US Increases Wheat Imports, Despite Big Domestic Supplies

By Tom Polansek

Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--U.S. farmers suffered a minor blow this week when government officials raised the forecast for wheat imports, despite plentiful supplies of home-grown grain.

Hog producers in the southeast are shipping in more feed-quality wheat from South America and Europe because it is cheaper than transporting corn from the Midwest, traders said. The loss of business stings U.S. farmers eager to sell their grain, but analysts say the increase in imports shouldn't weigh on U.S. futures prices because it is relatively small.

The U.S. Department of Agriculture, in a monthly supply-and-demand report, raised the estimate for 2009-10 wheat imports by 5 million bushels from January to 115 million bushels. By comparison, the U.S. grew 2.2 billion bushels of wheat for the crop year that runs through the end of May.

Increased wheat imports are part of "a very unique situation that is isolated to the east coast," said Greg Wagner, senior commodity analyst at AgResource Company, an agricultural advisory firm with contacts in cash markets around the world. "In the whole scheme of things, it's not something that is going to be widespread," he said.

The USDA did not raise its forecasts for U.S. wheat exports or other uses in the report, so inventories, which were already at a 22-year high, expanded even more. Producers, particularly of lower-quality soft red winter wheat, have struggled to find a home for their grain amid stiff competition for export business.

The increase in inventories was "not an encouraging thing for a wheat producer in Ohio or the United States," said Dwayne Siekman, executive director of Ohio Wheat Growers Association. Ohio is the country's top producer of SRW wheat, and the large supply depresses local cash prices, he said.

U.S. corn supplies are also comfortable. Ending stocks are at a four-year high, and farmers harvested a record crop for 2009-10, according to the USDA. Both wheat and corn can be used for animal feed.

The increase in wheat imports is "simply a matter of economics," Wagner said. Cheap ocean freight rates help encourage foreign purchases.

The USDA's forecast for increased imports confirmed chatter in the wheat markets about shipments of Brazilian wheat into the southeast for use as hog feed, traders said. The wheat is thought to have gone to Wilmington Bulk LLC, a North Carolina-based consortium representing several large hog and poultry operations in the region.

A spokesman for one of its principle owners, Murphy Brown LLC, did not return a call for comment. Murphy Brown is a subsidiary of Smithfield Foods (SFD), the country's largest hog producer.

"It pencils in," Wagner said. "You get very cheap wheat out of Brazil and bring it up the east coast and off load it and mix it in rations for hogs."

However, it does not look economically sustainable for the U.S. to continue importing wheat when comparing corn and wheat prices from various locations, according to U.S. Wheat Associates, a trade group focused on promoting U.S. wheat exports. Wagner agreed it would be surprising to see USDA increase its import estimate again.

There have been times in the past when foreign feed wheat, particularly from South America, has been offered at a "very low price" to U.S. southeast ports because there were no local buyers for it, said Vince Peterson, vice president of overseas operations for U.S. Wheat Associates. Brazil, Argentina and other South American grain-producing countries "have relatively little storage capacity and need to move wheat out to make room for soybeans and other crops still to harvest," he said.

Despite the government's increased estimate, U.S. wheat imports are still in line with recent years and below what they were last year. The U.S. imported 127 million bushels of wheat in 2008-09 and 113 million bushels in 2007-08.

-By Tom Polansek, Dow Jones Newswires; 312-341-5780; tom.polansek@dowjones.com

House Agriculture Chairman Peterson Named Wheat Leader

House Agriculture Committee Chairman Collin Peterson (D-Minn.) was presented Monday with the Wheat Leader of the Year Award, the wheat industry’s highest public service award.

As Chairman, Peterson’s work touches nearly every aspect of agricultural policy. In the past year, he has worked intensely on climate change, food safety and derivative legislation to ensure bills before the House take into account the unique nature of agriculture and the needs of agricultural producers. He has also spearheaded a bill to enhance agricultural trade with Cuba, which is an important priority of the wheat industry. Peterson was previously selected for the Award in 2007 for his efforts to finalize the 2008 Farm Bill, implementation of which is ongoing.

“Chairman Peterson never fails to go to bat for agriculture when push really comes to shove,” said Karl Scronce, NAWG president and a wheat producer from Klamath Falls, Ore. “We are proud to name him our Wheat Leader twice in just three years because he really does embody the agriculture voice on the Hill – and that’s a voice that’s desperately needed.”

He was given the award by Scronce at a joint meeting of the National Association of Wheat Growers and U.S. Wheat Associates Boards of Directors.

“We are proud to give this award to our own representative, and proud that our state has produced one of agriculture’s most notable champions,” said Erik Younggren, NAWG secretary-treasurer and a wheat producer from Hallock, Minn.

At the meeting, Peterson addressed growers about his efforts to help his fellow Members better understand agriculture when passing food safety legislation and looked ahead to challenges related to the 2012 Farm Bill. Peterson said he plans to start with hearings as early as March or April of this year.

“We need to be looking at how to make this work better, how to have systems that we can explain to our urban colleagues that make sense to them,” he said. “That’s part of what I want to do over the next year.”

The Wheat Leader of the Year Award is given annually by NAWG to one Member of Congress based on his or her demonstrated commitment to the well-being and goals of the wheat industry.

Previous Wheat Leaders include Sen. Max Baucus (D-Mont.) (2008 and 2002); Rep. Stephanie Herseth Sandlin (D-S.D.) (2006); Rep. Jo Ann Emerson (R-Mo.) (2005); Rep. Jerry Moran (R-Kan.) (2004); Sen. Conrad Burns (R-Mont.) (2003); Rep. Larry Combest (R-Texas) (2001); Rep. George Nethercutt (R-Wash.) (2000); and Sen. Pat Roberts (R-Kan.) (1999).

