Wheat Letter Blog Archive - Page 3 of 98

Watch Episode 5 of “Stories of Stewardship” Video Series

“Everybody’s always cared for the land, but now we have tools available that we never had 50 years ago,” explains Art Schultheis, a fifth-generation farmer from Colton, Washington. Schultheis, who harvested his 40th wheat crop last year, is transitioning his son into the role of “sustainable wheat farmer.” But he remains firmly on the job. Through techniques like direct seeding into crop residue or using extremely precise applications of fertilizers, Schultheis has become a master at using the new tools available to him. Learn about Schultheis and his farm in Episode 5 of U.S. Wheat Associates’ (USW) “Stories of Stewardship” series:

USW’s new video series focuses on the sustainable practices applied by five farm families growing different classes of wheat across the range of conditions in the United States. They share a commitment to farm in ways that sustain economic viability to produce safe, wholesome wheat for the world while ensuring the land is passed on in better condition for future generations.

USW wants to thank Schultheis, Nick Jorgensen of Ideal, S.D.; Tom Cannon of Blackwell, Okla., Ben and Stephanie Bowsher of Harrod, Ohio.; Art Schultheis of Colton, Wash.; and Aaron Kjelland of Park River, N.D. for sharing their Stories of Stewardship.

The next episode will be released March 20.

To learn more about sustainable U.S. wheat production, visit the USW website at https://www.uswheat.org/stories-of-stewardship/. USW is also a member of the U.S. Sustainability Alliance where you can see a fact sheet on wheat sustainability.

March 6, 2024/by Ralph Loos

Trade Delegation, Trade Negotiations and Barriers, Trade Policy, World Trade Organization (WTO)

U.S. Wheat Associates Sees Positive Outcome at WTO Ministerial Conference

To misquote Mark Twain, reports of the death of agricultural negotiations at the World Trade Organization (WTO) are exaggerated. That is a key message for the world’s wheat growers and buyers following the Thirteenth WTO Ministerial Conference (MC13) in Abu Dhabi, United Arab Emirates. In the WTO photo above, Director General Okonjo-Iweala encouraged members to close remaining gaps to secure outcomes during the Conference.

“Going into MC13 negotiations, we did not want to see any backsliding on past progress made on agricultural commitments at the WTO,” said U.S. Wheat Associates (USW) Director of Trade Policy Peter Laudeman, who joined a coalition of U.S. agricultural representatives at the Conference. “Fortunately, the U.S. negotiating team and many other countries were able to hold firm, particularly against India’s protection of its trade-distorting wheat and rice policies.”

On Feb. 29, 2024, during the Ministerial, Politico Pro trade reporter Doug Palmer provided additional background about the agricultural negotiations.

“The U.S. farm groups contend India’s me-first approach is a non-starter because the “peace clause” agreed in Bali has allowed it to accumulate huge rice and wheat stocks that it buys at above market prices and then sells into world markets at a discount,” Palmer wrote. “They also argue there is a much older mandate for a broad-based negotiation in the 1994 WTO Agriculture Agreement that includes trade-distorting domestic support and market access barriers that countries impose to keep out farm exports.”

For more information about U.S. wheat industry positions on WTO agricultural policy, visit “USW Trade Policy Team Addresses India’s Subsidies, Turkish Flour at WTO.”

Members of a U.S. agricultural coalition met during the WTO MC13 with USTR Chief Ag Negotiator Doug McKalip in February 2024.

USTR Chief Agricultural Negotiator Doug McKalip met with U.S. agricultural industry representatives at the WTO 13th Ministerial Conference in Abu Dhabi in February 2024. Representatives included (L-R) Peter Laudeman, U.S. Wheat Associates: Molly O’Connor, CropLife America; Ambassador McKalip; Maria Zieba, National Pork Producers Council; Karah Fissel, USA Rice; Sharon Bomer Lauritsen, AgTrade Strategies, LLC; Tony Rice, National Milk Producers Federation; and Ben Conner, DTB AgriTrade.

