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California Association of Wheat Growers (CAWG)

November 30, 2006

WHEAT GENE MAY BOOST NUTRIENT CONTENT. Funding from the U.S. Department of Agriculture and the United States - Israel Binational Agricultural Research and Development Fund has enabled researchers at the University of California, Davis and the University of Haifa in Israel to clone a gene from wild wheat that increases the protein, zinc and iron content in the grain, according to an announcement from USDA. The cloned gene offers a potential solution to nutritional deficiencies affecting hundreds of millions of children around the world.

Jorge Dubcovsky at UC Davis and Dr. Tzion Fahima at the University of Haifa designated the cloned gene GPC-B1 for its effect on grain protein content. GPC-B1 accelerates grain maturity and increases grain protein and micronutrient content by 10 to 15 percent in the wheat varieties studied so far.

To prove that all these effects were produced by this gene, the researchers created genetically modified wheat lines with reduced levels of the GPC gene. These lines were developed by Dr. Ann E. Blechl of the USDA's Agricultural Research Service in Albany, Calif.  The grains from the genetically modified plants matured several weeks later than the control plants and showed 30 percent less grain protein, zinc and iron, confirming that the GPC gene was responsible for the changes.

The researchers also found that all commercial pasta and bread wheat varieties analyzed so far have a nonfunctional copy of the GPC gene, suggesting the gene was lost during the domestication of wheat. Reintroducing the functional gene into commercial wheat varieties could increase their nutritional value.

The project received partial funding from the USDA's Cooperative State Research, Education and Extension Service's National Research Initiative (NRI).  The NRI is the largest peer reviewed, competitive grants program in CSREES.  It supports research, education and extension grants that address key problems of national, regional and multi-state importance in sustaining all components of agriculture.  Results from the study will be reported in the November 24, 2006, issue of the journal Science.

When asked to clarify whether wheat including this gene would be considered genetically modified, Dubcovsky stated, "Because the gene, called NAM-BI, comes from a wild relative of wheat, there is no need to use transgenic methods to transfer the gene into crop strains. You don't need to do any biotech - you just cross and restore it."   The University's new variety 'Lassik' will carry this gene and will be available as Foundation seed next year. For more information about this project you may contact Jorge Dubcovsky at (530) 752-5159, E-mail: jdubcovsky@ucdavis.edu

AG DISASTER ASSISTANCE PUSH CONTINUES IN LAME DUCK SESSION.  NAWG and more than 25 other farm organizations wrote Members of the Senate this week requesting they support agricultural disaster assistance when Congress returns to session next week.

The letter specifically asked the Senators to support an amendment that will be offered by Sen. Kent Conrad (D-N.D.) on Dec. 5 and to oppose a budget point of order that could be raised against it.  The amendment, also offered by Conrad before Thanksgiving, would provide traditional disaster assistance for the 2005 and 2006 crop years and would remove a provision to provide an economic loss payment that is opposed by the Administration and several Republicans.

The provision currently in the agriculture appropriations bill would provide an economic loss payment of 30 percent of the direct payment for those enrolled in the farm program for the 2005 crop year. It would also provide a payment rate of 50 percent of the established price of the crop if a farmer has a loss of at least 35 percent, but only for the 2005 crop year.

As most in rural America know, disaster assistance is desperately needed. USDA declared 80 percent of counties disaster areas in the 2005 crop year and fuel prices have doubled in just a few years. This issue has been NAWG’s top priority for more than a year, and NAWG staff and leadership will continue to work to secure ag disaster assistance for suffering producers in the lame duck session and the 110th Congress.

WHEAT INDUSTRY REACTS TO RELEASE OF COLE AWB INQUIRY. The long-anticipated Cole Inquiry report into the illicit activities of AWB, Ltd. was handed down this week. The report, more than 2,000 pages long, confirmed that a variety of improprieties took place and recommended criminal investigations into about a dozen AWB employees.

In response to the report’s release, NAWG and U.S. Wheat Associates issued a joint press statement from NAWG President Dale Schuler and U.S. Wheat Chairman Leonard Schock:

“The U.S. wheat industry is pleased with the completion of the Cole Inquiry into corruption on the part of AWB and its subsidiaries in association with the Iraq Oil-for-Food program. We commend the Australian government for initiating this inquiry and Commissioner Cole and his staff for their thorough efforts.

“This report provides copious evidence of wrongdoing on the part of AWB that, as the report suggests, requires further, criminal investigations.

“In addition to the Cole Inquiry’s focus on Australian law, there is ample reason to suspect that AWB, through its U.S. subsidiary, abused U.S. government programs at the expense of taxpayers and may have violated U.S. law. The industry is very pleased that the Secretary of Agriculture Mike Johanns has taken the step to resume the process of debarring AWB (USA), Ltd. from participation in our government’s export credit programs and that members of Congress have indicated a willingness to look into the impact of AWB’s actions in the U.S.

“NAWG and U.S. Wheat Associates are asking for and working cooperatively with both the Bush Administration and Congress to initiate appropriate investigations into any such abuses. Though AWB’s position as a state trading enterprise was not a focus of the Cole Inquiry, the U.S. wheat industry has long been opposed to state trading enterprises like AWB and will continue to work to remove them as barriers to free and open world wheat trade.”

In addition to the press statement, NAWG and U.S. Wheat sent a letter to Secretary of Agriculture Mike Johanns thanking him for his announcement that USDA would continue the disbarment process against AWB. NAWG and U.S. Wheat also sent letters to the Commodity Futures Trading Commission and the Department of Justice requesting appropriate investigations take place.

The full report and other information about the Cole Inquiry can be found at:

http://www.oilforfoodinquiry.gov.au/

USDA: 2006 FARM INCOME LIKELY TO BE DOWN 20 PERCENT. On Thursday, the USDA released a report forecasting net farm income at $58.9 billion for 2006 - $14.9 billion below the 2005 level.

Factors for the vast decline include a reduction in government payments by $7.8 billion coupled with an increase in production costs of nearly $11 billion.

While farm income is projected to decline by 19.9 percent, off farm income is expected to increase only by 3.3 percent. Average net cash farm income on all family farms is expected to be only $17,224.

For more information and to view the report, please visit: http://www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm