November - Wheat Life
Transcription
November - Wheat Life
WHEAT LIFE The official publication of the Washington Association of Wheat Growers NOVEMBER 2013 Carrot vs. stick Ecology tours no-till field as incentive-based programs in the crosshairs WSCIA and the variety survey Feeding a harvest crew Address Service Requested Washington Association of Wheat Growers 109 East First Avenue, Ritzville, WA 99169 WHEAT LIFE Volume 56 • Number 10 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 NOVEMBER 2013 President’s Perspective In closing By Ryan Kregger With the arrival of fall and the transition to another active “WAWG season,” my term as your president comes to a close. Since this is the November issue, I think it is right to reflect and give thanks to the ones who have helped throughout the year. First, I’d like to thank you for allowing me to be your spokesman this year. When asked to go through the chairs of this organization, I had a feeling that it would be an experience like no other, and I was right. With any organization, there is an ebb and flow, but I can honestly say that your state wheat growers’ organization is one of the best organizations I have ever worked with. The presidents that went before me did an excellent job, and hopefully, I lived up to the standards they have set. Thank you, Brett Blankenship, Ben Barstow and Eric Maier for your passion, dedication and, most importantly, your humor, which made the past four years memorable. Next, the general board, the “EC” and my fellow line officers who miss days on their farm for the betterment of this industry and for their neighbors and fellow farmers. Thank you for all your service. And finally who could ever forget the staff? Just let me say that we are lucky to have both Kara Rowe and Michelle Hennings as our directors. The entire staff has gone above and beyond for this organization and has done their work in a professional way with a smile. Thank you. There have been a few changes over the last four years that I’d like to speak to. First, our internal structure has been addressed. We have worked to clarify roles and responsibilities concerning WAWG officers and staff. After this was done, all of us know who has the “buck,” and where it stops. WAWG is working very well thanks to this change. Second, we have increased the communication between the general board and line officers. As a line officer, we enforce the will and wishes of the board. State meetings that took a couple of hours, now stretch into the afternoon with lively discussions. Third, we increased communications between the wheat groups in this state. WAWG officers and staff now routinely meet with and go to the Commission and Foundation meetings. We are also hosting the first Washington Grain Alliance meeting with representatives from all three groups during the upcoming Tri-State Convention. Speaking of other states, WAWG has been meeting with other states at a PNW and national level and increasing our visibility. Next, WAWG continues to support local farmer continuing education by producing the AMMO program and Wheat University. These programs have been met with great success. These are some additional items that have been occurring on top of the already busy lobbying efforts that we are well-known for. I am glad to continue the tradition of WAWG being a grower-driven organization. To be a strong group, we need growers and supporters to step up and fill positions. If you are asked, please consider this offer of service, because it is for the betterment of our industry, our community and, ultimately, your bottom line. With that I’d like to say thank you to my wife, Wendi, and children, Erich and Ethan, for their support and understanding the past four years. Cover photo: With help from local conservation districts and incentive-based programs, Eric Maier is returning a 1,000-acre field that has been in CRP for more than a decade back to production. Using the Spokane Conservation District’s Cross Slot drill, Maier was able to seed the field in only one pass, conserving moisture and minimizing soil disturbance. Photo by Ty Meyer of the Spokane Conservation District. All photos are Shutterstock images or taken by Wheat Life staff unless otherwise noted. Inside This Issue WAWG President’s Perspective Membership Form WAWG at Work Policy Matters To keep it from blowing away Incentive-based programs on display Something smells fishy Lawsuit filed over state water quality standards Breaking it down U.S. wheat production costs by region There’s a graph for that USDA’s ERS charts the ups, downs of ag Profiles Hatley/Cobb Farmland Management Inc. WGC Chairman’s Column WGC Review Changes ahead for farmers Sitting down with WSCIA’s Jerry Robinson 2013 variety survey Privates, out-of-states gaining Giving soft white a hand Outside of PNW, Michigan is top producer Wheat Week Using grain as an educational tool Wheat Watch Rustling up some grub Feeding the crew from a kitchen on wheels The Bottom Line Your Wheat Life Happenings Advertiser Index 2 4 6 12 18 24 28 34 36 41 42 46 48 51 54 56 58 64 66 68 70 Latah County Historical Society, Photo Collection, 25-02-054.jpg 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 Gary Vocke, USDA Economic Research Service Mir Ali, USDA Economic Research Service Kara Kaelber, education director, Franklin County Conservation District T. Randall Fortenbery, Ph.D., Tom Mick Endowed Chair in Grain Economics, Washington State University Dale Cloninger, CRPC, Wheatland Bank WHEAT LIFE NOVEMBER 2013 3 WAWG MEMBERSHIP FORM Please check level of membership Grower $125 Partnership $500 (up to 5 partners) Landlord $125 Family $200 (up to 2 members) Convention $600 Lifetime $2,500 If you do not have an email address, or prefer hard copies, please include an extra $25 for Greensheet postage. Name Thank you to our current members We fight every day to ensure that life on the family farm continues to prosper and grow. WE NEED YOUR SUPPORT. If you are not a member, please consider joining today. Farm or Business Email County Affiliation (if none, write state) Circle all that apply: Producer Landlord Individual Industry Rep. Business Owner Other 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. Producer/Landowners (Voting Membership) Grower or Landlord $125 X X Family $200 X X (2 family members) Partnership $500 X X (1-5 family members) Convention $600 X X (2 individuals) Lifetime $2,500 X X (1 individual) One Vote per Member Fax WAWG Convention Free Registration Phone Annual Harvest Prints Zip National Wheat Grower Newsletter State Greensheet Newsletter City Wheat Life Magazine LEVELS OF MEMBERSHIP Address X X X X X X X X X X X X X WAWG’s current top priorities are: ✔ Ensure that a strong safety net for wheat farmers is formed through the • Sales tax exemption on fertilizer and pesticides federal farm bill • Ag wholesale B&O exemption ✔ Monitor the GM wheat situation and • Off-road fuel tax exemption support continued biotechnology research • Repair parts exemption and product and market development ✔ Preserve the ag tax preferences: Washington state continues to look for more revenue, and farmers’ tax exemptions are on the list. If these are important to your operation, join today and help us fight. More member benefits: Weekly Email correspondence • Greensheet ALERTS • WAWG updates • Voice to WAWG through opinion surveys • National Wheat Grower updates Washington Association of Wheat Growers 109EastFirstAve.•Ritzville,WA99169 509-659-0610•800-598-6890•509-659-4302(fax) www.wagrains.com Call 800-598-6890 or visit www.wagrains.com We Satisfy All Your Running Needs! The oldest flower shop in Spokane, founded in 1905. Call Today! ✤ FTD Master Designers on staff ✤ The highest quality fresh flowers ✤ Large selection of gifts in stock ✤ Plush teddy bears and animals ✤ Convenient downtown location 512 E. Pacific Avenue (Just East of Sherman) Spokane, Wash. 1-800-624-4151 509-624-4151 www.petersandsons.com ✓Shoes ✓Clothing ✓Accessories North 221 Wall Street Spokane, WA 99201 (509) 624-7654 10208 N. Division Street Spokane, WA 99218 (509) 468-1786 www.runnersoulspokane.com WAWG at k r wo WAWG stays connected with delegates during farm bill conference Now that the government is once again open, WAWG has been focused on the long-going talks to finalize the next farm bill. WAWG leadership was extremely pleased to see Rep. Suzan DelBene (D-Bothell) named to the conference committee. “It’s great to have Washington represented on this conference committee. Suzan has been an extremely involved and competent representative of Washington’s agricultural sector,” said WAWG President Ryan Kregger of Touchet. “Her staff has worked well with ours, always eager to better understand farm bill priorities for the wheat industry. Coming from northwest Washington, Suzan sees firsthand the diversity of Washington agriculture, and we believe she will be a great asset in negotiations.” WAWG has also remained in contact with all Congressional offices from Washington, and the bipartisan work has gained a strong and positive reputation for the organization. WAWG encouraged each office to support their peers working on the conference committee and support the final bill’s passage before Dec. 31. Another extension of the 2008 Farm Bill leaves much uncertainty for research and foreign market programs and is unacceptable. Farm Bill Conference Committee The House farm bill committee includes Frank Lucas (R-Okla.), as chair of the House Agriculture Committee along with five subcommittee chairs: Michael Conaway (R-Texas); Rick Crawford (R-Ark.); Steve King (R-Iowa); Austin Scott (R-Ga.); and Glenn Thompson (R-Penn.). Other Republicans on the roster include Mike Rogers (R-Ala.); Randy Neugebauer (R-Texas); Martha Roby (R-Ala.); Rep. Suzan Kristi Noem DelBene (D-Wash.) (R-S.D.); Rodney Davis (R-Ill.); Jeff Denham (R-Calif.); Steve Southerland (R-Fla.); Dave Camp (R-Mich.); Sam Johnson (R-Texas); Ed Royce (R-Calif.); and Tom Sen. Max Baucus Marino (R-Penn.). (D-Mont.) Democrats on the committee are Collin Peterson (D-Minn.); Mike McIntyre (D-N.C.); Jim Costa (D-Calif.); Tim Walz (D-Minn.); Kurt Rep. Kurt Schrader (D-Ore.); Schrader (D-Ore.) Jim McGovern (D-Mass.); Suzan DelBene (D-Wash.); Gloria Negrete McLeod (D-Calif.); Filemon Vela (D-Texas); Eliot Engel (D-N.Y.); Marcia Fudge (D-Ohio); and Ranking Member Sandy Levin (D-Mich.) The Senate side includes Debbie Stabenow (D-Mich.); Patrick Leahy (D-Vt.); Tom Harkin (D-Iowa); Max Baucus (D-Mont.); Sherrod Brown (D-Ohio); Amy Klobuchar (D-Minn.); Michael Bennet (D-Colo.); Ranking Ag Committee Member Thad Cochran (R-Miss.); Pat Roberts (R-Kan.); Saxby Chambliss (R-Ga.); John Boozman (R-Ark.); and John Hoeven (R-N.D.). 6 WHEAT LIFE NOVEMBER 2013 “Great sprayer made even better with a luxury cab. Well thought out cab streamlined into the new Apache. ” Bill Hoffman, Hays, KS Announcing the new 2014 Apache Sprayer – Now, you can surround yourself with luxury while you spray. WE HAVE TAKEN THE EXPERIENCE OF SPRAYING WITH AN APACHE TO A NEW UNIVERSE. IT STILL COSTS LESS TO OWN AN APACHE. NOW THE APACHE OFFERS AN EXHILARATING OPERATOR EXPERIENCE. Our new cab comes equipped with: • ETPilotSystem - 7” interactive color touch screen (swipe or stylist) - Track transmission, fuel economy, engine torque - Adjust automatic side mirrors, rear view camera and two different cruise control speeds • NewJoystickofferseasierhandling • Premiumleather,heatedseat • FourhighperformanceJensen speakers with Polk audio system (including 6 free months of SiriusXM) • Premiumbuddyseatwith portable cooler • Automatedclimatecontrolwith improved cooling and venting • Footthrottle Every sprayer we build still delivers the high standard of excellence our customers expect. The Apache’s lighter weight is easier on compaction compared to other best selling machines. The Apache weighs a lot less- at least 20%, as much as 42% lighter. In fact, it has our competitor’s attention, so they’ll try to spin less weight, but customers who rely on Apache know all about our impressive traction. Simply put, we can go where others will not (including 4wd with automatic traction control) — see video: www.etsprayers.com/tractiontest Simple. We have remembered that this is a sprayer, not a space ship, so we design it so it is actually easy to use. Efficient. Most sprayers deliver about 70% of the engine’s power to the ground. We deliver 98%. Horsepower costs a lot of money. On average our 1,000 gallon unit uses 3.3 gallons of fuel per hour, and our 750 gallon unit uses 2.8 gallons per hour. Apache’s warranty is unrivaled. Every Apache comes with a 5-year limited warranty including 1st year bumper-to-bumper (same coverage available in year two for $2,000) and includes a free end-of-first-season inspection through our Guardian plan. Quiet smooth ride. Our flex frame with patented hydraulic suspension includes a c-channel and pivoting front axle for lower wear and tear. Our double paned glass, extra-thick sound deadening floor mats and special cab mounting system translate to about 70 dB’s at 2300 RPM’s. About ET We are a private company engaged solely in the manufacture of sprayers based in Mooresville, IN. No one has stock options, so we are focused on what matters — you, the customer, instead of quarterly earnings and the stock price. When you call us you will get a real person who can answer your question. Act Now We are careful and conservative and normally sell out all of our production capacity soon after the launch. The best time to buy to get best price and availability is now. 1.855.426.2353 www.ETsprayers.com/new ADVERTISEMENT WHEAT LIFE NOVEMBER 2013 7 WL WAWG AT WORK Chairman Lucas talks to state agriculture groups Rep. Cathy McMorris Rodgers (R-Wash.) facilitated a conference call in mid-October between House Agriculture Committee Chairman Frank Lucas (R-Okla.) and agriculture representatives in Washington state. The call was beneficial for agricultural advocates to hear straight from the Chairman on farm bill topics important to Washington farmers and ranchers, such as foreign market development, research and crop insurance funding. WAWG’s Director of Affairs and Outreach, Kara Rowe, pressed the Chairman on his push to repeal the permanent law provision. “The permanent law provision in the current bill is the last surviving poker chip for the farmer and rancher,” Rowe said. Under the permanent law provision, if a new farm bill is not negotiated and the current bill is allowed to expire, then all farm program funding reverts back to farm policy of 1949, which would mean much higher program prices for some sectors, including wheat. “It’s just about the last card we can use to demand farm policy in Washington, D.C., and if they remove that provision, we have no power in future years,” said Rowe. “We strongly disagree with the Chairman’s opinion to try and repeal this provision.” According to Rowe, Lucas has very little support politically on this item. “He explained at length on the call that while he supports permanent law repeal, it will be an uphill battle to win favor in the overall conference.” The Chairman does agree with WAWG that marketing programs WAWG taking officer nominations It’s the time of year again when the leadership of WAWG is looking for a new officer to help represent his or her wheat farming neighbors. If you would like to nominate someone as the next WAWG secretary/treasurer, please contact the WAWG office at (509) 659-0610. Nominees must be current WAWG members. The time commitment of an officer is roughly one to two hours per week (phone calls, emails, etc.), and officers travel about four weeks out of the year, mostly in the winter/early spring months. Washington Grown brings in strong results after first airing The first episode of the television series Washington Grown debuted on Northwest Cable News (NWCN) in October with impressive marks, according to network executives. Friends of Farms and Forests, Washington State Seed Potato Commission, Washington Wheat Foundation and WAWG. Funding is also provided by the Washington Grain Commission. “We received some basic information from the Seattle market right away,” said Kara Rowe, director of affairs and outreach for WAWG. “What we didn’t see was people leaving the show. We actually gain more and more viewers throughout both the noon and prime-time 30-minute airings. Additional rating information is showing that more than 37,000 people are watching the show each week, and that number is trending upward.” For some perspective, that’s more people than the newly remodeled Washington State University Cougar Stadium holds. Rowe said that NWCN personnel were very pleased with the debut numbers showing in the Seattle market. The number of people visiting the wagrown.com website has also increased significantly since its launch in April. Washington Grown is a project of the Washington Farmers and Ranchers coalition, which is made up of the Washington State Potato Commission, Washington 8 WHEAT LIFE NOVEMBER 2013 “We have seen more than twice the amount of people visit our website in the last few weeks leading up to the show’s premiere,” said Rowe. “And most of those people are west of the Cascades.” Washington Grown’s Facebook page also has more than 6,500 followers, again mostly females under 50 years old from the west side of the state. “This information is telling us that we are connecting with the food-conscious, urban audience,” said Rowe. “What we are doing is working.” 2013 er t s i Regoday t s State ut witho Tri-State s r e d r bo GRAINN GROWERSS CONVENTIONN Reserv e space now Held at the Davenport Hotel in Spokane, Wash. Want to be on the air? The Hefty Brothers will be broadcasting their session on live radio In addition to their small seed company and agricultural chemical business interests, Darren and Brian Hefty host AgPhD each week on RFDTV. Hefty Seed Company has grown to 33 stores in 8 states. Mark Mayfield, MC Mark Mayfield was raised on a hog and cattle farm in southeast Kansas. He served as National President of the Future Farmers of America as well as Kansas FFA President and graduated with two degrees from Kansas State University in Manhattan, Kan. He spent ten years as an agricultural lobbyist for a Fortune 500 company, and for the last 25 years, he has been a full-time professional speaker and trainer who makes nearly 100 presentations annually. Mark’s philosophy is simple... say it with humor and people will take the message home. Join us for a panel discussion on biotechnology in the Pacific Northwest after the “event.” Entertainment by The Passing Zone MICHAEL NEFF PhD, WSU Molecular Plant Sciences STEVE JOEHL Monsanto Director of Industry Affairs for Wheat Other featured speakers will be: John Phipps Besides hosting U.S. Farm Report, John writes humor and commentary for Farm Journal and Top Producer magazines. Mark Gold As managing partner of Top Third Ag Marketing, Mark can be heard daily on Nebraska, Kansas and Missouri radio. Art Douglas A climate expert who has been giving mostly accurate predictions on regional temperatures and precipitation for 30 years. SHANNON SCHLECT US Wheat Associates Policy Director KURT HAARMANN Columbia Grain, Inc. Senior Vice President Falling numbers blues? Join experts to learn why dropping a plunger through a slurry of flour and water can cost you thousands of dollars. Find out if there’s anything you can do to protect yourself. November 13-16, 2013 WL WAWG AT WORK Thank you to our convention sponsors and exhibitors Without the support of industry sponsors and exhibitors, our annual convention would not be successful. We want to sincerely thank all those who have contributed to our wheat industry and have given their time and resources. PLATINUM Bayer CropScience Dow AgroSciences Idaho Grain Producers Association Northwest Farm Credit Services Oregon Wheat Growers League The McGregor Company NuChem Washington Grain Commission GOLD Anheuser-Busch BNSF Railway McCoy Grain Terminal MillerCoors SILVER CHS Connell Grain Growers Crop Production Services Forster Financial Les Schwab Tire Centers Mid Columbia Producers Inc. Monsanto Company Ritzville Warehouse Co. Rural Community Insurance Services Whitgro Inc. Wilbur-Ellis Company INDUSTRY SUPPORTER Ag Link Inc. AgVentures NW LLC Agrium Conda Phosphate Operations 10 WHEAT LIFE NOVEMBER 2013 BASF Big Bend Electric Cooperative Brock Law Firm Central Life Sciences Central Washington Grain Growers CoBank National Bank Cooperative Agricultural Producers Inc. Dye Seed Ranch Inc. JECO Supply LaughlinCartrell Inc. Leffel, Otis, & Warwick P.S. Morrow County Grain Growers North Pine Ag Equipment Inc. Northwest Grain Growers Papé Machinery Inc. Pendleton Grain Growers Pomeroy Grain Growers Primeland Cooperatives Ririe Grain & Feed SAIF Corporation Syngenta U.S. Bank Walla Walla County Wheat Growers Washington State Crop Improvement Association Wheatland Bank Exhibitors Ag Tech Services Agrium Advanced Technologies Baxter Commodities Bayer CropScience Byrnes Oil Company Capital Press Central Life Sciences CliftonLarsonAllen LLP Columbia Pulp Degesch America Inc Dow AgroSciences Evergreen Implement Farm Equipment Headquarters Inc. FarmLink LLC/MachineryLink Inc. Forster Financial Gilliam County Grain Lab Hudson Crop Insurance KD Investors LLC Koch Agronomic Services Limagrain Cereal Seeds Merrill Lynch Wealth Management Mobility Concepts Inc. Morrow County Grain Growers NorthWest Plan Administrators Inc Northwest Farm Credit Services Pacific Ag/Kralman Steel Pacific Northwest Direct Seed Association Pioneer West Inc. R&H Machine Rainier Seeds Inc. Spokane Ag Expo Spray Center Electronics Inc. SS Equipment Sure Fire Ag Systems Inc. Syngenta The McGregor Company Tina Lee Fisher Troy Insurance University of Idaho-College of Agricultural and Life Sciences USDA-RMA USDA-NASS Washington State Department of Natural Resources Washington State University-CAHNRS Washington Wheat Foundation Western Trailer Sales Co. such as the Market Access Program and Foreign Market Development are vital to agriculture’s success. He explained that these are normally bipartisan programs that gain support easily as long as they don’t get hijacked or used as bait. Increasing the levels of funding for these programs, however, will be difficult in this economic arena. The Chairman is also a supporter of public research, such as programs at WSU, and he anticipates that the three areas in negotiations will be the dairy section, commodity title and nutrition title. OUR CLASSROOM COVERS FIVE STATES Still time to register for convention It’s only a few days away, but there’s still time to register for this year’s Tri-State Grain Growers Convention. By visiting the Washington Grains website at wawg.org/registration, you can register online quickly and efficiently. This year, the convention will be held at The Davenport Hotel in Spokane, Wash. Keynote speakers include John Phipps of the U.S. Farm Report, Mark Gold of Top Third Ag Marketing and the Hefty Brothers of the AgPhD Program. More details about the convention can be found by visiting wawg.org/convention. For the third year in a row, the Washington Association of Wheat Growers, Oregon Wheat Growers League and Idaho Grain Producers Association are joining forces to create one of the largest, grain-specific conventions in the U.S. Each state will hold their annual membership meeting at the convention. Northwest FCS Senior Vice President Paul Nelson with customers at a seminar Northwest Farm Credit Services employees live and breathe agriculture. We’re immersed in the industries we serve and work hard to stay on top of changes. Fact is, though, ag is so dynamic, the education never stops. We closely monitor the latest industry trends and are eager to share our insights, through customer seminars, workshops, and a variety of online tools. Learn about the advantages of working with us at northwestfcs.com/resources. Thanks to the contribution of the Washington Wheat Foundation, WAWG will again be offering the 15x40 program to 15 farmers under the age of 40 who have not attended the annual convention. Find out more about this popular program by visiting wawg.org/washingtons15-x-40-program. WHEAT LIFE NOVEMBER 2013 11 POLICY MATTERS NAWG writes conferees to stress farm bill priorities From NAWG NAWG wrote House and Senate agriculture leaders and farm bill conferees recently to stress wheat growers’ priorities going into the official conference process. The letter urged conferees to maintain a strong federal crop insurance system and explicitly opposed provisions in the Senate-passed bill to link conservation compliance requirements or apply means testing to the insurance program. NAWG supports establishing farm-level protection within Title I and urged committee members to ensure that any reference price does not distort the market or impact planting decisions. The letter offered strong support for the Market Access Program, the Foreign Market Development program, international food aid programs and the web of public agricultural research that supports wheat variety development. NAWG also voiced support for provisions in the House-passed farm bill that would eliminate duplicative regulation of pesticide applications under the Clean Water Act and increase the capacity for on-farm storage qualifying for self-certification and exemption under the Environmental Protection Agency’s Spill Prevention, Control and Countermeasure regulation. The full letter and other communication on farm bill priorities are available at www.wheatworld.org/farmbill. 