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CP-KCS Merger Approval Disappoints National Wheat Organizations

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are disappointed that the Surface Transportation Board (STB) has approved Canadian Pacific Railway’s merger with Kansas City Southern Railroad.

In public comments submitted to the STB on the proposed merger in February 2022, USW said the market power held by the Class I railroads has serious implications for U.S. wheat’s competitiveness compared to other major exporters. NAWG shared similar public comments with the STB in February 2022, which outlined how reliant wheat is on rail and how decreased rail-to-rail competition hurts shippers and growers alike.. Now, this merger takes the U.S. rail system from seven to six Class 1 railroads.

USW and NAWG believe the STB has given a greenlight to rail consolation without regard for the consequences on agricultural shippers from lack of competition in the U.S. rail sector.

“U.S. rail industry consolidation has led to poorer, not improved, service for agricultural shippers,” said USW President Vince Peterson. “In addition, we see extreme disparity in rates for wheat shippers. Rail rates over the last decade have increased exponentially and rates for wheat are higher than rates for other commodities even with similar handling characteristics. Those higher rates make U.S. wheat less competitive in the global market at a time when higher prices already hurt our competitiveness.”

“NAWG is disappointed by today’s STB announcement and maintains our concerns that the merger of CP and KCS will impede competition in the rail market and increase rail rates,” said NAWG CEO, Chandler Goule. “With 50 percent of wheat being exported, wheat is heavily reliant on rail transportation to move across the United States. Since the merger was announced in 2021, NAWG has filed four public comments with the STB opposing the merger, citing a myriad of concerns on the impact to competition, unfair access to competing wheat producing countries, and changes to tariff provisions that could impact wheat farmers.”

USW and NAWG believe the STB must conduct more rigorous oversight of rail rates and service issues going forward. The STB should also aggressively pursue policies designed to inject competition such as reciprocal switching – a proposal that the STB ironically shelved last year because Class 1 rail service was severely challenged for agricultural shippers.

USW and NAWG continue to review the conditions the STB included in the merger agreement that are intended to protect competition and mitigate impacts on communities. We look forward to working with both the new CP-KCS railroad and the STB on addressing the disparities wheat shippers face going forward.

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About USW

The U.S. Wheat Associates (USW) mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 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 U.S. wheat classes. For more information, visit www.uswheat.org.

About NAWG

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

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Wheat Growers Encourage Additional MAP and FMD Funding

Washington, D.C. (February 16, 2023) – As Congress gears up for Farm Bill reauthorization, the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) are announcing advocacy tools and resources to engage with their legislators on the Expanding Agricultural Exports Act (S. 176) and Agriculture Export Promotion Act (H.R. 648), which the wheat industry welcomed. Because half of the wheat grown in the United States is exported, wheat growers have a deep understanding of the importance of trade and market development.

Earlier this month, lawmakers introduced this bipartisan and bicameral legislation that would strengthen the effectiveness of the Market Access Program (MAP) and Foreign Market Development program (FMD). MAP’s authorized funding has not changed since 2006 and FMD funding has remained the same since 2002, so inflation and sequestration have significantly eroded the ability to compete with other countries who are steadily investing more in their agricultural export promotion efforts.

Double Funding

If enacted, this legislation would double funding for these agricultural export market development programs administered by USDA’s Foreign Agricultural Service (FAS). The Expanding Agricultural Exports Act was originally introduced by Senators Angus King (ME), Tina Smith (MN), Joni Ernst (IA), Chuck Grassley (IA) and Susan Collins (ME). The Agriculture Export Promotion Act was originally introduced by Representatives Dan Newhouse (WA), Jim Costa (CA), Tracey Mann (KS), Kim Schrier (WA), Ashley Hinson (IA), Jimmy Panetta (CA), Brad Finstad (MN) and Chellie Pingree (ME).

The wheat industry applauds Congress’s efforts to invest in these crucial programs. To highlight the importance of enacting this legislation, NAWG launched a grassroots campaign to help wheat growers encourage their Members of Congress to support these legislative efforts and have them included as part of the 2023 Farm Bill. Individuals can click here to participate in our grassroots advocacy campaign. Wheat growers are strongly encouraged to participate in the campaign to let their Members of Congress know how vital supporting these marker bills are to advancing agricultural exports.

