January - Wheat Life
Transcription
January - Wheat Life
WHEAT LIFE The official publication of the Washington Association of Wheat Growers JANUARY 2013 Contacting your state and federal representatives A piece of Washington water history Falling hard for a different class of wheat Address Service Requested Washington Association of Wheat Growers 109 East First Avenue, Ritzville, WA 99169 WHEAT LIFE Volume 56 • Number 1 www.wheatlife.org The official publication of WASHINGTON ASSOCIATION OF WHEAT GROWERS 109 East First Avenue Ritzville, WA 99169-2394 (509) 659-0610 • (800) 598-6890 In association with: www.washingtongrainalliance.com WAWG MEMBERSHIP (509) 659-0610 • (800) 598-6890 $125 per year EDITOR-IN-CHIEF Kara Rowe • kararowe@wawg.org (509) 456-2481 EDITOR Trista Crossley • editor@wawg.org (435) 260-8888 AD SALES MANAGER Kevin Gaffney • KevinGaffney@mac.com (509) 235-2715 GRAPHIC DESIGN Devin Taylor • Trista Crossley AD BILLING Michelle Hennings • michelle@wawg.org (509) 659-0610 • (800) 598-6890 CIRCULATION Address changes, extra copies, subscriptions Chauna Carlson • frontdesk@wawg.org (509) 659-0610 • (800) 598-6890 Subscriptions are $50 per year WAWG EXECUTIVE COMMITTEE PRESIDENT Ryan Kregger • Touchet VICE PRESIDENT Nicole Berg • Paterson SECRETARY/TREASURER Larry Cochran • Colfax PRESIDENT EMERITUS Eric Maier • Ritzville APPOINTED MEMBERS Ben Barstow • Palouse Chris Herron • Connell Remie DeRuwe • Connell Wheat Life (ISSN 0043-4701) is published by the Washington Association of Wheat Growers (WAWG): 109 E. First Avenue • Ritzville, WA 99169-2394 Eleven issues per year with a combined August/ September issue. Standard (A) postage paid at Ritzville, Wash., and additional entry offices. Contents of this publication may not be reprinted without permission. Advertising in Wheat Life does not indicate endorsement of an organization, product or political candidate by WAWG. 2 WHEAT LIFE JANUARY 2013 President’s Perspective Bringing in the new year By Ryan Kregger With a new year ahead, we in agriculture have a lot to be thankful for and a lot to discuss. In the two months that I’ve been president of WAWG, I’ve realized there is one thing that we try to build well as an organization: strategy. As you’ll read in this issue, just the makeup of the new state legislature alone will require the WAWG board of directors to make tough decisions based on the best strategy we can create and maintain. There will be a lot of new faces in Olympia this session, as roughly two dozen freshman legislators make their way to the capitol (see our legislative pullout on pages 38 and 39). This is a great opportunity for us to teach and to listen. As you know, most of the legislature is made up of nonfarming delegates. We not only need to teach these delegates about the realities we face as farmers, but we must also listen to their ideas and build common ground with them if we want to improve policy for rural Washington. The Washington we live in and love has a new governor with many ideas that may seem like opposition to farmers. WAWG, however, must find a way to work with the new reality. Governor Inslee is very interested in clean water and green energy. There may be some common ground within conservation that we can work within and develop a strong relationship. We must ensure that any idea in these areas be sustainable for our industry and for our farmers. Overall costs to the farmer must be considered in these strategies. We are happy to work in any way possible with the governor that can improve the wheat industry in Washington state. It is nice to see that the state senate is coming together in a bipartisan way to help balance out the extremes of the legislature. I am also pleased to see our friend and fellow farmer, Sen. Mark Schoesler of Ritzville, help lead the effort to build a bipartisan future for our state. Before the end of 2012, your officer team and staff worked to continue building bridges with the state Department of Ecology and other state agencies. While they are regulators, it is imperative that we continue communication with them. We must educate them on our cultural practices and fiscal limitations. We will work throughout 2013 to keep transparent relationships with agency staff in order to avoid any “surprise” regulations in the future. In fact, WAWG will be hosting another farm tour this spring specifically for agency personnel. We hope to bring staff from Olympia and elsewhere to the dryland fields of Eastern Washington and show them the effects of their decisions. We also hope to showcase the importance and effectiveness of the many stewardship practices our farmers do voluntarily to help improve water and air quality. As we move further into the whirlwind of 2013, do not hesitate to call me directly if you have questions, concerns or kudos on WAWG’s policy direction. We will strictly adhere to the resolutions formed by our membership, which you can find at our website, wagrains.com. Happy New Year! All photos are Shutterstock images or taken by Wheat Life staff unless otherwise noted. Inside This Issue WAWG President’s Perspective WAWG at Work Policy Matters Battling over Washington water Examining the murky history of water quality Not just another state agency Talking to Dan Newhouse of the WSDA Down in the dumps Ways to fight the winter blues Profiles Jeff Dema of MachineryLink Legislative Pullout What you need to know about our team WGC Chairman’s Column WGC Review Dreaming of a hard white future ADM looks at sourcing grain locally Mahalo Hawaiian thanks to PNW’s key customers There’s an ointment for that Snake oil diets on the hot seat Sour soil? Examining aluminum toxicity Wheat Watch WGC Wide World of Wheat From heyday to gone away The second part of PNW flour mills’ history LaCrosse gets its grocery store An update on the little town that could Quoteworthy The Bottom Line Your Wheat Life Advertiser’s Index 2 6 14 20 24 30 34 38 41 42 46 51 54 56 60 62 64 68 69 70 72 74 your t c a t n co How to nd federal state a akers. lawm Contributors Ryan Kregger, president, Washington Association of Wheat Growers Tom Zwainz, chairman, Washington Grain Commission Scott Yates, communications director, Washington Grain Commission Kevin Gaffney, ad sales manager, Wheat Life Glen W. Squires, CEO, Washington Grain Commission Art Bettge, consultant, ADB Wheat Consulting Kurt Schroeder, research associate, Washington State University Mike Pumphrey, assistant professor, Washington State University Mike Krueger, president and founder, The Money Farm Todd King, CPA, Leffel, Otis & Warwick, P.S. Mary Ruth Dilling, writer, Athol, Idaho. Norman Reed, historian WHEAT LIFE JANUARY 2013 3 Why IN-PLACE? BETTER COVERAGE & INCREASED DEPOSITION. For more inFormation visit ag.wilburellis.com For Better Coverage oF Spray Solution IN-PLACE® is a deposition aid and drift management agent which reduces evaporation and drift of chemicals while increasing coverage and adherence on the target area. • Increases deposition • Improves coverage • Allows more product to hit the target For more information on IN-PLACE, contact your local Wilbur-Ellis Specialist or visit ag.wilburellis.com Important: Always read and follow label directions before buying or using any product. WILBUR-ELLIS Logo, Ideas to Grow With and IN-PLACE are registered trademarks of Wilbur-Ellis Company. K-1212-922 WAWG MEMBERSHIP FORM BECOME A MEMBER Please check level of membership Grower $125 Landlord $125 Name Farm or Business Address City We fight every day to ensure that life on the family farm continues to prosper and grow. WE NEED YOUR SUPPORT. State Zip Phone Fax Email County Affiliation (if none, write state) For a $125 annual membership, farmers, landowners and industry representatives can show their solidarity and lend their voices to ensure responsible state and national agricultural policy remains in place. As a result of WAWG’s half century of advocacy, millions of dollars have been returned to Washington farm country. Show your support. Share your ideas. Become a member today and you will be signed up through the summer of 2013. Circle all that apply: Producer Landlord X X X X X X X X X X X X X Business Owner Other Weekly Email correspondence • Greensheet ALERTS • WAWG updates • Voice to WAWG through opinion surveys National Wheat Grower updates Call 800-598-6890 or visit www.washingtongrainalliance.com X X Industry Rep. More member benefits! One Vote per Partner One Vote per Individual WAWG Convention Free Registration Annual Harvest Prints National Wheat Grower Newsletter Green Sheet Newsletter Wheat Life Magazine X Individual Return this form with your check to: WAWG • 109 East First Ave. • Ritzville, WA 99169. Or call 800-598-6890 and use your credit card to enroll by phone. LEVELS OF MEMBERSHIP X Lifetime $2,500 If you do not have an email address, or prefer hard copies, please include an extra $25 for Greensheet postage. Also, receiving Wheat Life does NOT mean you are a member. X Convention $500 Family $200 (up to 2 members) Please understand that your wheat checkoff does NOT pay for your WAWG membership. Producer/Landowners (Voting Membership) X Grower or Landlord $125 Family $200 X (2 family members) Partnership $500 X (1-5 family members) Convention $600 X (2 individuals) Lifetime $2,500 X (1 individual) Partnership $500 (up to 5 partners) Washington Association of Wheat Growers 109 East First Ave. • Ritzville, WA 99169 509-659-0610 • 800-598-6890 • 509-659-4302 (fax) www.washingtongrainalliance.com WAWG at k r o w State leadership prepares for new legislative session The House On Monday, Jan. 14, the 63rd Washington Legislature will convene the 2013 state legislative session. Your WAWG leadership, staff and lobbying teams have been diligently working and moving the chess pieces around within the legislative makeup. As you’ll notice on our special pullout section (page 38), there are a significant number of new freshman faces in the state’s House chamber, 21 to be exact. One of them from Eastern Washington, Matt Rep. Matt Manweller (R-Ellensburg) Manweller (R-Ellensburg), was sworn in to his office in November and believes there are quite a few issues he’d like to help fix within agriculture. 6 WHEAT LIFE JANUARY 2013 In the House, there are also five of these new freshman faces that bring a new party to their position within their district. Three freshmen Republicans took over previously Democratic positions, and two Democrats did the same over Republicans. The House makeup will be 55 Democrats and 43 Republicans. Most committee assignments have been made for members, including Judy Warnick (R-Moses Lake), whose redesigned 13th District now includes Lincoln County. In addition to the House Capitol Budget and Education committees, Warnick was also assigned to the Agriculture and Natural Resources committee as well. “At each end of the 13th District, we are facing water management challenges. From the Kittitas County Rep. Judy Warnick headwaters of the Yakima Valley Basin (R-Moses Lake) to the Odessa Aquifer, we must ensure we have a balanced approach that provides adequate water supplies for people and fish,” Warnick said. “I have already been involved in interactions between agriculture producers with the Departments of Fish and Wildlife and Natural Resources, and I look forward to continuing that work.” Reps. Warnick and Manweller’s 13th District is now one of the largest agriculture districts in the state. The Senate On the Senate side, things aren’t as cut and dried. There are three true freshmen entering the Senate without prior legislative experience. Another six new Senators are transfers from the state House. Similar to the House, there was a shift of one seat towards the Republicans in the party numbers, but because there e 3r dW ur t ash sla i g ington State Le 6 “We need water storage solutions, so we’re going to work on some funding bills to make sure that the infrastructure is there to get water to the farmers who need it,” he said after he took the oath of office. “We also need to provide some commonsense oversight to some of the unelected bureaucracies, like the Department of Ecology and the Department of Labor and Industries, and so I’m going to work on bills like that.” HILLCO Combine Leveling Systems MiniMizing Hills. MaxiMizing Profits. How do we improve on leveling systems that have set the industry standard? We continue to push the boundaries; designing and building equipment that meets the rigorous demands of today’s farmer. Hillco’s newest leveling systems are designed to handle increased combine weight and grain tank capacity and deliver superior performance and unparalleled results in some of the steepest terrain harvested in the world. How do we improve on an industry standard? We set an entirely new one. ing Systems Combine Level 800.937.2461 www.hillcotechnologies.com Wheat Life Ad 2013.indd 1 12/12/2012 8:28:37 AM YOUR AG TRACKS HEADQUARTERS TRAckS in STock ! AG TRAckS John Deere, 8000T-9000T, CAT 35-95 series 16”-36” Widths, Case Quad Trac - 30”& 36” Widths WE AlSo cARRy RUbbER TRAckS foR Mini-ExcAvAToRS AnD SkiD STEER MAcHinES Walla Walla 509-529-2423 Pendleton 541-276-1571 Milton-Freewater 541-938-5507 Spokane Alki 509-534-0564 Grand Coulee 509-633-3090 Quincy 509-787-1551 Cheney 509-235-5700 Colfax 509-397-4678 Hermiston 541-567-8528 Ephrata 509-754-2479 WHEAT LIFE JANUARY 2013 7 WL WAWG AT WORK are only 49 members in the Senate, the shift was much more dramatic in the upper Chamber. Two districts that were served by Democrats last year are now represented by Republicans. Bruce Dammeier (R-Puyallup) and Barbara Bailey (R-Oak Harbor) helped tighten the divide within the Senate. Sen. Bruce Dammeier (R-Puyallup) One district that was previously represented by a Republican is now represented by one of the true freshmen, Mark Mullet (D-Issaquah). There will be 26 Democrats and 23 Republicans serving in the Senate. In December, two moderate Democrats, Rodney Sen. Barbara Bailey Tom (D-Medina) (R-Oak Harbor) and Tim Sheldon (D-Potlatch), joined with all the Senate Republicans in a power-sharing arrangement to take over the Senate, calling themselves the Majority Coalition Caucus. “The public out there is hungry for us to come together, to work together in a collaborative manner. That is exactly what this coalition is trying to accomplish. We want a cooperative relationship and making sure we work across party lines,’’ Tom said during a press conference announcing the takeover. Sen. Rodney Tom (D-Medina) Sen. Tim Sheldon (D-Potlatch) With the shift in power, the coalition outlined it’s plan to build a bipartisan Senate through a restructuring of committees. Democrats would lead six committees, Republicans would control six, and three committees would have co-chairs. Republicans would control budgetwriting Ways and Means under Andy Hill (R-Redmond); Education under Steve Litzow (R- Mercer Island); Health Care under Randi Becker (R-Eatonville); Government Operations under Pam Roach (R-Auburn); Commerce and Labor under Janea Holmquist Newbry (R-Moses Lake); and Law and Justice under Mike Padden (R-Spokane Valley). The committees that would be co-chaired by Democrat and Republican leaders would be Human Services and Corrections with Sen. Mike Carrell (R-Lakewood); 8 WHEAT LIFE JANUARY 2013 Transportation with Sen. Curtis King (R-Yakima); and Energy and Telecommunications with Sen. Doug Erickson (R-Ferndale). Tom and Senate Republican Leader Mark Schoesler (R-Ritzville) said they organized their coalition around a set of principles that the majority coalesce around: • promoting job growth and a vibrant economy; • c reating a sustainable budget and living within the state’s means; •p roviding a world-class education system through reforms and enhancements; •g overning collaboratively to protect the most vulnerable while prioritizing the needs of middle-class Washingtonians; and • s etting priorities for state government and holding it accountable. As of the deadline for Wheat Life, the Senate Democrats had formally refused the Majority Coalition’s plan. In fact, they offered an alternative plan of offering co-chairs for nearly every committee. The Majority Coalition Caucus almost immediately refused the counteroffer. In an editorial to the Seattle Times, Senate Democratic Leader Ed Murray (D-Seattle) and Senate Democratic Caucus Chair Karen Frasier (D-Thurston) said they recognize that Republicans have the votes to unilaterally impose their will. “As the new minority, we will work together when we can and oppose when we must. Our commitment to our state’s values will not waver,” they wrote. “But we do find the Republicans’ my-way-or-the-highway approach to be concerning. It’s the exact opposite of collaboration, no matter how many times the word is invoked.” Regardless of the structural makeup of both chambers, WAWG is committed to finding common ground within the Legislature and to protect and strengthen the rights of farmers. WAWG’s top priority this session is to protect the current tax structure from the potential loss of agricultural exemptions. Other priorities include opposing the labeling of genetically modified food ingredients, opposing an increased pesticide buffer law and supporting a potential package that could help short line rail. WAWG moves forward on water quality issue WAWG President Ryan Kregger and WAWG State Legislation Chairman Eric Maier recently met with key personnel at the Washington Department of Ecology’s water quality division in Olympia. The goal was to enhance Wheat Life.indd 1 10/30/12 2:08 PM NEW PHOTOGRAPHY BOOK NOW AVAILABLE “Beautiful!”, “Simply incredible!”, “Awesome book!” -Recent Facebook user comments A project sponored by the Washington Association of Wheat Growers Preview it online at www.washingtonwheatbook.com PLEASE CALL THE WAWG OFFICE TODAY Washington Association of Wheat Growers 109 E. First Ritzville, WA 99169 Phone: 509-659-061 E-mail: info@wawg.org WAWG members – $35 Non-members – $45 PLUS TAX AND SHIPPING WHEAT LIFE JANUARY 2013 9 WL WAWG AT WORK communication between Ecology and wheat growers as the agency continues addressing water quality throughout the state’s watersheds. The conversation went well, and WAWG will begin developing it’s biennial Agency farm tour focused around water quality. The goal with the tour will be to better educate various agency staff members on what farmers are doing to improve water quality through incentive-based programs and other voluntary stewardship practices. The Washington departments of Ecology and Agriculture have pledged to work with their partner conservation agency, the State Conservation Commission, to manage water quality within agriculture. In December, WAWG Vice President Nicole Berg and staff attended a joint work session of the state House and Senate agriculture committees where the directors of the three agencies discussed their water quality plans moving forward (read more on page 20). The directors hope to continue working to clarify their individual roles and responsibilities and will continue making system improvements. Additionally, WAWG will be setting up an active working group made up of area farmers to help the organi- zation better address water and air quality issues. The working group will be structured under the umbrella of the natural resources committee. WAWG actively engaged in discovery center developments Plans are moving forward on a concept that has been years in the making for an agriculture-focused tourism center in Ritzville. WAWG has been monitoring and participating in the project’s progress. Washington’s Ag Discovery Center and Business Park hopes to attract visitors traveling along Interstate 90. The center will include all of Washington’s agricultural commodities in its goals of educating the public on the importance of agriculture and provide one more avenue of visibility for the state’s ag industries. The coordinators of the project have met with Washington State University (WSU) and other interested parties for both educational and commercial opportunities. WSU hopes to be involved commercially with a store, as Ammo kicks off 2013 with new farm management programs As we embark upon 2013, WAWG’s newly adopted educational outreach program, AMMO (Agricultural Marketing and Management Organization) kicks into full swing, with 10 farm management training programs offered in four Eastern Washington locations. While AMMO is relatively new to WAWG’s umbrella of offerings, the program has provided producer workshops in Lincoln and Whitman counties for the last two years. Increased demand and response prompted expansion to Pasco and Ritzville, in addition to the Davenport and Colfax locations. Workshops are slated to include DOT farm truck regulations; using good financial records to increase farm profitability; understanding the marketing basics; improving family/business communications; implementing marketing strategies with case studies; planning for farm business succession; your business plan (a road map for the future); impacts of the new farm bill 10 WHEAT LIFE JANUARY 2013 (if there is one); using GPS to manage your input costs; and making good capital management decisions. In addition to WAWG’s sponsorship and the assistance of a USDA-Risk Management Education grant, there are also 54 other area business AMMO members that contribute time, money and resources to ensure the success of the program and its benefit to producers. Workshop content is derived from input from producers and members to meet the growers’ needs and concerns for their farming businesses. The primary goal of AMMO is to help growers increase profitability by making better farm management decisions. For more information or to preregister for workshops in your area, visit the AMMO website at www.lcammo.org or call (877) 740-AMMO (2666) or email us at lcammo@live.com. FALL 2012 CRP & SAFE MIXES. NO PLATITUDES...JUST THE SEED YOU NEED Com Boo e see us the A th #35 @ ! g Sh ow! PREPARED TO PRICE & COMMIT...Regardless of fire seasons! CRP & SAFE X NO PLATITUDES! WAREHOUSES IN MESA & ODESSA CALL 509-297-4500 Dry & Irrigated Pasture Wildlife Habitat Turfgrass Orchard Cover Erosion Control • Meets Govt. Specs • Seed, Tags,Mix Sheets • High PLS • MIXED FOR YOUR PLANTER • Bagged in 50 or 1,000 lb Totes • Calibration Assistance • What Else Do You Need? P.O. Box 210, Eltopia, WA 99330 • Tel: 509-297-4500 • Fax: 509-297-4505 • Email: wri@westernreclamation.com Meet Bruce. You work the land. You know what it takes to do it well. So it makes sense to have a banking partner who knows the ins and outs of the financial side of agricultural business. Bruce is a seasoned commercial banker with a true passion for the industry that helped build this country—that’s why clients trust his instincts, and rely on his talents. We’re banking on the businesses. Bruce Mills Member FDIC. Equal Housing Lender. Relationship Manager/Ag Lending Palouse – 509.878.1300 awbank.net WHEAT LIFE JANUARY 2013 11 WL WAWG AT WORK well as providing educational materials for a space within the center designated for showcasing agricultural research and extension and its impact on Washington agriculture. POMEROY GRAIN GROWERS Numerous commodity groups provided letters of support for the project and will also be utilized in the grant process. The center has gained cooperative interest from various farm country state legislators including state Sen. Mark Schoesler (R-Ritzville) and Rep. Susan Fagan (R-Colfax). WAWG board to hear from export alliance, fertilizer plant Serving Farmers for 80 Years If you’ve been thinking about attending a WAWG board meeting, the January meeting would be a good one. The meeting will be held on Tuesday, Jan. 8, at the Wheat Foundation building in Ritzville beginning at 10 a.m. In addition to reports on multiple state and national topics, the board of directors will also hear from the Alliance for Northwest Jobs and Exports, as well as Grannus LLC. Grannus is helping develop a new zero-emission fertilizer plant in the region. 