12 WHEAT LIFE NOVEMBER 2013 NAWG, USW reinforce support for development of biotech wheat The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) reinforced their support for the continued development of biotech wheat by joining others in the industry to congratulate the 2013 World Food Prize recipients whose work has been instrumental to this vital technology. The World Food Prize While biotech wheat is not currently available to farmers, NAWG, USW and the wheat farmers who lead them support innovation, research and the responsible introduction of new wheat varieties, including biotech wheat. Both organizations are working with industry partners throughout the wheat value chain to prepare the path for these new varieties of wheat—both biotech and nonbiotech—that will improve farmers’ ability to increase yields, use fewer agricultural inputs and continually improve the quality of their crop. Wheat is a staple of the world’s diet, but worldwide demand for wheat is outpacing our ability to produce it. In fact, the number of acres planted with wheat has fallen relative to other crops with biotech options available in part because the more advanced crops offer farmers a better return on their investment. Biotech wheat varieties, which the industry expects to be introduced within the next decade, will help ensure that wheat continues to be a valuable source of nutrition for people around the world and a staple of American agriculture for generations to come. In October, Dr. Marc Van Montagu, Dr. Mary-Dell Dr. Robert T. Fraley Dr. Mary-Dell Chilton Dr. Marc Van Montagu Chilton and Dr. Robert T. Fraley were awarded the World Food Prize for their roles in founding, developing and applying agricultural biotechnology. Thanks to the discoveries of these laureates, farmers around the world are able to grow crops with higher yields and a more sustainable environmental profile than was ever possible before. More about the wheat industry’s biotech policies is available at www.wheatworld.org/biotech. GET TOUGH WITH BROADRANGE 55 ® • ONLY 5-POUND AMINE • 25% MORE ACTIVE INGREDIENT • LOWER USE RATES, LESS HANDLING AND STORAGE • EFFECTIVE ON HARD-TOKILL PERENNIALS BROADRANGE® 55 is the only 5-pound Amine with MOISTURE LOCK® TECHNOLOGY allowing your spray to keep the leaf wetter longer, reducing burning and crystallization. MOISTURE LOCK TECHNOLOGY allows BROADRANGE 55 to penetrate deep down into the root system, increasing uptake and efficacy. For more information on BROADRANGE 55 or the MOISTURE LOCK TECHNOLOGY, contact your Wilbur-Ellis representative. ag.wilburellis.com For information only. Not a label. Prior to use, always read and follow the product label directions. WILBUR-ELLIS Logo, Ideas to Grow With, BROADRANGE and MOISTURE LOCK are registered trademarks, and Actives logo is a trademark of Wilbur-Ellis Company. K-1013-097 WL POLICY MATTERS exported overseas, and while Sudan and Iran do not represent large markets for U.S. wheat, they have purchased a combined 2.6 million metric tons of U.S. wheat, valued at about $736 million, over the past 10 years. The full comments can be read at www.wheatworld.org/trade. Gensler stepping down as CFTC chairman by year’s end Photo courtesy of the U.S. Army Corps of Engineers Lower Monumental Dam on the Snake River House passes water resources act by 417-to-3 vote The House of Representatives approved the Water Resources Reform and Development Act (WRRDA) recently on a blockbuster 417-to-3 vote, sending the bill to conference with the Senate. The House version of WRRDA would spend about $8 billion on waterways development projects such as deepening waterways and lock and dam repair and upgrades. The bill also contains provisions intended to speed up the project review process, which should improve the efficiency of shipping goods like wheat. There’s no word yet on when a conference process could start, though it’s expected to be somewhat bumpy due to differing provisions and spending priorities. The Senate passed its version of the bill, worth about $12 billion, on May 15. More information on WRRDA is at transportation.house.gov/WRRDA. Comments submitted on export procedures NAWG and U.S. Wheat Associates submitted joint comments recently regarding the effectiveness of the Office of Foreign Assets Control’s (OFAC) licensing procedures for the exportation of agricultural products to Sudan and Iran. The comments offered general support for the current OFAC procedures that allow some customers in sanctioned countries to keep receiving food. They also emphasized that U.S. wheat producers believe food should not be used as a weapon and that any new sanctions must not hinder the export of humanitarian goods and agricultural exports. Roughly half of the wheat produced in the U.S. is 14 WHEAT LIFE NOVEMBER 2013 Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler plans to step down and leave the agency by the end of the year, according to news reports. Gensler, who has been chairman for the past five years, has often been criticized for the CFTC’s handling of high-profile issues during his tenure, including the collapse of the commodity brokerage firm MF Global in 2011. Gensler played an intimate role in crafting the Dodd-Frank legislation in 2010 that was designed to prevent future market collapse by making the derivative market more transparent. There is no word yet on Gensler’s likely replacement, but several people, including current Commissioner Mark Wetjen, are rumored to be considered possible successors. Senators sign letter opposing direct payments in farm bill Twenty senators wrote Majority Leader Harry Reid (D-Nev.) and Republican Leader Mitch McConnell (R-Ky.) recently demanding that any farm bill extension brought to the floor eliminate direct payments. In the letter, they emphasized this standard applied regardless of support for the farm bill as a whole, saying, “Without regard to whether we supported the Senate farm bill or opposed it, we all agree that Congress should not consider another extension of the 2008 Farm Bill that continues direct payments.” Both the House and Senate approved bills earlier this year that eliminated direct payments, and agriculture groups across the board have accepted that reality. Both bills replace the long-standing program with new and more politically palatable safety net options. However, with the 2008 Farm Bill now expired for the second time, the chance of an extension of existing farm programs yet again is somewhat greater. NAWG strongly supports completion of a new, compromise farm bill as soon as possible Meridian Manufacturing Inc. is all about solving industry issues with technology and a commitment to the highest quality. We’ve spent decades manufacturing industry-leading storage solutions that set the standard in product excellence. Our products are designed to make your job easier and safer, while saving you time and allowing you to capture valuable market opportunities. VISIT OUR DEALER LOCATOR AT WWW.MERIDIANMFG.COM © 2013 Meridian Manufacturing Inc. Registered Trademarks Used Under License. WL POLICY MATTERS and will continue to work toward that goal as the situation in Washington develops. Bladderpod: no, it’s not According to the commissioners of Franklin County, genetic testing of the so-called White Bluffs Bladderpod has proven the plant is not a separate subspecies requiring protection under the Endangered Species Act. The DNA test results were announced this summer by the Franklin County Natural Resources Advisory Committee. The U.S. Fish and Wildlife Service (USFWS), part of the Department of Interior, claims the plant is a unique and threatened variety of the Bladderpod plant family. The agency is pushing to declare critical habitat status for hundreds of acres of public and private land in western Franklin County. Franklin County officials have been working with county residents to challenge the USFWS claims. Efforts to list the plant have been slowed by county pressure to extend the public comment period. “It is inexcusable that U.S. Fish and Wildlife would budget more than $600,000 to protect this allegedly unique plant, without bothering to spend $5,000 to conduct even basic DNA testing up front. It certainly suggests they are more interested in appeasing litigious environmental groups than applying the best available science as required under federal law,” said Brad Peck, Franklin County commissioner. Certified Agronomist Stuart Turner of West Richland, Wash., reported the DNA results, citing data that show 100 percent certainty that the alleged White Bluffs Bladderpod is the same species as other well known Bladderpods in other geographic areas. “Our samples were collected under a federal permit, and the tests were conducted by the Laboratory for Evolutionary, Ecological and Conservation Genetics at the University of Idaho,” said Turner. “This represents best available science as required under the law. We will insist that USFWS consider these test results in any analysis they undertake. If they do that— and the law requires them to do so—this issue is over.” 16 WHEAT LIFE NOVEMBER 2013 Ag Expo 2014 photo contest Shutterbugs of all ages, get those cameras out and snap those winning photos to enter in the 2014 Spokane Ag Expo photography contest. Spokane Ag Expo, celebrating its 37th year, will again feature the popular photography contest celebrating agriculture at their 2014 show. Photographers are asked to submit photos depicting “Agriculture in the Inland Northwest” by Nov. 29, 2013, to the Spokane Ag Expo office at 801 W. Riverside, Ste. 100, Spokane, Wash., 99201. All of the photographs entered will be displayed at Spokane Ag Expo 2014, which will be held in the Spokane Convention Center Complex in the exhibit halls. The dates of the 2014 show are Feb. 4-6. The winning entries will receive cash prizes and ribbons for first, second and third place in both the adult and youth divisions. Ribbons will also be awarded for honorable mention and manager’s choice. Everyone that enters will receive two free tickets to Spokane Ag Expo that are good for all three days of the show. Contestants are asked to submit either color or black and white prints (minimum size of 8 by 10 inches and maximum size of 11 by 14 inches). Photos need to be mounted on cardboard or matted (not framed) with their entry form attached to the back. Photos also must be submitted in “high quality” on a disc clearly marked with the photographer’s name and contact information. No more than four photos can be entered by a contestant. Winners in each category will be judged by area photographers based on theme, composition and creativity. Contest rules and entry forms can be found at agshow.org. 9880600-ROP-K1807-SpectrumMfg - Page 1 - Composite You need a tangible plan for today and tomorrow TRUCK SCALES • LIVESTOCK SCALES WAREHOUSE SCALES • RENTAL SCALES MOBILE LIVESTOCK RENTALS AVAILABLE AT: No matter where you’re starting from, we will provide a tangilble plan to help you protect what you have today and build for the future. 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Desmet Ave. PO Box 11335 Spokane, WA 99211 (509) 535-4295 www.scalesnw.com [email protected] • Steve Orr (503) 510-3540 SCALE SERVICE • SYSTEMS • PARTS SALES AND CONSTRUCTION 0311-540HO WHEAT LIFE NOVEMBER 2013 17 WL FEATURE To keep it from blowing By Kara Rowe WAWG Director of Affairs and Outreach Eric Maier is conducting the experiment of his life. The past WAWG president and state legislation committee chairman is experimenting with a 1,000-acre field between Lind and Kahlotus. This region isn’t just dry, it’s the driest of the dryland in Washington’s wheat county with an annual rainfall of about 10 inches. crop, while neighbors are getting closer to 50 to 55 bushels. “If I can keep this sandy soil from blowing away and make a profit for myself and my landlord, then this will be a win-win,” Maier said. “What I’m trying to do here, on this piece of ground, may not work for my neighbors. It isn’t going to work for everyone. If we hadn’t gotten those late summer rains, this might have been a train wreck, but right now, the stand looks good.” In May, Maier sprayed the field with RoundUp to kill The field had been in the Conservation Reserve Program the grasses and other plants competing for moisture. (CRP) for more than a decade, and the land owner wanted Maier needed to conserve every drop of moisture for the Maier to return it to production. From a historical and wheat crop. Maier sprayed again in August. The rains in ecological perspective, the field was once a lake bottom, late summer were imporand the soil is sandy. Maier tant for a successful seeding reached out to the Palouseand stand. Through use Rock Lake Conservation of SCD’s drill, Maier was District (PRLCD) and the able to put the seed in the Spokane Conservation ground at a depth that was District (SCD) for help. To well into the moisture, and transition this field into the drill packed the ground production in a conventight above it so that there tional manner, Maier would was very little moisture have had to make at least loss. four tillage passes. This CRP land is still very fragile even “I’m a conventional after 10-plus years sitting farmer. This may not work in a natural, undisturbed on other pieces of my land. The soil of this 1,000-acre field near Kahlotus farmed by Eric Maier is extremely state. Any type of tillage Depending on how this sandy. The late summer rains were a critical component of making a good implement would have stand this fall. experiment goes, I may look turned this environmentally at alternative conservation sensitive ground to powder almost immediately. Instead, practices more seriously,” Maier said. Maier used the Cross Slot drill owned by the SCD to And it’s not just Maier who is waiting to see how this plant the land through a direct-seed method. The ground experiment turns out. This fall, WAWG leadership and endured only one pass with an implement. staff had the opportunity to give the Washington State Maier used incentives, including CRP takeout and Department of Ecology’s (Ecology) new director, Maia direct-seeding cost share funding through the PRLCD, to Bellon, and Eastern Regional Director Grant Pfeifer a help balance some of the initial costs and risk. Maier also quick tour which included a stop at Maier’s field. enrolled the field into the Natural Resource Conservation With incentive-based programs constantly under attack Service’s EQIP program. from nonfarm groups, WAWG leaders featured the risks In this area, Maier is hoping for a 40-bushel per acre some farmers are taking with progressive conservation 18 WHEAT LIFE NOVEMBER 2013 FEATURE (Right) Members of the Washington Department of Ecology (Ecology) saw incentive-based programs in action when they visited the CRP field Eric Maier is bringing back into production. From left are Dan Harwood, PalouseRock Lake Conservation District; Jim Jesernig, WAWG lobbyist; Grant Pfeifer, Ecology’s eastern regional director; Maia Bellon, director of Ecology; Nicole Berg, WAWG vice president; Eric Maier, WAWG past president; and Ty Meyer, Spokane Conservation District. (Below) Wheat stand on Maier’s former CRP land. Photo by Ty Meyer WL WL FEATURE sive technologies and methods. We simply have to do a better job explaining this to our regulators so there are no surprises or mandates in the future.” WAWG leaders and staff helped Bellon connect the dots between the key factors necessary for many farmers to consider minimal or notill practices in the driest dryland region of Eastern Washington: a cooperative landlord-tenant relationship, incentive-based programs and moisture. photo by 8 Iron images Maier seeding his 1,000-acre field with the Spokane Conservation District’s Cross Slot drill. tillage practices. Without incentive-based programs, such as federal 319 monies that Ecology distributes through local conservation districts, most farmers would not bother with certain conservation practices in these low rainfall zones. The purpose of featuring this field to Director Bellon was to prove that farmers are willing to use incentive-based programs and reduced-tillage practices as long as the profits are viable. “There are people and groups in this state who don’t believe incentive-based programs are helping keep our water and air clean,” said Maier. “That just isn’t true. These programs help farmers take the initial steps into conservation practices, and they are keeping our water and air clean. We, meaning WAWG, simply have to do a better job explaining this to our regulators.” This tour did not happen by accident. Recently, through the LeMire vs. Ecology Supreme Court case, precedent was set regarding Ecology’s jurisdiction over nonpoint source pollution (agriculture). Ecology does not have to prove that farmers and ranchers are polluting. Instead, Ecology has the power to give citations based on farmers and ranchers only having a substantial potential to pollute. Through WAWG’s natural resource committee and board, leadership and staff have been directed to immediately and proactively work with Ecology to help them fully understand the different tillage practices used throughout wheat country and why. WAWG would also like to help regulators define the term “substantial potential to pollute.” WAWG’s vice president, Nicole Berg, was also on the tour, and she would like to see a farmer-based agriculture advisory group formed to work with Ecology and the Department of Agriculture on water and air quality issues. “There are two options our farmers have when it comes to water and air quality,” said Berg. “A carrot or a stick. We would prefer carrots through incentivebased programs rather than sticks through citations and fines. We are doing the best we can to keep our soil out of the water and air. Many are using progres20 WHEAT LIFE NOVEMBER 2013 “WAWG is not promoting this project as the silver bullet to solving water and air quality issues,” said Berg. “But we wanted to show the director that incentive-based programs do work...even in the low rainfall zones. She and Grant were extremely interested and genuinely willing to work with wheat on many different matters.” Like Maier’s experiment, WAWG’s effort to build a stronger relationship with Ecology is an honest attempt at improvement. “We need to start telling Ecology about the progress we are trying to make in wheat country,” said Berg. “There are still a lot of issues and areas that need other solutions than what we featured in these three hours. Our job as leaders is to passionately protect each and every farmer we can from over-regulation. The first step to doing that is educating Ecology and understanding their perspective and pressures as well. The director was genuinely engaged with us, and I think we’re again building on our traditionally good relationship with the agency. A decade ago, we worked on saving the ag burning tool. Now it’s water quality. Ecology is going to be a part of our lives for a long time, and today we showed that we are willing to work together as we have in the past. Today was a good day.” YOUR AGRI-BUSINESS NEEDS ARE UNIQUE Washington Trust has been building relationships with farmers and ranchers in Washington and Idaho for generations. We have loan options for all your Agri-business needs, and our experienced loan officers work hard to create customized financing solutions specific to your needs. Stop by your local Washington Trust branch to learn more or visit watrust.com. 800.788.4578 WHEAT LIFE NOVEMBER 2013 21 WL FEATURE Leading by example Conservation districts advocate for voluntary, incentive-based programs By Trista Crossley For more than a year, Dan Harwood, district coordinator from the PalouseRock Lake Conservation District (PRLCD), and Ty Meyer, production ag manager from the Spokane Conservation District (SCD), worked with Eric Maier to transition CRP land back into production, and they couldn’t be more pleased with the result. Both men were on hand as members of Washington State Department of Ecology (Ecology) visited the field. “I think we presented a very good argument that showed that voluntary conservation programs do work,” Harwood