Shared Interests

Laudeman would agree with U.S. Trade Representative (USTR) Ambassador Katherine Tai‘s post-conference statement that, “Members have worked to identify shared interests and build convergence in a collaborative way. Members are identifying new ideas and improvements that can help all of us more effectively resolve disputes and make the system more accessible at the same time.”

The U.S. government negotiating team including USTR Chief Agricultural Negotiator Doug McKalip deserves credit for holding the line on the issues in agriculture said Laudeman who also noted that support existing commitments is more widespread than in the past.

Opportunity to Advance Negotiations

“Many countries that agreed that India’s firm stance on Public Stockholding (PHS) was not productive in advancing agricultural negotiations at the WTO,” Laudeman said. “Notably, many Least Developed Countries recognized that India’s PSH program had negatively affected their own food security.”

Ambassador Tai went on to say that while the United States is disappointed that WTO members were not able to reach consensus on agriculture, “the United States will continue to engage with other Members to achieve meaningful outcomes on these important issues.”

“The message for our wheat farmers and our customers around the world is that the WTO is not broken yet,” Laudeman said. “And we are still standing up for commitments that have been made and creatively looking for progress in the way forward.”

March 6, 2024/by Steve Mercer

USW Announcements

Video: Longtime Arizona Wheat Industry Leader, USW Collaborator Al Simons to Retire in June

From working dairy cows in upstate New York to certifying seed in Minnesota to helping promote and export wheat in Arizona – t he career backstory of Allan “Al” Simons is fascinating. Simons, who has served as part-time Executive Director of the Arizona Grain Research and Promotion Council (AGRPC) since 1994, announced that he is retiring in June. Over the past three decades, Simons has regularly attended U.S. Wheat Associates (USW) meetings. He also represented Arizona’s interests on three USW Board Team trips, and has been an effective promoter of Desert Durum® wheat. But his connection to the wheat industry goes much deeper. He served as Executive Vice President of the Arizona Crop Improvement Association (ACIA) beginning in 1988 until his retirement from that organization in 2008. “I hope that my work in grain research and promotion have been helpful and appreciated,” Simons said. “I do know that, personally, collaborating with U.S. Wheat Associates over the years opened my eyes to the global aspects of agriculture. I am grateful for those experiences.” In this short video, we hear from Simons and learn about some of his history with wheat . . .

March 6, 2024/by Ralph Loos

Hard Red Winter, South Africa

Hamilton’s Visit to Angola Provides Look at Potential Market for U.S. Wheat

USW Vice Chairman Clark Hamilton, USDA Deputy Secretary Xochitl Torres Small and USW Regional Director for Sub-Saharan Africa Chad Weigand pause for a photo in Luanda, Angola, during a U.S. agribusiness trade mission in late February.

Exports to Angola are dominated by European Union (EU) and Russian wheat, but U.S. Wheat Associates (USW) Vice Chairman Clark Hamilton recently found evidence the emerging market holds good potential for wheat farmers back home.

Hamilton was in Angola in late February as part of USDA’s first-ever U.S. agribusiness trade mission to Luanda, the capital of Angola. Teaming with Chad Weigand, USW’s Regional Director for Sub-Saharan Africa, the Idaho farmer met millers and bakers. He also analyzed consumer trends.

A Market with Potential

Hamilton was able to imagine U.S. wheat’s place on menus and store shelves there. U.S. hard red winter wheat (HRW) wheat is used to make Lebanese-style breads that are popular in Angola. HRW is one of the six classes of U.S. wheat that could gain traction with importers.

“I believe there are a lot of positive things happening in Angola – there is a desire to build on industries other than oil, which has been the primary economic driver,” Hamilton said. “Importantly for future imports of grains, Angola has major plans to improve infrastructure, with rail being a major priority.”

Quality Will Be An Advantage

Right now, U.S. wheat struggles in the market because of pricing.

“But I think in the near future there could be more desire to use the high-quality wheat we grow for food products,” Hamilton said. “It is a growing country that has tremendous potential. For U.S. wheat, it is smart to be in an advantageous position when the market is ready.”

Milling Increasing in Angola

Examples of wheat flour on store shelves in Angola.

