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Kansas Wheat Commission approves increase in state assessment

By Jennifer M. Latzke


FAPRI UPDATE--Abner Womack, with the Food Ag Policy Research Institute at columbia, Mo., speaks to assembled Kansas whet growers about commodity prices, energy mandates, farm programs and yield comparisons. ( Journal photo by Jennifer M. Latzke.)

Rising costs were the topic of discussion at the annual Kansas Wheat meeting held recently at Hutchinson.

And, for the Kansas Wheat Commission, those costs resulted in an approved increase to the state wheat assessment.

The commission, in a move to keep ahead of rising research and promotion expenses, approved an increase to the state wheat assessment. Beginning Jan. 1, 2009, farmers will have a 1.5 cents per bushel wheat assessment at the first point of sale. This is an increase of one-half cent per bushel over the one cent per bushel assessment, in place since 1996, according to Kansas Wheat.

Although not required by state statute, the KWC is providing a comment period until Sept. 7. Wheat producers may call the KWC office at 866-75-WHEAT, e-mail kswheat@kswheat.com, or send comments by mail to the Kansas Wheat Office at 217 Southwind Place, Manhattan, KS 66503.

The Kansas Legislature approved an assessment authority increase from 10 mills to 20 mills during the 2008 Legislative Session. The actual assessment increase will be from 10 mills to 15 mills, or from one penny per bushel, to one-and-a-half pennies per bushel.

The assessment could generate an additional $1.2 to $1.4 million per year, depending upon the size of the annual wheat crop.

Will fund research

For the past year, KWC and KAWG have solicited input from farmers on the potential assessment authority increase. In a survey conducted last fall, farmers indicated that research was a top priority for their investment.

Former KWC Chairman Dean Stoskopf, Hoisington, said the wheat assessment has not changed in 12 years. Meanwhile, costs have increased, and state and federal support for wheat research has diminished.

"Our state's farmers stand ready to make the necessary commitment to ensure our research efforts continue and that they are innovative," Stoskopf said.

Also during the annual meeting, commissioners discussed the U.S. Department of Agriculture's Hard White Wheat Development Program, a provision of the 2008 farm bill. If the funds are available, the U.S. Department of Agriculture plans to devote about $35 million earmarked for the program from 2009 to 2012.

The HWWD program is designed to boost production to 240 million bushels by 2012. The program includes incentives of 20 cents per bushel and $2 per acre.

According to Kansas Wheat, the state leads the nation with more than 233,000 acres planted to hard white wheat from 2005 to 2007, most of which is planted in western Kansas. Kansas Wheat believes the program should be targeted to seed and production, to ensure that ample supplies of wheat get into the marketing chain.

KAWG debates resolutions

KAWG members debated and supported several resolutions at the group's annual business meeting.

Members voted to support of an increase in the Kansas wheat assessment, from one cent per bushel to 1.5 cents per bushel. The assessment increase will take effect Jan. 1, 2009, after a 30-day comment period.

A proposed resolution regarding the income definition of a "farm" brought much discussion from the members present. The resolution read that "KAWG supports raising the gross income definition of a farm from $1,000." Members debated that it was vague, in that defining a farm on the basis of gross income is difficult. However, in the final vote, the members elected to keep it on the resolution books.

Other resolutions passed covered such topics as the definition of interstate commerce and truck weight limits; Revenue Assurance-Harvest Price Option; and Conservation Reserve Program contract provisions.

New officers elected

The KWC elected Mike Brown, Colby, chairman. Doug Keesling, Chase, was elected vice-chairman, and Richard Randall, Scott City, is secretary-treasurer for 2008 to 2009.

"I look forward to continuing to represent the best interests of the state's wheat producers. The Kansas Wheat Commission continues to move forward, building on its strong history," Brown said in a release from Kansas Wheat.

The KWC also recognized Dean Stoskopf, outgoing chairman of the organization.

Paul Penner, Hillsboro, was elected president of KAWG. David Schemm, Sharon Springs, is KAWG's vice-president and Gary Millershaski, Lakin, is secretary-treasurer. New officers assume their roles on Jan. 1, 2009.

"KAWG has a great history of serving the wheat grower, from its inception through this current year. There have been many challenges as well as opportunities while engaging state and national legislators on issues that matter to Kansas wheat producers," Penner said.

"I am excited about the future for the Kansas wheat industry as we assist all stakeholders through effective policy work and providing the framework for advancements in wheat research that is beneficial for the Kansas wheat producer."

The growers also recognized Joe Kejr, Brookville, for his year as KAWG president.

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

8/18/08
2 Star EK\1-B

Date: 8/14/08


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