Recapping the 2018 Tri-State Grain Growers Convention

WThe official publicationHEAT of the Washington Association of Wheat Growers LIFE DECEMBER 2018 RECAPPING THE 2018 TRI-STATE GRAIN GROWERS CONVENTION

ALSO IN THIS ISSUE: An update on the battle against falling numbers

USW’s oldest, newest employee Address Service Requested Service Address Commissioner bids WGC adieu

Wheat quality lab turns 70 109 East First Avenue, Ritzville, WA 99169 WA Ritzville, Avenue, First East 109

Washington Association of Wheat Growers Wheat of Association Washington The history of Egypt, Wash. WHEAT LIFE President’s Perspective Volume 61 • Number 11 Exploring the other aspects of farming www.wheatlife.org By Jeffrey Shawver

The official publication of As I prepare to take over as president of the Washington WASHINGTON Association of Wheat Growers (WAWG), I wanted to intro- ASSOCIATION OF duce myself to those farmers whom I haven’t been fortu- WHEAT GROWERS nate enough yet to meet. 109 East First Avenue I live and farm in Connell, Wash., with my wife, Andrea, Ritzville, WA 99169-2394 (509) 659-0610 • (877) 740-2666 and our four children: Giselle, Aubriel, Noelle and Weston. Although I was raised on the west side of the state, my fam- WAWG MEMBERSHIP ily has farming ties on the east side—both of my parents are from here originally, (509) 659-0610 • (877) 740-2666 and my wife’s family, the Grassls, has deep roots in Franklin County. I became a $125 per year wheat farmer about 10 years ago when my father-in-law extended an invitation to EDITOR his four sons-in-law to teach them the farming ropes so he could retire some day. Trista Crossley • [email protected] After working as an hourly employee for my father-in-law for a few years, I began (435) 260-8888 leasing nearby land and building up my own operation. AD SALES MANAGER From the beginning, I enjoyed being a farmer and raising a crop, but I had this Kevin Gaffney • [email protected] feeling that I was missing something. I knew there had to be more to farming than (509) 235-2715 just plowing dirt, seeding and spraying; there had to be a backbone that supported GRAPHIC DESIGN the business and conservation side of farming, as well as all the politics surround- Devin Taylor • Trista Crossley ing agriculture. That’s how I got involved in WAWG. AD BILLING I began attending some of the monthly WAWG board meetings and got to know Michelle Hennings • [email protected] the people that were advocating for our profession. To gain some experience, I first (509) 659-0610 • (877) 740-2666 went through the chairs in the Franklin County wheat growers group and then CIRCULATION moved into the WAWG leadership chairs. I knew I had to get involved to under- Address changes, extra copies, subscriptions stand the political side of farming. In my mind, politics are almost as important in Chauna Carlson • [email protected] agriculture as taking care of the ground is. (509) 659-0610 • (877) 740-2666 Subscriptions are $50 per year One thing I’ve learned is if you aren’t involved, you just don’t know enough. WAWG EXECUTIVE DIRECTOR There are a lot of younger farmers who are taking over their family’s farm that Michelle Hennings don’t want to look beyond the operation. Instead, they rely on others to tell them WAWG EXECUTIVE COMMITTEE what’s going on instead of educating themselves. That might have worked in PRESIDENT the past, but today’s agriculture looks far different than what our grandparents Jeffrey Shawver • Connell and even parents faced, in politics, in technology and even in the farm programs VICE PRESIDENT available to us. For example, I used a Farm Service Agency program for beginning Ryan Poe • Hartline farmers that loaned me money to help me start leasing ground. You can’t take SECRETARY/TREASURER advantage of those types of programs if you don’t know about them. Howard McDonald • Coulee City As I write this, we are working on getting the new farm bill approved. Did PRESIDENT EMERITUS you know that the programs that underpin our export markets are in jeopardy Marci Green • Fairfield because until there is a farm bill, they have no funding? Did you know that APPOINTED MEMBERS Andy Juris • Bickleton Congress is talking about combining programs that help fund the purchase and Anthony Smith • Richland implementation of conservation equipment and practices? If some lawmakers get their way and include a mandatory base acre reassignment in the farm bill, do you Wheat Life (ISSN 0043-4701) is published by the know how that will affect your operation? Once again, if you aren’t involved, you Washington Association of Wheat Growers (WAWG): don’t know. And if you don’t know, you can only react. I want to see what’s com- 109 E. First Avenue • Ritzville, WA 99169-2394 ing down the pipe so I can work to change it or at least be better prepared when Eleven issues per year with a combined August/ September issue. Standard (A) postage paid at it hits. That’s why I’m involved in WAWG. If you feel the same way, jump in. Start Ritzville, Wash., and additional entry offices. by getting involved in your county growers group and think about attending the Contents of this publication may not be re- monthly board meetings. We’d love to see you there. printed without permission. Advertising in Wheat Life does not indicate en- Merry Christmas and a happy new year! dorsement of an organization, product or political candidate by WAWG. Cover photo: Thanks to the hard work of staff and leaders of the Washington, Oregon and Idaho grain organizations, this year’s convention was a success. See more convention photos on page 24. All photos are Shutterstock images or taken by Wheat Life staff unless otherwise noted.

2 WHEAT LIFE DECEMBER 2018 Contributors Craig Morris Alex McGregor Carlen Diana Commission Yates A. Scott Bailey Gary Jeffrey Shawver, 2018 Convention Oldest, newest Oldest, employee onhis perspective Washington Foundation Wheat WAWG President’s Perspective Battle againstBattle falling numbers continues The Evergreen state’s Egypt Delving intoDelving of the the WWQL history , chairman, Washington Commission, chairman, Grain The Columbia,The not the Nile, runs by it Seventy seasons service of , director, Western Wheat Quality Lab , director, Quality Western Wheat , lobbyist, Washington Association of Wheat Growers Wheat of Washington Association , lobbyist, WGC commissioner stepsboard off , communications director, , communications Washington Grain WGC Chairman’s Column , stakeholder, Pacific Northwest wheat industry Northwest , stakeholder, Pacific Photos, photos and more photos president, Washington Association of Wheat Growers Wheat of Washington Association president, Antique plows galore tractors, Trade, tariffs, farm bill Speakers, panels issues tackle A tale told in pictures Plowing Palouse the USW’s Mark Fowler Mark USW’s Membership Form The Bottom Line Bottom The Advertiser Index Progress report Progress Your Life Wheat WAWG at Work at WAWG Policy Matters Wheat Watch Wheat Happenings Adieu Inside This Issue This Inside 40 43 36 24 45 26 32 48 54 50 56 58 22 39 59 18 6 4 2 Larissa Zeiler Larissa Heidi Scott Economics, Washington State University T. Fortenbery Randall University David Bolingbroke , writer , , CPA, Leffel, Ottis & Warwick, & , CPA,Warwick, Ottis Leffel, P.S. , history Ph.D. candidate, Washington State, history , Ph.D., Thomas B. Mick Endowed Chair in Grain Chair inGrain Endowed Mick B. , Ph.D., Thomas WHEAT LIFE

DECEMBER 2018 3

WAWG MEMBERSHIP FORM Please check level of membership Thank you to our Student $75 Partnership $500 Grower $125 (up to 5 partners) Landlord $125 Convention $600 current members Family $200 (up to 2 members) Lifetime $2,500 We fight every day to ensure that life on the family farm continues to prosper and grow. Name WE NEED YOUR SUPPORT.

Farm or Business If you are not a member, please consider joining today. LEVELS OF MEMBERSHIP Address YOUR FARM.

City

State Zip Greensheet Newsletter Wheat Life Magazine National Wheat Grower Newsletter HarvestAnnual Prints Convention WAWG Registration Free One per Vote Member YOUR WAY. Producer/Landowners (Voting Membership) Phone Fax Grower or Landlord $125 X X X X Congratulations on a great 2018 season! Family $200 X X X X Email (2 family members) One small way we can say thank you for your continued business and support; Partnership $500 supporting the community that supports us. X X X X X County Affiliation (if none, write state) (1-5 family members) Convention $600 Wilbur-Ellis proudly sponsored and donated over $200,000 in 2018 X X X X X Circle all that apply: (2 individuals) to organizations in our wheat growing communities in the Inland Empire. Producer Landlord Individual Industry Rep. Business Owner Student Other Lifetime $2,500 X X X X X JUNIOR LIVESTOCK SHOW OF SPOKANE PULLMAN LIONS CLUB (1 individual) ADAMS COUNTY FAIR Return this form with your check to: AMERICAN CANCER SOCIETY LATAH COUNTY MARKET ANIMAL SALE QUINCY HIGH SCHOOL BOOSTER CLUB WAWG • 109 East First Ave. • Ritzville, WA 99169. Non-Voting Membership BOHNET MOTORCYCLE PARK VINTAGE WEEKEND LIBERTY FFA FOUNDATION ROCKFORD WA LIONS CLUB Or call 877-740-2666 and use your credit card to enroll by phone. Student $75 X X X BONINA COLT TO COW CONNECTION LIBERTY SCHOOL DISTRICT BOOSTERS SAGE POINT PTO COLFAX ROTARY CLUB LIND-RITZVILLE FBLA SPC JEREMIAH SCHMUNK MEMORIAL GOLF COLTON KNIGHTS OF COLUMBUS LIND-RITZVILLE FFA ALUMNI TOURNAMENT COLUMBIA BASIN FASTPITCH CLUB MILTON-FREEWATER LITTLE LEAGUE TEKOA FLOAT ASSOCIATION COLUMBIA BASIN JUNIOR LIVESTOCK MOSCOW BASEBALL ASSOCIATION - 15 U AL TROY LIONS CLUB COLUMBIA COUNTY FAIR 4-H & FFA MOSES LAKE BOOSTER CLUB WA TRAP SHOOTERS ASSOCIATION WAWG’s current top priorities are: DESALES HIGH SCHOOL MOSES LAKE CHRISTIAN ACADEMY WALLA WALLA 4-H AND FFA ✔ Helping shape the 2018 Farm Bill. ✔ Preserving the Snake River dams. EASTIN STREBIN MEMORIAL GOLF TOURNAMENT MOSES LAKE MEN’S SOFTBALL WALLA WALLA COUNTY CATTLEMEN’S EL KORAH SHRINE CIRCUS MOSES LAKE THUNDER 10U BASEBALL ASSOCIATION ✔ Preserving the farm safety net by ✔ Maintaining a safe and sound FAIRFIELD SERVICE CLUB NCWJLS 4H & FFA LIVESTOCK SALE WALLA WALLA HIGH SCHOOL FOUNDATION BRICKS NORTH FRANKLIN BABE RUTH WALLOWA COUNTY STOCK SALE protecting crop insurance. transportation system that includes rail, FRANKLIN CONSERVATION DISTRICT OAKESDALE HISTORICAL SOCIETY WARDEN DEVELOPMENT COUNCIL ✔ Fighting mandatory carbon emission river and roads. FREEMAN BOOSTER CLUB OAKESDALE SCHOOL DISTRICT WARDEN FOOTBALL BOOSTERS GARFIELD COUNTY MARKET SALE OTHELLO RODEO ASSOCIATION WARDEN HIGH SCHOOL GOLF regulations. GARFIELD/PALOUSE FFA & 4-H PACIFIC LITTLE LEAGUE WARDEN MUSIC BOOSTERS GASB CATHOLIC SCHOOLS PACIFIC NW FARM FORUM WASHINGTON ASSOCIATION OF WHEAT GROWERS As Washington state continues to look for more revenue to fund GENESEE CIVIC ASSOCIATION INC PALOUSE CONSERVATION DISTRICT WASHINGTON FFA FOUNDATION GENESEE COMMUNITY FIREMEN INC PALOUSE EMPIRE JUNIOR MARKET SHOW WASHINGTON STATE UNIVERSITY education, farmers’ tax exemptions and programs are coming under fire. GRANT COUNTY 4-H & FFA PALOUSE EMPIRE RODEO ASSOCIATION WESTERN PULSE GROWERS ASSOCIATION HERMISTON LIONS CLUB PAWS SCHOLARSHIP FOUNDATION WHEAT LAND COMMUNITY FAIR If these are important to your operation, join today and help us fight. IDAHO ASSOCIATION OF SOIL CONSERVATION PINK RIBBON CLASSIC WHITMAN COUNTY FIRE DISTRICT 14 IDAHO FFA FOUNDATION POMEROY FFA ALUMNI WHITMAN COUNTY LIBRARY IDAHO MINT GROWERS ASSOCIATION POTLATCH 4-H/FFA BOOSTERS WSU DRYLAND RESEARCH STATION IDAHO-EASTERN OREGON SEED ASSOCIATION POTLATCH YOUTH BASEBALL YMCA OF THE PALOUSE More member benefits: Washington Association • Greensheet ALERTS • WAWG updates of Wheat Growers • Voice to WAWG through opinion surveys 109 East First Ave. • Ritzville, WA 99169 ag.wilburellis.com • National Wheat Grower updates 509-659-0610 • 877-740-2666 • 509-659-4302 (fax) www.wawg.org • State and national legislative updates Wilbur-Ellis leverages our legacy of integrity and trust to offer you the best solutions that fit your operation. Call 877-740-2666 or visit www.wawg.org For information only. Not a label. Prior to use, always read and follow the product label directions. WILBUR-ELLIS logo and Ideas to Grow With are registered trademark of Wilbur-Ellis Company LLC. K-17588 YOUR FARM. YOUR WAY. Congratulations on a great 2018 season! One small way we can say thank you for your continued business and support; supporting the community that supports us. Wilbur-Ellis proudly sponsored and donated over $200,000 in 2018 to organizations in our wheat growing communities in the Inland Empire.