According to USDA’s International Agricultural Trade Report released in late 2023, wheat milling in Angola has been expanding since 2017. The country’s wheat production has not kept up, meaning it relies heavily on imports. In 2022, Angola imported 167 percent more wheat than in 2018. USDA reported that the EU has a 77% market share, while Russia’s share is 21%.

The U.S. wheat imports were valued at more than $3 million in 2019, USDA noted. U.S. exports to Angola have not been measurable since.

February’s trade mission to Angola was led by USDA Deputy Secretary Xochitl Torres Small. Representatives of the Kansas and Wisconsin departments of agriculture, and 16 U.S. companies and organizations joined the mission.

Participants conducted business meetings with potential buyers, received market briefings from USDA’s Foreign Agricultural Service (FAS) and made site visits.

March 5, 2024/by Ralph Loos

Korea, Philippines

Riding the K-Wave: USW Promoting Use of U.S. Wheat in Korean-Influenced Foods

More than a dozen wheat foods popular with consumers in South Korea were introduced to Filipino bakers and millers at USW’s Korea Bakery Workshop last summer.

Movies, music and the cream cheese garlic bun – only one is a baked good, but in a modern twist, each is part of U.S. Wheat Associates’ (USW) effort to grow global demand for U.S. wheat. It’s called the “Korean Wave,” or “K-Wave” for short. It represents the influence of South Korean pop culture on consumers in other parts of the world. Riding the K-Wave, USW has been able to create fervor for wheat-based Korean products in important markets like the Philippines, a top export market for U.S. hard red spring (HRS) and soft white (SW) wheat.

“We’ve seen an incredible influence from South Korea,” Joe Bippert, USW Assistant Regional Director for South and Southeast Asia, said. “Every Filipino seems to be watching Korean dramas. On those dramas, if the stars are not eating food, they’re talking about eating food. K-pop stars are shown eating – let’s say Blackpink Oreos – and suddenly you cannot find them on shelves in the Philippines. That’s the power of the K-Wave.”

Inserting U.S. Wheat into the Wave

USW’s strategy is to monitor consumption trends in markets and promote the quality of U.S. wheat for food products. The K-Wave requires watching Korean trends, as well as trends in markets influenced by the Korean market.

Exhibit No. 1: the cream cheese garlic bun.

“It was one of more than a dozen wheat foods we introduced to Filipino bakers and millers at our Korea Bakery Workshop last summer, and it has since become quite popular with consumers in the Philippines,” Bippert said. “Now you can see it in hotels, at restaurants and on grocery store shelves all across the country.”

Taking advantage of the power of the K-Wave is not a new approach for USW.

“We constantly look at trends in one market that we can translate over into different markets,” Bippert explained. “In recent years we’ve been able to do exactly that through some of our work in Korea. We also look to the future and what products are going to continue to drive the market forward.”

Particpants in USW’s Korea Bakery Workshop pose for a group photo. The purpose of the workshop was to introduce Filipino bakers and millers to foods that could be made with U.S. wheat.

K-Wave – The Basics

K-Wave has been successful in promoting South Korea’s culture, first in China and then in Japan. It touches various things, like fashion, language, and entertainment. It started to gain momentum in the late 1990s.

Today, mostly through social media, K-pop music acts, and popular films and television programs, the K-Wave has impact. It affects consumption patterns and popularity of Korean food in many southeast Asia countries.

Welcome to K-Wave

During COVID, USW conducted webinars in the Philippines focused on Korean wheat foods. Having seen the interest in Korean products, USW later utilized USDA’ s Agricultural Trade Program (ATP) funding to take Filipino bakers and millers to Korea. The goal is to help them learn about products and recipes they could take back to the Philippines.

In July 2023, USW’s offices in South Korea, the Philippines and Singapore teamed to jointly organize a Korean Bakery Workshop. The sessions were held at the Korea Baking School (KBS) in Seoul. Participants in the workshop were bakers and millers from the Philippines.

USW Seoul Food and Bakery Technologist David Oh leads a session during the USW Korea Bakery Workshop.

The theme centered on Korean culture in bakery production.

