DECEMBER 2018 RECAPPING THE 2018 TRI-STATE GRAIN … · palouse conservation district palouse empire junior market show palouse empire rodeo association paws scholarship foundation

ALSO IN THIS ISSUE:An update on the battle against falling numbers

USW’s oldest, newest employeeCommissioner bids WGC adieu

Wheat quality lab turns 70The history of Egypt, Wash.

RECAPPING THE 2018 TRI-STATE

GRAIN GROWERS CONVENTION

HEAT IFE W LDECEMBER 2018

The official publication of the Washington Association of Wheat Growers

Washington Association of Wheat Growers109 East First Avenue, Ritzville, WA 99169

Address Service Requested

Exploring the other aspects of farmingBy Jeffrey Shawver

As I prepare to take over as president of the Washington Association of Wheat Growers (WAWG), I wanted to intro-duce myself to those farmers whom I haven’t been fortu-nate enough yet to meet.

I live and farm in Connell, Wash., with my wife, Andrea, and our four children: Giselle, Aubriel, Noelle and Weston. Although I was raised on the west side of the state, my fam-

ily has farming ties on the east side—both of my parents are from here originally, and my wife’s family, the Grassls, has deep roots in Franklin County. I became a wheat farmer about 10 years ago when my father-in-law extended an invitation to his four sons-in-law to teach them the farming ropes so he could retire some day. After working as an hourly employee for my father-in-law for a few years, I began leasing nearby land and building up my own operation.

From the beginning, I enjoyed being a farmer and raising a crop, but I had this feeling that I was missing something. I knew there had to be more to farming than just plowing dirt, seeding and spraying; there had to be a backbone that supported the business and conservation side of farming, as well as all the politics surround-ing agriculture. That’s how I got involved in WAWG.

I began attending some of the monthly WAWG board meetings and got to know the people that were advocating for our profession. To gain some experience, I first went through the chairs in the Franklin County wheat growers group and then moved into the WAWG leadership chairs. I knew I had to get involved to under-stand the political side of farming. In my mind, politics are almost as important in agriculture as taking care of the ground is.

One thing I’ve learned is if you aren’t involved, you just don’t know enough. There are a lot of younger farmers who are taking over their family’s farm that don’t want to look beyond the operation. Instead, they rely on others to tell them what’s going on instead of educating themselves. That might have worked in the past, but today’s agriculture looks far different than what our grandparents and even parents faced, in politics, in technology and even in the farm programs available to us. For example, I used a Farm Service Agency program for beginning farmers that loaned me money to help me start leasing ground. You can’t take advantage of those types of programs if you don’t know about them.

As I write this, we are working on getting the new farm bill approved. Did you know that the programs that underpin our export markets are in jeopardy because until there is a farm bill, they have no funding? Did you know that Congress is talking about combining programs that help fund the purchase and implementation of conservation equipment and practices? If some lawmakers get their way and include a mandatory base acre reassignment in the farm bill, do you know how that will affect your operation? Once again, if you aren’t involved, you don’t know. And if you don’t know, you can only react. I want to see what’s com-ing down the pipe so I can work to change it or at least be better prepared when it hits. That’s why I’m involved in WAWG. If you feel the same way, jump in. Start by getting involved in your county growers group and think about attending the monthly board meetings. We’d love to see you there.

Merry Christmas and a happy new year!

President’s Perspective

Cover photo: Thanks to the hard work of staff and leaders of the Washington, Oregon and Idaho grain organizations, this year’s convention was a success. See more convention photos on page 24. All photos are Shutterstock images or taken by Wheat Life staff unless otherwise noted.

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 re-printed without permission.

Advertising in Wheat Life does not indicate en-dorsement of an organization, product or political candidate by WAWG.

HEAT IFE W L

The official publication of

109 East First AvenueRitzville, WA 99169-2394

(509) 659-0610 • (877) 740-2666

WASHINGTON ASSOCIATION OFWHEAT GROWERS

Volume 61 • Number 11www.wheatlife.org

WAWG MEMBERSHIP(509) 659-0610 • (877) 740-2666$125 per year

EDITORTrista Crossley • [email protected](435) 260-8888

AD SALES MANAGERKevin Gaffney • [email protected](509) 235-2715

GRAPHIC DESIGNDevin Taylor • Trista Crossley

AD BILLINGMichelle Hennings • [email protected](509) 659-0610 • (877) 740-2666

CIRCULATIONAddress changes, extra copies, subscriptionsChauna Carlson • [email protected](509) 659-0610 • (877) 740-2666Subscriptions are $50 per year

WAWG EXECUTIVE DIRECTORMichelle Hennings

WAWG EXECUTIVE COMMITTEEPRESIDENTJeffrey Shawver • Connell

VICE PRESIDENT Ryan Poe • Hartline

SECRETARY/TREASURERHoward McDonald • Coulee City

PRESIDENT EMERITUSMarci Green • Fairfield

APPOINTED MEMBERSAndy Juris • BickletonAnthony Smith • Richland

2 WHEAT LIFE DECEMBER 2018

2018

Conv

entio

nInside This Issue

Jeffrey Shawver, president, Washington Association of Wheat GrowersGary Bailey, chairman, Washington Grain CommissionScott A. Yates, communications director, Washington Grain CommissionDiana Carlen, lobbyist, Washington Association of Wheat GrowersAlex McGregor, stakeholder, Pacific Northwest wheat industryCraig Morris, director, Western Wheat Quality Lab

David Bolingbroke, history Ph.D. candidate, Washington State UniversityT. Randall Fortenbery, Ph.D., Thomas B. Mick Endowed Chair in Grain Economics, Washington State UniversityHeidi Scott, writerLarissa Zeiler, CPA, Leffel, Ottis & Warwick, P.S.

Contributors

WAWG President’s Perspective 2Membership Form 4

WAWG at Work 6Policy Matters 18

Washington Wheat Foundation 22A tale told in pictures

Photos, photos and more photos 24Trade, tariffs, farm billSpeakers, panels tackle issues 26

Progress reportBattle against falling numbers continues 32

Plowing the PalouseAntique tractors, plows galore 36

WGC Chairman’s Column 39USW’s Mark Fowler

Oldest, newest employee on his perspective 40Adieu

WGC commissioner steps off board 43Seventy seasons of service

Delving into the history of the WWQL 45Wheat Watch 48

The Evergreen state’s EgyptThe Columbia, not the Nile, runs by it 50

The Bottom Line 54Your Wheat Life 56

Happenings 58Advertiser Index 59

WHEAT LIFE DECEMBER 2018 3

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.

WAWG MEMBERSHIP FORM

Return this form with your check to: WAWG • 109 East First Ave. • Ritzville, WA 99169. Or call 877-740-2666 and use your credit card to enroll by phone.

Student $75

Grower $125

Landlord $125

Family $200 (up to 2 members)

Partnership $500 (up to 5 partners)

Convention $600

Lifetime $2,500

Please check level of membership

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Circle all that apply:Producer Landlord Individual Industry Rep. Business Owner Student Other

Thank you to our current members

Grower or Landlord $125Family $200 (2 family members)Partnership $500 (1-5 family members)Convention $600 (2 individuals)Lifetime $2,500 (1 individual)

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Mem

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LEVELS OF MEMBERSHIP

Producer/Landowners (Voting Membership)

Washington Associationof Wheat Growers

109 East First Ave. • Ritzville, WA 99169 509-659-0610 • 877-740-2666 • 509-659-4302 (fax)

www.wawg.org

More member benefits: • Greensheet ALERTS • WAWG updates• Voice to WAWG through opinion surveys • National Wheat Grower updates• State and national legislative updates

Call 877-740-2666 or visit www.wawg.org

Non-Voting MembershipStudent $75 X X X

✔ Helping shape the 2018 Farm Bill.