ADAMS COUNTY FAIR JUNIOR LIVESTOCK SHOW OF SPOKANE PULLMAN LIONS CLUB AMERICAN CANCER SOCIETY LATAH COUNTY MARKET ANIMAL SALE QUINCY HIGH SCHOOL BOOSTER CLUB BOHNET MOTORCYCLE PARK VINTAGE WEEKEND LIBERTY FFA FOUNDATION ROCKFORD WA LIONS CLUB BONINA COLT TO COW CONNECTION LIBERTY SCHOOL DISTRICT BOOSTERS SAGE POINT PTO COLFAX ROTARY CLUB LIND-RITZVILLE FBLA SPC JEREMIAH SCHMUNK MEMORIAL GOLF COLTON KNIGHTS OF COLUMBUS LIND-RITZVILLE FFA ALUMNI TOURNAMENT COLUMBIA BASIN FASTPITCH CLUB MILTON-FREEWATER LITTLE LEAGUE TEKOA FLOAT ASSOCIATION COLUMBIA BASIN JUNIOR LIVESTOCK MOSCOW BASEBALL ASSOCIATION - 15 U AL TROY LIONS CLUB COLUMBIA COUNTY FAIR 4-H & FFA MOSES LAKE BOOSTER CLUB WA TRAP SHOOTERS ASSOCIATION DESALES HIGH SCHOOL MOSES LAKE CHRISTIAN ACADEMY WALLA WALLA 4-H AND FFA EASTIN STREBIN MEMORIAL GOLF TOURNAMENT MOSES LAKE MEN’S SOFTBALL WALLA WALLA COUNTY CATTLEMEN’S EL KORAH SHRINE CIRCUS MOSES LAKE THUNDER 10U BASEBALL ASSOCIATION FAIRFIELD SERVICE CLUB NCWJLS 4H & FFA LIVESTOCK SALE WALLA WALLA HIGH SCHOOL FOUNDATION BRICKS NORTH FRANKLIN BABE RUTH WALLOWA COUNTY STOCK SALE FRANKLIN CONSERVATION DISTRICT OAKESDALE HISTORICAL SOCIETY WARDEN DEVELOPMENT COUNCIL FREEMAN BOOSTER CLUB OAKESDALE SCHOOL DISTRICT WARDEN FOOTBALL BOOSTERS GARFIELD COUNTY MARKET SALE OTHELLO RODEO ASSOCIATION WARDEN HIGH SCHOOL GOLF GARFIELD/PALOUSE FFA & 4-H PACIFIC LITTLE LEAGUE WARDEN MUSIC BOOSTERS GASB CATHOLIC SCHOOLS PACIFIC NW FARM FORUM WASHINGTON ASSOCIATION OF WHEAT GROWERS GENESEE CIVIC ASSOCIATION INC PALOUSE CONSERVATION DISTRICT WASHINGTON FFA FOUNDATION GENESEE COMMUNITY FIREMEN INC PALOUSE EMPIRE JUNIOR MARKET SHOW WASHINGTON STATE UNIVERSITY GRANT COUNTY 4-H & FFA PALOUSE EMPIRE RODEO ASSOCIATION WESTERN PULSE GROWERS ASSOCIATION HERMISTON LIONS CLUB PAWS SCHOLARSHIP FOUNDATION WHEAT LAND COMMUNITY FAIR IDAHO ASSOCIATION OF SOIL CONSERVATION PINK RIBBON CLASSIC WHITMAN COUNTY FIRE DISTRICT 14 IDAHO FFA FOUNDATION POMEROY FFA ALUMNI WHITMAN COUNTY LIBRARY IDAHO MINT GROWERS ASSOCIATION POTLATCH 4-H/FFA BOOSTERS WSU DRYLAND RESEARCH STATION IDAHO-EASTERN OREGON SEED ASSOCIATION POTLATCH YOUTH BASEBALL YMCA OF THE PALOUSE

ag.wilburellis.com

Wilbur-Ellis leverages our legacy of integrity and trust to offer you the best solutions that fit your operation.

For information only. Not a label. Prior to use, always read and follow the product label directions. WILBUR-ELLIS logo and Ideas to Grow With are registered trademark of Wilbur-Ellis Company LLC. K-17588 WAWG at WORK ADVOCATING FOR THE WHEAT FARMERS OF EASTERN WASHINGTON 2018 convention wraps up another successful year Nearly everything came up smelling like roses at last month’s 2018 Tri-State Grain Growers Convention in Portland, Ore., where approximately 300 growers, stakeholders and industry representatives gathered to hear the latest updates on issues and socialize. “This year’s convention was a great success,” said Michelle Hennings, executive director of the Washington Association of Wheat Growers (WAWG). “Our speakers really focused on the current trade situation, and what it means for wheat farmers. Leaders from our national organizations made the trip out west to give us the latest farm bill news, In one of his first acts as the new 2018/19 Washington Association of Wheat Growers (WAWG) and we had a large group of young president, Jeffrey Shawver (left) awards Douglas County grower Ben Adams WAWG Member of the farmers who took advantage of a free Year at the 2018 Tri-State Grain Growers Convention. convention registration by participating in our 15x40 program. I want to single The location of this year’s convention offered some out staff from all three state wheat groups who put in a lot unique opportunities for convention attendees: A tour of of time and effort to plan the convention and make sure it the Wheat Marketing Center in downtown Portland and went smoothly.” a Vancouver Export Terminal tour. The tours filled up quickly, and participants had a fun, educational experience. Another highlight of the convention was the keynote presentation by former U.S. Army Ranger, Keni Thomas. Thomas used his experience in a fire fight in Somalia (later recounted in the book and movie, “Blackhawk Down”) to talk about how and why people can step up to become leaders and define success. One of WAWG’s primary tasks at the convention is to review and revise the organization’s resolutions, which help direct leaders and staff. See a list of the new and changed resolutions on page 14. The full resolutions are available on WAWG’s website at wawg.org/about-us/. During the all-committee meeting, WAWG members heard farm bill updates from the National Association of Wheat Growers, as well as updates from the Risk Management Agency, the Farm Service Agency, the National Agricultural Statistics Service and the Natural Resources Conservation Service. Two new ambassadors were awarded scholarships: Outgoing Washington Association of Wheat Growers (WAWG) president, Lacey Miller of Ritzville and Evan Henning of Thornton. Marci Green, named Benton County as the WAWG County of the year at Read more about them on page 12. the 2018 Tri-State Grain Growers Convention. The award was accepted by county vice president, Anthony Smith. A plethora of awards was handed out during the annual

6 WHEAT LIFE DECEMBER 2018 WAWG AT WORK WL state banquet. Amid much clap- Washington would like to thank all the members and industry supporters who ping and hollering, Benton County attended this year’s convention. Feedback is always welcome, and planning is was named the county of the year. already underway for next year’s convention, which will be held in Spokane, Anthony Smith accepted the award Wash. See more pictures from the 2018 Tri-State Grain Growers Convention on on behalf of his county. WAWG pages 24-25. member of the year was given to Ben Adams, a former WAWG president (2016/17) and a farmer from Douglas Counties meet prior to convention County. In one of her last acts as president, Marci Green exchanged to discuss concerns, take care of business ties with Rich Koenig, interim By November, fall fieldwork is typically over, but that doesn’t mean that chair of the Department of Crop Washington Association of Wheat Growers (WAWG) members have a lot of and Soil Sciences at Washington time to relax. In the weeks leading up to the annual grain growers convention, State University (WSU), an annual many counties hold meetings to discuss county business, elect new leaders and tradition that symbolizes the “ties” review resolutions prior to the WAWG resolution meeting, which is held dur- between WSU and the industry. ing the convention. Michelle Hennings, WAWG executive director, and Diana As Green’s year as WAWG presi- Carlen, WAWG lobbyist, attended nearly all of this year’s county meetings to dent came to a close, she took a update members on state and federal legislation and to hear county concerns. moment to thank family, friends “The Washington Association of Wheat Growers is a member-directed orga- and WAWG staff, saying “it takes nization, so it is important that the growers meet regularly to discuss county many teams” to make the organiza- issues and then take those county issues to the state board,” Hennings said. tion run smoothly. Franklin County “These meetings also allow the state leadership to update growers on what grower Jeffrey Shawver takes over we’ve been working on, both in Olympia and Washington, D.C. We want them as WAWG president, while Grant to see their dollars at work and know that WAWG is fighting very hard for County grower Ryan Poe steps into them.” the vice president’s role. Howard McDonald, a grower from Douglas In her presentations, Hennings covered several critical national issues, includ- County, will become the new ing the 2018 Farm Bill, issues with incomplete National Agricultural Statistics secretary/treasurer. Service (NASS) data and a mandatory reassignment of base acres that some lawmakers are pushing for. Judy Von Borstel of Grass Valley, Ore., took first place in the photo 2018 Farm Bill. Most of the delays in the farm bill negotiations are centered contest, and a number of draw- on work requirements for the SNAP program and issues in the energy title. ings were held throughout the The conservation title also has been problematic as the House and Senate ver- convention: • Pat Morrill won the early bird registration drawing; • Bruce Carter won the overall survey drawing; • Katie Gillespie won the exhibitor bingo drawing; • Gary Bailey, Mike Wilkens and Bob Zemetra won the education break-out survey drawings; and • Bridget Blom, Lonnie Green, Jim Moyer, Charlene Flanigan, David DeGon, Larry Wilcox, Gene Classen, John Schlomer and Donald Walker were the LAF drawing winners. Diana Carlen (left), lobbyist for the Washington Association of Grain Growers (WAWG), traveled to most of this year’s fall county meetings to update growers on state legislative issues. Here she is speaking to The staffs of Oregon, Idaho and the Adams County wheat growers.

WHEAT LIFE DECEMBER 2018 7 WL WAWG AT WORK

Coverage (PLC) program payments reduced or cut off entirely because the data those programs are based on is incomplete or missing. Under direction from the U.S. Department of Agriculture (USDA), the Farm Service Agency (FSA), which is tasked with overseeing these programs, must use data collected by NASS surveys to calculate payments. Because the data is submitted voluntarily by growers and the process of filling out the surveys can be time consuming and redundant, not all growers submit all their data accurately. If NASS doesn’t receive at least 30 surveys or enough returned surveys to cover at least 25 percent of a county, the agency combines results. This can lead to situations such as happened in Spokane County last year when not enough spring wheat yield surveys were returned. NASS used the winter wheat yield instead. Members of the Washington Grain Commission (WGC) also attend the Because winter wheat yields were considerably higher county meetings to talk about the commission’s marketing and research than spring wheat, growers in Spokane County didn’t efforts. Here Glen Squires (left), CEO of the WGC, talks to Lincoln County receive an ARC payment on spring wheat. growers while county president Kevin Klein looks on. A similar issue has occurred recently in Benton County. sions differ on the issue of combining the Conservation Because NASS doesn’t split out irrigated wheat from Stewardship Program and the Environmental Quality dryland wheat yields, an all-wheat yield was used, which Incentives Program. Hennings said that WAWG and the came out to 82 bushels per acre in 2017. That year, the National Association of Wheat Growers (NAWG) have average dryland wheat yield was 30 bushels per acre. No been pressing members of Congress to pass a farm bill as payments were issued. soon as possible in order to provide growers with certain- WAWG is asking lawmakers to include a provision in ty. A major concern of both WAWG and NAWG is if the the 2018 Farm Bill that allows FSA the flexibility to use the farm bill isn’t passed before the new Congress is seated best data available to calculate payments, including data in January, the entire farm bill process will be set back to collected by the Risk Management Agency (RMA). square one. Base acres reassignment. The House version of the 2018 Issues with NASS data. In recent years, growers in Farm Bill includes a provision that would make all base some counties have seen their conservation payments acres that weren’t planted to a covered crop between 2009- and/or Agriculture Risk Coverage (ARC) or Price Loss 17 ineligible for commodity programs. WAWG and NAWG

HighLine Grain’s Ryan Higginbotham (left) gave a presentation to Franklin County growers on the advantages of fall-planted peas.

