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Wheat Grower Organizations Welcome TPP Signing, Look for Rapid Congressional Review

WASHINGTON D.C. — The signing of the 12 nation Trans-Pacific Partnership (TPP) today in New Zealand marks another step toward putting the world’s largest free trade agreement into action. National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) welcome this step and now call for rapid consideration and eventual ratification of TPP by Congress.

“Wheat growers are “all-in” regarding the promise of the Trans-Pacific Partnership,” said NAWG President Brett Blankenship, a wheat farmer from Washtucna, Wa. “Expanding sales and market share are important pillars to help revitalize the wheat industry. Now, the ball is in Congress’ court and NAWG urges Congress to act quickly.”

A number of national and state wheat grower association members visited congressional offices this week to stress their support for the agreement. That is because wheat is the most export-dependent grain commodity grown by U.S. farmers. South Asia and Latin America represent growing, but highly competitive markets for our production. When implemented, TPP will have a significant positive impact on American wheat producers and on our country’s export supply industry.

“We need swift consideration and approval because every day that implementation is delayed, we face tariff disadvantages that undercut our ability to compete in established and new markets,” said USW Chairman Brian O’Toole, a wheat farmer from Crystal, N.D.

With duty-free access under its free trade agreement with Vietnam, for example, Australia currently enjoys a $12 to $15 per metric ton price advantage over U.S. wheat. U.S. wheat exports are at a tariff disadvantage in a number of other countries that want to join TPP but cannot apply for membership until after Congress and the governments of the 11 other countries ratify the agreement.

TPP is American agriculture’s platform for success in the expanding global market for years to come. As soon as possible after the implementing legislation is introduced, Congress should complete its reviews and take its up or down vote on TPP.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Associates Welcomes WTO Elimination of Export Subsidies

ARLINGTON, Virginia – U.S. Wheat Associates (USW), the export market development organization for the U.S. wheat industry, is very pleased with the recent decision by WTO members to eliminate agricultural export subsidies.

Long banned for industrial goods, export subsidies are, along with guaranteed prices above world market levels and input subsidies, among the most harmful and distorting practices for world agricultural trade. Although the WTO already banned export subsidies for industrial goods, many member countries are still authorized to use agricultural export subsides. While authorized subsidies are rarely used anymore, agreeing to eliminate them is no small matter. For example, while the European Union, collectively the world’s largest wheat producer, no longer uses export subsidies it still has standby authority to do so. Other countries are using unauthorized export subsidies and should be challenged to prevent continued violations of current disciplines. Certainly, eliminating export subsidy authority at once for developed countries and by the end of 2018 for developing countries is a major step forward for world wheat trade.

USW is concerned, however, that the Nairobi Ministerial also reauthorized developing and least developed countries’ use of processing and transport subsidies for agricultural products, an authority that had expired in 2004. While this reauthorization is limited and temporary, it is still a step backward for agricultural trade similar to the setback of the 2013 Bali Declaration.

There were also changes in language affecting food aid and export credits, but our negotiators successfully defended U.S. practices in those areas. While further negotiations will take place on special safeguards and government food stockholding for developing and least developed countries, no commitment was made to continue the Doha Development Agenda as such, which we consider a positive outcome. It is long past time for countries to shelve the failed Doha negotiations and move on to more productive trade liberalization efforts to address the challenges of the 21st century.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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National Wheat Organizations Support TPP Approval and Expansion

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) boards of directors expressed support last week for the Trans-Pacific Partnership (TPP) because it will be beneficial to U.S. wheat producers and improve their competitiveness in the Asia-Pacific region.

“Wheat growers should support TPP,” said Brian O’Toole, a wheat farmer from Crystal, N.D., and chairman of USW. “Half of the wheat we produce each year is available for export and the prices farmers like me receive are sensitive to the demand for that wheat. TPP will not only help us compete on a more level playing field, but will also help boost the economies of the Asia Pacific region. That will boost demand for U.S. wheat and other U.S. agricultural exports.”

“TPP makes great strides in expanding trade opportunities for wheat in the Pacific Rim. This agreement lays the foundation for future trade agreements. NAWG is hopeful for quick congressional consideration and that other countries will quickly join the TPP,” said NAWG President Brett Blankenship, a wheat grower from Washtucna, Wash.

