USDA-Economic Research Service News Wheat Outlook for Feb 13th.

CAWG Working for You – CAWG President Randy Traxler Testifies for Colorado Senate Bill 12-59

Bloomberg News: Farmers plan biggest crops since 1984, led by corn

CattleNetwork.com: Where have all the wheat acres gone?

NPR: America’s Agricultural Success: A Well-Kept Secret?

The Packer.com:  USDA budget: Exports in, pathogen testing out

Congressman Cory Gardner (R, Colo. – 4th) held forums in eastern Colorado this week to hear feedback on the 2012 Farm Bill and other farm policy. CAWG President Randy Traxler of Otis gave the following statement at the meeting in Yuma on February 20:

Congressman Gardner, thank you for holding this roundtable and for the opportunity for me to present a statement on behalf of the Colorado Association of Wheat Growers (CAWG). Wheat is an important crop to Colorado agricultural producers and the state’s diversified economy. Almost all of Colorado’s wheat production is in the Fourth Congressional District. Here are the 10 year (2001-10) averages for Colorado all-wheat: 2,227,500 acres planted; 2,095,600 acres harvested; 32.1 bushel per acre yield; 68,938,000 bushels of production; and $313,826,300 total value of production. However, there has been great variability in production and volatility of prices over the past ten years. Production has ranged from a low of 38,100,000 bushels in 2002 due to a severe drought to a high of 108,234,000 bushels. Season average prices have ranged from a low of $2.72 per bushel in the 2001-02 marketing year to an all-time record high of $6.62 per bushel in the 2008-09 marketing year. This clearly illustrates the need to preserve the current safety net for Colorado wheat farmers. CAWG has adopted the following:

The CAWG’s highest priority for federal investment in agriculture programs is the portion of crop insurance premiums subsidized by the federal government and therefore, CAWG strongly opposes any reduction to the baseline available to the federal crop insurance program; CAWG believes a phase-down of the direct payment program over as few as three years would allow farmers, their landlords and lenders and rural economies to adjust; CAWG supports a safety net program based on revenue to help fill the gap between that 65 or 70 percent of revenue risk that is protected through the federal crop insurance program and buy-up coverage options that are prioritized through the following trigger mechanisms: first priority – on-farm trigger and by-commodity revenue; second priority – on-farm trigger and whole farm revenue; third priority – county trigger and by-commodity revenue; and fourth priority – county trigger and whole-farm revenue; and CAWG also believes that maintaining a functioning farm safety net should be prioritized over private-land conservation in general that can be achieved by consolidating and streamlining these programs.

The U.S. agricultural safety net helps protect a viable and prosperous rural economy. Totaling only ¼ of 1 percent of the federal budget this relatively small but wise investment in rural America is worth protecting for the benefit of farmers and consumers. The Farm Bill must protect the federal crop insurance program to allow farmers to customize the risk protection they need. The Farm Bill must preserve the current safety net provided by the commodity title of the 2008 Farm Bill that provides a stable and abundant food supply for all Americans. Congress must not compromise one of the strongest sectors of the American economy, the agriculture sector, by singling it out for draconian cuts. The Farm Bill must continue investing in USDA foreign market development programs. Fifty percent (50%) of U.S. wheat production is exported and 80 percent of Colorado wheat production is exported. A study of wheat promotion activities shows producer dollars, combined with Market Access Program (MAP) and Foreign Market Development (FMD), return $115 to the economy for every $1 spent. The Farm Bill must preserve the long-term investment of federal dollars into the public wheat research system managed by the USDA-Agricultural Research Service (ARS) and USDA-National Institute of Food and Agriculture (NIFA). The utilization of advanced breeding technologies by both public and private sector scientists relies on work supported by USDA. It should also allow the partnership with Colorado and U.S. wheat growers, who are doing their part with checkoff dollars to support public research programs.

Finally, we request that you lead a bi-partisan effort to initiate a joint letter from the Colorado Congressional delegation requesting President Obama to include funding in the executive budget through USDA/CSREES to Colorado State University (CSU) for genetic enhancement of Russian wheat aphid resistance, stress tolerance, and quality enhancement of wheat and an increase in base funding for the USDA-ARS Central Great Plains Research Station at Akron, CO for an alternative plant breeding program focusing on biofuel and oilseed and sorghum crops.