said. “We couldn’t have asked Mother Nature to act any better, because we had a wind storm a few days earlier, and Eric’s field showed no signs of erosion.” “It was a good opportunity to expose Ecology to some of the new practices being done in the area right now,” Meyer agreed. “I think any time we can take people into the field and show them, it is important.” Dan Harwood, district coordinator, PalouseRock Lake Conservation District As pressure mounts on both producers and regulatory agencies, such as Ecology, to protect the state’s air and water, voluntary, incentive-based programs have come under scrutiny. Both Harwood and Meyer agreed that proactive, incentive-based programs are more effective than a regulatory approach. “Incentive-based programs give people the opportunity to make changes as they can and as it works for their operation,” Meyer said. “It is hard to make changes when they are being forced to do it.” Because Ecology is often viewed with skepticism by producers, Meyer credited Maier for having the willingness to bring members of that department out to his field. “It doesn’t have to be an adversarial relationship,” Meyer explained. “Ecology is charged with taking care (of the water and air), but they have a proactive approach to changing things if people are willing to work with them.” Even though the word is spreading through Eastern Washington about conservation programs and aid that is available to farmers, there is always room for more education. Both conservation districts have low-interest loan programs, mentoring programs, direct-seeding programs, cost-share programs and can help with CRP takeout. In addition, the SCD has a cross slot, no-till drill that they use to help demonstrate no-till methods. Harwood said that with changes in technology and experience, direct-seed practices are becoming more common across a wider variety of growing conditions. Ty Meyer, production ag manager, Spokane Conservation District “It’s been fairly well proven that rainfall is not a determining factor on whether you can direct seed or not,” he said. “Some people will say you can’t do it, but there are growers in 8- to 9-inch rainfall areas that are making it work.” Looking back at how Maier was successful in seeding the former CRP land, Harwood said that he (Maier) knew that if he had tilled the land four to six times to get it ready for sowing a crop, the ground would have been extremely susceptible to wind and water erosion. “By direct seeding it,” Harwood explained, “he had a ready seed bed that he didn’t have to disturb in order to grow a crop.” Maier took advantage of the SCD’s cross slot, no-till drill and was able to seed 22 WHEAT LIFE NOVEMBER 2013 the field in a single pass. Meyer pointed out that there is a large amount of grass still standing in the field that would protect it from erosion. “It’s going to take a lot to do any damage out there,” he said. Meyer and Harwood both agreed that with more CRP land coming back into production, many producers in Eastern Washington are facing similar situations—what is the best way to get a crop in the ground with the least amount of water or soil disturbance? “We are still learning out there,” Meyer said, referring to the dryer areas of the region. “The most valuable resource in that kind of country is moisture, and with the equipment that we have, it is a single pass, lowdisturbance system that closes the ground up right behind the drill. It gives people one of the best opportunities they have to get a crop in the ground and keep all the moisture they’ve gathered.” “We are all going for the same thing,” Harwood said. “A profitable, sustainable future.” For more information on the SCD, visit sccd.org/index.html. The PRLCD’s website is at prlcd.org/index.html. For a list of conservation districts in Washington state, go to scc.wa.gov/contacts/ conservation-districts/. Rock Steel Structures, Inc. Offering quality you can depend on: Grain Storage For Farms or Warehouses Farm Storage ! Hopper Bottom Bins Grain Handling • Grain Bin Accessories Grain Bin Accessories Water Storage Tanks ! Aeration Systems Handling Equipment www.SCAFCO.com Shops • Warehouses • Equipment Storage Steel Buildings • Steel Stud Pole Buildings Water Storage Tanks • Aeration Systems Dealer Info Hopper Bottom Bins • Catwalks, Ladders and Towers Contact Scott Rock [email protected] 509-764-9700 Moses Lake, Wash. WHEAT LIFE NOVEMBER 2013 23 WL FEATURE Going to court Lawsuit filed over state’s fish consumption rate and water quality standards From the Columbia Basin Bulletin A coalition of clean water advocates and commercial fishing industry groups filed a legal challenge on Oct. 11 to what they say are U.S. Environmental Protection Agency (EPA) water pollution rules in Washington that are inadequate to protect public health. The lawsuit seeks an end to what the coalition says are years of agency delay in the face of robust evidence of health risk. The complaint was filed with the U.S. District Court for the Western District of Washington at Seattle. Earthjustice attorneys Janette Brimmer and Matt Baca are representing the members of Waterkeepers Washington in the lawsuit. Waterkeepers Washington is a coalition of licensed Waterkeeper organizations in the state of Washington including Spokane Riverkeeper, Columbia Riverkeeper, Puget Soundkeeper Alliance and North Sound Baykeeper. Also involved in the coalition are the Pacific Coast Federation of Fishermen’s Associations and the Institute for Fisheries Resources. According to coalition members, the EPA is violating federal law by continuing to allow Washington’s Department of Ecology (Ecology) to grossly underestimate the state’s fish consumption rate used to set water quality standards necessary to protect human health. Consequently, water pollution limits fail to protect people who eat fish, the lawsuit says. People who consume the most fish—for example members of native Washington tribes, sport and commercial fishermen and members of some immigrant communities such as Asian and Pacific-Islander—face greater risk due to Washington’s inadequate standards, according to the coalition. “EPA’s inaction continues to allow polluters to discharge mercury, PCBs, lead and other toxins at levels that contaminate fish, pollute our waters and threaten public health,” said Brimmer. “We have a water pollution problem that needs to be fixed now, and it is EPA’s responsibility under the law to act when states fail to do so.” Everyone, including the EPA and the state, agrees Washington’s fish consumption rate and human health standards need amendment. In September 2012, Ecology began formal rulemaking to adopt new human health criteria in the Water Quality Standards for Surface Waters of the State of Washington. The state’s water quality standards guide how the state regulates water pollution. Human health criteria are standards set on toxic substances to protect people who consume water, fish and shellfish from Washington’s water bodies. They include substances such as metals, pesticides and other organic compounds. Washington’s water quality standards now lack human health criteria and have instead relied on criteria established in the federal 1992 National Toxics Rule that is mandated by the EPA. “These federal criteria are out of date, and EPA is requesting that states use new science and information to adopt updated human health criteria into their own state water quality standards,” according to Ecology. The state is now in the midst of a “very extensive public process” to amend its water quality rules, said Ecology’s Sandy Howard. A draft update of the water quality rules, including fish consumption standards, is scheduled for release early in 2014, she said. The goal is a new set of rules that both protect human health and allow for necessary economic activity. “There’s a lot of public process ahead,” Howard said. “We think we’re moving ahead in a smart way.” In the Oct. 11 complaint, the coalition of fishing and conservation groups say there is an urgency. “The problem is that the process has been going on for years,” said Baca. “Levels of toxins in, as an example, the Columbia River, are worrisome. The state of Oregon early this month issued a warning against eating resident fish 24 WHEAT LIFE NOVEMBER 2013 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 YOU GET “We all say, ‘Why did we wait so long?’” – Joan J. Touchmark resident since 2012 WONDER{FULL} “I really, really researched retirement options. I almost overdid it, but I’m glad I did. When I got here, I thought, ‘Ahhhh, this is home.’ I couldn’t be happier. I’m really glad I made the choice. I really feel at home here.” OVER WITH OUR ESOURCES & YOU ARE GUARANTEED AY BACK!! LOWER THAN LAST YEAR’S PRICES !! WE DELIVER! Discover for yourself why more people say, “I wish I had moved here sooner!” Learn more about the {FULL} Life at Touchmark. 509-255-7167 TouchmarkSpokane.com/event 2013 CRP & SAFE SEED MIXES READY TO GO Call: 509 297-4500 FAX : 509 297-4505 EMAIL: [email protected] TOUCHMARK ON SOUTH HILL Full-service Retirement Community 2929 S Waterford Drive • Spokane, WA 99203 509-536-2929 • Touchmark.com 138043 © Aug. 2013 Touchmark Living Centers, Inc., all rights reserved Or Call Todd’s Cell : 509 531-1702 WAREHOUSES IN MESA & ODESSA WHEAT LIFE NOVEMBER 2013 25 WL FEATURE such as bass that are caught in the proximity of the Columbia’s Bonneville Dam. Fish tested there have shown high levels of PCBs.” Exaggerating the problem is the fact that Washingtonians, on average, eat more fish than the residents of most other states, and the federal consumption rate that has long prevailed at the health standard is now “tied for the lowest in the country,” Baca said. Oregon, on the other hand, boosted its consumption standard to make it “the nation’s most protective rate,” Baca said. “The current underprotective standard allows too much toxic water pollution. This hurts the livelihoods of fishdependent families, communities and industries. A fish consumption standard that reflects reality not only makes good sense but would better protect fishing jobs and public health.” —Glen Spain, Northwest regional director of the Pacific Coast Federation of Fishermen’s Associations “The current underprotective standard allows too much toxic water pollution,” said Glen Spain, Northwest regional director of the Pacific Coast Federation of Fishermen’s Associations. “This hurts the livelihoods of fish-dependent families, communities and industries. A fish consumption standard that reflects reality not only makes good sense, but would better protect fishing jobs and public health.” During the summer, Waterkeepers Washington, along with the Pacific Coast Federation of Fishermen’s Associations and the Institute for Fisheries Resources, put the EPA on notice it could be sued under the federal Clean Water Act for failing to protect Washingtonians from toxic pollution entering Puget Sound, the Columbia River, the Spokane River and other waterways. “Parents should be able to feed their families fish without fear of toxic exposure,” said Brett VandenHeuvel, executive director of Columbia Riverkeeper. “Health experts are clear that the people most susceptible to health effects from toxics in fish are babies, children and pregnant women. Despite the compelling evidence on the harm from toxics in fish, Washington state and the EPA have sat on their hands for far too long. We’ve had enough.” For years, the state agency has used a fish consumption of 6.5 grams (less than a quarter ounce) of fish or shellfish a day—a morsel that would fit on a snack cracker—a rate the fishing and conservation groups say is universally recognized as inadequate. Such a standard says that eating that much locally caught fish, or less, does not present a health risk. The monthly estimate is slightly less than eight ounces, which amounts to a modest serving of fillet. “The one-fillet-a-month estimate is ludicrous,” said Chris Wilke, executive director of Puget Soundkeeper Alliance. “A large number of local sport fishers, Native Americans, Asian Americans and others eat fish each week, if not each day. Fish and seafood play a significant dietary role for many Washingtonians, not to mention the cultural importance of local seafood for many of us. The current fish consumption rate set by the state does not reflect this and fails to protect fishing as a designated use of our waters.” The EPA has long advised states that they should not rely on that old, inaccurate estimate. Instead, states must set fish consumption standards using the best available data including surveys of actual consumption in local populations. “It is long past time for EPA and Washington Ecology to actually do what federal law has long required—step up to the plate and adopt a fish consumption rate that is based upon what people in Washington actually eat and that will improve water quality and protect public health,” said Wendy Steffensen of North Sound Baykeeper. “Each year EPA fails to fix Washington’s inadequate water pollution rules, it guarantees that dangerous levels of toxic contaminants will continue to flow into our waterways,” said Bart Mihailovich of Spokane Riverkeeper. “This inaction endangers our citizens. It endangers wildlife. It threatens our economy. It’s hard to believe there is delay in the face of this kind of evidence.” Reprinted with permission. This story originally appeared on the Columbia Basin Bulletin website, cbbulletin.com, on Oct. 18. 26 WHEAT LIFE NOVEMBER 2013 DO HAVE DOYOU YOU HAVE FARMLAND FOR SALE? FARMLAND FOR SALE? Your neighbors aren’t the ONLY ones who want to buy it. Kincaid Real Estate has qualified Kincaid Real Estate has QUALIFIED buyers buyers ready to on make offer on ready to make an offer your an property. your property. Let our knowledge of the market add value for you! Let OUR knowledge of the Now booking market add value Spring & for YOU! Fall 2012 Locally Owned and auctions. CallOperated early for C.D. “Butch” Booker best dates. Real Estate Broker/Auctioneer · REAL ESTATE · Livestock · LIVESTOCK · Equipment · EQUIPMENT · 809 N. 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For the full report go to ers.usda.gov/publications/eib-economic-information-bulletin/ eib116.aspx# By Gary Vocke and Mir Ali ERS Agricultural Economists Wheat, produced in nearly every part of the U.S., is the third largest U.S. crop in terms of both value and acreage, behind corn and soybeans. Unlike most other crops, however, wheat has distinct varieties that are produced in different regions or over different seasons. The result is a wide variation in the costs of wheat production across growing areas, inherent in the diversity of inputs and production practices. These costs can affect the competitiveness of wheat with other crops in each region and the profitability of planting wheat. This study explores the variation in wheat production costs across U.S. regions, based on data from the 2009 Agricultural Resource Management Survey (ARMS). What did the study find? The wide variation of wheat production costs across the country reflected differences in yields, cropping practices and costs of land, labor and capital assets. Regional climatic differences across the U.S. accounted for much of the variation in the class of wheat grown, each with its own production practices and associated costs. Northern wheat producers, for example, chose spring wheat varieties that were harvested in the fall because winter wheat—planted in the fall for summer harvest—would be killed by the cold during its winter dormancy. Growers in areas with abundant rainfall were able to boost their yield potential by applying high rates of fertilizer. At the other extreme, some regions had areas so dry that costly irrigation was needed to produce a wheat crop. National overview In 2009, the expected national average of combined operating and ownership costs was $4 per bushel of wheat versus an actual average of $4.75. The expected average U.S. yield was 47.7 bushels per acre, while the actual average yield was 40.2 bushels. The 2009 season average price (SAP, estimated annually by the USDA National Agricultural Statistics Service) was $4.87 per bushel. An analysis using expected yields (based on survey responses) and the 2009 SAP finds that 97 percent of U.S. farms would have covered their operating costs if they had met their expected yields and received the SAP of $4.87 per bushel, 77 percent would have covered both operating and ownership costs, and 34 percent would have covered their total costs. Fewer U.S. farmers covered their operating costs when the analysis considers actual or realized yields. If farmers, on average, had received the $4.87 SAP for the bushels they harvested in 2009, 79 percent of them would have covered their operating costs, 53 percent would have covered their operating and ownership costs, and 18 percent would have covered their total costs. 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If paid in full on or before June 15, 2014 FARM TIRES TRACKS • ATV TIRES • BATTERIES Walla Walla 509-529-2423 Cheney 509-235-5700 Spokane Alki 509-534-0564 Quincy 509-787-1551 Milton-Freewater 541-938-5507 Hermiston 541-567-8528 Pendleton 541-276-1571 Colfax 509-397-4678 Grand Coulee 509-633-3090 Ephrata 509-754-2479 WHEAT LIFE NOVEMBER 2013 29 WL FEATURE pected ones, but this may have been especially evident in 2009 because of adverse weather. In particular, an April freeze and severe drought in the Southern Plains region led to the abandonment of many wheat fields and sharply reduced output, resulting in high production costs per bushel for the region. Local statistics such as these are reflected, in turn, in national average yields and costs. Regional comparisons In all five regions analyzed, the average yield of bushels per acre was fewer than expected, and average production costs were higher. The discrepancies and the factors underlying them varied by region. • North Central. Although the region’s actual yield of 59.8 bushels per acre was well above the national average and the highest among the regions, it fell short of the expected 69.2 bushels. North Central had the lowest overall production costs among regions but the highest operating costs, driven by large input expenditures. Farmers in the region applied the most fertilizer, which acted in combination with the region’s generous rainfall to promote high yields. Overall production costs were low because the high yields spread ownership costs over many harvested bushels of wheat. • Southern Plains. This region had the largest discrepancies between expected and actual production costs ($3.80 versus $8.76) and yields per acre (37.5 bushels expected versus 16.3 realized). As noted, the Southern Plains were hit by a double weather disaster in 2009, an April freeze and severe drought, which sharply reduced the wheat harvest. • Central Plains. The actual yield of the Central Plains—43.2 bushels per acre—was close to the expected yield of 47.6 bushels and to the national average, although actual production costs of $4.39 per bushel 30 WHEAT LIFE NOVEMBER 2013 Wheat production costs by region, 20091 Northern Central Southern North All ARMS ItemNorthwest2Plains2Plains2Plains2Central2farms Dollars per planted acre Operating costs Seed 17.98 14.39 10.07 11.6830.1713.99 Fertilizer 50.32 41.73 40.03 29.19104.8943.36 Chemicals 21.15 20.72 8.91 8.02 7.4014.16 Custom operations 10.76 7.75 10.78 10.00 9.78 9.41 Fuel, lube and electricity 21.79 8.87 13.40 13.84 8.63 12.22 Repairs 28.50 18.16 21.46 15.53 13.3619.09 Other variable costs 4.26 0.22 0.13 0.03 0.58 0.53 Interest on operating capital 0.22 0.16 0.15 0.13 0.25 0.16 Hired labor 6.97 1.37 1.21 1.96 1.83 1.97 Ownership costs Capital recovery (machinery) 92.69 74.93 77.80 47.60 55.76 70.33 Taxes and insurance 8.14 5.94 5.53 4.45 7.34 5.80 Other costs Opportunity costs of unpaid labor 19.13 13.54 17.01 17.22 16.09 15.87 Opportunity cost of land 83.74 40.49 40.76 33.90 92.22 46.20 General farm overhead 14.47 9.42 10.53 7.84 14.60 10.15 Total operating costs 161.96 113.37 106.15 90.38 176.89 114.89 Total ownership costs 100.83 80.87 83.33 52.06 63.10 76.13 Total operating and ownership costs 262.79 194.24 189.48 142.44 239.99 191.02 Total other costs 117.34 63.46 68.31 58.95 122.91 72.22 Total costs 380.13 257.70 257.79 201.39 362.90 263.24 Bushels per planted acre Actual yield 59.5 43.7 43.2 16.3 59.8 40.2 Expected yield 67.0 45.5 47.6 37.5 69.2 47.7 Dollars per bushel Costs per bushel of actual yield Operating costs 2.72 2.59 2.46 5.56 2.96 2.86 Ownership costs 1.70 1.86 1.93 3.20 1.05 1.89 Operating and ownership costs 4.42 4.45 4.39 8.76 4.01 4.75 Other costs 1.97 1.45 1.58 3.63 2.06 1.80 Total costs 6.39 5.90 5.97 12.39 6.07 6.55 Costs per bushel of expected yield Operating costs 2.42 2.49 2.23 2.41 2.56 2.41 Ownership costs 1.50 1.78 1.75 1.39 0.91 1.59 Operating and ownership costs 3.92 4.27 3.98 3.80 3.47 4.00 Other costs 1.76 1.40 1.43 1.57 1.77 1.51 Total costs 5.68 5.67 5.41 5.37 5.24 5.51 Percent of acres Enterprise production practices Winter wheat 71.3 25.5 99.8 100.0 100.0 69.3 Spring wheat 28.7 74.5 0.2 0.0 0.0 30.7 Harvested 99.4 97.6 97.9 64.0 98.390.8 Irrigated 21.1 1.2 4.5 7.0 0.04.9 Source: USDA, Economic Research Service using data from USDA’s Agricultural Resource Management Survey, 2009 wheat 1 The data are an aggregation of irrigated and nonirrigated fields. 2 Northwest—Washington, Oregon, and Idaho; Northern Plains—Montana, North Dakota, Minnesota, and South Dakota; Central Plains—Kansas, Colorado, and Nebraska; Southern Plains—Oklahoma and Texas; and North Central—Ohio, Michigan, Illinois, and Missouri. exceeded the $3.98 expectation. In 2009, the region’s yield was almost three times higher than in the neighboring Southern Plains because of the freeze and drought in the south. Central Plains wheat yields are higher than Southern Plains yields even in a year of more normal weather because temperatures are not as high on the Central Plains, and the risk of drought is less. Certified to help your operation Come and go as you please We know your farm isn’t quite like anyone else’s. We can create solutions that are equally unique to your operation, to help you turn operational data into information-based insights. As a John Deere FarmSight™ Certified Dealer, we’re offering John Deere FarmSight Services that are customized to address the issues you face in your operation. We have specially trained personnel, with the tools, training and most important — knowledge— to help you make business and agronomic decisions that improve your productivity. Contact Blake Hatch at 509-760-0137 for more information www.eiijd. 