12 WHEAT LIFE JANUARY 2013 Pomeroy Grain Growers, Inc. Pomeroy Grain Office 877-291-4660 Pomeroy Agronomy 509-843-1394 Farm Commodities-Colfax 800-424-5056 “A story of agriculture will be told. It would be better if it were told by you.” — Jerry McReynolds, past president of the National Association of Wheat Growers Helping Local Businesses MAKE YOUR VISION A REALITY WITH A LOAN FROM WHEATLAND HANDLE BULK SEED THE EASY WAY With our 5-Star BauerFinancial rating and historically low loan rates, Wheatland is perfectly positioned to offer you a agriculatural loan that will allow you to make your vision a reality. And those are just a few of the reasons to work with a locally-owned community bank, nationally recognized as one of the strongest banks in the country. Want to hear more? Easy-on-off with one pin Fast efficient handling of bulk Remote controlled hydraulic motor Spring assisted lift for easy operations Call TODAY and start the conversation with one of our loan officers: 242-LOAN (5626) Long reach 6” auger and 14.5’ telescoping spout wheatlandbank.com/commercial-loans 509.535.1177 Member FDIC Equal Housing Lender 3905. booneAve. Ave 3905 E.E.Boone Spokane, WA 99202 Spokane, WA 99202 NorthwestGrainAugers.com NorthwestGrainAugers.com WHEAT LIFE JANUARY 2013 13 POLICY MATTERS Former Gov. Evans: Speaker is not ‘alternate governor’ agenda) a lot more liberal than a coalition would produce,” observed Evans. Ultimately, former Governor Evans says the new Senate majority will serve to lessen the power that Speaker Chopp wields in Olympia. By AUSTIN JENKINS Northwest News Network “The House of Representatives doesn’t run the state, and the Speaker is not an alternate governor,” said the former Republican governor. Washington Speaker of the House Frank Chopp (D-Seattle) will “have to learn” to negotiate. That tough talk comes from former Republican Governor Dan Evans in reaction to the announcement that a philosophical majority of Republicans and two Democrats have formed to take control of the state Senate for the 2013 session. Evans believes Chopp has enjoyed outsized influence over the past several years, but that this shift in the Senate may force Chopp to compromise on the budget and other key issues to a degree he hasn’t had to before. The last time a power-sharing takeover occurred in the Washington legislature was in the House in 1963. A young Evans was one of the leaders of Speaker of the House Frank Chopp that insurgency. Six Democrats joined (D-Seattle) forces with 48 Republicans on the first day of session to yank control from Democrats and depose Speaker John O’Brien. “We made a decision to go ahead with it, and on the third ballot, we all switched to (Democrat) Bill Day and made him Speaker,” recalled Evans. “It was a real shock to most of the Democrats.” According to an oral history of the Washington State Legislature, then-Governor Al Rosellini called it an “unholy alliance.” Speaker Chopp was traveling out of state, but in a statement responding to Evans’ comments said, “I respect Governor Evans’ decades of service to our state, but in the 50 years since he was in the legislature, a lot has changed. Many leaders in his party have adopted hardline stances that are out of touch with the majority of Washington voters.” The statement from Chopp goes on to say, “House Democrats will continue to work in a constructive, cooperative way with everyone committed to Washington’s priorities—investing in education, creating jobs, increasing access to higher education and protecting the health and safety of our people.” ©2012 Northwest News Network “Everybody predicted it would fall apart, and it didn’t,” said Evans. “We succeeded very, very well in that session...We didn’t lose one single policy vote during the entire session.” Evans predicts the new Senate majority will enjoy the same success in 2013, even though it has the bare minimum of 25 votes to control the senate floor. Coalition leader Senator Rodney Tom (D-Medina) vows to hew to a moderate agenda. There’s always the risk of an internal schism if conservative Republican members of the Senate feel the agenda is too moderate. But Evans says conservatives won’t have much choice but to go along. “The alternative...is to have it tilt back and have (the 14 WHEAT LIFE JANUARY 2013 /O ffice of the Secretary of State ccessful runs ans’ three su Ev of the state an D an 1983, ic courtesy of Republ until 1977. In Photograph from the first or from 1965 m .S. rn U ite ve a n ig go as n pa as enry Jack so ans served A 1964 cam feated Mike to replace H governor. Ev de n an s to lm an ng el Ev hi , Sp as for W r that year Gov. John s retired from pointed by in office. Late d term. Evan Evans was ap death while re s pi n’ ex so ck un s Ja n’ wing Jack so senator follo t the rest of ce to serve ou Lowry in a ra te in 1988. the U.S. Sena archive collection Drawing Entry CLASS 8 TRUCKS 521 N. EASTERN • SPOKANE, WA (509) 534-9088 • class8trucks@aol.com Drawing Entry Drawing Entry HENRY RIFLE PROMOTION In appreciation to all our past, current and future customers... • From Dec. through Feb. 7, 2013, buy a truck or trailer or RENT one of our grain trailers for 2013 harvest, and you get a Henry Rifle. You pay the tax and pick up the rifle at White Elephant. • Come visit us Dec. through Feb. 7, 2013, and put your name in the hat at our store to have a chance to win one of 2 rifles. • To enter drawing to win a 3rd Henry Rifle, cut out and mail this ad-entry form, including your name, address and phone number to: Class 8 Trucks, c/o Henry, 521 N Eastern Road, Spokane WA, 99212 It was so popular with our customers, we had to make it even better this time! Contest runs December 2012 through Thursday, Feb. 7, 2013, the last day of Spokane Ag Expo. Details available at our store....Come In Today! Drawing Entry Drawing Entry 3 Ways To Get Your New Henry .22 Rifle! www.class8trucksales.com Drawing Entry WHEAT LIFE JANUARY 2013 15 WL POLICY MATTERS To capture the maximum “innovation potential” from government funding for ag research, the report urges a rebalancing of how that research is funded to focus more on competitive grants and de-emphasize research that overlaps with that done in private industry. However, without additional resources, moving away from the current balance of funding at USDA could prove risky for crops like wheat that do not benefit from the levels of private research funding devoted to corn and soybeans. Plant research takes long-term, committed funding and special expertise, and much of the innovation available to farmers from wheat research still comes from the public system. Despite additional private money allocated to the crop in recent years, wheat research being conducted by USDA’s Agricultural Research Service (ARS) is still fundamental to wheat’s viability as a U.S. crop and food source for consumers around the world. The full PCAST report and a webcast of the report’s release event are available at www.whitehouse.gov/administration/eop/ostp/pcast/docsreports. Science commission calls for more ag research funds A high-level report on agriculture research funding was issued recently by the White House Office of Science and Technology, underscoring the importance of farming to the domestic economy and the global population. The President’s Council on Advisors on Science and Technology (PCAST) issued the report which focused on the need for agricultural preparedness and the existing U.S. research infrastructure. Noting the emerging and evolving threats to agriculture production, the paper makes the case for additional and rebalanced funding for research programs dedicated to agriculture. It also calls for an additional $700 million in annual funding for agriculture research, which a report co-chair said is justified because agriculture research funding has been flat for decades. The report prioritizes the top seven challenges facing agriculture. Managing new pests, pathogens and invasive plants is at the top of that list, and the paper singles out Ug99 wheat stem rust as an example of an evolving and potentially devastating new pest. 16 WHEAT LIFE JANUARY 2013 Grain groups applaud new flexibility in school lunches Wheat and other grain organizations applauded USDA’s announcement that it will suspend restrictions on the maximum quantities of grains and meats served through the school breakfast and lunch programs for the duration of the current school year. The changes came after significant criticism from some school nutrition advocates, school districts, parents and lawmakers following the implementation of new school breakfast and lunch requirements this past fall. The new standards emanated from the Healthy, Hunger-Free Kids Act of 2010, which called for more LOOKING FOR PROPERTIES WE HAVE BUYERS Farmland, hunting and recreational properties, pasture and/or timberland. to 20,000 acre For Farmland, Pasture,–20 Timberland andproperties– Hunting Sales & Purchases and Recreational properties, 20 to 20,000 Acres! Call Greg Schuster Spokane WA 509-993-2545 realtordad@aol.com Call Greg Schuster Spokane WA 509-993-2545 realtordad@aol.com 110 years STRONG! Our seeds were planted in the heart of Whitman County in 1902. Over 110 years later, our commitment to the farm and ranch community has never wavered. Call us, we want to be your bank. Garfield Branch, 301 W. California St. 635-1361 Northpointe Spokane Branch, 9727 N. Nevada 464-2701 Spokane Valley Branch, 12902 E. Sprague 789-4335 stable. strong. Local. www.statebanknorthwest .com WHEAT LIFE JANUARY 2013 17 WL POLICY MATTERS fruits and vegetables and modified portion sizes for each age group being served. Schools faced logistical and budgetary challenges when trying to implement the new standards, and some children, especially student athletes, were not getting enough to eat for their activity levels. NAWG and other grain organizations have supported USDA efforts to improve the quality and nutrition offered by school meals. National grain chain groups commended the USDA for closely monitoring the situation, listening to concerns of the community and taking action to correct the unintended outcomes. The Dietary Guidelines for Americans recommend eating six, one-ounce servings of grain foods each day, with at least three servings coming from whole grains. Bread and grains provide many of the essential nutrients needed for health and prevention of diseases like heart disease, diabetes, some cancers and birth defects. coverage for 2013 spring-planted onions in Idaho, Oregon and Washington and cabbage in Oregon and Washington. Mar. 15, 2013: Final date to buy or change ALL OTHER spring-seeded MPCI (excluding wheat in counties with fall- and spring-planted types). Final date to buy 2013 AGR-Lite insurance for NEW APPLICATION/ ENROLLMENT POLICIES in Alaska, Idaho, Oregon and Washington. Current policyholders and uninsured growers must make all of their decisions on crop insurance coverage QualityOffering quality you can depend on: You Can Count On For Over 50 Years Farm Storage ! Hopper Bottom Bins Grain Bin Accessories Capacities 1,000 to over 1,200,000 bushels Water Storage Tanks ! Aeration Systems Handling Equipment www.SCAFCO.com A copy of the letter announcing the changes, sent from the USDA to Senate Agriculture Committee Ranking Member Pat Roberts (R-Kan.) is at www.roberts.senate. gov/public/index.cfm?p=News. Whole farm and MPCI insurance dates coming soon USDA’s Risk Management Agency (RMA) reminds producers of the fast approaching winter and spring sales closing dates for Multiple Peril Crop Insurance (MPCI) programs. This also includes the whole farm insurance programs Adjusted Gross Revenue Pilot (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite). AGR and AGR-Lite cover most farm-raised crops, animals and animal products. Upcoming sales closing dates: Jan. 31, 2013: Final date to buy or change AGR insurance in select counties in Idaho, Oregon and Washington. Final date to submit required documents to continue or change 2013 AGR-Lite insurance for EXISTING POLICY HOLDERS in Alaska, Idaho, Oregon and Washington. Feb. 1, 2013: Final date to buy or change crop insurance 18 WHEAT LIFE JANUARY 2013 Call today for Quotes! Dealer Info Farm Storage • Hopper Bottom Bins Grain Handling Equipment • Grain Bin Accessories Water Storage Tanks • Aeration Systems Steel Buildings • Equipment Storage Warehouse Structures • Steel Studs Rock Steel Structures, Inc. Moses Lake, WA Scott Rock • scott@rocksteel.com 509-764-9700 before the sales closing date. If there is no coverage in a county for a specific crop under the traditional MPCI program, producers may ask a crop insurance agent whether they would be eligible for coverage under a written agreement. Producers are encouraged to visit with their crop insurance agent to learn specific details for the 2013 crop year. Federal crop insurance policies are sold and delivered solely through private insurance companies and agents. A list of crop insurance agents is available at all USDA Service Centers in the U.S. or on RMA’s website at www3.rma.usda. gov/apps/agents/. 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Getting a little payback never felt so good. northwestfcs.com | 800.743.2125 WHEAT LIFE JANUARY 2013 19 WL FEATURE Washington grain farmers push for incentive-based practices to improve state’s water quality By Kara Rowe WAWG Director of Affairs and Outreach From a general perspective, people tend to believe water quality in Washington state only affects fishermen and tribes. While they are important stakeholders, the state’s water quality is something that affects every person, whether you live in Tacoma or Tekoa or are a member of the Nisqually Indian Tribe or the common family farm. Water quality and the tribes For decades, farms, cities and tribes have battled over water within Washington state. From the “fish wars” and the federal Clean Water Act, to agricultural spray buffers and dairy nutrient management plans, water quality precedence is far-reaching. Some argue the most critical moment in Washington water history was the 1974 U.S. District Court decision made by Judge George Hugo Boldt. To this day, Boldt’s decision impacts more than just those involved in the case— it rearranged the seats at the water quality table. Boldt presided over a trial that eventually decided whether the state of Washington was upholding the 1854 treaties with multiple Indian tribes in regards to fishing rights, specifically, a clause in each of them guaranteeing tribes the right to fish: “The right of taking fish at usual and accustomed grounds and stations is further secured to said Indians in common with all citizens of the territory.” In 1889, the first year of statehood and 30 years after the treaties were signed, Washington legislators closed six rivers to salmon fishing. All were important to the tribes’ fishing culture. The state eventually banned net fishing in all rivers, except the Columbia. This outlawed the Indians’ main way of catching fish. Many Indians, however, con- 20 WHEAT LIFE JANUARY 2013 tinued their customary ways, and many were arrested by officials. When brought to court, their sole defense was that they had a right to fish according to treaties signed with the U.S. government. By the 1960s, the state’s arrests turned into a series of raids and stings, much of it focused on the Nisqually River. The river became the center of protests. Protesters would openly fish in defiance of state laws. Police and tribal members were continuously at odds. In September of 1970, the U.S. government intervened on behalf of the tribes and filed a lawsuit against the state of Washington for not upholding the federal government’s treaties with the tribes. Within the treaty statement, the two sides argued very simple concepts. The state interpreted the words “in common with all citizens” to mean that the tribes, like all other residents of the state, must be subject to state control. The tribes argued the treaties entitled them to fish unimpeded at any of their “usual and accustomed places.” For three years, Judge Boldt, a sport fisher himself, heard various testimony. In the end, his ruling was clear. Boldt upheld treaty-reserved rights, including the right to half of the harvestable salmon returning to Washington waters every year, and established the tribes as co-managers of the salmon resource. A few years later, in what’s now referred to as Boldt Phase II, the width of the states’ responsibilities to water quality spread even further. In 1980, the 9th Circuit Court of Appeals ruled Washington had an obligation to take “reasonable steps” to protect fish habitat. It decided that FEATURE the state of Washington has an obligation to protect fish habitat, ensuring the tribes’ rights to fish in perpetuity. But it wasn’t that simple. This ruling was debated, and the court decided that the tribes needed to show an example proving that the state had destroyed salmon habitat. WL surfaces between farms and regulatory agencies. Whether dealing with spray buffers or manure management, the regulators and • WAWG urges state and federal agencies to conservation districts are at the utilize voluntary, incentive-based conservahelm of water quality in agricultion practices when regulating the Clean ture. The Washington departWater and Clean Air acts, rather than issuing ments of Ecology and Agriculture regional or statewide mandates. have pledged to work with their • W AWG recognizes NRCS, state conservation partner conservation agency, the In 2001, the tribes filed a federal commission and local conservation districts State Conservation Commission, lawsuit claiming that thousands as the authorities in conservation technical to manage water quality within of culverts used in state roads and guidance throughout the state and urges highways choked off salmon runs. agriculture. In 2011, the directors The federal court agreed. The of the three agencies agreed to state and federal regulators to also recogcourt declared “that the right of work on a coordinated plan, using nize them as the authorities. taking fish, secured to the tribes stakeholder input, to address wain the Stevens Treaties, imposes ter quality in the state. They called a duty upon the state to refrain from building or operatthis effort the “3 Directors Talks.” ing culverts under state-maintained roads that hinder At a recent House and Senate joint ag committee fish passage and thereby diminish the number of fish that work session, the three directors agreed that the prowould otherwise be available for Tribal harvest. This decicess has been difficult, especially when trying to clarify sion also implied that the state needed to address storm each agency’s role and responsibility in water quality water, point source pollution and nonpoint source polluregulation. Inconsistency between the agencies when tion. In the past 15 years, there has been pressure from the dealing with landowners has also been a major concern tribes to increase regulation of nonpoint source pollution. of the Conservation Commission. The Department of Nonpoint source pollution is the category farming potenAgriculture agreed that conservation districts and state tially falls under. and federal agencies must be on the same page. Ecology In addition to the state of Washington’s responsiagreed that this issue has a very complicated landscape— bility, federal agencies such as the Environmental environmentally, institutionally, culturally and politically. Protection Agency, National Oceanic and Atmospheric Ecology also said they have a challenge to effectively Administration and U.S. Department of Agriculture also coordinate regulatory responsibilities with voluntary/ have a “Treaty trust” responsibility to the tribes. They incentive-based programs. Ecology claimed that there is must ensure that salmon habitat is not destroyed on behalf insufficient implementation of best management practices of the tribes. (BMPs) that achieve clean water. Why does this matter to farmers? These decisions enThe directors laid out their plan to essentially build two sured that the tribes have a strong seat at the table in water divisions between the three agencies. Team 1 will focus on quality enforcement within Washington state. They have preparing a practical definition of “substantial potential to the ability to pressure state and federal agencies. In their pollute” and establish clearer design specification for wa2012 State of Our Watersheds report, the Northwest Indian ter quality BMPs. Team 2 will focus on landowner engageFisheries Commission targeted agriculture as a main culment and implementation activities, including working on prit for impairing salmon recovery: watershed strategy and monitoring BMP implementation. “Two key limiting factors in chinook recovery are human The directors hope to continue working to clarify their modifications to floodplains and the loss of freshwater wetlands. individual roles and responsibilities and will continue Agricultural practices have played a significant role in contribmaking system improvements. uting to these limiting factors by removing trees, diking and Important WAWG resolutions for water quality: draining. These actions have resulted in a loss of stream channels, wetlands, stream buffers, increased sediment and pollution in the form of runoff from agricultural activities.” Water quality and the farms As the majority of livestock and crop farmers continually strive to improve their practices and keep the waters of Washington clean, water quality is always a topic that Water quality and WAWG The Washington Association of Wheat Growers (WAWG) has a very clear stance on how best to handle water and air quality within the grain farmers’ realm. WAWG believes that voluntary, incentive-based programs not only work to improve water quality in farm country, but that they also allow farm country to thrive. WAWG beWHEAT LIFE JANUARY 2013 21 WL FEATURE lieves that these voluntary programs work better than mandates or heavyhanded regulation. “Farmers want clean water, just like everyone else,” explained WAWG’s Vice President and Benton County farmer, Nicole Berg. “We have children. We like to eat fish. We drink water. No farmer wakes up in the morning and says ‘I think I’m going to go pollute today.’ We also know what works best on our land to prevent erosion. What works for our farm may not work for a farm 30 miles away. That’s why we need flexible, incentive-based programs to make the best decisions in conservation.” Berg believes regulation should be used as a last resort for those who continuously pollute and refuse to change their practices. PLOWS In the spring of 2012, Ecology completed a visual study on direct seeding by wheat growers and the impacts to streams and water quality in Spokane and Whitman counties. State water quality law requires that landowners prevent all pollution to Washington’s lakes, rivers and streams. Ecology believes the best combination of strategies appears to be the use of direct seeding with a ribbon of buffer between farmed land and the water. WAWG is currently communicating with Ecology to find the best solution for both farmers and water quality. For decades, Washington wheat farmers have undertaken farm practices and farmer education that have resulted in real improvements in the environment while building the state into one of the nation’s largest wheat producers with a global reach. Voluntary, incentive-based programs are funded by state, federal and farmer dollars to improve air and water quality throughout our lands. They protect water. They protect fish. They protect farms. 22 WHEAT LIFE JANUARY 2013 Durable, high clearance plows from 3 to 14 bottoms. Built for Your SOIL PRODUCTIVITY www.salfordmachine.com • 1-866-442-1293 DIESEL & MACHINE, INC. 227 20th St. North, Lewiston, ID 83501 Call Today! 208-743-7171 IT DOESN’T COST, IT PAYS! ● IMPROVED EMERGENCE ● ENHANCED ROOT DEVELOPMENT ● INCREASED YIELD OF 5% MINIMAL COST WITH MAXIMUM RETURN! 