January - Wheat Life

Transcription

WHEAT LIFE
The official publication of the Washington Association of Wheat Growers
JANUARY 2013
Contacting your state
and federal representatives
A piece of Washington
water history
Falling hard
for a different
class of wheat
Address Service Requested
Washington Association of Wheat Growers
109 East First Avenue, Ritzville, WA 99169
WHEAT LIFE
Volume 56 • Number 1
www.wheatlife.org
The official publication of
WASHINGTON
ASSOCIATION OF
WHEAT GROWERS
109 East First Avenue
Ritzville, WA 99169-2394
(509) 659-0610 • (800) 598-6890
In association with:
www.washingtongrainalliance.com
WAWG MEMBERSHIP
(509) 659-0610 • (800) 598-6890
$125 per year
EDITOR-IN-CHIEF
Kara Rowe • [email protected]
(509) 456-2481
EDITOR
Trista Crossley • [email protected]
(435) 260-8888
AD SALES MANAGER
Kevin Gaffney • [email protected]
(509) 235-2715
GRAPHIC DESIGN
Devin Taylor • Trista Crossley
AD BILLING
Michelle Hennings • [email protected]
(509) 659-0610 • (800) 598-6890
CIRCULATION
Address changes, extra copies, subscriptions
Chauna Carlson • [email protected]
(509) 659-0610 • (800) 598-6890
Subscriptions are $50 per year
WAWG EXECUTIVE COMMITTEE
PRESIDENT
Ryan Kregger • Touchet
VICE PRESIDENT
Nicole Berg • Paterson
SECRETARY/TREASURER
Larry Cochran • Colfax
PRESIDENT EMERITUS
Eric Maier • Ritzville
APPOINTED MEMBERS
Ben Barstow • Palouse
Chris Herron • Connell
Remie DeRuwe • Connell
Wheat Life (ISSN 0043-4701) is published by the
Washington Association of Wheat Growers (WAWG):
109 E. First Avenue • Ritzville, WA 99169-2394
Eleven issues per year with a combined August/
September issue. Standard (A) postage paid at
Ritzville, Wash., and additional entry offices.
Contents of this publication may not be reprinted
without permission.
Advertising in Wheat Life does not indicate
endorsement of an organization, product or political
candidate by WAWG.
2 WHEAT LIFE JANUARY 2013
President’s Perspective
Bringing in the new year
By Ryan Kregger
With a new year ahead, we in agriculture have a lot to
be thankful for and a lot to discuss. In the two months that
I’ve been president of WAWG, I’ve realized there is one
thing that we try to build well as an organization: strategy.
As you’ll read in this issue, just the makeup of the new
state legislature alone will require the WAWG board of
directors to make tough decisions based on the best strategy we can create and maintain. There will be a lot of new faces in Olympia this
session, as roughly two dozen freshman legislators make their way to the capitol
(see our legislative pullout on pages 38 and 39). This is a great opportunity for us
to teach and to listen. As you know, most of the legislature is made up of nonfarming delegates. We not only need to teach these delegates about the realities we face
as farmers, but we must also listen to their ideas and build common ground with
them if we want to improve policy for rural Washington.
The Washington we live in and love has a new governor with many ideas
that may seem like opposition to farmers. WAWG, however, must find a way to
work with the new reality. Governor Inslee is very interested in clean water and
green energy. There may be some common ground within conservation that we
can work within and develop a strong relationship. We must ensure that any
idea in these areas be sustainable for our industry and for our farmers. Overall
costs to the farmer must be considered in these strategies. We are happy to work
in any way possible with the governor that can improve the wheat industry in
Washington state.
It is nice to see that the state senate is coming together in a bipartisan way to
help balance out the extremes of the legislature. I am also pleased to see our friend
and fellow farmer, Sen. Mark Schoesler of Ritzville, help lead the effort to build a
bipartisan future for our state.
Before the end of 2012, your officer team and staff worked to continue building bridges with the state Department of Ecology and other state agencies. While
they are regulators, it is imperative that we continue communication with them.
We must educate them on our cultural practices and fiscal limitations. We will
work throughout 2013 to keep transparent relationships with agency staff in order
to avoid any “surprise” regulations in the future. In fact, WAWG will be hosting
another farm tour this spring specifically for agency personnel. We hope to bring
staff from Olympia and elsewhere to the dryland fields of Eastern Washington and
show them the effects of their decisions. We also hope to showcase the importance
and effectiveness of the many stewardship practices our farmers do voluntarily to
help improve water and air quality.
As we move further into the whirlwind of 2013, do not hesitate to call me directly if you have questions, concerns or kudos on WAWG’s policy direction. We
will strictly adhere to the resolutions formed by our membership, which you can
find at our website, wagrains.com. Happy New Year!
All photos are Shutterstock images or taken by Wheat Life staff unless otherwise noted.
Inside This Issue
WAWG President’s Perspective
WAWG at Work
Policy Matters
Battling over Washington water
Examining the murky history of water quality
Not just another state agency
Talking to Dan Newhouse of the WSDA
Down in the dumps
Ways to fight the winter blues
Profiles
Jeff Dema of MachineryLink
Legislative Pullout
What you need to know about our team
WGC Chairman’s Column
WGC Review
Dreaming of a hard white future
ADM looks at sourcing grain locally
Mahalo
Hawaiian thanks to PNW’s key customers
There’s an ointment for that
Snake oil diets on the hot seat
Sour soil?
Examining aluminum toxicity
Wheat Watch
WGC Wide World of Wheat
From heyday to gone away
The second part of PNW flour mills’ history
LaCrosse gets its grocery store
An update on the little town that could
Quoteworthy
The Bottom Line
Your Wheat Life
Advertiser’s Index
2
6
14
20
24
30
34
38
41
42
46
51
54
56
60
62
64
68
69
70
72
74
your
t
c
a
t
n
co
How to nd federal
state a akers.
lawm
Contributors
Ryan Kregger, president, Washington Association of Wheat Growers
Tom Zwainz, chairman, Washington Grain Commission
Scott Yates, communications director, Washington Grain Commission
Kevin Gaffney, ad sales manager, Wheat Life
Glen W. Squires, CEO, Washington Grain Commission
Art Bettge, consultant, ADB Wheat Consulting
Kurt Schroeder, research associate, Washington State University
Mike Pumphrey, assistant professor, Washington State University
Mike Krueger, president and founder, The Money Farm
Todd King, CPA, Leffel, Otis & Warwick, P.S.
Mary Ruth Dilling, writer, Athol, Idaho.
Norman Reed, historian
WHEAT LIFE JANUARY 2013 3
Why IN-PLACE?
BETTER COVERAGE &
INCREASED DEPOSITION.
For more inFormation visit ag.wilburellis.com
For Better Coverage oF Spray Solution
IN-PLACE® is a deposition aid and drift management agent which reduces
evaporation and drift of chemicals while increasing coverage and adherence
on the target area.
• Increases deposition • Improves coverage • Allows more product to hit the target
For more information on IN-PLACE, contact your local Wilbur-Ellis Specialist
or visit ag.wilburellis.com
Important: Always read and follow label directions before buying or using any product.
WILBUR-ELLIS Logo, Ideas to Grow With and IN-PLACE are registered trademarks of Wilbur-Ellis Company. K-1212-922
WAWG MEMBERSHIP FORM
BECOME
A
MEMBER
Please check level of membership
Grower $125
Landlord $125
Name
Farm or Business
Address
City
We fight every day to ensure that life on the
family farm continues to prosper and grow.
WE NEED YOUR SUPPORT.
State
Zip
Phone
Fax
Email
County Affiliation (if none, write state)
For a $125 annual membership, farmers, landowners
and industry representatives can show their solidarity
and lend their voices to ensure responsible state and
national agricultural policy remains in place. As a
result of WAWG’s half century of advocacy, millions
of dollars have been returned to Washington farm
country. Show your support. Share your ideas.
Become a member today and you will be signed up
through the summer of 2013.
Circle all that apply:
Producer Landlord
X
X
X
X
X
X
X
X
X
X
X
X
X
Business Owner
Other
Weekly Email correspondence
• Greensheet ALERTS
• WAWG updates
• Voice to WAWG through
opinion surveys
National Wheat Grower updates
Call 800-598-6890
or visit
X
X
Industry Rep.
More member benefits!
One Vote per
Partner
One Vote per
Individual
WAWG Convention
Free Registration
Annual Harvest
Prints
National Wheat
Grower Newsletter
Green Sheet
Newsletter
Wheat Life
Magazine
X
Individual
Return this form with your check to:
WAWG • 109 East First Ave. • Ritzville, WA 99169.
Or call 800-598-6890 and use your credit card to enroll by phone.
LEVELS OF MEMBERSHIP
X
Lifetime $2,500
If you do not have an email address, or prefer hard
copies, please include an extra $25 for Greensheet postage.
Also, receiving Wheat Life does NOT mean
you are a member.
X
Convention $500
Family $200
(up to 2 members)
Please understand that your wheat checkoff does
NOT pay for your WAWG membership.
Producer/Landowners (Voting Membership)
X
Grower or Landlord $125
Family $200
X
(2 family members)
Partnership $500
X
(1-5 family members)
Convention $600
X
(2 individuals)
Lifetime $2,500
X
(1 individual)
Partnership $500
(up to 5 partners)
Washington Association
of Wheat Growers
109 East First Ave. • Ritzville, WA 99169
509-659-0610 • 800-598-6890 • 509-659-4302 (fax)
WAWG
at
k
r
o
w
State leadership prepares
for new legislative session
The House
On Monday, Jan. 14, the 63rd Washington Legislature
will convene the 2013 state legislative session. Your WAWG
leadership, staff and lobbying teams
have been diligently working and moving the chess pieces around within the
legislative makeup. As you’ll notice on
our special pullout section (page 38),
there are a significant number of new
freshman faces in the state’s House
chamber, 21 to be exact. One of
them from Eastern
Washington, Matt
Rep. Matt Manweller
(R-Ellensburg)
Manweller
(R-Ellensburg), was sworn in
to his office in November
and believes there are
quite a few issues
he’d like to help fix
within agriculture.
In the House, there are also five of these new freshman
faces that bring a new party to their position within their
district. Three freshmen Republicans took over previously Democratic positions, and two Democrats did the
same over Republicans. The House makeup will be 55
Democrats and 43 Republicans.
Most committee assignments have been made for members, including Judy Warnick (R-Moses
Lake), whose redesigned 13th District
now includes Lincoln County. In addition to the House Capitol Budget
and Education committees, Warnick
was also assigned to the Agriculture
and Natural Resources committee as
well. “At each end of the 13th District,
we are facing water management
challenges. From the Kittitas County
Rep. Judy Warnick
headwaters of the Yakima Valley Basin (R-Moses Lake)
to the Odessa Aquifer, we must ensure
we have a balanced approach that provides adequate
water supplies for people and fish,” Warnick said. “I have
already been involved in interactions between agriculture
producers with the Departments of Fish and Wildlife and
Natural Resources, and I look forward to continuing that
work.” Reps. Warnick and Manweller’s 13th
District is now one of the largest agriculture districts in the state.
The Senate
On the Senate side,
things aren’t as cut
and dried. There
are three true
freshmen entering the Senate
without prior
legislative
experience.
Another six
new Senators
are transfers
from the state
House. Similar
to the House,
there was a shift of
one seat towards the
Republicans in the party
numbers, but because there
e
3r
dW
ur
t
ash
sla
i
g
ington State Le
6
“We need water
storage solutions,
so we’re going
to work on some
funding bills to
make sure that
the infrastructure is there to get
water to the farmers
who need it,” he said
after he took the oath
of office. “We also need
to provide some commonsense oversight to some of the
unelected bureaucracies, like the Department of Ecology
and the Department of Labor and Industries, and so I’m
going to work on bills like that.”
HILLCO
Combine
Leveling Systems
MiniMizing Hills. MaxiMizing Profits.
How do we improve on leveling systems that have set the industry standard? We continue to
push the boundaries; designing and building equipment that meets the rigorous demands of
today’s farmer. Hillco’s newest leveling systems are designed to handle increased combine
weight and grain tank capacity and deliver superior performance and unparalleled results in
some of the steepest terrain harvested in the world.
How do we improve on an industry standard? We set an entirely new one.
ing Systems
Combine Level
800.937.2461
www.hillcotechnologies.com
Wheat Life Ad 2013.indd 1
12/12/2012 8:28:37 AM
YOUR AG TRACKS
HEADQUARTERS
TRAckS in STock !
AG TRAckS
John Deere, 8000T-9000T, CAT 35-95 series 16”-36” Widths, Case Quad Trac - 30”& 36” Widths
WE AlSo cARRy RUbbER TRAckS
foR Mini-ExcAvAToRS AnD
SkiD STEER MAcHinES
Walla Walla
509-529-2423
Pendleton
541-276-1571
Milton-Freewater
541-938-5507
Spokane Alki
509-534-0564
Grand Coulee
509-633-3090
Quincy
509-787-1551
Cheney
509-235-5700
Colfax
509-397-4678
Hermiston
541-567-8528
Ephrata
509-754-2479
WL
WAWG AT WORK
are only 49 members in the Senate,
the shift was much more dramatic in
the upper Chamber. Two districts that
were served by Democrats last year are
now represented by Republicans. Bruce
Dammeier (R-Puyallup) and Barbara
Bailey (R-Oak Harbor) helped tighten
the divide within the Senate.
Sen. Bruce Dammeier
(R-Puyallup)
One district that was previously represented by a Republican is now represented by one of the true freshmen,
Mark Mullet (D-Issaquah). There will
be 26 Democrats
and 23 Republicans
serving in the
Senate.
In December,
two moderate
Democrats, Rodney
Sen. Barbara Bailey
Tom (D-Medina)
(R-Oak Harbor)
and Tim Sheldon
(D-Potlatch), joined with all the Senate
Republicans in a power-sharing arrangement to take over the Senate, calling themselves the Majority Coalition
Caucus.
“The public out there is hungry for
us to come together, to work together
in a collaborative manner. That is
exactly what this coalition is trying
to accomplish. We want a cooperative
relationship and making sure we work
across party lines,’’ Tom said during
a press conference announcing the
takeover.
Sen. Rodney Tom
(D-Medina)
Sen. Tim Sheldon
(D-Potlatch)
With the shift in power, the coalition outlined it’s plan
to build a bipartisan Senate through a restructuring
of committees. Democrats would lead six committees,
Republicans would control six, and three committees
would have co-chairs. Republicans would control budgetwriting Ways and Means under Andy Hill (R-Redmond);
Education under Steve Litzow (R- Mercer Island); Health
Care under Randi Becker (R-Eatonville); Government
Operations under Pam Roach (R-Auburn); Commerce and
Labor under Janea Holmquist Newbry (R-Moses Lake);
and Law and Justice under Mike Padden (R-Spokane
Valley).
The committees that would be co-chaired by Democrat
and Republican leaders would be Human Services
and Corrections with Sen. Mike Carrell (R-Lakewood);
Transportation with Sen. Curtis King (R-Yakima); and
Energy and Telecommunications with Sen. Doug Erickson
(R-Ferndale).
Tom and Senate Republican Leader Mark Schoesler
(R-Ritzville) said they organized their coalition around a
set of principles that the majority coalesce around:
• promoting job growth and a vibrant economy;
• c reating a sustainable budget and living within the
state’s means;
•p
roviding a world-class education system through
reforms and enhancements;
•g
overning collaboratively to protect the most vulnerable while prioritizing the needs of middle-class
Washingtonians; and
• s etting priorities for state government and holding it
accountable.
As of the deadline for Wheat Life, the Senate Democrats
had formally refused the Majority Coalition’s plan. In fact,
they offered an alternative plan of offering co-chairs for
nearly every committee. The Majority Coalition Caucus almost immediately refused the counteroffer. In an editorial
to the Seattle Times, Senate Democratic Leader Ed Murray
(D-Seattle) and Senate Democratic Caucus Chair Karen
Frasier (D-Thurston) said they recognize that Republicans
have the votes to unilaterally impose their will.
“As the new minority, we will work together when we
can and oppose when we must. Our commitment to our
state’s values will not waver,” they wrote. “But we do find
the Republicans’ my-way-or-the-highway approach to be
concerning. It’s the exact opposite of collaboration, no matter how many times the word is invoked.”
Regardless of the structural makeup of both chambers,
WAWG is committed to finding common ground within
the Legislature and to protect and strengthen the rights of
farmers. WAWG’s top priority this session is to protect the
current tax structure from the potential loss of agricultural
exemptions. Other priorities include opposing the labeling of genetically modified food ingredients, opposing an
increased pesticide buffer law and supporting a potential
package that could help short line rail.
WAWG moves forward
on water quality issue
WAWG President Ryan Kregger and WAWG State
Legislation Chairman Eric Maier recently met with key
personnel at the Washington Department of Ecology’s water quality division in Olympia. The goal was to enhance
Wheat Life.indd 1
10/30/12 2:08 PM
NEW PHOTOGRAPHY BOOK
NOW AVAILABLE
“Beautiful!”, “Simply incredible!”, “Awesome book!”
-Recent Facebook user comments
A project sponored by the Washington Association of Wheat Growers
Preview it online at www.washingtonwheatbook.com
PLEASE CALL THE WAWG OFFICE TODAY
Washington Association of Wheat Growers
109 E. First
Ritzville, WA 99169
Phone: 509-659-061
E-mail: [email protected]
WAWG members – $35
Non-members – $45
PLUS TAX AND SHIPPING
WL
WAWG AT WORK
communication between Ecology and wheat growers as
the agency continues addressing water quality throughout
the state’s watersheds. The conversation went well, and
WAWG will begin developing it’s biennial Agency farm
tour focused around water quality. The goal with the tour
will be to better educate various agency staff members on
what farmers are doing to improve water quality through
incentive-based programs and other voluntary stewardship practices.
The Washington departments of Ecology and
Agriculture have pledged to work with their partner
conservation agency, the State Conservation Commission,
to manage water quality within agriculture. In December,
WAWG Vice President Nicole Berg and staff attended a
joint work session of the state House and Senate agriculture committees where the directors of the three agencies
discussed their water quality plans moving forward (read
more on page 20). The directors hope to continue working
to clarify their individual roles and responsibilities and
will continue making system improvements.
Additionally, WAWG will be setting up an active working group made up of area farmers to help the organi-
zation better address water and air quality issues. The
working group will be structured under the umbrella of
the natural resources committee.
WAWG actively engaged in
discovery center developments
Plans are moving forward on a concept that has been
years in the making for an agriculture-focused tourism
center in Ritzville. WAWG has been monitoring and participating in the project’s progress. Washington’s Ag Discovery Center and Business Park
hopes to attract visitors traveling along Interstate 90.
The center will include all of Washington’s agricultural
commodities in its goals of educating the public on the
importance of agriculture and provide one more avenue of
visibility for the state’s ag industries. The coordinators of the project have met with
Washington State University (WSU) and other interested
parties for both educational and commercial opportunities.
WSU hopes to be involved commercially with a store, as
Ammo kicks off 2013 with new farm management programs
As we embark upon 2013, WAWG’s newly adopted
educational outreach program, AMMO (Agricultural
Marketing and Management Organization) kicks into
full swing, with 10 farm management training programs offered in four Eastern Washington locations. While AMMO is relatively new to WAWG’s
umbrella of offerings, the program
has provided producer workshops in Lincoln and Whitman
counties for the last two years.
Increased demand and
response prompted expansion to Pasco and Ritzville,
in addition to the Davenport
and Colfax locations.
Workshops are slated to include DOT farm truck
regulations; using good financial records to increase
farm profitability; understanding the marketing basics;
improving family/business communications; implementing marketing strategies with case studies; planning for farm business succession; your business plan
(a road map for the future); impacts of the new farm bill
(if there is one); using GPS to manage your input costs;
and making good capital management decisions.
In addition to WAWG’s sponsorship and the assistance of a USDA-Risk Management Education
grant, there are also 54 other area business
AMMO members that contribute time, money
and resources to ensure the
success of the program
and its benefit to producers. Workshop content is
derived from input from
producers and members
to meet the growers’
needs and concerns for
their farming businesses. The primary goal of AMMO
is to help growers increase profitability by making better farm management decisions.
For more information or to preregister for workshops
in your area, visit the AMMO website at