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. CROP ROTATION PAYS INCREASE YIELDS :: BREAK DISEASE CYCLES :: REDUCE WEEDS ENJOY DOMESTIC MARKETING OPPORTUNITIES INCLUDING BIOFUELS CANOLA – A PROVEN ALTERNATIVE Canola can replicate benefits that Vertical Tillage does for soil. Roundup Ready :: Clearfield :: New IMI Tolerant Claremore Liberty Link Herbicide Tolerant :: New SU Tolerant Sumner Conventional Varieties :: Falstaff Winter Canola SUNFLOWER :: SAFFLOWER CAMELINA :: TRITICALE PLOW-DOWN MUSTARD Curtis 509-659-1757 Todd 509-641-0436 SPECTRUM CROP DEVELOPMENT :: RITZVILLE WA WHEAT LIFE NOVEMBER 2013 31 WL FEATURE • Northern Plains. The Northern Plains had the highest expected production cost per bushel among the regions. Three-fourths of producers grew lower-yielding spring wheat varieties. The region had relatively high expenses for fertilizer, as well as for herbicides and fungicides. The harvested yield (43.7 bushels) came close to the projected yield (45.5 bushels). • Northwest. Although the Northwest region’s actual yield of 59.5 bushels per acre fell short of its expectations of 67.0 bushels per acre, it was nearly tied with North Central for the highest yield, despite having lower rainfall. The Northwest’s expected yields are high, in part, because it has the most irrigation, covering more than 20 percent of wheat acreage. With its relatively high yields, its actual production costs of $4.42 per bushel were below the national average despite the irrigation expense. About half the crop is soft wheat, which is given only low applications of nitrogen fertilizer to ensure the low protein levels for which it is grown. How was the study conducted? The farm-level data for this report was derived from the USDA’s annual Agricultural Resource Management Survey (ARMS) for 2009. The ARMS, based on a representative sampling of all U.S. farms, provides information on a broad range of issues about agricultural resource use, production practices, farm costs and financial conditions and economic well-being of America’s farm households. The ARMS collects data every four to eight years for each commodity. The authors based their annual production cost estimates on data from the 2009 survey of the U.S. wheat sector. They arranged these estimates from the lowest production costs to the highest to form cumulative distributions. Two 32 WHEAT LIFE NOVEMBER 2013 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 sets of cumulative farm distributions were calculated, one using expected yields and the other using actual yields. To provide some explanation for the discrepancies between expected and realized output and prices, the authors supplemented their regional data analyses with expert knowledge of regional conditions and wheat production practices. NOT Your Average Real Estate Team Find the full report at ers.usda.gov/publications/eib-economic-information-bulletin/eib116.aspx#. ERS is a primary source of economic research and analysis from the U.S. Department of Agriculture, providing timely information on economic and policy issues related to agriculture, food, the environment and rural America. Mark Grant 509-520-1906 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! Blue Mountain Realtors 509-382-2020 View our farm listings at www.bluemountainrealtors.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 POMEROY GRAIN GROWERS RS320 ROCK PICKER 3.2 Cubic yard hopper Superior rock picking performance Serving farmers for over 80 years SRW 1400 ROCK WINDROWER Pomeroy Grain Growers, Inc. Pomeroy Grain Office 877-291-4660 Pomeroy Agronomy 509-843-1394 Farm Commodities-Colfax 800-424-5056 WHEAT LIFE NOVEMBER 2013 33 WL FEATURE Putting it in perspective How much do you know about food and agriculture? What about rural America or conservation? The USDA’s Economic Research Service has more than 75 charts and maps covering key information about the farm and food sectors, including agricultural markets and trade, farm income, food prices and consumption, food security, rural economies and the interaction of agriculture and natural resources. Here’s a sample; to see more charts and maps go to ers.usda.gov/data-products/agand-food-statistics-charting-the-essentials.aspx. What is agriculture’s share of the overall U.S. Economy? Export share of U.S. farm production 2008 to 2010 Food services and drinking places Apparel and leather manufacturing 800 700 Billions of dollars 600 Cotton Rice Wheat Textile mills and textile-product manufacturing Food, beverage and tobacco manufacturing 500 400 300 200 100 0 Tree nuts ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 Soybeans Fresh fruits Processed vegetables Pork Pountry meat Forestry, fishing and related activities Farms Corn 0 25 Percent 50 75 Exports account for a large share of the total volume of U.S. production for select product categories. For example, more than 70 percent of the volume of U.S. production of tree nuts, largely almonds, is exported, as is around 64 percent of cotton production (2008-10 average). Overall, the export share of U.S. agricultural production was 22 percent based on volume and has averaged 20 percent since 2000. Agriculture and agriculture-related industries contributed $742.6 billion to the U.S. gross domestic product (GDP) in 2011, a 4.8-percent share. The output of America’s farms contributed $138.7 billion of this sum—just under 1 percent of GDP. The overall contribution of the agriculture sector to GDP is larger than this because sectors related to agriculture rely on agricultural inputs in order to contribute additional value to the economy. Source: USDA, Economic Research Service calculations based on data from U.S. Department of Commerce, U.S. Census Bureau, Foreign Trade Database and USDA, National Agricultural Statistics Service, various reports Source: USDA, Economic Research Service using data from U.S. Department of Commerce, Bureau of Economic Analysis Exports shares rising for many ag commodities, but declining for corn and wheat (Exports as a share of total disappearance) Corn Export markets have generally become more important for U.S. agricultural commodities over the past 20 years, spurred by growing demand particularly in developing countries. However, U.S. corn exports have fallen as more corn has been used to produce ethanol. U.S. wheat exports also have fallen as competition has increased from countries in the Black Sea region, particularly Russia, Kazakhstan and Ukraine. 1989-91 2009-11 Wheat Soybeans Upland Cotton Beef Pork Broilers 0 34 WHEAT LIFE NOVEMBER 2013 20 40 Percent 60 80 Source: USDA, Economic Research Service, Baseline related historical data FEATURE WL Farms, land in farms and average acres per farm, 1850 to 2012 8 After peaking at 6.8 million farms in 1935, the number of U.S. farms fell sharply until leveling off in the early 1970s. Falling farm numbers during this period reflected growing productivity in agriculture and increased nonfarm employment opportunities. Because the amount of farmland did not decrease as much as the number of farms, the remaining farms have more acreage—on average, about 400 acres in 2012 versus 155 acres in 1935. Roughly 2.2 million farms are currently in operation. Farms (in millions) 6 Average farm size (hundreds of acres) 4 2 Land in farms (billions of acres) 0 1850 ‘70 ‘90 1910 ‘25 ‘35 ‘45 ‘54 ‘64 ‘74 ‘82 ‘92 2002 ‘12 Percent of planted acres under no-till system for selected crops, 2000 to 2010* U.S. agricultural exports tripled from 2000 to 2012 180 140 Soybeans 40 Wheat 30 Sorghum Barley Corn 20 Oats 10 Cotton Rice 2000 2001 Sugar and tropical products Horticultural products Livestock products Cotton, tobacco and seeds Oilseeds and oilseed products 120 Billions of dollars Percent of planted acres 50 0 Source: USDA, Economic Research Service using data from USDA, National Agricultural Statistics Service, Census of Agriculture and “Farms, Land in Farms, and Livestock Operations: 2012 Summary” for 2012 data 100 80 60 40 2002 2003 2004 2005 2006 Survey year 2007 2008 2009 2010 No-till is generally the least intensive form of tillage. Approximately 35 percent of U.S. cropland (88 million acres) planted to eight major crops had no-till operations in 2009, according to estimated tillage trends based on 2000-07 data from USDA’s Agricultural Resource Management Survey (ARMS). Furthermore, the use of no-till increased over time for corn, cotton, soybeans, rice and wheat—the crops for which the ARMS data were sufficient to calculate a trend. *Crop surveyed varies by year Source: USDA, Economic Research Service and USDA, National Agricultural Statistics Service, Agricultural Resources Management Survey, Phase 2, 2000-10 20 0 Grains and feeds 2000 2003 2006 2009 2012 Demand from developing countries, along with higher prices, explains recent U.S. export growth. Foreign demand for wheat, soybeans, cotton, corn and their processed products accounts for about half of U.S. export value. U.S. farm exports to developing countries are now more than double what are exported to developed countries. Purchases by developing countries consistently have been greater than developed countries since 1994. Source: USDA, Economic Research Service using data from U.S. Department of Commerce, U.S. Census Bureau, Foreign Trade Database Employment* in agriculture and related industries, 2008 to 2011 average Farms 17% Eating and drinking places 64% Forestry, fishing and related activities 5% Food, beverage and tobacco manufacturing 11% Textile, apparel and leather manufacturing 3% In 2011, more than 16 million full- and part-time jobs were related to agriculture— about 9.1 percent of total U.S. employment. Direct on-farm employment provided more than 2.6 million of these jobs. Employment in the related industries supported another 13.5 million jobs. Of this number, eating and drinking places accounted for the largest share—10.4 million jobs—and food manufacturing supported 1.5 million jobs. The remaining agriculture-related industries together supported 1.6 million jobs. *Full- and part-time jobs Source: USDA, Economic Research Service using data from U.S. Department of Commerce, Bureau of Economic Analysis WHEAT LIFE NOVEMBER 2013 35 WL PROFILES Hatley/Cobb Farmland Management Inc. Partners help farmland owners manage property for the future By Kevin Gaffney The first indication you have entered “Cougar Country” at the offices of Hatley/Cobb Farmland Management in Spokane is a large, framed, cougar print in the entryway. Known from its founding in 1993 until recently as Sharp & Hatley, the name was changed as of Sept. 1 to indicate Tim Cobb becoming the new co-partner with Allen Hatley. The second original founder, John Sharp, has begun his transition toward retirement. Both original partners were raised on farms. Sharp grew up on a Walla Walla County wheat farm and Hatley on a wheat and pea farm near Pullman. Allen Hatley and John Sharp brought Cobb, who grew up on an irrigated Columbia Basin farm, into the company in the spring of 2011 to begin his training for transition to principal partner. Allen Hatley (left) and Tim Cobb are the principal partners in Hatley/Cobb Farmland Management. The firm specializes in farm-lease agreements, custom farming operations, grain and crop marketing, farm property appraisals, long-term farm planning and other related services. Over the next three years or so, Cobb will ramp up as Sharp winds down. With a portfolio of about 130 farms and more than 100,000 acres of farmland under their management, there is plenty of work to spread around. Hatley equated the process of Cobb becoming a partner to the way a family farm might make a generational transition: over time with proper planning and training. “When I came in for my initial interview, there were two major tests,” explained Cobb. “Did I grow up on a farm, and was I a Washington State University (WSU) grad? Luckily, I passed on both counts, and things went smoothly from then on.” They ascribe the success of their company to their intrinsic perspective of farming as a way of life, not simply as another way to earn a living. “Our people are the key to our company. To effectively do our work, you really need to have been raised in agriculture,” explained Hatley. “When we sit down with a farmer, we only have a few minutes to make the proper impression. “We always begin by asking them about their operation, explaining that we can be most useful if they provide the 36 WHEAT LIFE NOVEMBER 2013 specifics about their farm operation and their future goals for the property. “Generally, once they realize that we understand farming, that we grew up in it and we are there to help them run their farm more efficiently, they relax a bit.” Their clientele are landlords, not farm operators. It is usually farm landowners that are one or two generations removed from the actual operation of the family farm that employ their services. For those not familiar with farmland management, Hatley/Cobb provides specialized services regarding farm lease agreements, absentee owner representation, custom farming operations, farm crop insurance, grain and crop marketing, farm operations accounting, farm property appraisals, farm technology, long-term farm planning, risk management and other related services. “Often, we are hired when there is a problem either between the landlord and the tenant or troubles between the ownership family members,” said Cobb. “Or an owner group may have differing opinions on how to run the farm or whether to sell the property, and they bring us in to help them work things out.” Their relationships with the farm operators are generally positive, and occasionally, a farmer will recommend EASTERN OREGON FARMS Umatilla County, Pendleton, OR 2835.21 acres, rare find winter cattle ranch with 577 acres of wheat ground planted to grass. 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Valley Hermiston Equipment Christmas Valley 1491 Dell Ave. 541-576-3026 541-576-3026 541-567-3001 Walla Walla, WA 99263 (509) 522-9800 www.sseqinc.com LaGrande 541-963-8144 Hines Moses Lake Hines 509-764-8447 541-573-1280 541-573-1280 www.sseqinc.com 1-800-782-7786 www.AgEnterprise.com Also in stock: Degelman Harrows © 2012 CNH America LLC. New Holland is a registered trademark of CNH America LLC. S.S. Equipment 1491 Dell Ave. Walla Walla, WA 99263 WHEAT LIFE NOVEMBER 2013 37 WL PROFILES Hatley/Cobb to a current landlord that they farm for. simply looking to own and not to operate. “An example would be a farmer with multiple landlords,” said Cobb. “If we are already working with several of his owners but one landlord is struggling with management or familial issues, we have had farm operators recommend consulting with us.” Hatley and Cobb identified important decisions that landlords can make to successfully keep farmland in their family. Two very critical factors are effective communication (both among the ownership members and between ownership and the farm operator) and running the farm as a business. The company began more by opportunity than by Proper planning for the farm entity structure and grand design. Hatley had wanted to farm back in the early establishing goals for the farm’s future are also crucial. It 1970s, but the family farm was not big enough. So after he is essential to take strong emotions earned his B.A. and master’s degrees out of the equation to run a farm as from WSU in ag economics, his dad a business, which is often not easy suggested he look for a career off for farm families to do. Hatley/Cobb the farm. Never having faced a job “We love dealing with help their clients accomplish this. interview in his life, Hatley was a bit farmers every day, they nervous. “Since we were all raised on “I didn’t have a suit,” remembered Hatley. “I’m not even sure I had a tie.” His interview went well enough that he was hired as a farm property manager with the Seattle First National Bank trust department. are the best people in the world. And I would say that even if I had not been raised on a wheat farm.” After seven years with Seattle First, Hatley struck out on his own in the farm management and ag appraisal business. One of his associates at Seattle First had been John Sharp, who later left the bank to join up with Hatley to form Sharp & Hatley. When they began the company, most of their business was trust property. Over the years, due to changes in tax law, there are fewer farm trusts. A majority of their business now is private farm property. As a result of requests from clients, Hatley/Cobb also handles farm sales and acquisitions. It developed as a logical extension of their management work when a client would decide to sell their family farm. They began handling farm real estate sales in the late 1990s. All three of the principals are licensed in real estate. Cobb had been working in commercial real estate before joining the firm. One recent change in the real estate portion of their business is being approached more often by nonfarm investors looking to diversify their portfolios with agricultural properties. This type of nonfarm purchase can lead to some hard feelings in farm country, depending upon whom is farming the land and if farming neighbors are interested in purchasing nearby farm properties. However, in most instances, the farm will need to be farmed in a tenant relationship with a local farmer, as the investor is 38 WHEAT LIFE NOVEMBER 2013 —Allen Hatley farms, we feel the same incredible bond that our farm family clients have to their land,” said Hatley. “They are part of the land, and the land is part of them. That is something people outside of farming can never really understand.” Their job is not always enjoyable. Having to notify a tenant farmer that someone else will be taking over the operation of a farm is by far the most difficult part of their work. “It is a terrible, gut-wrenching feeling,” Hatley said. “Thankfully, it is something that rarely happens, but every time I’ve had to do it, I was sick for about a week afterward. That is only something done as a last resort, when there has been a serious problem on the farm for several years.” Hatley/Cobb may charge an hourly fee for a detailed initial consultation with a potential client, but once the landowner signs on, they simply charge a percentage of the crop income for their services. “Most farmland owners really appreciate that setup, as we are sharing the risk right along with them,” noted Cobb. “If they have a bad year due to low yields or grain prices, so do we. We share the risk of farming under the rules of mother nature.” “We only get paid once a year, just like the farmers,” added Hatley, “and it’s after harvest when the farmer knows pretty well where he stands financially going into the next season. “We love dealing with farmers every day, they are the best people in the world. And I would say that even if I had not been raised on a wheat farm.” Find out more about their services at hatleycobb.com. 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Tomorrow’s Science Delivering Today’s Returns www.VLSci.com © 2013 Verdesian Life Sciences, LLC. Take Off® is a trademark of Verdesian. Visit us at www.wheatlife.org MORE INTERACTIVE AG NEWS WHEAT LIFE NOVEMBER 2013 39 Harvest 2013 on Mondovi Farms in Lincoln County. By Tom Zwainz Traveling to Seattle to watch the No. 56 Washington State University (WSU) Cougars get creamed by the No. 5 Stanford Cardinals is not something I would ordinarily do. It’s not just that the game was a few hundred miles further west than I’m used to traveling. You see, I’m a Vandal. Yes, that’s right. I’m an outlier in the Washington wheat farming community, having graduated from the University of Idaho. For a farmer from Reardan, it was exciting being among the state’s movers and shakers. Of course, for those movers and shakers, I’m sure it was just as thrilling to rub shoulders with me and the five other WGC commissioners and staff who attended the events. Actually, there’s something to that. Anyone involved in agriculture knows developing and sustaining relationships are crucial to the survival of our farms. Since there was no way I could personally talk with the 375 people who attended the gala, WSU did the next best thing. A six-minute video the university produced reminded everyone of the beauty of Eastern Washington, its solid infrastructure and the research WSU conducts to make our present possible and assure our future. Go to vimeo.com/75079690 to see what I’m talking about. I don’t consider myself much of a public speaker, but as chairman of the WGC (two more months!), it fell to me to say a few words about the importance of WSU to our industry. I didn’t have to reach very far into the past to find an appropriate example to prove the value of our relationship. I told WSU’s gathered friends and benefactors about The next night was the big game, and WSU had reserved three VIP suites at CenturyLink Field. The game on the field might have been a bummer, but those of us in the skybox couldn’t have been more impressed, watching the university’s other quarterback, Elson Floyd. President since 2007, Floyd is a communicator of the highest order. The man doesn’t just talk, he connects. And it is that connection that brings people together, including a liberal governor and a conservative farmer. The accompanying photo speaks a thousand words. WASHINGTON GRAIN COMMISSION I was invited to the game and WSU’s Foundation Recognition Gala the night before because the Washington Grain Commission was being recognized as one of the university’s $10 million platinum donors. Actually, we’ve given much more than $10 million to WSU since what was then the Washington Wheat Commission was established in 1958, but the foundation doesn’t have a category that’s any higher. the havoc generated by the discovery of biotech wheat on an isolated Oregon farm late last May, and how quickly the university worked on behalf of a threatened partner. Within a few days of the official announcement from the Animal Plant Health Inspection Service (followed quickly by the suspension of sales to Japan and Korea), the university came up with a protocol to test all of its varieties and numbered lines for an occurrence of the GE trait. Nothing was found, and while the industry breathed a sigh of relief, it was nothing compared to the reassurance felt by our overseas customers whose trust in America’s land-grant university system may be even greater than that in our government’s regulators. I don’t want to slight other WSU administrators, but for my money, Floyd is the man who has brought the university back to its land-grant mission roots. Missteps before his arrival means there’s still some catching up to do in that regard, but if Floyd has anything to say about it, catch up they will. It’s hard to say whether a more competitive game would have made for less talking and more cheering. I’m of the opinion had the score been closer and the interest on the field greater, Floyd would have simply changed his game plan. And we would have still left Seattle for our trip back across the Cascades with the impression of a man we can all be grateful to for serving at the helm of our important partner. WHEAT LIFE NOVEMBER 2013 41 Washington farmers who grow the soft white wheat subclass, club wheat, are earning about a 30 cent premium on the crop, in part due to a more than 5 million bushel decline in production from last year. A total of 10.3 million bushels of club was produced compared to 15.4 million bushels in 2012/13. You’d have to go back to 2009/10 when farmers produced 8 million bushels to find a year with less club production. Oregon also produced less club at 593,000 bushels compared to one million bushels last year. Idaho’s club production fell to 804,650 bushels compared to 1.9 million bushels last year. Add it all up, and the three states’ club production was off 6.6 million bushels, a decline of 36 percent from last year. Although Japan is the Northwest’s biggest club customer, 11 other countries have taken club in the last two years. WGC CEO Glen Squires said his analysis shows that even with the lower production, overseas importers should have adequate supplies. In other club news, Squires said he is encouraged by interest from Japan to purchase straight club wheat cargoes. A project supported by the WGC recently saw several mills experiment with trial samples of club wheat on its own, rather than blended at export to form the Western White class. 