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Whether Buying Or Selling–Put Us To Work For You! 303 Bridge Street Suite 3 Clarkston, WA 99403 509-758-8731 866-758-9595 348 SW First Street Pendleton OR 97801 541-278-1200 800-441-1240 1835 First Street Cheney WA 99004 509-235-4920 866-235-4920 Blue Mountain Realtors 509-382-2020 View our farm listings at www.WindermereDayton.com WHEAT LIFE JANUARY 2013 23 WL FEATURE WSDA: It’s not just another state agency By Trista Crossley Sometimes it’s easy to forget how important agriculture is to Washington’s economy. Even though producers only make up about 2 percent of the state’s population, the economic numbers speak for themselves: • Agriculture produces crops and livestock valued at $9 billion. take time away from what you are trying to do, which is to produce crops. “Our responsibility is to ensure the quality and integrity of all the crops in the state, including wheat. We spend a lot of time and inspection in those activities. That contributes to us having high quality products that are recognized around the world. Even though, in general, people • Washington state is home to 39,500 farms covering 14.9 million acres. • Washington is second only to California in crop diversity. • Agriculture is responsible for 12 to 14 percent of the state’s economy. • Agriculture employs more than 160,000 people. And in the middle of it all sits the Washington State Department of Agriculture (WSDA). “Agriculture touches every part of the state,” WSDA Director Dan Newhouse explained. “You’ll find agriculture in every community, in just about every industry. Even in cities like Seattle, agriculture Photo by Zach Mazur of Washington State Magazine has an impact on the economy WSDA Director Dan Newhouse on his Sunnyside farm. through such things as exporting or in food production. Washington is truly an agricultural may not like the word ‘regulatory,’ it contributes positively state.” when the kinds of standards that we have in this state are The WSDA is responsible for assuring the safety of the state’s food supply; overseeing the distribution, use and disposal of pesticides and fertilizers; protecting the state’s natural resources; and facilitating the movement of agricultural products in domestic and international markets. The WSDA is also responsible for regulating certain farming practices, such as dairy nutrient plans, that make some people fume. “I am a farmer myself, so I understand that,” he said. “No one likes added regulations. They cost money and 24 WHEAT LIFE JANUARY 2013 met. We can compete with anybody in the world.” Newhouse took the reins at the WSDA in 2009 at the request of Democratic Governor Christine Gregoire, despite the fact that, at the time, he was a four-term, Republican representative. Besides being well known in Olympia, Newhouse is also a farmer himself. Every weekend, he travels three hours south to Sunnyside to work on his 600acre farm where he raises hops, tree fruit and alfalfa. “It’s not easy, but I’ve got some great people working with me on the farm. I have long-term employees that Transition Planning - Asset Protection Getting the next generation ready in today’s environment 2013 Spokane Ag Expo Farm Forum Schedule Other Brock Law Firm Seminars Coming Up: Seminars held in the Doubletree Hotel Ballroom, connected to the Spokane Convention Center Tuesday, February 5 Noon, 1:30 pm and 3 pm Wednesday, February 6 10:30 am, Noon, 1:30 pm and 3 pm For specific subjects and times, refer to the listings at Ag Expo Show Pasco, Wash. Wednesday, January 9, 8:30 am The Red Lion Hotel Quincy, Wash. Tuesday, January 22, 8:30 am Grant Co. Fire District #3 Dayton, Wash. Thursday, January 24, 8:30 am The Weinhard Hotel Kittitas, Wash. Wednesday, February 20, 10am-12pm Kern Company Over 40 Years Serving Inland Northwest Farming Clients Corey F. Brock Spokane-Kennewick-Moses Lake 509-622-4707 Norman D. Brock Davenport-Ritzville (by appointment) 509-725-3101 WHEAT LIFE JANUARY 2013 25 WL FEATURE don’t have to have constant supervision. My wife is a huge partner in the farming operation. My son has come back to farm—that is fun and very gratifying and certainly helps me to be able to be in Olympia. It is a family operation; my brother is involved in the farm as well.” Besides being a regulatory agency, the WSDA also represents agriculture in less obvious ways. “We are a voice for agriculture in forums that aren’t typically seen, in government-to-government missions, between countries or state governments,” Newhouse said. “We make sure that they treat our ag industry fairly.” “Our responsibility is to ensure the quality and integrity of all the crops in the state, including wheat. We spend a lot of time and inspection in those activities. That contributes to us having high quality products that are recognized around the world.” —Dan Newhouse, director Washington State Department of Agriculture Wheat, the number three crop in the state in terms of value, is heavily dependent on exports, so protecting and growing those markets is another area where the WSDA has a presence, working through its international marketing division. Newhouse explained that many countries prefer working with governments, rather than trade groups, when dealing with import/export issues. “The wheat industry has a very strong commission that has done a great job of promoting wheat around the world, and we work in partnership with the commission.” Newhouse said, adding that politics is usually a factor when dealing with exports. “To be able to certify that the standards required by any country on any products entering their borders are being met, we take away the ability of foreign countries to use wheat or any products as political fodder for ensnaring trade or markets.” Besides dealing with international pressures, the WSDA also faces pressure at home. Newhouse pointed out that there are a lot of criticisms from outside sources regarding pesticides used in agriculture, keeping the state’s water clean and how natural resources are used. One of the department’s main jobs, he said, is to make sure that those 26 WHEAT LIFE JANUARY 2013 resources and tools are used responsibly and that policies don’t hinder a farmer’s ability to make a living. “There’s a delicate balance there,” he said. “Farmers, in my opinion, are the original conservationists. We understand better than anyone how important it is to protect the natural resources we are so dependent on, such as the air and the water. Those things are vital. Every farm I know is a multi-generational business. They are looking at the next generation and want to make sure that the farm will continue for their sons and daughters.” Newhouse said that one of the things that sets his department apart from other state agencies is the fact that so many of his employees come from farm families. That means, he explained, that those employees usually understand how people will be affected by the WSDA’s regulations. “We’ve got kind of an unwritten rule that the way we go about business is different from other agencies,” Newhouse said. “Our goal is not to fine or penalize producers into submission to the rules. Certainly we have penalties for breaking the law, but our first objective is to work with producers to help them understand what is required of them. I think we can get a lot more accomplished by working in a positive way so people see a reason for what is expected of them. I think we’ll get better compliance then coming in and writing tickets.” Another goal of the WSDA is to spread the story of agriculture. Newhouse agreed that sometimes the divide between the east side and west side of the state seems rather large. In 2013, WSDA will celebrate its 100th birthday, and Newhouse said they will be using that occasion to bridge the gap between the two sides of the state by educating people about agriculture through social media and the WSDA website. “We want people to appreciate where the food comes from, and all the things necessary for that to happen.” He pointed out that there is lots of agriculture on the west side of the state as well, it is just different, not only in the crops that are grown, but the size of the farming operations. “We are working on the importance of agriculture and recognizing how important it is to every person in the state.” Newhouse also said that it is important for people to get involved, whether that is through the grower groups or through local and state politics. He said that while the grower groups have been very effective at carrying their members’ messages to Olympia, those groups can’t just be satisfied with what they’ve done in the past, because EASTERN OREGON FARMS Umatilla County, Pendleton,OR 2835.21 acres, rare find winter cattle ranch with 577 acres of wheat ground planted to grass. Winter feed source of 120 irrigated acres, 40 acres of sub-land, 2 older homes. Great fishing for steelhead, salmon and trout. Good hunting for deer, turkey, pheasant, chukar, huns. Good water fowl hunting for ducks and geese. $1,650,000 #WL02210 Umatilla County Milton-Freewater,OR 1,038 acres located near north fork of the Walla Walla River. 238 acres CRP through 2013 with balance in range. Home, horse/livestock barn. LOP tags. $520,000 #WL01012 Umatilla County, Pilot Rock,OR 1998 (+/-) acres of mountain, pasture and timberland. Has cabin with pond and trees for a relaxed setting. Used as summer grazing unit. Great views and recreation. 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Our airport location makes it easy to come and go as you please. WHEAT LIFE JANUARY 2013 27 WL FEATURE the faces in the legislature keep changing. “The challenge to the groups is to just keep telling their story and making their presence known over here. When legislatures hear directly from people who will be impacted by the decisions that they will make, that is very powerful.” Independent seeding tool, bolts up to the back of the Lange knife. Places NH3/liquid fertlizer 1-1/2” to 2” below and between paired row seed placement. Universal adaptor accepts 3/8” or 1/2” NH3 hoses. Proven maximum sealing for anhydrous ammonia regardless of soil conditions. Our replacable CC-240 carbide tip provides extended, durable wear. Available on all Lange knives. Newhouse acknowledged that getting involved takes a lot of commitment, but said that it is vital to have real people, real farmers talking to the legislature. “Things are changing here. There’s a new governor and a new administration. There’s lots of questions in the agriculture community about where they are going to go. It is so critical that ag is front and center in making sure that people understand the impact of any decisions that are being considered.” Spray Center eleCtroniCS inC SlinGSHot rtK CoVeraGe And beyond the grower groups, Newhouse encouraged producers to simply get involved in any avenues that allow them input on decisions that are being made. “Farms are all consuming. There is always some thing to do, and it usually needed to be done yesterday. It is a really difficult decision to leave the farm and help work on things that are maybe a little difficult to see the immediate impact of, but in the long term, will have a tremendous impact on how we make a living.” For more information on WSDA and its 100th birthday, visit their website at agr.wa.gov/. 28 WHEAT LIFE JANUARY 2013 Spray Center Electronics Spray Center Electronics Inc 9721 W Flight Drive Spokane WA 99224 800-477-7729 www.spraycenter.com 9721 W Flight Dr Spokane, WA 99224 800 477-7729 www.spraycenter.com Some with CRP, all with good hunting. Many to choose from, 40 acres to 3000 acres or more. One with 1000 acre lease farmland included. Tekoa/Plummer area and Benewah/Kootenai County. Call Randy Henley: 208-641-5825 Or for complete details go to: www.randyhenley.com It’s never too early No matter what stage of life you’re in, it’s never too early to start planning for retirement. Let us help you balance your need to protect what you have with your desire to build for the future. Contact your local COUNTRY Paul Koethke, LUTCF Moses Lake, Washington (800) 659-9259 The Best For Drilling & Tilling • 2-Rank Drill Re-Designed for the Palouse • 7.5” Paired Rows with Steerable Seed Cart • Precision Placement of Seed & Fertilizer • Quality Built To Last Years of Service Wayne Larson Walla Walla, Washington (509) 525-9106 James Penning, LUTCF Yakima, Washington (800) 741-6135 Laurie Mooney Wenatchee, Washington (509) 663-3800 Joe Shannon Ellensburg, Washington (509) 933-3000 The Joker The ultimate implement for residue and seedbed preparation! • Superior Residue Management • Consistent Seedbed Preparation • Works in wet or dry conditions • Amazing Trash Capacity-No Clumps • 3-Point or Pull-Type Models NORTH PINE AG EQUIPMENT, INC. 2007 E. Babb Road Rosalia, Washington 509-994-2133 or cschmidt@att.net 0311-540HO WHEAT LIFE JANUARY 2013 29 WL FEATURE Avoid falling into the WINTER Blues By Mary Ruth Dilling I t never fails. The new calendar turns over and before you know it, you are overwhelmed with the feeling of “blah.” You know by looking at that new calendar that it will be a while yet before you can get busy planting those seeds in the ground and going forward in the new season. So while this time of winter could signify a time to rest, relax and enjoy the good harvest you finished, it also brings to many a “can’t get anything done” feeling, a “just don’t feel right” time or a “hate this time of year.” •S he takes farming classes from Washington State University and adapts her business plan. •A ttends conferences and workshops (beginning in the fall). •O rganizes all her ag-related stuff she has read throughout the year. •O rganizes the tool room. Fixes what needs to be fixed/ replaced. Winter does not have to be filled with the feelings of “blah” or “ho-hums.” It does not have to be a depressed, “let’s just get through this” time of year. Instead, it can be productive. It can give you a time to plan your goals for the next year. Following are some ideas from a variety of farmers from Washington and across the country. Vicky, another Washington farmer, throws in about preparing for your taxes by making sure your books are all in order. She also spends time spinning and knitting. Nikki, from Washington, has a wide variety of activities to make the winter season a time of great beginnings. Some of the things that Nikki does are: One wheat farmer said, “There’s always a lot of fixin’ to do. Figure taxes and spend money before the end of the year; that’s always fun.” Another farmer likes to “dabble in work” during the winter. He makes entertainment centers, bookshelves and cabinets. Another farmer from Iowa enjoys spending his winters learning foreign languages. To date, he has studied sign language, German and French. This year he is working on Scots Gaelic. He has already learned three other dialects of Gaelic. He says he can speak at least part of 12 different languages. Learning a foreign language is a great way to keep the brain active and plastic. Mulligan, another farmer from Iowa, uses winter to donate blood and plasma. He is almost at the five gallon mark right now with his donations. • Plans for the coming year by scanning those seed catalogs. Jo, a Washington farmer, likes to enjoy the break in the season by catching up on the latest releases. She enjoys listening to books on tape. S o winter time provides a great opportunity for farmers across the nation to pursue other interests. Activities range from upkeep of farm equipment to updating a business plan to doing community service Marketing & Manufacturing, Inc. Seed, Fertilizer & Chemical Application Equipment AGPRO designs the drill to YOUR specs….. Three Drill Frame Designs! Two Opener Styles! Four Seed/Fertilizer Point Options! Seed Boxes from 70-210 bushel! New AGPRO drill frame with sixteen flotation tires coupled to a commodity cart with a steerable axle. AGPRO frame with ultra-low disturbance Cross Slot Openers and high flotation tires. Standard AGPRO two or three rank drill frame with high flotation tires. 800-492-2212 Call Jerry Harper or Wayne Neace for details at 1112 Airway Ave. Email: agpro@agproinc.com Lewiston, ID 893501 www.agproinc.com CLASS 8 TRUCKS 521 N. EASTERN • SPOKANE, WA (509) 534-9088 • class8trucks@aol.com TRAILERS, TRAILERS AND MORE TRAILERS IN STOCK! Your ad could be here getting read by thousands of Pacific Northwest farmers and growers. What are you waiting for? Call Kevin Gaffney at (509) 235-2715 J&M Fabrication • Custom Welding • Tool Boxes • Fuel Tanks • Equipment Repairs • Custom-made Combine Parts • Custom Truck Bodies & Flatbeds • On-Site Millwright work • All types of Custom Design Work J&M Fabrication Call Justin Miller Today! 509-235-5711 or 509-993-2890 (cell) Cheney, WA Clean Grain & Return Elevators 12 gauge construction, 2.5 times stronger than EOM. For newer model Case IH and JD models. We have multiple brands of top quality trailers. Grain trailers, flatbed trailers, dolly trailers, curtain side trailers, livestock trailers, low boy trailers, even reefer units are in stock now! Marc B. Lange (509) 991-9088 Gary Evans (509) 456-2687 Butch Johnson (509) 990-3153 NOT JUST TRUCKS, TRAILERS TOO! www.class8trucksales.com WHEAT LIFE JANUARY 2013 31 WL FEATURE to increasing knowledge. There are a number of people who would love to do these things, but the winter blahs just seem to be too strong. Maybe you are one of those who suffer from a lack of sunshine from living in the Pacific Northwest. There are a number of things one can do to improve this. People get the ”winter sadness” from insufficient light which causes a disruption in hormones. When the pineal gland thinks it is dark, it increases the production of melatonin, a hormone which can make you sleepy. This hormonal increase can cause a change in appetite, weight gain, change in sleep patterns, a tendency to isolate, lack of concentration, grouchiness and fatigue. To combat these symptoms here are some things to try: • Make sure you get outside on a daily basis. For best results, it is better to get outside in the sunlight when you first get up in the morning. This will help reset your melatonin levels in the brain. Being outside is beneficial even if there is no direct sunlight. ing the mind by reading books, taking a local college course or volunteering to help those less fortunate. •U se the winter time to strengthen those social ties. Getting together with friends will help lessen the blah feelings. The winter blahs do not have to get you down. There are many healthy options to keep a body going strong during this time of year. Take care of your body, get involved with others, and the blues will fade away. Proudly Serving The Inland Northwest Farm Community For More Than 70 Years • Change your light bulbs to full-spectrum light. You can just add one of these bulbs in your living room. It will be enough of a change to make a difference. It would not be advisable to put one in your bedroom as it could interfere with sleep patterns. There are also “light boxes” one can purchase. Sitting in front of the light box for 30 minutes a day will give you the same results. • Exercise. This will increase the endorphins in the brain which is a feel-good neurotransmitter. Thirty minutes a day for a minimum of three times a week will help decrease the winter blues. • Take your vitamins. Vitamin D, the “sunshine” vitamin, is often deficient in the winter. Experts recommend at least 1,000 IUs a day. This writer used to suffer from the winter blues. What she did was begin the day with a protein shake with a tablespoon of fish oil with vitamin D added. Within a few days, the winter blues were gone. Other vitamins people are often short of in the winter are the B vitamins. These help a person handle stress better. Deficiencies of B vitamins are often linked to emotional imbalances. • Eat a balanced diet, making sure you get all your fruits and vegetables. Be sure to include plenty of water. Dehydration can cause feelings of fatigue and a lack of concentration. If wood heat is used, be sure to compensate by drinking additional water. • Take needed precautions for your health by washing your hands often. If you start feeling a cold coming on, use extra vitamin C to shorten its life. • Follow the guidelines of other farmers by improv32 WHEAT LIFE JANUARY 2013 • Farm Corporations • Real Estate • Water Rights • Farm Estate Planning • Elder Law • Probate • Agribusiness Planning Visit our booth at Spokane Ag Expo for prizes and special drawings Davenport, WA 509-725-4100 Odessa, WA 509-982-2672 Ritzville, WA 509-659-0425 Fairfield, WA 509-283-4223 Rosalia, WA 509-523-5809 St. John, WA 509-684-3683 . choppers fertilizer applicators . harvesters . planters . rippers CHROME ALLOY WEAR PPARTS ARTS R & H Machine offers an extensive line of cultivator points and shovels to fit S-tine, KMC, Triple K, and C shanks. All are cast of high Chrome Alloy to give extremely long life in abrasive soils. Our parts outwear standard or hardfaced points by an average of twenty times. applicators Extremely long wearing Save costly downtime Cut replacement costs Uses standard hex-head bolt Shock absorbing washers included ** Please call for a detailed catalog ** R & H MACHINE . 115 ROEDEL AVE . CALDWELL ID 83605 1-800-321-6568 . www.rhmachine.com . 