Nebraska Wheat Growers Gordon Stoner, President January 16, 2017

Unified Voice for U.S. Wheat Growers Congratulate states on their improved relationships between growers and commissions as well as working together with other commodity and agricultural groups. NAWG works closely with US Wheat Associates, North American Millers Association, American Bakers Association, Wheat Foods Council, National Grain and Feed Association, as well as with our state associations and commissions Establish strong relationships with wheat chain partners USW, NAMA, ABA, WFC, NGFA, etc State relationships with associations and commissions

My Next Association Assignment??

NAWG Organization 22 affiliated state wheat grower organizations Across all regions, all classes of wheat Represent 85%+ of all wheat production (2.2 Billion Bu) Grown in 42 States NAWG assesses approximately $0.65/1,000 bushels $1.5 million budget (Foundation $1.5 million) Top 5 states KS, ND, MT, WA, SD CA near bottom in wheat but 53 Congressman Missouri in process of joining NAWG Other work undertaken to protect the interests of wheat farmers this calendar year. With regards to financial reform, NAWG has been working along with a number of agriculture and lending organizations to ensure that those using derivatives to manage business risks, including the farm credit system and others, would be able to continue doing so without added costs. With regards to sustainability, NAWG has been working with agriculture groups and industry to follow the impact this national movement to define and measure sustainability is accurately depicted as well as insure that we have access to biotechnology tools and other tools to make sure the next generation of wheat growers can be viable.

NAWG Member States Light brown states are full members or limited members. Provisions on the types of memberships are detailed in the Bylaws, which are in the policy directory books. States in dark brown are those that have a state wheat organization of some sort (association or checkoff) but who are not affiliated with NAWG. AZ has a promotion council and are members of USW. Arkansas has a promotion board but are not members of USW. IL has a Wheat Association but are not members of NAWG.

NAWG Governance Structure President Exec Cmte - Officers (P, VP, Treas., Sec., PP) Board of Directors (2 per state) Committees Domestic and Trade Policy Joint International Trade Policy (USW) Joint Biotechnology (USW) Environment and Renewable Resources Research and Technology Operations and Planning Nominating Budget

Major Policy Areas Farm Support Programs – Title 1 and Crop Insurance Trade Conservation Policy Environmental Regulations Biotechnology Regulation Transportation Agriculture Research Funding

NWF Governance Structure National Wheat Foundation Vision: “The national center for wheat research information, education and outreach.” 9 member board of directors; farmers and industry reps NAWG CEO serves as Executive Director Current NWF Programs: National Wheat Action Plan National Wheat Yield Contest Leadership Programs (WOLF and WILOT) Jerry Minore Scholarship

Farmers need to realize that this caricature is a widely-held perception about the Farm Bill Perception that it’s just sending money to non-farmers We need to be communicating to the general public the importance of maintaining a safety net for farmers, particularly given the recent low prices

Farm Bill Present & Future Monitor & implementation of 2014 Farm Bill Ag Committee hearings likely begin March Possible early Farm Bill 2017 Problems with ARC-Co (NASS data), likely legislative fix only path forward Next Farm Bill evolutionary not revolutionary Timing of ARC/PLC payment, Advance pymt? #1 priority from surveys, protect Crop Ins

This will segue into the next slide, which covers the primarily political threats to farm programs

Policy Dynamics in next Farm Bill Cotton 2014 Farm Bill removed cotton lint from Title 1 New insurance program (STAX) hasn’t worked as planned NCC cottonseed proposal Chairman Conaway’s interest Dairy Dairy Margin Protection Program hasn’t worked as planned Prices have plummeted Ranking Member Peterson’s interest ARC Data Issues NASS vs. RMA data Baseline -A number of issues have spurred interest in moving up consideration of the Farm Bill -Budget issues in Farm Bill -But we need to think about this from the perspective of what our needs are

Political Dynamics in next Farm Bill Appropriations Process Sequestration Upcoming Farm Bill battle Educating new Members of Congress Primary policy threats Hard cap on federal share of the crop insurance producer premium AGI limitations for eligibility Company reimbursements – A&O and rate of return Elimination of Harvest Price Option (HPO)

Second Verse, Same as the First… Heritage Foundation – “Farms and Free Enterprise: A Blueprint for Agricultural Policy” A “free-market vision” for agriculture policy Repeal ARC/PLC Seek private risk management programs Separate SNAP from agriculture programs Environmental Working Group Farm program database New conservation database released recently EWG: voluntary conservation hasn’t worked

Farm Bill Vision or Lack Thereof 9 am late July pea harvest 11 am harvest same day

Crop Insurance Initiative Quality issues (FN, DHV, DON) Discount schedules & APH adjustment Mark to count…flawed methodology

Why Crop Insurance?

Base Acre Question Base established 1985 with update for pulse, oil seeds 2004, reallocation 2014 Base exceeds planted by 10 Million for wheat Safety net or not Expire CRP receiving payments Minimal correlation between planted and base Mandatory / Voluntary

Trade Policy Trade Promotion Authority NAWG and USW support the Trans-Pacific Partnership (TPP) Congressional Outlook: Presidential election outcome: pessimistic outlook for consideration Concerns expressed by key Congressional leaders Key Messages to Congress: TPP would eliminate tariffs on U.S. wheat in Vietnam Would improve market access in Japan Opens the door to bringing in other countries in the region; places pressure on China

Trade Policy Trade relations with Cuba Administrative actions Congressional actions – Financial Services Appropriations Canadian grain grading problems – comparison to COOL Market Access Program (MAP), Foreign Market Development (FMD) MAP – Authorized in the Farm Bill at $200 million annually FMD program – Authorized in the Farm Bill at $34.5 million annually Authorization process and appropriations challenges Rollout of USW’s Foreign Domestic Support Study

Conservation/Environmental Policy Implementation of Farm Bill conservation programs Conservation Reserve Program (CRP) Conservation Compliance requirements for Crop Insurance Waters of the U.S. (WOTUS) rule Judicial stay Congressional efforts to force rescission of rule Sustainability – Field to Market

Other NAWG Policy Issues Transportation Implementation of STB Reauthorization Regulation of biotechnology GMO labeling debate APHIS Part 340 regulation – impact on wheat Development of policy priorities for next Farm Bill Farm Bill Survey this summer Trans-Atlantic Trade and Investment Partnership Agricultural Research Funding National Wheat Improvement Committee Advocate for funding for scab research and genotyping labs

Thank You! Questions?