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Wheat Industry News

News and Information from Around the Wheat Industry

Speaking of Wheat

“The big news in wheat was the hard red winter number — shock-and-awe for USDA to increase it that much. The average trade guess was 532 million bushels, so the number was way above what anybody anticipated. We had a broad-based increase in yields, including Kansas, Oklahoma, and Texas. Big increases in Colorado and Nebraska with the rainfall. Montana yield up 5 bushels an acre, although that’s not yet certain, and then a little bit of an offset in South Dakota.” — Bill Lapp, founder and president of Advanced Economic Solutions in Omaha, Nebraska, as quoted in the World-Grain article “U.S. Winter Wheat Forecast Surprises Analysts.”  Read the full story here.

Russia Suggests Revival of Black Sea Grain Deal Dependent on ‘Improved Exports’

As Reuters and several other news organizations reported, a deal allowing the safe Black Sea export of Ukraine’s grain expired on July 17 after Russia quit and warned it could not guarantee the safety of ships. Russian officials suggested that if demands to improve exports of its own grain and fertilizer were met it would consider resurrecting the Black Sea agreement. However, U.N. Secretary-General Antonio Guterres said that a U.N. pact that aimed to help facilitate Russia’s shipments over the past year was also terminated. Read the full story here.

Climate and Violence Hobble Nigeria’s Push to Rely on its Own Wheat

The Associated Press published a story July 19 from Abuja, Nigeria revisiting the fact that Nigeria is trying to become self-sufficient. The government has launched programs to provide loans to farmers and boost domestic grain production. But extreme weather and violence from both gangs and farmers and cattle herders clashing over resources have hindered those efforts. It’s left Nigeria unable to produce enough wheat to bridge a gap in supply of more than 5 million metric tons. Read the full story here.

Nestle Investing in Wheat Supply Chain

In a July 19 article, World-Grain.com reported that Nestle USA, Inc. is investing in regenerative agriculture practices across its DiGiorno pizza brand supply chain in an effort to reduce the company’s overall carbon footprint.  The company’s investment will impact more than 100,000 acres of wheat-producing farmland. Nestle has partnerships with ADM and Ardent Mills, the two primary wheat flour suppliers for DiGiorno products, to support wheat farms in Kansas, Missouri, North Dakota, and Indiana.  Read the full story here.

Peters: Educational Efforts Build Relationships

In a July 17 interview with farm broadcaster Lorrie Boyer, U.S. Wheat Associates Board Chairman Michael Peters discussed U.S. Wheat’s upcoming work building export markets for wheat. He pointed out that, not surprisingly, one of the biggest challenges has been Russia. “Russia has still been shipping out a lot of wheat over this past year when they’ve shipped it out at a lot cheaper price than what we’re able to grow and produce it here in the U.S. So that has created some issues for us, with our overseas customers.” Listen to the Ag Information Network Report here.

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

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Wheat Industry News

News and Information from Around the Wheat Industry

Speaking of Wheat

“The international [grain] price in Ukraine will be on the level of the cost of production. Harvested grains and oilseeds will be level of 62 million (tonnes), exports about 40 million. We have only three seaports operating at capacity and [under the ‘fragile agreement’ to ship grains and other commodities via the Black Sea] Russia uses every possibility… to complicate these exports. [Ukraine’s] intention is to ensure freedom of navigation to and from Ukrainian seaports.” — Taras Kachka, deputy minister for Development of Economy, Trade and Agriculture of Ukraine, Trade Representative of Ukraine, from an article about the 2023 International Grains Council Conference by Chris Lyddon, World Grain.com. Read more here.

Russian Government Seeks Wheat Export Control

Bloomberg included an article June 29 suggesting “The Kremlin” is looking to exert greater control of Russian wheat production and trade. Reporter Aine Quinn wrote: “Russia’s growing market power is part of a broader effort. International traders such as Cargill Inc., left after facing pressure to clear the way for domestic companies. The changes put more control in domestic hands and could potentially make it easier for local companies to ship grains grown in occupied Ukrainian territory — and for Moscow to influence prices.” The article also suggested more government control of wheat would help it keep “the Global South on their side.” Read the article here.

Challenge from China on Black Sea Deal?

Agri-Pulse trade reporter Bill Tomson reported this week that China’s deputy permanent representative to the United Nations has stated that the Black Sea Grain Initiative needs to be renewed this month. The article indicates that China is most concerned about supplies of corn to feed its massive swine herd according to Collin Watters, director of exports and logistics for the Illinois Corn Marketing Board. Read more about the politics of war and grain here. Russian officials on July 5 said a final decision on whether to extend the grain deal has not been made.

National Wheat Foundation Tour for Government Staff

On June 27, 2023, the National Wheat Foundation and Maryland wheat grower Eric Spates, hosted a wheat farm tour for congressional staff and USDA employees. The attendees had the opportunity to explore the farm, witness the wheat harvesting process, and listen to speakers who specialize in the agriculture industry. The discussions centered around crucial topics such as risk management, conservation, pesticide programs, and environmental issues. Read more about the tour here.

