yield mapping. Throughout, the cooperative has thrived according the advice of one its founding members, R.J. Ackley, in a historical account, “Our success in the future depends not so much on how hard others fight us, as how well we conduct our own business and the type of service we render to our membership.”
Most recently, Witzel reported the cooperative has invested in grain storage facilities and precision agriculture services, as well as seeking out “skillful and talented staff to work in all divisions of the co-op.” In this effort, Witzel said cooperatives must continue to grow and adapt to address the needs of the future. “Cooperatives need to keep up with technology if they are going to meet the needs of the agriculture industry,” Witzel said. “They must operate as an extension of the farmer, while offering everchanging services to meet the farmer’s needs.” After nearly a century of success, Garden City Co-op has fulfilled that requirement time and time again as agricultural technology has shifted from horse-drawn wagons to auto-steer
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Together We Achieve More: MKC Matches Growth with Investment in Kansas Agriculture
By Julia Debes
ooling resources to achieve better results than could be accomplished individually is the reason many cooperatives formed. That goal is one which Mid Kansas Cooperative Association (MKC), one of the nation’s largest agricultural cooperatives, has abided by since its inception.
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MKC formed in 1964 through the merger of three smaller cooperatives: Buhler Cooperative Association, Moundridge Cooperative Elevator Association and the Farmers Cooperative Association in Groveland. “Reading the minutes from that time is fascinating,” said MKC President and CEO Dave Christiansen. “Discovering the intent and insight of the founding directors of this cooperative has had an impact on who and what we are today.” Since its beginning, Christiansen said MKC has focused on seeking growth daily. But, he clarified that MKC’s growth strategy is evaluated and re-tooled
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regularly by the organization’s board, keeping the cooperative focused on improving services for members. “The founding directosr’ vision was very clear, stating that merging the original three co-ops together and continued growth was projected to be good for the cooperative and its membership. The vision they had has been proven to be right,” said Christiansen. Matching Farmer Productivity with Investment Today, MKC ranks in the top cooperatives in the United States. In October 2015, USDA listed MKC as the 69th largest agricultural cooperative based on total business volume and total assets in 2014. This includes the addition of more than 18 million bushels in storage capacity in the last five years, not including the high-speed train loader in Canton which will have
8 million bushels in storage capacity when completed in spring 2016. Christiansen said the Canton shuttleloader, built in partnership with CHS, provides growers with new access to the export market. In addition to infrastructure, Christiansen said MKC is working to match farmers’ productivity advancements with services offered. “In an effort to match the speed of our growers in all aspects of their business, we have invested in handling speed and space at many grain locations,” Christiansen said. “Our agronomy centers including aerial service have also been upgraded to match the producesr’ needs and our energy department has received significant investments as well.” Christiansen listed additional risk management services including input financing, crop insurance, 28 unique grain contracting, precision ag, double crop revenue programs and 12-month input forward contracting. However, Christiansen pointed out that one of the biggest benefits of continued growth is the ability to invest in staff resources. He said MKC is heavily invested in staff, including internship programs and employee development. “Growth has helped us attract, develop and retain a very talented workforce by giving them plenty of opportunities,” he said. “Membership also benefits from having expertise on staff that we could not provide when we were a smaller cooperative.” Services Available for All Sizes Although MKC may be one of the largest agricultural cooperatives in the United States, its membership represents a cross-section of the agricultural community. “We are fortunate to serve members who choose to farm a few acres to many thousands of acres,” said Christiansen. “In fact, roughly 70 percent of our members would be considered small producers, less than 1,000 acres.” For the rest of MKC’s membership, Christiansen reported just 5 percent of members farm more than 3,000 acres and the remaining 25 percent farm somewhere in between. He added that MKC has added more than 200 members a year each of the past six years.
“Part of our growth has been driven by our ability to meet the customer’s needs regardless of how many acres they choose to farm,” he said. “We get up every day with the intent of making our farmers more successful and people seem to like that.” A Culture of Community Success Christiansen pointed out that with the cooperative model, MKC’s success contributes to the vitality of the rural communities it serves, unlike other business types. “Cooperatives need to take the lead and not be outspent by others who are not as concerned with preserving rural America,” he said. “Direct investment in our communities is certainly vital whether it is property taxes, utilities, personnel expenses or other expenses that we pay that benefit the community directly.” Christiansen said MKC paid more than $32 million in 2014 in rural community support. Additionally, he explained MKC has employees living in 79 different communities where many are actively involved as coaches, Sunday school teachers, 4-H leaders and more. Christiansen also said MKC has donated more than $300,000 in the past five years to local communities as well as $29.5 million in cash redemptions to growers over the last 10 years. “The cooperative business model is perfect for rural American and has stood the test of time,” he said. “If not for people banding together for the common good, there would be many services that would be hard to come by in areas that have a lower population.” In the future, Christiansen said cooperatives must continue their mission of adapting to customer expectations. “As farmers can plant and harvest quicker, they expect their supplier to meet their speed. Our growth has to match our customesr’ or we get left behind,” said Christiansen. “Our founding directors had it right…focus on helping the farmer be successful and you will have a lasting business.”
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Farmway Co-op Invests, Expands to Help Farmers Succeed By Julia Debes
n 104 years, Farmway Co-op has grown from a single petroleum cooperative to one of the largest agricultural cooperatives in the United States. Throughout that entire history, however, Farmway has remained committed to the vision of being a “partner in growth,” according to Mallory Wittstruck, director of communications for Farmway.
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“We want to be the extra hand in the field and the extra hand at the elevator,” said Wittstruck. Today, Farmway encompasses 37 locations in nine counties and includes 166 full-time employees, 2,700 voting members who are active producers and 4,500 non-voting members. In fall 2014, USDA named Farmway as 70th in the top 100 largest agricultural cooperatives in the United States, based on 2013 revenue and assets. Dedicated to a Shared Vision Farmway started in 1911, originally as petroleum cooperative called the Farmers Union Association. Throughout the cooperative’s early history, farmer owners drove expansion into new services and products, including purchases of cream stations,
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grocery stores and new elevators. In 1968, the cooperative expanded into Lincoln County with an elevator. As a result of a contest among members to choose a new name, the cooperative became Farmway Co-op. More recently, Farmway’s investments have been driven by strategies developed by a group of employees. Twenty staff from bookkeepers to senior staff participated in five all-day sessions to develop the core values of: sharing profits and success, leading with innovative and customized solutions, developing professional and passionate employees and providing global market access. The overarching goal of these values, mirroring the early goals of the cooperative, is simply stated on the front page of the Farmway website: “Helping our owners succeed.” Wittstruck explained that vision is upheld by a diverse board that ranges from young producers just getting started to decades-long veterans with valuable experience. She said the board helps Farmway stay focused on serving producers first and making sure the company “is not expanding without reason.”
Growing and Investing in the Community Opportunities for growth and expansion, however, allow Farmway to invest in new infrastructure and services for their farmer-owners. In 2014, Farmway acquired three additional businesses: Bennington Oil Company, Esbon Grain and Fertilizer and the Hansen-Mueller grain elevators in Belleville, Scandia and Courtland. Each acquisition was spurred by different reasons: a single owner looking for a local business to take over, a husband and wife who still work for Farmway but can now take vacation time and the chance to bring additional services to an existing customer base. While the opportunities differed Farmway responded to each by not only purchasing an existing business, but investing in that new location to help it succeed. In Esbon, Farmway installed a 150,000 bushel bin plus a new load out bin – before wheat harvest started. In Courtland, Farmway installed three bunkers, two outbound scales and fixed the grain dryer. In Scandia, Farmway added a 20,000 bushels per hour leg as well as inbound and outbound scales. “We are not here to make quick buck. We are here to help our producers and our community,” Wittstruck said. Providing Reliable Resources In addition to new infrastructure, Wittstruck explained Farmway also consistently invests in safety and continuing education for its employees. For example, Wittstruck said Farmway has invested $2.3 million in bin liners to protect worker safety as well as the services of structural engineer and hazard monitoring at all locations. Farmway also encourages their agronomists to maintain certified crop advisors certifications as well as a certificate of supervision from Wichita State University. “We want to make sure we are a resource for our producers and make sure we are reliable,” Wittstruck said. Even in times of low crop prices, Wittstruck said Farmway is investing farmer-owner dollars wisely to help them achieve the most yield bump at the least cost. For example, she said that while
more farmers in the area are storing grain, the fees for member-owned storage are being directed to provide better infrastructure and technology like precision agronomy and variable rate technology to help farmers succeed in subsequent crop years. The breadth of Farmway’s territory also helps farmer-owners with improved marketing opportunities. Wittstruck said with locations in nine counties, Farmway can spread risk and capture opportunities no matter where the rain falls or not. The reward of that risk is being returned directly to Farmway’s farmer-owners. Wittstruck said this was the eleventh consecutive year that Farmway has retired equity, a decision based each year on the financial situation of the current year. During those 11 years, Farmway has returned a total of $6.5 million in retired equity, including $434,000 in 2015. “We are here to stay,” Wittstruck said. “We are able to adapt and expand and compete and return profits and resources.” Empowering and Encouraging Wittstruck attributed Farmway’s success to dedication to the principles of the cooperative model. “It is one of the most empowering and encouraging business models to be involved in,” Wittstruck said. This year, to celebrate the cooperative business model during National Co-op Month, Farmway hosted a “coopertunity” day picnic with Farmway Credit Union and Rolling Hills Electric Cooperative in Beloit. Additionally, Farmway is currently holding a coloring contest for elementary school students, donating hamburger patties to local schools and conducting a food pantry donation drive challenge at all locations. In 2014, Farmway donated 2,000 pounds of items to seven local food pantries. Activities like these demonstrate that even while Farmway continues to grow, the cooperative remains dedicated to the communities and farmers at the heart of its operations. “We are a cooperative that has been here for more than 100 years. We are not looking to leave,” said Wittstruck. “This is Kansas. This is our home too.”