Representatives from NAWG member-states will distribute other public service awards given by NAWG on behalf of the wheat industry as they visit Hill offices in the coming days.

The Wheat Advocate Award is given annually to Members of Congress who have demonstrated support for the wheat industry above and beyond the norm.

Those receiving the 2009 Wheat Advocate Award include:

Sen. Max Baucus (D-Mont.)
Sen. Saxby Chambliss (R-Ga.)
Rep. Rosa DeLauro (D-Conn.)
Sen. Blanche Lincoln (D-Ark.)
Rep. Walt Minnick (D-Idaho)
Rep. Jerry Moran (R-Kan.)
Rep. Zack Space (D-Ohio)
Sen. Debbie Stabenow (D-Mich.)
Sen. John Thune (R-S.D.)
The Friend of Wheat Award is also given annually by NAWG for superior action in support of the goals and policies of the wheat industry. This award is given to Congressional and administrative staff members who have demonstrated support for the wheat industry above and beyond the norm.

The 2009 Friend of Wheat Awards were awarded to:

Aleta Botts, House Agriculture Committee
Aaron Popelka, Rep. Jerry Moran (R-Kan.)
Melissa Porter, Senate Commerce, Science and Transportation Committee
John Drake, Senate Commerce, Science and Transportation Committee
Catharine Ransom, Sen. Max Baucus (D-Mont.)
Fitz Elder, Minority Clerk, Senate Appropriations Committee, Agriculture Subcommittee
Galen Fountain, Senate Appropriations Committee, Agriculture Subcommittee
Recipients of the NAWG awards are approved by the NAWG Board of Directors and the recipient’s state wheat association, when applicable.

Ohio Farm Couple Featured on National Television

CONTACTS: Mike Deering, U.S. Grains Council Director of Communications, at 202-789-0789
Steve Mercer, U.S. Wheat Associates Director of Communications, at 202 463-0999
Natalie Lehner, Ohio Corn Marketing Program Director of Communications, at 740-201-8088

WASHINGTON, D.C., January 5, 2010 – America’s Heartland, a television program dedicated to connecting rural and urban America, traveled overseas along with the U.S. Grains Council and U.S. Wheat Associates to understand the vital role U.S. farmers play in feeding the world. Dave and Sue Roehm, farmers from Leesburg, Ohio, traveled with the film crew in August to Egypt and Morocco where they saw the investments in their producer checkoff programs hard at work. With sponsorship from the Ohio Corn Marketing Program, Dave and Sue were able to show how global their fourth generation family farm really is.

“This trip was a big revelation to me. It was phenomenal the impact export market development programs orchestrated by the Council and U.S. Wheat are having overseas,” said Sue. “When I look at our corn and wheat in Ohio, I will have a whole different perspective. My family’s harvest is truly improving lives thousands of miles away.”

Being from Ohio, Dave and Sue did likely see their harvests in feedlots and bakeries across Morocco and Egypt.

“With our farm’s location, a lot of our harvest goes to the East Coast or down the Ohio River to export markets,” said Dave. “I have been actively involved with the Council for a few years and was fully aware of the efforts my checkoff dollars were funding. However, it’s still amazing to see it up close, one-on-one. I realized that America is not only the land of freedom but the land of opportunity. The Council and U.S. Wheat are truly providing opportunities for U.S. farmers and global end-users that really didn’t exist before.”

This episode (#518) of America’s Heartland will air this week on RFD-TV on Wednesday, Jan. 6, and again on Sunday, Jan. 10. The show also airs on various PBS stations throughout the country. Check your local listings for air times and dates. The program is also available online at http://bit.ly/4XfuQ1.

Five honored at annual Ohio Grain Farmers Symposium

LIMA, Ohio – State Senator Bob Gibbs, Rep. Allan Sayre, Sen. Karen Gillmor and Sen. Capri Cafaro recently received Legislator of the Year awards at the 2009 Ohio Grain Farmers Symposium. The annual award is given to legislators who have demonstrated significant involvement to advance Ohio’s agriculture industry.

In addition, Dr. Jim Beuerlein of The Ohio State University was given a Distinguished Service Award for his long-time work with grain farmers in the Buckeye State.

The awards were given by the Ohio Corn Growers Association, Ohio Soybean Association and Ohio Wheat Growers Associations at the first annual Ohio Grain Farmers Symposium December 17th in Lima. Hundreds of farmers, agribusiness affiliates and media outlets witnessed the award presentation that demonstrated the bi-partisan effort of lawmakers to secure the future of Ohio agriculture.

Gibbs, a Republican from Lakeville and Sayre, a Democrat from Dover, serve as vice chairmen of the agriculture committees in their respective chambers. Gibbs and Sayre sponsored legislation that placed Issue 2—which called for the creation of the Ohio Livestock Care Standards Board--on the Ohio ballot. Voters showed overwhelming support for the board at the polls in November.

“These men continually demonstrate a passion for Ohio agriculture,” said Ohio Corn Growers Association and Ohio Wheat Growers Association Executive Director Dwayne Siekman, speaking on behalf of the symposium. “If it weren’t for their dedication and commitment, Issue 2 may have never made it to the November ballot.”

Sen. Karen Gillmor a Republican from Tiffin and Sen. Capri Cafaro, a Democrat from Hubbard, were honored for their work on Senate Bill 131, which benefits the bioproducts industry in Ohio. Gillmor is the bill sponsor and Cafaro is the co-sponsor.