✔ Preserving the farm safety net by protecting crop insurance.

✔ Fighting mandatory carbon emission regulations.

✔ Preserving the Snake River dams.

✔ Maintaining a safe and sound transportation system that includes rail, river and roads.

WAWG’s current top priorities are:

As Washington state continues to look for more revenue to fund education, farmers’ tax exemptions and programs are coming under fire.

If these are important to your operation, join today and help us fight.

Congratulations on a great 2018 season! One small way we can say thank you for your continued business and support;

supporting the community that supports us.

Wilbur-Ellis proudly sponsored and donated over $200,000 in 2018 to organizations in our wheat growing communities in the Inland Empire.

YOUR FARM. YOUR WAY.

ag.wilburellis.com

Wilbur-Ellis leverages our legacy of integrity and trust to offer you the best solutions that fit your operation. For information only. Not a label. Prior to use, always read and follow the product label directions. WILBUR-ELLIS logo and Ideas to Grow With are registered trademark of Wilbur-Ellis Company LLC. K-17588

ADAMS COUNTY FAIRAMERICAN CANCER SOCIETY

BOHNET MOTORCYCLE PARK VINTAGE WEEKENDBONINA COLT TO COW CONNECTION

COLFAX ROTARY CLUBCOLTON KNIGHTS OF COLUMBUS

COLUMBIA BASIN FASTPITCH CLUBCOLUMBIA BASIN JUNIOR LIVESTOCKCOLUMBIA COUNTY FAIR 4-H & FFA

DESALES HIGH SCHOOLEASTIN STREBIN MEMORIAL GOLF TOURNAMENT

EL KORAH SHRINE CIRCUSFAIRFIELD SERVICE CLUB

FOUNDATION BRICKSFRANKLIN CONSERVATION DISTRICT

FREEMAN BOOSTER CLUBGARFIELD COUNTY MARKET SALE

GARFIELD/PALOUSE FFA & 4-HGASB CATHOLIC SCHOOLS

GENESEE CIVIC ASSOCIATION INCGENESEE COMMUNITY FIREMEN INC

GRANT COUNTY 4-H & FFAHERMISTON LIONS CLUB

IDAHO ASSOCIATION OF SOIL CONSERVATIONIDAHO FFA FOUNDATION

IDAHO MINT GROWERS ASSOCIATIONIDAHO-EASTERN OREGON SEED ASSOCIATION

JUNIOR LIVESTOCK SHOW OF SPOKANELATAH COUNTY MARKET ANIMAL SALE

LIBERTY FFA FOUNDATIONLIBERTY SCHOOL DISTRICT BOOSTERS

LIND-RITZVILLE FBLALIND-RITZVILLE FFA ALUMNI

MILTON-FREEWATER LITTLE LEAGUEMOSCOW BASEBALL ASSOCIATION - 15 U AL

MOSES LAKE BOOSTER CLUBMOSES LAKE CHRISTIAN ACADEMY

MOSES LAKE MEN’S SOFTBALLMOSES LAKE THUNDER 10U BASEBALL

NCWJLS 4H & FFA LIVESTOCK SALENORTH FRANKLIN BABE RUTH

OAKESDALE HISTORICAL SOCIETYOAKESDALE SCHOOL DISTRICTOTHELLO RODEO ASSOCIATION

PACIFIC LITTLE LEAGUEPACIFIC NW FARM FORUM

PALOUSE CONSERVATION DISTRICTPALOUSE EMPIRE JUNIOR MARKET SHOWPALOUSE EMPIRE RODEO ASSOCIATION

PAWS SCHOLARSHIP FOUNDATIONPINK RIBBON CLASSICPOMEROY FFA ALUMNI

POTLATCH 4-H/FFA BOOSTERSPOTLATCH YOUTH BASEBALL

PULLMAN LIONS CLUBQUINCY HIGH SCHOOL BOOSTER CLUB

ROCKFORD WA LIONS CLUBSAGE POINT PTO

SPC JEREMIAH SCHMUNK MEMORIAL GOLF TOURNAMENT

TEKOA FLOAT ASSOCIATIONTROY LIONS CLUB

WA TRAP SHOOTERS ASSOCIATIONWALLA WALLA 4-H AND FFA

WALLA WALLA COUNTY CATTLEMEN’S ASSOCIATION

WALLA WALLA HIGH SCHOOLWALLOWA COUNTY STOCK SALE

WARDEN DEVELOPMENT COUNCILWARDEN FOOTBALL BOOSTERSWARDEN HIGH SCHOOL GOLFWARDEN MUSIC BOOSTERS

WASHINGTON ASSOCIATION OF WHEAT GROWERSWASHINGTON FFA FOUNDATIONWASHINGTON STATE UNIVERSITY

WESTERN PULSE GROWERS ASSOCIATIONWHEAT LAND COMMUNITY FAIR

WHITMAN COUNTY FIRE DISTRICT 14WHITMAN COUNTY LIBRARY

WSU DRYLAND RESEARCH STATIONYMCA OF THE PALOUSE

Congratulations on a great 2018 season! One small way we can say thank you for your continued business and support;

supporting the community that supports us.

Wilbur-Ellis proudly sponsored and donated over $200,000 in 2018 to organizations in our wheat growing communities in the Inland Empire.

YOUR FARM. YOUR WAY.

ag.wilburellis.com

Wilbur-Ellis leverages our legacy of integrity and trust to offer you the best solutions that fit your operation. For information only. Not a label. Prior to use, always read and follow the product label directions. WILBUR-ELLIS logo and Ideas to Grow With are registered trademark of Wilbur-Ellis Company LLC. K-17588