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Past to Present, Farmers Cooperative Grain Association Adapts to Meet Changing Agricultural Needs By Julia Debes ansas history is filled with stories of farmers who banded together to establish cooperatives, build communities, thrive in good times and survive in bad. Farmers Cooperative Grain Association in Conway Spring shares that narrative of coming together and adapting to changing agricultural needs throughout its more than 60 year history.
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After conducting community meetings and consulting with other cooperatives, local farmers joined forces in 1953 to form a cooperative and raise funds for a grain elevator. Farmers Cooperative Grain Association accepted the first load of grain at that single elevator with 250,000 bushels of capacity and an office in 1955. Today, the cooperative has more than 4 million bushels of capacity at three locations in Belle Plaine and Conway Springs as well as several fertilizer rigs and fuel, propane and feed trucks,
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according to Pat Lies, Farmers Cooperative Grain Association general manager.
will need to help their members thrive in a changing agricultural economy.
Lies said recent investments have included a new leg, additional storage and double scales at the Belle Plaine location. Additionally, he reported the cooperative has returned approximately $14 million to farmer/owners in cash over the last five years, which benefits not only farmers/owners, but also local stores, area implement dealers and other community businesses.
“Co-ops will need to eliminate any unnecessary cost and yet keep up with the increasing speed at which producers can harvest a crop and bring it to the elevator,” said Lies.
“The Co-op seems to have had and still does have steady growth,” said Lies. “The Co-op’s main revenue streams are fertilizer/ chemicals and grain. The focus has been mainly on these core units of the Co-op.” With lower crop prices, however, Lies said the cooperative will have a lower margin structure. He explained all cooperatives
Luckily, cooperatives like Farmers Cooperative Grain Association have a long history of adapting to an ever-shifting agricultural landscape. All thanks to a group of farmers who made the initial investment in a better future for all. According to the cooperative’s website, “From the beginning the Co-operative met it challenges and ‘hats off’ to those early stockholders who 50+ years ago sacrificed their time, effort and invested in the future unselfishly. If it wasn't for the co-operative pioneers of years past, today this history wouldn't be written.”
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Kansas Cooperatives invest in Infrastructure and Services
By Julia Debes and Jordan Hildebrand
o some, co-ops are merely the white prairie skyscrapers they see dotting the Kansas skyline, but to farmers these cooperatives mean much more. These organizations have changed as farming itself has changed, not because they simply want to, but because they needed to. Agricultural cooperatives have responded to farmers’ changing needs by continually investing in new infrastructure, innovative services and helpful resources for farmers, all of which were celebrated during National Co-op Month in October.
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National Co-op Month A group of entrepreneurial farmers joined together in 1919 to form the Garden City Coop. Advancements in farming technologies and overall increases in crop production have allowed the cooperative to grow from a single country elevator to an extensive network of facilities and services. Today, approximately 150 employees serve more than 2,050 members. The grain division now includes 20 elevators from Ulysses to Shields with a total storage capacity of nearly 28.3 million bushels. Other divisions of Garden City Coop include crop production, petroleum, transportation and safety, investments in grain storage facilities and precision agriculture services. 14
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In 104 years, Farmway Coop has grown from a single petroleum cooperative to one of the largest agricultural cooperatives in the United States. Today, Farmway encompasses 37 locations in nine counties and includes 166 full-time employees, 2,700 voting members who are active producers and 4,500 nonvoting members. In fall 2014, USDA named Farmway as 70th in the top 100 largest agricultural cooperatives in the United States, based on 2013 revenue and assets. Pooling resources to achieve better results than could be accomplished individually is the reason many cooperatives formed. That goal is one which Mid Kansas Cooperative Association (MKC), one of the nation’s largest agricultural cooperatives, has abided by since its inception. In October 2015, USDA listed MKC as the 69th largest agricultural cooperative based on total business volume and total assets in 2014. This includes the addition of more than 18 million bushels in storage capacity in the last five years, not including the high-speed train loader in Canton which will have 8 million bushels in storage capacity when completed in spring 2016. Farmers Cooperative Grain Association accepted the first load of grain at a single elevator with 250,000 bushels of capacity and an office in 1955. Today, the
cooperative has seen remarkable growth with more than 4 million bushels of capacity at three locations in Belle Plaine and Conway Springs as well as several fertilizer rigs and fuel, propane and feed trucks. In southwest Kansas, WindRiver Grain, L.L.C. is a familiar name to farmers. The independent company handles between 40 and 50 million bushels of wheat, corn and milo each year. WindRiver sends shipments by rail for both domestic use and export. WindRiver’s partnerships have sparked additional business opportunities for the community of Garden City. First was the construction of an ethanol plant, Bonanza BioEnergy, LLC, and then a wind distribution center that unloads turbines and blades, as well as the approved site for a dry milk processing plant which recently broke ground. These expansions are part of a common effort to partner with other companies who have similar philosophies. Investing in infrastructure and service improvements has been vital to the growth of Kansas Cooperatives. According to MKC President Dave Christiansen, “Part of our growth has been driven by our ability to meet the customer’s needs… We get up every day with the intent of making our farmers more successful and people seem to like that.”
Tom Turkey Bread Centerpiece Ingredients
Dough: 1 1/4 cups warm water 3 1/4 cups all-purpose flour 2 tablespoons dry milk 2 tablespoons granulated sugar 1 1/2 teaspoons salt 2 tablespoons oil 1 1/4 teaspoons bread machine yeast or fast rise yeast Decorations: 1 large egg 1 tablespoon water 1 raisin
Directions
1. Bread Machine Method: Place ingredients in the pan in the order listed and select the Dough setting; press start. Check dough after 5 minutes. Dough should form a ball around the kneading blade. If it is too dry, add 1 tablespoon of water; if too wet, add 1 tablespoon of flour at a time. When cycle has been completed, remove dough from machine. 2. Traditional Method: Dissolve yeast in water (110115 degrees F) and mix in the remaining ingredients. Knead dough 7-8 minutes. Cover; let rise until double. Punch down dough, cover, and let rest 10 minutes. 3. Frozen Dough Method: Thaw 1 1/2 pounds of frozen bread dough, following
manufacturer' s instructions, but keep dough cool. 4. To shape turkey: Divide dough in half. Form one-half into a ball and flatten with rolling pin into a 6-inch circle. Place on large greased baking sheet. 5. Cut remaining half into ten equal pieces; shape into balls. Form eight of the balls into teardrop shapes about 4 inches long. Flatten with rolling pin. Using scissors, make clips on sides and top to form feathers. Place around turkey for tail feathers. 6. For head and neck, roll one ball into an 18-inch rope. Twist rope; fold in half. Using fingers, make a 3-inch vertical indentation in the body. Place rope in the indentation placing fold at bottom. Curve top so it resembles a candy cane, pinching ends together to seal.
7. Cut remaining ball into two pieces; flatten each into 2-inch circles. Cut wedges out to form feet. Tuck top of feet under body. 8. For beak, take scrapes of dough and flatten. With scissors, cut a diamond shape; fold in half. Position in curve of the head. 9. For eyes, flatten raisin and cut in half. On each side of beak, clip dough with scissors and place raisin in cuts. 10. Beat together 1 egg and 1 tablespoon water. Using pastry brush, brush entire surface with mixture. Let rise uncovered 25-30 minutes or until almost double. 11. Bake at 350 degrees F for 2530 minutes or until golden. (If one area browns more quickly cover with foil and continue baking.)