Grateful to NAWG

“We are grateful for the work being done in Congress to lay the foundation for a strong 2023 Farm Bill that invests in programs that promote U.S. wheat and other agricultural products,” said NAWG President and Washington wheat farmer, Nicole Berg. “However, even with these marker bills that invest in the MAP and FMD program, we still have a long way to go in educating Members of Congress on why these resources are needed. We need wheat growers to help spread the word and tell the story of why this programmatic investment is necessary and how it would help grow our national economy. The campaign makes it easy for growers to contact their legislators, which truly makes a difference in how these decisions are made and votes are cast. I hope all growers participate, so our voices are heard loud and clear on Capitol Hill.”

“Our organization wants to thank our friends at NAWG for focusing on the need to increase MAP and FMD funding in the next farm bill,” said Rhonda K. Larson, USW Chair and a wheat farmer from East Grand Forks, Minn. “Studies have shown that the return on investment from MAP, FMD is very strong – but our activities overseas and impact are limited today by the erosion of these resources over time.”

A recent econometric study conducted by agricultural economists at IHS Market and Texas A&M University predicted that doubling funding for these programs would generate an additional $44.4 billion in U.S. agricultural exports over the 2024 to 2029 time period. This would directly benefit farmers, livestock producers, dairy operators and small businesses as they work to maintain and expand their global presence. Read more at www.AgExportsCount.org.

The Agriculture Export Promotion Act must now be considered by the Senate Agriculture Committee and House Agriculture Committee.

Wheat growers can participate in the campaign on the NAWG website. Fill out your information and click submit; a letter will automatically be sent to your two senators and representative.

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

About U.S. Wheat Associates. USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 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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U.S. Wheat Associates Board Elects New Officers for 2023/24 Term

WASHINGTON, D.C. — The U.S. Wheat Associates (USW) board of directors elected new officers for the organization’s 2023/24 (July to June) fiscal year at their meeting Feb. 3, 2023, in Washington, D.C. The board elected Jim Pellman of McClusky, N.D., as Secretary-Treasurer; Clark Hamilton of Ririe, Idaho, as Vice Chairman; Michael Peters of Okarche, Okla., as Chairman; and Rhonda Larson of East Grand Forks, Minn., as Past Chairperson. These farmers will begin their new leadership roles during the USW board meeting in July 2023 in Minneapolis, Minn.

USW is the export market development organization for the U.S. wheat industry.

The 2023-24 USW Officer Team

The 2023-24 USW Officer Team

2023/24 U.S. Wheat Associate Officers. (L-R) Jim Pellman, McClusky, N.D., Clark Hamilton, Ririe, Idaho, Rhonda Larson, E. Grand Forks, N.D., and Michael Peters, Okarche, Okla. These officers will begin their term in July 2023.

“After serving as a director on the U.S. Wheat Associates board representing North Dakota, I believe in the mission of the organization,” Pellman said. “This is an ideal time for me to put my experience to work for wheat farmers beyond my county and state. I’m looking forward to doing what I can to help the organization continue building export demand in a very competitive global market.”

Jim Pellman and his wife, Candace, have two children and grow wheat, barley, canola, corn, and soybeans on the farm they started in 1990 near McClusky, N.D. After earning a bachelor’s degree in Agricultural Economics from North Dakota State University, Pellman worked as an ag lender and county supervisor with Farmers Home Administration and then several years as a community banker. He served as Chief and on the board of his community’s volunteer fire department and as chairman of a local non-profit housing organization. Pellman is serving his second, four-year term on the North Dakota Wheat Commission (NDWC), serving as Sheridan County representative since 2014. Pellman is NDWC vice-chairman and is liaison on transportation issues and the North Dakota Rail Council, as representative to the North Dakota Grain Growers Association, and a voting member of the SBARE Wheat Granting Committee.

Clark Hamilton and his wife, Kristy own Hamilton Triple C Farms, a 6,000-acre diversified family farm in eastern Idaho, that they operate with their two sons. They grow four specific wheat classes as well as barley, potatoes, pulses, and alfalfa. Hamilton spent several years serving and representing Idaho wheat and barley farmers as an executive officer of the Idaho Grain Producers Association (IGPA), including one year as president, and has been a board member of Ririe Grain and Feed Cooperative, Inc., for several years. While serving in those roles, he became very familiar with the local, state and national issues impacting agriculture and particularly wheat. He is currently one of five wheat growers appointed as a commissioner on the Idaho Wheat Commission and served as chair of that organization. Hamilton remains active in leadership roles in his church and community.

