Weekly Update for
June 15

NAWG CEO, Chandler Goule, joined the All Ag News podcast. Chandler discussed winter wheat production concerns, particularly regarding the rising rates of abandonment, especially in Kansas, where record rates of winter wheat abandonment are at an all-time high. Chandler touched on the impacts the drought has been having on winter wheat states and how the USDA disaster relief programs were a timely announcement for growers who are seeing the negative impacts of the severe drought. Chandler related this to NAWG’s number one priority in the Farm Bill; protecting and enhancing the Federal Crop Insurance Program.

On Tuesday, NAWG staff participated in the 2023 Pesticide Policy Coalition (PPC) Farm Tour: ESA Policy in the Field. As part of the tour, the group visited the FMC’s Stine Research Center in Newark, Delaware, where they were welcomed and learned more about the company’s global research and development efforts. In particular, FMC highlighted its development pipeline, application technology, and stewardship goals. Following the Stein Research Center visit, the group returned to the bus and went down to Rock Hall, Maryland. There we visited Harborview Farms, where the owner and manager, Trey Hill, gave us a tour and discussed their commitment to producing grain in a responsible and environmentally friendly manner. Together, the team is pioneering new techniques to influence the ag industry as a whole, instilling a mix of traditional practice with innovation and creativity to uncover novel solutions that move the industry forward. At Harborview Farms, the National Agricultural Aviation Association provided an aerial applicator demonstration using cutting-edge equipment, technology, and techniques to ensure safe, efficacious applications to raise a healthy crop. Included on the tour were ag and industry stakeholders, representatives from the EPA’s Office of Pesticide Programs, as well as folks from the University of Delaware and state departments of ag from Maryland and Delaware.

Farm Policy Facts published an article, “All Eyes on Farm Bill Following Debt Ceiling Deal”, that details the added complexity that has arisen in Farm Bill negotiations ever since the Debt Ceiling Deal passed due to the fact that all non-defense spending is now more tightly managed than ever before. The article reiterates that there is no more vital service to producers than the Farm Safety Net and that these services must be strengthened to protect producers’ ability to feed a growing world. Numerous groups have spoken out in support of this, including USA Rice, National Sorghum Producers, American Sugarcane League, National Cotton Council, and NAWG. NAWG President Brent Cheyne stated that “farming is a risky business requiring a strong safety net. Wheat farmers rely on the certainty of the crop insurance program. In turn, the American people can depend on American farmers, who are able to continue to withstand natural disasters and produce the most stable and affordable food supply in the world.”

On Wednesday, June 14, the Full House Appropriations Committee released a bill relating to funding for USDA and FDA for the fiscal year 2024. The total allocation amount proposed is $17.1 billion along with $8.15 billion from funds reallocated into these programs – for a total of $25.3 billion in proposed discretionary spending. This amount is $532 million lower than the fiscal year 2023 and over $3 billion below the President’s allocation request. One of NAWG's annual policy priorities is protecting crop insurance as part of the annual budget and appropriations process, and this appropriations bill provided total funding of the federal cost share of the program. In March, NAWG submitted several wheat research-related appropriations requests, which were included in the bill reported out of the committee yesterday. Specifically, the committee continued to support the U.S. Wheat and Barley Scab Initiative (USWBSI), Small Grains Genomics Initiative, and research into soft wheat falling numbers test research. Additionally, the committee provided $1 million in new funding for the Wheat Resiliency Initiative, which – if enacted – would support research into Wheat Stem Sawfly and Hessian Fly. NAWG’s Vice President of Policy and Communications, Jake Westlin stated “We are glad to see a number of our research priorities be included in the House Ag Appropriations bill, including funding for the Wheat Resiliency Initiative members of the National Wheat Improvement Committee were advocating for in March. The WRI plays an important role in providing research into new and emerging disease and pest challenges, including Wheat Stem Sawfly and Hessian Fly, and these resources will help build capacity to address the greatest future threats to wheat production.” Also included within the bill is the provision of $3.4 million for the Office of Pest Management Policy (OPMP) to use to draft and implement policy relating to pest management for the benefit of producers. The House ag appropriations bill was passed out of the committee on a 34 to 27 vote and now awaits consideration by the full House of Representatives. The Senate is currently working on its version of an FY 2023 ag appropriations bill.