“We had four Korean master bakers give a presentation on 13 Korean bakery products made with U.S. hard red spring, hard red winter wheat (HRW) and soft white wheat,” explained USW Seoul Food and Bakery Technologist David Oh. Oh has conducted several baking, biscuit, and noodle production courses across the globe. “These were a combination of traditional products and trendy products that were popular with Korean consumers. The bakers creatively taught the participants the recipe formulation, step-by-step processes, and the secrets in producing high-quality Korean bread and cakes.”

Among the products introduced were the handcrafted chocopie (made with HRW and SW), the pandoro (made with HRS) the strawberry spongecake (made with HRS).

Will K-Wave Roll On?

There are no signs the influence of Korean pop culture will ease anytime soon.

“Squid Game 2” is currently in production. K-pop acts are all over the music charts. The K-drama genre is streaming on multiple. platforms. Korean cuisine is dominating the internet.

Meanwhile, USW staff in several markets will continue to look for opportunities to promote U.S. wheat in products caught up in the K-Wave.

“We’ve seen products really gain traction here in the Philippines, and we are seeing a lot of restaurants and cafes offer products made popular by the K-Wave,” Bippert said. “But we see U.S. Wheat’s impact, too. After one of our customers participates in a Korea Baking Workshop, then we see the products they learn about start showing up on the shelves in the Philippines.”

February 28, 2024/by Ralph Loos

Wheat Industry News

News and Information from Around the World Wheat Industry

Speaking of Wheat

“Every one-degree increase in global mean temperature is predicted to result in a six to 10 per cent decrease in wheat yields.” – Australia’s Grains Research & Development Corp.

NAWG Names Thompson Congressional Wheat Leader

NAWG President Brent Cheyne (R) presents the Wheat Leader of the Year Award to House Ag Committee Chairman Glenn Thompson.

NAWG Wheat Leader of the Year

The National Association of Wheat Growers (NAWG) awarded Chairman Glenn “GT” Thompson of Pennsylvania with its 2023 Wheat Leader of the Year Award for his work as Chair of the House Agriculture Committee. “On behalf of NAWG, I thank Chairman Thompson for the work he has done on behalf of wheat growers nationwide,” said NAWG President and Oregon wheat farmer Brent Cheyne, “The 2023 Wheat Leader of the Year Award is the highest honor wheat growers can use to recognize legislators, and it finds the most deserving recipient in Chairman Thompson.” NAWG also presented 19 Members of Congress with its Wheat Advocate Awards for their exceptional support of the wheat industry during 2023.

APHIS Reduces Karnal Bunt Regulated Area

On Feb. 14, 2024, APHIS issued a Federal Order (DA-2024-05) reducing the Karnal Bunt (Tilletia indica) regulated areas around eight fields in Maricopa and Pinal Counties to 0.2 miles. This action was based on a scientific analysis required under federal law and completed by APHIS, potentially allowing Desert Durum^® production in the newly unregulated area.

K-State Scientist Discusses Wheat Breeding Innovation

Gene editing, genetic modification, transgenic; ever wonder what those terms mean? Eduard Akhunov (photo above) with Kansas State University does, and he explains it all in the latest “Wheat’s On Your Mind” podcast from Kansas Wheat. Learn how powerful new tools like gene editing can transform the world of wheat breeding, and how science is leveraging ancient genetics to improve modern-day wheat.

Progress on Rapid Falling Number Test

Researchers are advancing on several fronts in their efforts to develop a new immunoassay rapid test for wheat falling number, a key quality factor, according to Washington State University and USDA Agricultural Research Service. Wheat with a low falling number has starch damage and must be sold at a discount because it reduces end-use quality. Beta testing of the new rapid tests is likely to begin in March. The new test should offer results in 5 to 15 minutes and is intended for grain elevators at first to test commercially grown wheat. The current falling number test protocol is prohibitive for point-of-sale use.

Climate-Resilient Crop Research in Australia

Australia’s Grains Research & Development Corporation (GRDC) has partnered with the Australian National University (ANU) and industry partners to invest in research to accelerate the development of climate-resilient crops. The three-year effort will focus on developing heat tolerant wheat genetics and determining what makes a wheat crop able to survive, grow and produce yields under high-temperature conditions. Read more here.