Michael Peters is a farmer and rancher growing hard red winter wheat and canola, and grazing stocker cattle on wheat. He serves on the Mid-Oklahoma Coop board of directors and on the Plains Partners Coop Board, a division of CHS, and is a member of the Okarche Rural Fire Fighters’ Association Board. He has also served as President of St. John’s Lutheran Church. He currently serves as a Commissioner and Chairman of the Oklahoma Wheat Commission. He has participated in several farm leadership programs sponsored by CHS and the National Wheat Foundation. Peters and his wife Linda have two sons who work with him and his father on their farm.

Rhonda Larson was raised on her family’s Red River Valley farm and engaged full-time in the operation for nearly 30 years. Her father started the farm growing potatoes, wheat and barley. With her two brothers and her son, the third generation on the farm, they currently grow wheat and sugarbeets. Larson has been a board member of the Minnesota Wheat Research & Promotion Council for 17 years; serving as chair from 2010 to 2012. She served on the Wheat Foods Council board and is a long-time member of the Minnesota Association of Wheat Growers and the Red River Valley Sugarbeet Growers Association. As a USW director, she served on the Long-Range Planning Committee and the Budget Committee. Larson received a bachelor’s degree in public administration and a juris doctor’s degree in law from the University of North Dakota.

U.S. Wheat Associates’ (USW) mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 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 U.S. wheat classes. For more information, visit www.uswheat.org.

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U.S. Wheat Associates Promotes Tyllor Ledford to Market Analyst

U.S. Wheat Associates (USW) has promoted Tyllor Ledford to Market Analyst. Ledford has served as USW Assistant Director of the West Coast Office in Portland, Ore., since August 2021. USW is the export market development organization for the wheat industry.

“We are very pleased to recognize Tyllor’s strong contribution to our customer support and crop quality efforts with this promotion to Market Analyst,” said USW Vice President of Communications Steve Mercer. “Providing global and domestic market analysis, including unique information on U.S. wheat export pricing, is an important part of our trade service effort. Tyllor has the educational background and people skills to excel in this position.”

Ledford joined USW after completing both bachelor’s and master’s degrees in agricultural and applied economics from Texas Tech University. Her master’s thesis focused on the relationship between food security and conflict patterns in Africa and was awarded the “2022 Outstanding Master’s Thesis” by the Southern Agricultural Economics Association. She gained valuable experience as a Texas Tech graduate research assistant, by interning with Colorado State University Extension and through agribusiness academic immersion programs in China and Spain. Ledford is a native of Colorado, growing up on her family’s farm where they raised Quarter Horses and irrigated alfalfa.

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Portrait of Tyllor Ledford, Market Analyst with U.S. Wheat Associates

Tyllor Ledford, USW Market Analyst

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Joint Statement – Wheat Industry Welcomes Senate Confirmation of Doug McKalip as USTR Ag Negotiator

Following almost two years without a Chief Agricultural Negotiator in the Office of the United States Trade Representative (USTR), U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are very glad that the U.S. Senate has confirmed Doug McKalip to fill the position.

“Mr. McKalip’s work in conservation, with the Animal and Plant Health Inspection Service, and recent negotiations with the Mexican government on biotech issues match up perfectly with some of the most important agricultural trade barriers,” said USW President Vince Peterson. “He is well prepared for this position, and we look forward to working with him to open and grow overseas markets for U.S. wheat,”

“Congratulations to Doug McKalip for filling this critical role,” said NAWG CEO, Chandler Goule. “I know Doug very well from his decades of public service at the USDA, and he will be an absolute asset to USTR, wheat growers and the ag community. With half the wheat grown in the United States destined for foreign markets, it is essential we have these key trade roles filled and we look forward to having Doug advocate for U.S. wheat farmers.”