ADAMS COUNTY FAIRAMERICAN CANCER SOCIETY

BOHNET MOTORCYCLE PARK VINTAGE WEEKENDBONINA COLT TO COW CONNECTION

COLFAX ROTARY CLUBCOLTON KNIGHTS OF COLUMBUS

COLUMBIA BASIN FASTPITCH CLUBCOLUMBIA BASIN JUNIOR LIVESTOCKCOLUMBIA COUNTY FAIR 4-H & FFA

DESALES HIGH SCHOOLEASTIN STREBIN MEMORIAL GOLF TOURNAMENT

EL KORAH SHRINE CIRCUSFAIRFIELD SERVICE CLUB

FOUNDATION BRICKSFRANKLIN CONSERVATION DISTRICT

FREEMAN BOOSTER CLUBGARFIELD COUNTY MARKET SALE

GARFIELD/PALOUSE FFA & 4-HGASB CATHOLIC SCHOOLS

GENESEE CIVIC ASSOCIATION INCGENESEE COMMUNITY FIREMEN INC

GRANT COUNTY 4-H & FFAHERMISTON LIONS CLUB

IDAHO ASSOCIATION OF SOIL CONSERVATIONIDAHO FFA FOUNDATION

IDAHO MINT GROWERS ASSOCIATIONIDAHO-EASTERN OREGON SEED ASSOCIATION

JUNIOR LIVESTOCK SHOW OF SPOKANELATAH COUNTY MARKET ANIMAL SALE

LIBERTY FFA FOUNDATIONLIBERTY SCHOOL DISTRICT BOOSTERS

LIND-RITZVILLE FBLALIND-RITZVILLE FFA ALUMNI

MILTON-FREEWATER LITTLE LEAGUEMOSCOW BASEBALL ASSOCIATION - 15 U AL

MOSES LAKE BOOSTER CLUBMOSES LAKE CHRISTIAN ACADEMY

MOSES LAKE MEN’S SOFTBALLMOSES LAKE THUNDER 10U BASEBALL

NCWJLS 4H & FFA LIVESTOCK SALENORTH FRANKLIN BABE RUTH

OAKESDALE HISTORICAL SOCIETYOAKESDALE SCHOOL DISTRICTOTHELLO RODEO ASSOCIATION

PACIFIC LITTLE LEAGUEPACIFIC NW FARM FORUM

PALOUSE CONSERVATION DISTRICTPALOUSE EMPIRE JUNIOR MARKET SHOWPALOUSE EMPIRE RODEO ASSOCIATION

PAWS SCHOLARSHIP FOUNDATIONPINK RIBBON CLASSICPOMEROY FFA ALUMNI

POTLATCH 4-H/FFA BOOSTERSPOTLATCH YOUTH BASEBALL

PULLMAN LIONS CLUBQUINCY HIGH SCHOOL BOOSTER CLUB

ROCKFORD WA LIONS CLUBSAGE POINT PTO

SPC JEREMIAH SCHMUNK MEMORIAL GOLF TOURNAMENT

TEKOA FLOAT ASSOCIATIONTROY LIONS CLUB

WA TRAP SHOOTERS ASSOCIATIONWALLA WALLA 4-H AND FFA

WALLA WALLA COUNTY CATTLEMEN’S ASSOCIATION

WALLA WALLA HIGH SCHOOLWALLOWA COUNTY STOCK SALE

WARDEN DEVELOPMENT COUNCILWARDEN FOOTBALL BOOSTERSWARDEN HIGH SCHOOL GOLFWARDEN MUSIC BOOSTERS

WASHINGTON ASSOCIATION OF WHEAT GROWERSWASHINGTON FFA FOUNDATIONWASHINGTON STATE UNIVERSITY

WESTERN PULSE GROWERS ASSOCIATIONWHEAT LAND COMMUNITY FAIR

WHITMAN COUNTY FIRE DISTRICT 14WHITMAN COUNTY LIBRARY

WSU DRYLAND RESEARCH STATIONYMCA OF THE PALOUSE

WAWG WORKatADVOCATING FOR THE WHEAT FARMERS OF EASTERN WASHINGTON

Nearly everything came up smelling like roses at last month’s 2018 Tri-State Grain Growers Convention in Portland, Ore., where approximately 300 growers, stakeholders and industry representa-tives gathered to hear the latest updates on issues and socialize.

“This year’s convention was a great success,” said Michelle Hennings, executive director of the Washington Association of Wheat Growers (WAWG). “Our speakers really focused on the cur-rent trade situation, and what it means for wheat farmers. Leaders from our national organizations made the trip out west to give us the latest farm bill news, and we had a large group of young farmers who took advantage of a free convention registration by participating in our 15x40 program. I want to single out staff from all three state wheat groups who put in a lot of time and effort to plan the convention and make sure it went smoothly.”

The location of this year’s convention offered some unique opportunities for convention attendees: A tour of the Wheat Marketing Center in downtown Portland and a Vancouver Export Terminal tour. The tours filled up quickly, and participants had a fun, educational experi-ence. Another highlight of the convention was the keynote presentation by former U.S. Army Ranger, Keni Thomas. Thomas used his experience in a fire fight in Somalia (later recounted in the book and movie, “Blackhawk Down”) to talk about how and why people can step up to become leaders and define success.

One of WAWG’s primary tasks at the convention is to re-view and revise the organization’s resolutions, which help direct leaders and staff. See a list of the new and changed resolutions on page 14. The full resolutions are available on WAWG’s website at wawg.org/about-us/. During the all-committee meeting, WAWG members heard farm bill updates from the National Association of Wheat Growers, as well as updates from the Risk Management Agency, the Farm Service Agency, the National Agricultural Statistics Service and the Natural Resources Conservation Service.

Two new ambassadors were awarded scholarships: Lacey Miller of Ritzville and Evan Henning of Thornton. Read more about them on page 12.

A plethora of awards was handed out during the annual

2018 convention wraps up another successful year

In one of his first acts as the new 2018/19 Washington Association of Wheat Growers (WAWG) president, Jeffrey Shawver (left) awards Douglas County grower Ben Adams WAWG Member of the Year at the 2018 Tri-State Grain Growers Convention.

Outgoing Washington Association of Wheat Growers (WAWG) president, Marci Green, named Benton County as the WAWG County of the year at the 2018 Tri-State Grain Growers Convention. The award was accepted by county vice president, Anthony Smith.


WAWG AT WORK WL

state banquet. Amid much clap-ping and hollering, Benton County was named the county of the year. Anthony Smith accepted the award on behalf of his county. WAWG member of the year was given to Ben Adams, a former WAWG president (2016/17) and a farmer from Douglas County. In one of her last acts as president, Marci Green exchanged ties with Rich Koenig, interim chair of the Department of Crop and Soil Sciences at Washington State University (WSU), an annual tradition that symbolizes the “ties” between WSU and the industry.

As Green’s year as WAWG presi-dent came to a close, she took a moment to thank family, friends and WAWG staff, saying “it takes many teams” to make the organiza-tion run smoothly. Franklin County grower Jeffrey Shawver takes over as WAWG president, while Grant County grower Ryan Poe steps into the vice president’s role. Howard McDonald, a grower from Douglas County, will become the new secretary/treasurer.

Judy Von Borstel of Grass Valley, Ore., took first place in the photo contest, and a number of draw-ings were held throughout the convention:

• Pat Morrill won the early bird registration drawing;

• Bruce Carter won the overall survey drawing;

• Katie Gillespie won the exhibitor bingo drawing;

• Gary Bailey, Mike Wilkens and Bob Zemetra won the education break-out survey drawings; and

• Bridget Blom, Lonnie Green, Jim Moyer, Charlene Flanigan, David DeGon, Larry Wilcox, Gene Classen, John Schlomer and Donald Walker were the LAF drawing winners.

The staffs of Oregon, Idaho and

Diana Carlen (left), lobbyist for the Washington Association of Grain Growers (WAWG), traveled to most of this year’s fall county meetings to update growers on state legislative issues. Here she is speaking to the Adams County wheat growers.

Washington would like to thank all the members and industry supporters who attended this year’s convention. Feedback is always welcome, and planning is already underway for next year’s convention, which will be held in Spokane, Wash. See more pictures from the 2018 Tri-State Grain Growers Convention on pages 24-25.

Counties meet prior to convention to discuss concerns, take care of business

By November, fall fieldwork is typically over, but that doesn’t mean that Washington Association of Wheat Growers (WAWG) members have a lot of time to relax. In the weeks leading up to the annual grain growers convention, many counties hold meetings to discuss county business, elect new leaders and review resolutions prior to the WAWG resolution meeting, which is held dur-ing the convention. Michelle Hennings, WAWG executive director, and Diana Carlen, WAWG lobbyist, attended nearly all of this year’s county meetings to update members on state and federal legislation and to hear county concerns.

“The Washington Association of Wheat Growers is a member-directed orga-nization, so it is important that the growers meet regularly to discuss county issues and then take those county issues to the state board,” Hennings said. “These meetings also allow the state leadership to update growers on what we’ve been working on, both in Olympia and Washington, D.C. We want them to see their dollars at work and know that WAWG is fighting very hard for them.”

In her presentations, Hennings covered several critical national issues, includ-ing the 2018 Farm Bill, issues with incomplete National Agricultural Statistics Service (NASS) data and a mandatory reassignment of base acres that some lawmakers are pushing for.

