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California Association of Wheat Growers (CAWG)

February 28, 2005

CAWG PREPARES FOR ANNUAL WASHINGTON, DC TRIP. CAWG President Larry Hunn and Treasurer Ian Anderson are preparing to take CAWG’s agenda to Washington in mid-March. Accompanied by Executive Director Janice Cooper, the growers will discuss several issues with Congressional leaders and other policy makers including: the urgent need to reinstate the assessment collection MOU; Mexico’s trade ban on California wheat; the impact of proposed budget cuts on California growers; and support for the Central American Free Trade Agreement and other trade negotiations. The group will also thank members for their support for disaster assistance and other issues. California Wheat Commission Executive Director Bonnie Fernandez is arranging meetingswith USDA on Mexico and the assessment issue.

 INDUSTRY CONSOLIDATION FAILS IN CLOSE VOTE. The effort to consolidate the national wheat organizations into one unified organization came within 1 weighted vote of being accomplished this week in Reno. The Boards of NAWG, U.S. Wheat Associates, and WETEC each brought the consolidation proposal to a vote, and while each Board passed the plan at the Board level, the consolidation plan failed to muster the necessary 2/3 Membership Vote at U.S. Wheat Associates to be concluded.  Sixteen states voted in favor of consolidation, but the three opposing states held 34.6% of the weighted votes and the proponents fell 1.3% short of the 2/3 vote required.  Vote weights are allocated by funds contributed to USW, which are calculated on a production formula.

 NAWG and WETEC have passed all necessary motions to consummate the consolidation.  WETEC took up the matter first, passing its motions by a 12-4 margin.  WETEC’s Board also adopted a motion directing its officers, in the event that consolidation fails, to work with the NAWG officers to present a shutdown plan for the organization and transfer the trade policy work of WETEC to NAWG. NAWG’s board voted on consolidation on Tuesday, and passed it 38-2.

 California representatives to all three organizations supported consolidation. Negotiations are under way to bring the vote for reconsideration at the next U.S. Wheat meeting in July.

 NAWG BOARD ADOPTS EXPANDED VISION. The NAWG Board of Directors unanimously adopted a plan presented by the officers to expand efforts in a number of critical areas at its annual meeting in Reno.   Newly-installed NAWG President Sherman Reese presented the plan to the Board on Tuesday. “We will continue to support the consolidation effort for the national wheat organizations,” said Reese, “but we will also move the ball forward on these critical issues, and we’ll move it independently of whether consolidation eventually takes place.”

 The plan calls for expanding NAWG’s efforts in several areas:

• Science and Biotechnology – to include work on biotechnology acceptance and commercialization, coordination and liaison with researchers, development and maintenance of research resources for producers to access relevant research findings, federal research appropriations, and related work.
• Trade Policy – picking up the work of WETEC (see related article on consolidation vote) and ensuring that the interests of producers are considered in the development of trade policy negotiating goals.
• Communications – monitor developing news stories, proactively create messages, upgrade quality and frequency of content, and foster ongoing relationships with reporters.
• Internet/Technology – make the organization more accessible to its members via the Web, providing tailored information, access to NAWG products and services, and provide an online community for wheat producers.
• New Uses & Domestic Market Development – build on the findings of the New Uses Audit and bring new uses possibilities to commercial application.
• Additional clerical/project support – More activity will require additional support staff.

 NAWG would also maintain its current efforts in domestic policy, and expand its agribusiness partner relations to include more focus on specific joint projects of mutual interest.  Full implementation of the plan is expected to require an expansion in staff by 5-6 full-time employees and a 75% growth in needed funding.

 CONGRESSIONAL REPORT CARDS. NAWG released its annual report card which identifies key votes affecting the wheat industry and shows how members of Congress for the 108^th Congress, Second Session cast  their votes. In the House, the votes included: passage of the US-Morocco Free Trade Agreement; opposition to new restrictions on trade with Cuba; support for disaster relief; and support for the general appropriations bill. Similar Senate votes were selected. California Members receiving a 100% voting record are Senator Dianne Feinstein and Reps. Susan Davis (D, CA), Elton Gallegly (R, CA), Jane Harman (D, CA), Wally Herger (R, CA), Mike Honda (D, CA), Lucille Roybal-Allard (D, CA), Mike Thompson (D, CA), Diane Watson (D, CA). CAWG members will visit each of these members in March and thank them for their support.

To view the complete vote record and explanation of votes visit the following links.  For the Senate report card, visit: www.wheatworld.org/pdf/Senate108Votes.pdf. 

For the House report card, go to:  www.wheatworld.org/pdf/House108Votes.pdf.

 U.S. AGRICULTURAL EXPORT FORECAST RAISED. (News from WETEC) The U.S. Department of Agriculture raised its FY 2005 forecast of U.S. agricultural exports by $3 billion on February 24, 2005. Originally forecasted at $56 billion, the USDA now forecasts exports at $59 billion. This is the third highest export sales year ever. According to the USDA press release this increase in mostly attributed to high-value products, horticultural sales, pork and dairy.

“This year, the United States is experiencing increased competition and lower prices for bulk commodities such as grains, oilseeds and cotton,” the press release states. “Conversely, there is increased demand for some U.S. high-value products, which are bolstered by the weaker dollar. Horticultural sales are forecast at a record $14.5 billion. Board-based gains for many fruits and vegetables as well as wines and essential oils are expected, largely due to higher prices. Pork exports are also expected to reach a record volume and value with strong demand from Japan, Mexico and Canada. Very strong gains also are expected in dairy exports, largely supported by non-fat dry milk powder.”

 Canada, Mexico and Japan were listed as the top three markets for U.S. agricultural products followed by the European Union and China.

 SAVE THE DATE: CAWG scheduled its 2005 annual meeting for Wednesday, April 27^th in Sacramento. The California Wheat Commission will meet the following day. The CAWG meeting will be held at its office on I Street; all members are welcome to attend the meeting. We will be discussing the results of the trip to Washington, DC trip and setting priorities for the coming year.