MN Wheat Weekly Update
National Association of Wheat Growers (NAWG) Update
NWF Hosts Wheat 105 Educational Event
- On Wednesday, March 3, 2021, the National Wheat Foundation (NWF) held its fifth annual wheat education event for Congressional staffers, called Wheat 105. Hosted jointly with BNSF Railroad, Wheat 105 featured speakers from the NWF, BNSF, U.S. Wheat Associates, the McGregor Company, the North American Millers Association, and the Grain Foods Foundation, and it enabled Hill staff to interact directly with 18 organizations/companies throughout the entire wheat value chain. “Five years ago, we started hosting this annual educational event for policymakers and their staff in order to demonstrate just how big of a role the wheat value chain plays in not only the farm economy, but more broadly in feeding the country and the world,” said NWF Executive Director Chandler Goule. “Though it was virtual this year, we had great participation from Hill staff and look forward to continuing this event in-person in the future.”
2021 Annual Conference Recap
- Last week, the National Association of Wheat Growers concluded its annual conference, which entailed organizational action and adoption of 2021 policy priorities. Given the impacts of COVID-19 over the past year, the board re-elected the same slate of officers to continue in their roles for 2021. With that action, the board has re-elected Dave Milligan (MI) as President; Nicole Berg (WA) as Vice President; Brent Cheyne (OR) as Treasurer; Keeff Felty (OK) as Secretary; and Ben Scholz (TX) as Past President. The board also adopted 2021 policy priorities, which the organization will take to the Hill and the Administration, including with a virtual Hill week next week.
US Wheat Associates, Weekly Price Report – Claire Hutchins
- Wheat futures ended mixed this week after several days of technical selling. CBOT soft red winter (SRW) May futures lost 7 cents to end at $6.53/bu. KCBT hard red winter (HRW) futures prices fell 7 cents to close at $6.26/bu. MGE hard red spring (HRS) futures prices gained 6 cents to end at$6.45/bu. CBOT corn futures fell 2 cents to end at $5.45/bu. CBOT soybean futures added 26 cents to close at $14.30/bu.
- This week’s commercial sales of 219,000 metric tons (MT) for delivery in 2020/21 were up 31% from last week’s 168,000 MT and in line with trade expectations of 100,000 MT to 500,000 MT. Year-to-date sales of 23.8 million metric tons (MMT) are 3% ahead of last year’s pace. USDA forecasts total U.S. wheat exports will reach 26.8 MMT in 2020/21, 2% ahead of last year, if realized.
- View the most recent USW Commercial Sales report here.
Industry Updates – MN Farm Bureau Federation IMPACT
February Forecast – $1.6 Billion Surplus
- The updated look at the state’s fiscal health was released on Friday, February 26. The projected $1.3 billion deficit will turn into a $1.6 billion state surplus. However, the forecast included one-time federal assistance to states as well as the assumption that the current legislation in Congress will move forward.
- The Commissioner of Minnesota Management and Budget was cautionary in his remarks, reiterating multiple times the pandemic has not hit Minnesota families equally and the state’s budget surplus does not align with the pocketbooks of many families across the state.
- The February Forecast numbers provide leadership of the House and Senate updated numbers to craft their respective budget proposals on. Governor Walz is also expected to release an updated budget proposal.
- Learn more about the forecast here: mn.gov/mmb/forecast/forecast/
PPP Tax Conformity
- The Minnesota Senate Committee on Taxes held a hearing on SF 263, authored by Sen. Tom Bakk (I- Cook) which addresses the taxability of the Paycheck Protection Program at the state level, specifically federal conformity from gross income for forgiven loans and allows for the deductibility of PPP business expenses.
- The Paycheck Protection Program (PPP) is providing vital working capital to farmers and ranchers who are trying to remain operational during this critical time. The incentives offered by the program are helping to keep food, fiber, and fuel production constant by providing farmers and ranchers funds to assist in paying wages, rent, mortgage interest and utilities. These two provisions ensure that those forgiven PPP loans were to be excluded from taxation and clarification that allowable expenses paid for with forgiven PPP loans may be taken as a business deduction for income tax purposes without limitation.
- The House tax committee has already heard the bill as part of a larger federal conformity package where it was laid over for possible inclusion in a larger tax package.
- Minnesota Farm Bureau submitted written testimony to the Senate Tax Committee in support of this legislation.
Other Items of Interest
NCI Cereal Innovators Webinar Series –
- Please join AURI on April 14th at 9:30 am (CST) at the Northern Crops Institute’s “Cereal Innovators” webinar. Dr. George Annor, cereal chemist in the Department of Food Science and Nutrition at the University of Minnesota, and Dr. James Anderson, Professor of Wheat Breeding and Genetics at the University of Minnesota, will cover insights from research funded through the Minnesota Department of Agriculture’s Agricultural Growth, Research, and Innovation (AGRI) Grant.