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October 2015
STAKEHOLDER NEWS BRIEF Moving the Mission October brought us cooler weather, visits to pumpkin patches and lots of tailgating. In addition, farmers are wrapping up their fall harvest and starting to think about planting their summer wheat crops. This month, we hosted the Grain Milling – HACCP course with our AIB International partners returning 24 participants to their jobs with a certified HACCP certificate. We also assisted with the planning and promotion of a Pet Food two-part workshop through our work with the grain science department and Watt Global Media. There were more than 180 participants and it was held the last week of the month. Lisa Long
In addition, the institute hosted the K-State Research and Extension Annual Conference Research Mini Symposium, “New Precision Technologies and Ag Decision.” With 80 people participating, the group learned about GPS systems, UAS (unmanned aircraft systems) operations and ways to increase profitability by using technology. This is an example of how we schedule other events in our building to keep it occupied. If you know of others who
might want to use our facilities or services, please let us know. We can assist with the event planning and catering connections. As we look ahead to the rest of the year, we have six courses taking us to the end of 2015 and three ringing in the New Year in January. On the distance education front, our team along with our GEAPS partners received the 2015 Celebration of Excellence Award for Innovative Noncredit Program from the University Professional and Continuing Education Association’s Central Region. Pat Hackenberg accepted the award in Madison, Wisconsin on our behalf. Finally, we are excited to have our new interim associate director in place. Brandi Miller officially assumed those duties this month. We have begun a search for a program specialist to join our team so you can expect exciting staff additions in the months to come. Best Regards,
Lisa Long Events Coordinator
Expanding Leadership The IGP Institute has a new administrative leader. Brandi Miller is serving as the interim associate director of the institute. Miller was formerly the institute’s assistant director and distance education program coordinator. Along with fulfilling her administrative duties, Miller plans to continue her leadership of the distance education program. She assumes this new administrative position from Mark Fowler, associate director and flour milling curriculum manager, who announced his departure effective in December 2015. Brandi Miller “Under Brandi’s leadership the distance education program has grown significantly. We are excited to have Brandi’s innovative ideas and outstanding leadership guiding the programming and team at the IGP Institute,” says Gordon Smith, IGP Institute director and grain science and industry department head.
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66506–7000 | Tel. 785-532-4070 | Fax 785-532-6080 | www.grains.k-state.edu/igp | igp@ksu.edu
The communications team members have been at work capturing photos and video of Kansas sorghum harvest during October for publication materials.
Accolades The distance education program offered in partnership by GEAPS and Kansas State University received the 2015 Celebration of Excellence Award for Innovative Noncredit Program. “This speaks to the hard work of our members,” says Doug Forst, GEAPS/K-State distance education committee chair. “Our partnership continually works to deliver the highest-quality content in the best possible format, and this award shows that we are on the cutting edge of online, professional education.” The University Professional and Continuing Education Association considered several criteria for the award: cost-effectiveness, longevity, innovation, diversity, quality, and contribution to adult/continuing education. The organization is separated into five regions, and each region has an individual awards program.
Participants of the AIBI-KSU Grain Milling: Food Safety and HACCP Workshop enjoy their Call Hall ice cream break after touring the Hal Ross Flour Mill.
Where in the World 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. The IGP Institute team hosted representatives from ADM Milling and Warburtons Bakery to discuss North American grain milling and the baking industry. • Participated as PHL Innovation Lab representative at the First Congress on Post-Harvest Loss Prevention organized by the ADM Institute for the Prevention of Post-Harvest Loss in Rome, Italy. • Traveled to Guatemala to work with the PHL Innovation Lab project. • Participated as a speaker at the U.S. Wheat Associates Grain Storage Seminar in Taipei, Taiwan. • Traveled to Vietnam for USSEC to speak at a regional Feed Marketing meeting. • Hosted the ADM Milling Division and Warburtons, the largest bakery in the U.K. • Attended an industry partnership meeting with IAOM and GEAPS.
Trainings and Activities Courses and activities held in October. • AIBI–KSU Grain Milling: Food Safety and HACCP Workshop GEAPS and Kansas State University received the 2015 Celebration of Excellence Award for Innovative Noncredit Program in Madison, Wisconsin.
• Petfood Innovation Workshop: Next Generation Treats and Kansas State University’s Pet Food Experience • IGP 700 – Fundamentals of Animal Nutrition • AFIA 500 – Fundamentals of Feed Manufacturing
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News from : NAWG Weekly Updates October 8, 2015 NWF Launches Inaugural National Wheat Yield Contest The National Wheat Foundation (NWF) launched the first National Wheat Yield Contest in more than 20 years this week, publically announcing the official contest rules and opening registration. The highly anticipated yield competition is made possible by the generous support of industry category partners BASF, Monsanto, John Deere and WinField. “We have been eagerly awaiting the launch of the National Wheat Yield Contest and look forward to U.S. wheat farmers competing with the best available technology to demonstrate how they can increase productivity, drive innovation and enable knowledge transfer between growers,” said NWF Chairman Dusty Tallman, a wheat grower from Brandon, Colo. Wheat growers can compete in two primary contest categories: winter wheat and spring wheat. There will be two sub-categories for each category, respectively, for dry land and irrigated wheat production. Entrants must be a producer, at least 14 years 18
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of age and a member of their recognized state wheat grower association or, if from a state without a recognized state wheat grower organization, a member of the National Association of Wheat Growers (NAWG). All contest entries must use certified or branded, and currently commercially available, wheat seed. Five national winners will be recognized in each category and sub-category. Winners of the inaugural contest will be formally recognized at the 2017 Commodity Classic in San Antonio, Texas. For full contest rules and to enter the 2015-16 National Wheat Yield Contest, go to the NWF website at wheatfoundation.org. Trans-Pacific Partnership Negotiations Conclude The lead negotiators for countries participating in the Trans-Pacific Partnership (TPP) talks announced they had concluded negotiations. While the text of the agreement has not been finalized, rules under the Trade Promotion Authority require President Obama to notify Congress 90 days before he intends to sign the agreement, and the text of the agreement must be
made available to the public for 60 days. Congress must also vote on the agreement itself with a simple majority vote threshold in both chambers. NAWG has been very engaged to ensure wheat growers’ interests were protected and looks forward to working with Congress to determine how the agreement impacts U.S. wheat growers. NAWG President Brett Blankenship said, “Trade agreements are essential for U.S. wheat growers with more than 50 percent of our crop heading overseas. Concluding TPP negotiations is a step in the right direction.” Following the announcement of the conclusion of the talks, USDA Secretary Tom Vilsack praised the agreement saying, “An agreement on the Trans-Pacific Partnership negotiations provides a more level playing field in trade for American farmers. The agreement would eliminate or significantly reduce tariffs on our producers and deter non-science based sanitary and phytosanitary barriers that have put American agriculture at a disadvantage in TPP countries in the past.” Though the details of the agreement have not been officially
released, USDA has made available a series of fact sheets intended to illustrate the benefits of TPP on a state-by-state and a commodity basis. Information about wheat can be found at http://www.fas.usda.gov/sites/ default/files/2015-10/tpp-wheat. pdf. Ag and Industry Groups Urge Congress to Extend PTC Deadline In 2008 following a deadly commuter train crash, Congress passed legislation that would require the railroads to install Positive Train Control (PTC) technology to enhance the safety of train operations. The congressionally mandated deadline for PTC to be up and running is December 31, 2015. Though the railroads have been working to fully implement PTC, there have been a number of challenges along the way that have made it impossible to have the technology fully implemented by the statutory deadline. The Government Accountability Office recently released a report supporting this conclusion. As such, the broad agricultural community, including NAWG, has engaged in a number of advocacy efforts to request that Congress extend the enforcement deadline. It remains to be seen what the path forward will be for an extension. Possible options include congressional consideration of standalone legislation, or an extension could be included as part of a broader highway transportation bill, which Congress must consider before the current authorization expires on October 29.
NAWG Attends Weed Resistance Global Symposium The Weed Resistance Global Symposium, sponsored by Bayer CropScience AG and held in Paris, France, addressed the challenge of herbicide resistance from a global perspective. Leading experts in the field of weed science presented the latest research findings and information on resistant weeds for the main broad acre crops, including wheat. The Symposium offered a forum for discussion and exchange of experiences for the implementation of practical integrated weed management solutions. Over the last 15 years, global weed resistance has increased by 60 percent. In the United States, 57 percent of farmers indicated experience with glyphosateresistant weeds on their farms in 2014, and 13 weed species are now confirmed resistant to five different herbicides. It is clearly a burgeoning issue that threatens productivity for many farmers. Bayer CropScience is urging all stakeholders, including those on the farm and in public and private institutions, to do more at all levels to educate about resistance and to promote practices that include the integration of chemical and non-chemical management practices to prevent the obsolescence of current weed control measures. Over 240 people attended the Symposium. Gordon Stoner, NAWG first vice president from Outlook, Mont., Tyler Anderson, chair NAWG Research and Technology Committee from Pine Bluffs, Wyo. and NAWG staff represented U.S. wheat farmers at the event.