2018 Farm Bill. Most of the delays in the farm bill negotiations are centered on work requirements for the SNAP program and issues in the energy title. The conservation title also has been problematic as the House and Senate ver-


WAWG AT WORKWL

sions differ on the issue of combining the Conservation Stewardship Program and the Environmental Quality Incentives Program. Hennings said that WAWG and the National Association of Wheat Growers (NAWG) have been pressing members of Congress to pass a farm bill as soon as possible in order to provide growers with certain-ty. A major concern of both WAWG and NAWG is if the farm bill isn’t passed before the new Congress is seated in January, the entire farm bill process will be set back to square one.

Issues with NASS data. In recent years, growers in some counties have seen their conservation payments and/or Agriculture Risk Coverage (ARC) or Price Loss

Coverage (PLC) program payments reduced or cut off entirely because the data those programs are based on is incomplete or missing. Under direction from the U.S. Department of Agriculture (USDA), the Farm Service Agency (FSA), which is tasked with overseeing these programs, must use data collected by NASS surveys to cal-culate payments. Because the data is submitted voluntarily by growers and the process of filling out the surveys can be time consuming and redundant, not all growers submit all their data accurately. If NASS doesn’t receive at least 30 surveys or enough returned surveys to cover at least 25 percent of a county, the agency combines results. This can lead to situations such as happened in Spokane County last year when not enough spring wheat yield surveys were returned. NASS used the winter wheat yield instead. Because winter wheat yields were considerably higher than spring wheat, growers in Spokane County didn’t receive an ARC payment on spring wheat.

A similar issue has occurred recently in Benton County. Because NASS doesn’t split out irrigated wheat from dryland wheat yields, an all-wheat yield was used, which came out to 82 bushels per acre in 2017. That year, the average dryland wheat yield was 30 bushels per acre. No payments were issued.

WAWG is asking lawmakers to include a provision in the 2018 Farm Bill that allows FSA the flexibility to use the best data available to calculate payments, including data collected by the Risk Management Agency (RMA).

Base acres reassignment. The House version of the 2018 Farm Bill includes a provision that would make all base acres that weren’t planted to a covered crop between 2009-17 ineligible for commodity programs. WAWG and NAWG

Members of the Washington Grain Commission (WGC) also attend the county meetings to talk about the commission’s marketing and research efforts. Here Glen Squires (left), CEO of the WGC, talks to Lincoln County growers while county president Kevin Klein looks on.

HighLine Grain’s Ryan Higginbotham (left) gave a presentation to Franklin County growers on the advantages of fall-planted peas.


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feel this would unfairly hurt farmers who have base acres currently en-rolled in conservation programs and could dramatically lower national wheat acre totals. WAWG supports a voluntary reassignment of base acres, not a mandatory one.

Moving to state legislative up-dates, Carlen talked about how the results of the 2018 midterm elec-tions could impact the upcoming 2019 Washington State Legislative Session. She said both chambers will remain under Democratic control, even though some very close races were headed to a mandatory recount at publication time. See a complete election update on page 20.

More than 50 percent of Washington voters rejected I-1631, the carbon-fee initiative that would have taxed fossil-fuel emissions. WAWG was opposed to the initia-tive, fearing it would raise fuel and fertilizer costs for growers.

The 2019 Legislative Session is a budget session and is scheduled for 105 days. Carlen said the budget situation is still pretty bleak as law-makers will have to address fund-ing for mental health issues, teacher contracts and a recent court decision that requires the state to modify state-owned culverts in order to help migrating salmon. Once again, the


WAWG AT WORKWL

agricultural industry will be watching for any efforts to close state agricultural exemptions as lawmakers work on budgets.

“Heading into this session, we will be on defense,” Carlen said, adding that with so many new members of the legislature this year, WAWG will have lots of educa-tion to do.

In other state legislative news, WAWG is watching for two final reports to be issued: one is on pesticide appli-cation safety and reporting requirements and the other is from Gov. Inslee’s Southern Resident Killer Whale Recovery and Task Force, which could include recommen-dations for breaching the lower Snake River dams. Both groups have been working on topics that could directly impact Eastern Washington growers.

Representatives of the Washington Grain Commission also attended many of the meetings where they spoke about the current trade situation, including the United States-Mexico-Canada Agreement (the new NAFTA), Chinese tariffs and a potential bilateral trade agreement with Japan; the current market situation for club wheat; and continuing research into falling numbers.

Each county also addressed county-specific issues and conducted county-specific business.

In LINCOLN COUNTY, growers heard from Elsa Bowen, manager of the Lincoln County Conservation District, on getting involved in the local Voluntary Stewardship Program plan, which has been finalized and adopted by the county. Sara Cossio, FSA county execu-tive director, told growers that conservation and com-

modity program payments are going out. She also told growers that if they haven’t signed up for the Market Facilitation Program, they need to do so by Jan. 15, 2019. When growers come into the county FSA office to sign up, she recommended they bring all of their yield informa-tion with them. Finally, the growers discussed ideas on donating county funds, including donating to the annual Washington State University Wilke Farm Field Day and WAWG’s legislative action fund raffle. Kevin Klein will remain as county president and Tim Kintschi as secretary/treasurer.

In ADAMS COUNTY, growers heard an update on the new tax law from representatives of Leffel, Ottis & Warwick. Growers also voted to help one of the new 2018/19 Washington Wheat Ambassadors, Lacey Miller of Ritzville, with her convention travel expenses. In other county business, Jake Klein will remain as county presi-dent, with Ron Jirava as vice president and Derek Schafer as secretary/treasurer.

In BENTON COUNTY, most of the meeting centered on the issues the county is having with FSA program pay-ments because of incomplete or missing NASS data. Gerry Richter, farm programs specialist from the state FSA office, explained how NASS gets its numbers and how FSA uses those numbers to calculate payments. WAWG National Legislation Chair and NAWG Secretary Nicole Berg, who is also a Benton County farmer, told growers that NAWG is checking with other states to see if they have some of the same problems with their NASS data, since the more states that have issues, the more likely it is that lawmak-ers will allow FSA to use data from other agencies, such

In Benton County, Michelle Hennings (top middle) talked to growers about issues the industry is having with incomplete or missing National Agricultural Statistics Service data, which is used to help calculate Farm Service Agency program payments.


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as RMA. Victoria Barth, FSA county executive director, talked about the Market Facilitation Program and urged producers to make an ap-pointment with the county office to sign up.

In county business, Chad Smith will remain as county president, Anthony Smith as vice president and Dave Moore as secretary/treasurer.

In FRANKLIN COUNTY, growers began the meeting hear-ing from HighLine Grain’s Ryan Higginbotham about the benefits of fall-planted peas as a crop rota-tion for wheat. Higginbotham said that in trials, they’ve seen a 10 to 15 percent yield bump in the wheat crop following peas. Another benefit is that the peas fix nitrogen, offering some fertilizer savings.

“You aren’t going to get rich grow-ing peas, but you can reduce your fertilizer costs for the wheat that follows,” he said.

Kevin Cochrane, an employee of Corteva (a unit of DowDuPont), talked about herbicide and rust con-trol, while Jamie Barker of TerrAvion gave a presentation on digital imag-ery using planes vs. drones.

As the first year under a new tax plan comes to a close, farmers and their accountants are busy trying to adjust their finances. Cade Weber


WAWG AT WORKWL

and Jared King from Leffel, Ottis & Warwick talked about some of the changes in the new tax code, especially the changes in the corporate rates. Instead of a range of rates from 15 percent to more than 30 percent, under the new tax code, there is only one rate—21 percent. For farmers who fell into the 15 percent corporate tax bracket, that could mean a substantial tax increase.