208-459-1507 . chisels . harvesters . planters . choppers . cultivators . fertilizer Maintain uniform tillage . applicators rod-weeders . . rod-weeders . choppers . cultivators . fertilizer . chisels . harvesters . planters . rippers chisels chisels c hisels . the Standard for Wear! . Setting . . . . . . chisels choppers fertilizer applicators harvesters planters rippers Sales Service Satisfaction - Since 1980 - 32 Years Years ofof Service 30 Service Combines • Tractors • Grain Augers • Hay Equipment • Tillage Equipment • Sprayers • Harrows • Drills & More Special Low Interest Rates Available OAC • • • • • • • Crop Crop Protection Protection Seed Seed & & Feed Feed Fertilizer Fertilizer Products Products & & Applicators Applicators Expanded Expanded Parts Parts Inventory Inventory Plastic Plastic Storage Storage Tanks Tanks Meridian Meridian Bins Bins Storage Storage Tanks Tanks Pumps, Pumps, Fittings, Fittings, Hoses Hoses & & More More locations toto better serve 22locations serve you! you! Service: Greg Mayer Parts: Casey Jones Visit us online: www.jtii.com Terry Largent 509-336-1344 • Dan Helbling 509-336-1346 Bob Kerns 509-336-1342 ©2010 CNH America LLC. All rights reserved. Case IH is a registered trademark of CNH America LLC. CNH Capital is a trademark of CNH America LLC. www.caseih.com Cheney, Wilbur, Washington Cheney,Washington Wash. Wilbur, Wash. 17005W. W.SR SR904 904 555 N.E. 555 N.E. 17005 Main St.Main St. 509-235-2006 509-647-5365 509-235-2006 509-647-5365 1-800-782-7786 www.AgEnterprise.com WHEAT LIFE JANUARY 2013 33 WL PROFILES Jeff Dema of MachineryLink Corporate GM finds bigger isn’t always better By Kevin Gaffney Many business management executives follow a career path where they begin with positions at smaller companies, eventually working their way up the corporate ladder to larger corporations later in their career. Jeff Dema, general manager and vice president of producer markets for MachineryLink, moved in the opposite direction when he joined the nationwide combine leasing firm in May 2012. Born in South Carolina to immigrant parents from Europe, Dema was raised in Kansas. He has made his home in the Kansas City area for the past 20 years. Dema earned his undergraduate degree from Pittsburg State University in Kansas. Dema then served nearly five years in the military with the 101st Airborne Division. Following his service, Dema earned an MBA at Vanderbilt University before taking a position with General Electric in Louisville, Ky. Dema followed that up working for Hallmark Cards for 19 years. His most recent position at Hallmark was 34 WHEAT LIFE JANUARY 2013 managing a staff of more than 1,100 employees operating a 1.75-million-square-foot distribution facility in Liberty, Mo. “I had been employed exclusively at larger companies before MachineryLink,” said Dema. “I had always dreamed about working at a smaller company, where the conditions were more nimble, the workplace would move a little faster, and there would not be as much bureaucracy in place. “I found just that when I joined MachineryLink. I signed on, and it has been a great ride ever since. “I am responsible for sales and operations,” explained Dema. “This includes managing the fleet and making sure the machines are transported in a timely manner to our customers. I also oversee the sales force, selling the value of our services to prospects. “MachineryLink just completed its 12th harvest season, and the business has grown over the past decade. I believe we have a strong value proposition: Rather than tying up so much money in an expensive machine that sits idle PROFILES approximately 11 months out of the year, put your money into something else. Whether that might be other farm implements or to expand the farming operation with more land, leasing a combine makes good business sense.” Dema believes that high commodity prices over the past five years, along with tax incentives available in the federal farm bill, have made combine purchases a more attractive option versus leasing for some farm operations. That is not a fatal blow to the business model, however, as Dema estimates that about 40 percent of their leasing clients own at least one combine of their own. MachineryLink rents a fleet of more than 200 machines each harvest season. Their customers harvest more than two million acres of crops across 30 states. Their fleet is more John Deere green than Case IH red, but they strive to accommodate whatever the customer desires, including hillside machines for the Pacific Northwest. Along with timely delivery of machines to producers, another very important factor is proper machinery maintenance. “We take maintenance very seriously, and we provide premier customer service and maintenance support for our customers. We also have agreements with local and regional dealerships throughout our geographic footprint to cover maintenance when that makes sense,” said Dema. “Most dealers are happy to team up with us, as they realize we are not directly in competition with them. We cooperate to provide our mutual grower customers with excellent service to help them complete their harvests in a timely manner. We rely on the dealers for parts and service work, and it really is a win-win situation. “When we have a great number of machines rented in an area, we will set up our own maintenance crews to ensure timely service in the event of repair problems popping up. We have a true 24/7 harvest maintenance mentality in place. We understand the harvest mode and appreciate that our producers’ paychecks for the entire year hinge upon a few short weeks of timely operation. WL same intense harvest mind-set that the farmers operate with. We strive to serve them in that same manner.” Breakdowns happen more rarely than they might with MachineryLink combines because all machines are put through a rigorous 400-point inspection process and repaired between rental stops. “Once a machine is three years or older, the frequency of maintenance problems increases dramatically,” noted Dema. “Of course, a MachineryLink combine with 1200 separator hours is not the same as a typical machine with the same hours. We perform major winter repairs and maintenance on every combine every year.” The region with the most rental machines, not surprisingly, is the Midwest. With more acreage than any other area in the nation, the total size of the combine fleet is determined in great part by how many machines are needed to service this area each year. “There are basically two main geographic harvest paths for our fleet of combines, with four stops each,” explained Dema. “The first path begins in Texas and Oklahoma and moves from there into Nebraska and Colorado. Then it’s on to the Pacific Northwest and the Dakotas before hitting the row-crop states of the Midwest. In the other path, the first and fourth stops are the same, and we also hit the The John Deere FarmSight™ Machine Optimization Logistics Optimization Ag Decision Support “The success of our business depends upon having that Machine Sync Sign up now for spring custom seeding 44 ft. Drill w/12” Spacing Kevin Klein Sales & Service Rep 509-650-7307 New & used drills for sale kkmasterseeder@gmail.com www.seedmaster.ca Edwall, Wash. 509-236-2460 ❑ Machine-to-machine communication ❑ 10 vehicles can distribute data between one another within 3-miles ❑ In-field network to share logistics ❑ Combine location and bin-fill status provided to operator to prioritize equipment movement Scan this code to view ❑ Combine operator controls bank out wagon our FarmSight webpage. position during unloading on the go For information on Machine Sync Contact: Blake Hatch - 509-760-0137 Jim Baergen - 509-681-0233 www.EIIJD.com WHEAT LIFE JANUARY 2013 35 WL PROFILES southern Texas and Mississippi Delta regions midway through the season. “Each state is unique. Kansas has perhaps the biggest variety of crops, and it is generally part of our first and second stops of the harvest season.” MachineryLink rents machines in contracts from as short as 15 days up to 30 days or longer, depending upon the harvest region. Some of the leasing options have separator hour components, others have unlimited hourly provisions. Farmers renting combines must provide their own headers, which has simplified both the transportation of machinery and additional maintenance issues. With a wide variance of preferred headers for various crops and regions, it has been an efficient business method. ü Maurer Steel Grain Trailers ü Front and Rear Aluminum Catwalks ü 40’ Steel ü Spring Ride ü Roll Tarp ü Highest Ag Hopper Clearance on the Market ü Buy or lease to own: ü Maurer Aluminum Grain Trailers ü $ 2,000.00 Rebate to you! ü 42’ Aluminum ü Air Ride ü Aluminum Outer Rims ü Roll Tarp ü 24.5” Radials ü Buy or lease to own: Connell Grange Supply $ 5571/yr OAC ü Maurer Steel Drop Deck Trailers ü 48’ + 5’ Beavertail ü Buy or lease to own: ü $6996/yr OAC Air Ride Suspension ü Triple Ramp Toll Free…1-888 -453-292 4 Or …1-406-453 -292 4 36 “The most challenging element of my job is dealing with the problems that weather causes for our combine delivery scheduling. We have some sophisticated systems for building our transport schedules, but Mother Nature can wreak havoc with them. Nearly all of our combine transportation is done by truck, but we are looking into the possibilities of using rail also, perhaps when the timing of the delivery $ 7430/yr OAC For Dema, the most enjoyable part of his job is working out in the field, literally. “When I have the opportunity to get out and visit directly with our customers and other producers who are potential new customers, I really enjoy that,” said Dema. “There is nothing more rewarding than having the opportunity to find out more about their challenges and how we might be able to help their operations to be more effective. WHEAT LIFE JANUARY 2013 We Deliver Top Quality Fuels • 24-Hour Pumps • Bulk Fuel Tanks For Sale • Farm Hardware In Stock • Full Tire Services • Cattle Equipment 343 S. Columbia • Connell, WA http://www.connellgrange.com 509-234-2631 is not quite as critical. “Each year, we know the delivery plan we develop at the beginning of the harvest season will be changed. We just don’t know exactly how much, or when it will be necessary to shuffle our scheduling due to flooding, drought or some other natural occurrence.” Dema is very optimistic about the future of U.S. agriculture. With an expanding global population showing an increasing demand for American crops, he sees the efficiency of the American farmer as a big plus moving forward. You can find MachineryLink online at www.farmlink.com. Tillage and Planting Equipment Introducing the New Turbo Max Taking Vertical Tillage To The MAX • Adjustable Angle from 0 to 6 degrees on-the-go • Turbo Coulter blades attack residue vertically • 7-1/2” Blade Spacing with offsetting gangs Turbo Till 3S-4000 HD 40' Mini-Till Drill Great Plains Turbo Chisel 2N-3010 30’ No-Till Drill Flex Harrow 3S-4010 HD 40’ No-Till Drill Great Plains Disk Harrow Yield Pro Corn Planter ✓ Quality Seed Products ✓ Commodity Marketing ✓ 23 Locations Plus Rail & River Terminal Access ✓ Processing & Exporting Legume Products Seed Offices: Fairfield 509-283-2333 Rosalia 509-523-3211 Garfield 509-635-1227 Oakesdale 509-285-5516 Tensed, ID 208-274-4465 For these implements and many more, contact your local Great Plains dealer. WALTER IMPLEMENT, INC. CENTRAL MACHINERY SALES CENTRAL MACHINERY SALES CENTRAL MACHINERY SALES FARM & HOME SUPPLY Pomeroy, WA — 509-843-3395 MORROW COUNTY GRAIN GROWERS Wasco, OR — 800-824-7185 MORROW COUNTY GRAIN GROWERS Lexington, OR — 800-452-7396 FARM EQUIPMENT HEADQUARTERS Pendleton, OR — 541-276-6222 Odessa, WA — 509-982-2644 Moses Lake, WA — 509-765-1257 Pasco, WA — 509-547-8920 Sunnyside, WA — 509-837-3833 WHEAT LIFE JANUARY 2013 37 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Derek Stanford Luis Moscoso Gary Alexander J.T. Wilcox *Marcus Riccelli Timm Ormsby Larry Crouse Matt Shea Jay Rodne *Chad Magendanz Kevin Parker *Jeff Holy Shelly Short Joel Kretz Brad Klippert Larry Haler Susan Fagan Joe Schmick Norma Smith *Dave Hayes Zack Hudgins *Steve Bergquist Cary Condotta *Brad Hawkins Judith (Judy) Warnick *Matt Manweller Norm Johnson Charles Ross Bruce Chandler David V. Taylor Maureen Walsh Terry R. Nealey *Monica Stonier Paul Harris *Brandon Vick *Liz Pike Dean Takko Brian E. Blake Richard DeBolt Ed Orcutt Mary Helen Roberts Marko Liias Chris Reykdal Sam Hunt Sherry V. Appleton Drew Hansen Kevin Van De Wege Steve Tharinger D-Bothell D-Mountlake Terrace R-Olympia R-McKenna D-Spokane D-Spokane R-Spokane Valley R-Spokane Valley R-Issaquah R-Issaquah R-Spokane R-Spokane R-Addy R-Wauconda R-Kennewick R-Richland R-Pullman R-Colfax R-Clinton R-Camano Island D-Tukwila D-Renton R-Wenatchee R-East Wenatchee R-Moses Lake R-Ellensburg R-Yakima R-Naches R-Zillah R-Moxee R-Walla Walla R-Dayton D-Vancouver R-Vancouver R-Battle Ground R-Camas D-Longview D-Longview R-Chehalis R-Kalama D-Edmonds D-Mukilteo D-Tumwater D-Olympia D-Poulsbo D-Poulsbo D-Sequim D-Sequim State Representatives 23 (R) 43 (R) In 1927, the state House had 97 members: 8 WAWG’s watching: • Ag tax exemptions • GMO labeling • Pesticide regulations • Clean air/clean water acts • Ag research at WSU • Short-line rail funding 26 (D) State Senate 55 (D) State House of Representatives What the 2013 state legislature is going to look like: Rosemary McAuliffe Randi Becker Andy Billig Mike Padden *Mark Mullet Michael Baumgartner Bob Morton (retiring in January) Jerome Delvin Mark Schoesler Barbara Bailey Bob Hasegawa Linda Evans Parlette Janéa Holmquist Curtis King Jim Honeyford Mike Hewitt Don Benton Ann Rivers Brian Hatfield *John E. Braun Paull Shin Karen Fraser Christine Rolfes James Hargrove *Freshman legislator 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Bruce Dammeier Vacant Jeannie Darneille Mike Carrell Steve Conway Tracey Eide Pam Roach Maralyn Chase Karen Keiser Sharon Nelson Tim Sheldon Jeanne Kohl-Welles Adam Kline Nick Harper Kirk Pearson Kevin Ranker Steve Litzow Doug Ericksen Ed Murray Steve Hobbs Andy Hill David Frockt Joe Fain Rodney Tom *Annette Cleveland D-Tacoma R-Lakewood D-South Tacoma D-Federal Way R-Auburn D-Shoreline D-Kent D-Maury Island D-Potlach D-Seattle D-Seattle D-Everett R-Monroe D-Orcas Island R-Mercer Island R-Ferndale D-Seattle D-Lake Stevens R-Redmond D-Seattle R-Auburn D-Bellevue D-Vancouver R-Puyallup Washington’s state capitol building was the last state capitol in R-Richland R-Ritzville R-Oak Harbor D-Seattle R-Wenatchee R-Moses Lake R-Yakima R-Sunnyside R-Walla Walla R-Vancouver R-Vancouver D-Raymond R-Chehalis D-Edmonds D-Olympia D-Kitsap County D-Hoquiam D-Bothell R-Eatonville D-Spokane R-Spokane Valley D-Issaquah R-Spokane R-Pierre Lake State Senators www.leg.wa.gov LOOKING for your district, state senators or state representatives? *Dawn Morrell Hans Zeiger Jan Angel Larry Seaquist Laurie Jinkins *Jake Fey *Steve O’Ban Tami Green *David Sawyer Steve Kirby *Linda Kochmar *Roger Freeman Cathy Dahlquist Christopher Hurst Cindy Ryu Ruth Kagi Tina Orwall Dave Upthegrove Eileen L. Cody Joe Fitzgibbon Kathy Haigh *Drew C. MacEwen Reuven Carlyle *Gael Tarleton Sharon Tomiko Santos Eric Pettigrew John McCoy Mike Sells Dan Kristiansen *Elizabeth Scott Kristine Lytton Jeff Morris Marcie Maxwell Judy Clibborn Jason Overstreet Vincent Buys Jamie Pedersen Frank Chopp Hans Dunshee Mike Hope Roger Goodman Larry Springer Gerry Pollet *Jessyn Farrell Mark Hargrove Pat Sullivan Ross Hunter *Cyrus Habib Sharon Wylie Jim Moeller *Freshman legislator 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 D-Puyallup R-Puyallup R-Port Orchard D-Gig Harbor D-Tacoma D-Tacoma R-University Place D-Lakewood D-Tacoma D-Tacoma R-Federal Way D-Federal Way R-Enumclaw D-Enumclaw D-Seattle D-Lake Forest Park D-Normandy Park D-Des Moines D-Seattle D-Burien D-Shelton R-Union D-Seattle D-Ballard D-Seattle D-Seattle D-Marysville D-Everett R-Snohomish R-Monroe D-Anacortes D-Anacortes D-Renton D-Mercer Island R-Blaine R-Lynden D-Seattle D-Seattle D-Snohomish R-Lake Stevens D-Kirkland D-Kirkland D-Seattle D-Seattle R-Covington D-Covington D-Bellevue D-Bellevue D-Vancouver D-Vancouver Cathy McMorris Rodgers (R) District 5 - Ferry, Stevens, Pend Oreille, Lincoln, Spokane, Whitman, Walla Walla, Doc Hastings (R) District 4 - Okanogan, Douglas, Grant, Adams, Franklin, Benton, Yakima counties 1203 Longworth HOB Washington, DC 20515 202-225-5816 Jaime Herrera Beutler (R) District 3 - Pacific, Lewis, Thurston, Wahkiakum, Cowlitz, Clark, Skamania, Klickitat counties 1130 Longworth HOB Washington, DC 20515 202-225-3536 Rick Larsen (D) District 2 - Whatcom, San Juan, Skagit, Island, Snohomish counties 108 Cannon HOB Washington, DC 20515 202-225-2605 *Freshman legislator *Denny Heck (D) District 10 - Pierce, Thurston, Shelton counties Contact information not available yet Adam Smith (D) District 9 - Pierce, King, Thurston counties 2402 Rayburn HOB Washington, DC 20515 202-225-8901 Dave Reichert (R) District 8 - Chelan, Kittitas, Pierce counties 1730 Longworth HOB Washington, DC 20515 202-225-7761 Jim McDermott (D) District 7 - Snohomish, King counties 1035 Longworth HOB Washington, DC 20515 202-225-3106 *Derek Kilmer (D) District 6 - Clallam, Jefferson, Grays Harbor, Mason, Kitsap, Pierce counties Contact information not available yet Patty Murray (D) 448 Russell SOB Washington, D.C. 20510 (202) 224-2621 45 (R) 233 (R) In 1927, the state Senate had 42 members: 2 Democrats and 40 Republicans. In 1937, the Senate had 46 members: 41 Democrats and 5 Republicans. U.S. Senate 53 (D) 201 (D) U.S. House of Representatives What the 2013 Congress is going to look like: Maria Cantwell (D) 311 Hart SOB Washington, D.C. 20510 (202) 224-3441 *Suzan DelBene (D) District 1 - Whatcom, Skagit, Snohomish, King counties 2329 Rayburn HOB Washington, DC 20515 202-225-6311 Columbia, Garfield, Asotin counties 2421 Rayburn HOB Washington, DC 20515 202-225-2006 U.S. Senators ? That you can find your federal senator or representative by going to one of these sites: www.senate.gov or www.house.gov the U.S. to be built with a rotunda. U.S. Representatives DID YOU KNOW Democrats, 88 Republicans and 1 other. In 1937, the House had 99 members: 93 Democrats and 6 Republicans. “I wonder if the snow loves the trees and fields, that it kisses them so gently? And then it covers them up snug, you know, with a white quilt; and perhaps it says “Go to sleep, darlings, till the summer comes again.” —Lewis Carroll, Alice’s Adventures in Wonderland & Through the Looking-Glass First snow at the Larry Kruger farm near Davenport. Photo by William Kruger By Tom Zwainz Although Dr. Campbell does teach occasional classes at Washington State University as an adjunct faculty, she is employed by the Agricultural Research Service of the U.S. Department of Agriculture. The ARS, as it is known, is the main research arm of the USDA. It has 18 national programs, 90 research locations, 800 research projects, 2,200 scientists, 6,600 support staff and a budget of $1.1 billion. In Eastern Washington, many of the organization’s functions are performed on WSU’s Pullman campus. In general, the collaboration between university faculty and federal scientists is nearly seamless. Most people, including your Washington Grain Commissioners, often make no distinction between the two entities. Those of you who grow club wheat probably know Dr. Campbell as the club wheat breeder. Her actual title, however, is more long-winded. She is a Research Geneticist in the Wheat Genetics, Quality Physiology and Disease Research Unit. As you may gather, it’s a job description that’s about more than breeding wheat. And as an ARS scientist, she has a Northwest-size responsibility compared to our WSU-employed wheat breeders who concentrate on Eastern Washington conditions. During her 14-year career in Pullman, Dr. Campbell has released eight varieties of wheat. While many of them are grown on large acreages with yields that rank them near the top, the criteria that really distinguishes Dr. Campbell’s releases is quality. Look over the Preferred Variety List the WGC has maintained for the last decade and you’ll find most of her varieties among the “Most Desirable” ranking—the very top for quality. You’ve heard me go on about quality in this space in the past, and while I won’t belabor the point here, let me reiterate the position of the WGC. Yes, bushels pay the bills, but without maintaining and growing market share, our wheat prices and demand will suffer. Customers like Japan and Taiwan, among others, are very sophisticated. They know what they like and aren’t afraid to let us know when they get a shipment of grain that doesn’t meet their expectations. Chasing bushels without consideration of quality is like chasing the wind. At the end of the day you can end up with a lot of nothing. Dr. Campbell isn’t a researcher who goes out of her way to impress people. Although she can project her voice at field days, her default setting is more subdued. She lets her science speak for itself, and the WGC has recognized its value. In the 2012/13 budget, we provided her $121,000 for breeding and cold hardiness research. We further funded another 13 ARS projects, bringing the total we pledge to federal government scientists to $697,000. This is an ever growing slice of our budget. Just six years ago, the commission only funded eight ARS projects for a total of $343,000. The increase is the result of cutbacks in research at the federal level forcing scientists to look elsewhere for money. We are indeed fortunate at the WGC that several years of excellent prices combined with good crops has allowed us the opportunity to backfill federal funding shortfalls. But we cannot expect that will always be the case. Any of us who have been in wheat farming more than 15 years can remember the down cycles when just looking at your banker wrong might have spelled the end to your operation. When it comes to ensuring our industry remains viable into the future, research ranks right up there with rain. And scientists like Campbell and the other Pullman-based ARS employees are essential to that goal. But just as the nation’s physical infrastructure of roads and bridges is deteriorating, its intangible infrastructure of brains and experience is also diminishing. Let scientific funding deteriorate too far and the job of building programs back up will cost more than if they had been funded at optimal levels all along. WASHINGTON GRAIN COMMISSION If you’re as avid a reader of Wheat Life as I am, you no doubt saw the article in the December 2012 issue about wheat breeders Kim Kidwell and Kim Campbell being recognized as fellows by the American Society of Agronomy. That’s quite an achievement by itself, but Campbell was also honored by the Crop Science Society of America. No disrespect to Dr. Kidwell, who left her spring wheat breeding duties in 2009 to become a College of Agricultural, Human, and Natural Resource Sciences administrator, but it’s Dr. Campbell and the organization she works for that I’d like to address here. That said, it is essential we not let the politicians, whose decisions have failed to allow the ARS budget to keep up with inflation, off the hook. Research is not just the lifeblood of Eastern Washington wheat growers, it is the lifeblood of all the agriculture practiced in the U.S. and helps explain why Americans spend less than 10 percent of their budgets on food compared to some third world countries’ 60 percent or more. I am reminded of an old proverb that goes, “You never miss the honey till the bee is gone.” As farmers, we must continue to pressure our Congressmen and Senators to provide adequate funding for the ARS to allow scientists like Campbell to thrive. If not, we are setting ourselves up for a future proverb: You never miss the bread till the wheat is gone. WHEAT LIFE JANUARY 2013 41 WASHINGTON GRAIN COMMISSION One small step for wheat If researchers responsible for decoding the wheat plant’s fabulously complicated genome were to choose a proverb to describe their work, it might be, “Little by little, like the bird builds its nest.” Several research partnerships in the last several years have released papers highlighting progress toward a complete gene map of wheat. At least once, the scientists have gotten ahead of themselves and have had to be reeled back in. The latest effort at decoding bread wheat was led by an international team that included scientists from the Agricultural Research Service of the USDA. Although it has identified between 94,000 and 96,000 genes, it is still a long way from a complete wheat genome assembly. Mike Pumphrey, spring wheat breeder at WSU, said while the latest research is “certainly useful,” it is far from the resources currently available for rice and other plants. Arron Carter, WSU winter wheat breeder, said the sequencing effort is a major step in advancing wheat genetics, but it will not be instantly beneficial to the breeding process or to wheat producers. The difficulty in unraveling the wheat genome is because at 17 gigabases (a giga is a unit prefix in the metric system denoting a factor of billion), it is six times the size of the human genome. Not only that, but the plant contains an array of duplicated genes that may or may not be active. Bread wheat, however, is also the world’s most widely grown crop, planted on more than 494 million acres of land and serving as the primary carbohydrate and protein source for the world’s population. Those facts have motivated researchers around the world to pursue different approaches to tackle the wheat genome map, a completed version of which is still several years away. ADM boosts Down Under offer As expected, Archer Daniels Midland increased its bid for GrainCorp Limited, an Australian commodity firm, from $2.8 billion to $2.9 billion. The revised proposal, which pegs GrainCorp shares at $12.20 in cash, represents a 39.6 percent premium to the last closing price of GrainCorp shares of $8.74 Australian on Oct. 18. It is a 45.9 percent premium to the 12-month, volume-weighted average GrainCorp share price. 