Welcoming New NAWG Government Relations Representative

The National Association of Wheat Growers (NAWG) has hired Jack Long as the new Government Relations Representative. Long is a recent graduate from Oklahoma State University, where he received a Master’s in Agribusiness. Long is originally from Cole Camp, MO, and comes from a multigenerational farming operation. He has worked for Cornerstone Government Affairs and the Oklahoma State Senate, which provided him with a fundamental understanding of policy and current issues within the wheat industry. Read more here.

Communications Job in Montana

The state of Montana is accepting applications for the position of Marketing & Communications Director with the Montana Wheat and Barley Committee (MWBC), a state wheat commission member of U.S. Wheat Associates (USW). This position is responsible for managing marketing and outreach activities, content development and communications efforts for the MWBC. Primary obligations include planning and implementation of domestic marketing and international trade efforts aimed at increasing purchases of Montana grown wheat and barley. Read more or to apply, visit Montana’s government website here.

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

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Wheat Industry News

News and Information from Around the Wheat Industry

Speaking of Wheat

“Without a trade agenda that also advances U.S. economic interests by addressing barriers to U.S. exports through free trade agreements, the United States will lose influence globally. Other countries welcome U.S. products and benefit from the two-way relationship that free trade agreements promote. The U.S. government’s trade policy should be comprehensive … strengthening our global economic presence through proactive policies that support our export competitive industries such as U.S. food and agriculture.” – Sharon Bomer Lauritsen, founder of AgTrade Strategies and former assistant USTR for agricultural affairs and commodity policy, in a story by Agri-Pulse Trade Reporter Bill Tomson.

President Peterson Looks at Wheat Export Opportunities

U.S. Wheat Associates (USW) President Vince Peterson was in Montana this week for a meeting of the Montana Wheat and Barley Committee. He was interviewed by local media about the current challenges to U.S. wheat exports and future opportunities. “We’re trying to work in that environment where we’re facing a lot of competition globally,” Peterson said. “But at the same time, the carrot is out there … We’re going to have nearly 10 billion people by 2050, we’re going to consume a billion tons of wheat globally, and we’re going to have to trade 350 million tons of that globally.” Read more here.

Drought Expansion

University of Illinois FarmDoc says as of middle June, much of the U.S. corn production region is either dry or in drought according to the U.S. Drought Monitor, raising the prospects of a serious drought like that which occurred in 2012. Typically, prices continue to rise in drought years and, as an alternative to corn as a feed grain, winter wheat’s weather market appears to have momentum. European analyst Strategie Grains mentioned wheat production is confirmed at low levels in Spain and North Africa, and drought is starting to take hold across northern Europe, affecting yield potentials.

This illustration shows a U.S. map with corn production and drought indicating 65% of corn production area is in drought as of June 20, 2023.

This illustration from government sources shows a U.S. map with corn production and drought indicating 64% of corn production area is in drought as of June 20, 2023.

EU Softening Toward Gene Editing?

Agri-Pulse reported this week that a European Commission draft proposal could lead to a loosening of regulations on new genetic engineering techniques like gene editing. A draft regulatory document leaked and posted online by advocacy group ARC2020 proposes a streamlined path for certain new genomic techniques, or NGTs. An official proposal is expected early next month. “To see the European Commission edging toward welcoming gene editing is just a great thing,” Matthias Berninger, Bayer Crop Protection’s senior vice president of public affairs, science and sustainability, told Agri-Pulse at the company’s Crop Science Innovation Summit in New York City. Read more here.

NAWG: Dam Removal Endangers U.S. Wheat Export Competitiveness

At a at a Congressional Western Caucus Forum on the Importance of Hydropower to Rural Communities, National Association of Wheat Growers Chandler Goule provided a wheat perspective on the importance of the river system and barging play in helping feed the world. “The Lower Snake River Dams are a critical infrastructure system required to move U.S.-grown wheat to high-value markets around the world,” said Chandler Goule. “More than 55 percent of all U.S. wheat exports move through the Snake River system by barge or rail. Specifically, 10 percent of wheat that is exported from the United States passes through the four locks and dams along the Lower Snake River. This corridor is the third-largest grain export corridor in the world and is the single largest corridor for U.S. wheat exports.” NAWG remains opposed to breaching the dams as the agricultural, clean energy, and transportation benefits from the lock and dam system are irreplaceable and will continue to advocate on behalf of wheat growers to maintain this vital infrastructure. Read more here.

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

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Proposed Legislation Would Protect Snake River Dams and Export Efficiency

In March, U.S. Representatives Dan Newhouse (R-WA) and Cathy McMorris Rodgers (R-WA) introduced the Northwest Energy Security Act to protect four lower Snake River Dams. Senators Jim Risch (ID) and Steve Daines (MT) introduced a companion bill in the Senate. While the legislation focuses mainly on the benefits of hydroelectric power, protecting the lock and dam system will also preserve efficient barge delivery of U.S. wheat to export elevators in the Pacific Northwest.

These members of Congress and Pacific Northwest wheat leaders provided the following comments about the effort to protect Snake River dams.