The United States Department of Agriculture’s Farm Service Agency (FSA) is now accepting nominations for producers to serve on county committees are representatives of their counties to FSA. All nominations to these local county committees must be postmarked or received by August 1, 2023. FSA Administrator, Zach Ducheneaux, stated that “Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency, and they serve as the eyes and ears for the producers who elected them.” These elections will occur in Local Administrative Areas (LAA) which can be found using the new GIS tool available from FSA that allows producers to pinpoint where the nearest LAA is. Nominees must sign a FSA-699A nomination form, participate or cooperate in a USDA program, and reside in an LAA that is up for an election this year in order to be considered a viable candidate for the committee. Currently, there are more than 7,700 members who serve on committees for three-year terms to help serve their fellow producers. There are also unique provisions for urban agriculture, due to the provisions of the 2018 Farm Bill – so there are opportunities to serve in that area of production as well should you reside in a more urban area. The election ballots required to vote for a new committee member will become available November 6, 2023.

The United States Department of Agriculture (USDA) has formally made the agreement to enroll over 1 million acres of land in the Conservation Reserve Program for the following year. The USDA has enrolled 1.07 million acres out of the total 1.19 million acres that landowners offered up under the general signup rules. The selected acres were “graded” on a sliding environmental scale out of 545 with a score of 184 being deemed the minimum score to determine eligibility for enrollment. The press release has stated that the average annual payment rate for the land will be $64 per acre. The Farm Service Agency (FSA) has stated that they firmly expect that enrollment in the program will be on the rise in the future as the program is now actively accepting acreage into the grassland portion of the program, in addition to the continuous enrollment the program utilizes for smaller, more environmentally sensitive tracts of land. The last day to apply for the grasslands portion of the program was May 26, so complete numbers of accepted acreage and the minimum score on the sliding scale – along with payment per acre on grassland tracts – can be expected to occur sometime in the relatively near future.

The United States Department of Agriculture has recently announced that they will be distributing roughly $714 million for broadband connectivity projects through the ReConnect program. This will be the fourth round of the project and is a provision provided under the 2021 infrastructure law that offers up to $30 a month in discounts for internet in qualifying areas – rural areas being key to this program. Secretary of Agriculture Tom Vilsack has stated that this program is essential in connecting young people in rural areas to the economic opportunity available to them there. So far, the program has invested a staggering $3.86 billion to get people connected to the larger broadband network and rural areas seem to be an area of particular importance as we work into the fourth round of the program.

The House Ag Committee’s Subcommittee on Markets, Digital Assets, and Rural Development met on Tuesday, June 12, to hold a hearing entitled “Stakeholder Perspectives on USDA’s Rural Development Programs” to discuss one of the key aspects of the United States Department of Agriculture rural development. Rural development is a key aspect of the Farm Bill, and in recent years the majority of the discussions relating to rural development in the farm bill have related to the broadband sections of rural development policies due to the necessity of citizens to have access to quality broadband to both increase quality of life and ease of business. However, for this particular hearing, Subcommittee Chair Dusty Johnson (R-SD-AL) declared that the discussions within the hearing should focus on other clauses within rural development, such as water, infrastructure, and energy. This hearing is important, especially now, since the 2010-2020 period is one in which we say significant decreases in rural populations due to a lack of competitively paying jobs in these areas. One of the key themes of this conversation was modernization, particularly in rural communities to stable electricity, water, and wastewater management. The discussions included information on rural loans, a critical piece of rural infrastructure, and the possibilities for addressing the rising issues of rural communities and food deserts. Future discussions are slated to include broadband, but the modernization of rural communities should remain at the forefront of these conversations.