8 WHEAT LIFE DECEMBER 2018 feel this would unfairly hurt farmers who have base acres currently en- rolled in conservation programs and could dramatically lower national wheat acre totals. WAWG supports a voluntary reassignment of base acres, not a mandatory one. Dreaming Up the Ideal Moving to state legislative up- Retirement Is Your Job. dates, Carlen talked about how the Helping You Get results of the 2018 midterm elec- There Is Ours. tions could impact the upcoming 2019 Washington State Legislative Session. She said both chambers will remain under Democratic control, even though some very close races were headed to a mandatory recount It’s simple, really. How well you retire depends on how at publication time. See a complete well you plan today. Whether retirement is down the election update on page 20. road or just around the corner, if you’re working toward More than 50 percent of your goals now, you’ll have a better chance of achieving Washington voters rejected I-1631, them later. the carbon-fee initiative that would have taxed fossil-fuel emissions. Preparing for retirement means taking a long-term WAWG was opposed to the initia- perspective. At Edward Jones, we spend time getting tive, fearing it would raise fuel and to know your retirement goals so we can help you fertilizer costs for growers. reach them. The 2019 Legislative Session is a budget session and is scheduled for 105 days. Carlen said the budget situation is still pretty bleak as law- To learn more about why Edward Jones makes sense makers will have to address fund- for you, call or visit today. ing for mental health issues, teacher contracts and a recent court decision that requires the state to modify state-owned culverts in order to help migrating salmon. Once again, the

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WHEAT LIFE DECEMBER 2018 9 WL WAWG AT WORK

In Benton County, Michelle Hennings (top middle) talked to growers about issues the industry is having with incomplete or missing National Agricultural Statistics Service data, which is used to help calculate Farm Service Agency program payments.

agricultural industry will be watching for any efforts to modity program payments are going out. She also told close state agricultural exemptions as lawmakers work on growers that if they haven’t signed up for the Market budgets. Facilitation Program, they need to do so by Jan. 15, 2019. “Heading into this session, we will be on defense,” When growers come into the county FSA office to sign up, Carlen said, adding that with so many new members of she recommended they bring all of their yield informa- the legislature this year, WAWG will have lots of education with them. Finally, the growers discussed ideas on tion to do. donating county funds, including donating to the annual Washington State University Wilke Farm Field Day and In other state legislative news, WAWG is watching for WAWG’s legislative action fund raffle. Kevin Klein will two final reports to be issued: one is on pesticide appli- remain as county president and Tim Kintschi as secretary/ cation safety and reporting requirements and the other treasurer. is from Gov. Inslee’s Southern Resident Killer Whale ADAMS COUNTY Recovery and Task Force, which could include recommen- In , growers heard an update dations for breaching the lower Snake River dams. Both on the new tax law from representatives of Leffel, Ottis groups have been working on topics that could directly & Warwick. Growers also voted to help one of the new impact Eastern Washington growers. 2018/19 Washington Wheat Ambassadors, Lacey Miller of Ritzville, with her convention travel expenses. In other Representatives of the Washington Grain Commission county business, Jake Klein will remain as county presi- also attended many of the meetings where they spoke dent, with Ron Jirava as vice president and Derek Schafer about the current trade situation, including the United as secretary/treasurer. States-Mexico-Canada Agreement (the new NAFTA), In BENTON COUNTY, most of the meeting centered Chinese tariffs and a potential bilateral trade agreement on the issues the county is having with FSA program pay- with Japan; the current market situation for club wheat; ments because of incomplete or missing NASS data. Gerry and continuing research into falling numbers. Richter, farm programs specialist from the state FSA office, Each county also addressed county-specific issues and explained how NASS gets its numbers and how FSA uses conducted county-specific business. those numbers to calculate payments. WAWG National In LINCOLN COUNTY, growers heard from Elsa Legislation Chair and NAWG Secretary Nicole Berg, who Bowen, manager of the Lincoln County Conservation is also a Benton County farmer, told growers that NAWG District, on getting involved in the local Voluntary is checking with other states to see if they have some of Stewardship Program plan, which has been finalized and the same problems with their NASS data, since the more adopted by the county. Sara Cossio, FSA county execu- states that have issues, the more likely it is that lawmak- tive director, told growers that conservation and com- ers will allow FSA to use data from other agencies, such

10 WHEAT LIFE DECEMBER 2018 as RMA. Victoria Barth, FSA county executive director, talked about the Market Facilitation Program and urged producers to make an ap- pointment with the county office to sign up. % In county business, Chad Smith SAVESAVE UPUP TOTO 9090% will remain as county president, ONON CHEMICALSCHEMICAL Anthony Smith as vice president and • Self Calibrating 50 Times Per Second Dave Moore as secretary/treasurer. • Adjusts Spray Timing with Speed In FRANKLIN COUNTY, • One Button Startup growers began the meeting hear- • Blanket or Spot Spray with One System ing from HighLine Grain’s Ryan • Installs on SP’s, Pull Type and Wheeled Sprayers Higginbotham about the benefits vantage-pnw.com of fall-planted peas as a crop rota- tion for wheat. Higginbotham said Robb Soliday (509) 988-7018 Jason Emerson (509) 681-0466 that in trials, they’ve seen a 10 to 15 percent yield bump in the wheat crop following peas. Another benefit is that the peas fix nitrogen, offering some fertilizer savings. “You aren’t going to get rich growing peas, but you can reduce your fertilizer costs for the wheat that follows,” he said. Kevin Cochrane, an employee of Corteva (a unit of DowDuPont), talked about herbicide and rust con- SEE US TODAY! trol, while Jamie Barker of TerrAvion OFFER ENDS 12/31/2018 gave a presentation on digital imag- ery using planes vs. drones. SEE US TODAY! As the first year under a new tax ADAPT TO EVERYTHING. SEE US TODAY! OFFERSEEOFFER ENDS USENDS 12/31/2018 TODAY! 12/31/2018 plan comes to a close, farmers and OFFER ENDS 12/31/2018 their accountants are busy trying to CONFORM TO NOTHING. Reap big savings with a used Case IH Axial-Flow® combine. They’re priced right and, for a limited adjust their finances. Cade Weber time, the deal is sweetened with great financing. With 40 years in the field, Case IH Axial-Flow ADAPTcombinesADAPT set the TO standard TO EVERYTHING. EVERYTHING.for reliability, throughput capacity and harvesting productivity. Ask about ADAPTother CONFORMattractive financingTO EVERYTHING. and lease TO options. NOTHING. CONFORM TO NOTHING.® Reap big savings with a used Case IH Axial-Flow combine. They’re priced right and, for a limited CONFORMReap time,big savings the deal with is sweetened a used Case with TO greatIH Axial-Flow financing. NOTHING.® combine.With 40 years They’re in the pricedfield, Caseright IHand, Axial-Flow for a limited Reaptime, combinesthebig savingsdeal isset sweetened withthe standard a used with forCase reliability,great IH Axial-Flowfinancing. throughput® combine.With capacity 40 years andThey’re harvesting in the priced field, productivity. right Case and, IH Askfor Axial-Flow aabout limited time,combines otherthe deal setattractive theis sweetened standard financing for with and reliability, leasegreat options.financing.FINANCING throughput With capacity 40 UNTILyears and in harvesting the 9/1/19 field, productivity. Case IH Axial-Flow Ask about combinesother attractive set the financing standard andfor reliability,lease options. throughput capacity and harvesting productivity. Ask about other attractive financing and lease options.FOLLOWED BY CQR ON USED AXIAL-FLOW COMBINES 0% FINANCING UNTIL 9/1/19 FINANCINGFOLLOWED1201 BY UNTILE. CQRYONEZAWA ON9/1/19 USED BLVD. FINANCINGAXIAL-FLOWMOSES UNTILCOMBINES LAKE, WA9/1/19 98837 0% FOLLOWED509-765-1257 BY CQR ON USED FOLLOWED BY CQR ON USED AXIAL-FLOW1201 E. COMBINESYONEZAWA BLVD. 0% MOSES LAKE, WA 98837 AXIAL-FLOW COMBINES 0% 509-765-1257 1201 E. YONEZAWA BLVD. 1201MOSES E. LAKE,YONEZAWA WA 98837 BLVD. MOSES509-765-1257 LAKE, WA 98837 509-765-1257

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and Jared King from Leffel, Ottis & Warwick talked about ogy, and then return some of the changes in the new tax code, especially the to his family’s farm. changes in the corporate rates. Instead of a range of rates He first learned about from 15 percent to more than 30 percent, under the new the wheat ambassador tax code, there is only one rate—21 percent. For farmers program from his ag who fell into the 15 percent corporate tax bracket, that teacher at Oakesdale could mean a substantial tax increase. High School. Conservation practices and funding were topics Tracy “I love working on Hangar, the Natural Resources Conservation Service’s the farm. It’s a passion state agronomist, presented on. She also talked about a of mine. It’s some- tool that NRCS has partnered with that allows growers thing I really enjoy, to estimate their farms’ carbon footprint. That tool can be going out there. I rod- found at comet-planner.com. weed all the time. I Finally, Dana Herron introduced a resolution to estab- work a full harvest where I drive truck and bank-out. I just lish a permanent club wheat breeder position associated love it. It’s a lifestyle,” he said. with Washington State University or the U.S. Department Besides his work on the farm, Henning is very active in of Agriculture’s Agricultural Research Service. That reso- school and community activities, including playing three lution passed unanimously and will be sent to the state varsity sports, FFA, honor society, drama club and band. board for consideration. He also has a passion for metal art and may incorporate There will be a few new officers in Franklin County that into his college plans. for the coming year. Leonard Van Buren will take over as Henning said he is looking forward to his Olympia trip president, while Nolan Hollebeke becomes vice president. because he’ll be able to talk to legislators about something Bill Harder Jr. will remain in the secretary/treasurer posi- he loves and is passionate about, especially if those legislation. tors are unfamiliar with agriculture. “I’ll get to give my knowledge to them about how important agriculture is, and what we do. I’ll be able to tell Miller, Henning named them what I enjoy about it, what there is to love about it, what it does. It’s going to be fun to interact with them and 2018/19 wheat ambassadors explain all about farming,” he said. “This experience will Washington wheat growers have chosen two new high stick with me for the rest of my life. I’ll have been a wheat school seniors to represent the industry as the 2018/19 ambassador.” Washington Wheat Ambassadors: Lacey Miller of Ritzville Lacey Miller and Evan Henning of Thornton. Both ambassadors submitted a written application and video, as well as made a For the past few final presentation at last month’s convention. Miller will years, Miller has been receive a $2,000 scholarship, while Henning will receive waiting for her shot a $2,500 scholarship. The ambassadors will represent as an ambassador. Washington wheat farmers at various civic and commu- She knew about the nity events throughout the coming year and will partici- program thanks to her pate in an advocacy trip to Olympia with Washington attendance at previ- Association of Wheat Growers (WAWG) leaders. ous conventions and went to school with a Lacey is the daughter of Marchelle and Mike Miller, and Ritzville-raised former Evan is the son of Steven and Heidi Henning. wheat ambassador. Evan Henning “I’m looking to learn Henning is counting on the wheat ambassador program about the different sides of agriculture. We get to travel helping him to develop skills he wouldn’t necessarily get to Olympia, so that’s going to be exciting. I know some of to practice while working on his family’s multigeneration it because of my dad (Washington Grain Commissioner farm, such as public speaking and advocating for agricul- Mike Miller), but I’m excited to have my own experience ture. After high school, he is planning to continue his edu- with it. I want to see the business side of agriculture, and cation in an ag-related field, such as agricultural technol- how it all connects or could better connect,” Miller said.

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From a very young age, Miller has been involved in active in FFA, honor society, community volunteer proj- various aspects of her family’s multigenerational farm. ects and is a running-start student at Eastern Washington She helps with harvest and runs the strip trials and test University. After high school, Miller plans to earn a degree plots on her family’s land. Besides her farmwork, Miller is in marketing and agricultural communications. She is also active in numerous school and community activities, hoping to get a head start on that degree when she heads not to mention competing in three varsity sports. She is over to Olympia with WAWG in January. With a new crop Members pass 2019 resolutions at annual convention During the annual meeting at the 2018 Tri-State Grain State Supreme Court Foster decision. Growers Convention, the Washington Association RESEARCH COMMITTEE of Wheat Growers’ (WAWG) membership reviewed, • WAWG strongly encourages the prioritization of wheat updated and approved the 2019 resolutions that direct and barley research, including discussions with all policy for the next 12 months. The updated resolutions interested parties, in the following areas (added): are listed here. For a full listing, visit wawg.org. 10. Herbicide resistance in weeds. NATIONAL LEGISLATION COMMITTEE • WAWG supports Washington State Soil Health initia- • WAWG supports giving FSA authority to use the most tive which provides funding to Washington State accurate available data whether it is from NASS or University, the Washington State Department of RMA. Agriculture, and the Washington State Conservation Commission to conduct research, pilot projects and MARKETING COMMITTEE incentivize adoption as practices that improve soil TRADE health and improve agricultural productivity. • WAWG supports bilateral and multilateral trade agree- RESEARCH FUNDING ments that are favorable to the U.S. wheat industry as • WAWG supports the Washington Grain Commission, a top priority for USTR. (US Trade Representative) WSU and USDA ARS to secure sustainable and perpet- • WAWG encourages the Administration and USTR’s of- ual funding sources for club wheat research. fice to fully comply and enforce WTO rules and regula- STATE LEGISLATION COMMITTEE tions, utilizing the trade dispute settlement system as the best way to eliminate foreign trade barriers. STATE AGENCIES NATURAL RESOURCES COMMITTEE Department of Agriculture CONSERVATION PROGRAMS • WAWG positions on Washington State Department of Agriculture (WSDA) issues are: • WAWG recognizes NRCS, Washington State Conservation Commission and local conservation dis- 1. Supports continued WSDA administration of the tricts as the authorities in conservation technical guid- regulation of agricultural chemical use versus ance throughout the state, and urges state and federal Department of Ecology or Department of Health. regulators to also recognize them as the authorities 5. Supports funding for pesticide applicator and support funding them accordingly. training program which educates handlers and •WAWG supports ensuring that organic producers are applicators on how to use pesticides safely and held to the same standards as those set for conven- effectively. tional production. • WAWG supports the funding of Washington State CONSERVATION RESERVE PROGRAM (CRP) trade promotion for expanding grain markets. • WAWG supports the allocation of higher bid points Department of Natural Resources (DNR) to CRP for farmland that is located in 12 inch or below • WAWG opposes DNR utilizing a highest and best use precipitation zones to address air or water quality clause allowing early termination of agricultural leases concerns. without DNR paying penalties to the lessee for the • WAWG supports revising the CRP-TIP program to remaining term of the lease. remove the limitations on payments to the retiring farmer or operator if the “covered farmer” (TIP applica- 2019 WAWG Resolutions passed at the 2018 Washington tion) is a family member as defined in section 1001 of Association of Wheat Growers Annual Meeting at the Tri- the Food Security act of 1985. State Grain Growers Convention on Nov. 15, 2018. WATER • WAWG supports a legislative fix to the Washington

