Weekly Update for
July 23

This week, the U.S. Environmental Protection Agency (EPA) announced the members appointed to the Farm, Ranch, and Rural Communities Federal Advisory Committee (FRRCC) including NAWG Treasurer and Kansas farmer Chris Tanner. The FRRCC provides independent policy advice and recommendations to the EPA Administrator on crucial environmental issues for farmers and rural America. “Congratulations to Chris Tanner on this well-deserved appointment. NAWG is pleased to see wheat farmers have a seat at the table as these critical issues are addressed. Chris is exceptionally well qualified for this role, and his expertise and insights will be instrumental in helping EPA develop practical, commonsense solutions that strengthen rural communities while supporting productive and sustainable farming operations,” said Jamie Kress, NAWG President. 

On Monday, NAWG submitted comments on the EPA's Draft Strategy to Protect Endangered Species from Fungicides. In the comments, NAWG addressed the important role fungicides play in growing growing wheat and expressed concerns about the strategy, including: the significant operational and economic burdens it could impose on farmers; the potential impact of the spray drift buffer requirements; the failure to distinguish the risk profile of fungicide-treated seed from higher-exposure pesticide application methods; the insufficient distinction between theoretical exposure and real-world field conditions; the unnecessary complexity created through additional mitigation requirements on top of the existing system; assumptions regarding in-field species presence and exposure that do not adequately reflect the realities of modern wheat farming; and reliance on assumptions that do not fully account for the characteristics of fungicide use or the agronomic conditions present on wheat farms.

NAWG joined a coalition of over 40 organizations that sent a letter urging the House of Representatives to support at least $12 billion in agricultural relief as part of the House budget reconciliation package. The letter highlights the financial challenges farmers face, including low commodity prices, high production and labor costs, shrinking margins, and rising input costs driven by recent volatility in fertilizer and fuel prices. The coalition argues that additional assistance is needed to help producers recover from continued economic losses and secure access to the credit necessary to finance next year's crops, while building on recent farm assistance programs and strengthening the agricultural safety net.

Chairman Boozman remains optimistic that the Senate Agriculture Committee will advance a farm bill before the August recess, even as Senator Mitch McConnell remains absent while recovering from a health issue. Boozman emphasized the importance of passing a farm bill quickly to provide certainty for farmers, highlighting updated commodity loan limits as a key priority. The proposal would increase loan limits that have not been revised since the 2018 Farm Bill, helping producers better finance equipment and other operating expenses amid rising costs.

Global wheat prices climbed to a two-year high as disruptions to Black Sea shipping continue to constrain Russian exports. Following Ukrainian drone attacks in the Sea of Azov, Russia closed the Kerch Strait, creating logistical bottlenecks that have slowed grain shipments and reduced July wheat exports to their lowest level in nine years. While tighter export supplies have supported global wheat prices, Russian farmers continue to face lower domestic prices due to export restrictions, transportation challenges, and a surplus of stored grain.

On Wednesday, U.S. wheat futures closed above $7 per bushel for the first time since late 2023, driven by tension in the Black Sea and adverse weather in key growing regions. Ongoing Russian and Ukrainian attacks have heightened concerns about grain exports from the Black Sea, while Russia's July wheat exports are projected to fall to their lowest level since 2017 due to logistical constraints. Additional support came from poor crop prospects in France following a heat wave and expectations that extreme heat in the U.S. Corn Belt could reduce crop quality and production.

Anne Osborne and Brian Walker represented NWF on the Wheat Quality Council's Spring Wheat Tour in North Dakota this week, driving one of the designated survey routes to evaluate crop conditions. The annual tour is an important industry event that provides an independent assessment of the spring wheat crop, offering valuable insights that help producers, grain buyers, millers, exporters, and market participants gauge yield potential and overall crop quality. The hard red spring wheat crop is generally in good condition, although dry weather remains a concern across parts of the region.