October 15, 2015 Court Stops Waters of the U.S. Regulation The 6th Circuit Court of Appeals stayed the Waters of the U.S. regulation nationwide. This action puts the new regulation on hold pending further review by the courts. The courts will now be able to review the various lawsuits brought against the Environmental Protection Agency (EPA) by states, agriculture and business groups. A temporary injunction was pending in 13 states, but the action now applies nationwide. NAWG is urging Congress to take action and send the regulation back to EPA and the Army Corps of Engineers to be rewritten. The court action is a promising sign that the wideranging concerns voiced about the regulation are getting attention. NAWG Urges Farmers to Contact Congress Supporting PTC Extension With the impending expiration of the short-term transportation program extension at the end of October, NAWG encouraged producers to contact their senators and members of Congress to urge them to support an extension of the Positive Train Control (PTC) deadline, either as part of a broad transportation reauthorization bill or as standalone legislation. Enacted in 2008 following a tragic commuter train crash, PTC technology is intended to enhance the safety of train operations. Congress mandated this technology be implemented by December 31, 2015. The railroads have indicated that, despite their efforts thus far to install this technology, it will WHEEAT AT || NOVEMBER NOVEMBER 2015 2015 19 19 Rediscover WH
not be possible to have PTC fully implemented by the statutory deadline. Additionally, the railroads have indicated that if the deadline is not extended, they will have to dramatically scale back, or potentially cease, operations. As such, NAWG has been actively advocating for an extension. The most effective voices that members of Congress can hear from are their constituents. Please contact your congressional offices and urge your senators and representatives to support an extension. 2015 Fall Wheat Conference Around the Corner Each year, the Fall Wheat Conference brings together wheat grower states and leaders from NAWG and U.S. Wheat Associates to discuss policy and begin planning for the year ahead. This year’s conference will be held in Incline Village, Nev., from November 3-6. For more information on the conference and to register, visit the NAWG Meetings and Events page at http://www.wheatworld.org/ meetings-events/. 2015 WILOT Class Selected The 2015 class of the Wheat Industry Leaders of Tomorrow (WILOT) program, a leadership development program of the National Wheat Foundation (NWF) come from five different wheat-growing states. The 10 participants include wheat growers, as well as state and national wheat organization staff. The participants will engage in an intensive five and a half day training exercise covering diverse topics such as working with differing personalities, traditional 20
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and social media training, farm policy and advocacy, policy issues relevant to wheat growers and the latest in wheat research. This year marks the 19th consecutive year for the WILOT program, which has been funded since its inception by a generous grant from Monsanto. Participants include Tom Bernhart (ND), Timmy Thomas (NC), Jordan Hildebrand (KS), Dustin Johnsrud (ND), Brent Martin (OR), Lyle Benjamin (MT), Jim Palmer (DC), Gordon Stoner (MT), Joshua Tonsager (DC) and Hugh Whaley (NC). NWF Accepting Applications for Jerry Minore Scholarship The NWF is accepting applications for the Jerry Minore Memorial Scholarship. Four scholarships will be awarded to students who have a personal connection to the wheat industry and a planned career path in agriculture. In its fourth year, the Jerry Minore Memorial Scholarship honors both high school and college students who have demonstrated success in academics and leadership roles. The scholarship is named in honor of Jerry Minore, a longtime friend of, and an active participant in, the wheat industry. To honor Jerry’s life and work, the Minore Memorial Scholarship will fund two $1,500 scholarships and two $1,000 scholarships for the 2016-2017 academic year. All applications must be received via e-mail on or before December 11, 2015. Applications can be e-mailed to pmillard@ wheatworld.org.
October 22, 2015 Senate Agriculture Committee Talks Biotechnology For the first time in 10 years, the Senate Agriculture Committee held a hearing on biotechnology. In speaking on the importance of the advancements made in those 10 years, Chairman Roberts (RKS) called biotechnology a “topic that is of utmost importance for producers in meeting the global food challenge.” Testimonies were heard from government agencies on regulatory efforts on biotechnology including U.S. Department of Agriculture’s Animal and Plant Health Inspection Service, the U.S. Environmental Protection Agency’s Office of Pesticide Programs, and the Food and Drug Administration’s Center for Food Safety and Applied Nutrition. The committee also heard from a variety of witnesses along the value chain including a producer, a food manufacturer, consumer groups and a medical expert. Although the hearing largely focused on the regulatory aspect of biotechnology, GMO labeling was also discussed in testimony and follow up questions. Ranking Member Stabenow (D-MI) announced that she is working with Senator Hoeven (R-ND) and Chairman Roberts on a GMO labeling bill, stating that the bill will be different from the version passed by the House earlier in the year, as she does not believe the House-passed bill could pass in the Senate. View the full testimonies and hearing at http:// www.ag.senate.gov/hearings/
agriculture-biotechnology-alook-at-federal-regulation-andstakeholder-perspectives. House Agriculture Committee Looks at Foreign Subsidies The House Agriculture Committee held a hearing this week to explore foreign subsidies and the distorting impact those subsidies have on markets, putting U.S. agriculture products at a disadvantage. Dr. Dermot Hayes, Professor and Pioneer Chair in Agribusiness at Iowa State University, was among the witnesses. Dr. Hayes recently conducted a study, funded by the U.S. Wheat Associates that looked at the economic impacts that China, India, Turkey, Brazil and other developed countries’ support programs have on the U.S. producer. The study found that these four countries exceed their trade commitments, resulting in driving down prices received by the U.S. producers. The other testimonies reviewed programs that distort cotton, sugar and dairy. The Committee dived into particular programs and possible avenues the U.S. could take to prevent further loss and market distortion. The Committee also questioned the witnesses on their opinion on the Trans Pacific Partnership (TPP). Although the full text of the TPP agreement is not available, the witnesses provided a positive outlook on the deal but could not give full support without reviewing first. Read more about the hearing at http://agriculture. house.gov/news/documentsingle. aspx?DocumentID=2966.
NAWG Participates in Pollinator Conferences The NAWG staff participated in back-to-back pollinator related conferences important to wheat growers: the Honey Bee Health Coalition (HBHC) and the North American Pollinator Protection Campaign (NAPPC) International Conference. HBHC has been in existence for 18 months, and is making progress towards a coordinated agricultural solution to providing greater protection for the declining honey bee population and providing opportunities for honeybee colonies to grow and thrive. Participants included representatives of federal agencies, agriculture and non-agriculture industry organizations, tech providers and state departments of agriculture, among others. Presentations were made after lengthy discussions by the four working groups that include hive management, crop pest management, forage and nutrition and outreach and education. Many of the HBHC participants attended the following NAPPC International Conference where a myriad of experts on pollinator protection provided updates on honeybee health grants ranging from the impact of insecticides on hive health to the ability of honeybees to self-medicate. NWF Announces 2015 Wheat Harvest Photo Contest Winners The National Wheat Foundation (NWF) announced the winners of the 2015 Wheat Harvest Photo Contest. Over 300 photos were submitted through e-mail and shared on NWF’s Facebook page and website. NWF’s directors voted to determine the winning photos.
First place, receiving an iPad, is Michelle Jones. Michelle’s photo was taken near Broadview, Mont. The three runners up, each receiving a $50 gift card, are Brittany Van Driesten’s photo taken near Danville, Kan., Casey Graham’s photo taken near Simla, Colo., and Brenna Rietmann’s photo taken near Ione, Ore. The winning photos will be displayed in the Wheat Growers office in Washington, D.C. Check out the winning photos at http://wheatfoundation.org/ national-wheat-foundationannounces-2015-wheat-harvestphoto-contest-winners/. NWF Recaps “The Truth About Glyphosate” Blog Series The NWF blog, The Word on Wheat, wrapped up the five part series titled, “The Truth About Glyphosate.” The final part takes a look back with a recap of everything we’ve learned about glyphosate. Glyphosate is the active ingredient in many “nonselective” herbicide formulations, used to control weeds. Nonselective herbicides control most plants, while selective herbicides are designed to control specific types of plants. Farmers apply non-selective herbicides to control weeds before crop planting. Most farmers choose glyphosate-based herbicides because they are a simple and cost-effective way of controlling many types of weeds. Glyphosate-based products are popular outside of agriculture, too. They are also commonly used to control weeds in gardens and around lawns. Read the full recap at http://wheatfoundation.org/thetruth-about-glyphosate-part-5glyphosate-use-in-wheat-a-recap/. Rediscover WH WHEEAT AT || NOVEMBER NOVEMBER 2015 2015 21 21
October 29, 2015 House Approves Budget Agreement with Commitment to Avert Crop Insurance Cuts The Administration and Congressional leadership announced a bipartisan budget deal that would both raise discretionary spending caps by $80 billion for FY 2016 and FY 2017 and increase the debt limit until March 15, 2017. The federal government is expected to hit the debt ceiling soon. The budget agreement included a title that would require the U.S. Department of Agriculture (USDA) to renegotiate the Standard Reinsurance Agreement (SRA) by December 31, 2016, including a $3 billion cut to the program over ten years. The SRA is the agreement between the Risk Management Agency (RMA) and the crop insurance companies to administer the program. NAWG has consistently opposed any cuts to crop insurance, including cuts to either program delivery or producer support. NAWG and its state affiliates actively lobbied members of Congress to remove the proposed cut from the budget agreement. House Agriculture Committee Chairman Mike Conaway (R-TX) and Ranking Member Collin Peterson (DMN) actively worked to convince leadership that this cut would reopen the Farm Bill and drastically affect the delivery of crop insurance. The groundswell of opposition from the agricultural community and from many members of Congress led to Chairman Conaway and Ranking Member Peterson securing a commitment from House 22 22
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Leadership that the cut to crop insurance would be reversed as part of an omnibus appropriations bill, which is due to be considered by December. Reps. Conaway and Peterson supported the bill, which passed the House 266-167; it is now under consideration by the Senate.
passage by the House of Representatives earlier in the week. This short-term extension is intended to give time for Congressional leaders to finalize work on a long-term highway bill. Included in the bill was a threeyear extension for implementation of Positive Train Control (PTC).