Thanks again for this opportunity to present this statement and for your support of Colorado wheat farmers.

Good afternoon Madame Chair and members of the Committee. My name is Randy Traxler. I am a farmer from Otis, Colorado and President of the Colorado Association of Wheat Growers. Thank you for the opportunity to testify today.

I am here today to lend support to Senate Bill 59. CAWG supports increasing the weight limit from 10,001 lbs to 26,001 lbs for a combination pickup and trailer for compliance with commercial vehicle standards.

Farmers today are using larger, heavier pickups and trailers in their operations. These vehicles, classified anywhere from 3/4 ton to one and 1/2 tons are now being powered with diesel, and big block engines that are designed to pull fifth wheel trailers, and are assembled with stouter frames to accommodate increased loads. This increases the efficiency of our operations as we can haul more in fewer vehicle trips.

Brakes and rotors on these larger, heavier vehicles and trailers are engineered to maintain safety standards. Even with these larger vehicle weights fuel economy is improving with engineering improvements. As we are continually asked to meet more stringent CAFE standards, engines are becoming more sophisticated, which often times increases the motor vehicle weight.

Most large pickups today are extended cab or four door to allow more workers to go to job sites, construction zones, farm fields, and ranch facilities. I have a 1976 Ford F-250 as my work truck. It is bare bones. It probably weighs 4,500 lbs and I use it to get 50 pound bags of seed, haul a chemical shuttle, and to pull a nurse tank as well as to take tools to the field.

This bill will not affect me. But for larger producers, this bill will help improve efficiency, helping keep costs of production down.
There have been a lot changes in the last 40 years in the design and safety standards for pickup trucks. On behalf of the Colorado Association of Wheat Growers, I would ask the committee to support Senate Bill 59 as an update to the regulations on commercial vehicle weight to keep pace with trends in vehicle manufacturing and demand from industries such as ours.

Thank you Madame Chair. I’d be happy to answer any questions the Committee may have.

Jerry Cooksey, who is a past president of CAWG, testified before the Colorado House Agriculture, Livestock, and Natural Resources Committee in support of HB-1037, “Classify Certain Ag Products Wholesale Sales.” The bill classifies the sales of certain agricultural items as wholesale sales rather than retail sales.The bill passed the Ag Committee, passed the House Committee on Finance, and was  referred unamended to Appropriations. http://bit.ly/wIVYzy

Colorado Department of Agriculture: Colorado wheat is abundant and tasty http://1.usa.gov/yXiljJ

US Labor Department to re-propose ‘parental exemption’ of child labor in agriculture rule http://1.usa.gov/yWCAdB CAWG and NAWG will continue to monitor these proposed regulations.

Bloomberg: Era of Falling Food Prices Comes to End as World Population Adds 2 Billion http://bloom.bg/xpMMlc

USDA Announces CRP General Sign-up http://bit.ly/yrcwGY

From Feb 6: BARN Radio Network interview: US Wheat Associates Vice-President of Overseas Operations Vince Peterson discussing several topics pertinent to US Wheat Producers including US Wheat Associates & a Colorado farmer’s Asia Trip (Steve Beedy of Genoa, Colo. is on this trip), World Supply & Demand for US wheat, Russia potentially re-instituting some version of their grain embargo, implications for U.S. wheat farmers on the removal of the Canadian Wheat Board, Iraq specifying NO bids for U.S. origin wheat. http://bit.ly/yTkivh

The bill classifies the sales of certain agricultural items as wholesale sales rather than retail sales. The effect of such a classification is that the following sales will not be subject to sales tax:

• Sales of agricultural compounds to be consumed by,administered to, or otherwise used in caring for livestock;
• Sales of semen for agricultural or ranching purposes; and
• Sales of pesticides that are registered by the commissioner of agriculture for use in the production of agricultural and livestock products.

The bill passed the Ag Committee, passed the House Committee on Finance, and was  referred unamended to Appropriations.

