Communication will be key to finding compromises

By Jennifer M. Latzke

When the U.S. wheat Associates Board of Directors gathered in Kalispell, Mont., in mid-July, one item of business garnered quite a bit of attention.

A letter issued by Kansas wheat June 1, explaining its reasoning for decreasing its contributions to U.S. wheat and other wheat organizations was the topic on everyone's minds. The letter requested more accountability from U.S. wheat in reporting on the work it is doing for wheat producers and explained that Kansas wheat was cutting its fiscal year 2008 contributions to U.S. wheat by 10 percent, approving only $836,000 in funding.

"We take the concerns raised very seriously," said Steve Mercer, director of communications at U.S. Wheat. He added the discussions raised at the board meeting were just the first step in opening a dialogue with wheat producers.

"Overall, the atmosphere was very positive and good things happened," said Dusti Fritz, Kansas wheat CEO. "We are on the right track and making a good effort to be accountable."

The fuss over funding

Funding for U.S. wheat is sensitive to the checkoff dollars that come from each state. It's a delicate balance of collecting from state wheat checkoffs, and then using those dollars to qualify for more funding from the Foreign Agricultural Service through the U.S. Department of Agriculture.

For example, last year state checkoffs sent $4 million to U.S. Wheat, which then qualified for FAS cooperator funds of just over $11 million--about a 2.5 to 1 return on investment, Mercer said.

"Producer dollars and membership dues are basically used for administrative costs, salaries and office expenses," he added. "The money from the government is used for our market development activities. If farmers' weren't providing support, then we wouldn't qualify for the government funds."

Kansas wheat didn't go into its decision to decrease its funding lightly. Fritz explained that with the latest USDA estimates of a 300 million bushel Kansas crop, it will be the second consecutive year that Kansas production has been 30 to 40 percent below average. This in turn, affects the checkoff dollars the state can collect and appropriate to the national organizations that represent growers, all the more reason to be fiscally responsible.

A letter for attention

At the meeting a dialogue was opened to cover the points laid out in Kansas Wheat's letter. One such point was a need for better communication of U.S. Wheat's activities on behalf of wheat producers.

"We have been and always will be concerned about being good stewards of producers' money," Mercer said. "We tend to focus on our customers, though, but we're hiding our light under a bushel. We're not tuned into crowing about what we've done for producers and the positive thing is we recognize that now."

"U.S. wheat is doing a lot of work worldwide that is not reported," Fritz said. "U.S. wheat needs to do a better job of reporting these successes and find a more concise way of reporting to its membership.

"U.S. wheat Associates works on behalf of U.S. wheat producers around the world," she added. "Without this essential overseas activity, our competitors would be able to increase their market shares in many of these countries, cutting out U.S. producers. Kansas wheat agrees that much of the work U.S. wheat does is of great benefit to Kansas wheat producers. However, we need to make sure the organization is accountable and reports back."

In some cases, she explained, the information and accountability that Kansas wheat had asked for in its letter was available, it just wasn't presented in the right manner for board members. In the ongoing communication process between the organizations, Kansas wheat also hopes to work with U.S. wheat to have more member input on marketing issues, and to have them discussed openly at board meetings.

Mercer agreed that producers should have a sense of being more engaged in strategic planning, but that it's difficult to come up with the right formula.

"The big part of the discussion going forward will be to figure out how we can provide more opportunities for state commissions, growers and boards to be more involved," he said.

Additionally, the Kansas group would like to see more efficient use of time in board meetings and a progress report from U.S. wheat in a "windshield look" for board members and member states.

Mercer explained that U.S. wheat already offers various avenues of communication, such as its digital U.S. wheat Export Letter, an e-mail newsletter, and its website, www.uswheat.org. However, he said there is always room for improvement.

"We need to work to close the gap in communicating effectively back to producers," he said. The specifics of closing that gap will be part of the continuing dialogue between U.S. wheat and its member states.

Moving forward

The overall reaction to Kansas's letter and decreased funding has been supportive, Fritz said.

"Other state board and staff members expressed appreciation to Kansas for this effort," she said. And, the response from the national organizations has a respectful tone to it as well.

"The main reaction from U.S. wheat and the National Association of wheat Growers has been appreciative of the level that we are able to support the organizations at this time," Fritz said.

"Our number one priority has and will always be to do our best for the Kansas wheat producer," she added.

If and when the issues of accountability are ironed out, the Kansas wheat Commission has the authority to amend its budget with board approval. Until then, the dialogue will continue.

"The key is to understand that we'll continue to work toward informing producers about what we do," Mercer said.

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

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7/30/07

1 Star WK

Date: 7/26/07

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