www.lcammo.org or call (877) 740-AMMO (2666) or
email us at [email protected].
FALL 2012 CRP & SAFE MIXES. NO PLATITUDES...JUST THE SEED YOU NEED
Com
Boo e see us
the A th #35 @ !
g Sh
ow!
PREPARED TO PRICE & COMMIT...Regardless of fire seasons!
CRP & SAFE
X
NO PLATITUDES!
WAREHOUSES IN MESA & ODESSA
CALL 509-297-4500
Dry &
Irrigated Pasture
Wildlife Habitat
Turfgrass
Orchard Cover
Erosion Control
• Meets Govt. Specs
• Seed, Tags,Mix Sheets
• High PLS
• MIXED FOR YOUR PLANTER
• Bagged in 50 or 1,000 lb Totes
• Calibration Assistance
• What Else Do You Need?
P.O. Box 210, Eltopia, WA 99330 • Tel: 509-297-4500 • Fax: 509-297-4505 • Email: [email protected]
Meet
Bruce.
You work the land. You know what it
takes to do it well. So it makes sense
to have a banking partner who knows
the ins and outs of the financial side
of agricultural business.
Bruce is a seasoned commercial banker
with a true passion for the industry
that helped build this country—that’s
why clients trust his instincts, and rely
on his talents.
We’re banking on the businesses.
Bruce Mills
Member FDIC.
Equal Housing Lender.
Relationship Manager/Ag Lending
Palouse – 509.878.1300
awbank.net
WL
WAWG AT WORK
well as providing educational materials for a space within
the center designated for showcasing agricultural research
and extension and its impact on Washington agriculture. POMEROY GRAIN GROWERS
Numerous commodity groups provided letters of support for the project and will also be utilized in the grant
process. The center has gained cooperative interest from
various farm country state legislators including state
Sen. Mark Schoesler (R-Ritzville) and Rep. Susan Fagan
(R-Colfax).
WAWG board to hear from
export alliance, fertilizer plant
Serving Farmers for 80 Years
If you’ve been thinking about attending a WAWG board
meeting, the January meeting would be a good one. The
meeting will be held on Tuesday, Jan. 8, at the Wheat
Foundation building in Ritzville beginning at 10 a.m.
In addition to reports on multiple state and national topics, the board of directors will also hear from the Alliance
for Northwest Jobs and Exports, as well as Grannus LLC.
Grannus is helping develop a new zero-emission fertilizer
plant in the region.
Pomeroy Grain Growers, Inc.
Pomeroy Grain Office 877-291-4660
Pomeroy Agronomy 509-843-1394
Farm Commodities-Colfax 800-424-5056
“A story of
agriculture will
be told. It would
be better if it
were told by
you.”
— Jerry McReynolds,
past president of the National
Association of Wheat Growers
Helping Local Businesses
MAKE YOUR
VISION A
REALITY WITH
A LOAN FROM
WHEATLAND
HANDLE BULK SEED
THE EASY WAY
With our 5-Star BauerFinancial rating and historically low loan rates,
Wheatland is perfectly positioned to offer you a agriculatural loan that will
allow you to make your vision a reality. And those are just a few of the reasons
to work with a locally-owned community bank, nationally recognized as one of
the strongest banks in the country. Want to hear more?
Easy-on-off with one pin
Fast efﬁcient handling of bulk
Remote controlled hydraulic motor
Spring assisted lift for easy operations
Call TODAY and start the conversation
with one of our loan officers:
242-LOAN (5626)
Long reach 6” auger and 14.5’ telescoping spout
wheatlandbank.com/commercial-loans
509.535.1177
Member FDIC
Equal Housing Lender
3905.
booneAve.
Ave
3905 E.E.Boone
Spokane,
WA
99202
Spokane, WA 99202
NorthwestGrainAugers.com
NorthwestGrainAugers.com
POLICY MATTERS
Former Gov. Evans: Speaker
is not ‘alternate governor’
agenda) a lot more liberal than a coalition would produce,”
observed Evans.
Ultimately, former Governor Evans says the new Senate
majority will serve to lessen the power that Speaker
Chopp wields in Olympia.
By AUSTIN JENKINS
Northwest News Network
“The House of Representatives doesn’t run the state, and
the Speaker is not an alternate governor,” said the former
Republican governor.
Washington Speaker of the House Frank Chopp
(D-Seattle) will “have to learn” to negotiate. That tough
talk comes from former Republican
Governor Dan Evans in reaction to
the announcement that a philosophical majority of Republicans and two
Democrats have formed to take control
of the state Senate for the 2013 session.
Evans believes Chopp has enjoyed outsized influence
over the past several years, but that this shift in the Senate
may force Chopp to compromise on the budget and other
key issues to a degree he hasn’t had to before.
The last time a power-sharing
takeover occurred in the Washington
legislature was in the House in 1963. A
young Evans was one of the leaders of
Speaker of the
House Frank Chopp
that insurgency. Six Democrats joined
(D-Seattle)
forces with 48 Republicans on the first
day of session to yank control from Democrats and depose
Speaker John O’Brien.
“We made a decision to go ahead with it, and on the
third ballot, we all switched to (Democrat) Bill Day and
made him Speaker,” recalled Evans. “It was a real shock to
most of the Democrats.”
According to an oral history of the Washington State
Legislature, then-Governor Al Rosellini called it an “unholy alliance.”
Speaker Chopp was traveling out of state, but in a statement responding to Evans’ comments said, “I respect
Governor Evans’ decades of service to our state, but in the
50 years since he was in the legislature, a lot has changed.
Many leaders in his party have adopted hardline stances
that are out of touch with the majority of Washington
voters.”
The statement from Chopp goes on to say, “House
Democrats will continue to work in a constructive, cooperative way with everyone committed to Washington’s
priorities—investing in education, creating jobs, increasing access to higher education and protecting the health
and safety of our people.”
©2012 Northwest News Network
“Everybody predicted it would fall apart, and
it didn’t,” said Evans. “We succeeded very, very
well in that session...We didn’t lose one single
policy vote during the entire session.”
Evans predicts the new Senate majority will
enjoy the same success in 2013, even though it
has the bare minimum of 25 votes to control the
senate floor. Coalition leader Senator Rodney Tom
(D-Medina) vows to hew to a moderate agenda.
There’s always the risk of an internal schism if conservative Republican members of the Senate feel the
agenda is too moderate. But Evans says conservatives
won’t have much choice but to go along.
“The alternative...is to have it tilt back and have (the
/O ffice of
the Secretary
of State
ccessful runs
ans’ three su
Ev
of the state
an
D
an
1983,
ic
courtesy
of Republ
until 1977. In
Photograph
from the first
or from 1965
m
.S.
rn
U
ite
ve
a
n
ig
go
as
n
pa
as
enry Jack so
ans served
A 1964 cam
feated Mike
to replace H
governor. Ev
de
n
an
s
to
lm
an
ng
el
Ev
hi
,
Sp
as
for W
r that year
Gov. John
s retired from
pointed by
in office. Late
d term. Evan
Evans was ap
death while
re
s
pi
n’
ex
so
ck
un
s
Ja
n’
wing
Jack so
senator follo
t the rest of
ce to serve ou
Lowry in a ra
te in 1988.
the U.S. Sena
archive collection
Drawing Entry
CLASS 8 TRUCKS
521 N. EASTERN • SPOKANE, WA
(509) 534-9088 • [email protected]
Drawing Entry
Drawing Entry
HENRY RIFLE PROMOTION
In appreciation to all our past, current and
future customers...
• From Dec. through Feb. 7, 2013, buy a
truck or trailer or RENT one of our grain
trailers for 2013 harvest, and you get a
Henry Rifle. You pay the tax and pick up the
rifle at White Elephant.
• Come visit us Dec. through Feb. 7, 2013,
and put your name in the hat at our store
to have a chance to win one of 2 rifles.
• To enter drawing to win a 3rd Henry
Rifle, cut out and mail this ad-entry form,
including your name, address and phone
number to: Class 8 Trucks, c/o Henry, 521
N Eastern Road, Spokane WA, 99212
It was so popular with our customers,
we had to make it even better this time!
Contest runs December 2012 through
Thursday, Feb. 7, 2013, the last day of
Spokane Ag Expo. Details available at our
store....Come In Today!
Drawing Entry
Drawing Entry
3 Ways To Get Your
New Henry .22 Rifle!
www.class8trucksales.com
Drawing Entry
WL
POLICY MATTERS
To capture the maximum “innovation potential” from
government funding for ag research, the report urges a
rebalancing of how that research is funded to focus more
on competitive grants and de-emphasize research that
overlaps with that done in private industry.
However, without additional resources, moving away
from the current balance of funding at USDA could prove
risky for crops like wheat that do not benefit from the
levels of private research funding devoted to corn and
soybeans.
Plant research takes long-term, committed funding and
special expertise, and much of the innovation available to
farmers from wheat research still comes from the public
system. Despite additional private money allocated to the crop
in recent years, wheat research being conducted by USDA’s
Agricultural Research Service (ARS) is still fundamental
to wheat’s viability as a U.S. crop and food source for consumers around the world.
The full PCAST report and a webcast of the report’s release event are available at www.whitehouse.gov/administration/eop/ostp/pcast/docsreports.
Science commission calls
for more ag research funds
A high-level report on agriculture research funding was
issued recently by the White House Office of Science and
Technology, underscoring the importance of farming to
the domestic economy and the global population.
The President’s Council on Advisors on Science and
Technology (PCAST) issued the report which focused on
the need for agricultural preparedness and the existing
U.S. research infrastructure.
Noting the emerging and evolving threats to agriculture
production, the paper makes the case for additional and
rebalanced funding for research programs dedicated to
agriculture.
It also calls for an additional $700 million in annual
funding for agriculture research, which a report co-chair
said is justified because agriculture research funding has
been flat for decades.
The report prioritizes the top seven challenges facing
agriculture. Managing new pests, pathogens and invasive
plants is at the top of that list, and the paper singles out
Ug99 wheat stem rust as an example of an evolving and
potentially devastating new pest.
Grain groups applaud new
flexibility in school lunches
Wheat and other grain organizations applauded USDA’s
announcement that it will suspend restrictions on the
maximum quantities of grains and meats served through
the school breakfast and lunch programs for the duration
of the current school year.
The changes came after significant criticism from some
school nutrition advocates, school districts, parents and
lawmakers following the implementation of new school
breakfast and lunch requirements this past fall.
The new standards emanated
from the Healthy,
Hunger-Free Kids
Act of 2010,
which called
for more
LOOKING FOR
PROPERTIES
WE HAVE BUYERS
Farmland, hunting and recreational
properties, pasture and/or timberland.
to 20,000 acre
For Farmland, Pasture,–20
Timberland
andproperties–
Hunting
Sales & Purchases
and Recreational properties, 20 to 20,000 Acres!
Call Greg Schuster
Spokane WA
509-993-2545
[email protected]
Call Greg Schuster
Spokane WA
509-993-2545
[email protected]
110 years
STRONG!
Our seeds were planted in the heart of Whitman
County in 1902. Over 110 years later, our
commitment to the farm and ranch community has
never wavered. Call us, we want to be your bank.
Garfield Branch, 301 W. California St. 635-1361
Northpointe Spokane Branch, 9727 N. Nevada 464-2701
Spokane Valley Branch, 12902 E. Sprague 789-4335
stable. strong. Local.
www.statebanknorthwest .com
WL
POLICY MATTERS
fruits and vegetables and modified portion sizes for each
age group being served.
Schools faced logistical and budgetary challenges when
trying to implement the new standards, and some children, especially student athletes, were not getting enough
to eat for their activity levels.
NAWG and other grain organizations have supported
USDA efforts to improve the quality and nutrition offered
by school meals.
National grain chain groups commended the USDA
for closely monitoring the situation, listening to concerns
of the community and taking action to correct the unintended outcomes.
The Dietary Guidelines for Americans recommend eating six, one-ounce servings of grain foods each day, with
at least three servings coming from whole grains. Bread
and grains provide many of the essential nutrients needed
for health and prevention of diseases like heart disease,
diabetes, some cancers and birth defects.
coverage for 2013 spring-planted onions in Idaho, Oregon
and Washington and cabbage in Oregon and Washington.
Mar. 15, 2013: Final date to buy or change ALL
OTHER spring-seeded MPCI (excluding wheat in counties with fall- and spring-planted types). Final date to
buy 2013 AGR-Lite insurance for NEW APPLICATION/
ENROLLMENT POLICIES in Alaska, Idaho, Oregon and
Washington.
Current policyholders and uninsured growers must
make all of their decisions on crop insurance coverage
QualityOffering quality you can depend on:
You Can Count On For Over 50 Years
Farm Storage ! Hopper Bottom Bins
Grain Bin Accessories
Capacities 1,000
to over 1,200,000 bushels
Water Storage Tanks ! Aeration Systems
Handling Equipment
www.SCAFCO.com
A copy of the letter announcing the changes, sent from
the USDA to Senate Agriculture Committee Ranking
Member Pat Roberts (R-Kan.) is at www.roberts.senate.
gov/public/index.cfm?p=News.
Whole farm and MPCI
insurance dates coming soon
USDA’s Risk Management
Agency (RMA) reminds
producers of the fast
approaching winter and
spring sales closing dates
for Multiple Peril Crop
Insurance (MPCI)
programs. This also
includes the whole farm
insurance programs
Adjusted Gross Revenue
Pilot (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite).
AGR and AGR-Lite cover most farm-raised crops, animals
and animal products.
Upcoming sales closing dates:
Jan. 31, 2013: Final date to buy or change AGR insurance
in select counties in Idaho, Oregon and Washington. Final
date to submit required documents to continue or
change 2013 AGR-Lite insurance for EXISTING POLICY
HOLDERS in Alaska, Idaho, Oregon and Washington.
Feb. 1, 2013: Final date to buy or change crop insurance
Call today
for Quotes!
Dealer Info
Farm Storage • Hopper Bottom Bins
Grain Handling Equipment • Grain Bin Accessories
Water Storage Tanks • Aeration Systems
Steel Buildings • Equipment Storage
Warehouse Structures • Steel Studs
Rock Steel Structures, Inc.
Moses Lake, WA
Scott Rock • [email protected]
509-764-9700
before the sales closing date. If there
is no coverage in a county for a
specific crop under the traditional
MPCI program, producers may ask
a crop insurance agent whether they
would be eligible for coverage under
a written agreement.
Producers are encouraged to visit
with their crop insurance agent to
learn specific details for the 2013
crop year. Federal crop insurance
policies are sold and delivered solely
through private insurance companies and agents. A list of crop insurance agents is available at all USDA
Service Centers in the U.S. or on
RMA’s website at www3.rma.usda.
gov/apps/agents/.
FARM & HOME SUPPLY
TIME
FOR
A LITTLE
PAYBACK
1-888-643-3395 • 509-843-3395
www.fhsupply.com
Pomeroy, WA
AVAILABLE FOR RENT, LEASE OR PURCHASE
New CaseIH Steiger 450
Wheel Tractor, Triples, PTO. . .CALL
Case IH 8120 Combine
w/Hillco Leveling, 35’ 3020 Flex
Header, Last of the Tier 3
engines…Rent/Lease
Unverferth 8250 Grain Cart, 850
Bushel, PTO…Just In
Unverferth 7250 Grain Cart, 750
Bushel, PTO...........Just In
Best Buys In Used Equipment
2009 Case IH 435 QuadTrac, 30” Belts,
excellent ..........................................$262,500
Case IH 9260 Wheel Tractor, duals 85%, PTO .... $49,950
1998 JD 9200 Wheel Tractor, triples .................. $74,750
Kioti DK45 4WD Tractor w/cab and loader w/quick
attach bucket, low hours ................................ $29,765
Kioti LB1914 Wheel Tractor w/loader, 4x4 ........... $9,950
Steiger Cougar II Tractor, Recond. engine, 300 hp ..$9,995
Case 1190 Wheel Tractor, w/Great Bin Loader, quick
attach bucket ............................................ $9,750/OBO
AC 5040 Wheel Tractor w/Dual loader......... $7,950/OBO
Great Plains 30’ Turbo Max W/harrow .................. CALL
Great Plains Flex Harrow, 51’, 16 Bar ..................... CALL
Great Plains 40’ No Till Drill, NT 4010 HD, 10” space,
18” turbo coulters ........................................ $137,995
Great Plains 3S-4000 Min-Till Drill, 7” space, DD ..$54,750
Tye 2030 DD Drill, 30’ w/7.5” spacing, 2x13 press
wheels ............................................................ $15,750
30’ CaseIH 1010 Header w/cart ........................ $12,950
2010 Top Air Pull-Sprayer, 1200 gallon, 10 section 100
ft. boom, GPS, Sonic Boom Controls .................... CALL
24’ MC Flex Flail Mower, 3 Section ..................... $5,995
2012 Thunder Creek Fuel & Service Trailer, 750 gal.
diesel tank, 100 gal. DEF tank, 40 gpm pumps & reels,
12,000 GVWR ...................................................... CALL
2007 GMC 1/2 Ton Pickup, crew cab, SLT, 4x4, leather,
#SA74 ............................................................. $22,995
2009 Chevy 3/4 Ton Pickup, crew cab, 4x4, gas,
#BA65 ............................................................. $26,975
2009 Dodge Ram 1500 4x4 Quad Cab SLT,
#JR26 .............................................................. $23,625
2002 GMC HD 1/2 Ton Pickup, crew cab, 4x4,
#SA141 ........................................................... $11,650
Kioti Mechron 2200 Utility Vehicle, Diesel, 4x4 .... CALL
www.fhsupply.com
This just might be the best example of “what goes around
comes around” you’ll ever see. Northwest Farm Credit
Services is a cooperative, which means you have a voice
within the organization and we pay cash back to you.
No bank does this. When we do well, we share profits
with you, not third party investors. Soon Northwest FCS
customer-owners will receive patronage checks in the
mail. Getting a little payback never felt so good.
northwestfcs.com | 800.743.2125
WL
FEATURE
Washington grain farmers
push for incentive-based practices
to improve state’s water quality
By Kara Rowe
WAWG Director of Affairs and Outreach
From a general perspective, people tend to believe water
quality in Washington state only affects fishermen and
tribes. While they are important stakeholders, the state’s
water quality is something that affects every person,
whether you live in Tacoma or Tekoa or are a member of
the Nisqually Indian Tribe or the common family farm.
Water quality and the tribes
For decades, farms, cities and tribes have battled over
water within Washington state. From the “fish wars” and
the federal Clean Water Act, to agricultural spray buffers and dairy nutrient management plans, water quality
precedence is far-reaching.
Some argue the most critical moment in Washington
water history was the 1974 U.S. District Court decision
made by Judge George Hugo Boldt. To this day, Boldt’s decision impacts more than just those involved in the case—
it rearranged the seats at the water quality table. Boldt
presided over a trial that eventually decided whether the
state of Washington was upholding the 1854 treaties with
multiple Indian tribes in regards to fishing rights, specifically, a clause in each of them guaranteeing tribes the right
to fish: “The right of taking fish at usual and accustomed
grounds and stations is further secured to said Indians in
common with all citizens of the territory.”
In 1889, the first year of statehood and 30 years after the
treaties were signed, Washington legislators closed six
rivers to salmon fishing. All were important to the tribes’
fishing culture. The state eventually banned net fishing in
all rivers, except the Columbia. This outlawed the Indians’
main way of catching fish. Many Indians, however, con-
tinued their customary ways, and many were arrested by
officials. When brought to court, their sole defense was
that they had a right to fish according to treaties signed
with the U.S. government.
By the 1960s, the state’s arrests turned into a series of
raids and stings, much of it focused on the Nisqually
River. The river became the center of protests. Protesters
would openly fish in defiance of state laws. Police and
tribal members were continuously at odds.
In September of 1970, the U.S. government intervened
on behalf of the tribes and filed a lawsuit against the state
of Washington for not upholding the federal government’s
treaties with the tribes.
Within the treaty statement, the two sides argued very
simple concepts. The state interpreted the words “in
common with all citizens” to mean that the tribes, like all
other residents of the state, must be subject to state control.
The tribes argued the treaties entitled them to fish unimpeded at any of their “usual and accustomed places.”
For three years, Judge Boldt, a sport fisher himself, heard
various testimony. In the end, his ruling was clear. Boldt
upheld treaty-reserved rights, including the right to half
of the harvestable salmon returning to Washington waters
every year, and established the tribes as co-managers of
the salmon resource.
A few years later, in what’s now referred to as Boldt
Phase II, the width of the states’ responsibilities to water
quality spread even further. In 1980, the 9th Circuit Court
of Appeals ruled Washington had an obligation to take
“reasonable steps” to protect fish habitat. It decided that
FEATURE
the state of Washington has an
obligation to protect fish habitat,
ensuring the tribes’ rights to fish