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of legislators, many of whom have very little agricultural knowledge, she’s looking forward to educating them, especially from a younger person’s point of view. How are we doing? “We are the future (in agriculture). I want to explain how it per- Like something you read in Wheat Life? tains to us, and what we can do to get our generation jump-started. Disagree with something you read in Agriculture feeds the world, and you can’t do without it,” she ex- Wheat Life? Let us know by emailing your plained. “But agriculture is changing every day, and it’s innovating comments and suggestions to editor@ every day. There’s new technologies, drones, all this new stuff now. It’s wawg.org or mail them to 109 East First going to help farms sustain a growing population with less land. (We Avenue, Ritzville, Wash., 99169-2394. Please need to) help farmers so they don’t have to close down farms or sell keep submissions less than 350 words. out to bigger farms. Family farms can still be a thing with a growing Submissions may be edited for length. population.” Thank you to our 2018 convention sponsors and exhibitors Without the support of industry Albaugh LLC Farm Equipment Headquarters sponsors and exhibitors, our annual Big Bend Electric Cooperative Farmers Business Network convention would not be successful. Central Life Sciences Harvest Capital Company PLATINUM SPONSORS CHS Primeland Intellifarms CHS Sunbasin Growers Kralman Steel Structures Corteva Agriscience CoBank Limagrain Cereal Seeds Idaho Grain Producers Association Columbia Bank Miller Chemical & Fertilizer LLC Northwest Farm Credit Services Great Western Malting Morrow County Grain Growers Oregon Wheat Growers League Helena Chemical Co. Nachurs PNW Farmers Cooperative Itafos NAU Country The McGregor Company Leffel, Otis & Warwick, P.S. Northwest Farm Credit Services Washington Grain Commission Mid-Columbia Insurance Inc. Oregon Tilth Wilbur-Ellis Company Morrow County Grain Growers OSU Wheat GOLD SPONSORS Mountain States Insurance Pacific Ag Solutions Anheuser-Busch Northwest Grain Growers Pacific Northwest Direct Seed Bayer Crop Science Papé Machinery Association BNSF Railway Patton & Associates R&H Machine Inc. HighLine Grain Growers Pomeroy Grain Growers Inc. Scafco Grain Systems MillerCoors Rural Community Insurance Service SS Equipment Inc. Total Scale Services Inc. SILVER SPONSORS SAIF USDA-NASS CliftonLarsonAllen LLP Simplot USDA-Risk Management Agency CoAXium Wheat Production System Washington State Crop Improvement Association Washington Policy Center HUB International Web Steel Buildings Northwest LLC Les Schwab Tire Centers VENDORS West Coast Seed Mill Supply Mid Columbia Producers Inc. Adams Grain Bins Company Nachurs AgraSyst Western Trailer Sales Co. NAU Country Agri-Tool Wheat Marketing Center Inc. Ritzville Warehouse Co. AgSource Laboratories WSR Insurance Services Syngenta Almaco Two Rivers Terminal Brandt Agricultural Products United Grain Corporation Central Life Sciences Class 8 Trucks INDUSTRY SUPPORTERS CliftonLarsonAllen LLP AGPRO Marketing & Manufacturing Inc. Corteva Agriscience

16 WHEAT LIFE DECEMBER 2018 Receiving your ALERT? With their annual membership, Washington Association of Wheat Growers members can receive industry updates through the weekly digital Greensheet ALERT via email. If you are not receiving this ALERT, either we don’t have your current email address, or our ALERT is going into your spam folder. Call our office at (509) 659-0610 to make sure we have your current email address.

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WHEAT LIFE DECEMBER 2018 17 POLICY MATTERS Paid family, medical leave is coming to Washington state By Diana Carlen ployee must give their employer 30-days notice WAWG Lobbyist before taking leave. In 2017, the Washington Legislature passed a bipartisan • Employers also have quarterly reporting require- bill creating a new Paid Family & Medical Leave Program. ments. Employers will need to track employee wages, Agencies are continuing to work on rules to implement hours and other employee information and report to the new law, but parts of the law come into effect on Jan. the Employment Security Department each quarter 1, 2019. The law creates a statewide insurance program starting in Quarter 1 of 2019 (January 1 to March 31). that lets employees get partial wage replacement while on The Quarter 1 reports are due April 30, 2019. leave. Eligible employees can to take up to 12 weeks (or • Employers with 50 or more employees are required to 18 weeks in certain cases) of paid leave for a “qualifying restore returning employees to their previous posi- event,” including: recovering from illness or injury, bond- tion or to a position with equivalent pay, benefits and ing with a new child, taking care of sick or injured fam- employment conditions. ily members or certain military-connected events. Most employers and employees, including those in agriculture, • PFMLP does not apply to federal and tribal employees, are required to participate in the program. self-employed people (including independent con- tractors) and workers that typically work out of state. Here are a few things you should know about the Paid Self-employed people and tribes can choose to opt into Family & Medical Leave Program (PFMLP): the state program. • Starting Jan. 1, 2019, employers are required to with- • Workers under collective bargaining agreements may hold premiums (0.4 percent of gross wages) and remit have delayed participation in PFMLP. them to PFMLP, regardless of the number of hours an employee worked. As an example for premiums, if a qualifying employee is paid $10,000 a year, the total annual premium for the -Both employers and employees contribute to the program would be $40 ($10,000 x 0.4 percent). Of that, total cost of the premium, with employees con- $25.20 would come from withheld employee wages (63 tributing up to 63 percent of the total premium, percent employee contribution), and $14.80 would come and employers contributing the remaining 37 from the employer (37 percent employer contribution). A percent. small employer would only need to withhold and remit -Small employers (those with less than 50 employ- the employee portion of the premium. ees) are not required to pay the employer portion Employers can apply for a premium waiver in certain of the premium, but still must withhold and cases, generally when the employee usually works out of remit the employee portion. state. A premium waiver may be granted when the em- -There is a small business assistance grant pro- ployee usually does their work out of state, they only work gram to help cover the cost of hiring temporary in Washington on a temporary schedule and they are not replacement employees, up to $3,000 renewable expected to work in state for 820 hours or more. up to 10 times per year per employer. However, Employers that want to manage their own paid fam- small employers must pay the employer contribu- ily and medical leave plan can apply to the Employment tion to qualify. Security Department to have a voluntary plan approved, • Employees cannot collect benefits until Jan. 1, 2020. though employers will still need to comply with quarterly To qualify, an employee must work at least 820 hours reporting requirements. Voluntary plans must meet or in the qualifying period (the first four of the last five exceed the benefits offered under the state plan. completed calendar quarters or the last four completed Washington Association of Wheat Growers members quarters) and have a qualifying event. should be ready to begin collecting premiums, budget -If an employee’s qualifying event is foreseeable for the employer share of premiums (if necessary) and be (such as a planned surgery or childbirth), the em- ready to track information for quarterly reporting by Jan.

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WHEAT LIFE DECEMBER 2018 19 WL POLICY MATTERS

1, 2019. More information on the Washington Paid Family Camano)-Democrat challenger Dave Paul defeated & Medical Leave Program is at paidleave.wa.gov. Republican incumbent Dave Hayes 50.4 percent to 49.6 percent. • 28th State Legislative District (Lakewood, University Democrats to control state Place, DuPont)-Democrat challenger Mari Leavitt defeated Republican incumbent Dick Muri 52.79 percent legislature with higher margins to 47.21 percent. By Diana Carlen • 44th State Legislative District (Mill Creek, Lake WAWG Lobbyist Stevens)-Democrat challenger Jared Mead defeated Preliminary results from the November general election Republican incumbent Rep. Mark Harmsworth indicate that Democrats will maintain and significantly in- 52.24 percent to 47.76 percent. crease their majorities in the state Senate and state House • 47th State Legislative District (Kent, of Representatives for the 2019 Legislative Session. Covington)-Democrat chal- Based on election results available at the time of publi- lenger Debra Entenman defeated cation, Democrats increased their majority in the House Republican incumbent Rep. from 50 to 57 and from 25 to 28 in the Senate. The balance Mark Hargrove of power is now 57 Democrats to 41 Republicans in the 53.49 percent to House and 28 Democrats to 21 Republicans in the Senate. 46.51 percent. However, there are a few races that are extremely close No Democrats and subject to mandatory recounts. lost their seats to Election results are certified by each county on Nov. 27, Republican chal- 2018. The Secretary of State certifies final results on Nov. lengers, however, 30, 2018. A mandatory recount is required when the differ- Senate Economic Development & International Trade Chair Sen. Maralyn Chase (D-Shoreline) received 30.85 ence between two candidates is less than one half of one percent of the vote and was defeated by challenger Jesse percent and also less than 2,000 votes. Salomon (D), who had 69.15 percent of the vote. In the Senate, the following seats flipped to Democrat The following races are extremely close and headed to a control: recount: • 30th State Legislative District (Federal Way)-Democrat • 42nd State Senate Legislative District (Ferndale, challenger Claire Wilson defeated Republican incum- Lynden)-Republican incumbent Sen. Doug Ericksen bent Sen. Mark Miloscia 54.22 percent to 45.78 percent. is leading against Democrat challenger Pinky Vargas • 47th State Legislative District (Kent, Covington, 50.04 percent to 49.96 percent. This race is currently 54 Auburn)-Democrat challenger Mona Das defeated votes apart. Republican incumbent Sen. Joe Fain 50.85 percent to • 26th State Senate Legislative District (Gig Harbor, Port 49.15 percent. Orchard)-This seat was previously held by Republican In the House, the following seats flipped to Democrat Sen. Jan Angel who chose not to run for re-election, control: leaving an open seat. Democrat candidate Emily • 42nd State Legislative District (Ferndale, Lynden)- Randall is currently leading 50.07 percent to 49.93 Democrat challenger Sharon Shewmake defeated percent against Republican Marty McClendon. This Republican incumbent Rep. Vincent Buys 50.67 per- race is currently 93 votes apart and may undergo a cent to 49.33 percent. mandatory recount. • 5th State Legislative District (Issaquah, Maple Valley, • 42nd State House Legislative District (Ferndale, North Bend)-Democrats won both House seats in this Lynden)-Both seats in this district are close. district, which were previously held by Republicans. Republican incumbent Rep. Luanne Van Werven Democrat challenger Lisa Callan defeated Republican is leading 50.09 percent to 49.91 percent against incumbent Rep. Paul Graves 52.23 percent to 47.77 per- Democrat challenger Justin Boneau. This race is 90 cent. In the other seat, Democrat candidate Bill Ramos votes apart and will undergo a mandatory recount. defeated Republican candidate Chad Magendanz 51.49 There were several ballot measures this year that were percent to 48.51 percent. hotly contested. All of the initiatives passed, except for • 10th State Legislative District (Whidbey Island, I-1631, the proposed carbon fee.

20 WHEAT LIFE DECEMBER 2018 • I-1631 (carbon fee)-This initiative proposed to be the first in the nation to charge large carbon emitters a pollution fee. This measure failed with only 43.44 percent in favor to 56.56 percent against. This is the second time the voters have rejected an initiative putting a price on carbon. • I-1634 (restricting local taxes on food/beverages)-This initiative prohibits local governments from imposing new taxes on soda or grocery items. The measure succeeded with 55.8 percent in favor, and 44.2 percent against. • I-1639 (regulating firearms)-This initiative regulates the sale of semiautomatic rifles, including adding background checks and raising the purchase age to 21. The measure succeeded with 59.41 percent of the vote in favor to 40.59 percent against. A lawsuit has already been filed by the National Rifle Association and the Second Amendment Foundation challenging the new law. • I-940 (police use of force)-This initiative changes the “use of force” rules for police, creates a duty for police to give first aid and requires additional mental health and de-escalation training. The measure passed with 59.6 percent in favor to 40.4 percent against.

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Political advocacy is something many of us think we can never get involved in; the Washington Wheat PAC is changing that. These dollars will be used to support candidates that understand what is critical to our industry and the livelihood of our members • The Washington Wheat PAC is a nonpartisan, political action committee that supports ag-friendly candidates. Grain Augers • The Washington Wheat PAC pledges to promote and support elected officials from all Belt Conveyors parts of the state that positively influence agriculture. Smoothwall Bins • When you make a donation, you are investing in the future of agriculture in Washington State. Corrugated Bins 509.535.1177 Seed Tenders Information and contribution form is on our website at wheatpac.org

WHEAT LIFE DECEMBER 2018 21 PMS 139 Working to advance the small grains industry by building support for programs and activities that increase public awareness of farming.

