News and Information from Around the U.S. Wheat Industry
Speaking of Wheat
“Overall, U.S. producers export more than 20 percent of what they produce, with numerous commodities exporting more than 70 percent of U.S. production. This underscores the importance of trade promotion programs contained in the farm bill … For U.S. producers to remain competitive in international markets in the face of high and rising foreign subsidies, tariffs, and non-tariff trade barriers of countries such as China, further investments in these [export market development] programs may well be required.” – U.S. House Committee on Agriculture “Fiscal Year 2024 Budget Views and Estimates Letter to the House Budget Committee.”
Reuters: Global Commodity Markets Remain Tentative
Reuters journalist Karl Plume on March 13 wrote that a patchwork of fixes and increased crop plantings around the world to counter the impact of war in Ukraine on global grain supplies are not enough to ward off further risks of disruption. “The world has had some time to patch some holes,” said Dan Basse, president of AgResource Co in Chicago, in the article. He cited larger-than-anticipated Russian wheat exports and the grain export corridor deal that allowed grain to be exported from Ukraine’s Black Sea ports. “If we don’t have another supply shock somewhere, the world can get by on the diminishment of Ukrainian grain,” said Basse. “But it’s tenuous. Things have to go right.” Read the entire story here.
Analyst: Wheat Prices Do Not Match Market Factors
Todd Hultman, lead analyst with DTN/Progressive Farmer, is perplexed by wheat prices relative to the very tight global supply situation and disruptive nature of the Russia/Ukraine conflict. In a recent article he compared the market situation today to 2013 when supply concerns pushed U.S. wheat prices to a level that, after factoring in inflation, would be higher than current prices. “You probably won’t be surprised to hear that, among the big three crops over the past 23 years, wheat prices have the least correlation to their supply situations,” Hultman wrote. “It pains me to say I don’t have a better explanation of why wheat prices are this low [relative to prices in 2013] …” Read Hultman’s entire analysis here.
Best Wishes to Terry Herman
USW Chief Technology Officer Terry Herman retired from U.S. Wheat Associates (USW) March 10 after 30 years of service. Over those years, Terry led USW’s evolution to digital communications and management systems. He built data base infrastructure essential for our work with USDA’s Foreign Agricultural Service and reporting annual U.S. crop quality data. Terry created and maintained USW’s website www.uswheat.org for many years. And as our company’s “computer guy,” he kept his colleagues updated with the latest hardware and software. Most recently, he transitioned data management to “the cloud” and, in a very timely effort, introduced “Microsoft Teams” collaboration software to USW just weeks before the pandemic started. Everyone at USW thanks Terry for his service and friendship and wishes him well in retirement!
Wheat Growers Play Role in Climate Policy Debate
Red River Farm Network recently reported on the implications of what it called the changing dynamics surrounding climate change and farming. Ada, Minn., farmer Tate Petry, a member of the National Association of Wheat Growers (NAWG) Environment Subcommittee, told the network that the wheat industry is challenged because it is so varied. “We have growers in Washington, Idaho and Oklahoma with practices that are so much different than what works for us, so that’s what we work on in NAWG, determining the implications of certain policy decisions growers and different classes of wheat.” Petry said the focus on climate-smart agriculture brings to the forefront the positive things already happening on the farm. Listen to the interview.
New NAWG Officers Elected
Brent Cheyne was elected NAWG President for 2023/24. Brent farms with his son Rodney near Klamath Falls, Ore., where they raise wheat, barley, oats, alfalfa, and cattle. In 2011, Cheyne served as president of the Oregon Wheat Growers League before accepting the position of NAWG Secretary in 2015. The newly elected slate of officers include: Keeff Felty from Oklahoma, Vice President; Pat Clements from Kentucky, Treasurer; Jamie Kress from Idaho, Secretary; and Nicole Berg from Washington state, Past President. Congratulations to these wheat farmer national leaders. 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.