Conservation practices and funding were topics Tracy Hangar, the Natural Resources Conservation Service’s state agronomist, presented on. She also talked about a tool that NRCS has partnered with that allows growers to estimate their farms’ carbon footprint. That tool can be found at comet-planner.com.

Finally, Dana Herron introduced a resolution to estab-lish a permanent club wheat breeder position associated with Washington State University or the U.S. Department of Agriculture’s Agricultural Research Service. That reso-lution passed unanimously and will be sent to the state board for consideration.

There will be a few new officers in Franklin County for the coming year. Leonard Van Buren will take over as president, while Nolan Hollebeke becomes vice president. Bill Harder Jr. will remain in the secretary/treasurer posi-tion.

Miller, Henning named 2018/19 wheat ambassadors

Washington wheat growers have chosen two new high school seniors to represent the industry as the 2018/19 Washington Wheat Ambassadors: Lacey Miller of Ritzville and Evan Henning of Thornton. Both ambassadors sub-mitted a written application and video, as well as made a final presentation at last month’s convention. Miller will receive a $2,000 scholarship, while Henning will receive a $2,500 scholarship. The ambassadors will represent Washington wheat farmers at various civic and commu-nity events throughout the coming year and will partici-pate in an advocacy trip to Olympia with Washington Association of Wheat Growers (WAWG) leaders.

Lacey is the daughter of Marchelle and Mike Miller, and Evan is the son of Steven and Heidi Henning.

Evan HenningHenning is counting on the wheat ambassador program

helping him to develop skills he wouldn’t necessarily get to practice while working on his family’s multigeneration farm, such as public speaking and advocating for agricul-ture. After high school, he is planning to continue his edu-cation in an ag-related field, such as agricultural technol-

ogy, and then return to his family’s farm. He first learned about the wheat ambassador program from his ag teacher at Oakesdale High School.

“I love working on the farm. It’s a passion of mine. It’s some-thing I really enjoy, going out there. I rod-weed all the time. I

work a full harvest where I drive truck and bank-out. I just love it. It’s a lifestyle,” he said.

Besides his work on the farm, Henning is very active in school and community activities, including playing three varsity sports, FFA, honor society, drama club and band. He also has a passion for metal art and may incorporate that into his college plans.

Henning said he is looking forward to his Olympia trip because he’ll be able to talk to legislators about something he loves and is passionate about, especially if those legisla-tors are unfamiliar with agriculture.

“I’ll get to give my knowledge to them about how im-portant agriculture is, and what we do. I’ll be able to tell them what I enjoy about it, what there is to love about it, what it does. It’s going to be fun to interact with them and explain all about farming,” he said. “This experience will stick with me for the rest of my life. I’ll have been a wheat ambassador.”

Lacey MillerFor the past few

years, Miller has been waiting for her shot as an ambassador. She knew about the program thanks to her attendance at previ-ous conventions and went to school with a Ritzville-raised former wheat ambassador.

“I’m looking to learn about the different sides of agriculture. We get to travel to Olympia, so that’s going to be exciting. I know some of it because of my dad (Washington Grain Commissioner Mike Miller), but I’m excited to have my own experience with it. I want to see the business side of agriculture, and how it all connects or could better connect,” Miller said.


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WAWG AT WORKWL

From a very young age, Miller has been involved in various aspects of her family’s multigenerational farm. She helps with harvest and runs the strip trials and test plots on her family’s land. Besides her farmwork, Miller is also active in numerous school and community activities, not to mention competing in three varsity sports. She is

active in FFA, honor society, community volunteer proj-ects and is a running-start student at Eastern Washington University. After high school, Miller plans to earn a degree in marketing and agricultural communications. She is hoping to get a head start on that degree when she heads over to Olympia with WAWG in January. With a new crop

During the annual meeting at the 2018 Tri-State Grain Growers Convention, the Washington Association of Wheat Growers’ (WAWG) membership reviewed, updated and approved the 2019 resolutions that direct policy for the next 12 months. The updated resolutions are listed here. For a full listing, visit wawg.org.NATIONAL LEGISLATION COMMITTEE

• WAWG supports giving FSA authority to use the most accurate available data whether it is from NASS or RMA.

MARKETING COMMITTEETRADE

• WAWG supports bilateral and multilateral trade agree-ments that are favorable to the U.S. wheat industry as a top priority for USTR. (US Trade Representative)

• WAWG encourages the Administration and USTR’s of-fice to fully comply and enforce WTO rules and regula-tions, utilizing the trade dispute settlement system as the best way to eliminate foreign trade barriers.

NATURAL RESOURCES COMMITTEECONSERVATION PROGRAMS

• WAWG recognizes NRCS, Washington State Conservation Commission and local conservation dis-tricts as the authorities in conservation technical guid-ance throughout the state, and urges state and federal regulators to also recognize them as the authorities and support funding them accordingly.

• WAWG supports ensuring that organic producers are held to the same standards as those set for conven-tional production.

CONSERVATION RESERVE PROGRAM (CRP)• WAWG supports the allocation of higher bid points

to CRP for farmland that is located in 12 inch or below precipitation zones to address air or water quality concerns.

• WAWG supports revising the CRP-TIP program to remove the limitations on payments to the retiring farmer or operator if the “covered farmer” (TIP applica-tion) is a family member as defined in section 1001 of the Food Security act of 1985.

WATER• WAWG supports a legislative fix to the Washington

State Supreme Court Foster decision.RESEARCH COMMITTEE

• WAWG strongly encourages the prioritization of wheat and barley research, including discussions with all interested parties, in the following areas (added):

10. Herbicide resistance in weeds.• WAWG supports Washington State Soil Health initia-

tive which provides funding to Washington State University, the Washington State Department of Agriculture, and the Washington State Conservation Commission to conduct research, pilot projects and incentivize adoption as practices that improve soil health and improve agricultural productivity.

RESEARCH FUNDING• WAWG supports the Washington Grain Commission,

WSU and USDA ARS to secure sustainable and perpet-ual funding sources for club wheat research.

STATE LEGISLATION COMMITTEE STATE AGENCIES

Department of Agriculture• WAWG positions on Washington State Department of

Agriculture (WSDA) issues are: 1. Supports continued WSDA administration of the

regulation of agricultural chemical use versus Department of Ecology or Department of Health.

5. Supports funding for pesticide applicator training program which educates handlers and applicators on how to use pesticides safely and effectively.

• WAWG supports the funding of Washington State trade promotion for expanding grain markets.

Department of Natural Resources (DNR)• WAWG opposes DNR utilizing a highest and best use

clause allowing early termination of agricultural leases without DNR paying penalties to the lessee for the remaining term of the lease.

2019 WAWG Resolutions passed at the 2018 Washington Association of Wheat Growers Annual Meeting at the Tri-State Grain Growers Convention on Nov. 15, 2018.

Members pass 2019 resolutions at annual convention


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Without the support of industry sponsors and exhibitors, our annual convention would not be successful.