“Senate Bill 131, if passed, will apply state BioPreferred purchasing preferences to bioproducts for state agencies and public colleges and universities,” said Ohio Soybean Association Executive Director Jamie Butts.

The program outlined in Senate Bill 131 would be modeled after the federal BioPreferred program and would require state agencies and institutions of higher education to give purchasing preference to bio-based products when a bio-based alternative is available.

“Our organizations have endorsed this legislation because of the many bioproducts that are available in the marketplace and made from our renewable resources,” Butts added. The Distinguished Service award was given to Dr. Beuerlein for his years devoted to the area of production research; Beuerlein recently announced he is retiring from The Ohio State University and after decades of working with Ohio’s grain commodity organizations.

In addition, Beuerlein has supervised the Ohio Soybean Performance Trials, Ohio Soybean Inoculation Trials and Ohio Wheat Performance Trials. “During Beuerlein’s tenure with OSU he placed a major emphasis on reducing the cost of production and increasing yield through the use of balanced management systems,” said Mark Wachtman, president of the Ohio Wheat Growers Association. “He has been a great benefit with educating producers at industry workshops and field days and has developed many educational materials.”

About Ohio Wheat Growers Association
Founded in 1993 and incorporated as a non-profit organization in 1998, Ohio Wheat Growers Association educates and assists producers, industry representatives and legislators to improve the profitability and marketing strategies for the Ohio wheat industry.

About Ohio Corn Growers Association
The Ohio Corn Growers Association represents the interests of more than 20,000 corn growers throughout the state. OCGA works in Washington and at the Ohio Statehouse to ensure that government participation in legislation is beneficial to Ohio's growers. Farmers provide food, feed and fuel to power Ohio. For more information, go to http://www.ohiocorn.org.

About Ohio Soybean Association
The Ohio Soybean Association is governed by a 24-member volunteer farmer board dedicated to education and promotion, as well as to uniting producer interest through support of legislative activities beneficial to the Ohio soybean industry. For more information, visit www.soyohio.org.

 

ARS releases first hard winter wheat varieties for eastern U.S.production

By Stephanie Yao

The first hard winter wheat varieties bred and developed for production in the eastern United States have been released by the Agricultural Research Service (ARS).

NuEast, a hard red winter wheat, and Appalachian White, a hard white winter wheat, were bred by ARS plant pathologist and geneticist David Marshall, research leader of the Plant Science Research Unit in Raleigh, N.C.

Soft winter wheats, which are used to make pastries, cookies and biscuits, are typically grown in the eastern United States. Hard wheats, on the other hand, are best suited for making bread. Hard wheat has not traditionally been a successfully grown crop in the eastern states because the area's humidity increases the incidence of disease in the field. This in turn affects yield and the quality of the grain.

But NuEast addresses these problems. In field tests, NuEast had significantly higher grain yield than the check varieties over four years of testing. It also showed moderate reaction to powdery mildew but was more resistant than some check varieties. NuEast's resistance to leaf rust is good, and it is moderately resistant to stem rust, including Ug99 races.

There are very few hard white wheats grown and produced in the United States. The main challenge with growing hard white wheat under humid conditions in the eastern states is the pre-harvest sprouting typically associated with white wheats, according to Marshall.

Throughout six locations and over three years of testing, Appalachian White had significantly higher yield than the only other variety that could be considered acceptable when grown under weather conditions in the eastern states. Appalachian White also showed a higher level of resistance to powdery mildew, stripe rust, leaf rust and Hessian fly.

According to Marshall, the key to developing a hard wheat for eastern U.S. production is the ability to produce consistently good grain quality, resulting in good milling and baking characteristics when grown in a humid environment.

Millers and bakers that are part of the North Carolina Organic Bread Flour Project, an initiative supported with funding from the North Carolina Tobacco Trust Fund and Santa Fe Tobacco, have been testing the wheats since their release. So far, the feedback has been positive.

ARS is the principal intramural scientific research agency of the U.S. Department of Agriculture.

Gov. Daniels, Gov. Strickland open new section of corridor for trade

Ohio Ag Connection

Governor Mitch Daniels Thursday was joined by Ohio Governor Ted Strickland at the Indiana-Ohio state line to open new sections of the U.S. 24 Fort to Port highway, fulfilling a commitment by both states to "meet at the line in 2009" and marking another step toward connecting Fort Wayne with the Port of Toledo.

The Fort to Port project is part of Governor Daniels' Major Moves jobs and transportation program and will eventually connect with the Hoosier Heartland Corridor to provide access to cities and towns across north central Indiana to major highways and transportation outlets.

"The waiting is over. Thanks to our Major Moves transaction, a safer road and countless new jobs are finally on their way, without a dollar of new taxes or new borrowing. Hoosiers are showing America how to solve big problems and protect taxpayers at the same time," said Daniels.

The 2.9-mile section of new highway and new interchange is the first section to be open to traffic in Indiana. The new section will immediately connect at the state line to a 45-mile section extending to the east side of Napoleon, Ohio. In all, 11.5 miles of divided, limited-access highway, including three new interchanges, east of I-469 to the Ohio state line will be built.

The second section of the Indiana project is currently under construction and the final two sections will be placed for contract bid in 2010 and completed in 2012. The total estimated cost for the project is $170 million.

The Ohio corridor is a total of 58.5 miles and is being constructed in eight phases extending east from the state line to Toledo, Ohio. Five phases are complete with the remaining three phases scheduled to be completed in 2012. The total estimated cost of the project is $402 million.