42 WHEAT LIFE JANUARY 2013 All healed up and ready to rumble Agriculture’s relatively strong balance sheet and low overall use of debt entering and exiting the recession provides a financial base for future growth. That’s the word from the Economic Research Service (ERS) which found that robust demand for agricultural commodities and products since 2004 has enabled farmers to improve their overall liquidity and strengthen their balance sheets. These gains in farm income, meanwhile, increased farmland values by raising expectations of future income flows. As a result, farm financial assets grew by 31 percent and farm equity by 32 percent between 2004 and 2012. Agriculture has also benefited from the health of its two primary lenders, rural commercial banks and the Farm Credit System. These two institutions held more than 85 percent of farm debt in 2010. Export growth, the report found, is increasingly dependent on developing countries. The developing-country share of U.S. agricultural exports rose to more than 60 percent in 2011, up from 40 percent in 1998. As for the future, the ERS report said from both a trade and financial perspective, agriculture was and is better positioned than most U.S. industries. “While the world economy is dynamic and increasingly competitive, U.S. agriculture’s natural comparative advantage, low interest rates, competitive exchange rate and solid balance sheet suggests its continued strong presence in world markets for the foreseeable future,” the report concluded. WGC REVIEW WL As the wireworm turns Happy birthday! Narrowing the field The Washington State Department of Agriculture (WSDA) is celebrating its centennial in 2013, signifying 100 years of service to the agricultural community and the public. The WSDA intends to use this milestone to raise awareness of the importance of the state’s farming history and future. When the department was formed in June 1913, it brought eight areas of responsibility under one roof, including programs for state veterinarians, dairies, horticulture, bakeries, fairs, feed and fertilizer and registering stallions and jacks. The WSDA now serves a Washington agricultural industry consisting of 39,500 farms, employing 160,000 men and women, producing more than 300 commodities that contribute $46 billion to the state’s economy. WSDA plans to make the centennial part of its outreach effort involving fairs, farmers’ markets and youth agricultural education programs. Visit the WSDA Centennial Celebration webpage at www.agr.wa.gov for information on coming events. The emergence of biotechnology has been a major driver of consolidation within the crop seed sector of agriculture. In 1994, the four top firms in the “crop seed and biotechnology” sector held just a 21.1 percent share of the global market. By 2009, the share of the market dominated by the top four companies had risen to nearly 54 percent. Growing larger helped the companies share the large fixed costs associated with meeting regulatory approval for new biotechnology innovations. In 2010, eight companies provided 76 percent of all crop seed and biotechnology research. The rising concentration in global agricultural input markets means fewer firms are supplying those inputs to farmers, and fewer firms are responsible for many of the new innovations that drive growth in agricultural productivity. For the last two decades, the price of farm inputs has been rising faster than the prices U.S. farmers receive for their crops and livestock. The largest increase during the 1990 to 2010 period was in crop seed prices which more than doubled relative to the price received for commodities. Although there are downsides to consolidation in terms of only very large firms being able to compete effectively, the global reach of large multinational agricultural input firms could speed up the rate of international technology transfer and help close productivity gaps between regions and countries. WHEAT LIFE JANUARY 2013 WASHINGTON GRAIN COMMISSION At his last appearance before the Washington Grain Commission before he retires in April 2013, Washington State University entomologist Keith Pike had encouraging news on the wireworm front. In the near term, there’s a new name in approved seed treatments available. Nipsit Inside has been added to the current stable of Cruiser and Gaucho. Under high wireworm pressure, high rates of any of these neonicotinoid (known familiarly as neonic) chemicals is worth the cost. Looking at all the results from neonics and checks for the last two years, the advantage of the seed treatment is 2.8 times the check yield under high wireworm pressure: 67 bushels an acre vs. 24 bushels an acre. But not every farmer has high populations of wireworms. Under low wireworm pressure, there is still an advantage, but it is relatively small at 67 bushels an acre for the check, versus 72 treated. The problem with these treatments, said Pike, is that they only slow down the wireworm. He wants an approach that will knock them out. He believes the answer is available—if the EPA would label it. Cruiser plus fipronil, both applied at an extremely low rate to seed, are expected to largely eliminate resident and neonate wireworms in wheat. Pike said a high kill rate should give farmers a three- to fouryear window of protection that is superior even to Lindane, the chemical that was withdrawn from use in 2006. Fipronil is already labeled on potatoes in Washington. “We are proposing a rate for wheat that is about 16 times less than that used on potatoes. Plus, treatment shouldn’t be necessary every year,” Pike said. Stay tuned for the February issue of Wheat Life where Pike will outline his complete wireworm findings, research made possible by the establishment of the $1.5 million Washington Wheat Distinguished Professorship funded by the Washington Grain Commission. 43 WL WGC REVIEW 44 South Asia may be in Australia’s backyard with a $10 to $15 per ton transportation advantage over ports off the Pacific Northwest, but Mike Spier, U.S. Wheat Associates’ (USW) man-on-the-ground in the region, isn’t conceding the important market to our competitors. Spier, who started out in the wheat industry as an export grain merchandiser in Portland before serving as assistant director at USW’s Portland Office, has also been posted to Cairo and Manila. He landed in Singapore in 2009 as USW’s regional vice president for South Asia to take on what is arguably the most important territory in the world. Although he is responsible for 30 countries in the region, six receive 95 percent of all wheat shipments. They include the Philippines, Indonesia, Malaysia, Thailand, Vietnam and Singapore. The five-year average export value of U.S. wheat shipments to the area between 2007 and 2011 was $970 million. In 2011, $1.3 billion worth of wheat, or about 4 million metric tons, was shipped. Indonesia, which at 242 million people is the fourth Indonesia Wheat Imports most All Origins populous 6,000 country in the world, 5,000 purchased 73 per4,000 cent of its grain from 3,000 Canada Australia in 2011/12, Other 2,000 with the U.S. U.S. taking Australia 1,000 15 perTotal cent and 0 05/06 06/07 07/08 08/09 09/10 10/11 11/12 Canada 12 Est. Source: Global Trade Information Service percent. Although soft white has made up the lion’s share of Indonesia’s U.S. imports in the past, hard red spring wheat was the dominant class in 2011/12, followed by soft white and hard red winter. Noodles are the primary end-use product that wheat is made into in the region, but cookies, crackers, pastries, breads, cakes and pasta are gaining acceptance as the middle class grows and diets change. Since 1991, wheat consumption is up 95 percent in Indonesia, 165 percent in Vietnam and 105 percent in Thailand. The milling capacity of these countries is reflected in the rising consumption with Indonesian milling volume increasing 40 percent, Vietnam 45 percent, and Thailand 5 percent. Overall, annual regional milling capacity has increased by 3 million metric tons in the last decade. How can the U.S. continue to grow market share in the important region? Spier said quality must remain a top priority. “Varietal development focused on enduse quality is where U.S. wheats have a competitive advantage,” he said. 1,000 MT WASHINGTON GRAIN COMMISSION Our man in Singapore WHEAT LIFE JANUARY 2013 Northwest wind blows away a record Sure, some utilities complain about the high cost of wind energy, not to mention the fact they don’t really need it, but on Oct. 16, something happened for the first time ever within the Bonneville Power Administration region. At 2:50 a.m., wind generated 3,169 megawatts of energy, four more megawatts than hydro. Newhouse formalizes grain advisory committee Following the Washington State Department of Agriculture’s (WSDA) approval of an increase and change in the way fees are charged for the state Grain Inspection Program, WSDA Director Dan Newhouse announced he is turning the informal grain advisory committee into a formal body. The change comes after concerns and complaints were heard from some industry members about the program’s rule making process and frustration over their perceived lack of involvement. During testimony on raising the inspection fees, Newhouse said the industry universally wanted to maintain the state program and not return it to the Federal Grain Inspection Service. The new fee structure “satisfied the department’s responsibility to immediately address the current inequity in service pricing,” he said, correcting the tier-based structure which saw substantial, tonnage-based discounts to some firms. To ensure the program only keeps the revenue required to operate, the rule builds into the program an equitable discount for future billings based on service usage rather than grain tonnage and “helps guarantee fair distribution of any excess revenue to all customers into the future.” WGC REVIEW Lookin’ good! WL U.S. Drought Monitor Good news, bad news When it comes to eating, Americans are becoming more like cows—grazing throughout the day. That’s the word from a survey on snacking which found 48 percent of consumers snack at least twice a day, seeking foods that provide fuel between traditional meals. The Kellogg Company and General Mills are both taking advantage of the trend by increasing their offerings in the snack category. Special K Cracker Chips from Kellogg’s ranked seventh among new products in 2011, with first year sales of $50.6 million. At General Mills, net sales of the company’s snacks division have been increasing with such offerings as the Wheaties Fuel bar. There is just one problem. According to the “What We Eat in America” dietary survey from the USDA, snacks provide about onethird of all daily calories from solid fats and added sugars. Change heats up energy future For those who went through the Arab oil embargo in 1973, the notion the U.S. will overtake Saudi Arabia as the world’s largest oil producer by 2020 is nothing short of incredible. Meanwhile, U.S. oil consumption is dropping, down 8.4 percent from 2006 while natural gas is coming on strong. The Parisbased International Energy Agency (IEA) expects natural gas will replace oil as the largest single fuel in the U.S. energy mix by 2030. The IEA said the ongoing shift could transform not just energy supplies, but also U.S. politics and diplomacy. Consider, for instance, that while the U.S. now receives less than 20 percent of its oil imports from the Persian Gulf region, it spends between $60 billion to $80 billion to keep Middle East sea lanes open. China, on the other hand, receives half of its oil imports from the Persian Gulf. WHEAT LIFE JANUARY 2013 WASHINGTON GRAIN COMMISSION Look at the drought map of the United S States and while red, representing exL SL SL treme drought, and maroon, representing L L exceptional drought, is the order of the SL SL SL day throughout much of the Midwest, the SL L L L entire Northwest, save for the southeast SL L SL SL SL corner of Oregon, lacks any pigmentation SL at all. That’s because Northwest rainfall L SL this growing season has been abundant L S SL S S S S SL with 65 percent of the dryland wheat L crop rated good or excellent at the end of Intensity: Drought Impact Types: D0 Abnormally Dry Delineates dominant impacts November. At the Dec. 3 meeting of the D1 Drought - Moderate S = Short-Term, typically <6 months D2 Drought - Severe (e.g. agriculture, grasslands) Washington Grain Commission, members D3 Drought - Extreme L = Long-Term, typically >6 months D4 Drought - Exceptional (e.g. hydrology, ecology) reported on the conditions in their districts with Mike Miller, who represents the area around Ritzville, the most succinct. http://droughtmonitor.unl.edu/ “Wet,” he said. Hal Johnson, who farms between Davenport and Reardan reported that he’s gotten a third of his annual rainfall in the last two months, and it’s all gone into the ground. “It’s wonderful,” he said. Dana Herron, who lives in Connell, said 3.2 inches of rain has fallen since planting. “There’s a stellar cheat grass crop coming,” he said. Long range weather forecaster Art Douglas confirmed what farmers have been experiencing. At the Tri-State Grain Growers Convention on Nov. 14, Douglas said the Pacific Northwest will receive plenty of moisture during the winter with drier conditions next spring and summer. “You couldn’t have asked for a better forecast than this one right here,” he told his appreciative audience. 45 REPORTS WA S H I N G TO N G R A I N CO M M I S SION Hard white hope for the future ADM looking to source large amounts of the class locally WASHINGTON GRAIN COMMISSION By Scott A. Yates 46 Bob French is a man of few words which makes his pronouncements at two recent public meetings all the more exciting. Speaking before the Washington Grain Commission (WGC) and at a meeting of the ad hoc TriState Grain Commission (made up of commissioners from Washington, Oregon and Idaho) the grain merchandiser at ADM’s two Spokane area mills unveiled the company’s plan to source major amounts of hard white from the wheat land surrounding Spokane. WHEAT LIFE JANUARY 2013 “We are seeing hard white whole grain growth. Right now, we are using almost all the hard white grown in Washington. We are going to ask producers to increase production this spring in Washington and anywhere tributary,” he said, adding that such growth could continue for the next three to four years. Hard white, for those who aren’t familiar with the six classes of wheat grown in the U.S., is the newest entry. Considered a replacement for hard red winter when it came on the scene in 1990, hard white has a sweeter taste, a higher extraction rate and no red bran. All of these attributes makes the class an especially good choice for turning into whole wheat products. Nevertheless, the class has largely languished for the last 20 years. Partly that’s because during the first year large acreage was planted in the Midwest, rain fell during harvest and the hard white variety then in production sprouted. As Darrell Hanavan, executive director of WGC REPORTS the Colorado Wheat Administrative Committee put it, “We have pretty much been able to overcome the sprouting issue. We haven’t, however, been able to overcome the farmers’ memory of the problem.” Many within the industry have likened hard white’s fortunes to a question of the chicken or the egg, as in which comes first, adequate supplies or a market? Although Asian Pacific customers have begged for a wheat to compete with Australia Prime Hard, they haven’t been willing to pay anymore for it, and they won’t contract it. In the past, it’s been estimated that 240 million bushels are needed to adequately jump-start the class. Although various initiatives and companies have attempted to break the hard white logjam, Nebraska-based ConAgra was the first company to cash in beginning in 2004. Using a proprietary method of milling which results in hard white whole wheat flour that is virtually indistinguishable from refined flour, the company set about carving out a domestic niche for itself. Its hard white Ultragrain products are touted as having “White Flour Appeal with Whole Grain Nutrition.” In cooperation with the Colorado “I’ve been farming for a long time and this is the most exciting development in a while. The fact ADM is making a concerted effort to bring more hard white into their Spokane mill is really just the tip of the iceberg. If we can generate enough supply, we can finally access the export market.” — Hal Johnson WGC commissioner Wheat Administrative Committee, ConAgra has developed a premium program for a specific variety which pays farmers 30 cents above HRW price simply for delivering the class and up to another 60 cents if certain premium thresholds are met. It’s expected that 125,000 acres of hard white under the Colorado premium program will be grown in 2013. French didn’t mention any premiums during his presentations, but for farmers within a certain radius of Spokane, simply being able to deliver wheat to a nearby user is a bonus. Hal Johnson, a WGC commissioner from the Davenport area, said he intends to convert most of his protein wheat acreage to hard white within the next several years. “I’ve been farming for a long time and this is the most exciting development in a while,” Johnson said. “The fact ADM is making a concerted effort to bring more hard white into their Spokane mill is really just the tip of the iceberg. If we can generate enough supply, we can finally access the export market. What we really need now is a hard white winter variety.” Arron Carter, Washington State University’s winter wheat breeder, said he’s had conversations with French about ADM’s desire to source more hard white. Currently, about 20 percent of his program’s efforts are devoted to hard white winter wheat development. The relatively small emphasis is due to hard white varieties developed and released in the past which have never found a home. “We have a full advanced yield trial of hard white winters being conducted in Davenport this year, with all of the lines planted that have shown promise in our Pullman plots. Successful performance in Davenport, including disease resistance, agronomic performance and an end-use quality that is acceptable to ADM and its end users, will accelerate releases,” he said, adding there are already a couple of hard white winter varieties in statewide testing. Carter is waiting on the end-use quality report for those varieties to determine if they meet the needs of ADM. WASHINGTON GRAIN COMMISSION The most hard white ever harvested was 900,000 acres in 2003, during a three-year program when the federal government paid farmers an extra 30 cents a bushel to grow it. In 2012, depending on whose numbers you believe (the U.S. Department of Agriculture’s or U.S. Wheat Associates’), between 23.7 million bushels and 28.5 million bushels of hard white were harvested off slightly more than 500,000 acres. WL Idaho has been a pioneer in hard white production, beginning in 1997 with the establishment of the Promar Select Cooperative, a group intended to market the variety 377s. The effort, while initially promising, ultimately failed in part because the early variety didn’t meet the specifications of the marketplace. Nevertheless, Idaho retains the title of being the largest producer of hard white in the nation, much of it going into General Mills and Horizon milling facilities in southern Idaho and Utah. In 2012, the state produced about 10 million bushels of hard white, nearly half of the national total. The WHEAT LIFE JANUARY 2013 47 WL WGC REPORTS majority of the wheat is grown in southern Idaho. WASHINGTON GRAIN COMMISSION Gordon Gallup, chairman of the Hard White Wheat Committee of U.S. Wheat Associates and an Idaho farmer from Ririe, said General Mills currently pays 50 cents over hard red spring for his hard white production. Although it is graded on a 14 percent protein scale, the company is happy at 13 percent and still meets the premium. “I’ve been raising hard white for 20 years, and when I first started off, the mills didn’t want it, and the elevators didn’t want it. They were saying don’t even bother to bring it in. Now look at us. We have a huge demand for hard white in southern Idaho,” Gallup said. Fulfilling domestic needs, however, is only the first step. The goal of export-oriented states like Washington is to develop a critical mass of hard white which will enable consistent cargoes to the Pacific Rim. Glen Squires, chief executive officer of the WGC, pointed out that U.S. Wheat Associates estimated the market for hard white around the world at more than 514 million bushels, of which 165 million bushels would be new business, not replacement of current classes. As comparison, Washington’s total wheat production in 2012 was 145 million bushels. “If we can use the interest that ADM and other companies have shown in hard white to leverage increased production throughout the Northwest, then the critical mass necessary to export consistent cargoes shouldn’t be far behind. And that would be a tremendous boost for the region,” he said. Tony Rizzuto, president of Rizzuto Foods in Spokane, shows off one of the bags of whole grain hard white wheat he sources from ADM’s Spokane mill. The flour is used to make whole grain pizza and breadsticks for school lunch programs. A tasty trend Spokane food company bets on hard white wheat By Scott A. Yates Tony Rizzuto, president of Rizzuto Foods, is excited by the growth potential of his company’s whole grain hard white wheat frozen pizza products. But the cherry on top of the sundae is the fact that the flour his company uses comes from a local mill that sources its grain from local farms. That’s because selling food today is about more than the food. It also involves concepts of a reduced carbon footprint, social responsibility and sustainability. Being able to market a product with ingredients that haven’t traveled thousands or even hundreds of miles is a selling point nearly as important as taste. “Sustainability for all of us has become a mainstream term. Whether you’re a conservative or liberal, everybody can get behind the concept of sustain- 48 WHEAT LIFE JANUARY 2013 WGC REPORTS WL ability,” Rizzuto said, adding that today’s consumers are really interested in where their food comes from. Today’s business, which Rizzuto opened on a shoestring in 1991, mostly supplies food service companies across the nation. It is a long way from Rizzuto’s pizza initiation. In the 1960s, his father traveled the region’s back roads delivering Little Joe’s Pizzas out of a van. In the summers, Rizzuto traveled with his father, watching wheat fields flash past outside the window, thinking they were the source of the flour his father used to make pizza. He can still remember when he was told the flour came from Great Falls, Mont. “It was something that always stuck in my psyche. Why is that?” he wondered. (Above) Dough heads down an equipment line at Rizzuto Foods prior to being pressed into the familiar pizza shape, then partially baked and frozen. (Left) After being partially baked, called parbake, a worker at Rizzuto Foods packs the finished pizza product. (Below) Unlike food companies that sell to retailers, Rizzuto Foods largely sells through food service companies. Part of helping these companies remember their supplier means labeling every side of the boxes, something Tony Rizzuto calls “back of the house branding.” WHEAT LIFE JANUARY 2013 WASHINGTON GRAIN COMMISSION In the case of Rizzuto Foods, its frozen pizza products are manufactured in a facility located in an industrial area of east Spokane. The operation’s exterior is reminiscent of a cartoon-inspired Arabian tent that looks small on the outside, but upon entry, becomes a spacious palace. Okay, the business isn’t a palace, but it is larger than you think, and it smells delicious. Connected by long corridors, the company’s employees work several production lines simultaneously, and large coolers and freezers hold dozens of boxes of pizza crusts and breadsticks ready for delivery. 49 WL WGC REPORTS Today, the flour Rizzuto uses hasn’t traveled more than a few miles. In fact, if you know where to look from the street in front of the business, you can see the storage elevators of ADM’s Spokane mill which delivers bulk and bagged flour. WASHINGTON GRAIN COMMISSION Based on an average yield of 64 bushels an acre, Rizzuto estimates his business uses the equivalent of about 2,100 acres of wheat annually. While hard white whole wheat flour is a fraction of his usage now, Rizzuto wants to believe it will be used in 100 percent of the company’s products in the future. The pace of change has already been startling. Until two years ago, Rizzuto Foods was using hard red wheat in almost its entire product line, and whole wheat was a footnote. But then, as the obesity crisis in the U.S. mounted, the notion of serving children a healthier diet as part of school lunch programs took hold. “When we see a trend, it is easy for us to react and get something to the market quickly. We are not this big, cumbersome, slow-moving corporation. We are a nimble company that can see opportunities, grasp them and go to market with them,” Rizzuto said. “As schools encouraged fiber in children’s diet, we introduced a whole wheat line of products aimed at the national school lunch program. That’s what developed the hard white whole wheat market for us.” The direct advertising Rizzuto uses at food shows emphasizes that its pizza and breadstick items are specially formulated to be whole grain rich. “These products may not look or taste like whole grain, but rest assured that the Pacific Northwest-grown white whole wheat is rich in fiber and sweeter tasting than traditional whole wheat,” says one handout. Another testifies that “Eastern Washington wheat farmers grow the finest white whole wheat in the world.” Currently, bread products sold into the school lunch program requires them to be 51 percent whole grain, but in 2015, that will be increased to 100 percent. Rizzuto said not only does the hard white flour give better volume when baked (the pizza is par-baked, or partially baked before being frozen), it has a sweeter taste as opposed to hard red. For his business, Rizzuto said hard white wheat sourced locally represents the best of all possible worlds. “There is the feel-good side of the equation, and there is the fiscally sound side of the equation. It’s not very common when both sides meet,” he said. Boxes of Rizzuto Foods’ pizza-oriented products are frozen before being sent to customers across the nation. 