2013 all-wheat harvest compared to five-year average 150 42 WA ID OR A spring surprise 140.7 144.2 103.7 101.8 59.4 53.9 What with concerns over spring frost, heat at heading 150 and below-average precipitation, you might expect five-year average Eastern Washington’s all-wheat crop to have fallen below 90 2012/13 its five-year average 120 of 140.7 million bushels. Certainly, that’s what the National Agricultural Statistics Service 60 90 (NASS) of the U.S. Department of Agriculture anticipated, forecasting a 132.6 million bushel harvest. The actual 30 60 harvest numbers, however, tell a different story and once again prove the resiliency of wheat. Despite the array 0 30 Washington Idaho Oregon of obstacles flung at the crop, farmers in Washington 5-year average 2012/13 harvested 144.2 million bushels, only about two million 0 Washington Idaho Oregon bushels less than 2012/13. Winter wheat came in with a respectable 69-bushels-an-acre average, while spring wheat had a whopping 60-bushelsan-acre average. That’s only the second time spring wheat has flirted with 60. In 2011, spring wheat came in at 62 bushels an acre. Idaho and Oregon’s yields did not fare as well. Oregon’s harvest came in well below their five-year average of 59.4 million bushels, with drought cutting production there to 53.9 million bushels. Idaho’s all-wheat production of 101.8 million bushels was slightly below its five-year average of 103.7 million bushels. For the record, that extra 12 million bushels of wheat grown in Washington over NASS’s original estimate is worth an estimated $84 million dollars at current prices. 120 Millions of bushels WASHINGTON GRAIN COMMISSION Good year to be in the club WHEAT LIFE NOVEMBER 2013 Seeing red? Not so much After showing significant gains over the last few years, Washington’s production of red wheat fell more than 11 million bushels from 2012/13 to 26.2 million bushels as a result of 19,000 fewer acres planted. That reduction was divided almost evenly between hard red winter and hard red spring. The percentage of red wheat in Washington declined to 18.2 percent of the state’s overall production. Oregon and Idaho mostly maintained their hard red acreage and yields. WGC REVIEW Time to be counted Boom, boom Ten thousand baby boomers (those born between 1946 and 1964) are turning 65 every day for the next 20 years. Rain, rain, go away—for a week, anyway It’s the rare occasion farmers curse the very thing that makes dryland wheat farming possible. Rain at harvest is not wanted nor, in the drier regions of the state, immediately after seeding—at least not until the coleoptile of the deep-planted seed pushes the spindly first leaf through the soil surface. That’s because even as little as a tenth of an inch of rain crusts the soil and can prevent the fragile shoot from penetrating through it. There were reports this year of some farmers having to reseed four times as a result of rains that fell shortly after planting. Bill Schillinger, Washington State University (WSU) research agronomist who directs the Lind Dryland Research Station, said recent research indicates that standardheight plants, like the variety Buchanan, have an overall, four-fold increase in emergence compared to semidwarf plants, like the variety Eltan, following soil crusting. The amount of surface residue also plays a role because of its ability to intercept rain drops. Schillinger believes there are tremendous improvements that can be made in winter wheat seedling emergence if the Rht1 dwarfing gene that is presently in all soft white winter classes is replaced by a different dwarfing gene, something Kulvinder Gill, who holds WSU’s Vogel Chair in wheat breeding and genetics, is trying to accomplish. Not all dwarfing genes impede emergence, and winter wheat breeder Arron Carter and Gill both have numbered lines which show great promise. Schillinger said in a test this past September at Lind, several of these lines had acceptable emergence after a pounding rain that left the soil so hard it “knocked” when tapped. “I’m very encouraged with some of the material that Arron and Kulvinder have in the pipeline,” Schillinger said. WASHINGTON GRAIN COMMISSION Is it a scientist’s duty to stand up to the anti-GMO fervor around the world? Ten of the world’s most esteemed scientists answered yes in an article in Science magazine. The scientists, which include Nobel laureates, former U.S. National Academy of Sciences presidents, National Medal of Science laureates, university presidents and World Food prize winners, used the occasion of vandals destroying a Philippine “Golden Rice” field trial to condemn Greenpeace and other nongovernmental organizations. They see these groups as fanning opposition to a technology which has the potential to protect against a vitamin A deficiency which results in blindness for a half million children each year. The Golden Rice, which has vitamin A added through genetic engineering, has been ready for farmers to use since the early 2000s. It is not available, however, because of escalating requirements for testing. The 10 scientists said anti-GMO fever burns brightly because of well-organized fear mongering that profits some individuals and organizations. “We, and the thousands of other scientists who have signed the statement of protest, stand together in staunch opposition to the violent destruction of required tests on valuable advances such as Golden Rice that have the potential to save millions of impoverished fellow humans from needless suffering and death.” WL Planting the flag(ship) U.S. Wheat Associates’ milling consultant, Andrea Saturno, is racking up the frequent flier miles as he spreads the word throughout Latin America about the benefits of blending soft white wheat into the hard wheat classes. Saturno’s efforts, which grew out of research initiated by the Washington Grain Commission, is aimed at showing bread manufactures how adding up to 40 percent of relatively inexpensive soft white wheat to hard red spring or hard red winter wheat flours allows them to attain similarly sized loaves of bread at a sizable discount to straight red wheat. Recently, Saturno, accompanied by USW technical consultant Marcelo Mitre, visited three mills in Guatemala and one in El Salvador. Tests with local breads using different soft white percentages again proved the versatility of the Northwest’s flagship crop, and excellent results were attained. WHEAT LIFE NOVEMBER 2013 43 WL WGC REVIEW WASHINGTON GRAIN COMMISSION To hell with the future European countries that do not embrace genetic engineering (GE) “will face particular problems with the use of fertilizers, the availability of water and the degradation of soils.” What sounds like a statement from Monsanto is actually from a report by the European Academies Science Advisory Council (EASAC). The report, which received backing from the national science academies of all EU member states plus Norway and Switzerland, as well as the EU’s chief scientific advisor, argues that producing more food sustainably will require crops that make better use of limited resources “which can be achieved through the exploitation of plant genetic resources.” Much to the chagrin of Europe’s environmental community, the report concludes there is “no compelling evidence to associate (GE) crops, now cultivated worldwide for more than 15 years, with risks to the environment or safety hazards for food.” Research which shows otherwise, the report said, “have often been based on contested science.” European consumers, however, remain highly distrustful of GE crops, and it was perhaps this fact that convinced Monsanto to recently withdraw applications that would have permitted planting of six varieties of GE corn and single varieties of GE soybeans and sugar beets within the EU. Monsanto said it no longer intends to pursue GE authorizations in Europe and will instead focus on conventional breeding. A drought-lit fuse Anyone following the news probably thinks the civil war being waged in Syria is the result of ethnic factions battling each other. But Nayan Chanda, editor of the Yale Global Online Magazine, argues the war might have never happened were it not for a devastating drought between 2006 and 2010 which turned almost 60 percent of Syria into a desert and killed off 80 percent of its cattle. The water shortage meant that hundreds of thousands of farmers were forced off their land to find work in cities. It was this dislocation, not the ethnic divisions, Chanda said, that created the first spark. Looking toward the future, he believes internal migrations from countryside to city will happen more around the world as climate shifts occur. For the record, a second shipment of 22,000 tons of U.S. wheat was recently donated to Syria. The donation, enough to help feed 3.5 million Syrians for a month, is part of a World Food Program (WFP) project. The grain, which is being ground into flour in Beirut and Turkey, will go to the urban bakeries that are still functioning and, in rural areas, directly to families. The WFP needs $30 million every week to meet the needs of people affected by the Syrian conflict. On the farm, on the road The American public is getting in on a secret farmers have known for decades: diesels rock. Several new types of diesel sedans are coming to America, including a Mazda 6 with a 2.2 liter turbo charged diesel. These new cars differ from earlier versions in many respects, particularly their low compression ratio of 14:1 rather than 16:1 or higher (a new John Deer 9 liter interim Tier 3 diesel engine has a 16.3:1 ratio). The lower ratio in the new automotive diesels makes for less mechanical stress on the engine which means lighter aluminum castings can be used. And lighter parts means less friction. These and other improvements in engine efficiencies make up for any loss of power caused by reducing the compression ratio. The black soot that is associated with diesels has been taken care of by adjusting fuel timing injection, but the cars, just like many models of newer generation tractors, must also inject a solution of urea into the exhaust to mop up nitrogen oxides. Grandpa, it’s my turn to play! Grandparents who look askance at their grandchildren playing video games might want to take a page from the whippersnappers’ book. Turns out playing video games can improve cognition (thinking) and working memory. In a time when Alzheimer’s and dementia is on the minds of anyone over 60, the research found oldsters could, in a relatively short time period, improve their thinking skills fairly dramatically simply by playing a game. 44 WHEAT LIFE NOVEMBER 2013 WGC REVIEW Save money, live better, less fertilizer? There was a time the Natural Resources Conservation Service mandated sustainable farming practices. Nowadays, it’s Walmart. The company, which currently has a Sustainability Index across 200 product categories linked to more than 1,000 suppliers, is expected to expand to 300 products from as many as 5,000 suppliers by the end of the year. And it is going overseas, rolling out its sustainability index in Chile and Mexico in 2014. Suppliers of wheat are expected to increase fertilizer optimization as part of the plan. The company said it and its suppliers have the potential to reduce fertilizer use on 14 million acres of farmland in the U.S. by 2020. The Washington Potato Commission, which is engaged with the Washington Association of Wheat Growers in a public relations campaign, hasn’t signed on to the national effort to brand potatoes as the star of gluten-free global cuisine. The United States Potato Board, however, has jumped on the gluten-free bandwagon with advertisements that promote spuds as naturally gluten-free and packed with nutritional benefits needed for a healthy lifestyle. Seed-centric no more Monsanto is branching out. The world’s largest seed company purchased Precision Planting Inc. for $250 million earlier this year. The Illinois outfit develops software tools to help farmers improve seed spacing and depth using a national database of soil conditions. Now, Monsanto has agreed to buy Climate Corp. for about $930 million. Both purchases are designed to help farmers boost productivity and manage risk. Climate Corp., which was developed by a team that left Google in 2006, offers farmers individualized weather statistics. “We believe that data science has tremendous potential to boost productivity, said Monsanto’s executive vice president of Global Strategy. The decline of civilization The baguette, often considered one of the symbols of French culture, has fallen on hard times. These days, the average Frenchman eats only half a baguette a day compared with almost a whole baguette in 1970 and more than three in 1900. A slogan has been launched, modeled on the American “Got Milk?” advertisement, to remind the French to pick up their bread. The campaign’s website explains that France is a “civilization of bread” and that the food is part of the traditional meal “a la francaise.” Even with the decline in consumption, it’s estimated that more than 10 billion baguettes are sold every year in France. Middle of the pack The first great surge of the middle class occurred in the 19th century and was brought about by the Industrial Revolution. The second occurred in the years following World War II. These two proliferations occurred primarily in the U.S. and Europe, but a third great surge—what many believe will be the biggest and broadest—has been ongoing in China for a decade and is now spreading through Asia, Latin America and even Africa. This should come as good news to wheat farmers who could be poised to take advantage of consumers with more disposable income. In Indonesia, which is close to displacing Brazil as the No. 2 wheat importer in the world (and may surpass Egypt as the world’s largest importer within five years), inflation is driving a switch out of rice and into noodles made of wheat. Also underpinning the growing appetite for wheat is middle-class demand for Western fast foods like McDonalds, Dunkin’ Donuts and Pizza Hut. Based on proximity, Australia is in the catbird seat, currently controlling about 65 percent of the market. The remainder is supplied from the U.S. and Canada. Even so, soft white wheat marketing efforts are paying off in Indonesia with more than 189,000 metric tons in the export column so far this year. WASHINGTON GRAIN COMMISSION Mr. Potato goes gluten-free WL Making protein count When it comes to hard red wheat, receiving more rain than you have counted on or fertilized for can mean growing a lot of wheat which gets discounted severely because it doesn’t make the 12 percent protein benchmark for hard red winter or the 14 percent sought for hard red spring. Australian researchers, however, are investigating whether they can redesign wheat so a higher proportion of its proteins are functional. If it can be achieved, it would allow yields to be increased by as much as 50 percent over current levels and still make excellent end-use products. WHEAT LIFE NOVEMBER 2013 45 REPORTS WA S H I N G TO N G R A I N CO M M I S SION Changes ahead for WSCIA, farmers WASHINGTON GRAIN COMMISSION Growers should Brace for ‘a heck of a ride’ as variety choice widens 46 Jerry Robinson was just two years old when his father caught the entrepreneurial spirit, left his job as a production manager at a Moscow-based farm business and headed to Southern Idaho to try his hand at growing seed crops on 92 irrigated acres. Ten years later, the owner of a seed pea business asked his dad to come back to Moscow to run it. They offered him $600 a month. Given that this was the same amount his father had cleared the previous year farming made the decision easy. Robinson was working with seeds while he was still a sprout himself. Officially, he worked for his father for 24 years, eventually buying Stubbs Seed and running it another five years. Before he was 49, he had been in the seed business for 30 years. The downturn in the pulse market in the 1990s, however, scrambled the family’s heritage, and Robinson closed Stubbs in 2000. been a backhanded plus.” The industry needs somebody who tries harder because seed companies and farmers are in the midst of navigating a wheat seed revolution. Last year, WSCIA certified 148 wheat varieties, up from 90 just a few years earlier. Scott Yates, director of communications for the Washington Grain Commission, recently sat down with Robinson to discuss the avalanche of new varieties and how WSCIA and farmers will manage the challenge. “There is a perception that all these companies are the evil empire, so to speak, but we have found they are very good to work with. They each have their own structure to work within, but each has been extremely supportive of crop improvement.” WGC: What can wheat farmers expect of the seed sector in the next few years? Robinson: The number of varieties coming to market is just staggering. AgriPro (Syngenta) and Westbred (Monsanto) are going full tilt. Limagrain is just starting to hit full stride, and Dow AgroSciences reportedly has a couple of varieties in the He then worked for two years wings. WSU is also getting faster for Columbia Grain, building its —Jerry Robinson, at releasing varieties, not to menpulse acreage before an openWSCIA seed manager tion Bayer CropSciences will ing as foundation seed manprobably be coming to the region ager at the Washington State soon. And AgriPro has hybrid Crop Improvement Association wheat coming. Between all of them, farmers are going to (WSCIA) in 2003 again changed the direction of his life. wind up with quite a chunk of new varieties in the next In 2007, he was hired as general manager of the not-forfew years. I think it’s going to be a heck of a ride. profit association which ensures the genetic purity of the WGC: What exactly does the WSCIA do? seed farmers buy and certifies the fields where the seed Robinson: A lot of people, including me before I is grown. worked for crop improvement, are confused over who You would never suspect that Robinson didn’t attend we are and what we do. WSCIA is the umbrella organicollege. His raw intelligence, good humor and 40 years zation of two different entities. There is the certification in the seed business have provided him with all the tools arm of crop improvement which is governed by an MOU needed to excel. with the Washington State Department of Agriculture, “My father told me that college is a shortcut. It jumpwhich certifies fields where seed is grown. For many starts you,” Robinson said. “But to be honest, the lack of years, that’s all we did. Then in the 1970s, Washington a degree has made me try harder. I have had to prove State University asked WSCIA to take over its foundamyself, and in that respect, it has made me better. It has tion seed program. We have an MOU with the university WHEAT LIFE NOVEMBER 2013 WGC REPORTS WL to handle the breeder-to-foundation seed increase. The breeder gives his seed to us. We raise foundation and then registered and certified seed. Certified is the third generation away from the original variety. Various studies have shown there’s a two-to-five bushel advantage by planting certified seed over grower-saved seed caused by things like a drop in seed viability and genetic drift from the original. WGC: Farmer-saved seed—isn’t that what some people call brown bagging? Robinson: I don’t call it brown bagging because a lot of brown bagging is illegal, and it has a negative connotation. I call it grower-saved seed. We don’t like it, but it’s within farmers’ rights to do it. Between 8 percent and 10 percent of the wheat seed planted in Eastern Washington is grower-saved seed of older, common varieties. WGC: With all the competition in the seed industry today, how do you see things playing out for WSU? Robinson: As newer varieties become available, the mindset has changed to a certain degree. The fact that private companies have salesman has woken people up. The university system was getting complacent, kind of a “If you release it they will come” mentality. They were doing what they always did. If it hits it hits. Now, with the advent of private companies, WSU is at a point of needing to step up and bring something to the table. Everybody is looking at the same acreage. Instead of farmers having one choice of a variety for a specific area, they may have five. We’re back in the car-shopping mode. WGC: So how does a farmer make a decision about the best variety to grow? Robinson: Growers start out in a mode of “This is what I’ve traditionally grown,” and then they move to the next step. Maybe they go to a field day or see some literature. Then they go to their seed dealer. Maybe they want something to replace Madsen. The farmer is making an educated guess. The seed dealer has a great amount of influence about what the grower is putting in the ground. If a grower comes in and asks whether he should raise Ovation or Legion, he might not know the difference between the two, but his seed dealer does. Seed dealers know the varieties for their areas better than anybody else. WASHINGTON GRAIN COMMISSION Jerry Robinson, general manager of the Washington State Crop Improvement Association, strikes a relaxed pose in front of his organization’s new building located not far from Washington State University’s Pullman campus. WGC: Is it wise to give seed dealers the power to make those choices? Robinson: It works pretty well. It could be improved. For seed houses, their location and physical