Jerry Cooksey’s testimony in favor of the bill:

Mr. Chairman, Ladies and gentlemen of the committee,

My name is Jerry Cooksey, and I am Past President of the Colorado Association of Wheat Growers. I come to you this afternoon on behalf of Wheat producers across Colorado.  I am involved in a family farm and ranch operation spanning three counties: Weld, Morgan and Adams counties. We grow wheat, corn, sunflowers, hay, pumpkins, watermelons and have a small cow calf operation.

In Colorado, wheat is produced on an average of 2 million acres. The production in 2011 was 78 million bushels bringing $552 million directly into the Colorado economy.  The total input into our state economy, in both rural and urban Colorado, would be $3 Billion.

I am here today in support of House Bill 1037. Ag Compounds, specifically herbicides, pesticides and fungicides, are vital to the business of farming. They are what most farmers call a necessity or raw input.  Producers buy these inputs as part of a process.  Not a process in the sense of making a car or putting pieces together to make a computer.  Rather, the process is much longer and subject to a lot greater uncertainty.  But in the grand scheme of things, is the most essential production or “manufacturing” process of all – the process of producing food and fiber for the people of Colorado, the United States, and ever increasingly, people around the world, as 80% of the wheat produced in Colorado is exported.

Farms and Ranches operate a little different than most businesses in that any increase in costs, such as a sales tax, directly decreases our profits.  Our finished product is a commodity, and as such, is sold for a market price. Farmers are unable to pass increased costs through to the consumers.

In 2010, the fiscal note associated with House Bill 1195 estimated the elimination of the tax exemption on ag compounds would raise over $4.6 million for the state’s struggling economy.

However, what you heard the last two years during debate was that the elimination of the tax exemption on agricultural compounds would have far greater impacts on the rural economy than the amount the state would have received in sales tax collections.

We now know the actual dollars the state realized fell short of the 2010 estimate associated with House Bill 1195.  Largely because the suspension of the sales tax on agricultural compounds failed to take into account the larger picture.

Last year, we supported House Bill 1005 which reinstated the tax exemption on agricultural compounds.  Multiple entities came before you and told you the amount of revenue that was lost as a result of the elimination of the tax exemption on these inputs.

We are here, again, this year, debating the fundamental issue of whether or not agricultural compounds should be treated like other manufacturing inputs and whether or not they should be taxed as wholesale sales rather than retail sales.

As I mentioned before, the inputs we purchase to grow and produce food and fiber, are the essential components of what we sell, untaxed, as a raw commodity to be further processed into a final, consumable product further down the production line.

After the passage of house Bill 1195 last in 2010, our mid-sized farm, paid $1900 of state sales tax. In 2011, our farm paid $ 3300 in state tax prior to July 1, and saved $ 2700 for the final 6 months of the year after HB 1005 was passed. As I said before, farmers and wheat producers are price takers and can not pass on these additional costs.  Our hands are tied.

The passage of House Bill 1037 will, as a policy matter, declare that agricultural compounds are essential inputs in a process.  A process where the final product isn’t taxed until further down the production line, and in the case of Colorado, isn’t even taxed at the grocery store because we have deemed that the necessity of being able to afford groceries for your family, is more important than the amount of money the state, or a county, or a municipality will take in through the imposition of the sales tax on these products.

Agriculture is the back-bone of our state.  You heard from the Governor in his State of the State Address that agriculture is leading the state out of the great recession.  This bill, and the policy statement that it makes, will provide agricultural producers additional certainty as we continue to ensure that people around the world are fed, and that we continue to rebuild and strengthen our rural economies.

We ask that you support House Bill 1037.  Thank you Mr. Chairman.  I’d be happy to take any questions the committee may have.

Agriculture.com: Wheat finding a bottom? http://bit.ly/Abts6w

The Hand That Feeds U.S.: February Follies — the Budget and Agriculture http://bit.ly/xWhiIm

Ag Journal: Will 2012 yield a new farm bill? (quote from CAWG President Randy Traxler) http://bit.ly/AeRMuH

Commodity Groups’ (including NAWG) Statement re: Farm Bill 2012 http://bit.ly/A4Y9aN

U.S. Wheat Associates’ annual report http://www.uswheat.org/success. Colorado is a member of U.S. Wheat Associates for export promotion.