PMS 114 WHEAT FOUNDATION WELCOMES NEW BOARD MEMBER STACEY TIMM RASMUSSEN Reminders: (From Stacey) I grew up in Harrington on my family’s wheat • Remember the farm and moved to Cheney to attend Eastern Washington Foundation in your University (EWU). I received my bachelor’s degree in commu- charitable giving. Go nication studies in 2003 and went on to earn my master’s de- to wawheat.org to find gree in communication and leadership studies from Gonzaga out more about ways University in 2011. My husband, Lance, and I were married that you can support in 2005 and moved to Harrington in 2009 to begin taking over the family farm. My husband currently works with my your industry. dad, Don Timm, for day-to-day operations of the farm, and I utilize my skills on the business/financial end of the farm. In addition to the farm, I also work for Spokane Community College as an adult education instructor. I am the manager for the Odessa Public Development Authority, an EWU Alumni PMS BLACK Association boardmember, and I am also a photographer. LET’S GROW TOGETHER CAMPAIGN UPDATE When it comes to securing a social license to farm and garner public support for the priorities of our farmers, it’s important to communicate about high-level consumer priorities. Overall, our Washington audience has positive perceptions about farmers in our state. Social content with the greatest resonance centers on the legacy and heritage of farming, stewardship of the land and honoring and thanking farmers for their hard work. Other insights come from careful evaluation of the current state of social media, identify- ing an effective strategy in the face of significant algorithm changes and shifting consumer- use patterns. At a time when traditional media use is declining, digital media is becoming increasingly important. However, the ways consumers use social media is changing. The platforms themselves are changing, and the types of relatable content are shifting. What we’re talking about: We’ve carefully balanced “feel good” and informative content on social media and complemented that outreach with blog and PSA messaging. What resonates with the audience? Posts that reach the most people and have the highest engagement are those that simply frame farming in Washington in a positive light or feature the hard work Washington farmers put into feeding Washington and the world such as:

• The legacy and heritage of farming • Sustainability • Family farming • Challenges faced by farmers • Farming in our state • Contributions of farming to our state • Stewardship of the land • Featuring the real stories of our farmers When it comes to what consumers care about most in the foods they eat, the answer is clear: transparency and sustainability. Consumers want to know what’s in their food, and how it’s produced. More than 90 percent of consumers place a high priority on transparency Washington Wheat in the foods they consume and feed their families. More than 50 percent of consumers say Foundation sustainability is an important factor in food choices. P.O. Box 252 Social media conversations: An effective social media campaign engages an audience Ritzville, WA 99169 with shared values and delivers content that connects on an emotional level. The biggest (509) 659-1987 mistake is to post content just for the sake of posting. Less can be more when it comes to wawheat.org social media content, taking care to only post content with relevance to your audience.

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WHEAT LIFE DECEMBER 2018 23 2018 Tri-State Grain Growers Convention Portland, Ore., Nov. 14-17

24 WHEAT LIFE DECEMBER 2018 WHEAT LIFE DECEMBER 2018 25 WL FEATURE Trade, tariffs, farm bill 2018 CONVENTION KEYNOTE SPEAKERS, PANELS FOCUS ON ISSUES FACING AG INDUSTRY By Trista Crossley try is currently facing, from tariffs and trade agreements For a few days last month, wheat farmers from the to the 2018 Farm Bill. Pacific Northwest traded in the farm for a convention Chase started the session by giving an overview of center in Portland, Ore., where trade, tariffs and other ag- the current farm economy, adding that net farm income related issues featured prominently on the menu. is forecast to decrease 13 percent in 2018. While trade is Two panels of experts and presentations from top of- certainly an important issue, he said the midterm elec- ficials from the U.S. Department of Agriculture and the tions could have a large impact as well, especially where Office of the U.S. Trade Representative detailed the state of the farm bill is concerned. If Congress can’t pass the agriculture and the issues the industry faces, both nation- 2018 Farm Bill during the lame duck period, the House’s ally and at home. switch from Republican to Democrat control could throw a wrench into the works. He sees House Democrats who National organizations zero in on ag issues are very interested in nutrition but not really interested in The first panel, moderated by Spencer Chase, Agri- farm policy. Pulse’s deputy managing editor, featured Chris Kolstad, “An education process will be needed,” he said. chairman at U.S. Wheat Associates (USW); Dwight Little, In wrapping up his presentation, Chase said Congress president of the National Barley Growers Association has two main items on their lame duck agenda: (NBGA); Ben Sholz, vice president of the National Association of Wheat Growers (NAWG); and Tim • Funding the government by finalizing seven appro- O’Connor, president of the Wheat Foods Council (WFC). priations bills; and This panel focused on some of the issues the wheat indus- • Passing or extending the farm bill. December is the

Representatives from national grain organizations kicked off the 2018 Tri-State Grain Growers Convention talking about the challenges and opportunities their organizations are facing. The panel was moderated by Spencer Chase (left), Agri-Pulse’s deputy managing editor. Also on the panel (starting from second left) were, Ben Sholz, vice president of the National Association of Wheat Growers; Chris Kolstad, chairman at U.S. Wheat Associates; Dwight Little, president of the National Barley Growers Association; and Tim O’Connor, president of the Wheat Foods Council.

26 WHEAT LIFE DECEMBER 2018 FEATURE WL

The marketing sector is also facing issues related to trade agreements and tariffs. Randy Fortenbery (standing), Washington State University ag economist, moderated the panel, which featured (from left) Brian Leidl of United Grain Corporation; Kurt Haarmann from Columbia Grain; and Damon Filan of Tri-Cities Grain, LLC.

deadline when most baseline program funding runs gest issue. The WFC has been working with personal out. Reportedly, the ag committees are still struggling trainers to focus on well-rounded diets instead of the to come to agreement on the nutrition, commodity latest fad diet. He added that there are some amazing and conservation titles. foods in the wheat portfolio, from cakes to cookies to Turning to the panel, Chase asked the participants to bread. “People love and eat wheat foods all the time. list their organization’s biggest issues, as well as the things It’s fun to work on a product that touches that many they are most excited about. The answers included: people,” he said. • NAWG. Sholz said one of the industry’s biggest PNW export panel hurdles was connecting the dots between producers Washington State University Ag Economist Randy and consumers, but that he was excited about the new Fortenbery moderated a panel of exporters who dis- technologies that researchers have been using, such as cussed policy implications on grain once it leaves the gene editing and hybridization. farm. Fortenbery began by stating that in his opinion, the • USW. For Kolstad, the biggest hurdle is getting the U.S. is “in the midst of the most aggressive renegotiation, 2018 Farm Bill passed so overseas marketing funds realignment of trade from the U.S. perspective that we’ve would be restored. Trade issues with Japan and China done since the 1920s.” This realignment, he explained, are also on USW’s radar. Kolstad said USW is excited is based on the perception that in the last three or four about the potential U.S. wheat markets in south Asia decades, the U.S. has been significantly taken advantage of and Latin America. in the trade arena. He laid out the timelines of the Trump • NBGA. On the barley front, Little said U.S. barley Administration tariffs and gave his perspective on the acreage continues to shrink, which threatens already current trade situation: scarce resources and the sector’s ability to influence • Supply chains and firms are much more integrated policy, but his industry is excited about barley’s poten- across geo-political landscapes compared to past de- tial food value. cades. This makes it very difficult to target individual • WFC. Nutrition was also on O’Connor’s mind, as he countries, and trade “management” can result in said nutritional guidelines are his organization’s big- significant unintended consequences.

WHEAT LIFE DECEMBER 2018 27 WL FEATURE

• Trade wars are not easy to win and determining out- tion with China is mostly political and said the country comes beforehand is challenging. is trying to prove it can go a year without importing U.S. • It is impossible to design compensation schemes that soybeans, which will improve their trading position. make victims of trade distortions whole in the long One grower asked about including China’s wheat stocks term. in USDA’s numbers. Leidl called the Chinese numbers a • Many firms can adapt to a change in trading environ- “wheat black hole” because it is unclear how accurate they ments that are predictable and stable, but will have are, but it appears that China is self-sufficient in wheat. He much more difficulty in managing the volatility as- added that three countries hold the most wheat stocks— sociated with continual rules changes. India, China and the U.S.—with the U.S. having the biggest stocks-to-use ratio. If there is a supply disruption, he “What often happens in policy, not just trade policy, but explained, there is really no other supply of wheat other policy in general, we sort of think we have this laser beam than in the U.S. focus on a particular problem. We invoke a policy remedy, and then there’s a second-phase cost that we didn’t antici- Damon Filan of Tri-Cities Grain, LLC. Filan focused pate that comes back to us,” he said. “We almost always more on the up-country elevators’ storage capacity and have a give and take, and the real question about trade ability to get the grain to market. He said his business has policy is what’s the net benefit or is it a net cost, and how moved from handling mostly government and country do we evaluate those going forward?” tenders to about 75 percent being private buyers. Filan is an industry representative on the Washington Grain The panel consisted of three representatives of Pacific Commission and has participated in many overseas Northwest grain exporters who introduced themselves market visits. He said he hears “quality, quality, qual- and gave their view on the current wheat market: ity” in just about every country he has visited, which has Kurt Haarmann from Columbia Grain. Haarmann changed the way his elevator looks at storing and selling said for the last two years, exports out of the Pacific wheat. He said Indonesia is probably the next frontier for Northwest have run at record levels in terms of total Pacific Northwest wheat exports, but it will take years to grains, with the last two years seeing 1.55 and 1.6 bil- develop. lion bushels of grain—roughly 1/3 wheat, 1/3 corn and Jason Hafemeister, 1/3 soybeans—moving through the ports. This year, that figure is likely to be closer to 1.3 billion due to the cur- special trade council to the USDA Secretary rent trade issues. He said that within the tariff discussion, Hafemeister’s presentation was given via telephone as a wheat sometimes gets lost, particularly when talking storm on the East Coast disrupted his travel plans. He fo- about China, and said the retaliatory tariffs are as much cused on some of the challeng- political as they are about economics and goes beyond es, threats and opportunities price. The closure of the Chinese market to U.S. soybeans facing U.S. agriculture. He said has forced U.S. farmers to change their whole market the top five export markets structure, forcing them to store soybeans rather than im- for U.S. agriculture are China, mediately sell them. He also said, in answer to a question Canada, Japan, Mexico and about the U.S. Department of Agriculture’s (USDA) latest the EU, and the U.S. is facing export forecast, that Pacific Northwest prices tend to be a tariffs in all those countries. little more stable due to our soft white wheat, so he didn’t The tariff situation began expect too much of an impact if the industry doesn’t meet when the U.S. Department of the USDA’s numbers. Commerce decided that steel Brian Leidl of United Grain Corporation. According to was important for national Leidl, United Grain Corp. stores about 8 million bushels of security, and steel imports grain and is the largest and oldest facility on the Columbia should be limited to 20 percent of domestic consumption. River. He told growers that quality is the region’s best The administration imposed tariffs, which were quickly weapon. “When it comes to quality, nobody can match matched by other countries imposing retaliatory tariffs. what we can do here in the PNW, thanks to your efforts That same reasoning is being used to consider an increase and the whole system that has been devised.” Referring in auto tariffs. Hafemeister said the top six U.S. ag markets to USDA’s recent export forecast of 1 billion bushels, Leidl are responsible for 95 percent of the auto and auto parts said it’s not impossible for the market to meet that, but that imports to the U.S. the window is closing rapidly. He agreed that the situa- “If we somehow get into some sort of trade war for

28 WHEAT LIFE DECEMBER 2018 FEATURE WL autos, there is a potential exposure for agriculture to ment has gone up as people realize what the U.S. would be be caught with retaliatory tariffs as we saw with steel. losing. “It’s hard for us to do much better (in Mexico) than Something to be watched very closely here,” he explained. we are right now,” he said. “Agriculture has a big stake On the China front, Hafemeister said the size of the making sure the USMCA (the new NAFTA) gets through trade deficit and not protecting intellectual property have Congress.” been concerns for the U.S. and that it is an unbalanced Finally, Hafemeister addressed the World Trade trade relationship. There have also been concerns that Organization (WTO) dispute process. He said in general, China is taking U.S. manufacturing jobs. agriculture has been very successful in pursuing cases via Turning to the North American Free Trade Agreement the WTO, but that the administration has concerns that (NAFTA), Hafemeister said approval of the trade agree- the judges are becoming more political in how they decide

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WHEAT LIFE DECEMBER 2018 29 WL FEATURE

cases. He added that the WTO needs a common set of rules to judge cases by. Gregg Doud, chief agricultural negotiator in the Office of the U.S. Trade Representative Fresh off a trade mission to Morocco (literally, he flew into Portland straight from that country), Doud gave the audience a bird’s-eye view of what the current administration is doing with regards to agriculture and trade. Doud said a big difference between negotiating in agriculture is that “… we can’t grind them (the other guys) into the ground. We have to have a relationship with the person across the table because they are going to be with us for a long time.” Nowhere is that more true than in Japan where Canadian, Australian and European wheat will eventually become cheaper than U.S. wheat when the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP is the agreement that replaced the Trans-Pacific Partnership) goes into effect at the end of this year. The U.S. is not part of the CPTPP. The good news, Doud said, is that the administration has announced they are ready to start working on a bilateral trade agreement with Japan. He added that according to some economic analysis, if a deal isn’t made, wheat is the commodity that will be hurt the worst, followed by beef and pork. member of the WTO in 2001, they “If you lose that market share, I don’t know if you’ll ever get it back. I under- should be importing every year stand how important this is to get this right and get this done and get it squared about 9.6 million metric tons of away as quickly as we can,” he said. wheat. They’ve never done that,” he Pivoting to China, Doud said he is hopeful that a planned meeting between said. The U.S. is having many of the U.S. and Chinese officials at last month’s G-20 summit meeting will “…hopeful- same issues with India. ly lead to another conversation, and hopefully that will lead to another conver- In Europe, Doud said there are sation and to another conversation, which finally gets us to sit down to talk and too many activists making money sort this out.” by talking about the food consum- Doud said one of the main issues the U.S. has with China is the country’s ers are eating, and the restrictions subsidies to their wheat, corn and rice farmers, which have been estimated to some countries in Europe are plac- exceed their World Trade Organization (WTO) limit by $100 billion. They have ing on pesticides and antibiotics are also imported less wheat than their WTO obligation requires. presenting huge challenges to U.S. “If they had fully implemented what they agreed to do when they became a agriculture. Connell Grange Supply We Deliver DRY FERTILIZER EQUIPMENT Nurse Boxes Top Quality Belt Loaders Fuels Truck Spreaders Hydraulic Drill Fills • 24-Hour Pumps C-200 Cleaners/Treaters Shop With Us Brush Augers • Bulk Fuel Tanks Where For Sale The Customer • Farm Hardware Is STILL In Stock The Company! • Full Tire Services 509-535-3051 • Cattle Equipment 1404 N. Regal Spokane, WA 343 S. Columbia • Connell, WA barberengineering.com http://www.connellgrange.com 509-234-2631

