The 2012 Farm Bill has faced a series of challenges, the largest of which is at least a $24 billion reduction in funding. Since last fall, members of the Senate and House Ag Committees have made significant strides to craft a bill that saves taxpayers billions of dollars, but more work is needed to secure adequate protection for America’s farmers.

Throughout the process, the TWPA has been working with legislators to ensure adequate coverage for Texas wheat growers through a comprehensive and diverse farm policy package which complements a strong crop insurance program.

“We need options in crop insurance coverage and Title I programs that will work for farm operations across our diverse state and country,” said TWPA President Ben Scholz, a wheat grower from Wylie, Texas. “Regional differences across the country do not allow for one-size-fits-all farm policy.”

In late April, the Senate Committee on Agriculture, Nutrition and Forestry passed its version of the 2012 farm bill which included several positive attributes for wheat farmers, but left them exposed to significant risk.

The Senate committee’s bill eliminates the Direct, Counter-Cyclical, and Average Crop Revenue Election (ACRE) programs and replaces them with the Agricultural Risk Coverage (ARC) program. ARC is designed to address shallow-losses and provides a narrow 10 percent band of revenue protection not covered by crop insurance policies. Title I of the bill does not include measures which will protect farmers when crop prices plunge or disasters occur.  The Marketing Loan program is kept intact, but with rates so low that they are not applicable to today’s operating environment.

According to TWPA executives, more than one option is needed to address drastic regional differences and the huge amount of risk exposure under which most Texas wheat growers operate.

“Moving forward we will push for additional coverage options for producers in Title I,” said Scholz. “Farm programs must meet the needs of all wheat producers, and those needs will be different for each individual operation.”

Due to the variable climate and growing conditions in Texas, available crop insurance coverage levels are lower than in other parts of the country and premiums tend to be higher. Therefore, Texas wheat farmers are exposed to more risk and shallow-loss programs will not protect them when they need it most – during significant price declines or production failures.

It is no secret that farmers are at the mercy of an unpredictable and volatile market.  Current price trends have been favorable for farming operations, but when prices decline, a true safety net must be in place to protect farmers and the nation’s food supply.

Successes of the senate bill include important improvements to crop insurance programs including permanent enterprise units which are separated for irrigated and non-irrigated acres.

“The TWPA has continued to discuss the importance of crop insurance and we are pleased with the improvements made in the Senate bill,” said Scholz. “Crop insurance is essential to our members and their ability to operate under adverse conditions.”

According to Scholz, it is important for Texas wheat growers to see a farm bill completed this year that includes significant and adequate protection for their operations.

“We are very appreciative of the steps the Senate Agricultural Committee has taken to begin the arduous process of crafting essential farm legislation,” said Scholz. “We look forward to continually working with members in the House and Senate to make improvements to the farm safety net that address both regional and commodity concerns.”

The 35 wheat industry visitors, including a dozen growers and 10 milling and baking representatives, are spreading that message as part of an annual fly-in focusing on wheat research, sponsored by the National Wheat Improvement Committee, a group of wheat scientists and stakeholders, the National Association of Wheat Growers (NAWG), the North American Millers’ Association and the American Bakers Association.

Key facts they are sharing with policy makers on Capitol Hill key include:

• Funding for USDA’s Agricultural Research Service (ARS) will be down 12 percent since the federal government’s 2010 fiscal year, assuming modest increases proposed in the Obama Administration’s FY2013 budget are adopted.
• In FY2011 alone, $180 million was cut and not restored due to the elimination of earmarked spending.
• A few weeks ago, university researchers learned that funding they receive from ARS would be cut by 30 percent to help cover costs associated with carrying out Congress’ instructions to close 12 labs.
• Despite demonstrated return on investment of up to $32 to $1, just 1.6 percent of the $142 billion annual federal investment in research goes to agriculture research, according to the American Association for the Advancement of Science (AAAS).

For wheat industry stakeholders who depend on public funding, this is a disturbing trend. While private companies are investing more money in wheat than ever before, public researchers undertake vital basic science, and more than three-quarters of wheat acres in the United States are planted with varieties produced through the public system. Public programs, particularly those that work in collaboration with land-grant universities, also focus on addressing local or regional problems.