in perpetuity. But it wasn’t that
simple. This ruling was debated,
and the court decided that the
tribes needed to show an example
proving that the state had destroyed salmon habitat.
WL
surfaces between farms and regulatory agencies. Whether dealing
with spray buffers or manure
management, the regulators and
• WAWG urges state and federal agencies to
conservation districts are at the
utilize voluntary, incentive-based conservahelm of water quality in agricultion practices when regulating the Clean
ture. The Washington departWater and Clean Air acts, rather than issuing
ments of Ecology and Agriculture
regional or statewide mandates.
have pledged to work with their
•
W
AWG
recognizes
NRCS,
state
conservation
partner conservation agency, the
In 2001, the tribes filed a federal
commission and local conservation districts
State Conservation Commission,
lawsuit claiming that thousands
as the authorities in conservation technical
to manage water quality within
of culverts used in state roads and
guidance throughout the state and urges
highways choked off salmon runs.
agriculture. In 2011, the directors
The federal court agreed. The
of the three agencies agreed to
state and federal regulators to also recogcourt declared “that the right of
work on a coordinated plan, using
nize them as the authorities.
taking fish, secured to the tribes
stakeholder input, to address wain the Stevens Treaties, imposes
ter quality in the state. They called
a duty upon the state to refrain from building or operatthis effort the “3 Directors Talks.”
ing culverts under state-maintained roads that hinder
At a recent House and Senate joint ag committee
fish passage and thereby diminish the number of fish that
work session, the three directors agreed that the prowould otherwise be available for Tribal harvest. This decicess has been difficult, especially when trying to clarify
sion also implied that the state needed to address storm
each agency’s role and responsibility in water quality
water, point source pollution and nonpoint source polluregulation. Inconsistency between the agencies when
tion. In the past 15 years, there has been pressure from the
dealing with landowners has also been a major concern
tribes to increase regulation of nonpoint source pollution.
of the Conservation Commission. The Department of
Nonpoint source pollution is the category farming potenAgriculture agreed that conservation districts and state
tially falls under.
and federal agencies must be on the same page. Ecology
In addition to the state of Washington’s responsiagreed that this issue has a very complicated landscape—
bility, federal agencies such as the Environmental
environmentally, institutionally, culturally and politically.
Protection Agency, National Oceanic and Atmospheric
Ecology also said they have a challenge to effectively
Administration and U.S. Department of Agriculture also
coordinate regulatory responsibilities with voluntary/
have a “Treaty trust” responsibility to the tribes. They
incentive-based programs. Ecology claimed that there is
must ensure that salmon habitat is not destroyed on behalf
insufficient implementation of best management practices
of the tribes.
(BMPs) that achieve clean water.
Why does this matter to farmers? These decisions enThe directors laid out their plan to essentially build two
sured that the tribes have a strong seat at the table in water
divisions
between the three agencies. Team 1 will focus on
quality enforcement within Washington state. They have
preparing a practical definition of “substantial potential to
the ability to pressure state and federal agencies. In their
pollute” and establish clearer design specification for wa2012 State of Our Watersheds report, the Northwest Indian
ter quality BMPs. Team 2 will focus on landowner engageFisheries Commission targeted agriculture as a main culment and implementation activities, including working on
prit for impairing salmon recovery:
watershed strategy and monitoring BMP implementation.
“Two key limiting factors in chinook recovery are human
The directors hope to continue working to clarify their
modifications to floodplains and the loss of freshwater wetlands.
individual roles and responsibilities and will continue
Agricultural practices have played a significant role in contribmaking system improvements.
uting to these limiting factors by removing trees, diking and
Important WAWG
resolutions for water quality:
draining. These actions have resulted in a loss of stream channels,
wetlands, stream buffers, increased sediment and pollution in the
form of runoff from agricultural activities.”
Water quality and the farms
As the majority of livestock and crop farmers continually strive to improve their practices and keep the waters
of Washington clean, water quality is always a topic that
Water quality and WAWG
The Washington Association of Wheat Growers
(WAWG) has a very clear stance on how best to handle
water and air quality within the grain farmers’ realm.
WAWG believes that voluntary, incentive-based programs
not only work to improve water quality in farm country,
but that they also allow farm country to thrive. WAWG beWHEAT LIFE JANUARY 2013 21
WL
FEATURE
lieves that these voluntary programs
work better than mandates or heavyhanded regulation.
“Farmers want clean water, just
like everyone else,” explained
WAWG’s Vice President and Benton
County farmer, Nicole Berg. “We
have children. We like to eat fish. We
drink water. No farmer wakes up
in the morning and says ‘I think I’m
going to go pollute today.’ We also
know what works best on our land
to prevent erosion. What works for
our farm may not work for a farm
30 miles away. That’s why we need
flexible, incentive-based programs to
make the best decisions in conservation.” Berg believes regulation
should be used as a last resort for
those who continuously pollute and
refuse to change their practices.
PLOWS
In the spring of 2012, Ecology
completed a visual study on direct
seeding by wheat growers and
the impacts to streams and water
quality in Spokane and Whitman
counties. State water quality law
requires that landowners prevent
all pollution to Washington’s lakes,
rivers and streams. Ecology believes
the best combination of strategies
appears to be the use of direct seeding with a ribbon of buffer between
farmed land and the water. WAWG
is currently communicating with
Ecology to find the best solution for
both farmers and water quality.
For decades, Washington wheat
farmers have undertaken farm
practices and farmer education that
have resulted in real improvements
in the environment while building
the state into one of the nation’s largest wheat producers with a global
reach. Voluntary, incentive-based
programs are funded by state, federal and farmer dollars to improve
air and water quality throughout
our lands. They protect water. They
protect fish. They protect farms.
Durable, high clearance
plows from 3 to 14
bottoms.
Built for Your
SOIL PRODUCTIVITY
www.salfordmachine.com • 1-866-442-1293
DIESEL & MACHINE, INC.
227 20th St. North, Lewiston, ID 83501
Call Today! 208-743-7171
IT DOESN’T COST, IT PAYS!
● IMPROVED EMERGENCE
● ENHANCED ROOT DEVELOPMENT
● INCREASED YIELD OF 5%
MINIMAL COST WITH MAXIMUM RETURN!
YOU’LL BE HARD PRESSED TO FIND
670 HORSES THIS WELL TRAINED
PROTECT MORE ACRES
PER HOUR
PROTECT MORE
ACRES PER HOUR
Choose New Holland T9 Series 4WD tractors, and not only do you get powerful
new engines with EcoBlue™ technology to meet stringent Tier 4A emissions
standards, you also get the award-winning Sidewinder™ II armrest, the largest cab
in the industry and high-performance choices like optional MegaFlow™ hydraulics.
NewYou
Guardian™
fromneed
Newwith
Holland
allow youyou
to take
full control of
get the sprayers
power you
the comfort
want.
PROTECT MORE ACRES
PER HOUR
your spraying schedule. With the industry’s highest horsepower, largest tank size,
smoothest suspension,
highest ground
clearance
and tightest turning radius, Guardian
BEST-IN-CLASS
POWER
AND PERFORMANCE
INDUSTRY-LEADING
HYDRAULIC
FLOW
sprayers
quickly protect more
of your acres
perAND
hourPERFORMANCE
for maximum productivity.
INDUSTRY-FIRST COMORT RIDE TM CAB SUSPENSION OPTION
THREE
FRONT BOOM MODELS
FROM 240
TOCOMPACTION
365 HP
SmartTrax PROVIDES INCREASED
PRODUCTIVITY
BY REDUCING
SOIL
AND SLIPPAGE
MOST DURABLE TRACK SYSTEM AVAILABLE
WITHMODELS
LARGER,
HEAVY
TWO REAR BOOM
– 240
ANDDUTY
275 HPCOMPONENTS AND BELTS
New PROVIDES
Guardian™
sprayers
from
you
to take
control of
SmartTrax
LONG
TRACK
LIFENew
FOR Holland
SEVERALallow
GENERATIONS
OFfull
TRACTORS
BOOM WIDTHS UP TO 120 FEET
your spraying schedule. With the industry’s highest horsepower, largest tank size,
TANK
SIZES UP
TO 1,600 and
GALLONS
smoothest suspension, highest
ground
clearance
tightest turning radius, Guardian
sprayers quickly protectQUIET,
more ROOMY,
of your COMFORTABLE
acres per hourCAB
for maximum productivity.
S.S.EQUIPMENT
Equipment
THREE FRONT BOOM MODELS FROM 240 TO 365 HP
TWO
REAR
BOOM CONVENIENT
MODELS – 240 AND
275 HP
NOW SERVING YOU
FROM
ELEVEN
SUPER
STORE LOCATIONS
Pasco
509-547-1795
Walla Walla
BOOM WIDTHS UP TO 120 FEET
Othello
Lakeview
Quincy
TANK SIZES UP TOLakeview
1,600 GALLONS
509-488-9607
541-947-2188
541-947-2188
509-787-3595
QUIET, ROOMY, COMFORTABLE CAB
ChristmasS.S.
Valley
Equipment Hermiston
Christmas
Valley
1491 Dell Ave.
541-576-3026
541-576-3026
541-567-3001
Walla Walla, WA 99263
(509) 522-9800
Sunnyside
www.sseqinc.com
LaGrande
509-522-9800
541-963-8144
Hines
Moses Lake
Hines
509-764-8447 541-573-1280
541-573-1280
509-836-0602
www.sseqinc.com
Also in stock: Degelman Harrows
Order
from your
local seed dealer.
(509) 397-4362
www.seedlife.com
TAX-FREE INCOME
FOR YOUR RETIREMENT
Tax-free income is the best gift you can give yourself at retirement.
Converting to a Roth Individual Retirement Account (IRA) from a
traditional IRA allows for tax-free accumulation as well as tax-free withdrawals in retirement – which means you don’t have to worry as much
about what income tax rates will be in the future.
There are tax considerations and other factors that determine whether
converting to a Roth IRA is right for you.
Edward Jones, its employees and financial advisors cannot provide
tax or legal advice. Please consult your attorney or qualified tax advisor
regarding your situation.
© 2012 CNH America LLC. New Holland is a registered trademark of CNH America LLC.
NOT Your Average Real Estate Team
S.S. Equipment
1491 Dell Ave.
Walla Walla, WA 99263
(509) 522-9800
www.sseqinc.com
© 2012 CNH America LLC. New Holland is a registered trademark of CNH America LLC.
Mark Grant
509-520-1906
Call today to schedule an appointment to learn more. We’ll discuss your
retirement goals to help determine if a Roth IRA makes sense for you.
Ryan Brault AAMS®
Financial Advisor
3616 W. Court St. Suite 1
Pasco, WA 99301
509-545-8121
888-545-8126
Jay Mlazgar AAMS®
Financial Advisor
609 S. Washington
Suite 203
Moscow, ID 83843
208-882-1234
Terry A. Sliger
Financial Advisor
Brian E. Bailey AAMS®
Financial Advisor
Ben Buchert
Financial Advisor
Chris Grover AAMS®
Financial Advisor
1329 Aaron Drive
Richland WA 99352
509-943-2920
888-943-2920
Blaine Bickelhaupt
509-520-5280
Knowledge • Experience • Dedication
Our wheat farming heritage goes back 5 generations.
Mark’s experience includes years with NW Farm Credit,
giving him an excellent understanding of ag finance
and farm programs. Blaine’s farming experience and 20
plus years working in ag real estate brings an impressive
knowledge and skills set.
Whether Buying Or Selling–Put Us To Work For You!
303 Bridge Street Suite 3
Clarkston, WA 99403
509-758-8731
866-758-9595
348 SW First Street
Pendleton OR 97801
541-278-1200
800-441-1240
1835 First Street
Cheney WA 99004
509-235-4920
866-235-4920
Blue Mountain Realtors
509-382-2020
View our farm listings at www.WindermereDayton.com
WL
FEATURE
WSDA:
It’s not just
another state agency
By Trista Crossley
Sometimes it’s easy to forget how important agriculture
is to Washington’s economy. Even though producers only
make up about 2 percent of the state’s population, the
economic numbers speak for themselves:
• Agriculture produces crops and livestock valued at $9
billion.
take time away from what you are trying to do, which is to
produce crops.
“Our responsibility is to ensure the quality and integrity
of all the crops in the state, including wheat. We spend a
lot of time and inspection in those activities. That contributes to us having high quality products that are recognized around the world. Even though, in general, people
• Washington state is home to
39,500 farms covering 14.9
million acres.
• Washington is second only to
California in crop diversity.
• Agriculture is responsible for
12 to 14 percent of the state’s
economy.
• Agriculture employs more
than 160,000 people.
And in the middle of it all sits
the Washington State Department
of Agriculture (WSDA).
“Agriculture touches every part
of the state,” WSDA Director Dan
Newhouse explained. “You’ll find
agriculture in every community,
in just about every industry. Even
in cities like Seattle, agriculture
Photo by Zach Mazur of Washington State Magazine
has an impact on the economy
WSDA Director Dan Newhouse on his Sunnyside farm.
through such things as exporting
or in food production. Washington is truly an agricultural
may not like the word ‘regulatory,’ it contributes positively
state.”
when the kinds of standards that we have in this state are
The WSDA is responsible for assuring the safety of the
state’s food supply; overseeing the distribution, use and
disposal of pesticides and fertilizers; protecting the state’s
natural resources; and facilitating the movement of agricultural products in domestic and international markets.
The WSDA is also responsible for regulating certain farming practices, such as dairy nutrient plans, that make some
people fume.
“I am a farmer myself, so I understand that,” he said.
“No one likes added regulations. They cost money and
met. We can compete with anybody in the world.”
Newhouse took the reins at the WSDA in 2009 at the request of Democratic Governor Christine Gregoire, despite
the fact that, at the time, he was a four-term, Republican
representative. Besides being well known in Olympia,
Newhouse is also a farmer himself. Every weekend, he
travels three hours south to Sunnyside to work on his 600acre farm where he raises hops, tree fruit and alfalfa.
“It’s not easy, but I’ve got some great people working
with me on the farm. I have long-term employees that
Transition Planning - Asset Protection
Getting the next generation ready in today’s environment
2013 Spokane Ag Expo
Farm Forum Schedule
Other Brock Law Firm Seminars Coming Up:
Seminars held in the Doubletree Hotel Ballroom,
connected to the Spokane Convention Center
Tuesday, February 5
Noon, 1:30 pm and 3 pm
Wednesday, February 6
10:30 am, Noon, 1:30 pm and 3 pm
For specific subjects and times, refer to the listings at Ag Expo Show
Pasco, Wash.
Wednesday, January 9, 8:30 am
The Red Lion Hotel
Quincy, Wash.
Tuesday, January 22, 8:30 am
Grant Co. Fire District #3
Dayton, Wash.
Thursday, January 24, 8:30 am
The Weinhard Hotel
Kittitas, Wash.
Wednesday, February 20, 10am-12pm
Kern Company
Over 40 Years Serving Inland Northwest Farming Clients
Corey F. Brock
Spokane-Kennewick-Moses Lake
509-622-4707
Norman D. Brock
Davenport-Ritzville (by appointment)
509-725-3101
WL
FEATURE
don’t have to have constant supervision. My wife is a huge
partner in the farming operation. My son has come back to
farm—that is fun and very gratifying and certainly helps
me to be able to be in Olympia. It is a family operation; my
brother is involved in the farm as well.”
Besides being a regulatory agency, the WSDA also represents agriculture in less obvious ways.
“We are a voice for agriculture in forums that aren’t
typically seen, in government-to-government missions,
between countries or state governments,” Newhouse said.
“We make sure that they treat our ag industry fairly.”
“Our responsibility is to ensure the quality
and integrity of all the crops in the state,
including wheat. We spend a lot of time
and inspection in those activities. That
contributes to us having high quality
products that are recognized around the
world.”
—Dan Newhouse, director
Washington State Department of Agriculture
Wheat, the number three crop in the state in terms of
value, is heavily dependent on exports, so protecting and
growing those markets is another area where the WSDA
has a presence, working through its international marketing division. Newhouse explained that many countries
prefer working with governments, rather than trade
groups, when dealing with import/export issues.
“The wheat industry has a very strong commission
that has done a great job of promoting wheat around the
world, and we work in partnership with the commission.”
Newhouse said, adding that politics is usually a factor
when dealing with exports. “To be able to certify that the
standards required by any country on any products entering their borders are being met, we take away the ability
of foreign countries to use wheat or any products as political fodder for ensnaring trade or markets.”
Besides dealing with international pressures, the WSDA
also faces pressure at home. Newhouse pointed out that
there are a lot of criticisms from outside sources regarding
pesticides used in agriculture, keeping the state’s water
clean and how natural resources are used. One of the
department’s main jobs, he said, is to make sure that those
resources and tools are used responsibly and that policies
don’t hinder a farmer’s ability to make a living.
“There’s a delicate balance there,” he said. “Farmers, in
my opinion, are the original conservationists. We understand better than anyone how important it is to protect the
natural resources we are so dependent on, such as the air
and the water. Those things are vital. Every farm I know
is a multi-generational business. They are looking at the
next generation and want to make sure that the farm will
continue for their sons and daughters.”
Newhouse said that one of the things that sets his
department apart from other state agencies is the fact
that so many of his employees come from farm families.
That means, he explained, that those employees usually
understand how people will be affected by the WSDA’s
regulations.
“We’ve got kind of an unwritten rule that the way
we go about business is different from other agencies,”
Newhouse said. “Our goal is not to fine or penalize
producers into submission to the rules. Certainly we have
penalties for breaking the law, but our first objective is
to work with producers to help them understand what
is required of them. I think we can get a lot more accomplished by working in a positive way so people see a reason for what is expected of them. I think we’ll get better
compliance then coming in and writing tickets.”
Another goal of the WSDA is to spread the story of
agriculture. Newhouse agreed that sometimes the divide
between the east side and west side of the state seems
rather large. In 2013, WSDA will celebrate its 100th birthday, and Newhouse said they will be using that occasion
to bridge the gap between the two sides of the state by
educating people about agriculture through social media
and the WSDA website.
“We want people to appreciate where the food comes
from, and all the things necessary for that to happen.” He
pointed out that there is lots of agriculture on the west
side of the state as well, it is just different, not only in the
crops that are grown, but the size of the farming operations. “We are working on the importance of agriculture
and recognizing how important it is to every person in the
state.”
Newhouse also said that it is important for people to
get involved, whether that is through the grower groups
or through local and state politics. He said that while the
grower groups have been very effective at carrying their
members’ messages to Olympia, those groups can’t just
be satisfied with what they’ve done in the past, because
EASTERN OREGON FARMS
Umatilla County, Pendleton,OR
2835.21 acres, rare find winter cattle ranch with 577 acres of wheat
ground planted to grass. Winter feed source of 120 irrigated acres, 40
acres of sub-land, 2 older homes. Great fishing for steelhead, salmon
and trout. Good hunting for deer, turkey, pheasant, chukar, huns.
Good water fowl hunting for ducks and geese.
$1,650,000 #WL02210
Umatilla County Milton-Freewater,OR
1,038 acres located near north fork of the Walla Walla River. 238
acres CRP through 2013 with balance in range. Home, horse/livestock
barn. LOP tags.
$520,000 #WL01012
Umatilla County, Pilot Rock,OR
1998 (+/-) acres of mountain, pasture and timberland. Has cabin with
pond and trees for a relaxed setting. Used as summer grazing unit.
Great views and recreation. Live stream with springs and ponds.
Good hunting for big game deer and elk, with upland birds.
$985,000 #WL01511
Come and go
as you please
Union County, Elgin,OR
G
N
I
D
N
PE
NE Oregon mountain and timber tract that borders Grande Ronde
River. 477+ acres that has merchantable timber with recent cruise.
Very private with great views. LOP tags for hunting. Big game
hunting, fishing on river. Salmon, steelhead, trout.
$550,000 #WL03511
Gilliam County, Arlington,OR
Located in Gilliam County, the Blalock Canyon Farm contains 195
total acres of which 140 acres are irrigated. Contains 3 Zimmatic
pivots and 2 wheellines. Includes main residence, guest quarters,
horse/livestock barn, shop and hay barn. Water is provided from
agricultural well with 250 HP motor.
$685,000 #WL00912
www.whitneylandcompany.com