Region Cannot Afford to Lose Dams

“The four lower Snake River Dams are integral to flood control, navigation, irrigation, agriculture, and recreation in Central Washington and throughout the Pacific Northwest—to put it simply, we cannot afford to lose them,” said Rep. Newhouse. He also expressed concern regarding the amount of non-scientific information being used to mislead people regarding the dams.

“A comprehensive, scientific process made clear dam breaching on the lower Snake River is completely unnecessary and unwarranted,” said Senator Risch. “With the Northwest Energy Security Act, Congress will ensure the Columbia River Power System continues to provide reliable and clean energy and supports the region’s transportation, agriculture, and irrigation needs.”

River Transportation Essential for Wheat

Grain barge navigation on the Columbia Snake River System is an essential part of a logistical web that moves over half of all U.S. wheat exports to more than 20 Pacific Rim countries including some of the largest U.S. wheat buyers in the world. The Snake River moves more than 10% of all wheat that is exported from the United States. Barging is also the most environmentally sound and efficient mode of transportation in the region, benefiting farmers and overseas buyers by helping keep export basis lower.

This is why U.S. Wheat Associates (USW), state wheat commissions, the National Association of Wheat Growers and state wheat associations strongly support the sustainability and reliability of wheat transportation by barge.

Map of the Columbia Snake River System from Pacific Northwest Waterways Association

Eight Steps Down. Lock and dam systems on the Columbia Snake River System allow barges to efficiently and safely navigate the 222-meter elevation change from Lewiston, Idaho, to export elevators as far west as Longview, Wash.

“The Washington Grain Commission supports continued efforts to maintain the Snake River dams as an essential piece of the larger Columbia River System,” said WGC CEO Casey Chumrau. “Washington farmers rely on the river system to transport more than half of the state’s wheat and access overseas export markets. Barging is the most environmentally sound and economically viable mode of transportation in the region and critical to the competitiveness of Washington farmers.”

“The importance of the four lower Snake River dams to our region’s farmers and rural communities for both transportation and energy production cannot be overstated,” said Bryan Searle, president of the Idaho Farm Bureau Federation. “The science is clear that salmon and dams can co-exist, and therefore we support the Northwest Energy Security Act. The members of the Idaho Farm Bureau Federation thank the sponsors of the bill.”

“The Snake River dams are vital to Washington’s wheat growers,” said Michelle Hennings, executive director of the Washington Association of Wheat Growers. “Scientific evidence conducted by the U.S. government has proven that removing the Snake River dams goes against environmental statutes and public interests. Washington wheat growers support any efforts that ensure the dams continue to operate as an integral part of the Columbia River System.”  

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Legislation Supports Barge Transportation and Lower Snake River Dams

A coalition of U.S. farm and food industry groups recently expressed support for a bipartisan Congressional agreement that, in part, maintains navigational access to the Lower Snake River Dams.

The Agricultural Transportation Working Group noted that the Water Resources Development Act* (WRDA) of 2022 helps protect U.S. agriculture’s dependence on comprehensive transportation system including inland waterways and ports.

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) join the working group in its strong support for the sustainability and reliability of wheat transportation by barge.

Barges Move U.S. Wheat and Other Grains

The “WRDA can impact trade because barges move about half of all grains to export elevators …,” the ATWG said in a letter to Congressional committee leadership that negotiated the 2022 WRDA. “Critical farm inputs … are transported via the inland waterways system. From the Pacific Northwest to the Mississippi River and the Gulf Coast, the importance of inland waterways and ports to the ATWG and American agriculture is definitive.”

Grain barge navigation on the Columbia Snake River System is an essential part of a logistical web that moves over half of all U.S. wheat exports to more than 20 Pacific Rim countries including some of the largest U.S. wheat buyers in the world. The Snake River moves more than 10% of all wheat that is exported from the United States. U.S. Wheat Associates (USW) and its state wheat commission members strongly support the sustainability and reliability of wheat transportation by barge.

Map of the Columbia Snake River System from Pacific Northwest Waterways Association

Eight Steps Down. Lock and dam systems on the Columbia Snake River System allow barges to efficiently and safely navigate the 222-meter elevation change from Lewiston, Idaho, to export elevators as far west as Longview, Wash. Illustration from the Pacific Northwest Waterways Association.

Protect Most Fuel-Efficient Shipping

The working group also noted that the removal of barge access through the Lower Snake River dams would require 39,000 rail cars or 152,000 semi-trucks to replace the cargo volume shipped on the Snake River in 2019, according to the Pacific Northwest Waterways Association. The group added that barging is the most fuel-efficient way to ship goods and failure to maintain access to this system would dramatically increase carbon emissions.

The Columbia Snake River System and other major U.S. river systems truly connect the United States to its trading partners. The river system keeps U.S. wheat competitive by moving higher volumes more efficiently. USW, its state wheat commission members, wheat associations and supply chain stakeholders in the tri-state region of Idaho, Oregon and Washington all support the Columbia Snake River System and will work to see that it continues working for wheat buyers around the world.

*The Water Resources Development Act is biennial legislation that authorizes flood control, navigation, and ecosystem restoration projects for the U.S. Army Corps of Engineers. The final version comes after months of negotiations to reconcile Senate- and House-passed versions of the legislation.

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