Wheat Food Donations Keep Growing

U.S. Wheat Associates tracks the volume of U.S. wheat donated by the government to food insecure countries, feeding programs, and to non-governmental organizations for monetization programs. To date in marketing year 2023/24, U.S. wheat donations stand at just under 406,000 metric tons (MT). In the five marketing years prior to 2023/24, U.S. wheat donations total more than 5.4 million metric tons.

February 22, 2024/by Steve Mercer

Foreign Agricultural Service, Trade Policy, USDA

Importance of Trade, Relationship-Building Discussed as Leaders Gather in Washington

U.S. Trade Representative Katherine Tai speaks at USDA's 2024 Ag Outlook Forum.

U.S. Trade Representative Katherine Tai spoke about free trade agreements at USDA’s 2024 Ag Outlook Forum, held Feb. 15-16 in Washington, D.C.

Agricultural trade – including topics tied closely to the work of U.S. Wheat Associates (USW) – was a major focus during the 100^th annual Ag Outlook Forum hosted Feb. 15-16 by USDA in Washington, D.C.

A panel discussion titled, “100 Years of U.S. Ag Trade; A Century of Growth, Innovation, and Progress” was the highlight of the first day. The panel featured speakers from USDA, the United Nations (UN) Food and Agriculture Organization (FAO), and the Peterson Institute for International Economics.

History of Free Trade

USDA Senior Economist Sharon Sydow presented a crash course on the history of trade liberalization. Her subjects ranged from the General Agreements on Tariffs and Trade (GATT) to the creation of the World Trade Organization (WTO) and expansion of bilateral and multilateral trade agreements.

“The historical perspective of her presentation showed the exponential growth in U.S. agriculture trade through these progressive measures,” said forum attendee USW Director of Trade Policy Peter Laudeman.

Global Food Assistance

Also on the first day, Food and Agriculture Organization of the United Nations (FAO) Deputy Director General Beth Bechdol pointed out that agricultural trade is critical to the nourishment and development of poor, food insecure countries. Looking to the future, Bechdol said she sees successful American agricultural trade as an essential component for fighting global hunger and poverty.

Importance of Trade

On the second day, several speakers highlighted the importance of agricultural trade. A keynote address by U.S. Trade Representative Katherine Tai addressed some of the recent free trade accomplishments that have eliminated barriers to agricultural trade. Additionally, she committed to continue fighting for American farmers in places where trade barriers remain.

Carlson Addresses the Philippines, Relationships

MaryKay Carlson, U.S Ambassador to the Philippines, was also in attendance and spoke on the importance of relationships for agricultural trade success. She highlighted the long-standing ties between the U.S. and the Philippines. Those ties have allowed that country to become the No. 2 export destination for U.S. wheat. Carlson noted the consistent quality of U.S. wheat and characteristics that make Filipino flour millers and bakers regular customers.

Relationship-building has also been a big part of the success the U.S. has enjoyed in the Philippines. USW recently helped the Filipino flour milling industry achieve renewed anti-dumping duties on imported Turkish flour to defend and maintain this trading relationship with U.S. wheat farmers.

February 22, 2024/by Ralph Loos

Commercial Sales, Market and Crop Analysis

USDA Outlook Forum Provides First Glimpse into 2024/25 U.S. Wheat Balance Sheet

As the southern hemisphere wheat harvest nears completion and world anticipates the next northern crop, many buyers, mill owners, and end-product manufacturers are considering purchasing decisions that will affect their businesses into the first quarter of marketing year 2024/25. With forward thinking in mind, USDA released its latest Grains and Oilseeds Outlook on Feb. 15, providing initial projections for U.S. wheat. Though subject to change, these projections help provide a baseline for future updates and a glimpse into the issues and opportunities that may emerge as the year progresses.