Colorado Wheat News Release: Wheat Rail Transportation Workgroup Created in Colorado http://bit.ly/xxrz6b

Denver Post: Bennet: Colorado farmers OK with subsidy cuts if U.S.-backed insurance provided http://bit.ly/zjUh8w

Ag Journal Online: Wheat Potential Has Price Downside (interview w/Sara Olsen of Yuma, CWAC Vice President.) http://bit.ly/zrKhWv

Wheat Prices Fall as Winter Wheat Plantings Rise http://abcn.ws/xkaaZt

A new benefit for CAWG members is Dan Maltby’s weekly wheat marketing wire. Maltby is well known for his visits to the Colorado Ag Classic to speak about grain marketing. His humorous but honest evaluations of the market have earned him many fans among Colorado wheat farmers. To receive Dan’s weekly email wire, please call the office at 970-449-6994, or email Glenda Mostek at gmostek@coloradowheat.org. The wire comes out every week, usually on Monday, and will be available only by email. You must be a paid-up CAWG member or sponsor to receive it.

“Working together will allow us to learn about the strengths and concerns of everyone concerned with rail shipping.  CWAC and CAWG want to ensure the availability of reliable and reasonable transportation options for Colorado wheat farmers, and this workgroup will lead to greater mutual understanding with and of our marketing partners.” said Dan Anderson, Haxtun, CWAC Past President, “We are glad UP wants to work together to further their understanding and knowledge of the Colorado wheat industry and its marketing partners and embrace the concept of working together to resolve differences.”

Eighty percent of Colorado’s winter wheat production typically moves by rail to Gulf of Mexico and Pacific Northwest ports for export to 67 different countries.

”This is an excellent example of our effort to reach out to all who may use rail to transport their goods. We are pleased to be collaborating with Colorado wheat producers on how we move their product by rail to its varied destinations,” said Paul Hammes, Union Pacific’s vice president and general manager – Agriculture.

CWAC and CAWG are the primary trade organizations representing Colorado wheat farmers, working together to build marketing partners to develop stronger domestic and export markets for Colorado wheat in the future.

Members of Senator Michael Bennet’s legislative staff from his Washington, D.C. and Colorado offices are traveling throughout Eastern Colorado on a three-day listening tour January 9 – 11, 2012 to hear ideas from producers and others in the agricultural community on the Farm Bill and keeping Colorado agriculture competitive.  Grant Colvin, Agricultural Legislative Aide, Becca Montgomery, State Policy Director and Dwight Gardner, Regional Director for Southern Colorado – Eastern Plains will be attending these meetings.  The Producers Meetings are the ones best suited for attendance by CAWG members and wheat farmers.

2012 FARM BILL EASTERN PLAINS TOUR

Agricultural Competitiveness in Colorado Tour

Members of Senator Michael Bennet’s legislative staff from his Washington, D.C. and Colorado offices are traveling throughout Eastern Colorado on a four-day listening tour to hear ideas from producers and others in the agricultural community.

Meetings will include Competitive Colorado Agriculture Roundtables, as well as producer meetings focused on the Farm Bill. The Competitive Colorado Agriculture Roundtables will be a discussion about what we can do at the federal level to make sure Colorado Agriculture remains competitive nationally and internationally.  Topics will include government regulation, creating strong rural communities, and trade.

If you are a member of the Colorado agricultural community and would like to participate in these meetings, we welcome your attendance.

Please RSVP to Regional Director James Thompson for the Wray and Greeley meetings:

James_Thompson@bennet.senate.gov or 970-224-2200

Please RSVP to Regional Director Dwight Gardner for all other meetings:

Dwight_Gardner@bennet.senate.gov or 719-542-7550

Eastern Plains Tour

January 9 – Wray

Grant Colvin, Agricultural Legislative Aide
Becca Montgomery, State Policy Director
James Thompson, Regional Director for Northern Colorado – Eastern Plains