 



Leave the rest to us
The next time you are planning
a meeting, choose the Spokane
Airport Ramada, where you can
spend more time meeting than
traveling. Our airport location
makes it easy to come
and go as you please.
 


  


 


 

WL
FEATURE
the faces in the legislature keep
changing.
“The challenge to the groups is
to just keep telling their story and
making their presence known over
here. When legislatures hear directly
from people who will be impacted
by the decisions that they will make,
that is very powerful.”
Independent seeding tool,
bolts up to the back of
the Lange knife.
Places NH3/liquid
fertlizer 1-1/2” to
2” below and
between paired
row seed
placement.
Universal adaptor
accepts 3/8” or
1/2” NH3
hoses.
Proven maximum sealing for anhydrous
ammonia regardless of soil conditions.
Our replacable CC-240 carbide
tip provides extended, durable wear.
Available on all Lange knives.
Newhouse acknowledged that getting involved takes a lot of commitment, but said that it is vital to have
real people, real farmers talking to
the legislature.
“Things are changing here. There’s
a new governor and a new administration. There’s lots of questions in
the agriculture community about
where they are going to go. It is so
critical that ag is front and center in
making sure that people understand
the impact of any decisions that are
being considered.”
Spray Center eleCtroniCS inC SlinGSHot rtK CoVeraGe
And beyond the grower groups,
Newhouse encouraged producers to
simply get involved in any avenues
that allow them input on decisions
that are being made.
“Farms are all consuming. There
is always some thing to do, and it
usually needed to be done yesterday.
It is a really difficult decision to leave
the farm and help work on things
that are maybe a little difficult to see
the immediate impact of, but in the
long term, will have a tremendous
impact on how we make a living.”
For more information on WSDA
and its 100th birthday, visit their
website at agr.wa.gov/.
Spray Center Electronics
Spray Center Electronics Inc
9721 W Flight Drive
Spokane WA 99224
800-477-7729
www.spraycenter.com
9721 W Flight Dr
Spokane, WA 99224
800 477-7729
www.spraycenter.com
Some with CRP, all with good hunting.
Many to choose from, 40 acres to 3000
acres or more. One with 1000 acre lease
farmland included. Tekoa/Plummer area
and Benewah/Kootenai County.
Call Randy Henley:
208-641-5825
Or for complete details go
to: www.randyhenley.com
It’s never
too early
No matter what stage of life you’re in, it’s
never too early to start planning for
retirement. Let us help you balance your
need to protect what you have with your
desire to build for the future.
Contact your local COUNTRY
Paul Koethke, LUTCF
Moses Lake, Washington
(800) 659-9259
The Best For
Drilling & Tilling
• 2-Rank Drill Re-Designed for the Palouse
• 7.5” Paired Rows with
Steerable Seed Cart
• Precision Placement of
Seed & Fertilizer
• Quality Built To Last
Years of Service
Wayne Larson
Walla Walla, Washington
(509) 525-9106
James Penning, LUTCF
Yakima, Washington
(800) 741-6135
Laurie Mooney
Wenatchee, Washington
(509) 663-3800
Joe Shannon
Ellensburg, Washington
(509) 933-3000
The Joker
The ultimate implement
for residue and seedbed preparation!
• Superior Residue Management • Consistent Seedbed
Preparation • Works in wet or dry conditions
• Amazing Trash Capacity-No Clumps
• 3-Point or Pull-Type Models
NORTH PINE AG EQUIPMENT, INC.
2007 E. Babb Road Rosalia, Washington
509-994-2133 or [email protected]
0311-540HO
WL
FEATURE
Avoid falling into the
WINTER Blues
By Mary Ruth Dilling
I
t never fails. The new calendar turns over and before
you know it, you are overwhelmed with the feeling of
“blah.” You know by looking at that new calendar that it
will be a while yet before you can get busy planting those
seeds in the ground and going forward in the new season.
So while this time of winter could signify a time to rest, relax and enjoy the good harvest you finished, it also brings
to many a “can’t get anything done” feeling, a “just don’t
feel right” time or a “hate this time of year.”
•S
he takes farming classes from Washington State
University and adapts her business plan.
•A
ttends conferences and workshops (beginning in the
fall).
•O
rganizes all her ag-related stuff she has read
throughout the year.
•O
rganizes the tool room. Fixes what needs to be fixed/
replaced.
Winter does not have to be filled with the feelings of
“blah” or “ho-hums.” It does not have to be a depressed,
“let’s just get through this” time of year. Instead, it can be
productive. It can give you a time to plan your goals for
the next year. Following are some ideas from a variety of
farmers from Washington and across the country.
Vicky, another Washington farmer, throws in about preparing for your taxes by making sure your books are all in
order. She also spends time spinning and knitting.
Nikki, from Washington, has a wide variety of activities to make the winter season a time of great beginnings.
Some of the things that Nikki does are:
One wheat farmer said, “There’s always a lot of fixin’ to
do. Figure taxes and spend money before the end of the
year; that’s always fun.” Another farmer likes to “dabble in
work” during the winter. He makes entertainment centers,
bookshelves and cabinets. Another farmer from Iowa enjoys spending his winters learning foreign languages. To
date, he has studied sign language, German and French.
This year he is working on Scots Gaelic. He has already
learned three other dialects of Gaelic. He says he can
speak at least part of 12 different languages. Learning
a foreign language is a great way to keep
the brain active and plastic. Mulligan,
another farmer from Iowa, uses winter to donate
blood and plasma. He is almost at the five gallon mark
right now with his donations.
• Plans for the coming year by scanning those seed
catalogs.
Jo, a Washington farmer, likes to enjoy the break in the
season by catching up on the latest releases. She enjoys
listening to books on tape.
S
o winter time provides a
great opportunity for farmers across the nation to pursue other interests. Activities range
from upkeep of farm equipment to updating
a business plan to doing community service
Marketing &
Manufacturing, Inc.
Seed, Fertilizer & Chemical Application Equipment
AGPRO designs the drill to YOUR specs…..
Three Drill Frame Designs! Two Opener Styles!
Four Seed/Fertilizer Point Options! Seed Boxes from 70-210 bushel!
New AGPRO drill frame with sixteen
flotation tires coupled to a commodity cart with a steerable axle.
AGPRO frame with ultra-low
disturbance Cross Slot Openers and high flotation tires.
Standard AGPRO two or three
rank drill frame with high
flotation tires.
800-492-2212
Call Jerry Harper or Wayne Neace for details at
1112 Airway Ave.
Email: [email protected]
Lewiston, ID 893501
www.agproinc.com
CLASS 8 TRUCKS
521 N. EASTERN • SPOKANE, WA
(509) 534-9088 • [email protected]
TRAILERS, TRAILERS
AND MORE TRAILERS
IN STOCK!
Your ad
could be here
getting read by
thousands of Pacific
Northwest farmers and
growers. What are you
waiting for?
Call Kevin Gaffney
at (509) 235-2715
J&M Fabrication
• Custom Welding • Tool Boxes
• Fuel Tanks • Equipment Repairs
• Custom-made Combine Parts
• Custom Truck Bodies & Flatbeds
• On-Site Millwright work
• All types of Custom Design Work
J&M Fabrication
Call Justin Miller Today!
509-235-5711 or 509-993-2890 (cell)
Cheney, WA
Clean Grain &
Return Elevators
12 gauge construction, 2.5
times stronger than EOM.
For newer model Case IH
and JD models.
We have multiple brands of top
quality trailers. Grain trailers,
flatbed trailers, dolly trailers,
curtain side trailers, livestock
trailers, low boy trailers, even
reefer units are in stock now!
Marc B. Lange (509) 991-9088
Gary Evans (509) 456-2687
Butch Johnson (509) 990-3153
NOT JUST TRUCKS,
TRAILERS TOO!
www.class8trucksales.com
WL
FEATURE
to increasing knowledge. There are a number of people
who would love to do these things, but the winter blahs
just seem to be too strong. Maybe you are one of those
who suffer from a lack of sunshine from living in the
Pacific Northwest. There are a number of things one can
do to improve this. People get the ”winter sadness” from
insufficient light which causes a disruption in hormones.
When the pineal gland thinks it is dark, it increases the
production of melatonin, a hormone which can make you
sleepy. This hormonal increase can cause a change in appetite, weight gain, change in sleep patterns, a tendency to
isolate, lack of concentration, grouchiness and fatigue.
To combat these symptoms here are some things to try:
• Make sure you get outside on a daily basis. For best
results, it is better to get outside in the sunlight when
you first get up in the morning. This will help reset
your melatonin levels in the brain. Being outside is
beneficial even if there is no direct sunlight.
ing the mind by reading books, taking a local college
course or volunteering to help those less fortunate.
•U
se the winter time to strengthen those social ties.
Getting together with friends will help lessen the blah
feelings.
The winter blahs do not have to get you down. There are
many healthy options to keep a body going strong during
this time of year. Take care of your body, get involved with
others, and the blues will fade away.
Proudly Serving The Inland
Northwest Farm Community
For More Than 70 Years
• Change your light bulbs to full-spectrum light. You
can just add one of these bulbs in your living room.
It will be enough of a change to make a difference. It
would not be advisable to put one in your bedroom as
it could interfere with sleep patterns. There are also
“light boxes” one can purchase. Sitting in front of the
light box for 30 minutes a day will give you the same
results.
• Exercise. This will increase the endorphins in the
brain which is a feel-good neurotransmitter. Thirty
minutes a day for a minimum of three times a week
will help decrease the winter blues.
• Take your vitamins. Vitamin D, the “sunshine” vitamin, is often deficient in the winter. Experts recommend at least 1,000 IUs a day. This writer used to
suffer from the winter blues. What she did was begin
the day with a protein shake with a tablespoon of fish
oil with vitamin D added. Within a few days, the winter blues were gone. Other vitamins people are often
short of in the winter are the B vitamins. These help a
person handle stress better. Deficiencies of B vitamins
are often linked to emotional imbalances.
• Eat a balanced diet, making sure you get all your
fruits and vegetables. Be sure to include plenty of
water. Dehydration can cause feelings of fatigue and a
lack of concentration. If wood heat is used, be sure to
compensate by drinking additional water.
• Take needed precautions for your health by washing
your hands often. If you start feeling a cold coming on,
use extra vitamin C to shorten its life.
• Follow the guidelines of other farmers by improv32 WHEAT LIFE JANUARY 2013
• Farm Corporations • Real Estate
• Water Rights • Farm Estate Planning
• Elder Law • Probate
• Agribusiness Planning
Visit our booth at Spokane Ag Expo
for prizes and special drawings
Davenport, WA
509-725-4100
Odessa, WA
509-982-2672
Ritzville, WA
509-659-0425
Fairfield, WA
509-283-4223
Rosalia, WA
509-523-5809
St. John, WA
509-684-3683
.
choppers
fertilizer applicators
.
harvesters
.
planters
.
rippers
CHROME ALLOY
WEAR PPARTS
ARTS
R & H Machine offers an extensive line of
cultivator points and shovels to fit S-tine, KMC,
Triple K, and C shanks. All are cast of high
Chrome Alloy to give extremely long life in
abrasive soils. Our parts outwear standard or
hardfaced points by an average of twenty times.
applicators
Extremely long wearing
Save costly downtime
Cut replacement costs
Uses standard hex-head bolt
Shock absorbing washers included
** Please call for a detailed catalog **
R & H MACHINE . 115 ROEDEL AVE . CALDWELL ID 83605
1-800-321-6568 . www.rhmachine.com . 208-459-1507
. chisels . harvesters . planters
. choppers . cultivators . fertilizer
Maintain uniform tillage
.
applicators
rod-weeders
.
. rod-weeders . choppers . cultivators . fertilizer
. chisels . harvesters . planters . rippers
chisels
chisels
c hisels
.
the Standard for Wear!
. Setting
.
.
.
. . .
chisels
choppers
fertilizer applicators
harvesters
planters
rippers
Sales
Service
Satisfaction
- Since 1980 -
32 Years
Years ofof Service
30
Service
Combines • Tractors • Grain Augers • Hay Equipment •
Tillage Equipment • Sprayers • Harrows • Drills & More
Special Low Interest Rates Available OAC
•
•
•
•
•
•
•
Crop
Crop Protection
Protection
Seed
Seed &
& Feed
Feed
Fertilizer
Fertilizer Products
Products &
& Applicators
Applicators
Expanded
Expanded Parts
Parts Inventory
Inventory
Plastic
Plastic Storage
Storage Tanks
Tanks
Meridian
Meridian Bins
Bins Storage
Storage Tanks
Tanks
Pumps,
Pumps, Fittings,
Fittings, Hoses
Hoses &
& More
More
locations toto better serve
22locations
serve you!
you!
Service: Greg Mayer
Parts: Casey Jones
Visit us online: www.jtii.com
Terry Largent 509-336-1344 • Dan Helbling 509-336-1346
Bob Kerns 509-336-1342
©2010 CNH America LLC. All rights reserved. Case IH is a registered
trademark of CNH America LLC. CNH Capital is a trademark of CNH
America LLC. www.caseih.com
Cheney,
Wilbur,
Washington
Cheney,Washington
Wash.
Wilbur,
Wash.
17005W.
W.SR
SR904
904 555 N.E.
555
N.E.
17005
Main
St.Main St.
509-235-2006
509-647-5365
509-235-2006
509-647-5365
1-800-782-7786
www.AgEnterprise.com
WL PROFILES
Jeff Dema of MachineryLink
Corporate GM finds bigger isn’t always better
By Kevin Gaffney
Many business management executives follow a career
path where they begin with positions at smaller companies, eventually working their way up the corporate ladder
to larger corporations later in their career.
Jeff Dema, general manager and vice president of producer markets for MachineryLink, moved in the opposite
direction when he joined the nationwide combine leasing
firm in May 2012.
Born in South Carolina to immigrant parents from
Europe, Dema was raised in Kansas. He has made his
home in the Kansas City area for the past 20 years. Dema
earned his undergraduate degree from Pittsburg State
University in Kansas. Dema then served nearly five years
in the military with the 101st Airborne Division.
Following his service, Dema earned an MBA at
Vanderbilt University before taking a position with
General Electric in Louisville, Ky.
Dema followed that up working for Hallmark Cards
for 19 years. His most recent position at Hallmark was
managing a staff of more than 1,100 employees operating
a 1.75-million-square-foot distribution facility in Liberty,
Mo.
“I had been employed exclusively at larger companies before MachineryLink,” said Dema. “I had always
dreamed about working at a smaller company, where the
conditions were more nimble, the workplace would move
a little faster, and there would not be as much bureaucracy
in place.
“I found just that when I joined MachineryLink. I signed
on, and it has been a great ride ever since.
“I am responsible for sales and operations,” explained
Dema. “This includes managing the fleet and making sure
the machines are transported in a timely manner to our
customers. I also oversee the sales force, selling the value
of our services to prospects.
“MachineryLink just completed its 12th harvest season,
and the business has grown over the past decade. I believe
we have a strong value proposition: Rather than tying
up so much money in an expensive machine that sits idle
PROFILES
approximately 11 months out of the year, put your money
into something else. Whether that might be other farm
implements or to expand the farming operation with more
land, leasing a combine makes good business sense.”
Dema believes that high commodity prices over the past
five years, along with tax incentives available in the federal
farm bill, have made combine purchases a more attractive
option versus leasing for some farm operations.
That is not a fatal blow to the business model, however,
as Dema estimates that about 40 percent of their leasing
clients own at least one combine of their own.
MachineryLink rents a fleet of more than 200 machines
each harvest season. Their customers harvest more than
two million acres of crops across 30 states. Their fleet is
more John Deere green than Case IH red, but they strive
to accommodate whatever the customer desires, including
hillside machines for the Pacific Northwest. Along with
timely delivery of machines to producers, another very
important factor is proper machinery maintenance.
“We take maintenance very seriously, and we provide
premier customer service and maintenance support for
our customers. We also have agreements with local and
regional dealerships throughout our geographic footprint to cover maintenance when that makes sense,” said
Dema. “Most dealers are happy to team up with us, as
they realize we are not directly in competition with them.
We cooperate to provide our mutual grower customers
with excellent service to help them complete their harvests
in a timely manner. We rely on the dealers for parts and
service work, and it really is a win-win situation.
“When we have a great number of machines rented in
an area, we will set up our own maintenance crews to
ensure timely service in the event of repair problems popping up. We have a true 24/7 harvest maintenance mentality in place. We understand the harvest mode and appreciate that our producers’ paychecks for the entire year hinge
upon a few short weeks of timely operation.
WL
same intense harvest mind-set that the farmers operate
with. We strive to serve them in that same manner.”
Breakdowns happen more rarely than they might with
MachineryLink combines because all machines are put
through a rigorous 400-point inspection process and repaired between rental stops.
“Once a machine is three years or older, the frequency
of maintenance problems increases dramatically,” noted
Dema. “Of course, a MachineryLink combine with 1200
separator hours is not the same as a typical machine with
the same hours. We perform major winter repairs and
maintenance on every combine every year.”
The region with the most rental machines, not surprisingly, is the Midwest. With more acreage than any other
area in the nation, the total size of the combine fleet is determined in great part by how many machines are needed
to service this area each year.
“There are basically two main geographic harvest paths
for our fleet of combines, with four stops each,” explained
Dema. “The first path begins in Texas and Oklahoma and
moves from there into Nebraska and Colorado. Then it’s
on to the Pacific Northwest and the Dakotas before hitting
the row-crop states of the Midwest. In the other path, the
first and fourth stops are the same, and we also hit the
The John Deere FarmSight™
Machine Optimization
Logistics Optimization
Ag Decision Support
“The success of our business depends upon having that
Machine Sync
Sign up now for spring custom seeding
44 ft. Drill w/12” Spacing
Kevin Klein
Sales & Service Rep
509-650-7307
New & used
drills for sale
[email protected]
www.seedmaster.ca
Edwall, Wash.
509-236-2460
❑ Machine-to-machine communication
❑ 10 vehicles can distribute data between
one another within 3-miles
❑ In-field network to share logistics
❑ Combine location and bin-fill status
provided to operator to prioritize
equipment movement
Scan this code to view
❑ Combine operator controls bank out wagon our FarmSight webpage.
position during unloading on the go
For information on Machine Sync
Contact:
Blake Hatch - 509-760-0137
Jim Baergen - 509-681-0233
www.EIIJD.com
WL
PROFILES
southern Texas and Mississippi Delta regions midway
through the season.
“Each state is unique. Kansas has perhaps the biggest
variety of crops, and it is generally part of our first and
second stops of the harvest season.”
MachineryLink rents machines in contracts from as
short as 15 days up to 30 days or longer, depending upon
the harvest region. Some of the leasing options have
separator hour components, others have unlimited hourly
provisions.
Farmers renting combines must provide their own
headers, which has simplified both the transportation of
machinery and additional maintenance issues. With a
wide variance of preferred headers for various crops and
regions, it has been an efficient business method.
ü
Maurer Steel Grain
Trailers
ü
Front and Rear
Aluminum Catwalks
ü
40’ Steel
ü
Spring Ride
ü
Roll Tarp
ü
Highest Ag Hopper
Clearance on the
Market
ü
Buy or lease to own:
ü
Maurer Aluminum
Grain Trailers
ü
$ 2,000.00 Rebate to
you!
ü
42’ Aluminum
ü
Air Ride
ü
Aluminum Outer Rims
ü
Roll Tarp
ü
24.5” Radials
ü
Buy or lease to own:
Connell Grange Supply
$ 5571/yr OAC
ü
Maurer Steel Drop
Deck Trailers
ü
48’ + 5’ Beavertail
ü
Buy or lease to own: ü
$6996/yr OAC
Air Ride Suspension
ü
Triple Ramp
Toll Free…1-888 -453-292 4
Or …1-406-453 -292 4
36 “The most challenging element of my job is dealing with
the problems that weather causes for our combine delivery
scheduling. We have some sophisticated systems for building our transport schedules, but Mother Nature can wreak
havoc with them. Nearly all of our combine transportation
is done by truck, but we are looking into the possibilities
of using rail also, perhaps when the timing of the delivery
$ 7430/yr OAC
For Dema, the most enjoyable part of his job is working
out in the field, literally. “When I have the opportunity to
get out and visit directly with our customers and other
producers who are potential new customers, I really enjoy
that,” said Dema. “There is nothing more rewarding than
having the opportunity to find out more about their challenges and how we might be able to help their operations
to be more effective.
WHEAT LIFE JANUARY 2013
We Deliver
Top Quality
Fuels
• 24-Hour Pumps
• Bulk Fuel Tanks
For Sale
• Farm Hardware
In Stock
• Full Tire Services
• Cattle Equipment
343 S. Columbia • Connell, WA
http://www.connellgrange.com
509-234-2631
is not quite as critical.
“Each year, we know the delivery
plan we develop at the beginning of
the harvest season will be changed.
We just don’t know exactly how
much, or when it will be necessary
to shuffle our scheduling due to
flooding, drought or some other
natural occurrence.”
Dema is very optimistic about
the future of U.S. agriculture. With
an expanding global population
showing an increasing demand for
American crops, he sees the efficiency of the American farmer as a big
plus moving forward. You can find
MachineryLink online at
www.farmlink.com.
Tillage and Planting
Equipment
Introducing the New
Turbo Max
Taking Vertical
Tillage To The MAX
• Adjustable Angle from 0 to 6
degrees on-the-go
• Turbo Coulter blades attack
residue vertically
• 7-1/2” Blade Spacing with
offsetting gangs
Turbo Till
3S-4000 HD 40' Mini-Till Drill
Great Plains Turbo Chisel
2N-3010 30’ No-Till Drill
Flex Harrow
3S-4010 HD 40’ No-Till Drill
Great Plains Disk Harrow
Yield Pro Corn Planter
✓ Quality Seed Products
✓ Commodity Marketing
✓ 23 Locations Plus Rail
& River Terminal Access
✓ Processing & Exporting
Legume Products
Seed Offices:
Fairfield
509-283-2333
Rosalia
509-523-3211
Garfield
509-635-1227
Oakesdale
509-285-5516
Tensed, ID
208-274-4465
For these implements and many more, contact your local Great Plains dealer.
WALTER IMPLEMENT, INC.
CENTRAL MACHINERY SALES
FARM & HOME SUPPLY
Pomeroy, WA — 509-843-3395
MORROW COUNTY GRAIN GROWERS
Wasco, OR — 800-824-7185
MORROW COUNTY GRAIN GROWERS
Lexington, OR — 800-452-7396
FARM EQUIPMENT HEADQUARTERS
Pendleton, OR — 541-276-6222
Odessa, WA — 509-982-2644
Moses Lake, WA — 509-765-1257
Pasco, WA — 509-547-8920
Sunnyside, WA — 509-837-3833
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Derek Stanford
Luis Moscoso
Gary Alexander
J.T. Wilcox
*Marcus Riccelli
Timm Ormsby
Larry Crouse
Matt Shea
Jay Rodne
*Chad Magendanz
Kevin Parker
*Jeff Holy
Shelly Short
Joel Kretz
Brad Klippert
Larry Haler
Susan Fagan
Joe Schmick
Norma Smith
*Dave Hayes
Zack Hudgins
*Steve Bergquist
Cary Condotta
*Brad Hawkins
Judith (Judy) Warnick
*Matt Manweller
Norm Johnson
Charles Ross
Bruce Chandler
David V. Taylor
Maureen Walsh
Terry R. Nealey
*Monica Stonier
Paul Harris
*Brandon Vick
*Liz Pike
Dean Takko
Brian E. Blake
Richard DeBolt
Ed Orcutt
Mary Helen Roberts
Marko Liias
Chris Reykdal
Sam Hunt
Sherry V. Appleton
Drew Hansen
Kevin Van De Wege
Steve Tharinger
D-Bothell
D-Mountlake Terrace
R-Olympia
R-McKenna
D-Spokane
D-Spokane
R-Spokane Valley
R-Spokane Valley
R-Issaquah
R-Issaquah
R-Spokane
R-Spokane
R-Addy
R-Wauconda
R-Kennewick
R-Richland
R-Pullman
R-Colfax
R-Clinton
R-Camano Island
D-Tukwila
D-Renton
R-Wenatchee
R-East Wenatchee
R-Moses Lake
R-Ellensburg
R-Yakima
R-Naches
R-Zillah
R-Moxee
R-Walla Walla
R-Dayton
D-Vancouver
R-Vancouver
R-Battle Ground
R-Camas
D-Longview
D-Longview
R-Chehalis
R-Kalama
D-Edmonds
D-Mukilteo
D-Tumwater
D-Olympia
D-Poulsbo
D-Poulsbo
D-Sequim
D-Sequim
State Representatives
23 (R)
43 (R)
In 1927, the state House
had 97 members: 8
WAWG’s watching:
• Ag tax exemptions
• GMO labeling
• Pesticide regulations
• Clean air/clean
water acts
• Ag research at WSU
• Short-line rail funding
26 (D)
State Senate
55 (D)
State House of Representatives
What the 2013 state
legislature is going to
look like:
Rosemary McAuliffe
Randi Becker
Andy Billig
Mike Padden
*Mark Mullet
Michael Baumgartner
Bob Morton
(retiring in January)
Jerome Delvin
Mark Schoesler
Barbara Bailey
Bob Hasegawa
Linda Evans Parlette
Janéa Holmquist
Curtis King
Jim Honeyford
Mike Hewitt
Don Benton
Ann Rivers
Brian Hatfield
*John E. Braun
Paull Shin
Karen Fraser
Christine Rolfes
James Hargrove
*Freshman legislator
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Bruce Dammeier
Vacant
Jeannie Darneille
Mike Carrell
Steve Conway
Tracey Eide
Pam Roach
Maralyn Chase
Karen Keiser
Sharon Nelson
Tim Sheldon
Jeanne Kohl-Welles
Adam Kline
Nick Harper
Kirk Pearson
Kevin Ranker
Steve Litzow
Doug Ericksen
Ed Murray
Steve Hobbs
Andy Hill
David Frockt
Joe Fain
Rodney Tom
*Annette Cleveland
D-Tacoma
R-Lakewood
D-South Tacoma
D-Federal Way
R-Auburn
D-Shoreline
D-Kent
D-Maury Island
D-Potlach
D-Seattle
D-Seattle
D-Everett
R-Monroe
D-Orcas Island
R-Mercer Island
R-Ferndale
D-Seattle
D-Lake Stevens
R-Redmond
D-Seattle
R-Auburn
D-Bellevue
D-Vancouver
R-Puyallup
Washington’s state
capitol building was
the last state capitol in
R-Richland
R-Ritzville
R-Oak Harbor
D-Seattle
R-Wenatchee
R-Moses Lake
R-Yakima
R-Sunnyside
R-Walla Walla
R-Vancouver
R-Vancouver
D-Raymond
R-Chehalis
D-Edmonds
D-Olympia
D-Kitsap County
D-Hoquiam
D-Bothell
R-Eatonville
D-Spokane
R-Spokane Valley
D-Issaquah
R-Spokane
R-Pierre Lake
State Senators
www.leg.wa.gov
LOOKING
for your district,
state senators or
state representatives?
*Dawn Morrell
Hans Zeiger
Jan Angel
Larry Seaquist
Laurie Jinkins
*Jake Fey
*Steve O’Ban
Tami Green
*David Sawyer
Steve Kirby
*Linda Kochmar
*Roger Freeman
Cathy Dahlquist
Christopher Hurst
Cindy Ryu
Ruth Kagi
Tina Orwall
Dave Upthegrove
Eileen L. Cody
Joe Fitzgibbon
Kathy Haigh
*Drew C. MacEwen
Reuven Carlyle
*Gael Tarleton
Sharon Tomiko Santos
Eric Pettigrew
John McCoy
Mike Sells
Dan Kristiansen
*Elizabeth Scott
Kristine Lytton