50 WHEAT LIFE JANUARY 2013 WGC REPORTS WL Middle in the Hawaii provides ideal venue to host PNW’s key customers By Glen W. Squires CEO, Washington Grain Commission Compare the flow of wheat to the flow of water and you have the head waters—farmers—whose grain gushes into inland terminals—the tributaries—that flow into larger rivers—the export terminals—that then empty into the ocean—the buyer/miller. Ordinarily, there is no leap-frogging through the process, but at the first-ever North Asia Marketing Conference held in early November in Honolulu, U.S. wheat industry staff and farmers joined America’s most consistent wheat customers from the Pacific Rim to discuss the trade’s complete hydrology—the market—together. The meeting, held in the central Pacific, saw more than a hundred millers and buyers from Japan, South Korea and Taiwan gather to listen to and discuss the commodity that is essential to feed their countries. To say the North Asian region is important to Eastern Washington farmers is an understatement. Buying 47 percent of U.S. white wheat exports in 2011/12, the market is an absolutely crucial foundation to our regional wheat sales. Other classes of wheat as well depend on exports to these three countries. Thirty-five percent of U.S. hard red spring exports and 13 percent of hard red win- ter exports—all from Pacific Northwest ports—are shipped westward. Demonstrating the Washington Grain Commission’s renewed emphasis on marketing, planning for the inaugural event got off the ground with initial support from funding provided by Eastern Washington farmers through their assessments on each bushel of wheat. Other states, including Oregon and Idaho, soon saw the advantages of the meeting and joined our ranks. In all, seven states sent representatives. U.S. Wheat Associates’ (USW) domestic and oversea staff with their expertise, connections and program contributions facilitated the event that not only provided valuable marketing, trade and crop information, but also served as a forum to thank these important buyers individually for their commitment and loyalty. An added dimension of the conference was the inclusion of PNW export company representatives in the program. WASHINGTON GRAIN COMMISSION Meeting Randy Suess, WGC board member and immediate past chairman of USW, opened the conference and highlighted the excellent relationship between U.S. farmers, millers and buyers throughout North Asia. For several of the Pacific Rim attendees, it wasn’t the first time meeting Suess. He has hosted several of them on his farm in the past. WHEAT LIFE JANUARY 2013 51 WL WGC REPORTS WASHINGTON GRAIN COMMISSION Glen Squires, chief executive officer of the Washington Grain Commission, used the North Asia Marketing Conference as an opportunity to reiterate the advantages of buying soft white wheat, the class he referred to as “your trouble-free wheat choice.” As a former teacher, Randy Suess is all about education. The immediate past chairman of U.S. Wheat Associates showed photos of life on his farm to acquaint North Asian buyers with the reality of farming in the Northwest and elsewhere in the U.S. After his presentation on wheat flour blending with an emphasis on soft white and club wheat, Art Bettge, a former cereal chemist with the Agricultural Research Service who now serves as a consultant to the grain industry, speaks to a North Asian wheat buying official. Presentations during the two-day conference covered topics solicited by and for the participants. To enhance two-way communication and understanding, a market outlook for each of the three countries was provided by USW country directors. Other topics included a look at the volatility of the markets, mega trends in grain and the implications they have on wheat. Baking industry developments, an update on biotechnology, advancement in the hard white class and trade policy with specific attention to the implications of Canadian procurement and marketing changes were also discussed. A crop quality seminar component was included at the conference. Detailed production and crop quality information on each U.S. wheat class was provided. Dr. Senay Simsek of North Dakota State University provided information on HRS. Royce Schaneman, executive director for the Nebraska Wheat Board presented HRW data. Pacific Northwest-grown soft white and club wheat were covered by myself. A special presentation, promoted by the WGC, included a seminar by Art Bettge, retired USDA/ARS cereal chemist. Bettge’s discussion regarding the effectiveness and profitability of flour blending—research sponsored by the WGC—drilled down to the molecular level about why mixing soft white wheat with the protein classes of wheat boosts end-use product volume. He also provided insight into the special characteristics possessed by club wheat. Approximately 80 percent of the club wheat in the export market is utilized by Japan and Taiwan. These markets specify an 80/20 blend of soft white and club wheat known as Western White wheat. The meeting and conference topics were well received with a good exchange between participants and presenters. Wheat farmers from several states, including several WGC commissioners, attended and took advantage of the opportunity to visit directly with millers/buyers. Steve Claassen said customers were tight-lipped and kept to themselves initially, but by the end of the conference, competitors were opening up. “It’s always a good idea to share ideas. It creates a synergy you couldn’t create on your own. Overall, I thought there was a very good response, and I sure couldn’t complain about the venue,” he said. Hawaii wasn’t chosen as the venue for the North Asia Marketing Conference for its weather or its beaches, but rather because of the ease of travel for representatives from Japan, Korea and Taiwan, as well as those from the U.S. Most of the time was spent inside the hotel conference room, but (from left) WGC commissioners Mike Miller, Steve Claassen and Tom Zwainz, used a break to step outside. 52 WHEAT LIFE JANUARY 2013 Tom Zwainz, chairman of the WGC, said he thought the conference went well, although a few of the topics didn’t strike home to the North Asian buyers. At least not yet. “Judi Adams, president of the Wheat Food Council, presented on the problems we are confronting in the U.S. with so-called experts criticizing wheat as a contributor to obesity. I don’t think, at this point in time, our Asian customers WGC REPORTS Years working on wheat issues form strong bonds, and while most of the North Asian Marketing Conference was about serious issues, there was time for fun, as illustrated by this moment between Steve Wirsching (left), vice president of U.S. Wheat Associates’ Portland office, and Randy Suess, a Washington Grain Commissioner. Representatives of Northwest wheat and grain commissions as well as U.S. Wheat Associates’ staff, share a breakfast with officials from Japan’s Ministry of Food and Fisheries. The agency buys almost all the wheat imported into the country and then sells it to local companies. even have that on their radar,” he said. The WGC initiated a breakfast meeting with high ranking officials at Japan’s Ministry of Agriculture and Forestry (MAFF) that buys almost all the country’s wheat. The meeting provided wheat commissioners from the Northwest states the opportunity to personally thank MAFF officials for the country’s long-term commitment to PNW soft white and club wheat. They also answered specific questions about the crop and farming in the region. Just as water flows over and around obstacles effortlessly, the feeling of openness that ultimately emerged and permeated the conference hall and corridors, served as a refreshing tonic to the competition that is an integral part of the system that serves us so well. It is clear this new marketing approach is an opportunity that should be encouraged in the future. Wheat review set for February The Washington Wheat and Barley Research Review has been set for Tuesday, Feb. 19, and Wednesday, Feb. 20, in Pullman at the Holiday Inn Express. A room block has been set up for hotel rooms on Feb. 19 at the Holiday Inn Express. Guests may make their reservations by calling either 1-888-HOLIDAY (465-4329) or the hotel directly at (509) 334-4437. You must identify yourself as being with the Washington Grain Commission room block in order to receive the rate of $115 per night. The room block will be held until Jan. 19. The event will begin at 10 a.m. on Feb. 19 and lunch will be provided. The presentations will continue on Feb. 20 from 8 a.m until noon. Times are approximate. If you are interested in receiving additional information about the 2013 Wheat and Barley Research Review, please email Mary Palmer Sullivan at mary@ wagrains.com. WASHINGTON GRAIN COMMISSION From left, Tom Zwainz, chairman of the Washington Grain Commission, Mike Krueger, president of The Money Farm, a North Dakota commodity consulting firm, and Matt Weimer, U.S. Wheat Associates’ regional vice president based in Hong Kong, share a laugh during a break at the North Asia Marketing Conference. WL Office space for rent 2702 W. Sunset Blvd., Spokane Rental space is 3,000 square feet in the lower level of the Washington Grain Commission building. Asking $16 per square foot. Address is close to downtown Spokane and airport. Great parking with good visibility and access. Contact Joel Crosby at (509) 535-7400 if interested. WHEAT LIFE JANUARY 2013 53 WL WGC REPORTS Snake oil diets can bite By Art Bettge In the 1800s, snake oil salesmen traveled America, hawking potions touted to cure “what ails you” in small, reasonably priced, easy-to-use bottles. And sometimes, at least in the short term, the concoction did make people feel better, especially those that contained cocaine or alcohol. Or both. WASHINGTON GRAIN COMMISSION In the 1950s, diet pills were popped by those wishing to lose weight easily. Sure enough, the weight peeled off, but sleepless nights followed because the pills were actually amphetamines or “speed” in today’s lexicon. Both of these cases illustrate the desire by the public for easy, simple and painless solutions to complex problems. It’s a phenomenon being seen again with the advent of diets that base themselves on the elimination of a single food, or food group, to achieve rapid, easy weight loss. Today’s miracle elixir diets include “Wheat Belly” a book by William Davis and the related paleo diet. Each focuses on the elimination of wheat (in the case of “Wheat Belly”) or cereals in general (paleo diet). Sadly, as was the case for snake oil salesman, the claims work for a while, but are based on erroneous information that is frequently “cherry-picked” from scientific literature, unfounded research conclusions and even outright deception. Various arguments are put forth in “Wheat Belly,” all of which can’t be addressed here. One contention is that eating more wheat invariably leads to an increase in waist size and obesity, hence the title of Davis’ book. Even a passing scrutiny reveals this to be false. In Morocco, for example, per capita wheat intake is four times that of the U.S. Yet the obesity rate in Morocco is less than half that of the U.S. If Davis’ theory is true, everyone in Morocco, or other areas where wheat is a dietary staple, should be enormous. The truth is that if you eat more calories than you burn off, you gain weight. Between 1985 and 2000, the average daily caloric intake in America increased 12 percent (300 calories) per day without a concomitant increase in physical activity. This can only lead to weight gain. Moderation, exercise and a balanced diet are the true keys to health and weight loss. Davis also contends that wheat produces addictive peptides that cause people to overeat. It is true that wheat proteins are broken down in digestion into smaller fragments called peptides. While some of these peptides do attach to opioid receptors in lab tests, so do the protein-converted peptides in milk, spinach, meat and rice, among many other foods. While this causality has only been demonstrated in the lab thus far, should the effect be demonstrated in living organisms, the result would likely be a feeling of well being associated with eating, generally referred to as satiety. And when the feeling of satiety dissipates, hunger ensues. So ingestion of wheat and other foods with the same mechanism should actually decrease the desire to overeat. Davis also argues that modern wheat breeding has produced a genetically altered version of wheat that contains “new” proteins (gliadins) that have toxic effects. But gliadins have always been a part of wheat’s genetic complement. There is nothing new about them. Any toxic effects are due to 54 WHEAT LIFE JANUARY 2013 A basic premise of the paleo diet is that the genotype of the modern human, homo sapiens, developed between 1.8 million and 11,000 years ago and is now fixed and immutable. As such, the diet’s premise is that the human digestive system is not capable of processing cereals. This view does not consider that starving early humans would eat anything that sat still long enough to be devoured, including wild grass seeds, early, undifferentiated cereals, legumes and anything else possessing useful calories. Cereal grains had not yet been selected for agronomic traits (like yield and disease resistance), but they certainly existed in a pre-agricultural form and were certainly consumed. The human genome is not fixed. It is still evolving. Had departure from the array of paleo diet food products been detrimental to humans, there would have been active selection against cereal and agricultural-based food products. The historical results have been just the opposite. For example, genes that allow lactose to be digested by adults were not prevalent in humans a millennia ago. As animal husbandry increased, along with fixed, agriculturalbased farms and villages, the adult lactase genes increased to a high percentage in populations in Europe. And the percentage of people worldwide who have this adult lactase gene continues to increase today. Wheat Belly and the paleo diet are today’s version of the potions sold by snake oil salesman 150 years ago. They take advantage of the public’s penchant for easy remedies to complex problems. While simple solutions can provide an easy way to lose weight in the short-term, the results are apt to be short-lived and include unnecessary health impacts. This illuminates a larger flaw in society—the lack of useful science education that allows citizens to think critically and see through trumped up schemes. What is the bottom line? For those who are not afflicted with 220 10 100 0 2020 20 2010 340 2000 30 1990 460 1980 40 1970 580 Year U.S. wheat consumption U.S. adult obesity rate Moroccan wheat consumption Moroccan adult obesity rate If one examines the trends in the chart above, the argument that wheat is the major contributor to obesity is incorrect. In the chart, U.S. statistics are in blue, Moroccan statistics are red (data derived from Centers for Disease Control and indexmundi.com). Solid lines are wheat consumption per capita, and dashed lines represent the adult obesity rate (not overweight; just obese - >20% above what is normal weight). Per capita wheat consumption in the U.S. has remained steady or decreased, while obesity rates are rising. The implication of the data is that increased wheat consumption does not increase obesity and that the obesity increase is from calories from other foods or a sedentary lifestyle. In countries with very high consumption of wheat, those in N. Africa and the Middle East, obesity rates are much lower. In the case of Morocco, per capita wheat consumption is more than 4 times that of the U.S., yet the adult obesity rate is less than half of that in the U.S. The number of products containing wheat may be greater in the U.S., but the basic products that are primarily wheat remain the same (i.e. bread). If the “Wheat Belly” thesis that wheat alone makes people fat is true, almost every Moroccan would be obese. Total wheat consumption is holding steady in the U.S., yet the rate of obesity rises. Obviously, something else is causing the incidence of obesity to rise. Essentially, waist size increase and obesity are due to broad-based consumption of too many calories without regard to the source of the calories. WASHINGTON GRAIN COMMISSION The paleo diet proponents espouse the notion that the human genome and digestive system are evolutionarily incapable of dealing with cereal grains in the diet, and that the consequence of cereal consumption is at least being overweight, if not obese. Along with this view, they believe that subsisting on the limited diet frees people from “diseases of affluence” such as diabetes, cardiovascular issues, gout, obesity, etc. This view, however, neglects the fact that our ancestors died young, typically before the age of 30 and hence had no time to manifest “affluence-associated” diseases. 50 1960 The paleo diet is another diet fad that follows many of the misperceptions of “Wheat Belly.” The paleo diet’s dubious underpinning is that as humans evolved, they did not eat cereal grains. According to the diet’s adherents, paleolithic consumption was limited to fruits, vegetables, meat, insects/grubs and roots/tubers and excluded grains, legumes, potatoes, dairy products, refined salt, refined sugar and processed oils. 700 WL Obesity rate (adult % pop.) the fact that some specific gliadins have been implicated in the auto-immune disease, celiac disease, that afflicts 1 to 2 percent of the population. Per capita wheat consumption (lb/year) WGC REPORTS celiac disease, wheat contributes fiber, vitamins and minerals in a vast array of food products that are not only tasty and delicious, but also promote good health and vitality. Art Bettge is a cereal chemist who spent 32 years at the Agricultural Research Service’s Western Wheat Quality Lab in Pullman. He is now a consultant with ADB Wheat Consulting. As part of this article, Bettge spent months sifting through thousands of pages of documents related to wheat elimination diets. For a more technical version of Bettge’s research, please see his paper at www.wawg.org. WHEAT LIFE JANUARY 2013 55 WL WGC REPORTS It’s all a matter of pH WASHINGTON GRAIN COMMISSION Acidic soils, aluminum toxicity are on the rise in Eastern Washington, northern idaho Does your wheat stand start a little slow? Are plants stunted? Do they look yellow? Are there places in the field that are thin or even bare? Potential culprits for these symptoms include the soil-borne diseases Rhizoctonia or Pythium, pests such as nematodes or wireworms, herbicide carryover or even inadequate or skipped fertilization. If, however, you rule out all these factors, it might be time to investigate aluminum toxicity, a menace that is increasing every year in areas of the Pacific Northwest. By Kurt Schroeder WSU Research Associate Declining soil pH in Eastern Washington and Northern Idaho caused by the annual application of fertilizer needed to grow crops, has thrust aluminum toxicity to the fore as an emerging regional production issue. Prior to farming, soil pH in much of the Palouse was near 7 (neutral), and aluminum was tightly bound to soil particles or organic matter. As the pH begins to decline below 5.5 (more acidic), some of this aluminum becomes freely available to the plant. As pH declines even more, the free aluminum in the soil increases dramatically. Unfortunately, this free form of aluminum is toxic to plants, interferes with normal growth and results in a poor root system. This reduces the ability of the plant to take up water and nutrients and results in reduced stand and stunted plants that are often pale in color and produce fewer tillers and smaller heads. The pH of soil is declining because the nitrogen within the fertilizers farmers use undergoes natural chemical reactions in the soil, with the help of beneficial microorganisms that convert ammonia and ammonium forms of nitrogen into nitrate. Unfortunately, during this conversion process, hydrogen ions are released into the soil leading to soil acidification. Low soil pH not only frees up aluminum and leads to toxicity in plants, it also limits the availability of key plant nutrients (nitrogen, phosphorus, magnesium, molybdenum). By Mike Pumphrey WSU Assistant Professor While pH has been dropping throughout the region, the acute symptoms of soil acidity and aluminum toxicity have begun to emerge in locations that were historically forested. That’s because native soil in forested locations had a lower starting pH than prairie soil when active farming began on these sites. Forested soils also had lower organic matter when initially broken out, making them more vulnerable to shifts in soil pH. Contrary to what is observed with low pH and increasing free aluminum in formerly forested soils, low pH in prairie soils in Eastern Washington and Northern Idaho do not necessarily have high concentrations of free aluminum. That’s because these prairiederived soils have a high base saturation, thus low exchangeable aluminum. Or to put it more simply: even with soil pH below 5.5 in prairie soils, the quantity of free aluminum is not high enough to cause toxicity to plants. For now, anyway. 