Wray Public Library, 301 W. 7^th St., Wray, CO

9:00 am – 11:00 am                 Competitive Colorado Agriculture Roundtable

12:00 pm – 2:00 pm                Agricultural Producers Meeting – Farm Bill

January 10 – Burlington and Eads

Grant Colvin, Agricultural Legislative Aide
Becca Montgomery, State Policy Director
Dwight Gardner, Regional Director for Southern Colorado – Eastern Plains

Burlington Community Center, 340 S. 14^th St. Burlington, CO

8:00 am – 10:00 am                 Competitive Colorado Agriculture Roundtable

10:30 am – 12:00 pm              Agricultural Producers Meeting – Farm Bill

Kiowa County Courthouse, 1305 Goff St., Eads, CO

2:30 pm – 4:00 pm                  Kiowa County Commissioners & Grain Producers Meeting

January 11 – La Junta and Limon

Grant Colvin, Agricultural Legislative Aide
Becca Montgomery, State Policy Director
Dwight Gardner, Regional Director for Southern Colorado – Eastern Plains

Ed Stafford Theatre, Otero Junior College, 1802 Colorado Ave., La Junta, CO

8:00 am – 10:00 am                 Competitive Colorado Agriculture Roundtable

10:30 am – 12:00am                Agricultural Producers Meeting – Farm Bill

Lincoln County Economic Development, 790 Main St., Limon

2:00 pm – 3:00 pm                  Competitive Colorado Agriculture Roundtable

January 12 – Greeley

Grant Colvin, Agricultural Legislative Aide
Becca Montgomery, State Policy Director
James Thompson, Regional Director for Northern Colorado – Eastern Plains

Pawnee Conference Room, Weld County Admin Building, 1150 O Street, Greeley

10:30 am – 11:30 am               Dairy Producers Meeting

11:30 am – 1:30 pm                Agricultural Producers Meeting – Farm Bill

3:00 pm – 5:00 pm                  Competitive Colorado Agriculture Roundtable

Information on 2012 CAWG scholarships for high school seniors now available!

Members of Senator Michael Bennet’s legislative staff from his Washington, D.C. and Colorado offices are traveling throughout Eastern Colorado on a three-day listening tour January 9 – 11, 2012 to hear ideas from producers and others in the agricultural community on the Farm Bill and keeping Colorado agriculture competitive.  Grant Colvin, Agricultural Legislative Aide, Becca Montgomery, State Policy Director and Dwight Gardner, Regional Director for Southern Colorado – Eastern Plains will be attending these meetings.  The Producers Meetings are the ones best suited for attendance by CAWG members and wheat farmers.

Which Wheats Make the Best Whole-Grain Cookie Doughs?

Boulder Camera: Boulder County agrees to allow some GMOs on public land

Are you hosting New Year’s Day Brunch? You might want to consider a breakfast casserole containing, what else?, BREAD! Here is one to try that you can even do in the Crockpot or Slow Cooker overnight!

Start out the New Year with one of these “Top 10 Breakfast Recipes” – many of them contain wheat! Doughnuts, Blueberry Sour Cream Pancakes, Baked Apple French Toast, and more!

United States agriculture is notorious for its “golden eras.” In the 1910s and the 1970s, strong global demand and rising exports boosted agricultural commodity prices and farm incomes. These golden eras, however, were soon tarnished as economic and financial market conditions changed. Today, U.S. agriculture appears to be in the midst of another golden era. Robust export activity, strong bio-fuels demand and low interest rates have spurred another farm income and farmland value boom. Despite the vast similarities to past booms, subtle differences suggest that this time could be different.

Is this farm boom different? The latest issue of the “Main Street Economist” explores the foundations of the current and past farm booms. Read the complete article.

For additional research on the agricultural economy from the Federal Reserve Bank of Kansas City, visit http://www.kansascityfed.org/research/regionaleconomy/agriculture.cfm?ealert=mse1229.

For Your Holiday Baking: Yeast breads from around the world

Wheat Products – Off the Shelf: America’s Heartland  – Types of bread

Wheat Market Drops @uswheatassoc Director of Policy Shannon Schlecht talks world wheat supply and demand in North Dakota.

Whole Wheat Pie Crust!

ScienceDaily:  Major Step Forward Towards Drought Tolerance in Crops