"We are modernizing this highway not only to create a safer route of travel between these two cities, but also to establish a multi-modal corridor where goods can move efficiently," said Governor Strickland. "The need for Ohio and Indiana to be strong partners in transportation has never been greater. These projects are key pieces in linking and strengthening the economies of both states."

In October 2008, Daniels broke ground on construction of the Hoosier Heartland Corridor, a 31-mile, four-lane, limited-access divided highway between Lafayette and Logansport. The project is scheduled to be completed three years ahead of schedule in 2013. The highway will provide greater and safer access from Lafayette to Fort Wayne, where it will link with the Fort to Port corridor, allowing direct access from central Indiana to the deep water ports in Toledo. It will also connect I-65 in Lafayette to I-69 in Fort Wayne via a multi-lane highway.

Vote YES on State Issue 2 Tuesday. Here's why:

Election Day is almost here, which means that in just days Ohio voters will head to the polls to cast their ballots for State Issue 2, a measure to create the Ohio Livestock Care Standards Board.

Voting YES for Issue 2 on November 3 makes sense because a YES vote will:

- Protect Ohio’s $93 billion farm economy and the one million jobs it provides.

- Ensure farmers in Ohio can continue to maintain excellent care of their animals and produce safe, local, affordable food.

- Create a bipartisan board of 13 Ohio experts in food safety, veterinary medicine, academia and farming to make decisions about agriculture in the state.

- Discourage out-of-state extremist groups from bringing unworkable regulations to Ohio’s farms

- Benefit livestock and grain farms of all sizes by keeping control of farming in the Buckeye state.

- Ensure that farm animal care decisions also consider food safety, food affordability, biosecurity and disease prevention.

- Make Ohio a leader on farm and animal care issues.

For more information about State Issue 2, please visit www.safelocalohiofood.org.

Record wheat yields on tap for Ohio

http://www.agweekly.com/articles/2009/10/12/news/markets/markets87.txt

By Brian Hoops Monday, October 12, 2009

On Friday, October 9, the USDA released the monthly supply/demand report for October. The USDA estimated corn production at 13.018 billion bushels, up slightly from last month and 8 percent higher than 2008.

Based on conditions as of October 1, yields are expected to average 164.2 bushels per acre, up 2.3 bushels from September and 10.3 bushels above last year. If realized, this yield will be the highest on record and total production will be second only to the record set in 2007.

Yield forecasts remained unchanged or increased from last month across the Corn Belt, Great Plains, and Ohio Valley where warm, dry weather during much of September helped push the late-developing corn crop towards maturity. Light frost was reported in parts of the northern tier of the Great Plains and Corn Belt in late September. However, temperatures were not considered low enough to terminate crop growth. Based on administrative information, acreage updates were made in several States and farmers now expect to harvest 79.3 million acres for grain, down 1 percent from the September forecast but 1 percent above 2008.

The sharp jump in the U.S. average corn yield clearly has negative implications as the market likely will be anticipating further increases in future reports. However, the yield increase came at the hands of an unexpected reduction in the planted area, allowing the actual crop size to not increase much from last month. This allowed 2009/10 U.S. corn ending stocks to remain essentially unchanged, as well. From that perspective, despite the higher yield, there really was not a structural change to the U.S. balance sheet.

A yield increase in October, following a September increase tends to result in further increases and has essentially guaranteed a yield no lower than the September estimate, which was 161.9 bushels/acre. The last 2 times USDA raised yields in September and October, 2004 and 2005, the final yield proved higher than the October estimate.

Soybean production was forecast at a record high 3.25 billion bushels, up slightly from the September forecast and up 10 percent from last year. Based on October 1 conditions, yields are expected to average 42.4 bushels per acre, up 0.1 bushel from last month and up 2.7 bushels from 2008. If realized, this will be the third highest yield on record. Compared with last month, yields are forecast higher or unchanged in all States except Michigan, Mississippi, Ohio, and New York.

The largest decrease in yield from the September forecast is expected in Mississippi where persistent rain during the last two weeks of the month increased the potential impact of disease. Increases of 2 bushels are expected in Kentucky, Louisiana, Oklahoma, and Virginia. If realized, the forecasted yield in Alabama, Georgia, and Nebraska will be a record high and the forecasted yield in Arkansas, Kentucky, North Carolina, and Pennsylvania will tie the previous record high. Area for harvest in the U.S. is forecast at 76.6 million acres, down slightly from the previous estimate but up 3 percent from 2008.

The most notable supply-side impact on soybeans came from the known 28 million bushel increase in beginning stocks, but was almost completely offset by a 25 million bushel increase in exports, resulting in 2009/10 U.S. soybean ending stocks moving up just 10 million bushels to 230 million.

Even though the U.S. average yield moved up just 0.1 bushel/acre this month to 42.4, the historical implications following an increase in September and October clearly point to the potential for further yield increases down the road. As seen, years with yield increases in each of these months tend to be followed by additional yield increase, as well.

The USDA increased U.S. wheat ending stocks to 864 mb, well above the 743 mb estimated in September as the USDA increased ending stocks by 121 mb due to a combination of a 26 million bushel increase in total supplies and a 95 million bushel reduction in total demand. World stocks remain huge at 186.70 mts.

Word on Wheat: Speaking Out on the Need for Research

Dr. Jim Peterson

Last month, we lost a great leader for the world wheat industry and spokesman for agricultural research, Dr. Norman Borlaug.