PLATINUM SPONSORSCorteva AgriscienceIdaho Grain Producers AssociationNorthwest Farm Credit ServicesOregon Wheat Growers LeaguePNW Farmers CooperativeThe McGregor CompanyWashington Grain CommissionWilbur-Ellis Company

GOLD SPONSORSAnheuser-BuschBayer Crop ScienceBNSF RailwayHighLine Grain GrowersMillerCoors

SILVER SPONSORSCliftonLarsonAllen LLPCoAXium Wheat Production SystemHUB InternationalLes Schwab Tire CentersMid Columbia Producers Inc.NachursNAU CountryRitzville Warehouse Co.SyngentaTwo Rivers TerminalUnited Grain Corporation

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Albaugh LLCBig Bend Electric CooperativeCentral Life SciencesCHS PrimelandCHS Sunbasin GrowersCoBankColumbia BankGreat Western MaltingHelena Chemical Co.ItafosLeffel, Otis & Warwick, P.S.Mid-Columbia Insurance Inc.Morrow County Grain GrowersMountain States InsuranceNorthwest Grain GrowersPapé MachineryPatton & AssociatesPomeroy Grain Growers Inc.Rural Community Insurance ServiceSAIFSimplotWashington State Crop

Improvement Association

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of legislators, many of whom have very little agricultural knowledge, she’s looking forward to educating them, especially from a younger person’s point of view.

“We are the future (in agriculture). I want to explain how it per-tains to us, and what we can do to get our generation jump-started. Agriculture feeds the world, and you can’t do without it,” she ex-plained. “But agriculture is changing every day, and it’s innovating every day. There’s new technologies, drones, all this new stuff now. It’s going to help farms sustain a growing population with less land. (We need to) help farmers so they don’t have to close down farms or sell out to bigger farms. Family farms can still be a thing with a growing population.”

How are we doing?Like something you read in Wheat Life?

Disagree with something you read in Wheat Life? Let us know by emailing your comments and suggestions to [email protected] or mail them to 109 East First Avenue, Ritzville, Wash., 99169-2394. Please keep submissions less than 350 words. Submissions may be edited for length.


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Receiving your ALERT?With their annual membership, Washington Association of Wheat Growers members can re-ceive industry updates through the weekly digital Greensheet ALERT via email. If you are not receiv-ing this ALERT, either we don’t have your current email address, or our ALERT is going into your spam folder. Call our office at (509) 659-0610 to make sure we have your current email address.


POLICY MATTERSBy Diana CarlenWAWG Lobbyist

In 2017, the Washington Legislature passed a bipartisan bill creating a new Paid Family & Medical Leave Program. Agencies are continuing to work on rules to implement the new law, but parts of the law come into effect on Jan. 1, 2019. The law creates a statewide insurance program that lets employees get partial wage replacement while on leave. Eligible employees can to take up to 12 weeks (or 18 weeks in certain cases) of paid leave for a “qualifying event,” including: recovering from illness or injury, bond-ing with a new child, taking care of sick or injured fam-ily members or certain military-connected events. Most employers and employees, including those in agriculture, are required to participate in the program.

Here are a few things you should know about the Paid Family & Medical Leave Program (PFMLP):

• Starting Jan. 1, 2019, employers are required to with-hold premiums (0.4 percent of gross wages) and remit them to PFMLP, regardless of the number of hours an employee worked.

- Both employers and employees contribute to the total cost of the premium, with employees con-tributing up to 63 percent of the total premium, and employers contributing the remaining 37 percent.

- Small employers (those with less than 50 employ-ees) are not required to pay the employer portion of the premium, but still must withhold and remit the employee portion.

- There is a small business assistance grant pro-gram to help cover the cost of hiring temporary replacement employees, up to $3,000 renewable up to 10 times per year per employer. However, small employers must pay the employer contribu-tion to qualify.

• Employees cannot collect benefits until Jan. 1, 2020. To qualify, an employee must work at least 820 hours in the qualifying period (the first four of the last five completed calendar quarters or the last four completed quarters) and have a qualifying event.

- If an employee’s qualifying event is foreseeable (such as a planned surgery or childbirth), the em-

ployee must give their employer 30-days notice before taking leave.

• Employers also have quarterly reporting require-ments. Employers will need to track employee wages, hours and other employee information and report to the Employment Security Department each quarter starting in Quarter 1 of 2019 (January 1 to March 31). The Quarter 1 reports are due April 30, 2019.

• Employers with 50 or more employees are required to restore returning employees to their previous posi-tion or to a position with equivalent pay, benefits and employment conditions.

• PFMLP does not apply to federal and tribal employees, self-employed people (including independent con-tractors) and workers that typically work out of state. Self-employed people and tribes can choose to opt into the state program.

• Workers under collective bargaining agreements may have delayed participation in PFMLP.

As an example for premiums, if a qualifying employee is paid $10,000 a year, the total annual premium for the program would be $40 ($10,000 x 0.4 percent). Of that, $25.20 would come from withheld employee wages (63 percent employee contribution), and $14.80 would come from the employer (37 percent employer contribution). A small employer would only need to withhold and remit the employee portion of the premium.

Employers can apply for a premium waiver in certain cases, generally when the employee usually works out of state. A premium waiver may be granted when the em-ployee usually does their work out of state, they only work in Washington on a temporary schedule and they are not expected to work in state for 820 hours or more.

Employers that want to manage their own paid fam-ily and medical leave plan can apply to the Employment Security Department to have a voluntary plan approved, though employers will still need to comply with quarterly reporting requirements. Voluntary plans must meet or exceed the benefits offered under the state plan.

Washington Association of Wheat Growers members should be ready to begin collecting premiums, budget for the employer share of premiums (if necessary) and be ready to track information for quarterly reporting by Jan.

Paid family, medical leave is coming to Washington state


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Democrats to control state legislature with higher marginsBy Diana CarlenWAWG Lobbyist

Preliminary results from the November general election indicate that Democrats will maintain and significantly in-crease their majorities in the state Senate and state House of Representatives for the 2019 Legislative Session.

Based on election results available at the time of publi-cation, Democrats increased their majority in the House from 50 to 57 and from 25 to 28 in the Senate. The balance of power is now 57 Democrats to 41 Republicans in the House and 28 Democrats to 21 Republicans in the Senate. However, there are a few races that are extremely close and subject to mandatory recounts.

Election results are certified by each county on Nov. 27, 2018. The Secretary of State certifies final results on Nov. 30, 2018. A mandatory recount is required when the differ-ence between two candidates is less than one half of one percent and also less than 2,000 votes.

In the Senate, the following seats flipped to Democrat control:

• 30th State Legislative District (Federal Way)-Democrat challenger Claire Wilson defeated Republican incum-bent Sen. Mark Miloscia 54.22 percent to 45.78 percent.

• 47th State Legislative District (Kent, Covington, Auburn)-Democrat challenger Mona Das defeated Republican incumbent Sen. Joe Fain 50.85 percent to 49.15 percent.

In the House, the following seats flipped to Democrat control:

• 42nd State Legislative District (Ferndale, Lynden)-Democrat challenger Sharon Shewmake defeated Republican incumbent Rep. Vincent Buys 50.67 per-cent to 49.33 percent.

• 5th State Legislative District (Issaquah, Maple Valley, North Bend)-Democrats won both House seats in this district, which were previously held by Republicans. Democrat challenger Lisa Callan defeated Republican incumbent Rep. Paul Graves 52.23 percent to 47.77 per-cent. In the other seat, Democrat candidate Bill Ramos defeated Republican candidate Chad Magendanz 51.49 percent to 48.51 percent.

• 10th State Legislative District (Whidbey Island,

Camano)-Democrat challenger Dave Paul defeated Republican incumbent Dave Hayes 50.4 percent to 49.6 percent.

• 28th State Legislative District (Lakewood, University Place, DuPont)-Democrat challenger Mari Leavitt de-feated Republican incumbent Dick Muri 52.79 percent to 47.21 percent.

• 44th State Legislative District (Mill Creek, Lake Stevens)-Democrat challenger Jared Mead defeated Republican incumbent Rep. Mark Harmsworth 52.24 percent to 47.76 percent.