Senate Majority Leader Mitch McConnell (R-KY) and Senate Agriculture Committee Chairman Pat Roberts (R-KS) spoke about crop insurance on the Senate floor. Majority Leader McConnell committed to working closely with House Leadership to reverse the crop insurance cuts as part of the omnibus appropriations bill. This commitment was satisfactory to Chairman Roberts, and the budget agreement is expected to pass and be signed into law by President Obama.
Following Senate action, NAWG President Brett Blankenship said, “We are pleased by the passage of the PTC extension ahead of the December 31 implementation deadline. A shutdown of the nation’s freight rail network would have disastrous consequences for the nation’s economy and U.S. wheat growers who rely on the rail system to move their grain.” View the full statement at http://www.wheatworld.org/ news-events/2015/10/nawgcommends-congress-for-passingptc-implementation-extension/.
Following Senate discussion, NAWG President Brett Blankenship issued the following statement, “We are pleased that House and Senate leadership have committed to reversing the cuts currently proposed in the budget agreement. Crop insurance is an essential part of the farm safety net, and it needs to stay as such.” Read the full statement at http:// www.wheatworld.org/newsevents/2015/10/wheat-growerspleased-with-promise-to-reversecrop-insurance-cuts/.
NAWG and USW Submit Comments on GE Wheat Field Trial
Congress Approves Short Term Highway Bill, PTC Deadline Extensions The Senate unanimously approved a short-term extension of programs and funding for highway construction and transportation projects to November 20, 2015; following
NAWG and the U.S. Wheat Associates (USW) filed joint comments on the proposed changes by USDA Animal and Plant Health Inspection Service (APHIS) to genetically engineered (GE) wheat field trails. While NAWG and USW understand setting mechanisms to prevent unintentional mixing and offspring, the organizations stated that a “balance of risk mitigation activities required to obtain compliance of field trials against the costs associated with such activities” is also necessary. APHIS’ proposal includes changing the field trials from a notification to a permit process, and extending the timeline for volunteer monitoring to 4
years. Wheat acreage in the U.S. is on a 20-year decline. NAWG and USW recommend a 2-year volunteer monitoring process, citing the proposed 4-year volunteer monitoring requirement as one of the highest cost activities of compliance for researchers that could negatively impact GE wheat research trends, resulting in further erosion of wheat’s competitiveness with other crops. NAWG’s farmer leaders believe there is an urgent need to increase investments in productivity and profitability in the U.S. wheat industry to reverse the decline and encourage APHIS to be cognizant of cost implications from changes in GE wheat research. Go to http:// www.wheatworld.org/wp-content/ uploads/NAWG-USW-CommentChange-to-Permit-Only-WHeatField-Trials-FINAL.pdf to view the full comments.
Wheat Growers Head to Nevada for Fall Wheat Conference NAWG is heading to Incline Village, Nev. for the Fall Wheat Conference next week. Follow along on Facebook and Twitter for real time updates from the conference. Due to the conference next week, the next NAWG Weekly Update will be distributed November 12.
White House Recognizes Sustainable Leaders NAWG attended the White House Champions of Change for Sustainable and ClimateSmart Agriculture event. The event recognized 12 individuals for their exemplary leadership in supporting change in their communities through innovation in agricultural production and education. Panel discussions featured the 12 champions and how their sustainable practices are impacting their communities. In addition, USDA Secretary Tom Vilsack and Senator Debbie Stabenow (D-MI) also spoke at the event. To view more https:// www.whitehouse.gov/champions for more information about the White House Champions of Change. Rediscover WH WHEE AT AT || NOVEMBER NOVEMBER 2015 2015 23 23
News from : October 8, 2015 2015 U.S. Durum Supply and Demand By Stephanie Bryant-Erdmann, USW Market Analyst As everyone who works in the wheat industry quickly learns, the durum market is unique and, as one grain merchandiser puts it, “Durum is an entirely different beast.” Unlike the other classes of U.S. wheat, demand for durum links directly to demand for specific foods, including pasta, couscous and Mediterranean breads. In 2014, global sales of pasta reached $28 billion, according to Euromonitor. This demand, coupled with quality issues in the 2013/14 crop, led to greater than normal market volatility, had challenged USW to provide meaningful values for durum customers in its weekly Price Report. However, with this year’s high quality durum crop safely in the bins, USW resumed durum price reporting Oct. 2 at www.uswheat.org/prices. 2015 U.S. Durum Supply. The United States has produced a fiveyear average of 1.91 million metric tons (MMT) of durum across six states: Arizona, California, Idaho, Montana, North Dakota and South Dakota. This year, USDA estimates that durum production will reach 2.24 MMT, up 53 percent from 2014. On average, 24 24 Rediscover RediscoverWH WHEEAT AT| |NOVEMBER NOVEMBER2015 2015
durum production accounts for three percent of total U.S. wheat production, but in the history of the USW Price Report, it has averaged a $1.60/bu ($58/metric ton) premium over the other five classes of U.S. wheat. U.S. durum is categorized by the location of its production as either northern durum or Desert Durum®. Northern durum, which accounts for 74 percent of U.S. durum production, grows predominately in Montana and North Dakota with additional acres in Idaho and South Dakota. Montana and North Dakota saw a 43 percent and 31 percent increase in planted durum acres in 2015, respectively, due to attractive prices and favorable weather at planting time. The increase in planted acres put North Dakota — the largest durum producer in the United States by both acres planted and bushels produced — back above one million acres of durum for the first time since 2012. USDA estimates North Dakota produced 1.16 MMT in 2015. Not only is production up this year, but also quality, North Dakota Wheat Commission Marketing Director Jim Peterson reports. “Producers could not have asked for better planting conditions in North Dakota,” Peterson said. “Durum planting finished three weeks earlier than average this
spring, and a good growing season followed that resulted in high yield potential. Farmers were able to get that quality in the bins because we also had a really good harvest period. I think buyers are going to be very pleased with the available durum quality this year,” he added. “Average test weight, protein and vitreous kernels are all up, while moisture, dockage and total defects are down.” The Desert Durum® trademark applies only to durum produced under irrigation in Arizona and California, and is often delivered to domestic and overseas customers “identity preserved” to allow buyers to purchase varieties with intrinsic qualities specific to their needs. Desert Durum® accounts for an average 10 percent of total durum acres, but 26 percent of total durum production due to an average yield of 101 bu/ acre (6.79MT/ha). Michael Edgar, AGRPC and USW board member, noted, “Desert Durum® is known for its reliability and high quality, and because our harvest occurs while the northern crop is planted, the United States is able to deliver high-quality durum year round.” In preliminary crop quality data for the northern durum crop, USW reported the average grade is No. 1 hard amber durum (HAD) compared to the 2014 average grade of No. 2
amber durum (AD). The average falling number is 420 seconds, demonstrating a sound crop, and significantly better than the 2014 average of 291. The 2015 Desert Durum® crop values are typical, with an average grade of No.1 HAD and a test weight of 62.4 lb/ bu (81.3 kg/hl). 2015 Durum Demand. The International Grains Council (IGC) expects world durum 2015/16 production to increase by 11 percent to 36.1 MMT this year. Algeria, the second largest U.S. durum buyer, expects to double its durum production from 1.3 MMT in 2014 to 2.5 MMT this year. Morocco, Syria, Turkey and the European Union (EU) also expect increases in production. If realized, the resulting decrease in demand from these markets will result in a 13 percent decline in world durum trade. However, on Oct. 2, StatsCan reported that Canada, the world’s largest singlecountry durum producer, would produce the smallest durum crop in three years at 4.74 MMT, a 9 percent decline from marketing year 2014/15 due to drought in key durum producing areas. Therefore, there is still demand for U.S. durum, as the USDA weekly export sales data demonstrates. As of last Thursday, Oct. 1, U.S. durum exports totaled 514,000 MT, which is 190 percent of 2014 total U.S. durum sales to all countries on the same date. Of that, 63 percent or 325 MMT of durum has been exported to Italy, the largest buyer of U.S. durum, and number one consumer of pasta per capita in the world. Euromonitor reports that on average, every Italian consumes 58 lbs. (26.3 kg) of pasta each year. As a comparison, U.S. consumers
eat only 8 lbs. of pasta annually. USDA expects U.S. durum exports to reach 1.09 MMT this year. As the main ingredient in pasta, this data on durum arrives at a convenient time. Domestically, the United States recognizes October as National Pasta Month and on the international level, Oct. 25 marks the World Pasta Day celebration. USW Celebrates Pasta and Durum in October With a rich history transcending many cultures and traditions, pasta remains today, a healthy, dynamic and cost-effective global food source. World Pasta Day is an initiative, recognized annually on Oct. 25, to promote positive messages about pasta with media and consumers. Pasta is an important part of the global wheat market. As a supporting member of the International Pasta Organization (IPO), USW is committed to promoting the reliable supply of high quality U.S. durum that this beloved end product is made from and the U.S. wheat farmers who grow it. Durum — a name derived from the Latin word for “hard” — is a separate type of wheat from that commonly used to make bread, pastries and most wheat products. Durum kernels are harder than common wheat kernels and have a rich amber color and high gluten content ideal for pasta, as well as other products such as couscous and Mediterranean bread. When common wheat is milled, the endosperm, or heart of the wheat kernel, breaks down into a fine, powdery flour. Durum’s endosperm is hard enough to
