Oklahoma wheat growers gather for annual meeting

By Jennifer M. Latzke

The threat of ice didn't deter farmers from gathering in Oklahoma City, Okla., for the annual Oklahoma Wheat Growers Association meeting, Dec. 8. The morning session looked at farm policy at the state, federal and international levels, and about the changing influence of non-traditional groups on ag policy.

The morning kicked off with a welcome from Oklahoma Secretary of Agriculture Terry Peach, who spoke on the many challenges facing Oklahoma farmers in the coming year.

Topping the list is the immigration issue. The Oklahoma House of Representatives enacted House Bill 1804 Nov. 1, the Oklahoma Taxpayer and Citizen Protection Act of 2007. The act requires all state agencies to cooperate with federal immigration authorities in enforcing federal immigration laws, and makes it unlawful for Oklahomans to shelter or transport known illegal immigrants.

"This is an emotional issue, and everyone is concerned about illegal immigration, but we need someone to do the work that needs to be done," Peach said. He explained that there are many watermelon farmers in the state who supply nutrition programs who won't be planting a crop in 2008 because they won't have an available workforce to harvest the melons.

"Emotion overwhelmed the voters at the capitol, but now we'll see the effects," Peach said.

Finally, a new laboratory will be completed next December at the Oklahoma Department of Agriculture. The $2.2 million bond issue that was passed to pay for the lab and equipment was fine at the time, but after a three-year construction wait, the funds will barely cover the cost of the lab construction. Therefore, the department is asking the legislature for a one-time $2.5 million bond for new equipment to stock the new lab.

"We have some 1942 centrifuges and I'd hate to have to move them into a new lab," Peach said.

International and domestic issues

Ron Suppes, Chairman of U.S. Wheat Associates discussed the role of export markets in the wheat business. The recent Peru Free Trade Agreement should open up the wheat market in that country, Suppes said.

"We worked with millers and congressmen in Peru while NAWG worked here with the U.S. Congress," he said.

Similarly, a proposed Columbian Free Trade Agreement should open up market share for U.S. wheat.

Globally, demand is rising, Suppes said, buyers just need assistance in how to buy wheat from the United States.

"The middle class in developing countries is set to rise 160 percent by 2020, versus only 15 percent in developed countries," Suppes said. "The middle class wants better quality food and they have the money to demand it." This is a niche U.S. wheat can fill.

Domestically, wheat faces competition for acres from ethanol expansion into wheat country. With $4 corn, Suppes said, we have to find a way to maintain our wheat acres.

Jerry McReynolds, National Association of Wheat Growers secretary/treasurer spoke about the latest news on domestic farm policy.

The farm bill is the lead topic for NAWG, and McReynolds told growers that there is some light at the end of the tunnel.

"The Senate just took action to limit the number of amendments to 20 per party," he said. "It was at about 400 amendments. If the bill can get through the Senate and on to conference, there's a chance for a bill the first of the year." Wheat's big concern is direct payments, and NAWG is working to protect them in this farm bill. Other items important to Oklahoma wheat growers would be an increase in the Renewable Fuels Standard, crop insurance, and conservation.

Payment limits are a concern to NAWG, McReynolds said, because in today's ag climate it's necessary for a family farm with multiple generations to be large in order to generate enough income to support all the family members.

"If payments were lowered to $20,000 per individual in Kansas, the state would lose $366 million in revenue," McReynolds said. "It would affect about 500 family farms, and these are the mom and pop farms. In Oklahoma, there would be a loss of $75 million." Agriculture is a driver for rural economies, he added.

Crop insurance, is vital to Kansas and Oklahoma growers because they farm in areas with environmental conditions that are wildly fluctuating, McReynolds said. "Our input costs are so out of line that we have to have protection," he said.

The WTO cotton ruling has the potential for a ripple affect in other commodities, he said. Congress, in debating the farm bill, has to be wary that payments are WTO-compliant, but taking away the direct payment is not the way to do it, he said.

Overall, McReynolds told growers it's vital that they become involved in telling their own story to the public and to their congressional representatives because no one else will.

Non-traditional groups shaping farm policy

Many in Oklahoma have shared their concerns about the growing influence of non-agricultural lobbying groups on the farm bill. Larry Sanders, Oklahoma State University farm policy specialist, explained to the wheat growers their rising presence on the policy stage.

"We've seen all sorts of groups coming out of the wood work discussing the farm bill and how it's now important to them," Sanders said. "Conservation groups, nutrition, energy, and more. But they can't sink the farm bill today or in the future."

However, farm organizations should not ignore these new players on the policy stage.

"Traditional ag groups ignore these groups at their own peril," Sanders said. "We might ally with them on common interests, but we may also reach a point where it's easier to walk away form them and their support."

Sanders explained that public perception of ag policy and traditional agricultural groups' perceptions of farm policy are vastly different.

"For 100 or more years the U.S. has had a social contract between ag and the American public," Sanders said. "But the American public is starting to wonder if giving money to ag is what they should be doing when they have shelves full of cheap food." Myths and individual values affect the perception the public has of the facts and their solutions.

The public then takes this perception and through non-traditional groups approaches Congress about the farm bill. This means that now instead of Congress only having agricultural leaders tell them the problems they need to fix, they now also have consumers, environmentalists, taxpayers, trade groups and others telling them the perceived problems.

"Seven in 10 Americans belong to at least one special interest group," Sanders said. "And at least one in four belongs to four or more interest groups."

In the end, farmers and their organizations need to pay attention to the non-traditional groups because they do care about farm policy. "They may not care like you do, but they care," Sanders said. "It's important that you support efforts to educate people on the facts about agriculture."

Jennifer M. Latzke can be reached by phone at 620-227-1807, or by e-mail at jlatzke@hpj.com.

12/17/07
5 Star OK\6-B

Date: 12/13/07

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