• 47th State Legislative District (Kent, Covington)-Democrat chal-lenger Debra Entenman defeated Republican incumbent Rep. Mark Hargrove 53.49 percent to 46.51 percent.

No Democrats lost their seats to Republican chal-lengers, however, Senate Economic Development & International Trade Chair Sen. Maralyn Chase (D-Shoreline) received 30.85 percent of the vote and was defeated by challenger Jesse Salomon (D), who had 69.15 percent of the vote.

The following races are extremely close and headed to a recount:

• 42nd State Senate Legislative District (Ferndale, Lynden)-Republican incumbent Sen. Doug Ericksen is leading against Democrat challenger Pinky Vargas 50.04 percent to 49.96 percent. This race is currently 54 votes apart.

• 26th State Senate Legislative District (Gig Harbor, Port Orchard)-This seat was previously held by Republican Sen. Jan Angel who chose not to run for re-election, leaving an open seat. Democrat candidate Emily Randall is currently leading 50.07 percent to 49.93 percent against Republican Marty McClendon. This race is currently 93 votes apart and may undergo a mandatory recount.

• 42nd State House Legislative District (Ferndale, Lynden)-Both seats in this district are close. Republican incumbent Rep. Luanne Van Werven is leading 50.09 percent to 49.91 percent against Democrat challenger Justin Boneau. This race is 90 votes apart and will undergo a mandatory recount.

There were several ballot measures this year that were hotly contested. All of the initiatives passed, except for I-1631, the proposed carbon fee.


• I-1631 (carbon fee)-This initiative proposed to be the first in the nation to charge large carbon emitters a pollution fee. This measure failed with only 43.44 percent in favor to 56.56 percent against. This is the second time the voters have rejected an initiative put-ting a price on carbon.

• I-1634 (restricting local taxes on food/beverages)-This initiative prohibits local governments from impos-ing new taxes on soda or grocery items. The measure succeeded with 55.8 percent in favor, and 44.2 percent against.

• I-1639 (regulating firearms)-This initiative regulates the sale of semiautomatic rifles, including adding background checks and raising the purchase age to 21. The measure succeeded with 59.41 percent of the vote in favor to 40.59 percent against. A lawsuit has already been filed by the National Rifle Association and the Second Amendment Foundation challenging the new law.

• I-940 (police use of force)-This initiative changes the “use of force” rules for police, creates a duty for police to give first aid and requires additional mental health and de-escalation training. The measure passed with 59.6 percent in favor to 40.4 percent against.

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WHEAT FOUNDATION WELCOMES NEW BOARD MEMBER STACEY TIMM RASMUSSEN

(From Stacey) I grew up in Harrington on my family’s wheat farm and moved to Cheney to attend Eastern Washington University (EWU). I received my bachelor’s degree in commu-nication studies in 2003 and went on to earn my master’s de-gree in communication and leadership studies from Gonzaga University in 2011. My husband, Lance, and I were married in 2005 and moved to Harrington in 2009 to begin taking over the family farm. My husband currently works with my dad, Don Timm, for day-to-day operations of the farm, and I utilize my skills on the business/financial end of the farm. In addition to the farm, I also work for Spokane Community College as an adult education instructor. I am the manager for the Odessa Public Development Authority, an EWU Alumni Association boardmember, and I am also a photographer.

LET’S GROW TOGETHER CAMPAIGN UPDATEWhen it comes to securing a social license to farm and garner public support for the pri-

orities of our farmers, it’s important to communicate about high-level consumer priorities. Overall, our Washington audience has positive perceptions about farmers in our state. Social content with the greatest resonance centers on the legacy and heritage of farming, steward-ship of the land and honoring and thanking farmers for their hard work.

Other insights come from careful evaluation of the current state of social media, identify-ing an effective strategy in the face of significant algorithm changes and shifting consumer-use patterns. At a time when traditional media use is declining, digital media is becoming increasingly important. However, the ways consumers use social media is changing. The platforms themselves are changing, and the types of relatable content are shifting.

What we’re talking about: We’ve carefully balanced “feel good” and informative content on social media and complemented that outreach with blog and PSA messaging.

What resonates with the audience? Posts that reach the most people and have the highest engagement are those that simply frame farming in Washington in a positive light or feature the hard work Washington farmers put into feeding Washington and the world such as:

When it comes to what consumers care about most in the foods they eat, the answer is clear: transparency and sustainability. Consumers want to know what’s in their food, and how it’s produced. More than 90 percent of consumers place a high priority on transparency in the foods they consume and feed their families. More than 50 percent of consumers say sustainability is an important factor in food choices.

Social media conversations: An effective social media campaign engages an audience with shared values and delivers content that connects on an emotional level. The biggest mistake is to post content just for the sake of posting. Less can be more when it comes to social media content, taking care to only post content with relevance to your audience.

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2018 Tri-State Grain Growers Convention

Portland, Ore., Nov. 14-17


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By Trista Crossley

For a few days last month, wheat farmers from the Pacific Northwest traded in the farm for a convention center in Portland, Ore., where trade, tariffs and other ag-related issues featured prominently on the menu.

Two panels of experts and presentations from top of-ficials from the U.S. Department of Agriculture and the Office of the U.S. Trade Representative detailed the state of agriculture and the issues the industry faces, both nation-ally and at home.

National organizations zero in on ag issuesThe first panel, moderated by Spencer Chase, Agri-

Pulse’s deputy managing editor, featured Chris Kolstad, chairman at U.S. Wheat Associates (USW); Dwight Little, president of the National Barley Growers Association (NBGA); Ben Sholz, vice president of the National Association of Wheat Growers (NAWG); and Tim O’Connor, president of the Wheat Foods Council (WFC). This panel focused on some of the issues the wheat indus-

try is currently facing, from tariffs and trade agreements to the 2018 Farm Bill.

Chase started the session by giving an overview of the current farm economy, adding that net farm income is forecast to decrease 13 percent in 2018. While trade is certainly an important issue, he said the midterm elec-tions could have a large impact as well, especially where the farm bill is concerned. If Congress can’t pass the 2018 Farm Bill during the lame duck period, the House’s switch from Republican to Democrat control could throw a wrench into the works. He sees House Democrats who are very interested in nutrition but not really interested in farm policy.

“An education process will be needed,” he said. In wrapping up his presentation, Chase said Congress

has two main items on their lame duck agenda:• Funding the government by finalizing seven appro-

priations bills; and• Passing or extending the farm bill. December is the

Trade, tariffs, farm bill2018 CONVENTION KEYNOTE SPEAKERS, PANELS FOCUS ON ISSUES FACING AG INDUSTRY

Representatives from national grain organizations kicked off the 2018 Tri-State Grain Growers Convention talking about the challenges and opportunities their organizations are facing. The panel was moderated by Spencer Chase (left), Agri-Pulse’s deputy managing editor. Also on the panel (starting from second left) were, Ben Sholz, vice president of the National Association of Wheat Growers; Chris Kolstad, chairman at U.S. Wheat Associates; Dwight Little, president of the National Barley Growers Association; and Tim O’Connor, president of the Wheat Foods Council.


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deadline when most baseline program funding runs out. Reportedly, the ag committees are still struggling to come to agreement on the nutrition, commodity and conservation titles.

Turning to the panel, Chase asked the participants to list their organization’s biggest issues, as well as the things they are most excited about. The answers included:

• NAWG. Sholz said one of the industry’s biggest hurdles was connecting the dots between producers and consumers, but that he was excited about the new technologies that researchers have been using, such as gene editing and hybridization.

• USW. For Kolstad, the biggest hurdle is getting the 2018 Farm Bill passed so overseas marketing funds would be restored. Trade issues with Japan and China are also on USW’s radar. Kolstad said USW is excited about the potential U.S. wheat markets in south Asia and Latin America.

