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Ag committee passes increase on assessment cap

Kansas

House Bill 2897, a bill that would increase the assessment cap on wheat, corn, grain sorghum and sunflowers sold in Kansas, passed out of the Senate Agriculture Committee March 26. The bill includes a provision that suspends the state assessment while a national check-off program for any of the five commodities is in effect. It also indicates that the Kansas commodity commissions may appoint a first purchaser as a third at large position.

The Kansas Association of Wheat Growers approached the 2008 Kansas Legislature for an increase in the wheat assessment authority from 10 mills per bushel to 20 mills per bushel. The Kansas Wheat Commission plans to use any increase for additional investment in research and biotechnology, cellulosic ethanol and consumer education.

"Current wheat shortages are reinforcing the need for advanced and expanded wheat research," said Joe Kejr, President of the Kansas Association of Wheat Growers. "We approached the Legislature because increased funding of research is necessary for the long-term viability of the Kansas wheat industry."

The proposed increase is a legislative authority increase only, essentially raising the assessment cap from one penny to two pennies per bushel. This does not raise the actual assessment to two pennies. If this legislative authority is approved, then producer input will be garnered before any change is made.

The last time the wheat assessment authority was changed in statute was 1982. At this time, the authority was raised from 3 to 10 mills. It has been 26 years since the wheat assessment authority was changed. Many changes have occurred at home and around the world during this time. The wheat industry must change, as well.

Kansas Wheat has developed a long-term strategic plan to help Kansas wheat producers meet the challenges of the future. Kansas Wheat is the cooperative agreement between the Kansas Wheat Commission and the Kansas Association of Wheat Growers who have joined together to be leaders in the adoption of profitable innovations for wheat. Through several below average harvests and decreasing wheat acres, the Kansas Wheat Commissioners have done their best to maintain essential investments. Even with dramatic cuts in expenditures, reserves have been depleted.

Maintaining essential investments is important, but to enhance the competitiveness of wheat by facilitating the development and adoption of innovation for wheat producers, additional investment is needed.

Since 2001, Kansas State University has experienced a loss of 15 to 20 percent in state support, just in wheat research. For the past few years, wheat producers have been asked to fill in this gap. This struggle for funding is making it harder and harder to keep young, aspiring scientists interested in wheat.

Advances have been made in crop science to utilize biotechnology traits such as plant resistance to insects or disease, as well as tolerance to herbicide and environmental conditions such as drought. Yet, wheat has not enjoyed any of these new traits because of consumer perceptions about this technology.

One developing value-added area is the use of biomass for ethanol production (crop residues such as wheat straw and dedicated biomass crops). Kansas Wheat believes that, if a biomass industry is to grow and prosper in Kansas, producers need to have information available to make informed decisions about residue removal from their cropland.

A tremendous challenge faced by the wheat industry is that the average consumer is unaware that our nation's safe, affordable food supply begins at the farm. The goal is to amplify the farm to table message and build widespread consumer awareness about wheat and agriculture in its entirety. Kansas Wheat will do this by focusing its educational efforts about the importance of agriculture and nutrition to a wide and diverse urban audience.

4/7/08
2 Star EK\5-B

Date: 4/3/08


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