Preliminary Acreage, Production, and Use Outlook

The Grains and Oilseeds Outlook projected total grains and oilseeds planted area at 225.5 million acres (91.25 million hectares), down from 227.8 million acres (92.2 million hectares) last year due to lower farm prices. USDA forecasted 2024 total wheat area at 47.0 million acres (19.0 million hectares), down from 49.6 million (20.1 million hectares) in 2023 but above the five-year average of 46.4 million (18.7 million hectares). The January Winter Wheat and Canola Seedings report estimated winter wheat area down 6% to 34.4 million acres (13.9 million hectares), leaving 12.6 million acres (5.1 million hectares) for hard red spring wheat (HRS), white spring wheat, and durum. USDA expects combined spring wheats and durum area to be slightly lower. However, private analysts and traders feel HRS acres may remain steady to slightly higher if planting conditions are favorable.

Bar chart from USDA;s 2024 outlook shows wheat harvested area over the last 10 years.

USDA forecasts wheat area at 47.0 million acres (19 million hectares), down 5% year over year but sitting just ahead of the five-year average of 46.4 million acres (18.7 million hectares). Source: USDA Grains and Oilseeds Outlook.

Despite the lower total planted area, USDA’ outlook anticipates a 2% yield increase to 49.5 bu/acre (3.33 MT/hectare). Following record abandonment in 2023, USDA’s estimated harvested area of 38.4 million acres (15.5 million hectares) is up 3%. The combined impact of improved yield and lower abandonment due to improved soil moisture conditions is expected to boost production to 51.7 MMT from 49.3 MMT in 2023/24. With the inclusion of higher beginning stocks, U.S. wheat supply estimate sits 6% higher year over year.

USDA predicts a slight decrease in domestic consumption to 30.8 MMT, marking a year-over-year reduction of 272,000 MT. In contrast, USDA expects U.S. wheat exports to bounce back to 21.09 MMT in 2024/25 on increased supplies.

A Looser Balance Sheet to Come?

Over the last seven years, there has been a steady erosion of U.S. ending stocks, falling from the recent high in 2016/17 of 32.1 MMT to a low in 2022/23 of 15.5 MMT, demonstrating the tightening of the U.S. balance sheet and providing underlying support to U.S. wheat prices. U.S. stocks will end 2023/24 slightly higher that with the improved production outlook suggests continued reversal of the downward trend.

Bar chart from USDA's outlook shows a trend down, then up in U.S. wheat ending stocks.

USDA forecasts 2024/24 U.S. ending stocks to increase 16% to 20.9 MMT on higher production and beginning stocks. Despite the increase, ending stocks still sit 35% below the peak of 32.1 MMT in 2016/17. Source: USDA Grains and Oilseeds Outlook and February 2024 WASDE.

The current outlook casts a bearish tint on the upcoming crop year, but there is ample time between now and harvest for market conditions to change. For example, U.S. wheat total commercial sales and exports for 2023/24 sit at 17.6 MMT, 7% above last year’s pace and 89% of total projected exports. Crop conditions for winter wheat are much better than in the past few years but weather going forward will dictate final production.

USDA’s Prospective Plantings report, to be released on Mar. 28, and the May 2024 WASDE will provide detailed revisions for the 2024 U.S. wheat balance sheet, while Crop Progress Reports will provide updates on current crop conditions and planting progress. In the interim between harvests, world wheat markets will continue to search for new direction and shift based on emerging information. U.S. Wheat Associates (USW) will closely watch the crop and share additional information as the season progresses.

By Tyllor Ledford, USW Market Analyst

February 22, 2024/by Steve Mercer

Soft Red Winter, Sustainability

Watch Episode 4 of “Stories of Stewardship” Video Series

Nick Jorgensen‘s approach to farming in the 21st Century is simple and direct. “First and foremost, we are stewards of this land so that we can pass it on to the next generation where it’s better than it was when we received it,” Jorgensen, whose family farms in Ideal, South Dakota, says in Episode 4 of U.S. Wheat Associates’ (USW) “Stories of Stewardship” series.

Watch Episode 4 here:

USW’s new video series focuses on the sustainable practices applied by five farm families growing different classes of wheat across the range of conditions in the United States. They share a commitment to farm in ways that sustain economic viability to produce safe, wholesome wheat for the world while ensuring the land is passed on in better condition for future generations.