hold together, creating a granular product called semolina, the principal raw ingredient in pasta. When semolina mixes with water, it forms a stiff dough that is extruded, dried, and used create more than 350 pasta shapes. Since durum’s endosperm is yellow, and not creamy-white like other wheats, it gives pasta its pleasing yellow hue. There are two different categories of U.S. durum wheat, Northern Durum, grown predominately in North Dakota and Montana, with additional acres in Idaho and South Dakota; and Desert Durum®, grown in California and Arizona. USW Market Analyst Stephanie BryantErdmann further discusses the crop’s quality outlook and U.S. durum’s place in the global market in her article, “2015 U.S. Durum Supply and Demand,” featured in this issue of “Wheat Letter.” Pasta is truly a global food source, consumed each year by more than 80 countries, according to Euromonitor, led by Italy in 2014. This year’s World Pasta Day celebration, held in conjunction with the World Pasta Congress, Oct. 25 to 27, in Milan, Italy, will bring together delegates representing the world pasta industry, including durum growers, millers, equipment companies, nutritionists, public authorities and the media. This year’s theme, “Feeding the plant, energy for life,” is an initiative that aligns itself well with the values and purpose of the U.S. wheat industry. In addition to its role in World Pasta Day, IPO offers promotional resources on their website, www.pastaforall. RediscoverWH WHEEAT AT| |NOVEMBER NOVEMBER2015 2015 25 25 Rediscover
info, for pasta manufacturers around the world The United States also celebrates pasta domestically, recognizing October as National Pasta Month. Join the conversation using #WorldPastaDay and #NationalPastaMonth, and follow USW at www.facebook.com/ uswheat and www.twitter.com/ uswheatassoc. U.S. Wheat Industry Comments on Conclusion of TPP Negotiations USW and NAWG are pleased that negotiators have reached an agreement in the Trans-Pacific Partnership (TPP). “Asia is a growing regional market and this agreement has the potential to increase economic opportunity and wheat demand even in countries where we already have duty free access,” said USW President Alan Tracy. “That is critically important because our competitors like Australia are moving ahead with bilateral agreements that eliminate tariffs on wheat imports with countries like Vietnam. The high standards in the TPP agreement should help us be more competitive and hopefully lead to even more opportunity for our wheat as new countries join TPP in the future.” “Trade agreements are essential for U.S. wheat farmers with more than 50 percent of our crop heading overseas. Concluding TPP negotiations is a step in the right direction. My fellow farmer-leaders and I look forward to reviewing the final text and working with Congress to determine how this will impact U.S. wheat farmers,” 26 26 Rediscover RediscoverWH WHEEAT AT ||NOVEMBER NOVEMBER2015 2015
commented NAWG President, Brett Blankenship, wheat grower from Washtucna, Wash. USW and NAWG thank Ambassador Froman and the entire U.S. team focused on agricultural issues for their leadership and hard work in concluding these important TPP negotiations. FGIS Reauthorization Complete By Dalton Henry, USW Director of Policy The months-long process to reauthorize the U.S. Grain Standards Act and make key improvements in the U.S. inspection system ended Sept. 30 with President Obama’s signing of the Agriculture Reauthorizations Act of 2015. Critical to U.S. exports, the Act enables USDA to establish official marketing standards for grain and to provide procedures for grain inspection. The Act provides the Federal Grain Inspection Service (FGIS) the much-needed authorization to collect inspection fees through 2020. It also includes several provisions that should provide U.S. exporters and their customers overseas the certainty that inspection serves will remain available and conducted by unbiased inspectors. The Act contains strict new requirements for USDA to resume inspections immediately if a delegated state agency stops service. This clause furthers the reliability of U.S. wheat supplies and ensures there will not be a repeat of the inspection stoppage that plagued the Port of Vancouver in summer 2014.
The bill also maintains the critical role of FGIS and delegated state agencies in export grain inspections, preserving trust in a system that U.S. wheat customers have come to expect, and sustaining U.S. wheat producers’ reputation as the world’s most reliable suppliers of quality grain. In addition to a re-certification process for delegated state agencies, the Act further prioritizes transparency and accountability by providing an opportunity for public input on services through a notice and comment period. Coey to Provide New Leadership for USW in Chinese Market USW has hired Jeff Coey as Assistant Regional Vice President to fill the vacant position in its Hong Kong office left by Matt Weimar, who recently relocated to the regional office in Singapore as the new Regional Vice President for South Asia. Coey will manage U.S. wheat market development programs and USW’s business and government relationships in China. This includes two offices and staff located in Hong Kong and Beijing. Coey joins USW with more than 25 years of marketing and trade facilitation experience in East Asia including industry relations and government affairs consulting, as well as demand-building branded retail campaign management. He worked in cotton merchandising in Hong Kong and China and helped set up office operations in Beijing. Most recently, Coey lectured for the master's degree program at the Hong Kong Baptist University's School of Communication covering subjects
including consumer behavior, intercultural communication, writing for public relations, issues management and crisis response. “Jeff's experience in the private sector, commodity trading, market development and academia throughout the greater China region represent an important new asset for the U.S. wheat industry and our China interests,” said Weimar. “China is a complex market of immense proportions and possibilities,” said USW Vice President of Overseas Operations Vince Peterson. “Jeff has the background and experience necessary to package USW's efforts in China in a productive manner that allows us to capitalize on those market opportunities.” Fluent in Mandarin, Coey studied Chinese language and literature at Middlebury College and National Taiwan University. He holds bachelor's degrees in East Asian Studies and Chinese from the University of Kansas, as well as a Master of Business Administration from the University of Wisconsin, Madison, where his concentration was in international business and marketing. Wheat Industry News Bayer CropScience Expands its European Center for Wheat Breeding. The company has tripled the capacity of its complex in Gatersleben Biotech Park in Saxony-Anhalt, Germany, with investments amounting to approximately EUR 15 million since its inauguration in 2012. In the coming years, the wheat breeding area will
expand to 80 hectares. Read the full announcement at http:// www.cropscience.bayer.com/ en/Media/Press-Releases/2015/ Bayer-CropScience-expands-itsEuropean-Center-for-WheatBreeding-in-Gatersleben.aspx. The Washington State University Plant Growth Facility, completed July 2015, is an expansion of the university’s old greenhouse, thanks to a three-way partnership between the university, the Washington Grain Commission and the USDA Agricultural Research Service. The 72-hundred square foot, state-of-the-art research greenhouse provides 12 new bays, a seed storage area and lab space for WSU wheat and barley breeders. Already up and running, the facility’s dedication ceremony is on Oct. 17. Read the full announcement at http://www.capitalpress. com/Research/20151002/wsuto-dedicate-new-plant-growthfacility. Montana Grain Growers Association Leadership Recognized. The Montana State University College of Agriculture and Montana Agricultural Experiment Station will present Lola Raska, MGGA executive vice president, with its annual Outstanding Agricultural Leader award during its Celebrate Agriculture event, Nov. 5 to 7. This award honors wellrespected individuals or couples in Montana’s agricultural community. Read the full announcement at http://www. montana.edu/news/15772/msu-tohonor-outstanding-agriculturalleaders.
The Texas A&M Wheat Improvement Team recently received a 2015 College of Agriculture and Life Sciences Dean’s Outstanding Award for Interdisciplinary Research. The team includes Dr. Jackie Rudd, AgriLife Research wheat breeder; Dr. Shuyu Liu, AgriLife Research small grains geneticist; Dr. Qingwu Xue, crop physiologist; Dr. Amir Ibrahim, AgriLife Research wheat breeder; Dr. Joseph Awika, head of the Wheat Quality Laboratory; and Dr. Clark Neely, AgriLife Extension Service state small grains specialist. In the past 12 years, the team has developed, released and licensed 12 wheat, four oat and two triticale varieties. Read the full announcement at http://soilcrop. tamu.edu/texas-am-wheatimprovement-team-recognized/. The “Great American Wheat Harvest” Wins a Regional EMMY. The 2014 documentary, awarded a Mid-America Regional EMMY Award for Best DocumentaryCultural, features American harvesters traveling from Texas through the Western Plains to harvest wheat and other crops that feed the world. Read the full announcement at http://agwired. com/2015/10/06/the-greatamerican-wheat-harvest-winsregional-emmy/. Kansas State University Researchers Uncover New Genetic Markers for Wheat Improvement. Wheat scientists at KSU’s Wheat Genetics Resource Center, led by Bikram Gill, university distinguished professor of plant pathology, have completed the first study of a chromosome in a tertiary gene pool, calling it a breakthrough in exploring wheat wild relatives for future WHEE AT AT || NOVEMBER NOVEMBER 2015 2015 27 27 Rediscover WH
crop improvement. Their study, "Exploring the tertiary gene pool of bread wheat: sequence assembly and analysis of chromosome 5M of Aegilops geniculata," was published Sept. 27 in The Plant Journal. Read the full story at https://www.k-state.edu/media/ newsreleases/oct15/tertiary10615. html. Congratulations to Cymantha Frederickson, assistant director of the California Wheat Commission for her 20 years of service. Thank you for your contributions to the U.S. wheat industry. Registration Open for IGP-KSU Introduction to Flour Milling Course. The IGP Institute will once again host this course giving an overview of U.S. wheat production; the general milling process and major milling equipment; principles of mill flow sheets; milling math (extraction, tempering and blending); flour functionality, flour and dough testing practices and methods. The course will run from Jan. 11 to 15, 2016, and registration closes Dec. 18, 2015. Register and learn more at http://www. igpevents.grains.ksu.edu/Detail. aspx?enc=mXCYNjSVdPByPE4J8 dWwZUG6XNQpVrsgbKFj3Z2= XzhKAospRaSdsgPDQxj+nYg4 5NWJmknyXQBl3jAmuVjuew==.