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WHEAT LIFE DECEMBER 2018 31 WL FEATURE Progress report: Moving forward to limit FN risks The Hagberg-Perten (H-P) test that grades wheat by measuring the effects of the alpha-amylase (AA) enzyme was developed a long time ago. Its original purpose was not to measure grain quality, but to help bakers wanting to know how much AA to add when making loaves of bread. Back then Dwight Eisenhower was president, Hawaii and Alaska had just been ad- mitted to the Union, and folks were worried about the Soviet Sputnik satellite they’d seen in the night sky a few years earlier. I was in fifth grade at the two-room country school at Hooper, Wash., where we measured time by the big wall clock above the teacher’s desk, studied numbers by writing them on the chalkboard and were graded by how well we did on the “Think and Do” tear-out page at the back of our work- books. I remember one of my fellow students addressing the uncertainty of the test From Alex McGregor results by “borrowing” the teacher’s handbook and copying the answers verbatim, including the clause “any answer substantially similar is acceptable.” That was not a wise approach. The year was 1960. Technology has advanced rapidly on so many fronts since those halcyon days. But for half a century, the H-P test has remained the tool used to measure starch degrada- tion effects on grain quality. We’ve known since the pioneer days that substantial rains on ripe grain can cause losses, and the H-P test measures them. Our typical hot, dry summers fortunately limit the risk. The test also is sensitive to late maturity alpha- amylase (LMA), which is caused by extreme temperature variation and cold weather during late grain filling, 25-30 days after pollen shedding. A French wheat researcher doing work in Australia recently described LMA as “the tip of the iceberg” and PHS as more formidable—the full obstacle, above and below the water line. “Does LMA cause declines in quality?” he asks and con- cludes more tests need to be done. PHS is clearly bad for sponge cake. There is likely some correlation, probably not as strong, between LMA and cake quality. Craig Morris, Alecia Kiszonas and the staff at the Western Wheat Quality Lab in Pullman have been busy doing baking studies to learn more, with funding assistance from the Washington Grain Commission (WGC). See Episode 86 of the WGC’s Wheat All About It! podcast at wagrains.org. The real-world consequences of low falling numbers (FN) caused by LMA can be severe. It was the primary culprit in 2016 when losses were staggering, in the tens of millions of dollars. Kudos to grain companies who, this year, were able to handle the crops with minimal, if any, discounts and to our good fortune of not facing a temperature roller coaster as severe as a couple of years ago. We can’t find a “Think and Do” book with the answers inside when a weighted plunger falls to the bottom of a wheat slurry in less than five minutes—300 seconds. Holding onto low FN wheat can help, if the number isn’t “too low” and the days are “hot enough.” Only an expert can mix high and low FN wheat because it takes only a little low FN to lower the reading for the whole batch. As Washington State University (WSU) researchers put it, the “falling numbers test is a test [that] farmers love to hate.” The reason is inconsistency both from physical factors in test taking and biological variation.

32 WHEAT LIFE DECEMBER 2018 FEATURE WL

We have a remarkable, collaborative team develop a rapid and simple test for elevators and growers making big strides forward to address the that is quick, repeatable and accurate.” challenge Glen Squires of the WGC points out that “one of the We are fortunate to have our three land-grant schools, needs raised at the symposium was to improve the accu- USDA/Agricultural Research Service (USDA/ARS) and racy of the current test, including updating testing proce- the Western Wheat Quality Lab in Pullman, working dures and protocol and ensuring uniformity of processes. to get answers. David Weller, of USDA/ARS, says of the WSDA’s grain inspection division provided this type group he leads, “We are all working as a team in a seam- of information to the Federal Grain Inspection Services less effort to address all aspects of this particular problem. (FGIS). At the same time, USDA/ARS in Beltsville, Md., We are working night and day, as hard as we can, to find has been doing work looking at the influence of baromet- solutions.” ric pressure on FN test results. Factoring in barometric pressure does, in fact, show a linear relationship and David Weller, Camille Steber and Craig Morris of ARS; improves accuracy of the current test. To date, the FN test- Michael Pumphrey, Arron Carter and their colleagues at ing directive has called for an altitude adjustment at 2,000 WSU; and Jim Moyer, the recently retired associate dean of feet to compensate for elevation changes. FGIS is planning CAHNRS, the agricultural school at WSU—all have been to implement an updated directive next May, including active in meeting the challenge. I’ve pitched in whenever I barometric pressure.” could be of help. Resistant wheat varieties are clearly Washington State Department of Agriculture Director the long-term answer Derek Sandison has been a stalwart ally along the way. New technology, he has stated, “Would go a long way Breeding resistant wheat varieties is a complex bal- toward mitigating the current problem” by allowing better ancing act. Though low AA readings can cause painful segregation of lower FN wheat. The Washington Grain FN results when the crop heads to market, AA is vitally Commission (WGC), USDA/ARS and WSU were already important to a growing crop, too, in fueling initial plant working on the challenge before the crisis of 2016 hit like growth and for healthy plant leaves. Dr. Daolin Fu’s group a sledge hammer—focusing on developing more resistant at the University of Idaho is working on wheat AA genes varieties and finding a better way to assay the presence with funding support from the Idaho Wheat Commission. of proteins with quicker, more reliable results. The Pacific They are using CRISPR technology to edit six AA genes Northwest wheat industry sought and obtained from and will find out how specific alpha-amylases attribute Congress $1 million in new funding to USDA/ARS that to grain falling numbers and their effect on plant growth. makes possible the hiring of a researcher to do full-time Camille Steber explains that the problem comes with pro- background work on seed varieties. Likewise, efforts of duction of AA during the wrong time in development. As the WGC working in collaboration with USDA/ARS have Steber, Pumphrey and Carter put it in 2013, wheat breed- helped provide $1 million worth of new equipment to re- ers need to strike a balance between sufficient dormancy place the tools already well worn when Craig Morris took at maturity to prevent sprouting without sacrificing the the lead at the Western Wheat Quality Lab 30 years ago. ability of the seed to lose its dormancy quickly enough to obtain good emergence when planted. As they put it last Putting the pedal to the metal: year, “If we do our job right, farmers will no longer notice A fast pace after the 2016 debacle when we have LMA-vulnerable weather because their Just over two years ago, in September 2016, as the dismal wheats will be resistant.” FN results came in, growers, scientists, agencies, state Andrew Ross of Oregon State University has done ex- legislators and Rep. Cathy McMorris Rogers (R-Wash.) met tensive FN work for many years—including studying the in our office to chart a path ahead. My biggest concern at impact of storage time and temperature on low FN wheat the time was to make sure the FN challenge didn’t fall off and the role of starch and protein in wheat flour noodles. the radar screen down the road as other issues came to the His colleague, Bob Zemetra, has made big strides in build- fore. It hasn’t. ing resistant varieties. The germplasm in his program has The following February, a falling numbers symposium shown real promise in reducing vulnerability to PHS and in Spokane, Wash., brought together all facets of the Pacific LMA. Together, our land-grant schools and USDA/ARS Northwest wheat industry to identify the research being are moving toward fewer susceptible releases. done, knowledge gaps and short- and long-term needs. Work has already been done to get a sense of how Craig Morris and I were asked to take the lead in looking vulnerable current varieties are to FN. Camille Steber has for ways to “use or modify existing or new technology to shared results from several years of testing, funded by the

WHEAT LIFE DECEMBER 2018 33 WL FEATURE

WGC, at steberlab.org/project7599data.php. McGregor re- to get ELISA testing underway. Jim Moyer has worked search leader Cat Salois has shared a quick reference chart. with Ed, Craig and me in the search for a tool that could The FN test equipment is expensive—$30,000 plus—slow measure AA and limit risk. and not convenient to use. Wheat researchers at WSU Craig and his fellow research scientist, Alecia Kiszonas, have had to develop new separate sets for screening, one began by studying three currently available ELISA kits, for PHS and one for LMA. In 2016, 10,000 spikes from 500 including one that measures protein in human saliva and lines of wheat were on the docket. In 2017, WSU techni- another used for measuring proteins in the pancreas. The cians took to calling the 40,000 spikes from 1,200 lines “the pancreatic test, they found, successfully measured AA falling number mountain.” and provides a potential off-the-shelf avenue to use ELISA Despite the obstacles, significant progress has been to evaluate and detect AA in wheat grain samples. “We made. Michael Pumphrey of WSU states, “Genetics is consider it highly serendipitous,” they wrote, that the paramount. I believe in genetics. This is one area where pancreatic kit “appears to be detecting increased AA levels genetics is the solution.” But, he adds, “Screening is an associated with PHS and LMA.” extremely expensive project. Grading grain doing FN. We While this work is underway, researchers are also evalu- need to make it cheaper somehow.” If such an inexpensive ating other possibilities, including a step beyond near in- solution can be found, Cat points out, it could help farmers frared (NIR). As Camille Steber puts it, “I am also excited monitor fields for trouble. It would be less costly and more because Dr. Zhiwu Zhang, the quantitative geneticist in practical for public and private wheat researchers to moni- the Department of Crop and Soil Science, thinks he can tor the potential of a wide array of potential varieties and make NIR or something like it work using fancy math- cast aside those with low FN resistance. WSU research- ematics. He said that if I can give him many more samples ers emphasize that it is “absolutely critical that growers with known FN (and I get these from the variety trials), identify the presence of PHS/LMA as early as possible so that he should be able to use machine-learning mathemat- that it can be isolated appropriately.” As Craig Morris puts ics used for facial recognition to get a hyperspectral (fur- it, if there was some quick, easy antibody test, it could be a ther outside the visual range of light than near-infrared) major breakthrough. calibration that can predict FN. I really hope this could Searching for a practical and inexpensive give us a quick approximation at the elevator.” She’s help- tool to help in the field ing him with a grant proposal to try his idea out for size. Camille and Michael Pumphrey are collaborating on The H-P test will remain the international standard for ELISA with WSU professor Andy McCubbin, who did his the foreseeable future; overseas millers are understand- postdoctoral work on alpha-amylase and has been a major ably wary of sprouted wheat that could produce collapsed contributor. Working together as WSU and USDA, they cakes or spongy noodles. Developing resistant variet- are now taking the next step forward, studying antibod- ies takes a considerable amount of time, for the research ies raised to three amino acid sequences from the AA itself and for passing foundation and certified standards. enzyme: one from the same string of amino acids in the We can’t copy a “Think and Do” instruction book in the Bayer patent, another a variant on that string and a third interim, but perhaps we could come up with a different of their own design. There is a lot of work ahead, fine tun- test for growers and grain companies to get quick results ing and selecting the best, most specific tool. As Camille in the field or at the elevator. AS WSU researchers put it, puts it, “Luck is involved as an element in finding a good a modern assay could have a transformative impact on antibody that sees AA and nothing else.” We’re work- Pacific Northwest wheat growers. ing together to find a scientific laboratory familiar with The potential for a new test: ELISA grain production to make kits once the best ELISA tool is ready to go. Engineers at WSU have been working on the Enzyme linked immunosorbent assays (ELISA) are mechanics of instant delivery of an ELISA test via a smart widely used in science and medicine. Might they be phone chip. adapted to detect the presence of AA proteins in cereals? Kudos to Bayer Crop Science and their international wheat The road ahead lead, Ed Sousa, for giving us permission to proceed with Might it be possible to have a kit that growers could use testing an ELISA formula they had patented but decided in a couple of years? Yes, I believe it is. Researchers cannot not to pursue commercially. Once a research scientist at commit to it—there could be unforeseen obstacles ahead. the University of Idaho, Ed is familiar with our Inland But knowing them and the hard work underway, I like Northwest wheat world and has worked with us for two our odds. The WGC and USDA/ARS set a goal five years years as we’ve gone through a very complicated process ago of a highly sensitive, easy-to-use tool to help growers