infrastructure often dictates the varieties they’ll handle. For instance, Central Washington is going to need varieties that are snow mold resistant. Others are going to need aluminum tolerance or fusarium root rot resistance. The growers have to grow what the dealer has and what works best for them. WHEAT LIFE NOVEMBER 2013 47 WL WGC REPORTS WGC: We’ve been told private companies are looking to exploit higher yielding areas and won’t breed for small areas with specific problems, like snow mold. Robinson: Privates are not going to pass up any available acreage. A place like Douglas County may make them gun shy because it isn’t known for having a lot of certified seed, but as a whole, companies are looking at any area they have adapted varieties. They aren’t going to just look at the Palouse proper or the (Columbia) Basin. They’re looking everywhere anymore. WASHINGTON GRAIN COMMISSION WGC: How has it been working with the private companies? Robinson: We have prided ourselves on the fact we have been able to make the public and the private folks comfortable enough to work with us and make increases and share their dark secrets. We have some concerns, but as a whole, we have done a really good job of maintaining neutrality, whether in certification or foundation seed production. Everybody benefits. I’m pleased with the situation we are in right now. I have my concerns about getting too one way or another, but we have worked very diligently at keeping ourselves neutral. WGC: By their very nature, private companies are competitive. Do you see that in your interactions? Robinson: There is a perception that all these companies are the evil empire, so to speak, but we have found they are very good to work with. They each have their own structure to work within, but each has been extremely supportive of crop improvement. My hat is off to all of them. They’re playing in the sandbox very well. No one has put us in a situation of asking us to give them a leg up on their competition. I’m really impressed with the working relationship among all these companies. WGC: How has WSCIA managed the additional workload? Robinson: I think we have taken on the private company model where we work our people harder than in the public sector, and we expect more out of them. The WSCIA has seven employees, and we’re running them pretty hard, but we’ve also increased our efficiencies. We’ve changed how we handle things in the field as far as foundation seed. We’ve hired outside crews to do some of the work that we used to do internally. But we are at the stage now where we will need to look at our employee situation. WGC: What about your relationship with WSU? Robinson: We have a really good relationship with WSU. Sometimes, I have to work to keep a professional distance, but overall, it’s a good relationship. WGC: How has the wheat seed business in Washington changed? Robinson: We’re seeing the small seed dealers and co-ops selling out for competitive or financial reasons. The big are getting bigger and running extremely lean. Some of them have the money, but not the time or wherewithal to do the job (of growing seed) as well as they should. It used to be a guy would raise 20 or 40 acres of foundation seed. Now, that’s almost a nuisance. But the growers are getting bigger too, and they don’t want to handle 20 or 40 acres. They want 500 acres. The combination of larger growers and seed dealers makes it more difficult to raise these varieties in a proper manner. WGC: How is the WSCIA going to deal with the advent of genetically engineered varieties? Robinson: I’ve had discussions with researchers on how we’ll handle increases, but it hasn’t gone further than that. It’s not really on my radar at this point. 48 WHEAT LIFE NOVEMBER 2013 Variety survey charts future Private and out-of-state varieties ascendant By Scott A. Yates Ten years ago, there were two private varieties planted in Washington, comprising less than 3 percent of the soft white winter (SWW) wheat acreage grown in the state. In 2013, 13 private soft white winter varieties composing about 45 percent of Washington’s flagship crop were planted on 508,450 acres. Varieties of soft white winter wheat developed at Oregon State University (OSU), meanwhile, were sown on 363,927 acres. Washington State University (WSU) varieties, which not long ago commanded the vast majority of SWW acreage in Washington, were planted on 311,813 acres with a single Agriculture Research Service variety planted on 37,000 acres. The No. 1 soft white winter variety in Washington at 234,508 acres is ORCF-102, an OSU Clearfield herbicide-tolerant wheat with a Madsen pedigree. That was down from 320,269 acres last year. OSU also has the No. 6 variety, ORCF103, designed to be planted in Eltan areas. Its use fell from 118,406 acres in 2012 to 81,850 in 2013. Farmers pay a royalty of 2 cents on each pound of seed purchased from OSU. Based on the 2013 list, Washington farmers sent the Beavers’ program between $400,000 and $500,000. Counting varieties from OSU and the University of Idaho along with private company varieties, nearly 75 percent of the soft white winter seed Eastern Washington wheat farmers planted in the fall WGC REPORTS wheat out of the 25 listed older than 10 years and only three varieties of HRW out of 15 listed. At the time, it was believed the one-gene technology would be short-lived due to chemical resistance and out-crossing issues that have yet to show up. WSU has changed course in the interim and has just approved the release of two-gene Clearfield varieties that the university hopes will replace earlier Oregon selections. Eltan, a 1990 release from WSU, was the No. 1 most grown variety from 1999 to 2010. It has now dropped to third place, planted on 139,762 acres. In 2003, it was planted on 445,600 acres as a single variety and much more than that in blends. Madsen, an ARS release from 1988, was No. 1 from 1995 to 1999. Ten years ago, it was planted on 307,900 acres as a single variety and again, much more in blends. Today, it is planted on 36,928 acres. The 2013 Washington Wheat Variety Survey, based on certified seed sales in Eastern Washington, is a veritable treasure trove for those willing to mine the data. Jerry Robinson, manager of the Washington State Crop Improvement Association, said the survey proves how fast the industry is changing. He said more changes are in store including a chunk of new varieties in the near future (see preceding article). In the past, the Washington Agricultural Statistics Service (WASS) conducted the varietal survey. Based on a telephone poll, the survey revealed the multitude of blended varieties farmers plant. A reorganization at WASS resulted in a steep increase in the cost of the survey. As a result, for the last two years the Washington Grain Commission has obtained varietal information based on certified seed sales. Washington growers have the highest certified seed use in the nation at around 92 percent. The inroads private companies have made into the state is even more pronounced when it comes to hard red winter acreage. Out of the 214,766 acres planted in 2013, 170,293 acres, or 79 percent, are licensed to private companies, the biggest of which include Westbred (Monsanto), Agripro (Syngenta) and Limagrain, a French cooperative. A similar situation exists for hard red spring acreage. Of the 223,648 acres planted to the class in Eastern Washington, 147,312 acres were from private companies, or 66 percent. Farmers appear to be listening to breeders who argue that those planting older varieties are leaving money on the table. Of the 25 soft white winter varieties listed, nine have been released since 2010, comprising 236,620 acres. WSU does shine in some classes. Soft white winter club acres are dominated by Bruehl, a 2000 release, with 110,482 acres out of the 173,199 planted to the class, or 64 percent. Most of the rest of the club varieties, comprising 54,498 acres, are from the Agricultural Research Service of the U.S. Department of Agriculture. WSU also shows well in soft white common spring acres with its varieties planted on 219,212 acres out of a total 270,325 acres, or 81 percent. WASHINGTON GRAIN COMMISSION of 2013 came from programs outside of WSU. A large part of the discrepancy is the result of a decision made at WSU in the 1990s not to pursue Clearfield herbicide-tolerant varieties. WL Older varieties which farmers had grown accustomed to and were reluctant to give up once ruled the variety list. Just five years ago in 2008, more than 97 percent of the varieties grown in Eastern Washington were 16 years or older. In 2013, however, there were only five varieties of SWW WHEAT LIFE NOVEMBER 2013 49 WL WGC REPORTS 2013 Washington Wheat Variety Survey WASHINGTON GRAIN COMMISSION Soft White Common Winter Acres ORCF-102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234,508 Xerpha . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,627 Eltan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,762 WB 528 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,677 SY Ovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,179 ORCF-103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,850 Trifecta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,087 AP 700 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,177 WB 523 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,635 Brundage 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,541 Madsen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,928 WB-1070CL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,015 Legion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,669 WB 456 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,606 Stephens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,519 Skiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,835 Masami . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,358 WB-Junction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,664 Bruneau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,501 Rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,066 AP Legacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,220 Tubbs 06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,215 AP Badger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,140 LCS Artdeco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,074 WB1066 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,307 Other varieties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,844 Total . . . . . . . . . . . . . . . . . . . . . . . . . 1,292,004 Soft White Club Winter Acres Bruehl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,482 Cara . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,257 Coda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,171 IMI Bruehl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,834 Chukar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,070 Other varieties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,199 Hard Red Winter Acres Norwest 553 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,474 Farnum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,656 Whetstone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,194 LCS Azimut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,149 AP 503CL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9,514 Sinope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,211 WB-Arrowhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,658 Esperia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,823 Bauermeister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,616 Declo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,443 Eddy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,666 FX001C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,584 WB Tucson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,813 Rimrock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,987 Paladin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,764 Other varieties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,766 Winter Wheat Acres Planted Estimate . . . . . . . . . . . . . . . . . . . . . . 1,679,969 Soft White Common Spring Acres Louise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,096 Diva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,229 Nick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,383 Babe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,690 Whit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,197 WB-1035CL+ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,295 Other varieties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,435 Total . . . . . . . . . . . . . . . . . . . . . . . . . . 270,325 Soft White Club Spring Acres JD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,444 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,444 Hard White Spring Acres BR-7030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,639 WB-Hartline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,725 Other varieties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Hard Red Spring Acres Expresso . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,672 Kelse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,916 Solano . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,557 Buck Pronto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,677 Jefferson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,237 SY605CL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,360 WB Fuzion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,879 Cabernet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,606 Hollis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,143 Bullseye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,076 WB Rockland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,485 Glee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,656 Tara 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,150 Other varieties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,199 Total . . . . . . . . . . . . . . . . . . . . . . . . . . 223,648 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,443 Spring Wheat Acres Planted Estimate . . . . . . . . . . . . . . . . . . . . . . . . 519,860 Total Acres Planted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,199,829 50 WHEAT LIFE NOVEMBER 2013 WGC REPORTS WL Soft white where? Outside of PNW, Michigan is next top producer of soft white wheat By Scott A. Yates Washington, Oregon and Idaho are known for soft white wheat production, with the low protein, whitecoated bran class grown, respectively, on 88 percent, 95 percent and 79 percent of the three Northwest states’ wheat acreage. As was evident in Washington this year, wheat with white bran is more susceptible to low falling numbers than red bran wheat given the conditions that cause sprout or induce alpha amylase activity. In Michigan farming country, which can receive more than 30 inches of rainfall annually, avoiding falling number discounts has led directly to an increase of soft red production. The Although fusarium head blight attacks all classes of wheat under the right conditions, Michigan farmers believe soft white is more susceptible to the disease. An outbreak of blight in 1996 completed farmers’ shift in planting priorities from white to red. Michigan growers cannot, however, abandon soft white completely. A mature milling industry provides soft white flour to manufacturers of breakfast cereals like General Mills, Post and Kellogg. Lately, however, getting enough soft white has meant offering premiums—60 cents a bushel recently, but as high as 80 cents in the past. In very short years, soft white is railed in from the Northwest. That is not the preferred solution to short soft white years, said Byung-Kee Baik, lead scientist of the Soft White Quality Lab in Wooster, Ohio. Baik, who until recently directed the wheat quality program at Washington State University, said even the lowest WHEAT LIFE NOVEMBER 2013 WASHINGTON GRAIN COMMISSION Eight other states, however, also grow soft white with Michigan being the top producer outside the Northwest. About 32 percent or 14.4 million bushels of soft white was produced in the Great Lakes state in 2013 out of a total 45 million bushels’ worth of production. The other 68 percent of the state’s production is soft red. Twenty years ago, before falling number and disease issues came to the fore, the ratio was 70/30 in favor of soft white. level below which falling number discounts are imposed in Michigan, however, is 240 seconds, not the 300 seconds required for export from the PNW. 51 WASHINGTON GRAIN COMMISSION WL 52 WGC REPORTS Chris Schmidt is a soft white grower, but don’t expect to find him in the Northwest. Schmidt grows soft white in Michigan, ranked fourth in the nation for production of the lowprotein wheat. protein soft white from the Pacific Northwest—around 8 percent—is still higher than the 6 percent Michigan manufacturers prefer. Northwest soft white may also have stronger protein and grain hardness, traits that still need to be verified, Baik said. “They are a huge presence in the state in terms of soft white wheat consumption and have made Michigan a unique wheat growing state,” Schmidt said. Small but unique Chris Schmidt, a soft white seed grower and member of the Michigan Wheat Program (MWP) board formed in 2011, grows soft white and soft red for seed on a 700-acre farm homesteaded by his mother’s family in the Saginaw Valley. He devotes between 150 to 180 acres to producing certified wheat seed and averages about 100 bushels an acre on soils that were once an ancient seabed. He also grows oats and soybean for seed. If you consider soft white winter wheat a separate class, it constitutes the smallest of the established classes of wheat in the U.S. with 214 million bushels produced in the 2012/13 crop year. That compares to 565 million bushels of soft red winter and 744 million bushels of hard red winter. Hard white winter production is far smaller than soft white, but hardly what you would call “established” at a little more than 11 million bushels. Schmidt said the milling industry, which established itself in Michigan before wheat production moved into drier climes further west, is the “800-pound gorilla when it comes to soft white.” Within the state or in close proximity are eight different milling companies compared to just two mills in Eastern Washington, both owned by ADM. It’s the same for spring wheat. Soft white spring production in the 2012/13 crop year stood at 32.6 million bushels compared to 61.5 million bushels for durum and 488.6 million bushels for hard red spring wheat. Hard white spring production was 10.5 million bushels. Total production of soft white (spring and winter) throughout the U.S. stood at 247 million bushels in 2013. WHEAT LIFE NOVEMBER 2013 Dave Milligan, chairman of the MWP, said that’s why he continues to grow soft white even though it’s riskier than soft red. “You can make as much growing soft red wheat without worrying about quality issues. The reason I haven’t changed (to red) is because I feel this is an area that has a strong miller presence with a use for white wheat. If we have the millers and end users who want white wheat, we’d be stupid not to grow for that market,” he said. Milligan also grows corn, soybeans and dry beans. Although farmers like each one of their rotations to be as profitable as the next, he said his wheat crop serves to spread his risk and puts his $400,000 combine to work in July instead of sitting in the shed until corn and bean harvest in September and October. Wheat acreage in Michigan has been on the decline since 1953 WGC REPORTS when 1.5 million acres was planted. Since then, corn and soybeans have been ascendant. In 2013, Michigan farmers harvested 600,000 acres of both soft red and soft white wheat. Jody Pollok-Newsom, executive director of the MWP, remains convinced of the commodity’s potential in the state. Until now, there’s been an organizational vacuum that has been filled by advocates of corn and soybeans. “There have been drastic cuts at the state and federal level for agricultural research. It’s not a popular place to spend money anymore. We felt the need, and who better than wheat growers to control the purse strings?” Milligan said. Did you know that Michigan has: • 54,900 farms • An average farm size of 182 acres • 10,000,000 tillable acres • 200 grain elevators 1600 1400 1200 1000 800 600 Milk 400 200 0 Corn 19351940 19451950 19551960 19651970 19751980 1985 19901995 20002005 2010 Apples MIlk Wheat Soybeans Potatoes 80 Nursery 60 Hay, All 40 Cattle & Calves 20 Cattle & Calves 0 Hogs 19351940 19451950 1955 1960 19651970 19751980 1985 19901995 20002005 2010 Cherries, All Wheat Nursery 60 50 Sugar Beets 40 30 Eggs 20 10 Potatoes 500000 1000000 1500000 2000000 0 19351940 19451950 1955 1960 19651970 1975 19801985 1990 2010 0 19952000 500000 2005 1000000 Grapes, All Pears, All 0 Michigan’s Top 10 Ag Commodities by Cash Value 1500000 2000000 Washington’s Top 10 Ag Commodities by Cash Value Apples Milk Corn Milk Soybeans Wheat Nursery Potatoes Cattle & Calves Hay, All Hogs Cattle & Calves Wheat Cherries, All Sugar Beets Nursery Eggs Grapes, All Pears, All Potatoes 0 500,000 1,000,000 1,500,000 in $1,000 2,000,000 Source: USDA, 2011 0 500,000 1,000,000 1,500,000 in $1,000 2,000,000 Source: USDA, 2011 WASHINGTON GRAIN COMMISSION Michigan farmers rejected formation of a wheat checkoff in 2001. In 2011, the referendum was run again and approved. The checkoff of half a percent of the value of each bushel at the first point of sale is expected to generate around a million dollars. Part of that money will go toward Michigan’s membership in the National Association of Wheat Growers. The group is also investigating membership in U.S. Wheat Associates, but most of the collected assessment will go towards research. WL Flagship yes, but other states in the fleet It may be the region’s flagship crop, but soft white isn’t just grown in the Northwest. Three percent of California’s winter wheat production was soft white in 2013, or about 816,000 bushels. All of Nevada’s winter and spring wheat production, 1.2 million bushels, was soft white. Ten percent of New York’s winter wheat production was in soft white, or about 782,000 bushels. Twenty-six percent of Utah’s winter wheat in 2013 was soft white, or 1.5 million bushels, while 37 percent of its spring production, or 248,640 bushels, was soft white. Colorado farmers produced 738,000 bushels of spring soft white, or 1.4 percent of their entire production. One percent of Wisconsin’s and Pennsylvania’s winter wheat was also in soft white, totaling, respectively, 153,700 bushels and 108,800 bushels. Including Michigan, the total amount of soft white wheat grown outside the Pacific Northwest comes in at just shy of 20 million bushels. Washington’s total production of 117 million bushels dwarfs that number. Total production of soft white in Washington, Oregon and Idaho in 2013 was pegged at 227 million bushels, or 92 percent of all the soft white grown in the U.S. WHEAT LIFE NOVEMBER 2013 53 WL WGC REPORTS WASHINGTON GRAIN COMMISSION By Kara Kaelber Winter is upon us, and school has been back in session for weeks. The freshness of new school clothes and crisp notebooks has been replaced by jeans with holes and tattered pages. But for a dozen teachers across Washington, the school year only began in October. That’s when this select group of instructors geared up to hit the state’s fourth- and fifth-grade classrooms with a program called Wheat Week. For the past six years, the Washington Grain Commission has been the main sponsor of the program, contributing $260,000 in its 2013/14 budget. A total of 25 organizations play a role in the program. The total budget of Wheat Week and other natural resource programs, including Water on Wheels, Salmon in the Classroom and teacher education, is budgeted at $375,000, a small price to pay for educating tomorrow’s decision makers. NGRAINGSFBFXQYA N O H Y C S P O L L P E K W I SHEDXOD I F LOURAP YCONAANLVY J ORSR I OD K E A S S A B C I QHO FSORERWNEFSNDIT ATBZGRGLSRQGMNE R X E B R A N Y T T V R Y G C M Y J A K K D E W F U E F T T EGN C C E P J L A U DQOO RVPEPHYLUI T I ENC J X K A B Y E P NW V U O W L NMN R S T KQSUSTAINXT TRQH WHEATAJDGWYROOT WHEAT WEEK Through Wheat Week, guest educators use the state’s pre-eminent, small-grain crop as a tool to teach students how to conserve, protect and sustain natural resources such as water, soil and energy. Students also learn firsthand how important wheat farmers are in our state, and, more importantly, how their food is grown. By design, these approaches purposefully fit within the state standards required at those grade levels. For example, Wheat Week connects to several science concepts in the fourth grade and also works alongside Washington state history curriculum. For fifth graders who are taking the Science MSP (Measurement of Student Progress) in the spring, Wheat Week serves as an excellent review. Regardless of the grade, the intentional focus of the curriculum makes the program popular with teachers. “Wheat Week’s curriculum greatly enhanced my students’ academic vocabulary from the study of water, soil, the three renewable energy sources and the amazing background information on wheat,” said Donna Bartkowski, a fifth-grade teacher at Hiawatha Elementary in Othello. “We used the ‘Kernel Journal’ as a springboard for further investigations of the uses of 54 WHEAT LIFE NOVEMBER 2013 wheat, and what is meant by the term ‘breadbasket of the world’ as practice for labeling parts of a system and to raise our level of awareness about the ingredients of the food we eat.” As impressive as the curriculum is, it’s the trained educators coming into the classroom to teach the program each day for a week that makes the real difference. “What a wonderful program, but even better...Jessica. She is SO personable, and the students really enjoy her,” said Danielle Huber, a fifth-grade teacher at West Valley Middle School in Yakima. “She has a great mix of structure, fun, activities and skills and is able to control behavior problems.” The same can be said about all the educators implementing the program based on feedback we’ve received through numerous evaluations each year. During the summer, the Wheat Week program goes through curriculum changes according to the suggestions teachers provide. This greatly improves the overall program, and the additional training program educators receive improves the Wheat Week curriculum each year. PowerPoint presentations and hands-on activities keep the students engaged and focused during the hour-long For a list of words hidden in this puzzle see page 63. Using grain as an educational tool WGC REPORTS lessons. But the most important part of each day’s lesson is making learning fun. That is certainly what students like about the program. There are currently 12 Wheat Week educators across Washington, including myself, education director at the Franklin Conservation District in Pasco. It was my idea seven years ago to pitch the Wheat Week concept to what was then the Washington Wheat Commission. The program, which started in Eastern Washington, extended into Western Washington in 2010, and three teachers now cover schools in Island, King, Kitsap, Mason, Pierce, Skagit, Snohomish, Thurston and Whatcom counties. Proof that the message is getting through is found in the postcards. At the conclusion of each Wheat Week lesson, students fill out a “Thank You Washington Wheat Farmer” postcard to thank the farmers and the industry that helps sponsor the program. Some of the postcards are appreciative and thank the farmers for providing yummy wheat. Some are informational and tell the farmers what they’ve learned. By far, the most powerful are the heartfelt and sincere responses like: “I want to be a farmer when I grow up,” or “Thank you for giving me this opportunity to feel the wheat. I threshed it in my hands,” or “Thank you for letting me chew the wheat in my mouth until it made wheat gum.” These experiences are rare for the average student and will indeed leave a lasting impression. That answer wasn’t good enough for my daughter. We ended up purchasing recycling bins, and now my seventh-grade daughter and I make weekly trips to the recycling center. I’m hoping Wheat Week has the same effect on students, helping them understand the hard work that goes into making their food and the conscientious effort farmers practice in protecting our natural resource. The ultimate goal is to help children appreciate and conserve the precious natural resources that make life on our planet possible. (Above) You won’t often find Wheat Week teachers in one place. Back row from left are Ann Leach, Jessica Kinney, Jennifer Reilly, Kara Kaelber, Meghan Miller and Holly Thompson. Front row from left are Naomi Alhadeff, Terry Rueb, Brad Bowers and Stacey Selcho. Not pictured are AmeriCorp volunteers Zach Hinman and Mikaela Legarsky. (Left) Sammy Keskitalo and Sierra Pauley use a magnifying glass to look at a grain of wheat as part of Wheat Week at Mesa Elementary in Mesa, Wash. Photos by Kara Kaelber WHEAT LIFE NOVEMBER 2013 WASHINGTON GRAIN COMMISSION It’s important to educate children while they’re young. My own family is an example of the payoff. My daughter was in kindergarten when she came home and informed me we needed to start recycling. Before then, we didn’t recycle because our county didn’t offer curbside service, and it would take a lot of extra work to make it happen. WL 55 WHEAT WATCH WASHINGTON GRAIN COMMISSION Pricing signals positive By T. Randall Fortenbery WASHINGTON GRAIN COMMISSION U.S. wheat producers entered the second quarter of the marketing year (September through November) holding just under 30 percent of total U.S. wheat stocks. This is a slightly higher percentage than last year, but less than the five-year average (Figure 1). The Sept. 1 stocks number implies that almost 38 percent of the total 2013/14 U.S. wheat supply was consumed in the first quarter. This is well above each of the previous four years (Figure 2) and even exceeds the aggressive first quarter pace of 2008. Producers began the marketing year (June 1) holding a larger percentage of total stocks compared to each of the last two years and the five-year average. Going from above-average farmer holdings (relative to total stocks) to below average over the course of the first quarter suggests farmers were more aggressive in making sales through the harvest season this year compared to previous years. Total wheat disappearance June through September exceeded that of the previous year by 10 percent. This year-over-year increase is largely explained by export activity (Figure 3) and comes despite total U.S. wheat supplies being 5 percent below last year and slightly less than the 2011/12 supply. The most recent U.S. Department of Agriculture (USDA) estimate forecasts an 8.5 percent increase in total wheat exports relative to last year. However, first quarter exports this year exceeded last year’s pace by more than 28 percent. Increased export expectations are offset by a forecast for decreased domestic wheat consumption. USDA projects a modest increase in domestic food use of wheat, but this is more than offset by a 28 percent reduction in wheat feeding. According to their September estimates (October estimates were suspended due to the federal government shutdown), total domestic use of wheat for 2013/14 is expected to lag last year by 98 million bushels, or about 7 percent. The result is a total use estimate for 2013/14 (domestic consumption plus exports) that is about equal with last year’s total wheat consumption. Given that exports through the first month of the second quarter (September) have continued to outpace last year’s levels, 56 WHEAT LIFE NOVEMBER 2013 the total 2013/14 use level may be underestimated. Over the previous four years, about 43 percent of the total wheat supply was consumed through the end of the second quarter (Dec. 1). If USDA has estimated total U.S. wheat supply accurately, then based on the aggressive pace of first quarter disappearance this year, we will likely consume more than half of the total supply by Dec. 1. This is consistent with the incentive signals being sent though the futures market. Futures prices for wheat are offering little reward for storage past December (soft red wheat futures for March and May delivery do not exceed December delivery prices by the cost of storage, and for hard red winter wheat deferred futures are actually lower than prices for earlier delivery). This means grain merchants face an Figure 1: Percent of U.S. wheat supply held by farmers 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 June 1 Sept. 1 5-Year Average 2011/12 Dec. 1 March 1 2012/13 2013/14 Figure 2: First quarter wheat consumption as a percent of total supply 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 WHEAT WATCH Supply Demand Estimates. If USDA stays with their earlier demand estimates, we would need to see a dramatic drop in quarterly consumption rates over the remainder of the year for those expectations to be met. Figure 3: U.S. weekly wheat exports 1,400,000 1,200,000 metric tons 1,000,000 600,000 400,000 200,000 June July 2011/12 Aug. 2012/13 Sept. 2013/14 In Washington, wheat producers entered the second quarter holding 16.5 million bushels of wheat, a significant increase over the 14 million they held on Sept. 1, 2012. Their holdings represented less than 12 percent of the total Washington wheat supply. This is about the same percentage they held a year ago. Figure 4: Total U.S. white wheat exports 6,000,000 5,000,000 metric tons 4,000,000 Total Washington wheat stocks on Sept. 1 represented about 98 percent of the 144.2 million bushels produced in 2013. This is well above the percentage held the previous two years. On Sept. 1, 2011, Washington wheat stocks were less than 97 percent of total production and in 2012 were 94 percent. 3,000,000 2,000,000 1,000,000 2011/12 2012/13 Ap 2013/14 increased incentive to move grain to the market rather than holding inventory and hoping to earn profits from storage and may contribute to a more aggressive second quarter disappearance compared to previous years. Given that total consumption first quarter this year exceeded last year despite September projections of lower overall use, it seems likely USDA has underestimated total wheat consumption for this year. Exports are currently on pace to exceed last year by more than the projected 8.5 percent. Export activity through September suggests that, like the first quarter, second quarter exports will also exceed last year’s levels. The aggressive pace of wheat disappearance through the first four months of the marketing year implies we might see substantial changes to the overall wheat balance sheet in the Nov. 8 USDA World Agricultural Ma y Unlike total U.S. wheat exports, white wheat exports out of the PNW are lagging last year’s pace (Figure 4). Through September, they were about 20 percent less than last year. This is consistent with USDA’s forecast for a year-over-year reduction in white wheat exports of close to 14 percent. ril c. De No v. t. Oc y Jul Jun e 0 WASHINGTON GRAIN COMMISSION The market may already be pricing a tighter balance sheet compared to USDA’s September estimate. Soft red wheat futures for December delivery have experienced a steady uptrend since bottoming out on Sept. 5. Through Oct. 19, the market added more than 65 cents per bushel to the December price and closed above $7 per bushel for the first time since June 24. 800,000 0 WL The lower white wheat export projection relative to year-ago levels is offset by a lower 2013 production estimate, resulting in a 19 percent reduction in 2013/14 ending stocks compared to last year. While this is generally price positive, we are not likely to see PNW cash prices over the next couple of months challenge the price levels experienced a year ago. Randy Fortenbery holds the Tom Mick Endowed Chair in Grain Economics at Washington State University. He received his Ph.D. in Agricultural Economics from the University of Illinois-Urbana/Champaign. WHEAT LIFE NOVEMBER 2013 57 WL FEATURE P hoto courtesy a ms o f h o more te w T . n o g ok wa .org) crew’s co lheritage a harvest gtonrura s in w sh o a sh w , ” s0059 d Jake agon. (iri to “Frien e cook w a Zickler th m f m o E t n m o d in fr card fro are pose 11, a post little boy Dated 19 a d n a n a ma wo m e n , of the orses sta n C ounty H istorical ey , and thre d nearby G rant Society o un g Rustling up some grub A look at the women who cooked for threshing crews in the early 1900s By Trista Crossley Imagine making your Thanksgiving or Christmas dinner on a wood-burning stove, without the luxury of a refrigerator or a microwave. Now imagine doing it every day for weeks in a small, enclosed space in the midst of summer’s heat. Welcome to the world of a threshing outfit’s cook. Back around the turn of the 20th century, the wheat harvest was a much more complicated affair that involved dozens of people spending weeks, if not months, doing back-breaking labor. Rather than the combines we see now, where one person can harvest hundreds of acres a day by themselves, back then, harvest was done by cutting the wheat and then bringing the cut wheat to a thresher, a stationary machine run by steam. Because the threshing machinery was so expensive, most farmers didn’t own 58 WHEAT LIFE NOVEMBER 2013 one, but instead, rented the use of one, along with a crew, to harvest their fields. Besides the thresher, often called a “stationary,” the outfit usually included several “headers,” the machines that cut the wheat; “header boxes,” the wagons that moved the cut wheat from the field to the thresher; and a cook wagon. Crews of 20 to 40 people were needed to run the operation, as well as horses or mules to drive all the equipment. Unless they were very close to home, the crews would live in the fields during harvest, sleeping on the ground with limited bathing and other plumbing opportunities. And all those people had to be fed, four or five times a day. All of the cooking was done in a cook wagon, a large, enclosed structure that held a woodstove, a table for food preparation and narrow tables and benches for the crew to sit at while they ate. Screened windows lined the sides FEATURE of the wagon. Most outfits employed two cooks, usually women who were related, such as sisters or mothers and daughters. Hooper resident Della Evans grew up listening to her mother, Lenora Barr Torgeson, talk about harvest and the cook wagon. In 1975 for a church charity, Torgeson wrote a small book, “Snake River Hills,” that talked about growing up in wheat country and being with her mother who spent time as a cook in the cook wagon. “The whistle would blow at 4 a.m. The men would thresh for two hours and then eat breakfast at 6 o’clock,” Evans said, reading from her mother’s book. “At 10 o’clock, they would have 15 minutes for lunch, which was taken to the fields. Dinner would be at 12 noon. Another lunch would be served at 3 o’clock, and then the men would thresh until 8 o’clock.” After finishing threshing for the day, the men would eat a supper before bedding down for the night. WL be delivered, otherwise, cooks used cured meats, such as bacon, ham and sausage. Vegetables were mainly longlasting ones, such as potatoes and cabbages, supplemented by whatever the “roustabout” (the person who brought supplies to the camp) delivered. Canned fruits and vegetables were the normal fare. “As far as those cookhouses were concerned, if it didn’t come out of a can, it probably didn’t come,” Evans said. “They just didn’t have refrigeration. They had to eat it up at that meal, and then the next meal would be from scratch. There’s no refrigeration, so that’s “You can imagine, with all those horses Crider har ve st outfit usi Photo courtesy that were around, ng a steam is the cook of the Lottie engine to ru wagon. Ph Crider Private n stationar oto dated 19 Collection there were flies,” y har vester 13-1915; ph and the W . Note the w otographer hitman County at er wagon o is u n kn Library own. (WCLS Evans said. “Mother, n hill, and fu J062, wash rther up th ingtonrura e hill lheritage.o being a little girl, it was her job to wave a rg) tea towel over the food to keep the flies away. It doesn’t take an awful lot of imagination to really think about what pretty hard for young people to imagine. those women did out there in that cookhouse. In the first Cold drinks were a thing unheard of.” place, it is hot, and they are cooking with wood or coal. Hilda Carlson Ruberg spent several threshing seasons in You have a heated stove in a little room, and the heat has the cook wagon. Born in 1893, Hilda and her family came got to be terrific. Then they wore long dresses, and the wato Idaho’s Latah County in 1912. She was interviewed in ter was hauled, so you know they didn’t have much water. 1976 as part of the Latah County Historical Society’s oral There wasn’t deodorant, and the men didn’t bathe very history project (see bibliography). She recalled cooking often. The men were dirty and grubby, and even though for 28 men in 1913 with her sister, Mabel. In the interview, they had wash pans and did wash their hands and faces, Hilda is asked what kinds of food she cooked. maybe, at the same time, there they were sweating, and there was no way of bathing.” Because there was no refrigeration, the food had to be made from scratch each day. Bread, pies, cake and cookies were baked daily, the women juggling cooking space with meats and vegetables. In some cases, fresh meat would “Oh, vegetables and potatoes and meat and desserts,” Hilda answers. “You know, those days we didn’t serve salads…And breakfast was always bacon and pancakes and eggs, you know, oatmeal, stuff like that. And of course, we baked all our own bread and everything. WHEAT LIFE NOVEMBER 2013 59 WL FEATURE A little later in the interview, Hilda talks about having to wash dishes in a dishpan after each meal with water that was hauled in water barrels. Then she goes on to talk about what they’d make for the rest of the meals, including the biggest meal of the day, dinner, usually served around noon. “…we didn’t have lunch because they ate breakfast at six and then dinner at 11:30, you see. So at noon, it was always roast beef or roast pork or The McGre maybe boiling beef or somegor har vest Photo courtesy crew at lun washingto of the Alex ch at the p nruralherit thing like that, you know, M cG regor ortable co age.org) Private Collection okhouse in 1928. Photo and W hitman or meatloaf, then (we) had grapher u County nknown. (W Library CLLX057, potatoes and gravy and their vegetables and then desserts.” hard time keeping In another interview for the Latah County Historical Society’s oral history project, Palma Hanson Hove, born in 1893 near Genesee, Idaho, remembered baking bread, eight loaves, twice a day for a threshing crew. the Della Evans Private everything in place when they moved the cook wagon. “Well, you had to tie everything down,” Palma says. “You had cupboards for the dishes, and you just had to wire the cupboard door shut so they wouldn’t fall out. And you couldn’t cook or anything while you were moving. And you know, like if you wanted to cook a roast so you’d have it for supper that night, you couldn’t do it because you couldn’t keep the fire going when you were moving. So, oh yes, we had to pack everything off the tables, you know, so that it didn’t shake off. And that was another added chore we had to do.” Collection and Whitman County Library in the field. als to the har vest crew was used to supply me ack ksh men sitting coo the The te sh. No Wa , ds. fiel Cookshack at Riparia ary har vest crew in the tion sta the ow , Mattie foll vey to ded Jim Stagner, William Har It would be moved as nee left are Conner Russell, m e and Fro . Dat . ack sell ksh Rus coo ia the Tav at the tables inside lan, Cora Russell and lan, Olive Nolan, Ruth No No rl Pea , vey Har y ) Ma org , Har vey onruralheritage. n. (WCLRW091, washingt photographer unknow Photo courtesy of Palma also baked pies and cookies every day, something that Hilda did as well. Palma recalls the hassle of moving the cook wagons, especially when they were trying to get a meal ready. In the interview, Palma is asked if she had a 60 WHEAT LIFE NOVEMBER 2013 Room was tight in the cook wagons, especially on the stove, as cooks often struggled to find space to bake desserts and bread at the same time as they cooked a roast. Ada Oylear Schoeffler, born in 1901 at Potlatch Ridge, Idaho, and interviewed as part of the Latah County Historical Society’s oral history project, remembered that juggling act when trying to cook for a crew of 47. “But the worst of it was, see, we had the big ranges, but they weren’t to cook for that many. Your stove wasn’t big enough…I baked 20 loaves of bread a day, 10 in the morning and 10 in the afternoon. I made pies, and I had to have so much room in the oven that I couldn’t do it. I could get FEATURE the cakes out some way, because they didn’t take so long. I had to have 12 pies and didn’t have time to get the meat in and the bread and all that stuff. I’d get up at three in the morning, and I’d be still going at 10 or 10:30 at night.” The interviewer then asks Ada if she served hotcakes for breakfast. “No, I only tried that about once or twice,” Ada replies. “That’s too much. We’d fry potatoes, and we’d have meat and eggs and a cooked cereal…because pancakes, you can’t hardly flop ‘em over fast enough to keep ‘em going. I set 14 at a time (meaning the number of people she served at a time), so they could set, and at the last, I had 20-some. I had a big dining room there at that place, and I run two tables. But at the last, why, I just had that one big, long table that seated 14. “They left the table, and then we’d have to get those dishes off and out of the way, then set some more on there. But I only tried that once, hotcakes for breakfast. That was too darn much work for that many men.” Wages for cooks varied. In another oral history interview, Fannie Cuthbert Byers, born in 1893 in Latah County, Idaho, remembered being paid $5 a day to cook for a threshing crew (this was probably between 1913 and 1920). In “Counting Sheep: From Open Range to Agribusiness on the Columbia Plateau,” a book on the history of agriculture and the McGregor family by Alex McGregor, it is noted that in 1907, cooks were paid $2 per day on the McGregor farm. WL Bibliography Latah County Historical Society, Oral History Project. Hilda Carlson Ruberg and Helena Carwright Carlson, interviewed by Karen Purtee, June 19, 1976. Latah County Historical Society, Oral History Project. Palma Hanson Hove, interviewed by Sam Schrager, June 13, 1975. Latah County Historical Society, Oral History Project. Fannie Cuthbert Byers and Jennie Cuthbert Brouillard, interviewed by Sam Schrager, Nov. 5, 1976. Latah County Historical Society, Oral History Project. Ada Oylear Schoeffler, interviewed by Karen Purtee, Feb. 7, 1976. Della Evans interview on Oct. 4, 2013. “Snake River Hills” by Lenora Barr Torgeson. Published in 1975 by the News Review Publishing Company. “Counting Sheep: From Open Range to Agribusiness on the Columbia Plateau,” by Alexander C. McGregor. Published June 1989 by University of Washington Press. “Harvest Heritage: Agricultural Origins and Heirloom Crops of the Pacific Northwest” by Richard D. Scheuerman and Alexander C. McGregor. Published October 2013 by Washington State University Press. 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 The women who manned the cook wagons took great pride in the quality and quantity of the food they made. 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Wheat still gets harvested in late summer. The grain is still threshed and taken to market. And the crews involved in the harvest still have to eat. On the Bodeau farm in the Almira/Wilbur area, they may have traded horses for engines and wagons for semitrucks, but they’ve held tight to one cherished tradition, bringing the crew in from the fields for a midday meal. “I want to continue the lunches Just a typical harvest lunch for the Bodeau Crew at Brad and Lori Bodeau’s home in 2012. because I want to be involved,” stretching across an area about 27 miles long. Four famiexplained Joyce Bodeau, wife of lies take turns cooking a large noon meal for the crew and Todd Bodeau of Bodeau Brothers Farms. “I want to hear packing a “goody” box full of fruit, cookies and beverages their stories, hear them talking about the work in the for an afternoon snack. Whose turn it is to cook depends fields. Harvest is a celebration.” on where the crew is working; they try to have the meal Harvest on the Bodeau farm usually lasts 24 days, close to the fields that are being harvested to cut down on travel time for the crew. Bodeau said that while there are usually about eight crew members, they end up serving anywhere from eight to 15 people because of the “extras”—children not actively involved in the harvest, grandparents who are no longer harvesting and other relatives. The menu often includes dishes such as roast beef and mashed potatoes or ham and scalloped potatoes with side dishes and dessert. Photo courtesy of the Bodeau family The Bodeau harvest crew takes a break to raid the “goody box,” an assortment of fruit, cookies and beverages that are delivered to the field each afternoon. 62 WHEAT LIFE NOVEMBER 2013 Even with today’s modern conveniences, preparing the lunches and goody boxes is an all day process, compounded by other commitments the women have, such as an off-the-farm job. Bodeau said she is thankful she doesn’t have to cook in a cook wagon and make everything from scratch, such as bread. Seeding and Tillage “I get up at 5 a.m. and start preparing food,” she said. “They (the crew) come in, and I start serving, and by the time they get out of here and I get the dishes done, it is 2 p.m. I might have a little time for myself, but then it is time to get the goody box out. 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CENTRAL MACHINERY SALES CENTRAL MACHINERY SALES CENTRAL MACHINERY SALES Pomeroy, WA — 509-843-3395 FARM & HOME SUPPLY 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 WHEAT LIFE NOVEMBER 2013 63 THE BOTTOM LINE Keeping the family in family farm By Dale Cloninger, CRPC® Wheatland Wealth Management You have worked hard to build your family farm, and while retirement may not be an immediate consideration for you, it’s important that you have a plan in place for the succession of your business and how you will fund your retirement. If you plan to keep your farming business in the family, you should be aware of some of the issues that can contribute to the success or the failure of the farm as it is transferred to the successor generation. Insight, planning and open discussion can contribute to the successful transfer and continuation of the family farming business. Conflicting needs and values Families and businesses commonly have conflicting needs and values. These conflicting needs often overlap in a family business as family roles and perceptions come into play inside the business. It can sometimes be hard to look beyond the family relationships and see the strengths of a family member as an employee. It is important for the continued success of your business that family issues and business issues are kept separate. One tool that has been found to be useful is the formation of a family council to establish plans for both business and family goals. Formal succession plans can be used to ease concerns about transferring ownership and to prepare the successors for their new roles. In addition, estate planning is critical for both the family and the business to ensure that the estate goes primarily to your heirs and not to pay taxes. Retirement income planning There are retirement planning options unique to business owners. If you have not already engaged in retirement planning for yourself, you might want to do so now. Arrangements can be made for deferred compensation while you are still working. With deferred compensation, you would receive a raise in salary while working but not actually receive the cash until your retirement or withdrawal from the company. If you plan to sell the business to your successor fam64 WHEAT LIFE NOVEMBER 2013 ily members, financing arrangements such as installment sales, private annuities and self-canceling installment notes can provide you with income over a period of time. A lump-sum payment can provide you with an amount of cash that you can invest. If you intend to pass the business to your heirs through your will or trust at your death, you may want to consider retirement options such as IRAs, simplified IRAs, simplified employee pension plans or some of the other retirement plans available. Smoothing the transition After you have left your business due to retirement, death or just a desire to withdraw, certain expenses will continue. While these are not new expenses to the business, it may be more difficult for the business to meet these and other existing expenses when your leadership and skills are no longer present. Let’s assume that there is nobody in the family who is prepared to step into your role and take over if you died. The business may have to recruit, train and compensate a replacement hired from outside the family. Very often, someone from outside the family may demand a higher salary than you were paying yourself. The financial burden of this potential situation can be reduced or eliminated through use of a key person life insurance policy on your life. Another expense that will continue is compensation to those children who are active in the business. If their roles are expanded with your departure, it may warrant an increase in Sponsored by the compensation. Agricultural Marketing & Management Organization. For more information and a schedule of classes visit www.lcammo.org. Profits to family members You may have family members who are not active as employees in the business but who hold ownership positions. As owners, they may expect to receive profits from the business. In addition to a cash outflow, this passive ownership interest might also represent a potential for conflict between those family members actively managing the business who want to reinvest profits back in the business. THE BOTTOM LINE Cashing out some family members Certain family members may not wish to remain with the business after you are gone, while others may have different goals. Owners who are not active in the family farm as managers or employees generally have a different set of needs and desires than those who are active participants in the business. If cash is available to repurchase the ownership interests of those members who want to leave the business, many potential conflicts could be eliminated. As stated earlier, insight, planning and open discussion can contribute to the successful transfer and continuation of the family farming business, but don’t attempt to do it all on your own. 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Wheatland Wealth Management is a full-service brokerage and financial planning division of Wheatland Bank, offering services through Investment Centers of America (ICA), including needs-based financial planning for individuals and businesses. Through the relationship with ICA, Wheatland Wealth Management can offer the following services: managed advisory services, mutual funds, stocks, fixed income/bonds, annuities and insurance. 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. 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 Brian e. Bailey aamS® Financial Advisor 3616 W. Court St. Suite I 303 Bridge Street Suite 3 Clarkston, WA 99403 Pasco, WA 99301 509-758-8731 509-545-8121 866-758-9595 888-545-8126 Terry a. Sliger Financial Advisor 1329 Aaron Drive Richland, WA 99352 509-943-2920 888-943-2920 chris Grover aamS® Financial Advisor 1835 First Street Cheney, WA 99004 509-235-4920 866-235-4920 Jay mlazgar aamS® Financial Advisor 609 S. Washington Suite 203 Moscow, ID 83843 208-882-1234 Greg Bloom Financial Advisor Professional Mall I I 1260 SE Bishop Blvd. Suite C Pullman, WA 99163 509-332-1564 Larry Kopczynski Financial Advisor 2501 17th Street Lewiston, ID 83501 208-798-4732 866-798-4732 WHEAT LIFE NOVEMBER 2013 65 Your wheat life... (Above) Shooting the summer moon from the Walt Schoessler farm in Ritzville. Photo by Marva Schoessler (Left) Wheat harvest from the cab of a combine during WHB Farms’ 2013 wheat harvest. Photo by Steve Gross Email pictures to [email protected]. Please include location of picture, names of all people appearing in the picture and ages of all children. Sixty-bushel spring wheat in Walla Walla County from the 2012 harvest. Richard Barry (left) and Cody Bennett waiting for the day to start at the Five Mile Inn Farm on Union Flat Creek Road near LaCrosse. Photo by Lance Rea Photo by Dena Bennett. Fiancés Allison Viebrock and Kyle Steveson take a breath before this year’s harvest and pose with their kids at Cliff and Debra Steveson’s farm near Grand Coulee. From top are Viebrock and Steveson, Wyatt Steveson, 12; Carter Steveson, 10; Grace Bennett, 8; and Ryan Bennett, 10. Photo by Debra Steveson HAPPENINGS All dates and times are subject to change. Please verify event before heading out. November 2013 6 Ag Outlook Conference. A one-day seminar with Dr. Dave Kohl, professor emeritus at Virginia Tech, on mega trends in agriculture, including global and national economies. Open to everyone. Sponsored by Northwest Farm Credit Services’ Business Management Center. Kennewick, Wash., (866) 5229193. Register at northwestfcs.com/ en/Resources/Management-Education/ Calendar-Registration 13-16 2013 Tri-State Grain Growers Convention. Davenport Hotel in Spokane, Wash. wawg.org/convention 20-21 Washington Grain Commission Meeting. Spokane, Wash. (509) 456-2481 29 Christmas Kickoff. Fireworks, hayrides, parade, wine tasting, gingerbread contest. Dayton, Wash. historicdayton.com/christmas-kickoff-3 29-30 Christmas at the End of the Road. And old-fashioned cowboy Christmas! Storytelling, fun run, caroling, pictures with Santa. Winthrop, Wash. winthropwashington.com/event/ christmas-end-road December 2013 2 Managing Cost I: Using Global Positions Systems to Manage Your Input Cost. Ammo workshop at Davenport Memorial Hall. Preregister by phone at (877) 740-2666 or email lcammo@ live.com. Visit lcammo.org for more info. 3 Managing Cost I: Using Global Positions Systems to Manage Your Input Cost. Ammo workshop at Hill Ray Plaza in Colfax. Preregister by phone at (877) 740-2666 or email lcammo@ live.com. Visit lcammo.org for more info. 4 Managing Cost I: Using Global Positions Systems to Manage Your Input Cost. Ammo workshop at Red Lion Hotel in Pasco. Preregister by phone at (877) 740-2666 or email lcammo@ live.com. Visit lcammo.org for more info. 5 Managing Cost I: Using Global Positions Systems to Manage Your Input Cost. Ammo workshop at Ritzville American Legion Hall. 68 WHEAT LIFE NOVEMBER 2013 Preregister by phone at (877) 740-2666 or email [email protected]. Visit lcammo.org for more info. lcammo.org for more info. 12 Managing Cost II: Making Good Capital Management Decisions. 6 Christmas Lighting Festival. Sleigh rides, carolers, roasted chestnuts. 12-7:30 p.m. Leavenworth, Wash. leavenworth.org Ammo workshop at Ritzville American Legion Hall. Preregister by phone at (877) 740-2666 or email [email protected]. Visit lcammo.org for more info. 7 Holiday Festival and Tree 12 Understanding Financial Lighting Ceremony. Live perfor- mances, fun run and marshmallow roast. Pullman, Wash. pullmanchamber.com/visit-pullman/chamber-events/ holiday-festival/ 9 Managing Cost II: Making Good Capital Management Decisions. Ammo workshop at Davenport Memorial Hall. Preregister by phone at (877) 7402666 or email [email protected]. Visit lcammo.org for more info. 10 WAWG Board Meeting. Meeting starts at 10 a.m. at Washington Wheat Foundation Building, Ritzville, Wash. (509) 659-0610, wawg.org 10 Managing Cost II: Making Good Capital Management Decisions. Ammo workshop at Hill Ray Plaza in Colfax. Preregister by phone at (877) 740-2666 or email [email protected]. Visit lcammo.org for more info. 10 Understanding Financial Statements. Hands-on, interac- tive workshop for those who want to learn basic financial skills. 8 a.m. to 3:30 p.m., Red Lion Hotel on North River Drive in Spokane. Sponsored by Northwest Farm Credit Services’ Business Management Center. (866) 522-9193. Register at northwestfcs.com/ en/Resources/Management-Education/ Calendar-Registration 11 Understanding Financial Analysis. Hands-on, interactive work- shop for those who want to learn basic financial skills. 8 a.m. to 3:30 p.m., Red Lion Hotel on North River Drive in Spokane. Sponsored by Northwest Farm Credit Services’ Business Management Center. (866) 522-9193. Register at northwestfcs. com/en/Resources/Management-Education/ Calendar-Registration 11 Managing Cost II: Making Good Capital Management Decisions. Ammo workshop at Red Lion Hotel in Pasco. Preregister by phone at (877) 740-2666 or email [email protected]. Visit Statements. Hands-on, interactive workshop for those who want to learn basic financial skills. 8 a.m. to 3:30 p.m., Terra Blanca Winery and Estate Vineyard, Benton City, Wash. Sponsored by Northwest Farm Credit Services’ Business Management Center. (866) 522-9193. Register at northwestfcs.com/ en/Resources/Management-Education/ Calendar-Registration 13 Understanding Financial Analysis. Hands-on, interactive workshop for those who want to learn basic financial skills. 8 a.m. to 3:30 p.m., Terra Blanca Winery and Estate Vineyard, Benton City, Wash. Sponsored by Northwest Farm Credit Services’ Business Management Center. (866) 522-9193. Register at northwestfcs.com/ en/Resources/Management-Education/ Calendar-Registration 13 Christmas Lighting Festival. Sleigh rides, carolers, roasted chestnuts. 12-7:30 p.m. Leavenworth, Wash. leavenworth.org 14 Miracle on Main Street Holiday Festival. Fun run, children’s activities, pictures with Santa, baking contest, parade. Ephrata, Wash. ephratawachamber.com 14 Lighted Tractor Parade. Centralia, Wash. 20 Christmas Lighting Festival. Sleigh rides, carolers, roasted chestnuts. 12-7:30 p.m. Leavenworth, Wash. leavenworth.org Submissions Listings must be received by the 10th of each month for the next month’s Wheat Life. Email listings to [email protected]. Include date, time and location of event, plus contact info and a short description. Your One-Stop Ag Shop! We’re ready Combines • Tractors • Grain Augers • Hay Equipment Tillage Equipment • Sprayers • Harrows • Drills & More Special Low Interest Rates Available OAC JONES TRUCK & IMPLEMENT Your Agricultural Supply Headquarters Now 2 locations to better serve you! 425 Walla Walla Hwy. Colfax, Wash. 509-397-4371 1-800-831-0896 304 N. 9th Avenue Walla Walla, Wash. 509-525-6620 1-800-525-6620 At State Bank Northwest, we understand it takes capital to sow the seeds. That’s why we have the time and talent ready to back you up. Have a question about AG loans? We can answer them. Call us today! Full Service Banking On a First Name Basis. Service: Greg Mayer Parts: Casey Jones Terry Largent 509-336-1344 Garfield Branch, 301 W. California St. 635-1361 Northpointe Spokane Branch, 9727 N. Nevada 464-2701 Spokane Valley Branch, 12902 E. Sprague 789-4335 Dan Helbling 509-336-1346 www.jtii.com ©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 www.statebanknorthwest .com 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 WHEAT LIFE NOVEMBER 2013 69 Advertiser Index 2nd Harvest Food Bank . . . . . . . . . . . 21 Ag Enterprise Supply Inc . . . . . . . . . . 37 AGPRO . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 ATI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Blue Mountain Realtors . . . . . . . . . . . 33 Butch Booker Auction. . . . . . . . . . . . . 27 Byrnes Oil Co . . . . . . . . . . . . . . . . . . . . . 32 Churchill’s Steakhouse . . . . . . . . . . . . . . 5 Class 8 Trucks . . . . . . . . . . . . . . . . . . . . 27 Connell Oil Co . . . . . . . . . . . . . . . . . . . . 27 Country Financial. . . . . . . . . . . . . . . . . 17 Diesel & Machine . . . . . . . . . . . . . . . . . 27 Downtown Spokane Partnership. . . . 5 Edward Jones. . . . . . . . . . . . . . . . . . . . . 65 Evergreen Implement Inc . . . . . . . . . 31 Equipment Technologies. . . . . . . . . . . . 7 Farm & Home Supply. . . . . . . . . . . . . . 65 Great Plains Equipment Group . . . . 63 Jones Truck & Implement. . . . . . . . . . 69 Kincaid Real Estate. . . . . . . . . . . . . . . . 27 Landmark Native Seed. . . . . . . . . . . . 32 Les Schwab Tire Centers. . . . . . . . . . . 29 MK Industries. . . . . . . . . . . . . . . . . . . . . 39 Meridian Manufacturing . . . . . . . . . . 15 Micro-Ag . . . . . . . . . . . . . . . . . . . . . . . . . 39 North Pine Ag Equipment. . . . . . . . . 61 Northwest Farm Credit Services . . . . 11 Northwest Outdoor Properties. . . . 61 NuChem. . . . . . . . . . . . . . . . . . . . . . . . . . 37 PNW Farmers Cooperative. . . . . . . . . 71 Perkins & Zlatich PS. . . . . . . . . . . . . . . 29 Peters and Sons Florists. . . . . . . . . . . . . 5 Pioneer West Inc. . . . . . . . . . . . . . . . . . 71 Pomeroy Grain Growers Inc . . . . . . . 33 RH Machine . . . . . . . . . . . . . . . . . . . . . . 71 Ramada Airport Inn. . . . . . . . . . . . . . . 31 Rock Steel Structures. . . . . . . . . . . . . . 23 Runners Soul . . . . . . . . . . . . . . . . . . . . . . . 5 Scales NW . . . . . . . . . . . . . . . . . . . . . . . . 17 Spectrum Crop Development . . . . . 31 Spectrum Manufacturing . . . . . . . . . 17 SS Equipment Inc. . . . . . . . . . . . . . . . . 37 State Bank Northwest. . . . . . . . . . . . . 69 T & S Sales. . . . . . . . . . . . . . . . . . . . . . . . 29 The McGregor Co. . . . . . . . . . . . . . . . . 72 The Whitney Land Co . . . . . . . . . . . . . 37 Touchmark . . . . . . . . . . . . . . . . . . . . . . . 25 Verdesian Life Sciences. . . . . . . . . . . . 39 Walter Implement. . . . . . . . . . . . . . . . . 33 Washington Trust Bank. . . . . . . . . . . . 21 Western Reclamation . . . . . . . . . . . . . 25 Wilbur-Ellis–Broadrange 55. . . . . . . . 13 Windermere Coeur d’Alene Realty Inc. . . . . . . . . 25 Thank you to all of our advertisers. Support those who support your industry. Steam threshing crew with cook wagon, probably near Deary, Idaho, circa 1899. Original photo from Oscar Olson of Deary. Latah County Historical Society, Photo Collection, 25-02-097.jpg 70 WHEAT LIFE NOVEMBER 2013 chisels . . choppers . fertilizer . harvesters . planters . rippers . chisels CHROME ALLOY WEAR PPARTS ARTS has offered hundreds of abrasion resistant Chrome Alloy wear parts for over 40 years. wear parts have proven to help reduce the cost of farming operations nationwide in all types of soils. replacement parts wear longer and maintain their shape for uniform tillage. wear parts reduce the cost per acre by giving more effective performance of your equipment with less down time. Join America’s leading farmers by insisting on ~ ~ ~ R&H Chrome Alloy wear parts 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 Setting the Standard for Wear! choppers . rod-weeders . cultivators . fertilizer . harvesters . planters . . choppers . cultivators . fertilizer . chisels . harvesters . planters . rippers . rod-weeders . . choppers . cultivators . fertilizer . harvesters . planters . rippers . rod-weeders . cultivators chisels rod-weeders . INTERESTED IN A DEMO? CALL US! RUGGED. RELIABLE. READY. Put the fuel efficient mechanical drive Condor to work for you. Servicing Oregon, Montana, Idaho, and Washington Please call 887-253-WEST (9378) 877-253-WEST (9378) Pioneer West_7.375x4.86.indd 1 6/10/13 1:24 PM WHEAT LIFE NOVEMBER 2013 71 Dedicated People Who Care Marshal, B m lue Mtn Tea Jason, N. Palou se Team . Team Dean, Columbia Pl CropSync2.0 in the hands of our trained professionals can convert complex data, imported from multiple sources, into farm plans, determine the best rotational crops, enable quick and easy conservation program reporting, and create fertility and pest management plans that are profitable and environmentally sound. Loren, S. Palo u se Team Your McGregor Certified Crop Adviser is ready to show you the benefits of CropSync2.0 Cr Cr pSync 2 .0 TM “Synchronizing Agriculture” 800-873-8666 The McGregor Company www.cropsync.com