KAWG E-Update

Congressman Roger Marshall, M.D., was selected to be a member of the House Committee on Agriculture for the 115th United States Congress.

“We committed to getting the Big 1st a seat back on the Ag Committee,” Congressman Marshall said. “I’m proud to be able to say today that we have delivered on that promise.” (Watch Video)

Kansas Winter Wheat Seedings

From USDA NASS

Winter wheat seeded area for harvest in 2017 is estimated at 7.40 million acres, down from last year’s seeded area of 8.50 million acres, according
to the USDA’s National Agricultural Statistics Service. (Read more.)

Membership Renewal Season is Here!

Keep an eye out for your KAWG membership renewal form to come in the mail. Most should be arriving next week! If you have any questions on your membership, please contact Jordan Hildebrand, Program Assistant, at

785-539-0255 or by email at jhildebrand@kswheat.com

Applications for Herb Clutter Memorial Scholarship now accepted

High school seniors pursuing careers in agriculture are encouraged to apply for the 2017 Herb Clutter Memorial Scholarship. The Herb Clutter Memorial Scholarship was established in 2009 to honor Herb Clutter’s influential role in organizing leadership groups on behalf of Kansas wheat producers and is administered by the Kansas Association of Wheat Growers.

The scholarship fund will award one $500 scholarship per year, to a college or university-bound incoming freshman from Kansas, pursuing a career in the field of agriculture. To be eligible for the scholarship, applicants must plan to be a full-time student at any two or four year, Kansas college or university. Recipients will be selected based on academic achievement, leadership qualities and career objectives focused around the field of agriculture. Recipients will receive the scholarship to be applied toward tuition for the student’s college or university education. The scholarship is non-renewable. (Read more.)

NAWG Weekly Update

Regulatory Reform Bill Passes in the House
This week the House of Representatives debated and passed H.R. 5, the Regulatory Accountability Act of 2017.  The bill includes several smaller regulatory reform bills to clarify the Administrative Procedures Act and define “high impact rules” and “major guidance” relating to Agency actions taken without a formal rulemaking process.  The bill will improve requirements for final regulations and includes guidance for agencies in completing cost-benefit analysis of the impact of proposed regulations. Also included is the Small Business Regulatory Flexibility Act that required agencies to account for the direct, indirect, and cumulative impacts of new regulations on small businesses and find flexible ways to reduce them. The bill includes a requirement for advanced notice of proposed rulemaking and when publishing a proposed rule, and agencies must publish plain-language, online summaries of the proposed rule so the public can understand the proposed action.

During debate, the House adopted an amendment by Representative Collin Peterson (D-MN), supported by NAWG, that prohibit those working in an official capacity of an agency and those receiving federal funds from the agency from advocating in support of or against a proposed rule, or appeal to the public to undertake advocacy in support of or against the rule.  However, the agencies would continue to be allowed to provide information regarding the rule in an impartial manner. This amendment would address many of the issues that surrounded the Administration’s actions related to the Waters of the U.S. regulation.

House Advances CFTC Reauthorization Bill
This afternoon, the House of Representatives passed legislation to reauthorize the Commodity Futures Trading Commission (CFTC) on a 239-182 vote.  The Commodity End-User Relief Act (H.R. 238) includes a number of important provisions, including customer protections intended to help prevent another MF Global situation, relief from infeasible recordkeeping requirements in commodity markets, and other provisions that are beneficial to agriculture.  Earlier in the week, the National Association of Wheat Growers sent a letter to Congressional offices with a number of other agricultural associations urging Members of Congress to support the reauthorization bill.  The legislation will now head to the Senate for consideration.