Jeff Morris
Marcie Maxwell
Judy Clibborn
Jason Overstreet
Vincent Buys
Jamie Pedersen
Frank Chopp
Hans Dunshee
Mike Hope
Roger Goodman
Larry Springer
Gerry Pollet
*Jessyn Farrell
Mark Hargrove
Pat Sullivan
Ross Hunter
*Cyrus Habib
Sharon Wylie
Jim Moeller
49
48
47
46
45
44
43
42
41
40
39
38
37
36
35
34
33
32
31
30
29
28
27
26
25
D-Puyallup
R-Puyallup
R-Port Orchard
D-Gig Harbor
D-Tacoma
D-Tacoma
R-University Place
D-Lakewood
D-Tacoma
D-Tacoma
R-Federal Way
D-Federal Way
R-Enumclaw
D-Enumclaw
D-Seattle
D-Lake Forest Park
D-Normandy Park
D-Des Moines
D-Seattle
D-Burien
D-Shelton
R-Union
D-Seattle
D-Ballard
D-Seattle
D-Seattle
D-Marysville
D-Everett
R-Snohomish
R-Monroe
D-Anacortes
D-Anacortes
D-Renton
D-Mercer Island
R-Blaine
R-Lynden
D-Seattle
D-Seattle
D-Snohomish
R-Lake Stevens
D-Kirkland
D-Kirkland
D-Seattle
D-Seattle
R-Covington
D-Covington
D-Bellevue
D-Bellevue
D-Vancouver
D-Vancouver
Cathy McMorris Rodgers (R)
District 5 - Ferry, Stevens, Pend Oreille,
Lincoln, Spokane, Whitman, Walla Walla,
Doc Hastings (R)
District 4 - Okanogan, Douglas, Grant,
Adams, Franklin, Benton, Yakima counties
1203 Longworth HOB
Washington, DC 20515
202-225-5816
Jaime Herrera Beutler (R)
District 3 - Pacific, Lewis, Thurston, Wahkiakum, Cowlitz, Clark, Skamania, Klickitat
counties
1130 Longworth HOB
202-225-3536
Rick Larsen (D)
District 2 - Whatcom, San Juan, Skagit,
Island, Snohomish counties
108 Cannon HOB
202-225-2605
*Denny Heck (D)
District 10 - Pierce, Thurston, Shelton counties
Contact information not available yet
Adam Smith (D)
District 9 - Pierce, King, Thurston counties
2402 Rayburn HOB
202-225-8901
Dave Reichert (R)
District 8 - Chelan, Kittitas, Pierce counties
1730 Longworth HOB
202-225-7761
Jim McDermott (D)
District 7 - Snohomish, King counties
1035 Longworth HOB
202-225-3106
*Derek Kilmer (D)
District 6 - Clallam, Jefferson, Grays Harbor,
Mason, Kitsap, Pierce counties
Contact information not available yet
Patty Murray (D)
448 Russell SOB
Washington, D.C. 20510
(202) 224-2621
45 (R)
233 (R)
In 1927, the state Senate had
42 members: 2 Democrats
and 40 Republicans. In
1937, the Senate had 46
members: 41 Democrats and
5 Republicans.
U.S. Senate
53 (D)
201 (D)
U.S. House of Representatives
What the 2013 Congress
is going to look like:
Maria Cantwell (D)
311 Hart SOB
Washington, D.C. 20510
(202) 224-3441
*Suzan DelBene (D)
District 1 - Whatcom, Skagit, Snohomish,
King counties
2329 Rayburn HOB
202-225-6311
Columbia, Garfield, Asotin counties
2421 Rayburn HOB
202-225-2006
U.S. Senators
?
That you can find your federal senator or
representative by going to one of these
sites: www.senate.gov or www.house.gov
the U.S. to be built
with a rotunda.
U.S. Representatives
DID YOU
KNOW
Democrats, 88 Republicans and 1 other. In
1937, the House had 99
members: 93 Democrats
and 6 Republicans.
“I wonder if the snow loves the trees and fields,
that it kisses them so gently? And then it covers
them up snug, you know, with a white quilt;
and perhaps it says “Go to sleep, darlings, till the
summer comes again.”
—Lewis Carroll, Alice’s Adventures in Wonderland
& Through the Looking-Glass
First snow at the Larry Kruger farm near
Davenport. Photo by William Kruger
By Tom Zwainz
Although Dr. Campbell does teach occasional classes
at Washington State University as an adjunct faculty, she
is employed by the Agricultural Research Service of the
U.S. Department of Agriculture. The ARS, as it is known,
is the main research arm of the USDA. It has 18 national
programs, 90 research locations, 800 research projects,
2,200 scientists, 6,600 support staff and a budget of $1.1
billion.
In Eastern Washington, many of the organization’s
functions are performed on WSU’s Pullman campus. In
general, the collaboration between university faculty and
federal scientists is nearly seamless. Most people, including your Washington Grain Commissioners, often make
no distinction between the two entities.
Those of you who grow club wheat probably know
Dr. Campbell as the club wheat breeder. Her actual
title, however, is more long-winded. She is a Research
Geneticist in the Wheat Genetics, Quality Physiology
and Disease Research Unit. As you may gather, it’s a job
description that’s about more than breeding wheat. And
as an ARS scientist, she has a Northwest-size responsibility compared to our WSU-employed wheat breeders who
concentrate on Eastern Washington conditions.
During her 14-year career in Pullman, Dr. Campbell
has released eight varieties of wheat. While many of
them are grown on large acreages with yields that
rank them near the top, the criteria that really distinguishes Dr. Campbell’s releases is quality. Look over the
Preferred Variety List the WGC has maintained for the
last decade and you’ll find most of her varieties among
the “Most Desirable” ranking—the very top for quality.
You’ve heard me go on about quality in this space in
the past, and while I won’t belabor the point here, let
me reiterate the position of the WGC. Yes, bushels pay
the bills, but without maintaining and growing market share, our wheat prices and demand will suffer.
Customers like Japan and Taiwan, among others, are
very sophisticated. They know what they like and aren’t
afraid to let us know when they get a shipment of grain
that doesn’t meet their expectations. Chasing bushels
without consideration of quality is like chasing the
wind. At the end of the day you can end up with a lot of
nothing.
Dr. Campbell isn’t a researcher who goes out of her
way to impress people. Although she can project her
voice at field days, her default setting is more subdued.
She lets her science speak for itself, and the WGC has
recognized its value. In the 2012/13 budget, we provided
her $121,000 for breeding and cold hardiness research.
We further funded another 13 ARS projects, bringing
the total we pledge to federal government scientists to
$697,000.
This is an ever growing slice of our budget. Just six
years ago, the commission only funded eight ARS projects for a total of $343,000. The increase is the result of
cutbacks in research at the federal level forcing scientists
to look elsewhere for money. We are indeed fortunate at
the WGC that several years of excellent prices combined
with good crops has allowed us the opportunity to
backfill federal funding shortfalls. But we cannot expect
that will always be the case. Any of us who have been
in wheat farming more than 15 years can remember the
down cycles when just looking at your banker wrong
might have spelled the end to your operation.
When it comes to ensuring our industry remains
viable into the future, research ranks right up there
with rain. And scientists like Campbell and the other
Pullman-based ARS employees are essential to that goal.
But just as the nation’s physical infrastructure of roads
and bridges is deteriorating, its intangible infrastructure
of brains and experience is also diminishing. Let scientific funding deteriorate too far and the job of building
programs back up will cost more than if they had been
funded at optimal levels all along.
WASHINGTON GRAIN COMMISSION
If you’re as avid a reader of Wheat Life as I am, you no
doubt saw the article in the December 2012 issue about
wheat breeders Kim Kidwell and Kim Campbell being recognized as fellows by the American Society of
Agronomy. That’s quite an achievement by itself, but
Campbell was also honored by the Crop Science Society
of America. No disrespect to Dr. Kidwell, who left
her spring wheat breeding duties in 2009 to become a
College of Agricultural, Human, and Natural Resource
Sciences administrator, but it’s Dr. Campbell and the
organization she works for that I’d like to address here.
That said, it is essential we not let the politicians,
whose decisions have failed to allow the ARS budget to
keep up with inflation, off the hook. Research is not just
the lifeblood of Eastern Washington wheat growers, it is
the lifeblood of all the agriculture practiced in the U.S.
and helps explain why Americans spend less than 10
percent of their budgets on food compared to some third
world countries’ 60 percent or more.
I am reminded of an old proverb that goes, “You never
miss the honey till the bee is gone.” As farmers, we must
continue to pressure our Congressmen and Senators to
provide adequate funding for the ARS to allow scientists
like Campbell to thrive. If not, we are setting ourselves
up for a future proverb: You never miss the bread till the
wheat is gone.
One small step for wheat
If researchers responsible for decoding the wheat plant’s fabulously complicated genome were to choose a proverb to describe their work, it might
be, “Little by little, like the bird builds its nest.” Several research partnerships in the last several years have released papers highlighting progress
toward a complete gene map of wheat. At least once, the scientists have
gotten ahead of themselves and have had to be reeled back in. The latest effort at decoding bread wheat was led by an international team that
included scientists from the Agricultural Research Service
of the USDA. Although it has identified between 94,000
and 96,000 genes, it is still a long way from a complete
wheat genome assembly. Mike Pumphrey,
spring wheat breeder at WSU, said while the
latest research is “certainly useful,”
it is far from the resources
currently available for rice
and other plants. Arron
Carter, WSU winter wheat
breeder, said the sequencing
effort is a major step in advancing wheat genetics, but it will not be
instantly beneficial to the breeding process
or to wheat producers. The difficulty in unraveling the wheat
genome is because at 17 gigabases (a giga is a unit prefix in
the metric system denoting a factor of billion), it is six times the
size of the human genome. Not only that, but the plant contains an array of
duplicated genes that may or may not be active. Bread wheat, however, is
also the world’s most widely grown crop, planted on more than 494 million
acres of land and serving as the primary carbohydrate and protein source for
the world’s population. Those facts have motivated researchers around the
world to pursue different approaches to tackle the wheat genome map, a
completed version of which is still several years away.
ADM boosts Down Under offer
As expected, Archer Daniels Midland increased its bid for GrainCorp
Limited, an Australian commodity firm, from $2.8 billion to $2.9 billion.
The revised proposal, which pegs GrainCorp shares at $12.20 in cash,
represents a 39.6 percent premium to the last closing price of GrainCorp
shares of $8.74 Australian on Oct. 18. It is a 45.9 percent premium to the
12-month, volume-weighted average GrainCorp share price.
All healed up
and ready to rumble
Agriculture’s relatively strong balance sheet
and low overall use of debt entering and
exiting the recession provides a financial
base for future growth. That’s the word from
the Economic Research Service (ERS) which
found that robust demand for agricultural
commodities and products since 2004 has
enabled farmers to improve their overall liquidity and strengthen their balance sheets.
These gains in farm income, meanwhile,
increased farmland values by raising expectations of future income flows. As a result,
farm financial assets grew by 31 percent and
farm equity by 32 percent between 2004
and 2012. Agriculture has also benefited
from the health of its two primary lenders,
rural commercial banks and the Farm Credit
System. These two institutions held more
than 85 percent of farm debt in 2010. Export
growth, the report found, is increasingly
dependent on developing countries. The
developing-country share of U.S. agricultural exports rose to more than 60 percent
in 2011, up from 40 percent in 1998. As for
the future, the ERS report said from both a
trade and financial perspective, agriculture
was and is better positioned than most U.S.
industries. “While the world economy is
dynamic and increasingly competitive, U.S.
agriculture’s natural comparative advantage,
low interest rates, competitive exchange
rate and solid balance sheet suggests its
continued strong presence in world markets
for the foreseeable future,” the report concluded.
WGC REVIEW
WL
As the wireworm turns
Happy birthday!
Narrowing the field
The Washington State Department of Agriculture
(WSDA) is celebrating its centennial in 2013, signifying
100 years of service to the agricultural community and
the public. The WSDA intends to use this milestone to
raise awareness of the importance of the state’s farming
history and future. When the department was formed in
June 1913, it brought eight areas of responsibility under
one roof, including programs for state veterinarians,
dairies, horticulture, bakeries, fairs, feed and fertilizer and
registering stallions and jacks. The WSDA now serves a
Washington agricultural industry consisting of 39,500
farms, employing 160,000 men and women, producing
more than 300 commodities that contribute $46 billion
to the state’s economy. WSDA plans to make the centennial part of its outreach effort involving fairs, farmers’
markets and youth agricultural education programs. Visit
the WSDA Centennial Celebration webpage at
www.agr.wa.gov for information on coming events.
The emergence of biotechnology has been a major driver of
consolidation within the crop seed sector of agriculture. In
1994, the four top firms in the “crop seed and biotechnology”
sector held just a 21.1 percent share of the global market. By
2009, the share of the market dominated by the top four companies had risen to nearly 54 percent. Growing larger helped
the companies share the large fixed costs associated with meeting regulatory approval for new biotechnology innovations. In
2010, eight companies provided 76 percent of all crop seed and
biotechnology research. The rising concentration in global agricultural input markets means fewer firms are supplying those
inputs to farmers, and fewer firms are responsible for many of
the new innovations that drive growth in agricultural productivity. For the last two decades, the price of farm inputs has
been rising faster than the prices U.S. farmers receive for their
crops and livestock. The largest increase during the 1990 to
2010 period was in crop seed prices which more than doubled
relative to the price received for commodities. Although there
are downsides to consolidation in terms of only very large firms
being able to compete effectively, the global reach of large
multinational agricultural input firms could speed up the rate
of international technology transfer and help close productivity
gaps between regions and countries.
WHEAT LIFE JANUARY 2013 WASHINGTON GRAIN COMMISSION
At his last appearance before the Washington Grain Commission before he retires in
April 2013, Washington State University entomologist Keith Pike had encouraging
news on the wireworm front. In the near term, there’s a new name in approved seed
treatments available. Nipsit Inside has been added to the current stable of Cruiser
and Gaucho. Under high wireworm pressure, high rates of any of these neonicotinoid (known familiarly as neonic) chemicals is
worth the cost. Looking at all the results from
neonics and checks for the last two years,
the advantage of the seed treatment is 2.8
times the check yield under high wireworm
pressure: 67 bushels an acre vs. 24 bushels an
acre. But not every farmer has high populations of wireworms. Under low wireworm pressure, there is still an advantage, but it is relatively small at 67 bushels an
acre for the check, versus 72 treated. The problem with these treatments, said Pike,
is that they only slow down the wireworm. He wants an approach that will knock them out. He believes the answer is
available—if the EPA would label it. Cruiser plus fipronil, both applied at an extremely low rate to seed, are expected to
largely eliminate resident and neonate wireworms in wheat. Pike said a high kill rate should give farmers a three- to fouryear window of protection that is superior even to Lindane, the chemical that was withdrawn from use in 2006. Fipronil is
already labeled on potatoes in Washington. “We are proposing a rate for wheat that is about 16 times less than that used
on potatoes. Plus, treatment shouldn’t be necessary every year,” Pike said. Stay tuned for the February issue of Wheat Life
where Pike will outline his complete wireworm findings, research made possible by the establishment of the $1.5 million
Washington Wheat Distinguished Professorship funded by the Washington Grain Commission.
43
WL
WGC REVIEW
44 South Asia may be in Australia’s backyard with a
$10 to $15 per ton transportation advantage over
ports off the Pacific Northwest, but Mike Spier,
U.S. Wheat Associates’ (USW) man-on-the-ground
in the region, isn’t conceding the important
market to our competitors. Spier, who started out
in the wheat industry as an export grain merchandiser in Portland before serving as assistant director at USW’s Portland Office, has also been posted
to Cairo and Manila. He landed in Singapore in
2009 as USW’s regional vice president for South Asia to take on what is arguably the most important territory in the world. Although he is responsible for
30 countries in the region, six receive 95 percent of all wheat shipments. They
include the Philippines, Indonesia, Malaysia, Thailand, Vietnam and Singapore.
The five-year average export value of U.S. wheat shipments to the area between 2007 and 2011 was $970 million. In 2011, $1.3 billion worth of wheat,
or about 4 million metric tons, was shipped. Indonesia, which at 242 million
people is
the fourth
Indonesia Wheat Imports
most
All Origins
populous
6,000
country in
the world,
5,000
purchased
73 per4,000
cent of its
grain from
3,000
Canada
Australia
in 2011/12,
Other
2,000
with the
U.S.
U.S. taking
Australia
1,000
15 perTotal
cent and
0
05/06 06/07 07/08 08/09 09/10 10/11 11/12
Canada 12
Est.
Source: Global Trade Information Service
percent.
Although
soft white has made up the lion’s share of Indonesia’s U.S. imports in the past,
hard red spring wheat was the dominant class in 2011/12, followed by soft
white and hard red winter. Noodles are the primary end-use product that
wheat is made into in the region, but cookies, crackers, pastries, breads, cakes
and pasta are gaining acceptance as the middle class grows and diets change.
Since 1991, wheat consumption is up 95 percent in Indonesia, 165 percent in
Vietnam and 105 percent in Thailand. The milling capacity of these countries is
reflected in the rising consumption with Indonesian milling volume increasing
40 percent, Vietnam 45 percent, and Thailand 5 percent. Overall, annual regional milling capacity has increased by 3 million metric tons in the last decade.
How can the U.S. continue to grow market share in the important region? Spier
said quality must remain a top priority. “Varietal development focused on enduse quality is where U.S. wheats have a competitive advantage,” he said.
1,000 MT
Our man in Singapore
Northwest wind
blows away a record
Sure, some utilities complain about the
high cost of wind energy, not to mention
the fact they don’t really need it, but on
Oct. 16, something happened for the first
time ever within the Bonneville Power
Administration region. At 2:50 a.m., wind
generated 3,169 megawatts of energy,
four more megawatts than hydro.
Newhouse
formalizes grain
advisory committee
Following the Washington State
Department of Agriculture’s (WSDA) approval of an increase and change in the
way fees are charged for the state Grain
Inspection Program, WSDA Director Dan
Newhouse announced he is turning the
informal grain advisory committee into
a formal body. The change comes after
concerns and complaints were heard
from some industry members about
the program’s rule making process and
frustration over their perceived lack of
involvement. During testimony on raising
the inspection fees, Newhouse said the
industry universally wanted to maintain
the state program and not return it to the
Federal Grain Inspection Service. The new
fee structure “satisfied the department’s
responsibility to immediately address the
current inequity in service pricing,” he
said, correcting the tier-based structure
which saw substantial, tonnage-based
discounts to some firms. To ensure the
program only keeps the revenue required to operate, the rule builds into the
program an equitable discount for future
billings based on service usage rather
than grain tonnage and “helps guarantee
fair distribution of any excess revenue to
all customers into the future.”
WGC REVIEW
Lookin’ good!
WL
U.S. Drought Monitor
Good news, bad news
When it comes to eating, Americans are becoming more like cows—grazing throughout the day. That’s the word from a survey on snacking which
found 48 percent of consumers snack at least twice a day, seeking foods
that provide fuel between traditional meals. The Kellogg Company and
General Mills are both taking advantage of
the trend by increasing their offerings in the
snack category. Special K Cracker Chips from
Kellogg’s ranked seventh among new products in 2011, with first year sales of $50.6 million. At General Mills, net sales of the company’s snacks division have been increasing
with such offerings as the Wheaties Fuel bar.
There is just one problem. According to the
“What We Eat in America” dietary survey
from the USDA, snacks provide about onethird of all daily calories
from solid fats and
added sugars.
Change heats up
energy future
For those who went through the Arab oil
embargo in 1973, the notion the U.S. will
overtake Saudi Arabia as the world’s largest
oil producer by 2020 is nothing short of incredible. Meanwhile, U.S. oil consumption is
dropping, down 8.4 percent from 2006 while
natural gas is coming on strong. The Parisbased International Energy Agency (IEA)
expects natural gas will replace oil as the
largest single fuel in the U.S. energy mix by
2030. The IEA said the ongoing shift could
transform not just energy supplies, but also
U.S. politics and diplomacy. Consider, for
instance, that while the U.S. now receives
less than 20 percent of its oil imports from
the Persian Gulf region, it spends between
$60 billion to $80 billion to keep Middle East
sea lanes open. China, on the other hand, receives half of its oil imports from the Persian
Gulf.
Look at the drought map of the United
S
States and while red, representing exL
SL
SL
treme drought, and maroon, representing
L
L
exceptional drought, is the order of the
SL
SL
SL
day throughout much of the Midwest, the
SL
L
L
L
entire Northwest, save for the southeast
SL
L
SL SL
SL
corner of Oregon, lacks any pigmentation
SL
at all. That’s because Northwest rainfall
L
SL
this growing season has been abundant
L
S
SL
S
S
S
S
SL
with 65 percent of the dryland wheat
L
crop rated good or excellent at the end of
Intensity:
Drought Impact Types:
D0 Abnormally Dry
Delineates dominant impacts
November. At the Dec. 3 meeting of the
D1 Drought - Moderate
S = Short-Term, typically <6 months
D2 Drought - Severe
(e.g.
agriculture, grasslands)
Washington Grain Commission, members
D3 Drought - Extreme
L = Long-Term, typically >6 months
D4 Drought - Exceptional (e.g. hydrology, ecology)
reported on the conditions in their districts with Mike Miller, who represents the
area around Ritzville, the most succinct.
http://droughtmonitor.unl.edu/
“Wet,” he said. Hal Johnson, who farms
between Davenport and Reardan reported that he’s gotten a third of his annual rainfall in the last two months, and it’s all gone
into the ground. “It’s wonderful,” he said. Dana Herron, who lives in Connell, said 3.2 inches of rain has fallen since planting.
“There’s a stellar cheat grass crop coming,” he said. Long range weather forecaster Art Douglas confirmed what farmers have
been experiencing. At the Tri-State Grain Growers Convention on Nov. 14, Douglas said the Pacific Northwest will receive plenty
of moisture during the winter with drier conditions next spring and summer. “You couldn’t have asked for a better forecast than
this one right here,” he told his appreciative audience.
45
REPORTS
WA S H I N G TO N G R A I N CO M M I S SION
Hard white hope for the future
ADM looking to source large amounts of the class locally
By Scott A. Yates
46 Bob French is a man of few words which makes his
pronouncements at two
recent public meetings all
the more exciting.
Speaking before the
Washington Grain
Commission (WGC) and at
a meeting of the ad hoc TriState Grain Commission
(made up of commissioners
from Washington, Oregon
and Idaho) the grain
merchandiser at ADM’s
two Spokane area mills
unveiled the company’s plan to source major amounts of
hard white from the wheat land surrounding Spokane.
“We are seeing hard white whole grain growth. Right
now, we are using almost all the hard white grown in
Washington. We are going to ask producers to increase
production this spring in Washington and anywhere
tributary,” he said, adding that such growth could continue for the next three to four years.
Hard white, for those who aren’t familiar with the six
classes of wheat grown in the U.S., is the newest entry.
Considered a replacement for hard red winter when it
came on the scene in 1990, hard white has a sweeter taste,
a higher extraction rate and no red bran. All of these
attributes makes the class an especially good choice for
turning into whole wheat products.
Nevertheless, the class has largely languished for the
last 20 years. Partly that’s because during the first year
large acreage was planted in the Midwest, rain fell during harvest and the hard white variety then in production sprouted. As Darrell Hanavan, executive director of
WGC REPORTS
the Colorado Wheat Administrative
Committee put it, “We have pretty
much been able to overcome the
sprouting issue. We haven’t, however, been able to overcome the
farmers’ memory of the problem.”
Many within the industry have
likened hard white’s fortunes to a
question of the chicken or the egg,
as in which comes first, adequate
supplies or a market? Although
Asian Pacific customers have
begged for a wheat to compete with
Australia Prime Hard, they haven’t
been willing to pay anymore for
it, and they won’t contract it. In
the past, it’s been estimated that
240 million bushels are needed to
adequately jump-start the class.
Although various initiatives
and companies have attempted
to break the hard white logjam,
Nebraska-based ConAgra was the
first company to cash in beginning in 2004. Using a proprietary
method of milling which results
in hard white whole wheat flour
that is virtually indistinguishable
from refined flour, the company set
about carving out a domestic niche
for itself. Its hard white Ultragrain
products are touted as having
“White Flour Appeal with Whole
Grain Nutrition.”
In cooperation with the Colorado
“I’ve been farming for a long time and this is the most
exciting development in a while. The fact ADM is making a
concerted effort to bring more hard white into their Spokane
mill is really just the tip of the iceberg. If we can generate
enough supply, we can finally access the export market.”
— Hal Johnson
WGC commissioner
Wheat Administrative Committee, ConAgra has developed a premium