As a wheat breeder, Dr. Borlaug’s work and leadership through the Green Revolution saved hundreds of millions of lives. His championship of agriculture technology and work in Africa later in life has saved many millions more. Maybe as important, Borlaug inspired young people throughout the world to dedicate their lives to improving agriculture and food security.

Dr. Borlaug’s leadership will be sorely missed around the world, and there is no one person that can step in and fill his role as spokesman for wheat and world agriculture. Instead, we will need many individuals to step forward and contribute their skills, knowledge, leadership and passion for making a difference through agricultural research and production. We need more and better spokespeople for our work and our industry.

As a U.S. wheat breeder, I am excited by new and vigorous leadership at USDA including Dr. Raj Shah as undersecretary for research, education and extension and Dr. Roger Beachy the President’s nominee to be the first director of the National Institute of Food and Agriculture. Dr. Shah and Dr. Beachy will both bring new energy, passion and credibility to their positions as leaders and spokesmen for agricultural research. New ideas, new priorities and new scientific approaches are needed if we are to effectively attack complex problems facing U.S. agricultural production.

Also needed, though, is new money. Both USDA’s Agricultural Research Service and the new NIFA need an infusion of funds if we are to address critical issues ranging from wheat rust diseases to food security in the face of climate change. More money has to come to the table for both competitive grants and core research if we are to keep the agriculture industry productive and profitable. And, we have to be smarter and better coordinated with the money we do have.

In collaboration with NAWG, and with the support of the milling and baking industries, we have lobbied vigorously for wheat industry research priorities with some achievements this appropriations season.

House and Senate conferees decided on $262.482 million for competitive grants through USDA’s new Agriculture and Food Research Initiative, 30 percent more than competitive grants received in the 2009 fiscal year. The conference report also includes $1 million in new funds for Ug99 research at ARS and maintains funding for critical ARS wheat research efforts that had been targeted for cuts or redirections.

Also important has been continued U.S. funding for wheat research at CIMMYT, the International Maize and Wheat Improvement Center, through the U.S. Agency for International Development. We have worked to raise awareness of its importance and contributions of CIMMYT to the U.S. wheat industry and promote funding for CIMMYT to address world wheat production issues, including Ug99.

In this time of tight budgets, these are important wins. However, much more is clearly needed in light of a recent report from the United Nations saying we will need to produce 70 percent more food by 2050 to feed the 2.3 billion more people who will be on our planet. This is a phenomenal and daunting challenge facing our country and the world.

We have lost our leader and spokesman in Dr. Borlaug. Drs. Shah and Beachy can’t do it alone. We need leaders from throughout the industry to step up, to advocate for wheat and production agriculture and to explain their importance to policy makers and the public.

The world’s food supply is depending on it.

Peterson is a wheat breeder at Oregon State University and the chairman of the National Wheat Improvement Committee. Visit NWIC online at http://cropandsoil.oregonstate.edu/wheat/reports/NWIC/

Approval of GMOs could solve animal feed shortage in the EU

Story reprinted from The Financial Times

After farmers' groups calling attention to the fact that they are facing a "serious shortage" of livestock feed because of the EU's zero tolerance of unapproved GMOs in imported feed and foodstuffs, EU Agriculture commissioner Mariann Fischer Boel told Agriculture ministers that breaking the logjam of GMO applications would throw a lifeline to dairy and pig farmers.

Opposition from a handful of EU member states has repeatedly stalled the final approval of GMO products that have otherwise been cleared by the European Food Safety Authority, the EU's scientific advisory arm.

The UK and the Netherlands, supporters of GMOs, were among a group of eight member states that expressed support for Ms Fischer Boel's remarks, according to a person involved in the discussions. Austria, a GMO opponent, and Poland expressed scepticism.

Copa-Cogeca, the farmers' group, says non-GM feed will add almost €1 billion to the cost of raising livestock this year.

The EU imports nearly two-thirds of the 33.5 million tonnes of the soyabean meal used by the food and livestock industry annually.

Some 200,000 tonnes of US soyabeans have been blocked at EU ports this year because they contained trace amounts of two varieties of GM maize that have been declared safe by the commission’s scientific arm, but not yet approved by member states. The situation has become more severe this year because a drought in Argentina, one of the EU's largest suppliers, has cut its soyabean production.

“If we don’t solve the problem of zero tolerance shortly, then we will have to stop the imports altogether,” said Klaus-Dieter Schumacher, president of Coceral, the trade group that represents Europe’s cereal and foodstuff makers.

The commission says continued resistance to GMOs could see European farmers lose market share to imported GM-fed meat. “The worst case scenario is that eventually it becomes so expensive to import protein that our own guys go out of business and we end up importing meat from countries fed on the same GMOs not approved for use here,” a commission official said.

Ms Fischer Boel’s comments came as dairy farmers rallied in Brussels, demanding more support amid a prolonged slump in milk prices. France and other countries have also repeatedly asked for financial aid for pork producers, arguing that they are suffering from low prices. Commission officials have indicated that they are unable to provide more financial assistance after directing billions of euros in aid to the sector through emergency payments and market interventions.

Copyright 2009 The Financial Times

http://greenbio.checkbiotech.org/news/fischer_boel_gmos_approval_could_solve_animal_feed_shortage

OSGMP, others join The Hand That Feeds U.S. coalition

The Hand That Feeds U.S. coalition announced this week that the National Association of Wheat Growers, the Ohio Small Grains Marketing Program and other organizations have joined its ranks, and that growers can now sign up online to receive updates about the campaign’s progress.