“Farmers are steadily increasing their ability to produce more food with less resources, but we will rely on new research and technology to meet the needs of a growing population,” said Texas Wheat Producers Association Executive Assistant Kody Bessent, who participated in the fly-in. “Funding for wheat research is pivotal for the future of agriculture in Texas and the security of the domestic food supply.”

Fly-in participants are specifically asking Members to support the Obama Administration’s requests for $1.103 billion in funding for ARS and $325 million in funding for USDA’s premier competitive grant programs, the Agriculture and Food Research Initiative (AFRI).

As Congress prepares to finalize a 2012 Farm Bill, fly-in participants are also asking Members to ensure reauthorization of the AFRI grant program and the U.S. Wheat and Barley Scab Initiative (USWBSI), a collaboration of public, private and federal researchers fighting the disease Fusarium head blight, or scab.

“We’ve come to Washington, D.C., many times over the years, but this visit is particularly urgent,” said Dr. Brett Carver, a wheat breeder at Oklahoma State University and NWIC chair. “Research is a long-term process that needs long-term funding. We are seeing increased investments from private companies and farmers themselves, but federal agencies still play an irreplaceable role in ensuring we can develop the best possible varieties for farmers.”

Much more about wheat research needs and the wheat research community is at www.wheatworld.org/research.

**All dates subject to change

April 12 – Colorado County
April 19 – Bosque-Hamilton Counties
April 23 – Uvalde-Medina Counties
April 26 – Coleman County
April 26 – Hill County

April 27 – McLennan County
May 3 – Concho County
May 4 – Taylor County
May 7 – Grayson County
May 8 – Ellis County
May 9 – Lamar County
May 10 – Collin-Fannin Counties
May 11 – Cooke County
May 15 – Young County
May 15 – Haskell County
May 16 – Hardeman County
May 17 – AgriPro/Wilbarger County
May 18 – Carson County (near Groom)
May 21 – Hale County
May 21 – Deaf Smith County
May 22 – Ochiltree County (near Perryton)
May 23 – Sherman County
May 23 – Groom
May 24 – Bushland Research Center

The approved policy included a two-year moratorium on the enforcement policy and civil penalty for exceeding the district’s allowable groundwater production rate (APR) during 2012 and 2013.

In addition, the directors also approved a two-year moratorium on the enforcement policy and civil penalties for (1) failure to install meters on new wells and/or well systems by the Jan. 1, 2012 deadline and (2) reporting requirements for groundwater production.

“The amendments to the High Plains Water District rules that were adopted July 19, 2011 are still in effect.  They have not been changed or rescinded.  The Feb. 21 board action establishes a two-year moratorium (2012 and 2013) on enforcement and penalties in these specific areas only.  This will allow groundwater users additional time to familiarize themselves with the new rule requirements,” said District Manager Jim Conkwright.

In other business, the HPWD Board of Directors approved an 18-month study to determine a methodology to (1) delineate areas within the district where the Ogallala Aquifer is incapable of producing 1.25 acre-feet per acre per year and (2) evaluate effectiveness and reliability of using alternative methods (other than water meters) to measure groundwater production.

An agricultural stakeholder advisory group will assist district staff with the study.

More information about the Blueprint for Stronger Service can be found here: http://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=blueprint_for_stronger_service.html

Source: Texas Crop Progress and Condition Report – NASS

Chet and Dancey Creel of Seed-Tex

Jay Brent of DeBruce Grain

Seed-Tex is a full service wheat handling operation which specializes in buying, selling, and cleaning wheat in Newcastle, Texas. DeBruce Grain operates elevator facilities throughout the Texas Panhandle and offers services to producers through their grain, fertilizer, feed ingredient and agronomy units.

“It is easy to see that the people involved with DeBruce Grain and Seed-Tex are dedicated to their local customers,” TWPB Executive Vice President Rodney Mosier said. “These operations are quite different in their makeup but both are essential to the success of the wheat industry in their region.”

According to Mosier, the elevators were honored for their service to wheat producers and support of the statewide wheat checkoff program.

The Texas Wheat Producers Board is a statewide board funded by a voluntary two cent per bushel checkoff program. Checkoff funds are used for research, market development and education to further the wheat industry in Texas and support the profitability of wheat producers. For more information, visit http://www.texaswheat.org.