October 22, 2015 2015/16 HRW Quality Offers Excellent Value The USW 2015/16 hard red winter (HRW) crop quality survey is complete and shows that, once again, wheat farmers across 16 states have grown a crop that provides the characteristics 28 28 Rediscover RediscoverWH WHEEAT AT| |NOVEMBER NOVEMBER2015 2015
buyers need to meet the growing global demand for high quality baked goods and other wheat foods. Though they seeded less wheat this year, farmers produced more HRW than in 2014/15. Widely varying growing conditions helped, but also resulted in more quality variation than is normally found in this class. This year, the USDA ARS Hard Winter Wheat Quality Lab and Plains Grains, Inc., collected and analyzed 500 samples from the 12 states making up the Gulf and PNW tributary regions. USW’s partner organizations determined grade and non-grade factors on each sample. They also performed functionality tests on 95 composite samples representing different growing areas and these protein ranges: less than 11.5 percent (12 percent mb), 11.5 percent to 12.5 percent, and more than 12.5 percent. Wheat and Grade Data. The final average HRW grade for 2015/16 is U.S. No. 2, with 76 percent of samples grading U.S. No. 2 or better compared to 67 percent in the Gulf tributary and 89 percent in the PNW tributary. The overall average test weight is 59.0 lbs/bu (77.6kg/hl) which is below the minimum for U.S. No. 1 and below recent averages. The average dockage of 0.8 percent is above last year’s 0.4 percent and the 5-year average of 0.5 percent. Total defects of 1.8 percent are also slightly higher than 2014 and the 5-year average. The overall average thousand kernel weight of 29.6 g is above the 5-year average of 29.1 g, but below last year’s 30.7. Average kernel diameter of 2.59 mm is similar to both last
year’s average and the 5-year average. The average protein of 12.4 percent is lower than 2014 and slightly lower than the 5-year average of 12.7 percent. Kernels are generally smaller in the higher protein southern region and larger with lower protein to the north. Approximately 22 percent of samples were less than 11.5 percent protein, 41 percent between 11.5 percent and 12.5 percent, and 37 percent above 12.5 percent. The average falling number of 400 seconds indicates a sound wheat. Flour and Baking Data. The overall Buhler Laboratory Mill flour yield averages 74.1 percent, comparable to the 2014 average of 73.9 percent but above the 5-year average of 73.3 percent. Average flour ash content exceeds 2014 and the 5-year average. Protein loss during flour conversion averaged 0.7 percent (14 percent mb), which is below the 5-year average loss of 1.0 percent. The W value of 214 (10-4 J) is significantly below 2014’s 266 and the 5-year average of 250. Overall, average bake absorption of 62.5 percent is lower than 2014’s 63.7 percent, but is higher than the 5-year average of 61.8 percent. Farinograph peak time and stability of 4.8 min and 6.9 min, respectively, are both significantly lower than last year and the 5-year average. Overall, average loaf volume of 870 cc is somewhat higher than 2014’s 859 cc and significantly higher than the 5-year average of 825 cc. U.S. wheat farmers, through their state commission membership in USW, and USDA’s Foreign Agricultural Service fund the annual crop quality survey of all six U.S. wheat classes. Regional HRW reports, along
with regional reports for all six U.S. wheat classes, are posted and USW’s 2015 Crop Quality Report will be available soon at www. uswheat.org/cropQuality. USW will also share the results of the survey with hundreds of overseas customers at several upcoming events, including USW's annual crop quality seminars. Buyers are encouraged to construct specifications carefully to be sure they receive qualities that meet their needs. Drought, Heat Stress Revealed in 2015/16 Soft White Quality U.S. soft white (SW) wheat is produced primarily in the Pacific Northwest (PNW) so most of the exportable supply is uniformly affected by growing conditions, which were mainly hot and dry again for the 2015/16 crop. As a result, this is a sound crop characterized by higher than average protein with less than average test weight, kernel size and kernel weight. USW worked with state and private grain inspection agencies and commercial grain handlers to collect 448 SW and 111 white club (WC) samples plus 3 composite samples (including one from white club). The Wheat Marketing Center analyzed the wheat and flour quality from the samples. The wheat commissions of Idaho, Oregon and Washington, USW, and many other wheat industry organizations, supported this program. Following is a summary of SW data and selected WC data. The complete SW class report is now posted at www.uswheat.org/ cropQuality, as well as regional reports for other U.S. wheat classes, and USW will soon share all results at its annual Crop Quality Seminars.
Wheat and Grade Data. The average grade for both SW and WC is U.S. No. 2 SW because of lower test weight. The SW and WC test weights of 59.3 lbs/bu (78.0 kg/hl) and 58.3 lbs/bu (76.8 kg/hl), respectively, are both well below past averages. Shrunken and broken kernels and dockage averages are higher this year but similar to 5-year averages, while moisture content for both are below 2014 and 5-year averages. SW protein (12 percent mb) of 10.9 percent is the same as last year (the 5-year average is 10.0 percent) but WC protein of 11.7 percent is higher than last year and the 5-year average of 10.2 percent, which is reflected in premiums for lower protein specifications. The high protein segment of the SW crop provides opportunities in blends for Asian noodles, steamed breads, flat breads and pan breads. Flour, Dough and Baking Data. The Buhler Laboratory Mill flour extraction for SW of 72.6 percent is less than 2014 and the 5-year average. SW and WC flour protein contents (14 percent mb) are 9.5 percent and 10.2 percent, respectively. Flour ash content for SW is lower than 2014 and similar to the 5-year average. SW and WC flour falling numbers are 397 and 417 seconds, and amylograph peak viscosity values are 629 and 647 BU, respectively. SW SRC sucrose and lactic acid values are similar to 2014 and higher than the 5-year averages; the sodium carbonate value is lower than 2014 but similar to the 5-year average; GPI is slightly higher than 2014 and the 5-year average. WC SRC for all solvents and GPI is similar to last year and 5-year averages.
SW farinograph peak and stability times show slightly stronger gluten properties than 2014 and the 5-year averages. SW has shorter alveograph L values than 2014 and the 5-year average. SW extensograph extensibility is shorter than 2014 but longer than the 5-year average. SW sponge cake volume at 1266 cc is bigger than last year and 5-year averages. SW cookie diameter is slightly larger than last year and similar to the 5-year average. SW and WC cookie spread factors are greater than last year, but smaller than 5-year averages. USW’s crop quality reports and the skilled service from your local or regional USW office will be particularly valuable this marketing year. Because our organization only represents the wheat farmers who help fund our work, you can be confident that USW provides service and technical support with your best interests in mind. 2015 World Food Prize, Borlaug Dialogue Continues Focus on Achieving Food Security By Elizabeth Westendorf, USW Policy Specialist Every year, leaders in agriculture, international development and food security gather in Des Moines, IA, to celebrate the World Food Prize award, referred to by many as the Nobel Prize for Food and Agriculture. This year’s World Food Prize Laureate was Sir Fazle Hasan Abed, founder and chairperson of BRAC, formerly known as the Bangladesh Rural Advancement Committee. BRAC is the world’s largest nongovernmental organization and works in 11 countries, including RediscoverWH WHEEAT AT| |NOVEMBER NOVEMBER2015 2015 29 29 Rediscover
Bangladesh. Sir Abed devoted much of his work to the social and economic empowerment of women, a challenge emphasized by speakers at this year’s Borlaug Dialogue, the symposium that accompanies the World Food Prize. These annual events honor the work of Dr. Norman Borlaug, renowned wheat scientist,Nobel Peace Prize Laureate and Iowa native. Presentations at the Borlaug Dialogue this year connected agricultural development and the notion that empowering women in food insecure areas can often have a disproportionately large effect on economic development. Speakers included Chelsea Clinton; Howard G. Buffett; U.S. Secretary of Agriculture Tom Vilsack; former President of the Republic of Malawi Joyce Banda; the first World Food Prize Laureate M.S. Swaminathan; and President of Oxfam America, Raymond Offenheiser. Topics ranged from precision agriculture and new technologies to helping women farmers and encouraging agricultural extension in Africa, with an eye on helping agricultural productivity and international development keep pace with population growth. The World Food Prize and Borlaug Dialogue do an outstanding job focusing on the complex interplay of issues that affect global food security efforts. Each year the programs manage to touch on nutrition, agricultural productivity, sustainability and the need for innovation to increase food production responsibly. Sir Abed himself this year called on Dialogue’s participants to “make good use of 30 Rediscover RediscoverWH WHEEAT AT ||NOVEMBER NOVEMBER2015 2015 30
the breathing space of the green revolution to disrupt the cycles of food insecurity forever.” U.S. wheat farmers know that all these topics will need attention if we are to feed our ever-growing world population in sustainable ways. Conservation agriculture, biotechnology, advanced breeding and open, consistent trade flows are all necessary to fight the constant threat of food insecurity. The World Food Prize, more than any other meeting or organization, celebrates this necessary collaboration and recognizes pioneers and leaders in all these fields. USW congratulates World Food Prize Laureate, Sir Fazle Hasan Abed, and thanks the World Food Prize for its continued devotion to recognizing leaders in the fight against hunger. As Dr. Borlaug said, “If you desire peace, cultivate justice, but at the same time, cultivate the fields to produce more bread; otherwise there will be no peace.” IPO Provides Valuable Resources; Leads Conversation on Pasta In the United States, this is National Pasta Month, while on the international level, Oct. 25 marked World Pasta Day. The International Pasta Organization (IPO) is a leader in advancing consumer understanding of the nutritional value and health benefits of pasta, as well as promoting the pasta industry around the globe. USW actively supports IPO and its initiatives ¯ because high quality pasta begins with the reliable, high quality supply of U.S. durum.