Since launching on May 11, the coalition has added NAWG, the Agricultural Retailers Association, American Agri-Women, Crop Insurance Professionals Association, Growth Energy and Texas Grain Sorghum Producers to its broad list of funding members. The coalition has also continued to win the acclaim of rank-and-file farmers.

A new section of the campaign’s Web site - Get Involved - gives those farmers a way to participate with the group by signing up to become a coalition member, receive regular campaign updates and even contribute to the cause.

The Hand That Feeds U.S. is aimed at filling the information vacuum between everyday farmers and urban reporters that has long plagued the agricultural industry.

Activities the coalition has already undertaken include development of an interactive Web site; release of a regular e-newsletter; coordination of face-to-face briefings between farmers and reporters; and institution of a rapid response program designed to answer critics.

The project is an educational spin-off of Farm Policy Facts, a highly successful communications effort focusing on the importance of strong farm policy. NAWG has participated with Farm Policy Facts since its inception in 2007.

To learn more about The Hand That Feeds U.S., visit www.thehandthatfeedsus.org

Monsanto Invests in Wheat through WestBred Acquisition

Wheat is one of the world’s most vital crops – yet it has suffered from a lack of investment in technology. As a result, the productivity of wheat acres continues to fall behind other major row crops like corn, soybeans and cotton.
 
Over the last several years, there has been a growing acceptance and discussion around the need for technology investment in wheat in order to meet future demands. In 2009, wheat organizations in the United States, Canada and Australia outlined their support for more efficient, sustainable and profitable production of wheat around the world – including their thoughts on the commercialization of biotechnology in wheat.
 
"The U.S. wheat industry welcomes the announcement today by Monsanto that it will restart its investment in research on development of biotechnology traits in wheat," said Ohio Wheat Growers Association and Ohio Small Grains Marketing Program Executive Director Dwayne Siekman. "The research challenges facing wheat are well known, as is the importance of this crop to world food supplies. This announcement comes at a time when basic research into agronomic improvements to wheat is critically needed."
 
Monsanto released the following in a press release:
 
Through Monsanto's acquisition of WestBred, LLC, Monsanto sees an opportunity to bolster the sustainability of wheat by helping farmers improve yields and reduce input resources. Monstano states the combination of technologies – like drought tolerance, herbicide and pest resistance, as well as improved-yield traits – and WestBred’s breeding expertise in wheat can meaningfully address some of the productivity challenges facing this crop.
 
With WestBred seeds and talent added to our company, Monsanto’s development of technologies has the opportunity to enhance not only the productivity, sustainability and quality of wheat, but also the crop’s profitability for our farmer customers.
 
Researchers will apply Monsanto’s expertise in conventional and marker-assisted breeding to develop better-yielding varieties using WestBred germplasm as a foundation. Biotechnology will be a longer-term prospect, which is consistent with the 8-to-10 year development cycle for new biotech traits for other large-acre crops.
 
But Monsanto and WestBred are not going to do this alone. We’re also forming a Wheat Development Advisory Group that will consist of individuals throughout the food value chain to assist us as we develop and apply new technologies in wheat.

Ohio General Assembly approves Livestock Care Standards Board resolution:

The following statement was released jointly by farm groups and agricultural commodity groups across Ohio in response to the Ohio Senate and Ohio House of Representatives’ passage of Amended Senate Joint Resolution 6 (Am. SJR 6), which would authorize a statewide ballot measure creating an Ohio Livestock Care Standards Board.

Action today (Monday) by the Ohio House of Representatives and the Ohio Senate to approve Amended Senate Joint Resolution 6 is an important step forward in continuing Ohio livestock farmers’ excellent treatment of farm animals, maintaining safe food production practices and ensuring the continued availability of nutritious, affordable, locally produced food for Ohio consumers.

We would like to commend our legislative leaders and sponsors – including Senate President Harris (R-Ashland), House Speaker Armond Budish (D-Beachwood), Senate Agriculture Chair Kirk Schuring (R-Canton), House Agriculture and Natural Resources Committee Chair John Domenick (D-Smithfield), Am. SJR6 sponsor Bob Gibbs (R- Lakeville) and Amended HJR 2 sponsor Allan Sayre (D-Dover) – for their strong leadership in moving the resolution forward and securing bipartisan support for the measure in the Senate and House. We also acknowledge the hard work of our key supporters, including Margaret Ruhl (R-Mt. Vernon), Jason Wilson (D-Columbiana) and Jim Zehringer (R-Ft. Recovery). Additionally, we are grateful for Governor Ted Strickland’s unwavering support of this measure.

We would also like to thank our collective farm community for their continued commitment to responsible farm management and animal care. Passing this resolution is an investment in the future of Ohio’s farm economy.

The proposed Livestock Care Standards Board will provide an effective mechanism for determining and enforcing guidelines for the care and well-being of livestock and poultry, and for ensuring the quality, safety and availability of locally produced food in our state.

The Livestock Care Standards Board has garnered broad support from throughout Ohio’s farm and agricultural communities because it’s good for Ohio farmers, good for the animals we raise, and good for Ohio consumers. We expect Ohio voters to draw the same conclusion and ask for their support of the initiative when it is placed on the November ballot.

The organizations issuing this joint statement include the Ohio Farm Bureau Federation, the Ohio Pork Producers Council, the Ohio Poultry Association, the Ohio Dairy Producers Association, the Ohio Cattlemen’s Association, the Ohio Soybean Association, the Ohio Corn Growers Association and the Ohio Wheat Growers Association.

