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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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Introducing Europe’s Next Generation of Millers to U.S. Wheat

ARLINGTON, Virginia — The link between food and family transcends cultures and, in some cases, industries. European millers will have the chance to witness this in action while learning about the quality of U.S. wheat and the reliability of the U.S. supply system June 21 to 27, 2015, on their trade team visits to North Dakota, Minnesota and Ohio. The team of six participants from Italy, Spain and Malta include millers from companies of varying sizes and an Italian wheat trader who does business with the mills. U.S. Wheat Associates (USW) worked with the North Dakota Wheat Commission, the Minnesota Wheat Research & Promotion Council and the Ohio Small Grains Marketing Program to organize this team.

“Some of these millers are owners or someday will take over the family business,” said Rutger Koekoek, USW Rotterdam Office marketing specialist, who will travel with the team. “They have responsibilities spanning procurement, production, quality control and so this visit gives the U.S. wheat industry the opportunity to develop a relationship with the next generation of decision makers.”

Based on a five-year average, the USW European Union (EU) region, which includes Israel, annually imports about 400,000 metric tons (MT) of hard red spring (HRS) wheat. Italy is the largest European importer of HRS wheat, averaging 70 percent of total European imports of HRS over the past three years. “These countries look to U.S. wheat for quality in HRS wheat that is ideal for use in high quality flour mixes and soft red winter wheat that is suited for biscuits, crackers and pastries,” said Koekoek. “It is important that customers feel confident about both the product and the system.”

Members of the trade team will see each step of the grain supply chain for HRS in North Dakota and Minnesota, and for soft red winter (SRW) wheat in Ohio. The schedule includes farm tours and discussions with university wheat breeders about how they are improving U.S. wheat qualities in ways that are important to overseas customers. The trip will also give participants an in depth look at the U.S. wheat grading, marketing and transportation systems.

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’s 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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Farm and Industry Visits Help Protect Demand for U.S. Wheat in Nigeria

ARLINGTON, Virginia — Eight senior managers from Nigeria’s milling and noodle/pasta manufacturing industries will visit South Dakota and Kansas June 21 to 27, 2015, to examine the current hard red winter (HRW) crop as part of a U.S. Wheat Associates (USW) trade team. USW believes this annual event helps maintain a loyal customer base in a traditionally large market.

Nigeria was the third largest buyer of U.S. wheat for the 2014/15 marketing year that ended on May 31, 2015, importing 76.9 million bushels (2.04 million metric tons). Year-to-year, Nigeria buys more U.S. HRW than any other country. Nigerian millers imported 58.4 million bushels (1.6 million metric tons) of HRW in 2014/15. They also purchased about 12.9 million bushels of soft red winter (SRW) as well as some soft white (SW) and northern durum.

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

“In an increasingly competitive market, those customers still benefit from, and appreciate, the support USW provides including the chance to see the new U.S. wheat crop and learn about its supply chain from the people who manage it,” said Gerald Theus, assistant regional manager for Sub-Saharan Africa with USW who is based in Cape Town, South Africa. Theus and Talabi will lead this trade team visit.

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

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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Brazilian Wheat Importers Set to Examine SRW, HRW Crops

ARLINGTON, Virginia — A team of five executives representing large flour mills in Brazil will be in the United States June 14 to 20, 2015, to learn more about the 2015/16 crop and the U.S. wheat supply chain. Together, they purchase about 60 percent of Brazil’s annual wheat imports and were among millers purchasing a record amount of U.S. hard red winter (HRW) and soft red winter (SRW) in 2013/14 and 2014/15. Wheat farmers are pleased to see these buyers return to the United States.

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

With funding from state wheat commissions and USDA market development programs, the work USW did in Brazil helped spur millers actively import most of their wheat from the United States. Brazil’s imports returned more than $1 billion to the U.S. wheat industry in a little more than one year from an investment of less than $100,000 in market development spending.

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

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

“We will also meet with export grain traders and review the federal grain inspection system in Nebraska,” Seco said. “Relationships are very important to these buyers and there is no more powerful marketing tool than sitting face-to-face with the people who develop, grow and handle U.S. wheat.”

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.

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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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Annual U.S. Wheat Crop Tour Strengthens Relationships with Japanese Executive Millers

ARLINGTON, Virginia — Building mutual trust and long-term business relationships takes time and commitment. As a part of its market development activities, one important activity U.S. Wheat Associates (USW) employs to create stronger partnerships with overseas customers is to invite them to have a firsthand look at the U.S. wheat crop. That is what a team of six flour milling executives from Japan’s leading milling companies will do during travel to the Pacific Northwest April 30 to May 8, 2015.

“Japan imports large amounts of U.S. wheat so it is important for the Japanese flour milling industry to regularly exchange views and information with U.S. wheat organizations and businesses,” said Mr. Masaaki Kadota, executive director of Japan’s Flour Millers Association. “We really appreciate your efforts to support our needs as your customers.”

USW collaborated with the Montana Wheat and Barley Committee, Oregon Wheat Commission and Washington Grain Commission to organize and host this trade team.

The Oregon Wheat Growers League (OWGL) established the first overseas U.S. wheat export office in Tokyo in 1956 and in that same year, the first Japanese millers team visited the United States to learn about its markets. After it was established, USW continued the tradition and for well over a decade, this particular activity has become an annual trip for Japanese executive millers. According to Kadota — who has accompanied this team for many years — there is always something new to learn and discuss.

“There is nothing better than strengthening the mutual trust I have with those whom I meet each year,” said Kadota.

The team will make stops in Oregon, Washington and Montana. During meetings with wheat farmers, grain industry representatives and university researchers, the team will discuss the U.S. wheat supply and demand picture, including potential quality, availability and price. The team will also discuss current views on competitive markets, dietary trends and the role innovations in wheat breeding will have in balancing future world food supply demands with the need for less impact on the environment.

“This exchange of dialogue and information is essential to U.S. trade with Japan,” said USW West Coast Office Assistant Director Shawn Campbell. “When questions and concerns arise, we rely on the trust built during these activities to guide us toward decisions that have a positive impact for both U.S. wheat farmers and the Japanese milling industry.”

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’s 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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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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U.S. Wheat Associates Hires Communications Specialist

ARLINGTON, Virginia — U.S. Wheat Associates (USW) welcomes Amanda Spoo as Communications Specialist in its Arlington, VA, headquarters effective March 9, 2015. Spoo will provide public relations and marketing communications support, specifically working to communicate the value of USW to stakeholder organizations.

“Amanda’s education and creative approach in her current position are ideal to support what we are doing to expand outreach to wheat farmers and their overseas customers,” said USW Vice President of Communications Steve Mercer. “We look forward to having Amanda join our growing base of young, talented associates.”

Spoo grew up in Hermiston, OR, and earned a bachelor’s degree in agricultural communications and journalism at Kansas State University. She gained valuable experience in the grain industry by working three years as a Student Communications Specialist at the IGP Institute and also worked as a Communications Intern in Government Affairs with ICM, Inc., a Kansas biofuels company. Spoo was an active member of Agriculture Future of America, serving on its student advisory team. Over the past two years, Spoo managed a broad range of strategic producer communications and consumer outreach projects as Director of Communications at the Kansas Pork Association.

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.

Amanda Spoo

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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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