34 WHEAT LIFE DECEMBER 2018 FEATURE WL reduce risks. There have been big promising new varieties with improved resistance in the works, even with a strides made since then. slow, complex tool and a mountain of samples. As David Weller put it, a seam- We’re fortunate to have remark- less effort, going as hard as they can, night and day—it’ll make a difference and able people and resources devoted be a big help in challenging times. The challenge will be met; the battles won; to meeting the AA challenge. The and we’ll no longer be stuck with only a test we all love to hate. The motto of the Western Wheat Quality Lab in Western Wheat Quality Lab in Pullman—bringing solutions to agriculture— Pullman—one of four in the na- says much about the road ahead. We’ll all see the day, sooner rather than later, tion and the only one west of where warm spring days and cold nights will be a lot less risky and much more Kansas—with Craig, Alecia, Doug enjoyable. You have my word on it. Engle and a half dozen ARS staff. A follow-up FN summit is being organized for late January, prior to the Pacific Camille Steber and the USDA/ARS Northwest Wheat Quality Council meeting in Portland, Ore. It will be a time team, including a soon-to-be hired to compare progress reports from all the research work underway around the ARS scientist specifically dedicated region. We’re looking at other grant possibilities, too, to fill any gaps in the work to solving the AA/FN issue. The underway and to continue to expedite this important work. We’ll keep you University of Idaho, Oregon State posted. University (Pendleton and Corvallis), Washington State University—three land-grant schools with scientists Full Service Driveline Shop working to meet the challenge right Good Supply of Parts In Stock! next door here in wheat country. A BLACK MAXX VALVE Your Best Choice For new assay that can have a transfor- Application Of Liquid Fertilzer mative impact? Who better to make it happen! We’ve got a tradition, dating back more than a century, of growers, scientists and local businesses working together and getting results, a Trucks-Heavy to Light • Ag & Industrial • Automotive • Hotrod • Racing remarkable relationship that few regions can match. As Pullman farmer Girard Clark put it way back in 1909, Call “In the world of cereal improvement, Manholes For 407 and 412 Darren Sharkey there is no limit to the possibilities, Hydraulic Pumps & Valves Applications Over 32 Years of Experience hence no stopping place.” Driveline Fabrication & Repair Kudos to Mike Miller and the PTO's & Shields WGC, Jim Moyer of WSU, our leg- Pressure Vents, Vacuum Vapor 3" & 4" Models Breakers Recovery Valves Vibration Analysis & Mitigation islators and the Pacific Northwest Driveline Balancing wheat industry for getting $1 million Parts & Components in new money to the ARS for FN re- Custom Applications search to help meet the challenge— Metric or American Standard with many others helping make it possible, among them Mary Palmer COOLERS BLOWERS We're Here To Solve Sullivan, Glen Squires, Michelle Your Problems! Hennings, Nicole Berg, Marci Green Emergency: Ofﬁce: and Gary Bailey. Pulling together 509-842-0245 509-545-4600 we get results. Always have, always will. I am encouraged by progress made so far by the outstanding team of USDA/ARS and land-grant researchers. They’ve made great 1206 E Lytle Street • Pasco, WA • www.tankmaxnw.com strides toward a reliable AA test and

WHEAT LIFE DECEMBER 2018 35 WL FEATURE Plowing the Palouse On a breezy October afternoon, nearly 30 antique tractors pulling all sorts of plows showed up to till roughly 75 acres behind the Papé Machinery store in Tekoa, Wash.

36 WHEAT LIFE DECEMBER 2018 FEATURE WL

The event drew tractor enthusi- asts from Oregon, both sides of Washington state and even Utah. For more photos, check out facebook.com/PlowinthePalouse/.

WHEAT LIFE DECEMBER 2018 37 DO YOU HAVE FARMLAND FORMERRY SALE? Your neighbors aren’t the ONLY ones whoCHRISTMAS want to buy it. Kincaid Real Estate has QUALIFIED buyers ready to FROMmake an KINCAIDoffer on your REAL property. ESTATE LetThinking our knowledge of selling of the your market addfarmland value for or you! surplus equipment?Now booking SpringTake it to & FallAUCTION! 2012 Locallyauctions. Owned Calland early Operated for best dates. C.D. “Butch” Booker Real Estate Broker/Auctioneer · REAL ESTATE · 809 N. Main, Colfax WA 99111 · LIVESTOCKLivestock · 509-397-4434 · EQUIPMENT · Equipment E-mail: [email protected] www.kincaidrealestate.com

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Contact Chauna Carlson at the Washington Wheat Foundation rental line (509) 659-1987

38 WHEAT LIFE DECEMBER 2018 WASHINGTON GRAIN COMMISSION 39 ------DECEMBER 2018

WHEAT LIFE WHEAT By Gary Bailey reporter, Matthew reporter, Weaver. Podcasts Scott postedPodcasts in October a two-parter included Like anything take may learning it worthwhile, a new easy listen to pro to it’s is setOnce phone up, your Scott a terrific hasof done making job the podcasts If you haven’t listened the All It! to Wheat About haven’t If you podcast tacklesThe issues that are important farm for ers understand to like falling numbers, wireworm con they also resistancetrol, But weed into veer and weather. entertainment with rural stories of life like the Combine a visit the to Ritzville Derby, Museum,Demolition a even of Capital Press profile He Green, Bleed But entitled, “Dennis Doesn’t Solbrack with a a conversation Green, John DeereLives Green”; Service meteorologist entitled, Weather “Wolf’s National a visit with soft Weather”; Northwest Wacky to Guide can Google variousgrams You anywhere. get started to podcast apps including Stitcher, Cast, FM Radio Overcast, and, Pocket of espe it’s an iPhone, have If you course, iTunes. ware engineer/farmer Andrew Nelson about monitoring Andrew about Nelson ware engineer/farmer his crops with sensors and drones called, Brave “The and final Farming of Farmington”; to Comes World New an Retire? Lessons Me episode retirement, on “What? ly, Lifeon After Farming,” in which talks he Jim Walesby to and retirement Randy on Suess learned. lessons they’ve trick listen to the to podcast. Smart are phones wonder only scratchedful, the I have I admit, surface but of report, to happy capabilities. I’m pocketmy computer’s download to how figure to thatout able I was however, and listen the to enlisting podcast without my the of help kids or grandchildren! cially easy listen. to the touch Just podcast icon don’t andyou type inIf the All It finder. Wheat About can a smartphone, com you listenhave home your on wagrains.org. at website Go the to WGC puter. informative and entertaining. I urge those who you of already gotten into the begin to habit educa your haven’t tional listening experience. I highly recommend it. the WGC’s portion the of magazine to ranged from 18 the WGC’s each Within month. 22 pages the have last we two years, returned count because page Scott our to contracted 11 has undertaken project. a new missing a very important part your you’re of podcast, After education. experimentingwheat with a simplified 20-to-25 a once-a-week, to Scott went a year, podcast for As someone minute interview in format January 2017. podcast every and new has awaits participatedwho in I can attest the on #35), Palouse his own episode (Payday listening of theto power tell their people to own stories. ------in 2008. each month. For hisyears, each For first month. eight , is the publications, national of crown jewel wheat Another program educational innovative is Wheat I’m happy to report to that happy is just known well as the WGC I’m Joe the job at office. is part everyone’s Education of have may Mary vice president, Sullivan, Palmer WGC Squires Glen CEO Since is he educator-in-chief. WGC As director communications of rela and producer Research, marketing are and the education three legs Week, an effort underwrittenWeek, that teaches the by WGC fifth sixth and across wheat and graders about state the natural curricu resources as part Washington state’s of which includes our WGC section. Crossley Trista which our Editor includes WGC writing juggling for eye creative her job, her at is superb with editing and designing pages. the of most magazine’s throughout the industry and innovative its forward- for thinking research and marketing efforts, the same holds true activities. educational its for magazine, The Wheat Life program The reached thanlum. more students in 26,000 the any doubts program have is edu wouldn’t You 2017. cational the read if postcards you kids the send at of end participation. their pre PowerPoint the hasBippert commission’s updated sentations customers, creating for dashboard-like charts that are our customers for easier understand. to And he and account Facebook Twitter administers the WGC’s Like us! page. theamong as jobs, is educational she toughest primarily escortingresponsible for teams trade around the state. fresh message throughout an in Keeping the WGC’s creasingly and busy long tour season buyers overseas for is an effort educational extraordinaire. in not the trenches he’s as the much— got job in top 2012, busy as is he with calls, and phone the travel bureaucrat detailsic running of the like commission. education, But our two other priorities, is his under authority. of theof that stool underpins theefforts the of Washington talk research about a lot We Grain Commission (WGC). and marketing education, less this on about but page, which is equally telling important. Because aren’t if we farmers, agribusinesseslandlords, and politicians where coming difference from, what make? does it we’re tions, Scott Yates leads our efforts. educational leads Scotttions, Scott Yates came the to commission from the Capital Press known was he his for As a reporter the for newspaper, hardball journalism, the stuff great read—when to that’s calls,phone fielding Besides talking you! about not to it’s reporters and creating Scott writes, displays, educational takes organizes, photos, assembles and edits the WGC’s portion of Wheat Life 40 WASHINGTON GRAIN COMMISSION WHEAT LIFE he missed it. he missed industry—and milling away international been the from in he’d20 years time first it was the he realized in, years white wheat. hard Two stone-ground in tive specializing coopera Foods, asmall to KSU leadleft Farmer Direct travel well as as overseas. countries other from people to teach opportunities years, the he reveled in (IGP) Program work Grains for for its 14 International Even Africa. to when to South KSU Fowler returned Durban, Groupin officeOverseas working out of their Seaboard for the director technical the as he served Later, Caribbean. the and Africa America, South in tions advice company’s for opera the offering and milling corporate office,visiting the in specialist milling became he business, trading and processing grain ternational in Wichita. Jumping an to Seaboard, in Cargill with overseas. It employed took afewto there, get years first job, first to a desire his work from management, and and sciences State University (KSU) milling in Kansas thing. own his under advisement, offer butthe wanted to try The took young farm. man back to the he came if for him would aplace there be know him aside, letting took him younger Fowler’s to go grandfather to college, his turn When it was the classes. Spanish his to Mexico with on trips him travel, taking for appetite international his up, was father whetting growing his ranch cattle and grandfather’s wheaton his teacher. aSpanish as a career onward and a college to degree receive to the family in first the to be farm, Kansas parents’ his father’s away led him path from Fowler’s Mark lives. In children’s their transform can es most how aparent’sthan choic Mark with Checking Fowler in USW’S OLDEST, NEWEST EMPLOYEE ON BRINGING A MILLER PERSPECTIVE TO OVERSEAS OPERATIONS TO OLDEST,USW’S EMPLOYEE OVERSEAS PERSPECTIVE AMILLER NEWEST BRINGING ON Deciding to scratch an entrepreneurial itch, Fowler entrepreneurial an to scratch Deciding from adegree out getting to be turned That “thing” FowlerAlthough spent time appreciate better can Farmers

DECEMBER 2018 case, his - - - - R W ASHINGT try is an advantage? an is try with U.S. me!with with Wheat U.S. and Wheat familiar very is I’m consultant. familiar very amilling ayear as or twice IGP. the through worked once traveling Ialso for them, U.S. came forwith that groups Wheat to provide training Icooperated Then, when Iwentties. back to Kansas, activi trade servicing ofwork their target Iwas the best. wheat which would and locations and mills different about talking and staff meeting and information quality was U.S Wheat’s U.S. customer. the crop Iwas receiving Corporation, I Seaboard the 20 years. When Iwas with ployee Ihave for because worked more them than with important for daughters. our important Ifelt and was my that hometown wife provided stability afamily. Kan., raising a Having 14 Manhattan, in years at IGP. milling involvedto be international in We spent to family, closer to be Icontinued to Kansas returned age was of notmy an to travel family we much so and industry. When international the Seaboard, with then and domestic industry the in Cargill with of experience alot to gain a relatively young age, opportunity Ihad the far? so career in. to check thought it time agood Commission, producer Grain Washington and for the relations cations new duties athis USW. Yates, Scott of communi director way had the “overseas” of that ajob in stand its title. in couldn’t family move—it’s the another to imagine easy daughters two and veto power over USW offer—and the of overseas Fowler operations. Although gave wife his president vice as to replace individual for him an looking to president of U.S. (USW) Wheat was Associates and Fowler: WGC: Fowler: WGC: Fowler: WGC: Fowler ayear since It’s more took than on alittle been Enter Peterson, Vince elevated who been had recently EP Do you think your history in the milling indus milling the in your history Do you think Were you familiar with U.S. with Were Wheat Associates? you familiar you as look back over What do your you think Knowing all the variables and dynamics of of dynamics and variables the all Knowing I like to say I’m I like U.S. Wheat’s oldest, newest em of my At chapters life. of it different as Ithink ON GRAINC OR OMMISSION TS - - - - WGC REPORTS WL the global wheat industry, the different products made in WGC: We in the Northwest have been beating the qual- different regions, the different options companies have ity drum for quite some time, but I’ve also heard it said to buy grain and especially having the perspective of a that a good miller who knows what he or she is doing miller or a milling company, that gives me a solid foun- can basically make a poor wheat perform well enough. Is dation. I’m bringing a different perspective to U.S. Wheat that true? because of my background. Fowler: You can’t make a silk purse out of a sow’s ear, WGC: But is your experience a double-edged sword? but there is a lot you can do. Wheat producers are three You look at the world through the lens of a miller. What steps away from consumers. The first customer for wheat are you missing? is the mill because nobody eats wheat or flour for that matter. You have to convert the commodity into an edible Fowler: When I compare myself to Vince, my weak- product. The type of wheat you choose is dependent on ness is in the ability to analyze the markets from a the flour you need. The type of flour you need is depen- technical perspective. But U.S. Wheat as an organization dent on the quality of the product you are making for the has a history that is very strong in market analysis. My

consumer. The quality of the wheat needed is dependent WASHINGTON COMMISSION GRAIN background in the milling utilization side brings a per- on the quality of the market. While you can make a cake spective on export quality, technical service, mill utiliza- out of almost any kind of wheat, if you want the finest tion and grain origination, and how grain from different cake with the best texture and melt in your mouth feel, origins is used. Vince and others are very strong in de- you need soft white wheat from the Pacific Northwest. veloping a market analysis perspective. I like to believe Yes, you can make a cake out of wheat from Argentina, my perspective is adding to the strength of the organiza- as an example, but it is going to have a tougher texture. tion. As the global industry becomes more competitive, WGC: U.S. Wheat has to match that competitiveness and add Is the average consumer really going to care more layers to customer service. Price was the dominant about the texture? variable for many years. Now, as we become more com- Fowler: No, not in every market, but in the markets petitive, we have to add the quality variable. where we are successful, Japan, Korea, China among

U.S. Wheat Associates’ (USW) vice president of overseas operations, Mark Fowler (on right, second row), participated in roundtable meetings with flour quality managers in Seoul. He was joined by members of the Washington Grain Commission; Joe Sowers, USW regional vice president; CY Kang, country director; and David Oh, food/baking technologist.