Ohio Wheat Growers Association President Mark Wachtman comments on market speculation, convergence in Dow Jones article

DJ Grain Groups Support Senate Panel On Wheat Speculation

By Tom Polansek

DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--Agricultural groups rallied Wednesday behind a U.S.Senate subcommittee that blamed index funds for inflating Chicago Board of Trade wheat futures prices, but the exchange disputed the panel's conclusions.

The National Grain & Feed Association backed a report from the U.S. Senate Permanent Subcommittee on Investigations that said excessive speculation byindex funds has stressed grain hedgers and contributed to a lack of convergence between cash wheat prices and futures. The markets are supposed to converge, or come together, when futures go into delivery to facilitate hedging, but cash prices have remained well below futures.

The Senate panel's 247-page report, issued Tuesday night, "reflects a view that has been expressed by the [NGFA] for several years," the association said.

"The CBOT market for wheat has fundamental problems and is not providing the kind of pricing and hedging performance needed to market grain efficiently and to provide forward-pricing contracts to producers that reflect the market."

Some market participants blame index funds that take only long, or bullish, positions for increasing futures prices and hurting convergence. CBOT wheat represents U.S. soft red winter wheat, used to make pastries and snack foods, but is also seen as a global benchmark for prices. The market attracts speculative investment money because of its liquidity.

The National Farmers Union said excessive speculation in the market created a"commodity price bubble" last year that raised input and feed costs locked inby farmers and ranchers. Commodity prices have since fallen, leaving producers struggling to pay the higher costs, the group said.

CME Group Inc. (CME), which owns the CBOT, rejected the conclusion that index funds were responsible for a surge in wheat prices or the lack of convergence.

Four industry studies, including one by the exchange, have shown "there is no causality between market participation of index funds and non-commercial traders and wheat price levels or cash market convergence at expiration," it said.

"Each study concluded that fundamental supply and demand factors related to crop failures, strong economic growth in many importing nations, acreage switching caused by demand for bio-fuels, and currency volatility have all been responsible for recent periods of increased volatility and price swings in commodity markets," according to CME.

Some traders recalled the studies and dismissed their findings as bogus. The size of index funds' position holdings makes it "pretty hard to argue that they don't" impact price levels or convergence, said Jeff Hainline, director of Advance Trading in Bloomington, Ill.

"If you want to study it in different ways, you can get different results," he said.

Concerns about the lack of convergence heightened last summer, when cash prices fell more than $2 below futures. The gap has since narrowed to about 90 cents, which is still problematic for hedgers, traders said.

Ninety cents "is a wide basis," said Mark Wachtman, president of the Ohio Wheat Growers Association. "It should be down around 40-60 cents, depending onlocation, at this time of year as harvest starts to roll."

Wachtman said the influence of index funds was a double-edged sword for market participants. They increase liquidity but also increase volatility, which can spark crushing margin calls, he said.

CBOT wheat climbed to a record high in early 2008 amid global crop failures and remained historically high last summer. Prices fell during the autumn as world wheat supplies grew and the markets felt the impact of the global credit crisis.

CME won approval in December from the Commodity Futures Trading Commission to overhaul its wheat contract to improve convergence by adding deliveryterritories, imposing seasonal storage rates and lowering the allowable limit of vomitoxin, a fungal byproduct. The changes, which begin to take effect in July, did not impose new limits on index funds.

Along with the Senate panel, the CFTC has a subcommittee studying the lack of convergence in agricultural markets, particularly CBOT wheat. It's likely the CFTC will follow the Senate panel's recommendation to phase out existing waivers that allow index traders to exceed position limits, said Hainline, whosits on the CFTC's convergence subcommittee.

"The reason [waivers] are being withdrawn is because of the lack of convergence," he said. "It's regrettable because, if the exchange had been proactive about the lack of convergence and adjusted their contract so that it would converge, they wouldn't be in this situation."

The Senate panel said the CFTC should consider lowering position limits on index funds if pricing problems persist after the waivers are phased out.


OWGA, agriculture groups unite to stop vegan extremist group from dictating farming practices in Ohio

Ohio’s top elected leaders from both political parties, representatives of the state’s agriculture organizations, including The Ohio Wheat Growers Association and the Ohio Corn Growers Association, have announced a proposal to create the Ohio Livestock Care Standards Board (the Board).

The Board would be created if approved through a ballot measure to be placed before Ohio voters on the November 2009 ballot.

OWGA and all of Ohio’s farm commodity organizations support this measure because livestock practices will be in the hands of Ohio animal care experts and not led by out of state interests such as the Humane Society of the United States (HSUS). (HSUS does not represent your local humane society that deals with puppies and kittens although they confuse voters into thinking they do.)

The Humane Society of the United States is a PETA-like animal activist group with the ultimate goal of banning animal agriculture. They have been linked to many radical vegetarian/vegan groups with the main goal of ending animal agriculture--and using livestock for leather goods, clothing, wallets, purses, automobile seats, etc.

The purpose of this bill is to form an animal care board of experts rather than let an activist group tell Ohio farmers how to farm. This measure is of vital interest to all Ohio farmers, whether you raise livestock or the grains that feed our herds and flocks.

The 13-member Board will set forth fair, effective regulation of livestock and poultry farms to ensure excellent animal care, while also protecting our food supply and ensuring the availability of local food. Among its responsibilities are the consideration of agricultural best management practices, biosecurity on livestock farms, animal disease prevention, maintaining food safety and food production economics.

OWGA and all of Ohio’s farm commodity organizations support this measure because livestock practices will be in the hands of Ohio animal care experts and not led by out of state interests like the Humane Society of the United States (HSUS).