U.S. Wheat Associates is the industry’s market development organization working in more than 100 countries on behalf of America’s wheat producers. The activities of USW are made possible by producer checkoff dollars managed by 18 state wheat commissions, in-kind support, and cost-share funding provided by USDA’s Foreign Agricultural Service. To qualify for federal funds, USW is required to prepare and submit an annual, comprehensive Unified Export Strategy that details specific market development plans for every country and region. For more information, visit www.uswheat.org or contact your state wheat commission.

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

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Industry Comments on Conclusion of TPP Negotiations

Following is a joint statement from U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG).

ARLINGTON, Virginia – U. S. Wheat Associates (USW) and the National Association of Wheat Growers (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,” 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.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA/FAS.

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

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Excessive Foreign Farm Support Disrupts World Wheat Trade, Hurts Farm Revenue

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) unveiled the results of an econometric study showing that excessive farm support in several advanced developing countries could cost U.S. wheat farmers nearly $1 billion in revenue every year. USW recently showed that the governments of China, India, Turkey and Brazil have dramatically increased subsidies for domestic wheat production over the past ten years to levels that far exceed their World Trade Organization (WTO) agreements. This study confirms that these policies have a detrimental effect on U.S. and world wheat farmers and global wheat trade.

“I believe we have shown through these studies that the old perceptions about farm support and trade are clearly wrong,” said USW President Alan Tracy. “Today, it is the farm subsidies in a few advanced developing countries, not developed country policies, which disrupt normal trade flows and distort world wheat prices. These rapidly growing subsidies cause direct, serious and now measurable impacts on the prices that U.S. farmers receive for their grain.”

Noted agricultural economist Dr. Dermot Hayes and two of his colleagues at Iowa State University conducted the study. The goal was to determine what would happen to U.S. and global wheat production, trade and prices if domestic support in China, India, Turkey and Brazil were removed. To accomplish this, Dr. Hayes and his colleagues applied the price support and input subsidy data identified in a November 2014 study by DTB Associates to the respected CARD-FAPRI econometric model. Results showed that if all support were removed from all four countries, annual U.S. wheat production would increase by more than 53 million bushels, farm gate prices would increase by nearly $0.30 per bushel and U.S. wheat farmers would receive $947 million more in annual revenue (See Chart 1).

“The results confirm that if domestic support were removed wheat prices in the countries modeled would go down and farmers would plant less wheat, but domestic consumption would go up,” Hayes said. “The lower supply would lead to higher global wheat prices, which tend to benefit wheat exporting countries including the United States.”

The study also indicated that with such changes, wheat trade flows would shift and the four countries would increase net imports by nearly 10 million metric tons (MMT). Hayes said the model estimated the United States would capture more than 20 percent of such an increase to export an additional 2.2 MMT compared to the model’s baseline if there were no changes in domestic support in those countries.

Hayes’ team also used the model to predict the net effect that eliminating support in individual countries would have (See Table 1). Those results indicated that domestic support for Chinese wheat production alone has the largest individual effect. If support there ended, Chinese imports would grow from nearly 2 MMT per year to more than 7.5 MMT per year. This would still be less than the 9 MMT annual tariff rate quota that China agreed to in its WTO accession commitments. Hayes said the model showed that even with the predicted changes, China, India, and Turkey would continue to be at least 90 percent self-sufficient in wheat production. Eliminating domestic support would have the least effect in Brazil where support levels are lower than the other countries.

Shifting the Narrative

Hayes also noted that this study compares future scenarios to data from a market situation in which wheat cash prices were significantly higher than they are now. For example, in addition to Chinese government input subsidies coupled to wheat production, the DTB Associates study in 2014 showed Chinese farmers have government minimum support prices of more than $10.00 per bushel.

“Wheat prices have plummeted more than 30 percent since last year, a significant portion of which is due to these countries’ market distorting policies, which send the wrong signals to their farmers. This hurts American family farms like mine even more,” said Brett Blankenship, who grows soft white wheat near Washtucna, Wash., and is the current President of the National Association of Wheat Growers (NAWG).

Referring to current negotiations in the Doha round, Blankenship added, “It is totally unacceptable to tolerate demands from countries who are in violation of their WTO commitments, who continue with these huge levels of support while demanding concessions from the United States. The American wheat farmer will not give away any more.”