USW wants to thank Jorgensen; Tom Cannon of Blackwell, Okla., Ben and Stephanice Bowsher of Harrod, Ohio.; Art Schultheis of Colton, Wash.; and Aaron Kjelland of Park River, N.D. for sharing their Stories of Stewardship.

Future episodes will be released March 6, and March 20.

To learn more about sustainable U.S. wheat production, visit the USW website at https://www.uswheat.org/stories-of-stewardship/. USW is also a member of the U.S. Sustainability Alliance where you can see a fact sheet on wheat sustainability.

February 21, 2024/by Ralph Loos

Sustainability, USDA

Federal Conservation Programs Are Part of U.S. Wheat’s Stories of Stewardship

U.S. Wheat Associates (USW) has a responsibility to help the world’s wheat buyers, flour millers, bakers, and wheat food processors better understand how U.S. farmers produce higher-yielding, higher-quality wheat while using methods that are better for the planet we all share. Our new “Stories of Stewardship” focus provides specific examples of this commitment.

It is also important to understand that farmers and the federal government have been partners in conservation for decades. The 2018 Farm Bill maintained a strong commitment to voluntary, incentive-based conservation programs that have been utilized by wheat growers across the country and are expanding with the infusion of additional funding under the Inflation Reduction Act (IRA) of 2022.

The National Association of Wheat Growers (NAWG) has reported that between 2018 and 2021, wheat farmers entered over 7,500 contracts with USDA’s Natural Resources Conservation Service through the Farm Bill conservation programs. These include such practices as cover crops, reduced tillage, erosion control terraces, and grassed waterways. NAWG suggests the flexibility and local decision-making included in the Farm Bill conservation programs is vital to their success.

Image shows the front of the USDA building in Washington, DC, with Department of Agriculture shown behind a U.S. flag.

Farmers and the federal government have been partners in conservation for decades. The 2018 Farm Bill maintained a strong commitment to voluntary, incentive-based conservation programs that have been utilized by wheat growers across the country.

Effective Incentives

The Farm Bill conservation programs have a permanent budget, but the IRA provided an additional $18 billion for the programs. That extra funding represents an incentive for farmers and agribusinesses to implement green agriculture production methods and is being made available in tranches through 2026.

“Politico” reported in August 2023 that the agricultural industry is responding positively to the incentives. The article quoted a former senior director of government relations at the American Farm Bureau Federation (AFBF) saying the program’s popularity is based on its “voluntary, incentive-based approach” that he said allows for innovation.

Farmers Want Voluntary Conservation Programs

The demand for conservation programs among U.S. wheat farmers is strong according to testimony to Congress on Title II Conservation Programs in 2022 by then NAWG President Nicole Berg.

“Wheat growers and other crop, livestock and forest landowners are seeking assistance through the voluntary conservation programs and there is a backlog of more growers seeking assistance than funding (and staff time) available,” Berg said. “We recognize that the Inflation Reduction Act added a significant amount of funding to these programs and hopefully that backlog will be addressed, and we urge Congress to continue the commitment to voluntary, incentive-based conservation programs in the next Farm Bill.”

Despite predictable political opposition to elements of the IRA agricultural conservation programs, there is growing support for making additional conservation funding a permanent part of farm legislation. “Agri-Pulse” recently reported that under the budget rules used to pass the IRA, none of the money can be spent after 2031, and there is no lever to increase long-term funding levels.

Pressure to Do It Well

“We’ve got resources to do good things right now, but at the same time, we’re under some pressure to do that well and to get those resources put out into the field in a way that obviously works for the environment, works for our customers – the producers – and works for the taxpayer,” USDA Farm Production and Conservation Undersecretary Robert Bonnie said.

USW is encouraged by the on-going partnership between U.S. agriculture, including wheat farmers, and the federal government aimed at conserving farms and farmland and the gifts of soil, water, and seed. We will continue to share this and many other “Stories of Stewardship” with our customers everywhere.

February 16, 2024/by Steve Mercer