program for a specific variety which pays farmers 30 cents above HRW price
simply for delivering the class and up to another 60 cents if certain premium
thresholds are met. It’s expected that 125,000 acres of hard white under the
Colorado premium program will be grown in 2013.
French didn’t mention any premiums during his presentations, but for
farmers within a certain radius of Spokane, simply being able to deliver wheat
to a nearby user is a bonus. Hal Johnson, a WGC commissioner from the
Davenport area, said he intends to convert most of his protein wheat acreage
to hard white within the next several years.
“I’ve been farming for a long time and this is the most exciting development
in a while,” Johnson said. “The fact ADM is making a concerted effort to bring
more hard white into their Spokane mill is really just the tip of the iceberg. If
we can generate enough supply, we can finally access the export market. What
we really need now is a hard white winter variety.”
Arron Carter, Washington State University’s winter wheat breeder, said
he’s had conversations with French about ADM’s desire to source more hard
white. Currently, about 20 percent of his program’s efforts are devoted to hard
white winter wheat development. The relatively small emphasis is due to hard
white varieties developed and released in the past which have never found a
home.
“We have a full advanced yield trial of hard white winters being conducted
in Davenport this year, with all of the lines planted that have shown promise
in our Pullman plots. Successful performance in Davenport, including disease
resistance, agronomic performance and an end-use quality that is acceptable
to ADM and its end users, will accelerate releases,” he said, adding there are
already a couple of hard white winter varieties in statewide testing. Carter is
waiting on the end-use quality report for those varieties to determine if they
meet the needs of ADM.
The most hard white ever
harvested was 900,000 acres in
2003, during a three-year program
when the federal government paid
farmers an extra 30 cents a bushel
to grow it. In 2012, depending on
whose numbers you believe (the
U.S. Department of Agriculture’s
or U.S. Wheat Associates’), between
23.7 million bushels and 28.5 million bushels of hard white were
harvested off slightly more than
500,000 acres.
WL
Idaho has been a pioneer in hard white production, beginning in 1997
with the establishment of the Promar Select Cooperative, a group intended
to market the variety 377s. The effort, while initially promising, ultimately
failed in part because the early variety didn’t meet the specifications of the
marketplace. Nevertheless, Idaho retains the title of being the largest producer
of hard white in the nation, much of it going into General Mills and Horizon
milling facilities in southern Idaho and Utah. In 2012, the state produced
about 10 million bushels of hard white, nearly half of the national total. The
WL
WGC REPORTS
majority of the wheat is grown in
southern Idaho.
Gordon Gallup, chairman of the
Hard White Wheat Committee of
U.S. Wheat Associates and an Idaho
farmer from Ririe, said General
Mills currently pays 50 cents over
hard red spring for his hard white
production. Although it is graded
on a 14 percent protein scale, the
company is happy at 13 percent and
still meets the premium.
“I’ve been raising hard white for
20 years, and when I first started
off, the mills didn’t want it, and the
elevators didn’t want it. They were
saying don’t even bother to bring it
in. Now look at us. We have a huge
demand for hard white in southern
Idaho,” Gallup said.
Fulfilling domestic needs,
however, is only the first step. The
goal of export-oriented states like
Washington is to develop a critical
mass of hard white which will enable consistent cargoes to the Pacific
Rim. Glen Squires, chief executive
officer of the WGC, pointed out that
U.S. Wheat Associates estimated
the market for hard white around
the world at more than 514 million bushels, of which 165 million
bushels would be new business,
not replacement of current classes.
As comparison, Washington’s total
wheat production in 2012 was 145
million bushels.
“If we can use the interest that
ADM and other companies have
shown in hard white to leverage
increased production throughout
the Northwest, then the critical
mass necessary to export consistent
cargoes shouldn’t be far behind.
And that would be a tremendous
boost for the region,” he said.
Tony Rizzuto, president of Rizzuto Foods in Spokane, shows off one of the bags of whole grain hard
white wheat he sources from ADM’s Spokane mill. The flour is used to make whole grain pizza and
breadsticks for school lunch programs.
A tasty trend
Spokane food company bets on hard white wheat
By Scott A. Yates
Tony Rizzuto, president of Rizzuto Foods, is excited by the growth potential
of his company’s whole grain hard white wheat frozen pizza products. But the
cherry on top of the sundae is the fact that the flour his company uses comes
from a local mill that sources its grain from local farms.
That’s because selling food today is about more than the food. It also
involves concepts of a reduced carbon footprint, social responsibility and
sustainability. Being able to market a product with ingredients that haven’t
traveled thousands or even hundreds of miles is a selling point nearly as
important as taste.
“Sustainability for all of us has become a mainstream term. Whether you’re
a conservative or liberal, everybody can get behind the concept of sustain-
WGC REPORTS
WL
ability,” Rizzuto said, adding that today’s
consumers are really interested in where their
food comes from.
Today’s business, which Rizzuto opened
on a shoestring in 1991, mostly supplies food
service companies across the nation. It is a
long way from Rizzuto’s pizza initiation. In
the 1960s, his father traveled the region’s back
roads delivering Little Joe’s Pizzas out of a
van. In the summers, Rizzuto traveled with
his father, watching wheat fields flash past
outside the window, thinking they were the
source of the flour his father used to make
pizza. He can still remember when he was
told the flour came from Great Falls, Mont.
“It was something that always stuck in my
psyche. Why is that?” he wondered.
(Above) Dough heads down an equipment
line at Rizzuto Foods prior to being pressed
into the familiar pizza shape, then partially
baked and frozen. (Left) After being partially
baked, called parbake, a worker at Rizzuto
Foods packs the finished pizza product.
(Below) Unlike food companies that sell to
retailers, Rizzuto Foods largely sells through
food service companies. Part of helping these
companies remember their supplier means
labeling every side of the boxes, something
Tony Rizzuto calls “back of the house
branding.”
In the case of Rizzuto Foods, its frozen
pizza products are manufactured in a facility
located in an industrial area of east Spokane.
The operation’s exterior is reminiscent of a
cartoon-inspired Arabian tent that looks small
on the outside, but upon entry, becomes a spacious palace. Okay, the business isn’t a palace,
but it is larger than you think, and it smells
delicious. Connected by long corridors, the
company’s employees work several production lines simultaneously, and large coolers
and freezers hold dozens of boxes of pizza
crusts and breadsticks ready for delivery.
49
WL
WGC REPORTS
Today, the flour Rizzuto uses hasn’t traveled more than
a few miles. In fact, if you know where to look from the
street in front of the business, you can see the storage
elevators of ADM’s Spokane mill which delivers bulk
and bagged flour.
Based on an average yield of 64 bushels an acre,
Rizzuto estimates his business uses the equivalent of
about 2,100 acres of wheat annually. While hard white
whole wheat flour is a fraction of his usage now, Rizzuto
wants to believe it will be used in 100 percent of the company’s products in the future.
The pace of change has already been startling. Until
two years ago, Rizzuto Foods was using hard red wheat
in almost its entire product line, and whole wheat was
a footnote. But then, as the obesity crisis in the U.S.
mounted, the notion of serving children a healthier diet
as part of school lunch programs took hold.
“When we see a trend, it is easy for us to react and get
something to the market quickly. We are not this big,
cumbersome, slow-moving corporation. We are a nimble
company that can see opportunities, grasp them and go
to market with them,” Rizzuto said. “As schools encouraged fiber in children’s diet, we introduced a whole
wheat line of products aimed at the national school lunch
program. That’s what developed the hard white whole
wheat market for us.”
The direct advertising Rizzuto uses at food shows
emphasizes that its pizza and breadstick items are specially formulated to be whole grain rich. “These products
may not look or taste like whole grain, but rest assured
that the Pacific Northwest-grown white whole wheat is
rich in fiber and sweeter tasting than traditional whole
wheat,” says one handout. Another testifies that “Eastern
Washington wheat farmers grow the finest white whole
wheat in the world.”
Currently, bread products sold into the school lunch
program requires them to be 51 percent whole grain, but
in 2015, that will be increased to 100 percent. Rizzuto
said not only does the hard white flour give better
volume when baked (the pizza is par-baked, or partially
baked before being frozen), it has a sweeter taste as opposed to hard red.
For his business, Rizzuto said hard white wheat
sourced locally represents the best of all possible worlds.
“There is the feel-good side of the equation, and there
is the fiscally sound side of the equation. It’s not very
common when both sides meet,” he said.
Boxes of Rizzuto Foods’ pizza-oriented products are frozen before being sent to customers across the nation.
WGC REPORTS
WL
Middle
in the
Hawaii provides ideal venue
to host PNW’s key customers
By Glen W. Squires
CEO, Washington Grain Commission
Compare the flow of wheat to the flow of water and
you have the head waters—farmers—whose grain
gushes into inland terminals—the tributaries—that
flow into larger rivers—the export terminals—that then
empty into the ocean—the buyer/miller.
Ordinarily, there is no leap-frogging through the
process, but at the first-ever North Asia Marketing
Conference held in early November in Honolulu, U.S.
wheat industry staff and farmers joined America’s most
consistent wheat customers from the Pacific Rim to
discuss the trade’s complete hydrology—the market—together. The meeting, held in the central Pacific, saw more
than a hundred millers and buyers from Japan, South
Korea and Taiwan gather to listen to and discuss the
commodity that is essential to feed their countries.
To say the North Asian region is important to Eastern
Washington farmers is an understatement. Buying 47
percent of U.S. white wheat exports in 2011/12, the market is an absolutely crucial foundation to our regional
wheat sales.
Other classes of wheat as well depend on exports to
these three countries. Thirty-five percent of U.S. hard
red spring exports and 13 percent of hard red win-
ter exports—all from Pacific
Northwest ports—are shipped
westward.
Demonstrating the Washington Grain
Commission’s renewed emphasis on marketing, planning for the inaugural event got off the ground with
initial support from funding provided by Eastern
Washington farmers through their assessments on each
bushel of wheat. Other states, including Oregon and
Idaho, soon saw the advantages of the meeting and
joined our ranks. In all, seven states sent representatives.
U.S. Wheat Associates’ (USW) domestic and oversea staff
with their expertise, connections and program contributions facilitated the event that not only provided valuable
marketing, trade and crop information, but also served
as a forum to thank these important buyers individually
for their commitment and loyalty. An added dimension
of the conference was the inclusion of PNW export company representatives in the program.
Meeting
Randy Suess, WGC board member and immediate
past chairman of USW, opened the conference and highlighted the excellent relationship between U.S. farmers,
millers and buyers throughout North Asia. For several of
the Pacific Rim attendees, it wasn’t the first time meeting
Suess. He has hosted several of them on his farm in the
past.
WL
WGC REPORTS
Glen Squires, chief executive officer of the Washington Grain
Commission, used the North Asia Marketing Conference as an
opportunity to reiterate the advantages of buying soft white wheat,
the class he referred to as “your trouble-free wheat choice.”
As a former teacher, Randy Suess is all about education. The
immediate past chairman of U.S. Wheat Associates showed photos
of life on his farm to acquaint North Asian buyers with the reality of
farming in the Northwest and elsewhere in the U.S.
After his presentation on wheat flour blending with an emphasis on
soft white and club wheat, Art Bettge, a former cereal chemist with
the Agricultural Research Service who now serves as a consultant to
the grain industry, speaks to a North Asian wheat buying official.
Presentations during the two-day conference covered topics solicited by and for the participants. To enhance two-way
communication and understanding, a market outlook for
each of the three countries was provided by USW country
directors. Other topics included a look at the volatility of
the markets, mega trends in grain and the implications they
have on wheat. Baking industry developments, an update
on biotechnology, advancement in the hard white class and
trade policy with specific attention to the implications of
Canadian procurement and marketing changes were also
discussed.
A crop quality seminar component was included at the
conference. Detailed production and crop quality information on each U.S. wheat class was provided. Dr. Senay
Simsek of North Dakota State University provided information on HRS. Royce Schaneman, executive director for
the Nebraska Wheat Board presented HRW data. Pacific
Northwest-grown soft white and club wheat were covered
by myself.
A special presentation, promoted by the WGC, included
a seminar by Art Bettge, retired USDA/ARS cereal chemist. Bettge’s discussion regarding the effectiveness and
profitability of flour blending—research sponsored by the
WGC—drilled down to the molecular level about why
mixing soft white wheat with the protein classes of wheat
boosts end-use product volume. He also provided insight
into the special characteristics possessed by club wheat.
Approximately 80 percent of the club wheat in the export
market is utilized by Japan and Taiwan. These markets
specify an 80/20 blend of soft white and club wheat known
as Western White wheat.
The meeting and conference topics were well received
with a good exchange between participants and presenters.
Wheat farmers from several states, including several WGC
commissioners, attended and took advantage of the opportunity to visit directly with millers/buyers.
Steve Claassen said customers were tight-lipped and kept
to themselves initially, but by the end of the conference,
competitors were opening up.
“It’s always a good idea to share ideas. It creates a synergy
you couldn’t create on your own. Overall, I thought there
was a very good response, and I sure couldn’t complain
about the venue,” he said.
Hawaii wasn’t chosen as the venue for the North Asia Marketing
Conference for its weather or its beaches, but rather because of the
ease of travel for representatives from Japan, Korea and Taiwan, as
well as those from the U.S. Most of the time was spent inside the
hotel conference room, but (from left) WGC commissioners Mike
Miller, Steve Claassen and Tom Zwainz, used a break to step outside.
Tom Zwainz, chairman of the WGC, said he thought the
conference went well, although a few of the topics didn’t
strike home to the North Asian buyers. At least not yet.
“Judi Adams, president of the Wheat Food Council, presented on the problems we are confronting in the U.S. with
so-called experts criticizing wheat as a contributor to obesity. I don’t think, at this point in time, our Asian customers
WGC REPORTS
Years working on wheat
issues form strong bonds,
and while most of the North
Asian Marketing Conference
was about serious issues,
there was time for fun, as
illustrated by this moment
between Steve Wirsching
(left), vice president of
U.S. Wheat Associates’
Portland office, and Randy
Suess, a Washington Grain
Commissioner.
Representatives of Northwest
wheat and grain commissions
as well as U.S. Wheat
Associates’ staff, share a
breakfast with officials from
Japan’s Ministry of Food
and Fisheries. The agency
buys almost all the wheat
imported into the country
and then sells it to local
companies.
even have that on their radar,” he said.
The WGC initiated a breakfast meeting with high ranking officials at Japan’s
Ministry of Agriculture and Forestry (MAFF) that buys almost all the country’s wheat. The meeting provided wheat commissioners from the Northwest
states the opportunity to personally thank MAFF officials for the country’s
long-term commitment to PNW soft white and club wheat. They also answered specific questions about the crop and farming in the region.
Just as water flows over and around obstacles effortlessly, the feeling of
openness that ultimately emerged and permeated the conference hall and corridors, served as a refreshing tonic to the competition that is an integral part
of the system that serves us so well. It is clear this new marketing approach is
an opportunity that should be encouraged in the future.
Wheat review
set for February
The Washington Wheat and
Barley Research Review has been
set for Tuesday, Feb. 19, and
Wednesday, Feb. 20, in Pullman
at the Holiday Inn Express.
A room block has been set
up for hotel rooms on Feb. 19 at
the Holiday Inn Express. Guests
may make their reservations by
calling either 1-888-HOLIDAY
(465-4329) or the hotel directly
at (509) 334-4437. You must identify yourself as being with the
Washington Grain Commission
room block in order to receive
the rate of $115 per night. The
room block will be held until
Jan. 19. The event will begin at
10 a.m. on Feb. 19 and lunch
will be provided. The presentations will continue on Feb. 20
from 8 a.m until noon. Times are
approximate.
If you are interested in receiving additional information about
the 2013 Wheat and Barley
Research Review, please email
Mary Palmer Sullivan at mary@
wagrains.com.
From left, Tom Zwainz,
chairman of the Washington
Grain Commission, Mike
Krueger, president of The
Money Farm, a North Dakota
commodity consulting firm,
and Matt Weimer, U.S. Wheat
Associates’ regional vice
president based in Hong
Kong, share a laugh during
a break at the North Asia
Marketing Conference.
WL
Office space for rent
2702 W. Sunset Blvd., Spokane
Rental space is 3,000 square
feet in the lower level of the
Washington Grain Commission
building. Asking $16 per square
foot. Address is close to downtown Spokane and airport. Great
parking with good visibility and
access. Contact Joel Crosby at
(509) 535-7400 if interested.
WL
WGC REPORTS
Snake oil diets can bite
By Art Bettge
In the 1800s, snake oil salesmen traveled America, hawking potions
touted to cure “what ails you” in small, reasonably priced, easy-to-use
bottles. And sometimes, at least in the short term, the concoction did
make people feel better, especially those that contained cocaine or
alcohol. Or both.
In the 1950s, diet pills were popped by those wishing to lose weight
easily. Sure enough, the weight peeled off, but sleepless nights followed because the pills
were actually amphetamines or “speed” in today’s lexicon.
Both of these cases illustrate the desire by the public for easy, simple and painless solutions to complex problems. It’s a phenomenon being seen again with the advent of diets that
base themselves on the elimination of a single food, or food group, to achieve rapid, easy
weight loss.
Today’s miracle elixir diets include “Wheat Belly” a book by William Davis
and the related paleo diet. Each focuses on the elimination of wheat (in the
case of “Wheat Belly”) or cereals in general (paleo diet). Sadly, as was the
case for snake oil salesman, the claims work for a while, but are based on
erroneous information that is frequently “cherry-picked” from scientific
literature, unfounded research conclusions and even outright deception.
Various arguments are put forth in “Wheat Belly,” all of which can’t be
addressed here. One contention is that eating more wheat invariably leads
to an increase in waist size and obesity, hence the title of Davis’ book.
Even a passing scrutiny reveals this to be false. In Morocco, for example,
per capita wheat intake is four times that of the U.S. Yet the obesity rate
in Morocco is less than half that of the U.S. If Davis’ theory is true, everyone in Morocco, or other areas where wheat is a dietary staple, should be
enormous.
The truth is that if you eat more calories than you burn off, you gain
weight. Between 1985 and 2000, the average daily caloric intake in America
increased 12 percent (300 calories) per day without a concomitant increase
in physical activity. This can only lead to weight gain. Moderation, exercise
and a balanced diet are the true keys to health and weight loss.
Davis also contends that wheat produces addictive peptides that cause
people to overeat. It is true that wheat proteins are broken down in digestion into smaller fragments called peptides. While some of these peptides do
attach to opioid receptors in lab tests, so do the protein-converted peptides in
milk, spinach, meat and rice, among many other foods. While this causality
has only been demonstrated in the lab thus far, should the effect be demonstrated in living organisms, the result would likely be a feeling of well being
associated with eating, generally referred to as satiety. And when the feeling
of satiety dissipates, hunger ensues. So ingestion of wheat and other foods
with the same mechanism should actually decrease the desire to overeat.
Davis also argues that modern wheat breeding has produced a genetically altered version of wheat that contains “new” proteins (gliadins) that
have toxic effects. But gliadins have always been a part of wheat’s genetic
complement. There is nothing new about them. Any toxic effects are due to
A basic premise of the paleo diet is that the genotype of the
modern human, homo sapiens, developed between 1.8 million
and 11,000 years ago and is now fixed and immutable. As such,
the diet’s premise is that the human digestive system is not
capable of processing cereals. This view does not consider that
starving early humans would eat anything that sat still long
enough to be devoured, including wild grass seeds, early, undifferentiated cereals, legumes and anything else possessing useful
calories. Cereal grains had not yet been selected for agronomic
traits (like yield and disease resistance), but they certainly existed
in a pre-agricultural form and were certainly consumed.
The human genome is not fixed. It is still evolving. Had departure from the array of paleo diet food products been detrimental
to humans, there would have been active selection against cereal
and agricultural-based food products. The historical results have
been just the opposite. For example, genes that allow lactose to be
digested by adults were not prevalent in humans a millennia ago.
As animal husbandry increased, along with fixed, agriculturalbased farms and villages, the adult lactase genes increased to a
high percentage in populations in Europe. And the percentage of
people worldwide who have this adult lactase gene continues to
increase today.
Wheat Belly and the paleo diet are today’s version of the potions sold by snake oil salesman 150 years ago. They take advantage of the public’s penchant for easy remedies to complex
problems. While simple solutions can provide an easy way to lose
weight in the short-term, the results are apt to be short-lived and
include unnecessary health impacts. This illuminates a larger
flaw in society—the lack of useful science education that allows
citizens to think critically and see through trumped up schemes.
What is the bottom line? For those who are not afflicted with
220
10
100
0
2020
20
2010
340
2000
30
1990
460
1980
40
1970
580
Year
U.S. wheat consumption
U.S. adult obesity rate
Moroccan wheat consumption
Moroccan adult obesity rate
If one examines the trends in the chart above, the
argument that wheat is the major contributor to
obesity is incorrect. In the chart, U.S. statistics are in
blue, Moroccan statistics are red (data derived from
Centers for Disease Control and indexmundi.com).
Solid lines are wheat consumption per capita, and
dashed lines represent the adult obesity rate (not
overweight; just obese - >20% above what is normal
weight). Per capita wheat consumption in the U.S. has
remained steady or decreased, while obesity rates are
rising. The implication of the data is that increased
wheat consumption does not increase obesity and
that the obesity increase is from calories from other
foods or a sedentary lifestyle. In countries with very
high consumption of wheat, those in N. Africa and the
Middle East, obesity rates are much lower. In the case
of Morocco, per capita wheat consumption is more
than 4 times that of the U.S., yet the adult obesity
rate is less than half of that in the U.S. The number of
products containing wheat may be greater in the U.S.,
but the basic products that are primarily wheat remain
the same (i.e. bread). If the “Wheat Belly” thesis that
wheat alone makes people fat is true, almost every
Moroccan would be obese. Total wheat consumption is
holding steady in the U.S., yet the rate of obesity rises.
Obviously, something else is causing the incidence
of obesity to rise. Essentially, waist size increase and
obesity are due to broad-based consumption of too
many calories without regard to the source of the
calories.
The paleo diet proponents espouse the notion that the human
genome and digestive system are evolutionarily incapable of
dealing with cereal grains in the diet, and that the consequence
of cereal consumption is at least being overweight, if not obese.
Along with this view, they believe that subsisting on the limited
diet frees people from “diseases of affluence” such as diabetes,
cardiovascular issues, gout, obesity, etc. This view, however,
neglects the fact that our ancestors died young, typically before
the age of 30 and hence had no time to manifest “affluence-associated” diseases.
50
1960
The paleo diet is another diet fad that follows many of the
misperceptions of “Wheat Belly.” The paleo diet’s dubious underpinning is that as humans evolved, they did not eat cereal grains.
According to the diet’s adherents, paleolithic consumption was
limited to fruits, vegetables, meat, insects/grubs and roots/tubers
and excluded grains, legumes, potatoes, dairy products, refined
salt, refined sugar and processed oils.
700
WL
Obesity rate (adult % pop.)