• NBGA. On the barley front, Little said U.S. barley acreage continues to shrink, which threatens already scarce resources and the sector’s ability to influence policy, but his industry is excited about barley’s poten-tial food value.

• WFC. Nutrition was also on O’Connor’s mind, as he said nutritional guidelines are his organization’s big-

gest issue. The WFC has been working with personal trainers to focus on well-rounded diets instead of the latest fad diet. He added that there are some amazing foods in the wheat portfolio, from cakes to cookies to bread. “People love and eat wheat foods all the time. It’s fun to work on a product that touches that many people,” he said.

PNW export panelWashington State University Ag Economist Randy

Fortenbery moderated a panel of exporters who dis-cussed policy implications on grain once it leaves the farm. Fortenbery began by stating that in his opinion, the U.S. is “in the midst of the most aggressive renegotiation, realignment of trade from the U.S. perspective that we’ve done since the 1920s.” This realignment, he explained, is based on the perception that in the last three or four decades, the U.S. has been significantly taken advantage of in the trade arena. He laid out the timelines of the Trump Administration tariffs and gave his perspective on the current trade situation:

• Supply chains and firms are much more integrated across geo-political landscapes compared to past de-cades. This makes it very difficult to target individual countries, and trade “management” can result in significant unintended consequences.

The marketing sector is also facing issues related to trade agreements and tariffs. Randy Fortenbery (standing), Washington State University ag economist, moderated the panel, which featured (from left) Brian Leidl of United Grain Corporation; Kurt Haarmann from Columbia Grain; and Damon Filan of Tri-Cities Grain, LLC.


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• Trade wars are not easy to win and determining out-comes beforehand is challenging.

• It is impossible to design compensation schemes that make victims of trade distortions whole in the long term.

• Many firms can adapt to a change in trading environ-ments that are predictable and stable, but will have much more difficulty in managing the volatility as-sociated with continual rules changes.

“What often happens in policy, not just trade policy, but policy in general, we sort of think we have this laser beam focus on a particular problem. We invoke a policy remedy, and then there’s a second-phase cost that we didn’t antici-pate that comes back to us,” he said. “We almost always have a give and take, and the real question about trade policy is what’s the net benefit or is it a net cost, and how do we evaluate those going forward?”

The panel consisted of three representatives of Pacific Northwest grain exporters who introduced themselves and gave their view on the current wheat market:

Kurt Haarmann from Columbia Grain. Haarmann said for the last two years, exports out of the Pacific Northwest have run at record levels in terms of total grains, with the last two years seeing 1.55 and 1.6 bil-lion bushels of grain—roughly 1/3 wheat, 1/3 corn and 1/3 soybeans—moving through the ports. This year, that figure is likely to be closer to 1.3 billion due to the cur-rent trade issues. He said that within the tariff discussion, wheat sometimes gets lost, particularly when talking about China, and said the retaliatory tariffs are as much political as they are about economics and goes beyond price. The closure of the Chinese market to U.S. soybeans has forced U.S. farmers to change their whole market structure, forcing them to store soybeans rather than im-mediately sell them. He also said, in answer to a question about the U.S. Department of Agriculture’s (USDA) latest export forecast, that Pacific Northwest prices tend to be a little more stable due to our soft white wheat, so he didn’t expect too much of an impact if the industry doesn’t meet the USDA’s numbers.

Brian Leidl of United Grain Corporation. According to Leidl, United Grain Corp. stores about 8 million bushels of grain and is the largest and oldest facility on the Columbia River. He told growers that quality is the region’s best weapon. “When it comes to quality, nobody can match what we can do here in the PNW, thanks to your efforts and the whole system that has been devised.” Referring to USDA’s recent export forecast of 1 billion bushels, Leidl said it’s not impossible for the market to meet that, but that the window is closing rapidly. He agreed that the situa-

tion with China is mostly political and said the country is trying to prove it can go a year without importing U.S. soybeans, which will improve their trading position.

One grower asked about including China’s wheat stocks in USDA’s numbers. Leidl called the Chinese numbers a “wheat black hole” because it is unclear how accurate they are, but it appears that China is self-sufficient in wheat. He added that three countries hold the most wheat stocks—India, China and the U.S.—with the U.S. having the big-gest stocks-to-use ratio. If there is a supply disruption, he explained, there is really no other supply of wheat other than in the U.S.

Damon Filan of Tri-Cities Grain, LLC. Filan focused more on the up-country elevators’ storage capacity and ability to get the grain to market. He said his business has moved from handling mostly government and country tenders to about 75 percent being private buyers. Filan is an industry representative on the Washington Grain Commission and has participated in many overseas market visits. He said he hears “quality, quality, qual-ity” in just about every country he has visited, which has changed the way his elevator looks at storing and selling wheat. He said Indonesia is probably the next frontier for Pacific Northwest wheat exports, but it will take years to develop.

Jason Hafemeister, special trade council to the USDA Secretary

Hafemeister’s presentation was given via telephone as a storm on the East Coast disrupted his travel plans. He fo-cused on some of the challeng-es, threats and opportunities facing U.S. agriculture. He said the top five export markets for U.S. agriculture are China, Canada, Japan, Mexico and the EU, and the U.S. is facing tariffs in all those countries.

The tariff situation began when the U.S. Department of Commerce decided that steel was important for national security, and steel imports should be limited to 20 percent of domestic consumption. The administration imposed tariffs, which were quickly matched by other countries imposing retaliatory tariffs. That same reasoning is being used to consider an increase in auto tariffs. Hafemeister said the top six U.S. ag markets are responsible for 95 percent of the auto and auto parts imports to the U.S.

“If we somehow get into some sort of trade war for


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autos, there is a potential exposure for agriculture to be caught with retaliatory tariffs as we saw with steel. Something to be watched very closely here,” he explained.

On the China front, Hafemeister said the size of the trade deficit and not protecting intellectual property have been concerns for the U.S. and that it is an unbalanced trade relationship. There have also been concerns that China is taking U.S. manufacturing jobs.

Turning to the North American Free Trade Agreement (NAFTA), Hafemeister said approval of the trade agree-

ment has gone up as people realize what the U.S. would be losing. “It’s hard for us to do much better (in Mexico) than we are right now,” he said. “Agriculture has a big stake making sure the USMCA (the new NAFTA) gets through Congress.”

Finally, Hafemeister addressed the World Trade Organization (WTO) dispute process. He said in general, agriculture has been very successful in pursuing cases via the WTO, but that the administration has concerns that the judges are becoming more political in how they decide


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cases. He added that the WTO needs a common set of rules to judge cases by.

Gregg Doud, chief agricultural negotiator in the Office of the U.S. Trade Representative

Fresh off a trade mission to Morocco (literally, he flew into Portland straight from that country), Doud gave the audience a bird’s-eye view of what the cur-rent administration is doing with regards to agriculture and trade.

Doud said a big difference between negotiating in agriculture is that “…we can’t grind them (the other guys) into the ground. We have to have a re-lationship with the person across the table because they are going to be with us for a long time.” Nowhere is that more true than in Japan where Canadian, Australian and European wheat will eventually become cheaper than U.S. wheat when the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP is the agreement that replaced the Trans-Pacific Partnership) goes into effect at the end of this year. The U.S. is not part of the CPTPP. The good news, Doud said, is that the administration has announced they are ready to start working on a bilateral trade agreement with Japan. He added that according to some economic analysis, if a deal isn’t made, wheat is the commodity that will be hurt the worst, followed by beef and pork.

“If you lose that market share, I d

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