WTO records show that the United States has consistently met its commitments, never exceeding its Aggregate Measure of Support (AMS) limit of $19.1 billion. But other country’s proposals made as part of the Doha round would require the United States to drastically cut its limit, while members with growing programs would not be expected to make meaningful contributions. Deputy U.S. Trade Representative Amb. Michael Punke has called this a “mind-boggling imbalance” that firmly underpins the U.S. position that it is critical to put facts on the table for a frank discussion about the real dynamic of world agricultural production and trade.

The new study indicated that wheat farmers outside of the four countries analyzed would benefit by reducing domestic supports. Hayes said the model showed global wheat cash prices would increase by more than four percent and world net trade would increase by five percent if domestic support is removed in all four countries. The study suggested that there would be benefits even from partial changes in price supports and input subsidies, although Hayes said the magnitude of the cash price and trade increase would depend on the size of the removal in each country.

“Since these subsidies are the acts of sovereign governments, our farmers cannot battle them alone. We are working with USTR and USDA to determine our next steps, including a possible WTO challenge,” Tracy concluded.

USW and NAWG have posted the entire report online at www.uswheat.org/policy and https://www.wheatworld.org/issues/trade/. Results of the two DTB Associates studies measuring domestic support in advanced developing countries, visit www.dtbassociates.com/docs/DomesticSupportStudy11-2014.pdf and www.dtbassociates.com/docs/domesticsupportstudy.pdf. For a third party analysis of individual policy measures by country, visit https://www.oecd.org/tad/agricultural-policies/producerandconsumersupportestimatesdatabase.htm#country.

USW is the wheat industry’s export market development organization working to promote all six classes of U.S. wheat in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Growers See TPA as First Step to Increased Export Opportunity

WASHINGTON, D.C. – Monday, June 29, 2015 – Today marks the end of a successful bipartisan effort and the beginning of better prospects for agricultural trade as President Obama signs Trade Promotion Authority (TPA) into law.

“With reauthorization of TPA, the President has a prime opportunity to help level the playing field for wheat growers and American agriculture,” said Brett Blankenship, NAWG President and a wheat grower from Washtucna, Wash. “It is now up to the Administration to use that authority to negotiate new wheat market access commitments in the Trans-Pacific Partnership (TPP) and future trade agreements.”

“Putting TPA in place is a step forward for American wheat growers,” said Roy Motter, USW Chairman and a Desert Durum® grower from Brawley, Calif. “Now we need a TPP agreement that will help growers overcome the tariff advantages a lot of our competitors get through free trade agreements with importing countries. That is important because wheat demand in many of those countries is growing rapidly and we can’t afford to lose out.”

NAWG and USW applaud the tireless work of Congress and the President to get to this point, and look forward to continuing to work with the Administration to finalize strong trade deals for America’s wheat farmers.

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

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by FAS.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S Wheat Growers Call for Equal Trade in Canada

ARLINGTON, Virginia – Yesterday, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) jointly called for improvements in Canada’s treatment of U.S. wheat classes in a letter to Canadian Minister of Agriculture and Agri-Food, Gerry Ritz, and Canadian Minister of International Trade, Ed Fast. While there has been positive collaboration between the two countries on wheat policy, the recent WTO Country of Origin Labeling (COOL) decision concerning the labeling of meat highlights Canada’s inconsistency on the issue of treatment of foreign agricultural products.

The United States is routinely Canada’s top wheat export market and allows wheat grown in Canada to be graded and traded the same as U.S. wheat in the market. Yet, the Canada Grains Act and Varietal Registration System (VRS) denies U.S. producers that same courtesy. Instead, all foreign grown grain is automatically downgraded under Canada’s official grading system to the lowest designation, regardless of whether the wheat is an approved Canadian variety or of high quality.

“Our concerns about the unfair regulatory environment that U.S. wheat faces in Canada closely parallel the arguments Canada successfully made in its WTO complaint against U.S. country-of-origin labeling (COOL) requirements,” states the letter signed by USW Chairman Roy Motter and NAWG President Brett Blankenship. “Specifically, the WTO Appellate Body found that the COOL measure was ‘inconsistent with Article 2.1 of the TBT Agreement because it accords less favourable treatment to imported livestock than to like domestic livestock.’ It is readily apparent to us that Canada’s treatment of imported wheat is less favorable than that of domestic wheat through its grading system.”

The two organizations propose that giving the market the freedom to determine origin segregation’s value — rather than mandating foreign grain labeling — not only increases benefits for both sides of the border, but also continues to strengthen the relationship between the two countries, further laying the foundation for a long-term, mutually profitable trade environment.