Initiatives such as Proposition 2, which passed last November in California, would put many farmers in Ohio out of business by creating a complete ban on modern practices for livestock and egg farming. HSUS has targeted Ohio as the next state for a similar ballot initiative, which is why Ohio’s farm leaders and the state’s elected officials have taken progressive steps to bring forth our own effort through establishment of the Board.

This is the right solution to help keep our farms viable and to ensure farmers can keep providing safe, high-quality, locally-grown food for Ohioans.

The Board will be fair and balanced and will include representatives from a number of farm interests – including three family farmers, two veterinarians (one of whom is the state veterinarian), a food safety expert, a representative of a local humane society, two members from statewide farm organizations, the dean of an Ohio agriculture college, two members representing consumers, and the Director of the Ohio Department of Agriculture, who will chair the Board.

Establishment of the Board is a proactive step that provides standards for the care we give our flocks and herds, while also ensuring that Ohio livestock and poultry farmers retain the right and ability to produce the food necessary to feed Ohio and the world. This measure is the right thing to do for all Ohio farmers and for the animals raised by livestock farmers.

We must unite as a farm community and stand together. We must speak with one voice. And, we must speak in support of the ballot measure, because it will help safeguard the future of Ohio’s farm community. We are confident the voters of Ohio will give us their support in acknowledging that this Board is the appropriate entity to make decisions on behalf of animal agriculture and food production in our state.

If you have any questions or concerns, please do not hesitate to call OWGA at 740-201-8088. We will continue to keep you updated frequently as we move forward with this initiative.

Wheat harvest will be the first with new checkoff

By Matt Reese

Wheat harvest is right around the corner and it will be the first that is subject to the Ohio Small Grains Marketing Program (OSGMP).

OSGMP is a wheat and small grains checkoff program that was started by the Ohio Wheat Growers Association (OWGA), passed through the Ohio legislature and signed into law by Gov. Ted Strickland in December of 2007.

In addition to public education, the new OSGMP committee will help fund research for better yields, disease control, end uses and expanding markets for wheat, barley, oats and rye. Through the checkoff, a half percent of the net market value of those small grains will go towards a fund for the program. The funds will be collected at elevators, terminals, processors, millers or by truckers. The checkoff money is collected when the grower is paid.

“We started collection of the checkoff at the end of 2008, but essentially, this is our first year and were looking at potential projects to invest in,” said Brad Haas, chairman of the OWGA. “There are a multitude of situations to investigate. We’re looking into promoting whole grains in the school lunch program. We’re working with the National Association of Wheat Growers and they’ve been very good to us. They are well connected at the federal level where we really need representation with some of these significant issues like animal agriculture and cap and trade climate legislation. We are also working on wheat exports with people from U.S. Wheat Associates and their overseas offices showing millers and livestock producers how to use the different classifications of wheat around the world.

“Another issue is Extension, where we’re seeing less and less money going into the hard core crops. I do not want to be dependent on Dupont and Monsanto to come up with solutions for us, and even the things that they do come up with need an unbiased assessment. Along with that, we’re looking at working with Extension’s Clay Sneller on developing new wheat varieties or possibly coming up with white wheat or hard wheat that we can grow here in the state.”

With so many challenges and opportunities facing agriculture, the time is right for this checkoff in Ohio, Haas said.

“The OWGA has been giving a fair amount of representation for the farmer for a number of years, but we can only get so far before we have to stop because there is no money,” he said. “If we don’t come up with some funding, we can’t really serve wheat growers. We grow the crops. We need to promote our product. It is not like the tooth fairy or the wheat fairy is going to take care of all of this stuff for us.”

Wheatworld.org shows comments from a biotech petition

New analysis of comments NAWG received as part of a recent biotech petition effort is now online at www.wheatworld.org/biotech.

The NAWG-commissioned petition, results of which were released in February, showed that more than three-quarters of wheat growers responding supported the commercialization of biotechnology in wheat.

More than 21,000 growers received the petition language and a response card asking for their agreement or disagreement. The response cards also invited respondents to provide comments or concerns, which are summarized and addressed in the analysis.

Major topics covered in the five-page paper include market acceptance; glyphosate tolerance; concerns about excessive market influence by private companies; the role of public breeding programs in biotech development; coexistence with non-biotech and organic markets; and concerns that higher yields will lead to lower prices.

Extensive information about the petition effort - including petition language and state-by-state results - and NAWG’s work on biotechnology acceptance is also available at www.wheatworld.org/biotech.

Contact Us:

OWGA/OSGMP
59 Greif Parkway Suite 101
Delaware, OH 43015

Phone: 740-201-8088

About OWGA

Founded in 1993 to educate and assist producers, industry representatives and legislators to improve the profitability and marketing strategies for the Ohio wheat industry.  Incorporated as a non-profit organization in 1998. The Ohio Small Grains Marketing Program was signed into law in 2007 to fund wheat research projects and further the profitibility of wheat growing in Ohio.

About OSGMP

OSGMP is a wheat and small grains checkoff program that was started by the Ohio Wheat Growers Association (OWGA), passed through the Ohio legislature and signed into law by Gov. Ted Strickland in December of 2007.

In addition to public education, the new OSGMP committee will help fund research for better yields, disease control, end uses and expanding markets for wheat, barley, oats and rye. Through the checkoff, a half percent of the net market value of those small grains will go towards a fund for the program. The funds will be collected at elevators, terminals, processors, millers or by truckers. The checkoff money is collected when the grower is paid.


Our Mission

To ensure the sustainability of wheat production in Ohio through diversification and value-added enterprises.