the fact that some specific gliadins have been implicated in the
auto-immune disease, celiac disease, that afflicts 1 to 2 percent of
the population.
Per capita wheat consumption (lb/year)
WGC REPORTS
celiac disease, wheat contributes fiber, vitamins
and minerals in a vast array of food products that
are not only tasty and delicious, but also promote
good health and vitality.
Art Bettge is a cereal chemist who spent 32 years at
the Agricultural Research Service’s Western Wheat
Quality Lab in Pullman. He is now a consultant with
ADB Wheat Consulting. As part of this article, Bettge
spent months sifting through thousands of pages of
documents related to wheat elimination diets. For a
more technical version of Bettge’s research, please see
his paper at www.wawg.org.
WL
WGC REPORTS
It’s all
a matter of
pH
Acidic soils, aluminum toxicity are on the rise in Eastern Washington, northern idaho
Does your wheat stand start a little slow? Are plants stunted? Do they look yellow? Are
there places in the field that are thin or even bare?
Potential culprits for these symptoms include the soil-borne diseases Rhizoctonia or
Pythium, pests such as nematodes or wireworms, herbicide carryover or even inadequate
or skipped fertilization. If, however, you rule out all these factors, it might be time to investigate aluminum toxicity, a menace that is increasing every year in areas of the Pacific
Northwest.
By Kurt Schroeder
WSU Research Associate
Declining soil pH in Eastern Washington and Northern Idaho caused by the annual
application of fertilizer needed to grow crops, has thrust aluminum toxicity to the fore as
an emerging regional production issue. Prior to farming, soil pH in much of the Palouse
was near 7 (neutral), and aluminum was tightly bound to soil particles or organic matter. As the pH begins to decline below 5.5 (more acidic), some of this aluminum becomes
freely available to the plant.
As pH declines even more, the free aluminum in the soil increases dramatically.
Unfortunately, this free form of aluminum is toxic to plants, interferes with normal
growth and results in a poor root system. This reduces the ability of the plant to take up
water and nutrients and results in reduced stand and stunted plants that are often pale in
color and produce fewer tillers and smaller heads.
The pH of soil is declining because the nitrogen within the fertilizers farmers use
undergoes natural chemical reactions in the soil, with the help of beneficial microorganisms that convert ammonia and ammonium forms of nitrogen into nitrate. Unfortunately,
during this conversion process, hydrogen ions are released into the soil leading to soil
acidification. Low soil pH not only frees up aluminum and leads to toxicity in plants,
it also limits the availability of key plant nutrients (nitrogen, phosphorus, magnesium,
molybdenum).
By Mike Pumphrey
WSU Assistant Professor
While pH has been dropping throughout the region, the acute symptoms of soil acidity
and aluminum toxicity have begun to emerge in locations that were historically forested.
That’s because native soil in forested locations had a lower starting pH than prairie soil
when active farming began on these sites. Forested soils also had lower organic matter
when initially broken out, making them more vulnerable to shifts in soil pH.
Contrary to what is observed with low pH and increasing free aluminum in formerly
forested soils, low pH in prairie soils in Eastern Washington and Northern Idaho do not
necessarily have high concentrations of free aluminum. That’s because these prairiederived soils have a high base saturation, thus low exchangeable aluminum. Or to put it
more simply: even with soil pH below 5.5 in prairie soils, the quantity of free aluminum
is not high enough to cause toxicity to plants. For now, anyway.
WGC REPORTS
So how do we solve this problem? There are several solutions being examined. The most likely management strategies include planting tolerant varieties of wheat, incorporating aluminum-tolerant crops into the rotation and lime
applications to mitigate soil acidity. Fortunately, some wheat varieties and
emerging breeding lines are tolerant to aluminum-toxicity. These plants have
genes that secrete organic acids, such as malate, from their roots to bind with
the toxic free aluminum, preventing plants from taking it up.
Overall, there was good agreement with our initial findings. Based on our
most recent data (see table 1), varieties highlighted in blue with a rating of 2
or less would be suitable for growing in fields with known aluminum toxicity
issues. All other varieties are sensitive and would be risky to plant in these
fields. A winter wheat trial was seeded in the fall of 2012 to gather similar
information on winter varieties.
The availability of tolerant crops and our growing knowledge about aluminum tolerance within PNW wheat varieties, however, does not address the
Hard Red
Most crops grown in dryland production areas of Eastern Washington and
Northern Idaho are quite sensitive to low pH and aluminum toxicity, including wheat, barley, peas, lentils, canola, mustard and camelina. However, oats
and triticale are quite tolerant of these conditions. In side-by-side comparisons
in farmer fields, winter triticale regularly outyields moderately tolerant wheat
with yields often twice that of the wheat.
Yield Rating
Variety
(bu/A) (0 - 5)
Babe
402
Whit
402
WB-1035CL+ 402
WA 8162
39
2
IDO687
37
2
IDO671
362
Nick
362
IDO686
33
2
Alturas
322
Alpowa
312
JD
124
Zak
115
Wakanz
11
5
Diva
95
Louise
8
5
WA 8161
7
5
IDO599
75
WA 8166
45
2
WA 8165
43
1
WA 8163
39
2
Tara 2002
39
1
IDO694
38
2
WB Hartline
36
3
Clear White 515
35
2
LCS Albany
35
2
Otis
343
LCS Powerplay
30
2
Expresso
26
3
Hank
204
LCS Buck Pronto
18
4
BR7030
114
Scarlet
104
Glee
104
Jedd
95
Bullseye
8
5
WB-Fuzion
7
5
Kelse
75
Jefferson
75
Hollis
65
Lassik
65
SY605 CL
5
5
Following the initial Oklahoma screen, a pilot study was initiated in 2011 at
a site in Spokane County documented to have low pH and aluminum toxicity
problems. In 2012, Washington State University spring wheat breeder Mike
Pumphrey expanded the screening to include 24 varieties of soft white spring
wheat and 30 varieties of hard red spring wheat.
Table 1: Varieties suitable for
growing in fields with known
aluminum toxicity issues
Soft White
A preliminary screen of PNW varieties for aluminum tolerance was conducted by Brett Carver, wheat breeder at Oklahoma State University. He
discovered we do indeed have resistance in some of our spring and winter
wheat varieties.
WL
Varieties suitable for growing in
fields with known aluminum toxicity issues in blue, those unsuitable
in pink.
It doesn’t take a microscope to determine which wheat plant roots were stunted by aluminum
toxicity.
WL
WGC REPORTS
underlying problem of low soil pH.
The tolerance is quantitative, so as
soils become more acidified and the
quantity of free aluminum increases,
even the yields of tolerant wheat
varieties and alternative crops will
decrease. A longer term solution to the
problem should include some form of
lime application, either in-furrow or
broadcast and then incorporated into
the soil.
For the past two years, studies
have been underway in the Rockford
area (10 miles south of Spokane) to
test the benefit of applying lime to
both aluminum-tolerant and sensitive wheat. In order to demonstrate
that lime application increases wheat
yields, 10 tons of lime an acre (15 tons
dolomite per acre) was applied in
November 2010. Spring wheat varieties
were planted in 2011 and 2012. Each
year, the limed plots in combination
with an aluminum tolerant variety
showed significant yield increases (28
percent to 46 percent). Little effect was
seen with the sensitive variety in 2011,
although there was a nearly three-fold
increase in yield in 2012. Overall, there
was a substantially higher yield using
an aluminum-tolerant variety over a
sensitive variety.
Although the quantity of lime applied in the pilot study is not economically feasible on a large scale, it demonstrates that yields can be boosted
by its application. The exact amount
of lime needed to achieve optimal
increases in pH without busting a
farmer’s budget is the subject of future
research.
As an alternative to broadcast applications of large amounts of lime,
a pilot study was initiated in the
summer of 2012 examining in-furrow
applications of lime. Here, prilled
calcium carbonate was added with the
seed at planting at a rate of 150 pounds
an acre. Several aluminum tolerant
and intolerant varieties were included.
Although there was not a noticeable
Triticale, which is a cross between wheat and rye, is naturally more tolerant to aluminum toxicity
than most wheat varieties. The winter wheat on the left is slightly tolerant.
Washington farmers are lucky the problem with aluminum toxicity is not widespread throughout
Eastern Washington. Reclaimed forest soil tends to be hardest hit by the phenomenon which can
decimate susceptible varieties as shown in this screening plot.
Not all varieties are created equal when it comes to aluminum toxicity. Louise, a soft white, and
Jedd, a hard red, are among the varieties that are extremely sensitive.
WGC REPORTS
WL
difference between the treated and
nontreated areas within the field, an
average gain of 3.3 bushels per acre
was observed across all varieties.
Looking at the tolerant varieties, Tara
2002 and WA 8166, a gain of 5.7 bushels per acre was attained.
The ideal solution for managing
soil acidity and associated aluminum
toxicity is to plant a tolerant crop or
wheat variety and integrate some type
of lime application. This will not only
provide the greatest improvement in
yield, but the addition of lime will
improve fertilizer uptake efficiency of
the plants and increase the availability
of other micro- and macronutrients
in the soil. More research is required, however, to determine which
method(s) of lime application will
result in improved plant health and
yield while proving economical.
(Above) A hard red variety, like Tara2002, or a soft white variety, like Babe, are naturally resistant to
aluminum toxicity. (Below) This is not what you want your soft white spring wheat to look like after
tillering, a result of aluminum toxicity.
For farmers who believe soil acidity and aluminum toxicity may be a
problem in their fields, the first step
is to get a soil test for pH. If the pH is
below 5.5 and the field is in a historically forested area, it is possible that
aluminum toxicity is a problem. If the
pH test includes exchangeable aluminum as a percentage of the cation exchange capacity, verify that it is under
60 percent. Exchangeable aluminum
over 60 percent can result in aluminum toxicity.
Historically forested areas are harder hit by aluminium toxicity issues.
Further evaluations need to be
completed to determine optimal rates
for the in-furrow application. The
quantities used in this study were
minimal and will not provide much
benefit toward changes in the soil pH,
but it could offset the acidification
of fertilizer added for that year, and
perhaps alter the seed zone during
establishment.
Aluminum toxicity can be verified in crop by examining the roots
for characteristic twisting and short,
stubby roots. It is also wise to have a
mature plant’s tissue tested for aluminum. Concentrations above 200 ppm
(mg/kg) indicate aluminum toxicity.
WHEAT WATCH
Hold on tight for commodity roller coaster
By Mike Krueger
The commodity markets have
continued to be very erratic with
volatility still the central theme.
The December USDA supply and
demand revisions reduced the U.S.
wheat export forecast by 50 million bushels and
increased U.S. wheat ending supplies by 50 million
bushels. The market took that news as bearish, and
wheat prices plummeted the day of the report.
It is ironic that the U.S. wheat export forecast was
reduced at almost the same time that U.S. wheat export sales finally started to show some signs of life.
Egypt purchased U.S. wheat in each of its two most
recent export tenders, including soft white wheat
and soft red winter wheat.
These were the first purchases of U.S. wheat by
Egypt this marketing year (that started on June 1).
Until this point, Russia and other Black Sea countries plus France had been very aggressive (meaning
cheap) sellers to Egypt. U.S. wheat values are now
competitive in the world wheat market place. In fact,
U.S. wheat prices are now “cheap” into some markets, and we expect the pace of U.S. wheat exports
to improve in the weeks and months ahead.
World Wheat Outlook (mmts)
The primary reason that U.S. wheat values are
now competitive is that exportable supplies among
the other major world wheat exporting countries
have been nearly exhausted in the first six months
of this marketing year. The table below shows a picture of what has happened to world wheat production and consumption over the past three marketing
years.
The interesting aspect of the table is that nearly all
of the world’s wheat production problems in 2012
occurred among the major exporting countries, including Russia, the Ukraine and Kazakhstan. Those
problems are continuing today with conditions in
Argentina too wet to get the wheat harvest completed. Heavy rains continue to reduce Argentina’s
wheat quality, and odds are increasing that the
government there will again reduce wheat export
licenses. Simply put, world wheat supplies have declined to a level much lower than anyone expected
just 60 days ago.
The second issue that is gaining more attention
is that many key parts of the Northern hemisphere
winter wheat production regions are off to a questionable start to their growing seasons because of
very dry conditions. This includes much of the U.S.
2010/11 2011/122012/13
Production
652 696651
Usage
655
Feed
113 141132
Ending Supplies
113
141
132
Ending Supplies Major Exporters *
74.7
68.1
50.6
698
978
*U.S., Canada, EU, Argentina, Australia, Russia, Ukraine, Kazakhstan
Source: USDA
WHEAT WATCH
hard red winter wheat area plus a significant portion of the Black Sea region and some areas in the
EU.
The U.S. produced about a billion bushels of hard
red winter wheat in 2012. It now appears the 2013
hard red winter wheat crop could be as small as 700
million bushels, and it could be even smaller. The
market might choose not to deal with production
issues until crops break dormancy next spring, but
the drought has already caused irreversible yield
loss. The odds of having a big world wheat crop in
2013 are very small.
The next critical USDA reports will be released on
January 11. These reports will include:
• Winter wheat plantings. This report should
show increased hard red and soft red winter
wheat acres from 2012, but the numbers should
be somewhat muted by the drought.
be. The keys will be in where the USDA puts
harvested acres. Bullish analysts believe the
drought should have resulted in greater abandonment and fewer harvested acres.
• Quarterly stocks. This report might be the most
important one until we see acreage intentions at
the end of March. The key number will be the
Dec. 1 corn stocks. Some analysts believe this
will be a bullish number. That belief is based on
expectations for smaller harvested acreage and
larger feed usage than currently forecast by the
USDA. Bearish analysts don’t believe the USDA
will reduce the 2012 corn production estimate.
Obviously, there are other factors that will continue to affect markets. The fast approaching U.S. fiscal
cliff and the implications of Congressional action
on taxes and spending might have an impact on
commodity investments. Certainly the weather and
crop production estimates in South America will
be key ingredients in oil seed markets. Argentina
continues to struggle to get their corn and soybean
crops planted because of the wet conditions. Brazil
appears to off to a reasonably good start.
Mike Krueger is president and founder of The Money Farm, a
grain advisory service located in Fargo, N.D. A licensed commodity broker, Krueger is a past director of the Minneapolis
Grain Exchange and a senior analyst for World Perspectives, a
Washington, D.C., agricultural consulting group.
• “Final” 2012 corn and soybean production
estimates. There is a mixed bag of opinions
about what the final corn and soybean production estimates will
Crop condition ratings across the U.S. hard red
winter wheat region are the lowest they’ve been
since the ratings were started. These dry areas
around the world can certainly get better, but the
odds of having an average or better world wheat
yield in 2013 have been reduced by the dry planting conditions. Crop analysts we work with have
slashed their U.S. hard red winter wheat production
potential in recent weeks because the drought in
the southern plains has not improved. In fact, it has
gotten worse.
WL
61
WIDE WORLD OF WHEAT
Another example of the ongoing consolidation occurring in
the crop protection market has German chemical giant
BASF buying an Iowa-based seed treatment company for
$1 billion. Becker Underwood, established in 1982, has been
owned by a private equity firm since 2004. Seed treatments,
which protect wheat, corn and other major crops, represent
a $2.5 billion industry that is expanding by 10 percent to 12
percent annually. BASF plans to use the company’s technology to enhance offerings around the world, especially in
South America, Europe and parts of Asia.
Don’t believe anyone who tells you that bread is out of
fashion. Belgian entrepreneur Alain Coumont opened
a restaurant in Brussels in 1989, but found he didn’t like the
bread from local suppliers so he started baking it himself.
Initially, he sold extra loaves to friends, then he opened a
small bread shop. Fast forward 23 years and his company,
Le Pain Quotidien (Daily Bread), now has 182 shops in 19
countries, including 62 in the U.S.
Unless something is done to address climate change, South
Australia wheat farms will become unviable. That’s
the word from Tim Flannery, chief climate commissioner for
the state. A recent study found a 2 degree Celsius increase in
average temperatures shortens the growing season by nine
days and reduces yields up to 20 percent. “If we look at 90
years or so, we can see that if we continue emitting globally
as we are, that...cropping may just not be possible throughout most of the state, and we’d see catastrophically large
declines in productivity.”
To make up for the 13 percent decline in Britain’s 2012
wheat crop, flour mills have been forced to import 2 million
metric tons (mmt) of mostly German wheat. It is the biggest
wheat import since 1980 and is expected to increase the
price of bread next year. Bread-quality wheat for delivery to
the worst affected areas of Britain recently rose to $340.18 a
ton. Ordinarily, the country is a net exporter of wheat, supplying markets such as Spain and North Africa.
Domestic wheat prices in Russia have risen about 60
percent since spring and are expected to rise further as
a drought-hit market exceeds state stock supplies. The
country is currently selling 1.25 mmt of grain from its 5
mmt stock, but those sales, which started in October at
130,000 tons per week, haven’t had much effect. Prices for
third-grade wheat rose to $340 a ton at the beginning of
December.
Yemen recently received 17,000 metric tons of wheat donated by the U.S. The United Nations World Food Program
(WFP) said the wheat shipment was worth $15 million. It is
enough to feed 800,000 hungry Yemenis for six months.
The wheat, which arrived in a bulk vessel, was repacked on
the dock into 50 kilogram bags. A WFP survey released last
May found more than 10 million Yemenis—44.5 percent of
the population—are food insecure. The U.S. government
earmarked $52 million to support WFP activities in Yemen in
2012.
India, which banned wheat exports for four years between 2007 and 2011, is now suggesting its reappearance
in the export market may stabilize rising global prices. The
government has already allowed 2 mmt to be sold overseas
and in late November, approved another 2.5 mmt of additional exports. India, which resumed wheat exports in Sept.
2011, has emerged as a major exporter after supplies from
Black Sea origin wheat along with Australia and European
Union supply was reduced because of drought. The exports
serve as a relief valve to poorly stored Indian wheat and
fears of huge losses due to rotting. The bulk of Indian wheat
has been destined for the Far East including such countries
as Korea and Taiwan. Other customers include India’s neighINA
bors such as Bangladesh, Sri Lanka
Yemen.
ENTand
ARG
Farmers in Argentina warned the government early
on that they would be planting less wheat due to the tight
controls imposed on exports to keep domestic prices down.
Now, according to an unnamed
grain exporter representative, the government has cut the
amount of wheat it will allow for
export by 1.5 mmt to 4.5 mmt total.
Most of the country’s wheat exports
go to neighboring Brazil. With less
Argentine wheat for export, Brazil will
have to look elsewhere. They won’t be
looking to the Pacific Northwest of the
U.S. to make up any difference, however, and
it’s not because Brazil is hard to get there
A
ENTIN
ARG
from here. Brazil has an embargo against
wheat from the PNW due to TCK Smut. But
that’s another story.
China’s dependence on foreign markets
for its food is likely to increase as the population grows and the economy develops.
That’s the word from Chen Xiwen, director
of China’s Communist Party’s policy-making
body for rural affairs. He said the migration of
230 million farm workers to cities since 2000 has eroded the
country’s self-sufficiency in grain. Last year, China became
a net importer of wheat, corn and rice at the same time.
BRITAIN
CHINA
RUSSIA
IUM
BELG
UKRAINE
GERM
INDIA
ANY
KAZAKHSTAN
JAPAN
CHINA
INDIA
YEMEN
Despite
Chen’s
UKRAINE
GERM
ANY
statements, China
had another abundant grain harvest
in 2012 with corn
(208 million metric
tons (mmt)) surpassing rice (204 mmt) for the first time to
become the country’s biggest crop in both area and output.
Although the area devoted to wheat fell by half a percent, a
3.3 percent increase in yield made up for the loss resulting
in a crop exceeding 120 mmt. Among the strategies China
YEMEN
is using to protect its wheat crop is the organization of
specialized control teams whose job is to drench fields with
pesticides when insects show up.
IUM
BELG
With a declining birth rate in Japan, dogs have become
like children, and people want to share Christmas and other
holidays with them. That means canines want cake too. A
pastry chef and Italian restaurant owner, Naohiko Nagatani,
came up with a dog-friendly Christmas cake that leaves out
chocolate and alcohol. He makes the cake from spelt, a type
of wheat he says causes fewer allergies in dogs than regular
flour.
Kazakhstan might not have as much wheat as first
thought. According to the Kazakhstan Agriculture Ministry,
grain-belt governments are suspected of exaggerating the
size of their crops to win political favor. Although the three
biggest grain regions reported a combined crop of 11.2
mmt, satellite monitoring showed a crop of just 9.8 mmt.
A farmer from one region recently wrote to the agriculture
minister claiming he had been compelled to report higher
yields and said the distortions are not just small adjustments. Those who refuse to increase their yields, he said, are
intimidated by inspections from various government bodies.
The U.S. Department of Agriculture forecast Kazakhstan’s
harvest at just 7 mmt.
Ukraine
RUSSIA
will embargo
KAZAKHSTAN
wheat
exports.
IA
AL
STR
AU
Ukraine won’t embargo wheat exports.
JAPAN
Ukraine will say it
won’t embargo wheat
CHINA
exports, but in practice, will embargo wheat exports. Confused? Ukraine initially
INDIA embargo exports from Nov. 15 onward due to
said it would
a weather-damaged harvest. The USDA puts the country’s
crop at 44.6 mmt in the 2012/13 marketing year compared
to 56.7 mmt last year. But fears of a steep run up in price
due to mention of the word “embargo” (remember Russia’s
embargo in 2010?) led the country to backtrack, much to the
delight of the U.S. which commended Ukraine for showing restraint. “Governments around the world can help to
reduce the risk of a food-price crisis by abstaining from food
export bans and other artificial barriers that increase
price
IA
AL
STR
AU
volatility and harm the world’s most vulnerable
citizens,”
said the U.S. Mission to the United Nations. The next day,
news stories emerged which said Washington is well aware
Kiev is restricting imports. “Ukraine is simply not calling a
spade a spade,” said a story in the Financial Times of London,
claiming that Ukraine is using administrative means to make
sure the grain flow stops.
BRITAIN
Despite strong demand and relatively high cereal prices, land
constraints and slow yield growth will limit any increase in
European Union wheat output, said the European
Commission’s agriculture department. Milling wheat yields
in the EU are forecast to grow by a maximum 4 percent in
the coming decade. The EU produces more wheat than any
other crop. Plantings currently account for about a third
of arable land within the region. Barley is the second most
widely grown grain, occupying a fifth of all cropland, but it is
expected to decline 12 percent between now and 2022.
WL
FEATURE
From heyday to gone away
Milling industry peaks at turn of century; mergers, acquisitions take their toll
By Norman Reed
What I call the big city era dates from 1890 till 1960
and could be called the heyday of our industry. Between
1880 and 1893, the Pacific Northwest experienced a rate
of growth seldom equaled in any part of the U.S. Tacoma
and Spokane’s
growth were even
Editor’s note: This is the second
more imprespart of a two-part series looking
sive. This growth
at the history of Washington’s
was, in a great
flour mills. The first article, which
part, the result of
appeared in the December issue
the development
of Wheat Life, covered the early
of the railroads
days of milling to approximately
and their aggres1890. Included with that first
sive advertising.
article was a list of Washington
(and the Palouse region of Idaho)
Railroads allowed
flour mills.
shipping of grain
to distant mills.
Additionally, trade
with the Orient was opening up. At the same time, flourmilling technology was converting to roller mills instead
of the stone mills. These developments spelled the
beginning of the end for the gristmill
era. Some gristmills
stayed in
operation after being acquired and modernized by city
conglomerates, but for the most part, flour milling moved
to the cities.
City mills
Spokane grew first, and by 1900, was said to rank as the
seventh largest milling center in the nation, just behind
such locations as Niagara Falls, N.Y., Grand Rapids, Mich.,
and Minneapolis-St. Paul. Spokane mills included the
Echo Flour Mill, C & C Flour Mill, Centennial Flour,
Washington Grain and Milling, the Spokane Flour Mill
and the Lakin Milling Co.
Puget Sound was an ideal location for exporting flour.
First in Seattle was the Novelty Mills out towards west
Seattle. In 1898, Centennial built its mill on the waterfront