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

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

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Growers Support Quick Passage of Bipartisan TPA Legislation

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

“Trade is vital to the U.S. wheat industry, with 50 percent of the annual crop destined for export markets. U.S. farmers are eager to sell high quality wheat throughout the world, but artificial trade barriers often stand in their way,” said National Association of Wheat Growers President, Brett Blankenship. “Passage of TPA would send a strong signal that Congress and the Administration are united in their commitment to opening markets for the benefit of farmers and rural communities and creating jobs throughout this country.”

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

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

“Comprehensive free trade agreements create a more fair and level playing field, and U.S. wheat farmers need the leverage that TPA would give U.S. negotiators to have a unified voice in a growing international market,” said USW Chairman, Roy Motter. “Japan and other countries are less likely to put their best offer on the table for politically sensitive agricultural products like wheat unless they have the confidence provided by TPA.”

The United States is the world’s largest wheat exporter, offering customers around the globe a reliable, high-quality supply of six wheat classes. In the 2013/14 marketing year, ending May 31, 2014, the United States exported about 32 million metric tons (nearly 1.2 billion bushels) of wheat valued at about $9.7 billion, which supports thousands of jobs and creates economic benefits across the country. More on the industry’s trade work is at www.wheatworld.org/trade or www.uswheat.org/whatwedo/tradepolicy.

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

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

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Organizations Join Renewed Call for End to Cuban Embargo

Washington, D.C. — After participating in a “learning journey” to Cuba March 1 to 4, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) have joined members of the U.S. Agriculture Coalition for Cuba (USACC) to renew a call for Congress to end the U.S. trade embargo.

USW Assistant Director of Policy Ben Conner and Kansas wheat farmer Doug Keesling represented the U.S. wheat industry on the trip.

“Our visit was an important first step toward a stronger relationship with Cuba,” Conner said. “We appreciated the opportunity to sit down and personally discuss these issues with representatives of the Cuban government and its people. We left with the distinct impression that lifting the embargo represents a unique chance to benefit people in both countries.”

“We have exported wheat to Cuba in the past and there should be no reason why we can’t do it now or in the future,” Keesling said. “It is the biggest wheat importer in the Caribbean — just a couple days away from our Gulf ports — and our own policies are keeping us from working together again. That’s not good for farmers or for the Cuban people.”

While ongoing travel and financing restrictions negatively affect the export potential for U.S. wheat farmers, competitors in the European Union and Canada freely sell wheat to Cuba. Even if the U.S. government loosens its trade policies, the larger political implications of an ongoing embargo create an unstable business environment for the United States and Cuba.

“Since Cuba can buy almost anything from anywhere except from the United States, the embargo is effectively an embargo against U.S. businesses and citizens, not of Cuba,” said USW President Alan Tracy.

“We will seize every opportunity to expand trade and Cuba is no exception,” said NAWG President Brett Blankenship. “Cuba represents untapped trade potential within our own hemisphere, and an end to the embargo would greatly benefit the U.S. export economy. Our wheat growers stand with America’s farm and business leaders to promote trade with Cuba today, tomorrow and well into the future.”

Last week’s visit included more than 95 U.S. agricultural leaders who met with officials of the Cuban government and learned about initiatives underway in Cuba to boost food production.

“As a result of this week’s learning journey, U.S. agricultural interests are well-positioned to facilitate a strong, two-way relationship when the embargo is lifted,” said USACC Chair Devry Boughner Vorwerk.

USW is the wheat industry’s export market development organization working to promote all six classes of U.S. wheat in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.

The purpose of the USACC is to re-establish Cuba as a market for U.S. food and agriculture exports and address liberalizing trade between the United States and Cuba. The coalition will work to end the embargo and allow for open trade and investment.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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New Study on Abuse of WTO Agricultural Rules Could Help Focus Doha Round Negotiations

ARLINGTON, Virginia — Several influential countries are not complying with the domestic agricultural support commitments they made as members of the World Trade Organization (WTO). That is the conclusion of a study sponsored by U.S. commodity organizations and introduced to agricultural negotiators Wednesday, Feb. 18, 2015, in Geneva, Switzerland. Those organizations made the point that recognizing the current realities in agricultural support and trade could help improve the chances of finally reaching a Doha Round agreement.

