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Montana Ag Network: March 20th Report – Wheat exports

Posted at 5:14 PM, Mar 20, 2019
and last updated 2019-03-20 19:14:20-04

This week, the U.S. Wheat Associates and the National Association of Wheat Growers welcomed the announcement by President Trump and Brazilian President Jair Bolsonaro that Brazil has agreed to implement a duty-free tariff rate quota (TRQ) for wheat, a longstanding obligation under Brazil’s World Trade Organization (WTO) commitments.

This agreement opens an annual opportunity for U.S. wheat farmers to compete on a level playing field for 750,000 metric tons (about 28 million bushels) of wheat under the TRQ.

Ledger, Montana farmer and U.S. Wheat Associates (USW) Chairman Kris Kolstad said this is good news for Montana Wheat farmers.

“It’s important for U.S. wheat. 50 percent of U.S. wheat is exported. In Montana, closer to 80 percent of wheat is exported,” Kolstad said. “So those export markets are crucial to finical stability of the U.S. farmer. As you know we are always looking for new opportunities especially when other agreements are stalling out right now. This opportunity provides a level playing field for U.S. farmers for about 28 million bushels of wheat. This is good news for us.”

While the trade deal with Brazil is welcomed news, access for U.S. wheat to the Asian market is a top priority for the USW.

“Chief Agriculture Negotiator Greg Doud and others in the U.S. Trade Representative’s Office understand wheat,” Kolstad said. “They understand the importance of the Japanese market for U.S. farmers and especially to the Montana Farmer. We are hoping we will make some good progress with Japan in the next few months. China we are steadily making progress and they get a little more press than the Japan market. But I wouldn’t want to guess when a trade agreement is signed with China.”

In some years, Brazil has imported as little as 115,000 metric tons of U.S. hard red winter and soft red winter wheat.

On Tuesday, The New York Stock Exchange welcomed Secretary of Agriculture Sonny Perdue and agriculture leaders to New York City.

The stock exchange  was celebrating all the contributions that farmers, ranchers, foresters, and agricultural producers provide the American economy. To honor the occasion, and those who “Do Right and Feed Everyone,” Secretary Perdue rang the opening bell. He was joined by agricultural leaders including current FFA Members, Jennifer Houston president of the national cattlemen’s beef association, U.S. Cattlemen’s association and others to celebrate the future of American agriculture.

The Department of Agriculture is promoting resources to help prevent the spread of African swine fever.

USDA notes that USDA-trained detector dogs played a major role in the seizure of roughly one million pounds of pork smuggled from China into the U.S. where there is an outbreak of African swine fever.

Stating “prevention is our best protection,” the resources included potential African swine fever pathways, biosecurity measures, signs and symptoms producers should watch for, as well as traveler tips.

USDA is monitoring the recent outbreaks of African swine fever in Asia and Europe and has proactively taken steps to increase safeguarding efforts to keep the disease out of the United States.

The resources announced this week can be found at www.aphis.usda.gov.

-Reported by Lane Nordlund/MTN News