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Joint Statement – Wheat Industry Applauds U.S. Senate Confirmation of Alexis Taylor

The National Association of Wheat Growers and U.S. Wheat Associates (USW) welcome the U.S. Senate’s confirmation of Alexis Taylor to serve as the U.S. Department of Agriculture (USDA) Under Secretary for Trade and Foreign Agriculture Affairs. Earlier today, the Senate confirmed Taylor by a voice vote.

“NAWG applauds the confirmation of Alexis Taylor to this key role, and I personally congratulate her for this historic appointment,” said NAWG CEO Chandler Goule. “I have worked with Alexis for over 15 years, and I know the agriculture industry will benefit immensely from her expertise. She is a widely recognized leader on agriculture policy and has the domestic and international experience to help navigate U.S. agriculture through growing global changes and help expand markets for U.S. agricultural products. We appreciate the Senate’s bipartisan support of Alexis and look forward to working with her.”

“Global markets for food and agricultural products like milling wheat are growing, so finally having Ms. Taylor in this position will help re-establish the United States as a leading export market participant,” said USW President Vince Peterson. “After serving as Agriculture Director in Oregon she understands just how important it is to maintain a strong promotional effort in export markets. We look forward to working with her to build overseas markets for U.S. wheat.”

The Trade and Foreign Agriculture Affairs mission area plays a crucial role in developing and implementing USDA’s trade policy, oversees and facilitates foreign market access, and promotion opportunities for U.S. agriculture. The wheat industry looks forward to working with Alexis Taylor to advocate for U.S. wheat farmers and American agriculture.

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About U.S. Wheat Associates. USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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

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News Release – Wheat Industry Rail Shippers Welcome STB Rulings on Rate Disputes

New U.S. Surface Transportation Board (STB) rulings provide more streamlined processes for rail rate disputes and may benefit agricultural shippers. The STB established a voluntary arbitration program and an entirely new procedure for rate challenges, known as Final Offer Rate Review (FORR).

U.S. wheat farmers and the grain trade rely heavily on rail to transport wheat to export terminals by rail, but rates for hauling wheat are often higher than for other crops. The U.S. Wheat Associates (USW) Transportation Working Group is pleased that the STB recognizes rail shippers need new and innovative ways to engage railroads on rate concerns.

New Ways to Challenge Rates

“These rulings are a welcome sign that rail customers like wheat farmers are being heard. The voluntary arbitration program and the FORR process are intended to help give smaller shippers greater ability to challenge rail rates,” said Charlie Vogel, TWG chairman and executive director of the Minnesota Wheat Research & Promotion Council. “Under these programs, the railroads can agree to binding arbitration or allow the STB to review a dispute and determine a final reasonable rate.”

STB Chairman Martin Oberman noted that the Board has been looking for ways to make smaller rail disputes “accessible, reasonable, and less time-consuming.” However, he added that “the Board’s prior efforts to provide rate review methods suitable for smaller disputes have been rarely used by shippers. I am optimistic that this time the Board’s efforts will achieve this long-desired goal.”

For more information visit https://www.uswheat.org/wheatletter/wheat-industry-helps-build-awareness-of-rail-shipping-challenges.

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U.S. Wheat 2022 Crop Quality Videos Available

U.S. Wheat Associates (USW) has posted video presentations at a dedicated website, https://cropquality.uswheat.org/, to support the organization’s report on 2022 U.S. wheat crop quality. The video content includes eight presentations by wheat class and export location, a global wheat supply and demand summary and five special topic presentations.

The annual crop quality effort to report on comprehensive milling, flour and baking data for all six U.S. wheat classes is an essential part of USW’s trade service to the world’s wheat buyers and wheat food processors. It provides objective information buyers can use to get the wheat they need at the best value possible.

North Dakota Wheat Commission Marketing Director Jim Peterson presenting 2022 hard red spring wheat quality data in a video presentation.

Hard Red Spring 2022 Crop Quality for the Pacific Northwest export tributary is presented by Jim Peterson, North Dakota Wheat Commission in this video summary posted online at cropquality.uswheat.org.

 

In-season, USW and its state wheat commission members share early crop conditions through webinars. Sample testing and analysis is conducted during and after harvest by partner laboratories. The results are shared with customers in several ways including a summary report, by-class reports, in-person seminars, and video summaries.

USW Crop Quality reporting is funded by the Market Development Program (MAP) and Foreign Market Development (FMD) program administered by the USDA Foreign Agricultural Service.