The study was conducted by DTB Associates, Washington, DC, and updates a similar study conducted in 2011. U.S. Wheat Associates (USW) was one of the sponsors of the latest study indicating that the governments of India, China, Turkey, Brazil and Thailand have dramatically increased trade distorting subsidies for wheat, corn or rice production over the past ten years to levels that exceed their WTO agreements — in most cases by large margins. That information has not been readily available to WTO negotiators.

“U.S. wheat farmers strongly support the goals of the WTO and the Doha Round,” said USW President Alan Tracy. “We also believe every WTO member must follow the rules. Sadly, the facts we have uncovered show this is not the case.”

Member countries are required to report their domestic support levels to WTO regularly, but more than 650 notifications were late as of November 2014, Tracy noted. Turkey has not reported its support since its 2001 crop year. China has not reported since 2008 and India just submitted a notification last fall covering seven crop years to make them current through 2010. However, the study demonstrates that even notifications that have been reported often rely on faulty methodology.

“This study shines a light on what is really happening,” said USW Vice President of Policy Shannon Schlecht. “What it shows is a massive increase in government-sanctioned support prices and violations of Aggregate Measure of Support agreements that are distorting world trade in wheat, corn and rice.”

The dramatic increases in current support price levels by country and commodity in the study are clear and most revealing when compared with reference prices in the United States (see “Support Price Levels).

*Reference Price, Agricultural Act of 2014
**Support price under the Paddy Pledging Scheme
Note: China and Brazil wheat reflect 2014/15 support price levels

The minimum government prices reported in the study indicated a significant increase in support for wheat production in these countries over the past several years. Since the original study in 2011, a few countries increased their minimum support price for wheat by $50 to $100 per metric ton.

Under the Uruguay Round Agreement of the mid 1990s, WTO member countries agreed to abide by limits on Aggregate Measure of Support (AMS). The DTB study showed India, China, Turkey and Thailand have exceeded their AMS commitments by a wide margin (See “Aggregate Measure of Support”). WTO records show that the United States has always met its annual notification commitment and has never exceeded its AMS limit of $19.1 billion.

Aggregate Measure of Support (AMS)
2013/14 and 2014/15
Billion U.S. Dollars
Country Wheat Corn Rice Other Total AMS Limit
China $15.5 – $18.4 $20.6 – $54.4 $12.4 – $37.0 NA $48.4 – $109.8 $0
India $12.4 – $15.8 $2.5 – $3.8 $13.3 – $28.2 $33.0 $36.1 – 93.4 $0
Brazil $0.8 01 $0.6 NA $1.4 $0.912
Turkey $5.7 $1.0 $0.3 NA $7.0 $0
Thailand NA $0.5 $1.4 – 10.1 NA $1.9 – $10.6 $0.634
1 Support below de minimis level

The fact that these countries have far exceeded their WTO support commitments leads to serious trade distortions. An insightful example may be found in the Indian government’s wheat production and trade policies.

The study determined that India’s minimum support price for wheat increased by 111 percent between 2005/06 and 2013/14. India recently notified the WTO of a much lower increase but the study showed that the Indian government used faulty tactics to calculate the number it reported, a number that many other WTO members have questioned.

Increasing support levels gave Indian farmers an artificial incentive to produce more wheat. In fact, India’s wheat production increased by 35 percent over those seven years to record levels. That buoyed world wheat supplies and increased pressure on prices that hurt wheat farmers in other countries.

Over the same time, Indian wheat exports increased from 300,000 metric tons (MT) to 6.5 million MT. The study also included evidence that India is offering wheat export subsidies that are also illegal under its WTO commitment. Yet, claiming it must maintain a large public stockpile of grain to maintain food security as an advanced developing country, India has demanded exemptions to its trade-distorting levels of support.

“We agree with our U.S. agricultural negotiators that we see no possibility of concluding the Doha agreement by pursuing the same approach used over the last decade,” Schlecht said. “Hopefully the facts in the study will help raise awareness of the current realities of trade-distorting farm subsidies. Without this information it will be impossible for WTO members to achieve a balanced Doha Round conclusion across the domestic support, market access and export competition pillars.”

For more information, visit www.dtbassociates.com/docs/DomesticSupportStudy11-2014.pdf and www.dtbassociates.com/docs/domesticsupportstudy.pdf.

USW is the wheat industry’s export market development organization working to promote all six classes of U.S. wheat in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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