NAWG Highlights Importance of Trade to Incoming Administration
Last week, the National Association of Wheat Growers joined with 15 other producer organizations in sending a letter to President-Elect Mike Pence to highlight the continued importance of trade to the agricultural economy, particularly as half of the U.S. wheat crop is exported

As noted in the letter, “Agriculture and agriculture-related industries contributed $835 billion to the U.S. GDP in 2014, a 4.8 percent share.”  By expanding markets, free trade agreements have the potential to greatly increase the economic contribution of agriculture.  The groups urged the incoming administration to emphasize expanding markets as well to ensure existing agreements are enforced.  “As the Trump Administration assembles its team and politics, U.S. agricultural trade interests must be maintained, not only in existing markets but by expanding access to new markets.”

In sending the letter, NAWG President Stoner noted that “NAWG not only looks forward to working with President-elect Trump and his team in developing effective trade policy for U.S. agriculture but also enforcing existing trade agreements.  America’s farmers are the most productive in the world and compete well in the global market place, given a level playing field.”  Moving forward, NAWG will continue to urge Congress and the incoming Administration to support trade agreements that create new market opportunities for U.S. wheat.

Senate Passes Budget Resolution
Early this morning, the Senate voted 51-48 to adopt a FY 2017 budget resolution that was intended by Congressional leadership to be used to repeal the Affordable Care Act (ACA).  As part of the budget resolution process, Senators are able to offer an unlimited number of amendments, and Senators are able to call for votes on those amendments.  On Wednesday, the chamber held what’s colloquially referred to as a “vote-a-rama” where continuous votes were held until the final budget resolution was approved.  The resolution now heads to the House of Representatives where a vote is expected tomorrow.  During House consideration, some amendments could be allowed as well.

If the House passes the budget resolution, it would then go through a conference process where conferees would be able to instruct authorizing Committees in the House and Senate to report a budget reconciliation bill, which would ultimately be used to repeal the ACA.  In the Senate, a reconciliation bill does not require a 60 vote threshold, but only a simple majority to pass.

Looking ahead, we expect that Congress will be taking up a FY 2018 Budget Resolution this spring.  As in the past, opponents of crop insurance and farm programs have often used the budget and appropriations process to come after funding for these critical programs.  NAWG continues to engage Congress to discuss the difficult economic conditions in wheat country and the necessity of maintaining a strong risk management system and a sufficient safety net, and we urge wheat farmers across the country to continue contacting your elected officials to talk about how the Farm Bill is working for you during these difficult times.

Market Analysis: WHEAT PRICE ACTION INFLUENCED BY REPORTS

Larry Glenn, market analyst for Frontier Ag, Oakley and Leffler Commodities, Augusta, provides market analysis for KAWG members. E-mail Larry at  larryglenn61@yahoo.com.

It was a positive week for the wheat price as the chart for the March Kansas City wheat futures illustrates.  The wheat price recovered from the mid-week break and scored a new high for the move.  The buying came from numerous directions.

On Thursday, the USDA released grain reports.  The annual winter wheat plantings report listed a smaller number than the trade expected.  The All Winter Wheat Plantings listed at 32.38 million acres.  This was two million acres below the trade estimates and the lowest since 1909.  The two million acre reduction was all in the hard red winter wheat category.  Not only did the report give the wheat price a boost, the buying of Kansas City wheat and the selling of Chicago wheat futures became an active spread trade.

Technical buying increased during the week.  Bullish technical traders became aggressive.  This was especially true in the Kansas City wheat contracts.  Thursday’s price action took out the last reaction high.  Friday’s trading saw a new high for the last 4 ½ months.  In addition, index funds re-balanced their portfolio.  They unloaded commodities that are at a historically high price level and bought commodities that are at a historically low price level.  Wheat is in the latter category.

Wheat traders will have an extra day this weekend to evaluate their positions.  Because of a government holiday, trading will resume in the wheat market on Tuesday.  Yes, the reality is the supply of wheat is large both here and around the world but this is a known factor.  There is upside potential for the wheat price but an advance will be limited.

It seems too early to be forward pricing a portion of 2017 wheat production.  Hopefully, the flat price will improve and the basis will decrease.  This could take some time especially for basis improvement.

Best Regards,

Kansas Wheat Staff

Source: Kansas Association of Wheat Growers