 

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U.S. Wheat Associates Names Dong-Chan Bae as Country Director in South Korea

Dong-Chan Bae, Country Director USW Seoul Office

Dong-Chan Bae, new Country Director in USW’s Seoul Office in South Korea

U.S. Wheat Associates (USW) has hired Dong-Chan Bae as Country Director in the USW Seoul Office in South Korea. Bae, who begins his role on Nov. 1, comes to USW after 25 years with the Samyang Corporation, a diverse South Korean company that includes a food and consumer goods business unit and flour milling operations.

Bae spent two decades as a manager in Samyang’s Grain Procurement Division, where he was responsible for the purchasing of wheat from international markets. He also performed management duties related to the company’s flour milling ventures, and oversaw administration of Samyang offices in New York, Shanghai and Tokyo.

“We are excited to welcome Mr. Bae to the USW team and feel his understanding of the global wheat market will be an asset for our efforts in an important part of the world,” said Mike Spier, USW Vice President of Overseas Operations. “He will play a big part in USW’s mission to develop, maintain and expand U.S. wheat exports to the South Korean market.”

After being part of many collaborations between USW and South Korean importers and millers, Bae said he looks forward to representing the U.S. wheat industry.

“I have always appreciated the work of U.S. Wheat Associates and I plan to use my abilities to continue the success of hard-working U.S. wheat farmers to provide a stable supply of high-quality wheat to South Korea,” he said.

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Wheat Growers Welcome Introduction of CREAATE Act Supporting Increased Export Promotion Funding

ARLINGTON, Virginia — U.S. wheat growers have a long history of recognizing the value of export market development by supporting the successful public-private partnership with USDA’s Foreign Agricultural Service (FAS). That is why U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the introduction of the Cultivating Revitalization by Expanding American Agricultural Trade and Exports (CREAATE) Act of 2022 in the U.S. Senate.

This legislation, introduced by Senators Tina Smith (MN), Angus King (ME), Joni Ernst (IA), and Charles Grassley (IA), would double funding for the Market Access Program (MAP) and Foreign Market Development (FMD) Program, agricultural export market development programs administered by FAS.

Each year, wheat growers contribute a portion of their wheat sales which qualifies USW to apply for MAP and FMD program funds along with more than 60 other U.S. agricultural export promotion organizations. Unfortunately, inflation, sequestration and administrative costs have sapped the value of the program funds over many years.

“MAP funding has not been increased from $200 million since 2006 and FMD funding has not changed from $34.5 million since 2002, but our foreign competition in most global markets including wheat has grown,” said USW Chairperson Rhonda K. Larson, a wheat grower from East Grand Forks, N.D. “To manage that challenge over the years, USW has closed offices and reduced staff to protect wheat export demand in our top markets. With additional MAP and FMD funds, we could expand our promotion effort to more commercial markets.”

A USDA chart showing the market share by country of global wheat trade over 20 years through 2021

Competitive Squeeze. Over the past 14 years, competition in the global wheat trade has increased. This data from USDA shows dramatic growth in market share for Russia primarily but data from the “Rest of the World” indicates more new competitors and promotional efforts.

USW also uses MAP and FMD funding to enable greater use of U.S. wheat in food aid programs that have taken on increased significance with the disruption of global wheat trade by the Russian invasion of Ukraine.

“Our food aid programs are the best suited for U.S. wheat to help support the humanitarian needs of those affected by the conflict and for on-going food insecurity,” said Nicole Berg, NAWG President and a wheat grower from Paterson, Wash. “Looking ahead to the 2023 Farm Bill legislation, our food aid programs must receive continued support and MAP and FMD programs dollars must be enhanced to support the effort to promote U.S. wheat and other agricultural products.”

A recent econometric study conducted by agricultural economists at IHS Market and Texas A&M University predicted that doubling funding for these programs would generate an additional $44.4 billion in U.S. agricultural exports over the 2024 to 2029 time period. This would directly benefit farmers, livestock producers, dairy operators and small businesses as they work to maintain and expand their global presence. Read more at www.AgExportsCount.org.

The CREAATE legislation must now be considered by the Senate Agriculture Committee.

The U.S. Wheat Associates (USW) mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 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 U.S. wheat classes. For more information, visit www.uswheat.org.

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

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