On June 9, the World Agricultural Supply and Demand Estimates were released. This report details the specifics relating to the total supply of specific agricultural goods as it relates to the overall global demand for the same commodities. The report shows that the outlook for this month’s wheat is for larger supplies, a unchanged level of both domestic use and exports, and higher wheat stocks. Hard Red Winter is projected to be up six million from last month – offsetting the reductions in Soft Red Winter and White Winter. The all-wheat yield is currently 44.9 bushels per acre – which is up by 0.2 compared to last month, but still lower than we were last year at this time. Total use is currently projected to be at 562 million bushels with the 2023-2024 average farm price falling by $0.30 to $7.70 per bushel. Globally, consumption is rising by 4.4 million tons to 796.1 million total – though it currently seems that China’s recent heavy rains will drastically increase the total amount of stock exported. For more details and information relating to the WASDE – the link below contains the report in its entirety.

In one of the larger news stories to happen in agriculture outside of the Farm Bill, the New York state legislature voted on and passed a law that – if signed into law – would prohibit neonicotinoid pesticides and seeds. The bill has not been signed into law, so a veto could still occur. The potential ramifications of the bill’s passage could be severe, as this is the first lawfully prohibiting neonicotinoids from making it to the state level, and should it pass, it would set a damaging precedent that other states could potentially follow. The purpose of treated seed has always been for the sole reason and purpose of reducing the total amount of pesticides used in the production process – so the passage of this legislation could have severe and unintended ecological consequences as well, since producers will have to look to increased amounts of other pesticides to fill the role that the neonicotinoids once filled. Following the passage of the bill, the New York Farm Bureau President, David Fisher, stated, “Seeds treated with neonicotinoids were designed to be safer and reduce pesticide use. While we share the same goal as supporters of the legislation, to always look for ways to reduce our environmental footprint, we believe the end result of this ban will force farms to revert back to spraying greater amounts of older pesticides as well as increasing tillage to combat harmful pests, releasing more carbon in the soil and increasing the likelihood of soil erosion. This will only create additional environmental and climate issues for the state, moving us backward.” This group has called upon producers within the state to rally together to work on convincing New York Governor Hochul to “do the right thing” and veto the bill.

Enter the National Wheat Yield Contest! The deadline to enter spring wheat is August 1. If you are one of the 24 National Winners, you will get a trip to the Commodity Classic in Houston, TX, next February. Also, Early Spring Wheat entries are eligible for a drawing for a free one-year Business Plan subscription to Bushel Farm (formerly FarmLogs)! This software gives farmers a ground-level and big-picture view of their farms’ operational and financial performance. Unlike multiple spreadsheets or messy notebooks, the Bushel Farm mobile and desktop app organize an array of farm records - field maps, rainfall and satellite imagery, equipment, activities and inputs, grain sales and inventories, land agreements, work orders, and more. Powerful automation within the tool transforms farm records into a real-time profit and loss statement and generates valuable insights that farmers can use to make decisions on their own or share with their grain buyers, agronomists, bankers, insurance providers, and other trusted farm partners. Get your entries in to be eligible for this fantastic prize! Enter by July 1 to be in the drawing.

The Northern Crop Institute (NCI) is hosting a Minneapolis Port Tour July 12-13, 2023. This will be a phenomenal opportunity for those involved in agriculture to tour the grain export facilities in Minneapolis. The tour is available for grain elevator staff, farmers, and industry professionals looking to learn more about exported goods. Participants will have the unique opportunity to go through the BNSF Hump Yard, meet with international trading companies, and to see the sights of Minneapolis. The registration fee is $750.00 (if transportation from Fargo is included) or $650.00 (meet in Minneapolis) and the tour fee, transportation, meals, and lodging are all included in the price(s)

Applications for the Bayer Leadership are due on July 1, 2023. The first session will occur on November 9-10 in Cincinnati, OH, and the second will occur on January 21-23 in Washington, D.C.

We are a 501(c)3, and our mission is research, outreach, and education. Our funding depends on generous partners, and only 40 percent of our budget comes from investment income so that future generations will have the resources to support wheat for many years to come. If you would like to join us on a specific project or general donation, please contact Anne Osborne (aosborne@wheatworld.org). Our Gifts of Grain program is an easy way for farmers to get involved.