just south of the current sports domes. By 1906, that stretch
of waterfront was home to three mills, the Hammond
Milling Co., Albers Cereal Mills and Centennial Flour. The
Fisher Flouring Mills opened on Harbor Island in 1911.
Seattle now had seven mills as the Charles H. Lilly Co.
produced flour as well as feeds, seeds and fertilizer, and the City Mills was just north of downtown. Tacoma had the Puget Sound Flouring
Mills, the Tacoma Grain Co., Watson & Olds,
Albers Milling Co. and the Cascade Cereal
Mills. Everett had its Everett Flour Mill producing Best Everett Brand. Bellingham had a
big mill on South Hill next to the water where
the three-masted schooners could easily
load up.
The grain trade was huge as well.
Tacoma had a mile-long grain warehouse on the waterfront handling wheat.
Railroad trains stopped on the shore
side, and the great ocean-going schooners tied up at the water side. Large
quantities of Washington’s wheat also
shipped out of Portland and Astoria,
R eed
Ore. Combined, the grain and flour
orman
of N
courtesy
trade ranked close to lumber as our repostcard
gion’s major industry.
FEATURE
of N
orman
WL
R eed
courtesy
postcard
of N orman
courtesy
G R APH
PH OT
OGRA
P H courtesy
of N orman
Cereal mills were close relatives to flour mills, and, the most familiar
one in the Pacific Northwest was the Albers Bros. Milling Co. Albers
began in Portland and moved north to Tacoma and Seattle. They were
purchased by the Carnation Milk Co. of Seattle when Carnation was
unsuccessful in stopping Albers from using the trade name “Carnation
Mush.” Albers was able to keep their local mills going right into the 1960s
and 70s by concentrating on pet and animal foods. Today, owned by the
Continental Mills, they are still in the animal food and cornmeal business,
but do not have a mill in Washington.
R eed
California had become a center for wheat and flour during its 1850s
gold rush, and the leader there was the Sperry Flour Company
of Stockton. Sperry moved into the northwest in 1920 with the
acquisition of the mills of the Portland Flouring Mills Co. General
Mills of Minneapolis, the nation’s giant, moved west in 1929 to
merge with the Sperry Flour Company. During the 1920s and 30s,
many of the smaller mills in Washington were deemed too small
or technically obsolete and were closed. General Mills operated the
old Sperry plants in Tacoma and Spokane until 1965. The Tacoma
plant was razed. The Spokane mill was sold to VWR United (the
Centennial, United Pacific, Van Waters and Rogers combine) in 1970
and was converted to a starch-gluten plant. In 1981, the plant was sold
to the Archer Daniels Midland Co. (ADM), and it is being operated
today as a mix plant.
PH OTO
Mergers, acquisitions and conglomerates
are not new. The flour industry, in Minnesota, started
doing it back in the 1890s. In the Pacific Northwest, Spokane’s
C & C mill was purchased in 1895 by the Portland Flouring Mill Co.,
which by that time had nine mills operating in the west. North Pacific
Flour Mills of Walla Walla had mills in Walla Walla, Dayton and
Prescott, Wash., along with mills in Idaho and Wasco, Ore. In about
1902, H. P. Issacs, the owner of North Pacific Flour Mills, closed some
mills and sold some to the Portland Flouring Mills Co. who also
owned the Puget Sound Flouring Mills in Tacoma.
R eed
Where did they all go?
WL
FEATURE
Washington’s largest and longest lasting milling company was the Centennial Mills, which was founded in
1889 by Iowan George Pahl who owned the Centennial
Mills in Avaca, Iowa. Moritz Thomsen soon became president. On his way to becoming a business tycoon of the
early 20th century, Thomsen came to Seattle and in 1896,
began dredging up land out of Elliot Bay for his second
mill. That waterfront land was the beginning of Seattle’s
southerly industrial district. Thomsen built or bought
mills in Wenatchee, Ritzville, Pasco, Sprague, Reardan,
Vancouver and Creston, Wash., and in Wasco, Ore. Known
as the “Business Doctor,” at one time he was president of
14 corporations. He purchased and revived the floundering Pacific Coast Cracker Co. During World War I, the
shipbuilding industry, needing land for expansion, bought
out the Centennial Mill. By 1931, Centennial had purchased the Tacoma Grain Co. on the Old Town Waterfront
in Tacoma. In 1939, they built a new modern mill on East
Trent Street in Spokane. In 1948, Centennial bought the
large Crown Mills of Portland from the Balfour-Guthrie
Co. and moved its headquarters there from Seattle in
1958. Moritz Thomsen’s grandson, Moritz Milburn, was
president and also a principle in a new conglomerate, the
United Pacific Co., which picked up ownership of the mills
in 1960. Under this new ownership, the plant was modernized, and the firm again became a leader in the milling
industry with its effort to modernize old mills. In 1981,
ADM bought Centennial. ADM is still operating the huge
Trent Street plant in Spokane.
The Fisher Flouring Co. of Seattle, in 1965, became
Western Washington’s only mill. It flourished for many
years before being acquired by the Pendleton Mills of
Oregon. Pendleton was associated with the popular Swans
Down Cake Flour brand of the General Foods Co. They
closed the Fisher Mill in 2002, and its production was
moved to Blackfoot, Idaho.
The other mill still operating in Washington is the
former F. M. Martin Grain and Milling Co. mill in Cheney.
It was sold in 1942 to the National Biscuit Co. and is now
owned and operated by ADM. An interesting side note
here is that the son of the founder of the F.M. Martin Grain
PHOTOGRAPHS courtesy of Norman Reed
and Milling Co., Clarence D. Martin, worked in the business but is better known as Washington’s governor from
1933 to 1941. His son, Clarence D. Martin, Jr., was undersecretary of commerce in the Kennedy administration
during the early 1960s.
We had you in mind.
We had you in mind.
Just a few of these defunct city mills can still be seen today. The C & C Flour mill building in Spokane was remodeled into The Flour Mill Mall. The Albers mill in Tacoma
was rebuilt into an apartment building. The Fisher Flour
Mill in Seattle still stands empty.
The All-New 2013 Miller
Condor
GC Series
The All-New
2013 wraps
Miller
you
in quiet
Condor
GCsophistication
Series wraps
with
newsophistication
SprayView
youthe
in quiet
with the new
SprayView
“Comfort
Zone”
cab.
“Comfort Zone” cab.
Comfort that you deserve.
Comfort that you deserve.
CONDOR,
CONDOR,
Redefined.
Redefined.
Climb aboard. You’ll be
Climb aboard. You’ll be
struck
struckbybyhow
howconvenient
convenient
it itisistotoenter
enterthe
the SprayView
SprayView
cab.
cab.Then
Thenyou’ll
you’ll notice
notice
how
howeasy
easyititisisto
to access
access the
the
engine,
engine,liquid
liquidspray
spray tank,
tank,
orordry
drybox
boxfrom
from the
the wide,
wide,
safe
safefront
frontaccess
access ladder
ladder
platformon
onthe
the new
new
&&platform
Condor.
Condor.
www.millerstn.com
www.millerstn.com
5026 ROTARY CUTTER
Hydraulic phasing
cylinders for level lift
Spring steel bushings
at all major pivots
15’, 26’, 30’ & 42’ Models
1000 RPM heavy-duty
dive line
Suspension for center
& wing frames
Your Local Miller Dealer
Crop Life October_2012_Miller.indd 1
Crop Life October_2012_Miller.indd 1
9/12/12 9:03 AM
9/12/12 9:03 AM
RS320 ROCK PICKER
3.2 Cubic yard hopper
Superior rock picking performance
Pioneer West, Inc.
64118 McDonald Lane • LaGrande, OR 97850
Contact Greg at 541-786-1000
SRW 1400 ROCK WINDROWER
Ask Us About Our Leasing Options!
We’re Your PNW Sprayer Experts
Sprayers-Parts-Guidance Systems & More
1-877-253-9378
www.pioneerwestinc.com
WL
FEATURE
The little town that did
Grocery store set to open in LaCrosse’s restored mercantile building
For more than three years, the residents of LaCrosse, Wash.,
have had to drive 60 miles round trip to get to the nearest fullservice grocery store. Come the first of the year, they’ll only have
to drive a few blocks. That’s when Wendy Holliday, with the
help of the LaCrosse Community Pride (LCP) nonprofit group,
will open the doors to the LaCrosse Market Inc., housed in the
newly restored LaCrosse mercantile building.
Holliday, who grew up in Benge and now lives in St. John with
her two boys, had been looking for work since January 2012,
when the Colfax Grange merged with several other companies,
and her job of 18 years was terminated.
“When looking for a job for so long, it gets very discouraging,”
Holliday said. “My dad called one morning and said ‘What do
you think about doing a grocery story in LaCrosse?’ I thought
about it for awhile. I knew how to keep books; I knew how a
business works. I thought it would be cool to have that opportunity to learn more.”
Photos by Lois Startin
The grocery store space in the old LaCrosse mercantile building.
The LaCrosse Community Pride group is hoping to have the space
finished in time for a January opening.
Holliday and her father, Mike, walked through the building
with Lois Startin, a member of the LCP, a group that spearheaded the building restoration and is working to revitalize
LaCrosse.
“I could see the possibilities,” Holliday said, even though
the interior of the building was still pretty empty. “You look at
something that is bare and go, ‘Okay, this is going to be really
exciting and challenging for me.’”
Holliday took her resume to the next meeting of the LCP and
presented her ideas for the grocery store. That afternoon, the
LCP made their decision and notified Holliday. While the LCP
will be responsible for finishing the interior of the grocery story
and installing shelves and coolers, Holliday will be leasing the
space from them and buying the inventory and cash register.
Besides basic groceries and general merchandise, Holliday
said that she will stock inventory from Arrow Machinery, such
as filters and oil, so that farmers can get what they need with
one stop. Eventually, Holliday also wants to offer services such
as espresso and lottery tickets.
“It’s going to mean a lot to the community to have a grocery
store,” Holliday said. “They’ve been without one for so long.”
“Wendy has great business skills,” said Startin. “Because of
her experience (at the Colfax Grange), I think she’ll do a great job
for us.” Startin said that the community can’t wait for the grocery store to open its doors. She said that the fact that Holliday
was from a rural area was a big plus. “It is easier to adjust,
instead of coming from a big metropolis to a small town.”
In addition to the grocery store, the mercantile
building will eventually also house a community
center, a public library and several professional offices. Holliday is hoping to open the grocery store in
January, with hours from 8 a.m. to 6 p.m. Monday
through Saturday. While she will be the main
workforce at the store, Holliday said that her mother,
Bonnie, will probably lend some helping hands.
“The LaCrosse Community Pride group and the
community are very thankful to me and my family
for stepping up and opening their grocery store,” she
said, “But the reality of it is that I am very grateful to
that group of people that have given me an opportunity when no one else would. I was down to only a
couple of months left with my unemployment benefits and had no idea what I was going to do to live.
The LaCrosse Community Pride group has given me
a great gift, and I thank them.”
QUOTEWORTHY
“Reforming farm
subsidies, very
important to do,
lots of room to do
sensible reforms in
that context. And they
can raise substantial
amounts of money.”
—Treasury Secretary Tim Geithner
on CBS’ “Face the Nation.”
“Don’t let somebody else craft the farm
legislation who may not fully understand all
of the implications.”
—Agriculture Secretary Tom Vilsack warning congressional
committees that if they don’t strike a deal soon, the White House
and Republicans working to avert the fiscal cliff may cut farm
programs that lawmakers want to protect. (Associated Press)
“It’s one of the many
reasons we need to
get a five-year farm
bill done so people
who don’t support
crop insurance don’t
come back at it and
try to cut it.”
—Sen. Debbie Stabenow
(D-Mich), who leads the Senate
Agriculture, Nutrition and
Forestry Committee, agreeing
with Sec. Vilsack’s comments. (Associated Press)
“It is time we put aside party dynamics
and focus instead on the needs of all
Washingtonians.”
“There has been a lot of
misinformation circulating about
supposed regulatory overreach,
so this final rule will hopefully
put to rest any remaining anxiety
regarding ‘farm dust’ regulation by
EPA.”
—National Farmers Union (NFU) Vice President of
Government Relations Chandler Goule on the EPA’s
decision not to tighten farm dust standards. (AgriPulse)
“It’s fair to say milk prices will
increase, and that’s an unfortunate
circumstance...Consumers
shouldn’t have to have higher milk
costs because Congress can’t get
its work done. This can be worked
out. There has to be a little give,
there has to be a little take … It’s
just obviously going at a pace that
needs to pick up.”
—Agriculture Secretary Tom Vilsack at a press
conference on the expectations that milk prices will
increase if a farm bill isn’t passed before the end of
2012. (www.politico.com)
“At times, we have been very
fragmented, so the goal is to
have one clear voice so we’re not
sending contradictory messages.”
—David Douglas, president of Douglas Fruit Co. in
Pasco, on the possible consolidation of lobbying
efforts by the Washington State Horticultural
Association and the Yakima Valley Growers-Shippers
Association. (Capital Press)
—Washington Sen. Rodney Tom of (D-Bellevue) on his and Sen. Tim
Sheldon’s (D-Potlatch) move to join Senate Republicans in a powersharing arrangement to take over the Senate. (Associated Press)
THE
BOTTOM LINE
Good records are a part of a successful operation
By Todd King, CPA
Leffel, Otis & Warwick, P.S.
Farm financial records are an essential part of any successful farming operation. An accurate set of financial records lays the foundation for good management decisions.
These statements come from a person who focuses little
on the details or pennies, but rather on the entire picture.
Those of you who have ever worked with me or listened
to me speak have gathered that my focus tends to be on
the big picture and proactive planning. At the same time, I
understand the need for adequate financial records.
cares if the check is posted to supplies expense or repairs
expense? Who cares about the 67 cents you are unable to
track down? A cost-benefit relationship needs to be kept
in mind when deciding how much of your management
resources you want to spend in record keeping versus
managing other aspects of your farm. Farmers need good
records to properly manage their businesses, but if they
spend all their time searching for 67 cents, they have little
time to manage their businesses.
Tax planning with good records
Most farmers are on the cash basis of accounting for
In working with hundreds of farmers over the past 25
income reporting purposes. This simplifies the recordyears, I have often tried to pinpoint what makes some
keeping process in that the tax preparer needs only a list
farmers very successful while others tend to struggle. I
of cash coming in and cash going out. Simple programs
have noted that one common trait possessed by successful
such Quicken or Quick Books are inexpensive and very
farmers is that they always have a good idea of where they
adequate for the task. These programs, used properly, will
are at financially and where they are headed. If you do
categorize the year’s receipts and disbursements as well as
not know where you are at, it is impossible to determine
provide a bank reconciliation to detect errors or omissions.
where you are headed. Successful people know where
While the above records will facilitate the preparation
they are at for the year, and more importantly, they know
of the tax return and keep you out of trouble in the event
why. Once they have told me how this year went, they can
of an Internal Revenue Service audit, the real benefit of
go on to tell me what they are expecting out of next year
good tax records is the ability to plan. The farmer that has
and why. Having your finger on the pulse of what is going
his records up-to-date before year end and sits down with
on in your business is invaluable. How do these people
a tax professional familiar with farm taxation will likely
have such a thorough understanding of their business,
save considerable tax dollars. Again, the key to saving tax
where it is at, and where it is headed? An accurate set of
dollars involves three things:
financial records is like a good GPS; it consistently tells
• Good financial records;
you where you are at. Good financial
records provide a foundation that
•A
CPA familiar with farm taxaSponsored by the
allows you to build management decition; and
sions that fit your operation.
Agricultural Marketing
•P
roactive planning done prior to
Good Records
Good records accurately report
necessary financial information to the
tax preparer and other users. These
records should be free of material
errors that may distort the financial
picture. Good records, in my mind,
are not always meticulous records.
Often farmers will spend considerable
time in an effort to arrive at what I
will call very meticulous records. Who
& Management
Organization.
For more information and
a schedule of classes visit
www.lcammo.org.
year end.
If any of the above three items is
absent, the opportunity to maximize
the benefits of tax planning is lost and
so is the money you could save.
Budgets
Most bankers require farm clients to
prepare budgets on an annual basis.
These bankers are asking the borrowers to look into their crystal ball and
tell them what they see for the future.
THE BOTTOM LINE
It forces the farmer to take very
simple things and organize them
in a fashion that shows them where
they may be in the future. Items like
expected yield, expected price, fertilizer costs, fuel costs, etc., are items
that most farmers can reasonably
estimate. Once all these estimations
are organized, it projects what next
year’s bottom line looks like. Many
clients have pointed out to me that
once the wheat price moves 50 cents,
their budget is no longer accurate.
Once the tractor motor blows up,
their budget is off. The real value of
a budget is not in the bottom line
profit or loss as indicated by the budget. The true value associated with
the budgeting process is the forced
thought process that the farmer goes
through in preparation of the budget. Remember, successful farmers
always know where they are at and
where they are headed. The budget
paints a mental picture of what you
expect for next year, and as the year
goes on, you are constantly measuring how you are doing for the year.
Again, the budget does not need
to be overly detailed. It should be
designed to fit the needs of your
operation.
The capital budget is another tool
in the budgeting process. The capital
budget is a wish list of equipment,
buildings or land. This list is typically prioritized based upon need and
indicates an estimated cost of the
respective item. Items on the capital budget are typically purchased
based on the priority assigned as
funds become available.
Conclusion
Successful farm operations
are built on good management.
Adequate financial records are
essential to effective management.
However, financial records are not a
substitute for management. Good re-
WL
cords in and of themselves have little benefit to the farm operations. The benefit
to the farm operation occurs when these records are coupled with a proactive
manager that uses these records to guide the direction of the farm. Good managers recognize the need for adequate records and farm budgets. These managers find a balance between the time spent on record keeping and the time spent
managing their business.
Todd King, CPA, is the president of Leffel, Otis & Warwick, P.S., and works out of the
firm’s Odessa office. The majority of the firm’s 5,500 clients are family farms and ag-related businesses, and the firm’s concentrated focus of practice has allowed a thorough
understanding of the business issues facing today’s farmers. Todd has advised clients
on these business and tax issues since coming to the firm in 1984. For more information visit www.leffelotiswarwick.com.
When You Need Strength to Make
it Through The Tough Times
Take Off ST™ is a patented
technology containing the
plant metabolite 2-oxo- glutaramate with an advanced
nutrient complex, providing
the latest innovation in seed
treatments
to
maximize
nutrient effeciency in the
soil.
BIAGRO WESTERN
SALES, INC.
12222 Avenue 352,
Visalia, CA 93291
(559)-635-4784
(800) 868-6446
Fax (559) 625-9255
e:mail: [email protected]
Contact:
Scott Tullis
(541) 571-3152
e:mail: [email protected]
Re-inforce Your Roots
With Take-Off™
(Right) Lola Edwards,
7, Rowan Edwards, 4,
Decoy and Wil Edwards
up on Steptoe Butte.
(Bottom right) Ben
Barstow of Palouse
helps Lola and Rowan
into his combine for a
ride. (Bottom left) Lola
and Rowan run in Ben
Barstow’s cut wheat
field.
Photos by Andra Edwards
Email pictures to [email protected].
Include location of picture, names of all people appearing in the picture and ages of all children.
Your
wheat
life...
Maria Buckingham (above) and Naomi Alhadeff
(left) cutting wheat at the WSU Spillman
Research Farm in August. Buckingham and
Alhadeff were new educators for the Wheat
Week program, and this was their first
experience harvesting wheat. The wheat
is taken to classrooms and put into the
hands of children across Washington
as part of the Wheat Week education
program funded by the Washington
Grain Commission.
Photos by Kara Kaelber
A different way of unloading wheat at Olson Valley Ranch in Bonners Ferry, Idaho.
Photo by Erik Olson
Advertiser Index
aemsco Inc . . . . . . . . . . . . . . . . . . . . . . . . . 75
Ag Enterprise Supply Inc. . . . . . . . . . . . . . . . . 33
AGPRO . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
AmericanWest Bank . . . . . . . . . . . . . . . . . . . 11
Battery Systems . . . . . . . . . . . . . . . . . . . . . . 17
Biagro Western . . . . . . . . . . . . . . . . . . . . . . 71
Brock Law Firm . . . . . . . . . . . . . . . . . . . . . . 25
Byrnes Oil Co. . . . . . . . . . . . . . . . . . . . . . . . 22
Carpenter, McGuire & DeWulf P.S. . . . . . . . . . . 32
Class 8 Trucks . . . . . . . . . . . . . . . . . . . . . 15, 31
Connell Grange Supply Inc. . . . . . . . . . . . . . . . 36
Connell Oil Co. . . . . . . . . . . . . . . . . . . . . . . 13
Cooperative Ag Producers Inc. . . . . . . . . . . . . . 37
Country Financial . . . . . . . . . . . . . . . . . . . . 29
Diesel & Machine . . . . . . . . . . . . . . . . . . . . . 22
Edward Jones . . . . . . . . . . . . . . . . . . . . . . . 23
Evergreen Implement Inc. . . . . . . . . . . . . . . . . 35
Farm & Home Supply . . . . . . . . . . . . . . . . . . 19
Frieling’s Ag Equipment . . . . . . . . . . . . . . . . . 36
Great Plains Equipment . . . . . . . . . . . . . . . . . 37
Hillco Technologies . . . . . . . . . . . . . . . . . . . . 7
Inland Oil & Propane . . . . . . . . . . . . . . . . . . 25
J & M Fabrication . . . . . . . . . . . . . . . . . . . . . 31
Jess Ford . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Jones Truck & Implement . . . . . . . . . . . . . . . . 33
Landmark Native Seed . . . . . . . . . . . . . . . . . 36
Lange Supply Inc. . . . . . . . . . . . . . . . . . . . . . 28
Les Schwab Tire Centers . . . . . . . . . . . . . . . . . .7
MachineryLink . . . . . . . . . . . . . . . . . . . . . . 76
Micro-Ag . . . . . . . . . . . . . . . . . . . . . . . . . . 23
North Pine Ag Equipment Inc. . . . . . . . . . . . . . 29
Northwest Ag Show . . . . . . . . . . . . . . . . . . . .9
Northwest Farm Credit Services . . . . . . . . . . . . 19
Northwest Outdoor Properties . . . . . . . . . . . . . 17
OXARC . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
PNW Farmers Cooperative . . . . . . . . . . . . . . . 33
Pacific Northwest Direct Seed Association . . . . . . 17
Perkins & Zlatich P.S. . . . . . . . . . . . . . . . . . . .15
Pioneer West Inc. . . . . . . . . . . . . . . . . . . . . . 67
Pomeroy Grain Growers Inc. . . . . . . . . . . . . . . 12
RH Machine . . . . . . . . . . . . . . . . . . . . . . . 33
Rainier Seeds . . . . . . . . . . . . . . . . . . . . . . . 27
Ramada Airport Inn . . . . . . . . . . . . . . . . . . . 27
Rock Steel Structures . . . . . . . . . . . . . . . . . . . 18
Seedmaster Drills–Kevin Klein . . . . . . . . . . . . . 35
Spectrum Crop Development . . . . . . . . . . . . . . 31
Spokane Ag Expo . . . . . . . . . . . . . . . . . . . . . 12
Spray Center Electronics . . . . . . . . . . . . . . . . . 28
SS Equipment . . . . . . . . . . . . . . . . . . . . . . . 23
State Bank Northwest . . . . . . . . . . . . . . . . . . 17
T & S Sales . . . . . . . . . . . . . . . . . . . . . . . . . 13
The Whitney Land Co. . . . . . . . . . . . . . . . . . . 27
Walter Implement . . . . . . . . . . . . . . . . . . . . . 67
Western Reclamation . . . . . . . . . . . . . . . . . . . 11
Western Trailers . . . . . . . . . . . . . . . . . . . . . . 15
Wheatland Bank . . . . . . . . . . . . . . . . . . . . . 13
Wheeler Industries . . . . . . . . . . . . . . . . . . . . 75
Wilbur-Ellis–In-Place . . . . . . . . . . . . . . . . . . . 4
Windermere Blue Mountain Realtors . . . . . . . . . 23
Windermere Coeur d’Alene Realty Inc. . . . . . . . . 29
Thank you to all of our advertisers. Support those who support your industry.
PO ST CA RD
S courtesy
of Norman
Reed
MACHINING • FABRICATION • REPAIRS
Quality machining and fabrication services, done right.
THE FIRST TIME!
JESS FORD
Celebrating our 75th Year of doing business
with Washington State Farmers
Store Manager: Wade Jess
Sales Manager: Buddy Streeter
Store Manager: Jim Jess
Sales Manager: Clive Cole
509-633-0110
509-334-6000
Grand Coulee, WA
We Make and/or Repair
•Hard-to-find or Discontinued Parts
•Worn or Bent Shafts
•Front-Axle King Pin Bushings
•Pulleys, Sprockets, Augers, Pins
•Custom Equipment and More!
Full Job-Shop Capabilities:
•Manual Milling & Turning
•CNC Milling & Turning
•Surface Grinding
•Blanchard Grinding
•MIG, TIG, ARC Welding
•Full, custom manufacturing
Pullman, WA
www.JessFord.com
509-534-4556
1118 North Howe Road, Spokane, WA 99212
www.wheelerindustries.net • [email protected]
Truly Reap What You Sow
With A Cost-Saving Harvest
Is your combine cutting into your farm’s profits?
Rent from MachineryLink and get your depreciating asset off your balance sheet,
or reduce expenses by supplementing ownership with a machine rental.
Questions? Contact your Regional Manager:
Matt Hays
509.378.8115
[email protected]
farmlink.com

January - Wheat Life

Transcription

Similar documents

All Varieties are Not Created Equal Contest Elevator Drop Points

flour matters - King Arthur Flour

Introgression lines of Triticum timopheevii in cultivated

Norouz Persian New Year - IALA

Save page as PDF

2 for 1 APPETIZERS

Ultragrain® Whole Wheat Flour.

2014 BGRI Solis Martel

Israel Bread Tour - Heritage Grain Conservancy

Wheat Allergies