This year, IPO launched new initiatives in preparation for the fifth edition of its World Pasta Day and Congress, Oct. 25 to 27, 2015, in Milan, Italy. The most important initiative is the IPO communications plan, The Truth About Pasta, to help the industry promote the benefits of pasta as part of a healthy diet. Another objective of the campaign is to debunk misconceptions about the role of carbohydrate nutrition. IPO built a kit of communications tools designed to connect pasta with a healthy lifestyle, including monthly newsletters, social media content and other materials in multiple languages. The Truth About Pasta program highlights five reasons consumers can continue to enjoy pasta as a tasty part of a healthy diet to help manage weight and prevent disease: Pasta is good for you and the planet; Pasta is the pillar of the Mediterranean Diet; Pasta is energy that keeps you fuller for longer; Pasta does not make you fat; Pasta is tasty and brings people together You and your customers can follow the IPO conversation this month on social media using #WorldPastaDay and #NationalPastaMonth. USW is sharing this content every day at www.facebook.com/ uswheat and www.twitter.com/ uswheatassoc. In the Oct. 8, 2015, issue of “Wheat Letter,” USW also highlighted the latest U.S. Northern Durum and Desert Durum® supply and demand
outlook and has posted new durum crop quality data at www. uswheat.org/CropQuality. Wheat Growers Initiate Plan to Increase Productivity By Ed Maixner, © Agri-Pulse, Oct. 14, 2105, Excerpts Reprinted with Permission After watching U.S. wheat acreage and production slide steadily for 18 years, the National Association of Wheat Growers (NAWG) has had quite enough and is coming out swinging. The counteroffensive, called simply the Wheat Action Plan, “right now is conceptual,” says NAWG President Brett Blankenship, a grower in eastern Washington State. “We’re reaching out to all parts of the industry,” he says. “The idea is to raise productivity so that wheat no longer loses acreage to corn and soybeans.” Blankenship points to Norman Borlaug’s work in the mid-20th Century to improve wheat yield and disease resistance. “We had the first Green Revolution, and it revolutionized the production of wheat. We need another one. We need another step forward, and the Wheat Action Plan is the attempt to invigorate the investment we need to go to the next level for wheat.” That task is broad, but he says it means, first, improving on-farm productivity so that wheat is a more attractive crop economically. Then, “we need to double down on research … and we will elicit private technology companies to take a look at wheat and bring all technology to bear.”
USDA crop data shows that average annual yields of other major crops have risen smartly over the decades. This year’s expected all class U.S. wheat yield (43.6 bushels per acre) is just 16 percent more than in 1985, while that for corn is up 42 percent; soybeans, 38 percent; long-grain rice, 43 percent, upland cotton, 24 percent, and sugar beets, 48 percent. Though the work of wheat researchers and others has improved wheat’s disease resistance and yields over the decades, NAWG calculates that for every $10 spent on public and private industry corn research in 2014 only 70 cents went into wheat research. Steve Joehl, NAWG director of research, says that wheat used to dominate acreage in the eastern Great Plains, but varietal advances for corn and soybeans have now made those the top crops in that region. “The first state that really adopted biotechnology in corn was [eastern] South Dakota,” he said. “That happened because the Bt gene for corn borer control was so effective … and the borer was killing farmers there on yield.” But as the 20th Century ended, growers there started seeding varieties with YieldGard borer control and saw their acreage and productivity soar as yields shot up, he said. Recently, he says, Dupont, Monsanto and others announced heavy investment in 70- to 80-day corn varieties that will yield well in southern Canada as well as in northern areas of the U.S., Russia,
Hungary and elsewhere. The new corn genetics “will take away wheat acreage,” he says. Needed genetic improvements for wheat are countless, but developing strong resistance to fusarium head blight, called scab, could be a huge gain because the disease hurts wheat coast to coast, Joehl says. Coming up, he notes, is an update by North Dakota State University on the fight against scab, to be presented to grower groups, researchers, millers, food processors and others who will focus on the scab problem at a national forum in St. Louis in December. Blankenship says that for his own low-rainfall farming area, “improved rust resistance in the high moisture years, drought tolerance and a breakthrough in yield” are at the top of his wish list. “Our yields have been rather stagnant my entire career,” he says. He says boosting research investment by private industry, Congress and state legislatures will be a challenge, “but one of the collateral problems for loss of wheat production is the way wheat pays for research through the state-by-state patchwork of commissions” that oversee the wheat checkoff programs. “When production falls, you have less funds to invest in research,” he notes. NAWG will also support the political fight to secure Congress’ OK for the newly inked Trans Pacific Partnership, a 12-nation trade pact that is supported by large farm commodity groups who expect to see reduced obstacles to sales in TPP countries. Blankenship notes Rediscover RediscoverWH WHEEAT AT ||NOVEMBER NOVEMBER2015 2015 31 31
that 85 percent of wheat grown in the U.S. Pacific Northwest is exported, so any reduced barriers mean extra demand for his crop. Wheat Industry News Subscribe to USW Reports. USW has added a “Subscribe” menu at www.uswheat.org where visitors may subscribe to this newsletter, the weekly Price Report and the weekly Harvest Report (available May to October.) Go to http://www.uswheat.org/ subscribe1 to subscribe. By-Class Crop Quality Reports Are Now Available for the 2015 HRS, HRW, SW and hard white wheat, SRW, California hard red winter wheat, Desert Durum and Northern durum wheat crops at www.uswheat.org/cropQuality. CropLife International Launches New Communications Resources. Its new blog features stories, thought-leader insights and news about sustainable development, economic growth and the future of farming. Also newly launched is the e-magazine, "Thrive: Notes on Global Agriculture," that will aggregate customized agricultural content from around the web. Syngenta Chooses NRGene to Speed Genomic Mappying. NRGene's unique genome assembler, DeNovoMAGICTM, supports trait discovery and genomic selection in every type of field and vegetable crop. In addition to the work for Syngenta, DeNovoMAGIC’s technology has already mapped the firstever wheat genome, rainbow trout and multiple varieties of maize, soybean, vegetables and forestry, among others. Read the full announcement 32Rediscover RediscoverWH WH | NOVEMBER 2015 32 E EATAT| NOVEMBER 2015
at http://comm100edm4.com/ Newsletter/Newsletter_Email WebVersion.aspx?key=9X aAUo 92EKHBmz%2bgpKRAmIp cCDVYsc66vM%2fsT8HOstn X6mWAow3w%2fdBN590rrvIq M7FpQ%2fHSlXk%3d&siteId= 110732. Dr. C.S. Prakash Honored at 2015 Borlaug CAST Communication Award Ceremony. For the sixth year in a row, the Borlaug CAST Communication Award honored its recipient at a World Food Prize event. This year's recipient, Dr. Channapatna Prakash, Dean of the College of Arts and Sciences at Tuskegee University, gave a memorable keynote address: Everything I Know about GMOs, I Learned on Social Media. Learn more about the award and this year’s recipient on the CAST website at www.cast-science.org. National Wheat Foundation (NWF) Announces 2015 Wheat Harvest Photo Contest Winners. Over 300 photo submissions to the contest that began in June highlight and celebrate America’s wheat harvest and growers. First place went to Michelle Jones for her photo taken near Broadview, MT. Runners up include Brittany Van Driesten’s photo taken near Danville, KS., Casey Graham’s photo taken near Simla, CO. and Brenna Rietmann’s photo taken near Ione, OR. View the winning photos at http://wheatfoundation. org/national-wheat-foundationannounces-2015-wheat-harvestphoto-contest-winners/.
Maltby Market Analysis by Dan Maltby
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Maltby Market Analysis is provided weekly to members of the Kansas Association of Wheat Growers via email. To become a KAWG member and subscribe, please contact Jordan Hildebrand at jhildebrand@ kswheat.com. Rediscover WHE AT | NOVEMBER 2015 39
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Upcoming Events NOVEMBER 2015 • USW/NAWG Fall 2015 Board Meeting, November 3-6 • I/UCRC NSF Meeting, November 10-11
JANUARY 2015 • Wheat Foods Council Meeting, Scotsdale AZ, January 15