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California Association of Wheat Growers (CAWG)

February 28, 2007

WEEKLY WHEAT BULLETIN AVAILABLE FROM CWC. The California Wheat Commission has its weekly update available by email or fax to interested parties. The Weekly Wheat Bulletin is designed to share quick, informal and reliable information about the state's wheat crop and disease conditions. Comments forwarded by Thursday morning of each week will be posted in the Bulletin for distribution Thursday evening. Archived copies of the 2007 Wheat Bulletin may be accessed on the California Wheat Commission website: www.californiawheat.org. If you would like to receive the bulletin, please contact the Commission at (530) 661-1292.

FARM BUREAU HOLDS ANNUAL COMMODITY MEETINGS. The California Farm Bureau Federation held its annual commodity advisory committee meetings to consider issues of concern to individual commodities and recommend policy or board actions. The Wheat and Feed Grains Committee discussed a range of issues including the Farm Bill, biofuels, disaster aid, research and food aid. Representatives from the National Association of Wheat Growers, the American Farm Bureau Federation, CAWG, CWC and UC Cooperative Extension shared information with grower committee members. The committee recommended that the CFBF Board support: the Department of Energy cellulosic ethanol loan guarantee program; equitable treatment for wheat in the new Farm Bill; and that the Board should consider a contribution to the Grain Foundation for a new test plot harvester. The committee also urged development of policies to urge Delegation of Authority by USDA for state directors for farm program implementation and to reinforce support for keeping the food in U.S. food aid programs.

AGRICULTURAL GROUPS MEET WITH SENATOR FEINSTEIN’S STAFF. CAWG and CWC joined other ag leaders in a meeting with Senator Feinstein’s California and Washington, DC staff. The Senator’s new Washington ag staff spent several days in California meeting with various groups and touring the state. They heard our comments and concerns regarding farm bill funding, disaster aid, cellulosic ethanol, conservation programs, and food aid.

HOUSE AG COMMITTEE ADOPTS BUDGET LETTER. (From the House Committee on Agriculture)  The House Committee on Agriculture adopted the budget views and estimates letter which outlines the Committee's budget recommendations for the federal agencies and programs under its jurisdiction, outlining the funding issues at the forefront of the upcoming Farm Bill reauthorization.  The letter will be submitted to Budget Committee Chairman John Spratt of South Carolina pursuant to section 301(d) of the Congressional Budget Act of 1974 and House Rule X, clause 4(f).

"Our action today represents an early step on our road to the development of the 2007 Farm Bill," Chairman Collin Peterson said. "Because the budget resolution will, in effect, determine the amount of funding we will have to write the farm bill, its shape and form will have a crucial impact on our work.  Our proposed views and estimates letter sends these messages:  the 2002 Farm Bill is fiscally responsible.  It is popular in farm country.  And it is serving to enhance the well-being of our farmers, ranchers, needy citizens, and consumers."

"We urge the Budget Committee to carefully consider the budget views and estimates letter we are submitting and not solely base their decision on projected baselines.  We're asking that they not turn their backs on America's farmers and ranchers and provide the Agriculture Committee with the funds needed to address the wide variety of issues facing Rural America," said Ranking Member Bob Goodlatte.

The letter to Budget Chairman Spratt shares the views of the Agriculture Committee following the series of field hearings held by the committee last year to meet with farmers and ranchers across America, as well as processors and consumers, about current farm policies and where they can be improved.  Chairman Peterson and Ranking Member Goodlatte previously testified before the Budget Committee on February 14, 2007, about the positive feedback they received from the field hearings.

This year's Farm Bill debate will include new proposals that will require additional resources from the Budget Committee, including a strong energy title, essential to facilitate investments in the expanding agriculturally-based renewable energy market, including ethanol and biodiesel.  The letter also states that the committee likely will consider proposals that may affect budget allocations in the areas of specialty crops, conservation, food stamps and the Milk Income Loss Contract program.

As CAWG leaders heard repeatedly in Washington, DC in January, the budget baseline setting total dollars available for farm bill programs will be critical in defining the shape of the new Farm Bill.

PRESIDENT PROMOTES CELLULOSIC ETHANOL IN PLANT TOUR. President George W. Bush made a pitch for cellulosic ethanol last week in a tour of a Novozymes enzyme plant. Bush proposed in his State of the Union speech last month that 35 billion gallons of renewable fuel be used annually by 2017. To meet that goal, he said this week, would require the use of cellulosic ethanol.

NAWG and NAWG states are working on the development of cellulosic ethanol – including the implementation of a loan guarantee program authorized in 2005 - because of the economic advantages it could provide for wheat growers. Leading cellulosic ethanol companies have indicated their first feedstock of choice for this technology is wheat straw.

In addition, the NAWG Board of Directors unanimously decided late last year to add representation of biomass growers to the organization’s mandate.

LETTER ON PERU, COLOMBIA FTAS ENCOURAGES SPEEDY PASSAGE. Forty-five agriculture organizations including NAWG sent a letter to Congress last week expressing support for the recently-concluded free trade agreements with Colombia and Peru.
 
The letter read, in part:
 
“Both of these FTAs provide important new market access benefits that will stimulate U.S. exports, create U.S. jobs and strengthen rural economies. Indeed, the Colombia and Peru Trade Promotion Agreements are widely viewed as being the best ever negotiated on behalf of U.S. agriculture. 

“Many U.S. food and agricultural products will become eligible for duty-free treatment in these countries immediately upon entry into force of the agreements, and virtually all will receive duty-free treatment over specified phase-in periods.”

Under the Colombia Trade Promotion Agreement, a variety of U.S. food and agricultural products, including wheat, will receive immediate duty-free treatment. The U.S. has traditionally dominated the Colombian market but continues to lose sales to cheaper Argentinean and Canadian wheat.

The TPA between the United States and Peru, when implemented, will immediately lock tariffs for wheat at zero. Binding tariffs on all wheat and durum at zero will help the U.S. wheat industry rebuild market share, which has been as high as 50 percent in the past.

CAWG ANNUAL MEETING SET FOR MARCH 27. All CAWG members are invited to attend our annual meeting in Sacramento starting at 1:00 pm. For more information and to RSVP, please call the CAWG office at (916) 492-7066.