56 WHEAT LIFE JANUARY 2013 WGC REPORTS So how do we solve this problem? There are several solutions being examined. The most likely management strategies include planting tolerant varieties of wheat, incorporating aluminum-tolerant crops into the rotation and lime applications to mitigate soil acidity. Fortunately, some wheat varieties and emerging breeding lines are tolerant to aluminum-toxicity. These plants have genes that secrete organic acids, such as malate, from their roots to bind with the toxic free aluminum, preventing plants from taking it up. Overall, there was good agreement with our initial findings. Based on our most recent data (see table 1), varieties highlighted in blue with a rating of 2 or less would be suitable for growing in fields with known aluminum toxicity issues. All other varieties are sensitive and would be risky to plant in these fields. A winter wheat trial was seeded in the fall of 2012 to gather similar information on winter varieties. The availability of tolerant crops and our growing knowledge about aluminum tolerance within PNW wheat varieties, however, does not address the Hard Red Most crops grown in dryland production areas of Eastern Washington and Northern Idaho are quite sensitive to low pH and aluminum toxicity, including wheat, barley, peas, lentils, canola, mustard and camelina. However, oats and triticale are quite tolerant of these conditions. In side-by-side comparisons in farmer fields, winter triticale regularly outyields moderately tolerant wheat with yields often twice that of the wheat. Yield Rating Variety (bu/A) (0 - 5) Babe 402 Whit 402 WB-1035CL+ 402 WA 8162 39 2 IDO687 37 2 IDO671 362 Nick 362 IDO686 33 2 Alturas 322 Alpowa 312 JD 124 Zak 115 Wakanz 11 5 Diva 95 Louise 8 5 WA 8161 7 5 IDO599 75 WA 8166 45 2 WA 8165 43 1 WA 8163 39 2 Tara 2002 39 1 IDO694 38 2 WB Hartline 36 3 Clear White 515 35 2 LCS Albany 35 2 Otis 343 LCS Powerplay 30 2 Expresso 26 3 Hank 204 LCS Buck Pronto 18 4 BR7030 114 Scarlet 104 Glee 104 Jedd 95 Bullseye 8 5 WB-Fuzion 7 5 Kelse 75 Jefferson 75 Hollis 65 Lassik 65 SY605 CL 5 5 WASHINGTON GRAIN COMMISSION Following the initial Oklahoma screen, a pilot study was initiated in 2011 at a site in Spokane County documented to have low pH and aluminum toxicity problems. In 2012, Washington State University spring wheat breeder Mike Pumphrey expanded the screening to include 24 varieties of soft white spring wheat and 30 varieties of hard red spring wheat. Table 1: Varieties suitable for growing in fields with known aluminum toxicity issues Soft White A preliminary screen of PNW varieties for aluminum tolerance was conducted by Brett Carver, wheat breeder at Oklahoma State University. He discovered we do indeed have resistance in some of our spring and winter wheat varieties. WL Varieties suitable for growing in fields with known aluminum toxicity issues in blue, those unsuitable in pink. It doesn’t take a microscope to determine which wheat plant roots were stunted by aluminum toxicity. WHEAT LIFE JANUARY 2013 57 WL WGC REPORTS WASHINGTON GRAIN COMMISSION underlying problem of low soil pH. The tolerance is quantitative, so as soils become more acidified and the quantity of free aluminum increases, even the yields of tolerant wheat varieties and alternative crops will decrease. A longer term solution to the problem should include some form of lime application, either in-furrow or broadcast and then incorporated into the soil. For the past two years, studies have been underway in the Rockford area (10 miles south of Spokane) to test the benefit of applying lime to both aluminum-tolerant and sensitive wheat. In order to demonstrate that lime application increases wheat yields, 10 tons of lime an acre (15 tons dolomite per acre) was applied in November 2010. Spring wheat varieties were planted in 2011 and 2012. Each year, the limed plots in combination with an aluminum tolerant variety showed significant yield increases (28 percent to 46 percent). Little effect was seen with the sensitive variety in 2011, although there was a nearly three-fold increase in yield in 2012. Overall, there was a substantially higher yield using an aluminum-tolerant variety over a sensitive variety. Although the quantity of lime applied in the pilot study is not economically feasible on a large scale, it demonstrates that yields can be boosted by its application. The exact amount of lime needed to achieve optimal increases in pH without busting a farmer’s budget is the subject of future research. As an alternative to broadcast applications of large amounts of lime, a pilot study was initiated in the summer of 2012 examining in-furrow applications of lime. Here, prilled calcium carbonate was added with the seed at planting at a rate of 150 pounds an acre. Several aluminum tolerant and intolerant varieties were included. Although there was not a noticeable 58 WHEAT LIFE JANUARY 2013 Triticale, which is a cross between wheat and rye, is naturally more tolerant to aluminum toxicity than most wheat varieties. The winter wheat on the left is slightly tolerant. Washington farmers are lucky the problem with aluminum toxicity is not widespread throughout Eastern Washington. Reclaimed forest soil tends to be hardest hit by the phenomenon which can decimate susceptible varieties as shown in this screening plot. Not all varieties are created equal when it comes to aluminum toxicity. Louise, a soft white, and Jedd, a hard red, are among the varieties that are extremely sensitive. WGC REPORTS WL difference between the treated and nontreated areas within the field, an average gain of 3.3 bushels per acre was observed across all varieties. Looking at the tolerant varieties, Tara 2002 and WA 8166, a gain of 5.7 bushels per acre was attained. The ideal solution for managing soil acidity and associated aluminum toxicity is to plant a tolerant crop or wheat variety and integrate some type of lime application. This will not only provide the greatest improvement in yield, but the addition of lime will improve fertilizer uptake efficiency of the plants and increase the availability of other micro- and macronutrients in the soil. More research is required, however, to determine which method(s) of lime application will result in improved plant health and yield while proving economical. (Above) A hard red variety, like Tara2002, or a soft white variety, like Babe, are naturally resistant to aluminum toxicity. (Below) This is not what you want your soft white spring wheat to look like after tillering, a result of aluminum toxicity. For farmers who believe soil acidity and aluminum toxicity may be a problem in their fields, the first step is to get a soil test for pH. If the pH is below 5.5 and the field is in a historically forested area, it is possible that aluminum toxicity is a problem. If the pH test includes exchangeable aluminum as a percentage of the cation exchange capacity, verify that it is under 60 percent. Exchangeable aluminum over 60 percent can result in aluminum toxicity. WASHINGTON GRAIN COMMISSION Historically forested areas are harder hit by aluminium toxicity issues. Further evaluations need to be completed to determine optimal rates for the in-furrow application. The quantities used in this study were minimal and will not provide much benefit toward changes in the soil pH, but it could offset the acidification of fertilizer added for that year, and perhaps alter the seed zone during establishment. Aluminum toxicity can be verified in crop by examining the roots for characteristic twisting and short, stubby roots. It is also wise to have a mature plant’s tissue tested for aluminum. Concentrations above 200 ppm (mg/kg) indicate aluminum toxicity. WHEAT LIFE JANUARY 2013 59 WHEAT WATCH WASHINGTON GRAIN COMMISSION Hold on tight for commodity roller coaster By Mike Krueger WASHINGTON GRAIN COMMISSION The commodity markets have continued to be very erratic with volatility still the central theme. The December USDA supply and demand revisions reduced the U.S. wheat export forecast by 50 million bushels and increased U.S. wheat ending supplies by 50 million bushels. The market took that news as bearish, and wheat prices plummeted the day of the report. It is ironic that the U.S. wheat export forecast was reduced at almost the same time that U.S. wheat export sales finally started to show some signs of life. Egypt purchased U.S. wheat in each of its two most recent export tenders, including soft white wheat and soft red winter wheat. These were the first purchases of U.S. wheat by Egypt this marketing year (that started on June 1). Until this point, Russia and other Black Sea countries plus France had been very aggressive (meaning cheap) sellers to Egypt. U.S. wheat values are now competitive in the world wheat market place. In fact, U.S. wheat prices are now “cheap” into some markets, and we expect the pace of U.S. wheat exports to improve in the weeks and months ahead. World Wheat Outlook (mmts) The primary reason that U.S. wheat values are now competitive is that exportable supplies among the other major world wheat exporting countries have been nearly exhausted in the first six months of this marketing year. The table below shows a picture of what has happened to world wheat production and consumption over the past three marketing years. The interesting aspect of the table is that nearly all of the world’s wheat production problems in 2012 occurred among the major exporting countries, including Russia, the Ukraine and Kazakhstan. Those problems are continuing today with conditions in Argentina too wet to get the wheat harvest completed. Heavy rains continue to reduce Argentina’s wheat quality, and odds are increasing that the government there will again reduce wheat export licenses. Simply put, world wheat supplies have declined to a level much lower than anyone expected just 60 days ago. The second issue that is gaining more attention is that many key parts of the Northern hemisphere winter wheat production regions are off to a questionable start to their growing seasons because of very dry conditions. This includes much of the U.S. 2010/11 2011/122012/13 Production 652 696651 Usage 655 Feed 113 141132 Ending Supplies 113 141 132 Ending Supplies Major Exporters * 74.7 68.1 50.6 698 978 *U.S., Canada, EU, Argentina, Australia, Russia, Ukraine, Kazakhstan Source: USDA 60 WHEAT LIFE JANUARY 2013 WHEAT WATCH hard red winter wheat area plus a significant portion of the Black Sea region and some areas in the EU. The U.S. produced about a billion bushels of hard red winter wheat in 2012. It now appears the 2013 hard red winter wheat crop could be as small as 700 million bushels, and it could be even smaller. The market might choose not to deal with production issues until crops break dormancy next spring, but the drought has already caused irreversible yield loss. The odds of having a big world wheat crop in 2013 are very small. The next critical USDA reports will be released on January 11. These reports will include: • Winter wheat plantings. This report should show increased hard red and soft red winter wheat acres from 2012, but the numbers should be somewhat muted by the drought. be. The keys will be in where the USDA puts harvested acres. Bullish analysts believe the drought should have resulted in greater abandonment and fewer harvested acres. • Quarterly stocks. This report might be the most important one until we see acreage intentions at the end of March. The key number will be the Dec. 1 corn stocks. Some analysts believe this will be a bullish number. That belief is based on expectations for smaller harvested acreage and larger feed usage than currently forecast by the USDA. Bearish analysts don’t believe the USDA will reduce the 2012 corn production estimate. Obviously, there are other factors that will continue to affect markets. The fast approaching U.S. fiscal cliff and the implications of Congressional action on taxes and spending might have an impact on commodity investments. Certainly the weather and crop production estimates in South America will be key ingredients in oil seed markets. Argentina continues to struggle to get their corn and soybean crops planted because of the wet conditions. Brazil appears to off to a reasonably good start. Mike Krueger is president and founder of The Money Farm, a grain advisory service located in Fargo, N.D. A licensed commodity broker, Krueger is a past director of the Minneapolis Grain Exchange and a senior analyst for World Perspectives, a Washington, D.C., agricultural consulting group. • “Final” 2012 corn and soybean production estimates. There is a mixed bag of opinions about what the final corn and soybean production estimates will WHEAT LIFE JANUARY 2013 WASHINGTON GRAIN COMMISSION Crop condition ratings across the U.S. hard red winter wheat region are the lowest they’ve been since the ratings were started. These dry areas around the world can certainly get better, but the odds of having an average or better world wheat yield in 2013 have been reduced by the dry planting conditions. Crop analysts we work with have slashed their U.S. hard red winter wheat production potential in recent weeks because the drought in the southern plains has not improved. In fact, it has gotten worse. WL 61 WIDE WORLD OF WHEAT WASHINGTON GRAIN COMMISSION Another example of the ongoing consolidation occurring in the crop protection market has German chemical giant BASF buying an Iowa-based seed treatment company for $1 billion. Becker Underwood, established in 1982, has been owned by a private equity firm since 2004. Seed treatments, which protect wheat, corn and other major crops, represent a $2.5 billion industry that is expanding by 10 percent to 12 percent annually. BASF plans to use the company’s technology to enhance offerings around the world, especially in South America, Europe and parts of Asia. Don’t believe anyone who tells you that bread is out of fashion. Belgian entrepreneur Alain Coumont opened a restaurant in Brussels in 1989, but found he didn’t like the bread from local suppliers so he started baking it himself. Initially, he sold extra loaves to friends, then he opened a small bread shop. Fast forward 23 years and his company, Le Pain Quotidien (Daily Bread), now has 182 shops in 19 countries, including 62 in the U.S. Unless something is done to address climate change, South Australia wheat farms will become unviable. That’s the word from Tim Flannery, chief climate commissioner for the state. A recent study found a 2 degree Celsius increase in average temperatures shortens the growing season by nine days and reduces yields up to 20 percent. “If we look at 90 years or so, we can see that if we continue emitting globally as we are, that...cropping may just not be possible throughout most of the state, and we’d see catastrophically large declines in productivity.” To make up for the 13 percent decline in Britain’s 2012 wheat crop, flour mills have been forced to import 2 million metric tons (mmt) of mostly German wheat. It is the biggest wheat import since 1980 and is expected to increase the price of bread next year. Bread-quality wheat for delivery to the worst affected areas of Britain recently rose to $340.18 a ton. Ordinarily, the country is a net exporter of wheat, supplying markets such as Spain and North Africa. Domestic wheat prices in Russia have risen about 60 percent since spring and are expected to rise further as a drought-hit market exceeds state stock supplies. The country is currently selling 1.25 mmt of grain from its 5 mmt stock, but those sales, which started in October at 130,000 tons per week, haven’t had much effect. Prices for third-grade wheat rose to $340 a ton at the beginning of December. Yemen recently received 17,000 metric tons of wheat donated by the U.S. The United Nations World Food Program (WFP) said the wheat shipment was worth $15 million. It is 62 WHEAT LIFE JANUARY 2013 enough to feed 800,000 hungry Yemenis for six months. The wheat, which arrived in a bulk vessel, was repacked on the dock into 50 kilogram bags. A WFP survey released last May found more than 10 million Yemenis—44.5 percent of the population—are food insecure. The U.S. government earmarked $52 million to support WFP activities in Yemen in 2012. India, which banned wheat exports for four years between 2007 and 2011, is now suggesting its reappearance in the export market may stabilize rising global prices. The government has already allowed 2 mmt to be sold overseas and in late November, approved another 2.5 mmt of additional exports. India, which resumed wheat exports in Sept. 2011, has emerged as a major exporter after supplies from Black Sea origin wheat along with Australia and European Union supply was reduced because of drought. The exports serve as a relief valve to poorly stored Indian wheat and fears of huge losses due to rotting. The bulk of Indian wheat has been destined for the Far East including such countries as Korea and Taiwan. Other customers include India’s neighINA bors such as Bangladesh, Sri Lanka Yemen. ENTand ARG Farmers in Argentina warned the government early on that they would be planting less wheat due to the tight controls imposed on exports to keep domestic prices down. Now, according to an unnamed grain exporter representative, the government has cut the amount of wheat it will allow for export by 1.5 mmt to 4.5 mmt total. Most of the country’s wheat exports go to neighboring Brazil. With less Argentine wheat for export, Brazil will have to look elsewhere. They won’t be looking to the Pacific Northwest of the U.S. to make up any difference, however, and it’s not because Brazil is hard to get there A ENTIN ARG from here. Brazil has an embargo against wheat from the PNW due to TCK Smut. But that’s another story. China’s dependence on foreign markets for its food is likely to increase as the population grows and the economy develops. That’s the word from Chen Xiwen, director of China’s Communist Party’s policy-making body for rural affairs. He said the migration of 230 million farm workers to cities since 2000 has eroded the country’s self-sufficiency in grain. Last year, China became a net importer of wheat, corn and rice at the same time. BRITAIN CHINA RUSSIA IUM BELG UKRAINE GERM INDIA ANY KAZAKHSTAN JAPAN CHINA INDIA YEMEN Despite Chen’s UKRAINE GERM ANY statements, China had another abundant grain harvest in 2012 with corn (208 million metric tons (mmt)) surpassing rice (204 mmt) for the first time to become the country’s biggest crop in both area and output. Although the area devoted to wheat fell by half a percent, a 3.3 percent increase in yield made up for the loss resulting in a crop exceeding 120 mmt. Among the strategies China YEMEN is using to protect its wheat crop is the organization of specialized control teams whose job is to drench fields with pesticides when insects show up. IUM BELG With a declining birth rate in Japan, dogs have become like children, and people want to share Christmas and other holidays with them. That means canines want cake too. A pastry chef and Italian restaurant owner, Naohiko Nagatani, came up with a dog-friendly Christmas cake that leaves out chocolate and alcohol. He makes the cake from spelt, a type of wheat he says causes fewer allergies in dogs than regular flour. Kazakhstan might not have as much wheat as first thought. According to the Kazakhstan Agriculture Ministry, grain-belt governments are suspected of exaggerating the size of their crops to win political favor. Although the three biggest grain regions reported a combined crop of 11.2 mmt, satellite monitoring showed a crop of just 9.8 mmt. A farmer from one region recently wrote to the agriculture minister claiming he had been compelled to report higher yields and said the distortions are not just small adjustments. Those who refuse to increase their yields, he said, are intimidated by inspections from various government bodies. The U.S. Department of Agriculture forecast Kazakhstan’s harvest at just 7 mmt. Ukraine RUSSIA will embargo KAZAKHSTAN wheat exports. IA AL STR AU Ukraine won’t embargo wheat exports. JAPAN Ukraine will say it won’t embargo wheat CHINA exports, but in practice, will embargo wheat exports. Confused? Ukraine initially INDIA embargo exports from Nov. 15 onward due to said it would a weather-damaged harvest. The USDA puts the country’s crop at 44.6 mmt in the 2012/13 marketing year compared to 56.7 mmt last year. But fears of a steep run up in price due to mention of the word “embargo” (remember Russia’s embargo in 2010?) led the country to backtrack, much to the delight of the U.S. which commended Ukraine for showing restraint. “Governments around the world can help to reduce the risk of a food-price crisis by abstaining from food export bans and other artificial barriers that increase price IA AL STR AU volatility and harm the world’s most vulnerable citizens,” said the U.S. Mission to the United Nations. The next day, news stories emerged which said Washington is well aware Kiev is restricting imports. “Ukraine is simply not calling a spade a spade,” said a story in the Financial Times of London, claiming that Ukraine is using administrative means to make sure the grain flow stops. WASHINGTON GRAIN COMMISSION BRITAIN Despite strong demand and relatively high cereal prices, land constraints and slow yield growth will limit any increase in European Union wheat output, said the European Commission’s agriculture department. Milling wheat yields in the EU are forecast to grow by a maximum 4 percent in the coming decade. The EU produces more wheat than any other crop. Plantings currently account for about a third of arable land within the region. Barley is the second most widely grown grain, occupying a fifth of all cropland, but it is expected to decline 12 percent between now and 2022. WHEAT LIFE JANUARY 2013 63 WL FEATURE From heyday to gone away Milling industry peaks at turn of century; mergers, acquisitions take their toll By Norman Reed What I call the big city era dates from 1890 till 1960 and could be called the heyday of our industry. Between 1880 and 1893, the Pacific Northwest experienced a rate of growth seldom equaled in any part of the U.S. Tacoma and Spokane’s growth were even Editor’s note: This is the second more imprespart of a two-part series looking sive. This growth at the history of Washington’s was, in a great flour mills. The first article, which part, the result of appeared in the December issue the development of Wheat Life, covered the early of the railroads days of milling to approximately and their aggres1890. Included with that first sive advertising. article was a list of Washington (and the Palouse region of Idaho) Railroads allowed flour mills. shipping of grain to distant mills. Additionally, trade with the Orient was opening up. At the same time, flourmilling technology was converting to roller mills instead of the stone mills. These developments spelled the beginning of the end for the gristmill era. Some gristmills stayed in operation after being acquired and modernized by city conglomerates, but for the most part, flour milling moved to the cities. City mills Spokane grew first, and by 1900, was said to rank as the seventh largest milling center in the nation, just behind such locations as Niagara Falls, N.Y., Grand Rapids, Mich., and Minneapolis-St. Paul. Spokane mills included the Echo Flour Mill, C & C Flour Mill, Centennial Flour, Washington Grain and Milling, the Spokane Flour Mill and the Lakin Milling Co. Puget Sound was an ideal location for exporting flour. First in Seattle was the Novelty Mills out towards west Seattle. In 1898, Centennial built its mill on the waterfront just south of the current sports domes. By 1906, that stretch of waterfront was home to three mills, the Hammond Milling Co., Albers Cereal Mills and Centennial Flour. The Fisher Flouring Mills opened on Harbor Island in 1911. Seattle now had seven mills as the Charles H. Lilly Co. produced flour as well as feeds, seeds and fertilizer, and the City Mills was just north of downtown. Tacoma had the Puget Sound Flouring Mills, the Tacoma Grain Co., Watson & Olds, Albers Milling Co. and the Cascade Cereal Mills. Everett had its Everett Flour Mill producing Best Everett Brand. Bellingham had a big mill on South Hill next to the water where the three-masted schooners could easily load up. The grain trade was huge as well. Tacoma had a mile-long grain warehouse on the waterfront handling wheat. Railroad trains stopped on the shore side, and the great ocean-going schooners tied up at the water side. Large quantities of Washington’s wheat also shipped out of Portland and Astoria, R eed Ore. Combined, the grain and flour orman of N courtesy trade ranked close to lumber as our repostcard gion’s major industry. 64 WHEAT LIFE JANUARY 2013 FEATURE of N orman WL R eed courtesy postcard of N orman courtesy G R APH PH OT OGRA P H courtesy of N orman Cereal mills were close relatives to flour mills, and, the most familiar one in the Pacific Northwest was the Albers Bros. Milling Co. Albers began in Portland and moved north to Tacoma and Seattle. They were purchased by the Carnation Milk Co. of Seattle when Carnation was unsuccessful in stopping Albers from using the trade name “Carnation Mush.” Albers was able to keep their local mills going right into the 1960s and 70s by concentrating on pet and animal foods. Today, owned by the Continental Mills, they are still in the animal food and cornmeal business, but do not have a mill in Washington. R eed California had become a center for wheat and flour during its 1850s gold rush, and the leader there was the Sperry Flour Company of Stockton. Sperry moved into the northwest in 1920 with the acquisition of the mills of the Portland Flouring Mills Co. General Mills of Minneapolis, the nation’s giant, moved west in 1929 to merge with the Sperry Flour Company. During the 1920s and 30s, many of the smaller mills in Washington were deemed too small or technically obsolete and were closed. General Mills operated the old Sperry plants in Tacoma and Spokane until 1965. The Tacoma plant was razed. The Spokane mill was sold to VWR United (the Centennial, United Pacific, Van Waters and Rogers combine) in 1970 and was converted to a starch-gluten plant. In 1981, the plant was sold to the Archer Daniels Midland Co. (ADM), and it is being operated today as a mix plant. PH OTO Mergers, acquisitions and conglomerates are not new. The flour industry, in Minnesota, started doing it back in the 1890s. In the Pacific Northwest, Spokane’s C & C mill was purchased in 1895 by the Portland Flouring Mill Co., which by that time had nine mills operating in the west. North Pacific Flour Mills of Walla Walla had mills in Walla Walla, Dayton and Prescott, Wash., along with mills in Idaho and Wasco, Ore. In about 1902, H. P. Issacs, the owner of North Pacific Flour Mills, closed some mills and sold some to the Portland Flouring Mills Co. who also owned the Puget Sound Flouring Mills in Tacoma. R eed Where did they all go? WHEAT LIFE JANUARY 2013 65 WL FEATURE Washington’s largest and longest lasting milling company was the Centennial Mills, which was founded in 1889 by Iowan George Pahl who owned the Centennial Mills in Avaca, Iowa. Moritz Thomsen soon became president. On his way to becoming a business tycoon of the early 20th century, Thomsen came to Seattle and in 1896, began dredging up land out of Elliot Bay for his second mill. That waterfront land was the beginning of Seattle’s southerly industrial district. Thomsen built or bought mills in Wenatchee, Ritzville, Pasco, Sprague, Reardan, Vancouver and Creston, Wash., and in Wasco, Ore. Known as the “Business Doctor,” at one time he was president of 14 corporations. He purchased and revived the floundering Pacific Coast Cracker Co. During World War I, the shipbuilding industry, needing land for expansion, bought out the Centennial Mill. By 1931, Centennial had purchased the Tacoma Grain Co. on the Old Town Waterfront in Tacoma. In 1939, they built a new modern mill on East Trent Street in Spokane. In 1948, Centennial bought the large Crown Mills of Portland from the Balfour-Guthrie Co. and moved its headquarters there from Seattle in 1958. Moritz Thomsen’s grandson, Moritz Milburn, was president and also a principle in a new conglomerate, the United Pacific Co., which picked up ownership of the mills in 1960. Under this new ownership, the plant was modernized, and the firm again became a leader in the milling industry with its effort to modernize old mills. In 1981, ADM bought Centennial. ADM is still operating the huge Trent Street plant in Spokane. The Fisher Flouring Co. of Seattle, in 1965, became Western Washington’s only mill. It flourished for many years before being acquired by the Pendleton Mills of Oregon. Pendleton was associated with the popular Swans Down Cake Flour brand of the General Foods Co. They closed the Fisher Mill in 2002, and its production was moved to Blackfoot, Idaho. The other mill still operating in Washington is the former F. M. Martin Grain and Milling Co. mill in Cheney. It was sold in 1942 to the National Biscuit Co. and is now owned and operated by ADM. An interesting side note here is that the son of the founder of the F.M. Martin Grain PHOTOGRAPHS courtesy of Norman Reed 66 WHEAT LIFE JANUARY 2013 and Milling Co., Clarence D. Martin, worked in the business but is better known as Washington’s governor from 1933 to 1941. His son, Clarence D. Martin, Jr., was undersecretary of commerce in the Kennedy administration during the early 1960s. We had you in mind. We had you in mind. Just a few of these defunct city mills can still be seen today. The C & C Flour mill building in Spokane was remodeled into The Flour Mill Mall. The Albers mill in Tacoma was rebuilt into an apartment building. The Fisher Flour Mill in Seattle still stands empty. The All-New 2013 Miller Condor GC Series The All-New 2013 wraps Miller you in quiet Condor GCsophistication Series wraps with newsophistication SprayView youthe in quiet with the new SprayView “Comfort Zone” cab. “Comfort Zone” cab. Comfort that you deserve. Comfort that you deserve. 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Condor. www.millerstn.com www.millerstn.com 5026 ROTARY CUTTER Hydraulic phasing cylinders for level lift Spring steel bushings at all major pivots 15’, 26’, 30’ & 42’ Models 1000 RPM heavy-duty dive line Suspension for center & wing frames Your Local Miller Dealer Crop Life October_2012_Miller.indd 1 Crop Life October_2012_Miller.indd 1 9/12/12 9:03 AM 9/12/12 9:03 AM RS320 ROCK PICKER 3.2 Cubic yard hopper Superior rock picking performance Pioneer West, Inc. 64118 McDonald Lane • LaGrande, OR 97850 Contact Greg at 541-786-1000 SRW 1400 ROCK WINDROWER Ask Us About Our Leasing Options! We’re Your PNW Sprayer Experts Sprayers-Parts-Guidance Systems & More 1-877-253-9378 www.pioneerwestinc.com WHEAT LIFE JANUARY 2013 67 WL FEATURE The little town that did Grocery store set to open in LaCrosse’s restored mercantile building For more than three years, the residents of LaCrosse, Wash., have had to drive 60 miles round trip to get to the nearest fullservice grocery store. Come the first of the year, they’ll only have to drive a few blocks. That’s when Wendy Holliday, with the help of the LaCrosse Community Pride (LCP) nonprofit group, will open the doors to the LaCrosse Market Inc., housed in the newly restored LaCrosse mercantile building. Holliday, who grew up in Benge and now lives in St. John with her two boys, had been looking for work since January 2012, when the Colfax Grange merged with several other companies, and her job of 18 years was terminated. “When looking for a job for so long, it gets very discouraging,” Holliday said. “My dad called one morning and said ‘What do you think about doing a grocery story in LaCrosse?’ I thought about it for awhile. I knew how to keep books; I knew how a business works. I thought it would be cool to have that opportunity to learn more.” Photos by Lois Startin The grocery store space in the old LaCrosse mercantile building. The LaCrosse Community Pride group is hoping to have the space finished in time for a January opening. Holliday and her father, Mike, walked through the building with Lois Startin, a member of the LCP, a group that spearheaded the building restoration and is working to revitalize LaCrosse. “I could see the possibilities,” Holliday said, even though the interior of the building was still pretty empty. “You look at something that is bare and go, ‘Okay, this is going to be really exciting and challenging for me.’” Holliday took her resume to the next meeting of the LCP and presented her ideas for the grocery store. That afternoon, the LCP made their decision and notified Holliday. While the LCP will be responsible for finishing the interior of the grocery story and installing shelves and coolers, Holliday will be leasing the space from them and buying the inventory and cash register. Besides basic groceries and general merchandise, Holliday said that she will stock inventory from Arrow Machinery, such as filters and oil, so that farmers can get what they need with one stop. Eventually, Holliday also wants to offer services such as espresso and lottery tickets. “It’s going to mean a lot to the community to have a grocery store,” Holliday said. “They’ve been without one for so long.” “Wendy has great business skills,” said Startin. “Because of her experience (at the Colfax Grange), I think she’ll do a great job for us.” Startin said that the community can’t wait for the grocery store to open its doors. She said that the fact that Holliday was from a rural area was a big plus. “It is easier to adjust, instead of coming from a big metropolis to a small town.” 68 WHEAT LIFE JANUARY 2013 In addition to the grocery store, the mercantile building will eventually also house a community center, a public library and several professional offices. Holliday is hoping to open the grocery store in January, with hours from 8 a.m. to 6 p.m. Monday through Saturday. While she will be the main workforce at the store, Holliday said that her mother, Bonnie, will probably lend some helping hands. “The LaCrosse Community Pride group and the community are very thankful to me and my family for stepping up and opening their grocery store,” she said, “But the reality of it is that I am very grateful to that group of people that have given me an opportunity when no one else would. I was down to only a couple of months left with my unemployment benefits and had no idea what I was going to do to live. The LaCrosse Community Pride group has given me a great gift, and I thank them.” QUOTEWORTHY “Reforming farm subsidies, very important to do, lots of room to do sensible reforms in that context. And they can raise substantial amounts of money.” —Treasury Secretary Tim Geithner on CBS’ “Face the Nation.” “Don’t let somebody else craft the farm legislation who may not fully understand all of the implications.” —Agriculture Secretary Tom Vilsack warning congressional committees that if they don’t strike a deal soon, the White House and Republicans working to avert the fiscal cliff may cut farm programs that lawmakers want to protect. (Associated Press) “It’s one of the many reasons we need to get a five-year farm bill done so people who don’t support crop insurance don’t come back at it and try to cut it.” —Sen. Debbie Stabenow (D-Mich), who leads the Senate Agriculture, Nutrition and Forestry Committee, agreeing with Sec. Vilsack’s comments. (Associated Press) “It is time we put aside party dynamics and focus instead on the needs of all Washingtonians.” “There has been a lot of misinformation circulating about supposed regulatory overreach, so this final rule will hopefully put to rest any remaining anxiety regarding ‘farm dust’ regulation by EPA.” —National Farmers Union (NFU) Vice President of Government Relations Chandler Goule on the EPA’s decision not to tighten farm dust standards. (AgriPulse) “It’s fair to say milk prices will increase, and that’s an unfortunate circumstance...Consumers shouldn’t have to have higher milk costs because Congress can’t get its work done. This can be worked out. There has to be a little give, there has to be a little take … It’s just obviously going at a pace that needs to pick up.” —Agriculture Secretary Tom Vilsack at a press conference on the expectations that milk prices will increase if a farm bill isn’t passed before the end of 2012. (www.politico.com) “At times, we have been very fragmented, so the goal is to have one clear voice so we’re not sending contradictory messages.” —David Douglas, president of Douglas Fruit Co. in Pasco, on the possible consolidation of lobbying efforts by the Washington State Horticultural Association and the Yakima Valley Growers-Shippers Association. (Capital Press) —Washington Sen. Rodney Tom of (D-Bellevue) on his and Sen. Tim Sheldon’s (D-Potlatch) move to join Senate Republicans in a powersharing arrangement to take over the Senate. (Associated Press) WHEAT LIFE JANUARY 2013 69 THE BOTTOM LINE Good records are a part of a successful operation By Todd King, CPA Leffel, Otis & Warwick, P.S. Farm financial records are an essential part of any successful farming operation. An accurate set of financial records lays the foundation for good management decisions. These statements come from a person who focuses little on the details or pennies, but rather on the entire picture. Those of you who have ever worked with me or listened to me speak have gathered that my focus tends to be on the big picture and proactive planning. At the same time, I understand the need for adequate financial records. cares if the check is posted to supplies expense or repairs expense? Who cares about the 67 cents you are unable to track down? A cost-benefit relationship needs to be kept in mind when deciding how much of your management resources you want to spend in record keeping versus managing other aspects of your farm. Farmers need good records to properly manage their businesses, but if they spend all their time searching for 67 cents, they have little time to manage their businesses. Tax planning with good records Most farmers are on the cash basis of accounting for In working with hundreds of farmers over the past 25 income reporting purposes. This simplifies the recordyears, I have often tried to pinpoint what makes some keeping process in that the tax preparer needs only a list farmers very successful while others tend to struggle. I of cash coming in and cash going out. Simple programs have noted that one common trait possessed by successful such Quicken or Quick Books are inexpensive and very farmers is that they always have a good idea of where they adequate for the task. These programs, used properly, will are at financially and where they are headed. If you do categorize the year’s receipts and disbursements as well as not know where you are at, it is impossible to determine provide a bank reconciliation to detect errors or omissions. where you are headed. Successful people know where While the above records will facilitate the preparation they are at for the year, and more importantly, they know of the tax return and keep you out of trouble in the event why. Once they have told me how this year went, they can of an Internal Revenue Service audit, the real benefit of go on to tell me what they are expecting out of next year good tax records is the ability to plan. The farmer that has and why. Having your finger on the pulse of what is going his records up-to-date before year end and sits down with on in your business is invaluable. How do these people a tax professional familiar with farm taxation will likely have such a thorough understanding of their business, save considerable tax dollars. Again, the key to saving tax where it is at, and where it is headed? An accurate set of dollars involves three things: financial records is like a good GPS; it consistently tells • Good financial records; you where you are at. Good financial records provide a foundation that •A CPA familiar with farm taxaSponsored by the allows you to build management decition; and sions that fit your operation. Agricultural Marketing •P roactive planning done prior to Good Records Good records accurately report necessary financial information to the tax preparer and other users. These records should be free of material errors that may distort the financial picture. Good records, in my mind, are not always meticulous records. Often farmers will spend considerable time in an effort to arrive at what I will call very meticulous records. Who 70 WHEAT LIFE JANUARY 2013 & Management Organization. For more information and a schedule of classes visit www.lcammo.org. year end. If any of the above three items is absent, the opportunity to maximize the benefits of tax planning is lost and so is the money you could save. Budgets Most bankers require farm clients to prepare budgets on an annual basis. These bankers are asking the borrowers to look into their crystal ball and tell them what they see for the future. THE BOTTOM LINE It forces the farmer to take very simple things and organize them in a fashion that shows them where they may be in the future. Items like expected yield, expected price, fertilizer costs, fuel costs, etc., are items that most farmers can reasonably estimate. Once all these estimations are organized, it projects what next year’s bottom line looks like. Many clients have pointed out to me that once the wheat price moves 50 cents, their budget is no longer accurate. Once the tractor motor blows up, their budget is off. The real value of a budget is not in the bottom line profit or loss as indicated by the budget. The true value associated with the budgeting process is the forced thought process that the farmer goes through in preparation of the budget. Remember, successful farmers always know where they are at and where they are headed. The budget paints a mental picture of what you expect for next year, and as the year goes on, you are constantly measuring how you are doing for the year. Again, the budget does not need to be overly detailed. It should be designed to fit the needs of your operation. The capital budget is another tool in the budgeting process. The capital budget is a wish list of equipment, buildings or land. This list is typically prioritized based upon need and indicates an estimated cost of the respective item. Items on the capital budget are typically purchased based on the priority assigned as funds become available. Conclusion Successful farm operations are built on good management. Adequate financial records are essential to effective management. However, financial records are not a substitute for management. Good re- WL cords in and of themselves have little benefit to the farm operations. The benefit to the farm operation occurs when these records are coupled with a proactive manager that uses these records to guide the direction of the farm. Good managers recognize the need for adequate records and farm budgets. These managers find a balance between the time spent on record keeping and the time spent managing their business. Todd King, CPA, is the president of Leffel, Otis & Warwick, P.S., and works out of the firm’s Odessa office. The majority of the firm’s 5,500 clients are family farms and ag-related businesses, and the firm’s concentrated focus of practice has allowed a thorough understanding of the business issues facing today’s farmers. Todd has advised clients on these business and tax issues since coming to the firm in 1984. For more information visit www.leffelotiswarwick.com. When You Need Strength to Make it Through The Tough Times Take Off ST™ is a patented technology containing the plant metabolite 2-oxo- glutaramate with an advanced nutrient complex, providing the latest innovation in seed treatments to maximize nutrient effeciency in the soil. BIAGRO WESTERN SALES, INC. 12222 Avenue 352, Visalia, CA 93291 (559)-635-4784 (800) 868-6446 Fax (559) 625-9255 e:mail: info@biagro.com Contact: Scott Tullis (541) 571-3152 e:mail: stullis@biagro.com Re-inforce Your Roots With Take-Off™ WHEAT LIFE JANUARY 2013 71 (Right) Lola Edwards, 7, Rowan Edwards, 4, Decoy and Wil Edwards up on Steptoe Butte. (Bottom right) Ben Barstow of Palouse helps Lola and Rowan into his combine for a ride. (Bottom left) Lola and Rowan run in Ben Barstow’s cut wheat field. Photos by Andra Edwards Email pictures to editor@wawg.org. Include location of picture, names of all people appearing in the picture and ages of all children. Your wheat life... Maria Buckingham (above) and Naomi Alhadeff (left) cutting wheat at the WSU Spillman Research Farm in August. Buckingham and Alhadeff were new educators for the Wheat Week program, and this was their first experience harvesting wheat. The wheat is taken to classrooms and put into the hands of children across Washington as part of the Wheat Week education program funded by the Washington Grain Commission. Photos by Kara Kaelber A different way of unloading wheat at Olson Valley Ranch in Bonners Ferry, Idaho. Photo by Erik Olson Advertiser Index aemsco Inc . . . . . . . . . . . . . . . . . . . . . . . . . 75 Ag Enterprise Supply Inc. . . . . . . . . . . . . . . . . 33 AGPRO . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 AmericanWest Bank . . . . . . . . . . . . . . . . . . . 11 Battery Systems . . . . . . . . . . . . . . . . . . . . . . 17 Biagro Western . . . . . . . . . . . . . . . . . . . . . . 71 Brock Law Firm . . . . . . . . . . . . . . . . . . . . . . 25 Byrnes Oil Co. . . . . . . . . . . . . . . . . . . . . . . . 22 Carpenter, McGuire & DeWulf P.S. . . . . . . . . . . 32 Class 8 Trucks . . . . . . . . . . . . . . . . . . . . . 15, 31 Connell Grange Supply Inc. . . . . . . . . . . . . . . . 36 Connell Oil Co. . . . . . . . . . . . . . . . . . . . . . . 13 Cooperative Ag Producers Inc. . . . . . . . . . . . . . 37 Country Financial . . . . . . . . . . . . . . . . . . . . 29 Diesel & Machine . . . . . . . . . . . . . . . . . . . . . 22 Edward Jones . . . . . . . . . . . . . . . . . . . . . . . 23 Evergreen Implement Inc. . . . . . . . . . . . . . . . . 35 Farm & Home Supply . . . . . . . . . . . . . . . . . . 19 Frieling’s Ag Equipment . . . . . . . . . . . . . . . . . 36 Great Plains Equipment . . . . . . . . . . . . . . . . . 37 Hillco Technologies . . . . . . . . . . . . . . . . . . . . 7 Inland Oil & Propane . . . . . . . . . . . . . . . . . . 25 J & M Fabrication . . . . . . . . . . . . . . . . . . . . . 31 Jess Ford . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Jones Truck & Implement . . . . . . . . . . . . . . . . 33 Landmark Native Seed . . . . . . . . . . . . . . . . . 36 Lange Supply Inc. . . . . . . . . . . . . . . . . . . . . . 28 Les Schwab Tire Centers . . . . . . . . . . . . . . . . . .7 MachineryLink . . . . . . . . . . . . . . . . . . . . . . 76 Micro-Ag . . . . . . . . . . . . . . . . . . . . . . . . . . 23 North Pine Ag Equipment Inc. . . . . . . . . . . . . . 29 Northwest Ag Show . . . . . . . . . . . . . . . . . . . .9 Northwest Farm Credit Services . . . . . . . . . . . . 19 Northwest Outdoor Properties . . . . . . . . . . . . . 17 OXARC . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 PNW Farmers Cooperative . . . . . . . . . . . . . . . 33 Pacific Northwest Direct Seed Association . . . . . . 17 Perkins & Zlatich P.S. . . . . . . . . . . . . . . . . . . .15 Pioneer West Inc. . . . . . . . . . . . . . . . . . . . . . 67 Pomeroy Grain Growers Inc. . . . . . . . . . . . . . . 12 RH Machine . . . . . . . . . . . . . . . . . . . . . . . 33 Rainier Seeds . . . . . . . . . . . . . . . . . . . . . . . 27 Ramada Airport Inn . . . . . . . . . . . . . . . . . . . 27 Rock Steel Structures . . . . . . . . . . . . . . . . . . . 18 Seedmaster Drills–Kevin Klein . . . . . . . . . . . . . 35 Spectrum Crop Development . . . . . . . . . . . . . . 31 Spokane Ag Expo . . . . . . . . . . . . . . . . . . . . . 12 Spray Center Electronics . . . . . . . . . . . . . . . . . 28 SS Equipment . . . . . . . . . . . . . . . . . . . . . . . 23 State Bank Northwest . . . . . . . . . . . . . . . . . . 17 T & S Sales . . . . . . . . . . . . . . . . . . . . . . . . . 13 The Whitney Land Co. . . . . . . . . . . . . . . . . . . 27 Walter Implement . . . . . . . . . . . . . . . . . . . . . 67 Western Reclamation . . . . . . . . . . . . . . . . . . . 11 Western Trailers . . . . . . . . . . . . . . . . . . . . . . 15 Wheatland Bank . . . . . . . . . . . . . . . . . . . . . 13 Wheeler Industries . . . . . . . . . . . . . . . . . . . . 75 Wilbur-Ellis–In-Place . . . . . . . . . . . . . . . . . . . 4 Windermere Blue Mountain Realtors . . . . . . . . . 23 Windermere Coeur d’Alene Realty Inc. . . . . . . . . 29 Thank you to all of our advertisers. Support those who support your industry. PO ST CA RD 74 WHEAT LIFE JANUARY 2013 S courtesy of Norman Reed MACHINING • FABRICATION • REPAIRS Quality machining and fabrication services, done right. THE FIRST TIME! JESS FORD Celebrating our 75th Year of doing business with Washington State Farmers Store Manager: Wade Jess Sales Manager: Buddy Streeter Store Manager: Jim Jess Sales Manager: Clive Cole 509-633-0110 509-334-6000 Grand Coulee, WA We Make and/or Repair •Hard-to-find or Discontinued Parts •Worn or Bent Shafts •Front-Axle King Pin Bushings •Pulleys, Sprockets, Augers, Pins •Custom Equipment and More! Full Job-Shop Capabilities: •Manual Milling & Turning •CNC Milling & Turning •Surface Grinding •Blanchard Grinding •MIG, TIG, ARC Welding •Full, custom manufacturing Pullman, WA www.JessFord.com 509-534-4556 1118 North Howe Road, Spokane, WA 99212 www.wheelerindustries.net • info@wheelerindustries.net WHEAT LIFE JANUARY 2013 75 Truly Reap What You Sow With A Cost-Saving Harvest Is your combine cutting into your farm’s profits? Rent from MachineryLink and get your depreciating asset off your balance sheet, or reduce expenses by supplementing ownership with a machine rental. Questions? Contact your Regional Manager: Matt Hays 509.378.8115 mhays@machinerylink.com farmlink.com