WHEAT LIFE DECEMBER 2018 41 WL WGC REPORTS

others, the consumers are aware of quality and have a definite prefer- ence. Your average consumer may or may not know the difference or even the quality they want, but they know the quality they don’t want. Again, it depends on the market. Think about Italians. They know good pasta from bad pasta. Americans not so much. It’s market dependent. It’s also important to think about value. U.S. wheat is low moisture and has a big kernel size. That can make a difference in flour extraction of up to 1 percent compared to an origin with higher moisture and a variable kernel size. U.S. Wheat Associates’ vice president of overseas operations, Mark Fowler, traveled with regional vice president, Matt Weimar, to the Philippines where they met with industry partners, including WGC: In terms of wheat ex- the Filipino-Chinese Bakery Association, Philippine Foremost and Morning Star Milling. ports, Asia has been the Pacific Northwest’s bread and butter. We wheat necessary. Yes, Australia has a competitive advantage on freight and lo- are now hoping to expand the Latin gistics, but it can’t produce all the wheat needed to supply the growing Asian American market. Is it possible the population. countries to our south will become WGC: Vince Peterson was in your position for 12 years. How has he been at another Indonesia? letting go? Fowler: There’s no doubt we Fowler: The transition has been pretty good. Vince has needed to move on need a larger presence in Latin and take over the job responsibilities in his new role. I think we have worked America. It is a growing market. In together long enough that he has confidence in his decision to bring me on fact, sales in our two regions that board. There have been bumps along the way. Being a new person at USW is a make up Latin America has grown rare thing. One of the strengths of the organization is that in nearly every one from almost 27 percent of total U.S. of our offices, we have someone with 20 plus years of experience. That kind of wheat exports in 2008 to more than longevity is rare in today’s environment. Bringing in a different perspective 38 percent of our total in the last to a very mature organization has presented opportunities to look at opera- marketing year. But when you com- tions in a new way. I believe one of the reasons I was hired was the need to pare it to Indonesia, the population strengthen the perspective of millers and milling operations and continue the WASHINGTON GRAIN COMMISSION WASHINGTON in Latin America is not growing as development into a more multidimensional organization—not just market fast. And the region is very compet- analysis but product development and business analysis too. itive. Canada is a strong presence in this hemisphere, and Argentina WGC: Are you concerned about the trade war that’s developing with China? continues to be a strong competitor Fowler: I think the long-term benefits to improving trade relations with for wheat markets in Brazil. China are positive for the U.S. wheat producer. Our history with China, even WGC: I recently checked how far in 2017 when they imported 1.7 million metric tons—that’s still less than 2 it is from Indonesia to Australia percent of their consumption. Anything that improves our access to China is versus the U.S. to Indonesia. going to be positive. Australia is 7,000 miles closer than WGC: It’s been suggested that soft white, as a specialty wheat, is in an envi- the U.S. Can Indonesia really be able position compared to some other classes. No other country grows soft a consistent market for us when white like ours. Are we in the catbird seat? Australia is so near? Fowler: Soft white is a wheat that provides unique qualities, but there is Fowler: It really comes down always going to be competition. When you have a product like soft white that to a simple math equation. Given does provide unique qualities, your competitors are going to work hard to rep- the population growth in Asia, licate it. You can never rest on your laurels. The only constant is change, and if Australia cannot supply all the we aren’t changing to meet the needs of our consumers, somebody else will.

42 WHEAT LIFE DECEMBER 2018 WGC REPORTS WL Claassen bids the WGC adieu By Scott A. Yates After serving nine years on the Washington Grain Commission (WGC) and a previous four years on the Washington Barley Commission (which was rolled into the grain commission in 2009), Steve Claassen says it’s time for new blood. “It’s time to let newer, younger minds be engaged and have the op- WASHINGTON COMMISSION GRAIN portunities to learn about the grain industry beyond the elevator where they dump their trucks,” he said. Besides, Claassen has a new challenge coming up. After serving for nine years on the board of the Tri- State Memorial Medical Campus in Clarkson, Wash., he’s scheduled Mr. Liu Yizhou (right), general manager of China’s Guangdon Baiyan Grain and Oil Industrial to become its chairman. He antici- Co., shares a toast at a dinner with Steve Claassen during the latter’s 2012 overseas trip to three pates that leading an organization countries. involving a branch of knowledge he dreams never extended far beyond the farm. Kathryn danced for six years hasn’t been learning about since the before returning home for a visit and, as the cliché goes, the rest is history. time he was a child will require a lot more of his attention. Claassen’s father’s family was originally from Germany. Wheat and cattle ranchers in Nebraska, they headed further west during the Dust Bowl era and “I need to focus on that because started a dairy in Colfax, Wash. In 1946, his father sold the dairy and pur- it’s totally out of my wheelhouse,” chased a sheep pasture west of Clarkson. There, he broke out the pasture and he said. began planting wheat. The farm has grown to 5,000 acres of summer fallow Now 67, Claassen considers him- ground. self to have been farming his entire Prior to serving on the WGC, Claassen said he lived in a much smaller life. It’s been more than a career, he world, a place he called “Planet Wheat.” As he described it in a 2012 article said, or as he put it, “I do it because he wrote for Wheat Life, his personal planet was “a place where I grow, tend I love it. I’ve loved it since day 1. and harvest my crop, truck it to the elevator, dump the grain and expect to be Otherwise, it’s just not worth it.” paid.” Claassen’s other love is his wife, During his time serving on the grain commission, however, he has learned Kathryn, with whom he recently there is a whole universe beyond the tailgate of his truck. celebrated their 41st anniversary. She too has been on his mind as “We think our grain has come a long way when we bid it goodbye, but re- he made the decision to step down ally, it’s only the beginning of its journey,” he said. from the WGC. Maintaining relationships with customers along that journey are even more “She deserves more of my time. important today in a world where the usual rules of trade are being rewritten. We want to do activities together Or, as he put it, when it comes to challenges ahead for the WGC, “the biggie is and get more involved in each trade. other’s lives,” he said. “Keeping those relationships intact, no matter how things come out, is Claassen and his wife met in high important. Maintaining current markets and expanding into newer markets is school, but she had dreams of being paramount,” he said. a dancer in New York and his own In fact, when frustrated farmers buttonhole him to ask what they’re getting

WHEAT LIFE DECEMBER 2018 43 WL WGC REPORTS

He also gave kudos to the staff, calling them “one of the best you could ever work with,” while singling out WGC CEO Glen Squires for special praise. “He’s a workaholic and a nice guy, a combination that is hard to pull off, but through his efforts, he has put Eastern Washington’s wheat industry at the forefront of every major issue both nationally and internationally,” he said. Claassen said his son is interested in coming back to the farm, and he’s beginning to think about retirement in two or three years, but his version of that eventuality does not include “folding the tent.” From his hospital board position, he said he’s learned that as a general rule, most people still have good health and all the wheels still turning for about 10 years after 65. He plans to take ad- As Derek Sandison (second from left), director of the Washington State vantage of that timeline by playing more golf, snow and Department of Agriculture, looks on, Steve Claassen signs a wheat purchase memorandum of understanding with representatives of water skiing and spending time with his grandchildren, Taiwan. watching them as their lives unfold. In addition to Claassen, the WGC’s Nov. 20 meeting from the assessment they pay on each bushel of grain was also Dana Herron’s last. New commissioners will be they produce, it’s marketing Claassen talks about first. announced in January. “If we didn’t have the assessment support that funds the teams that go out and move our commodity, we wouldn’t be anywhere. Our markets just would not be there,” he said. The assessment also pays for research, and Claassen said there’s certainly plenty of challenges ahead for the next generation of farmers in that regard. He is particularly worried about weed resistance and the lack of new chemicals in the pipeline. As a Washington State University alum (class of 1973), he also commends breeders who leverage WGC funding to address an array of agronomic issues with better varieties.

WASHINGTON GRAIN COMMISSION WASHINGTON Claassen urges the younger generation to get involved in the grain commission, but he warned the investment is more than five meetings a year. “There’s a commitment there, and you shouldn’t consider it if you can’t be committed all the way, which has happened a few times during my tenure. Unless you can be fully engaged, you miss the boat,” he said. What a person takes away from the experience, however, is priceless. It’s not just what you learn about in terms of the wheat industry and all that goes on behind the scenes, he said. It’s developing relationships with the other commissioners. There’s phenomenal opportunities. “Everybody on the board is so engaged with the industry. You are learning something whenever you are around these other committed commissioners. You really absorb their knowledge by sitting around the board Working on a combine in the summer heat is Steve Claassen’s briar patch, table,” he said. a place that feels like home.

44 WHEAT LIFE DECEMBER 2018 WGC REPORTS WL Seventy seasons of service The Western Wheat Quality Lab becomes a septuagenarian

By Craig Morris and David Bolingbroke The earliest study of wheat quality conduct- Interest in the baking quality of wheat is ed at WSC was completed by professor R.W. as old as agriculture itself, but the ability to Thatcher. As he stated in a 1907 publication, quantify and research methods to improve it only a minor amount of wheat produced in are of a more recent vintage. Washington was consumed by its citizens. As a result, the majority was exported and had In the U.S., the revolution in technology, to “...compete with grain from other wheat- transportation and industrialization in the Craig Morris, producing countries. In order to command a director, Western latter half of the 1800s brought about a keen

satisfactory market, it must be at least equal in WASHINGTON COMMISSION GRAIN Wheat Quality Lab interest to better understand wheat qual- quality to the other wheats which are offered ity and to improve it through breeding and for sale.” Thatcher’s study included the variet- selection. The discovery of Mendel’s laws of ies Fife, Red Russian, Genesee Giant, Gold genetics—“rediscovered” by Washington State Coin and Turkey Red, among others. Analyses College (WSC) professor and wheat breeder William Jasper Spillman—more or less coin- included many of the measures we still use cided with the invention and development of today: test weight, protein content, milling, the steel roller mill, know-how that turned gluten content and bread baking. the centuries-old process of stone milling into Around the same time (beginning in 1908), David Bolingbroke, a highly efficient, industrialized process. The the USDA, in cooperation with the North Washington State University history 1884 Annual Report of the U.S. Department Dakota Agricultural Experiment Station, per- Ph.D. candidate of Agriculture (USDA) included a detailed formed milling and baking studies on wheat analysis of this relatively new roller milling samples collected across America. In 1917, this “gradual reduction” process. activity was moved to Washington, D.C., due

An every other year event, a tour and workshop of the Western Wheat Quality Lab brings together farmers, industry and staff to participate in a hands-on understanding of the science conducted at the lab. At the 2016 event, individuals represented Washington, Idaho and Oregon. The next event will be held in June 2020.

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probably to the need to support the United States Grain Standards Act of 1916. In the late 1930s, this function of the USDA was decen- tralized, and two labs, the Federal Soft Wheat Quality Lab and the Hard Winter Wheat Quality Lab, were established in Wooster, Ohio, and Manhattan, Kan., respec- tively. Eventually, sentiment grew that Pacific Northwest farmers needed a wheat quality lab of their own, focused on the particular types of wheat and environments found here. In 1943, the Pacific Northwest Crop Improvement Association (PNCIA) was established by the region’s farmers. Although farmers began to reap the benefits of a collaborative relationship with the USDA and agronomists at the region’s land-grant universities, they still lacked the research expertise and effective quality testing necessary to increase production yields in their fields. Orville Vogel, a USDA employee based at Washington State College, had already been in Pullman for several years—mostly focused on helping to breed disease- Technicians at the Western Wheat Quality Lab measure gluten strength resistant wheat—when the federal government allocated by blowing bubbles of dough. Other tests might look at kernel hardness, funding for a wheat quality lab as part of the Flannagan- the extensibility of dough and protein quality and quantity. Hope Act, or the Research and Marketing Act of 1946. The following year, the Washington State Legislature also provided funds for Washington State College to use on joint projects with the USDA. Although it’s not clear, it’s possible a portion of these funds also supported the newly established Western Wheat Quality Lab (WWQL). Many years later when Vogel was interviewed, he re- marked that the lab’s opening was a joint effort between the USDA, the college, grower organizations, PNCIA and the Oregon Wheat Growers League (OWGL). The WWQL

WASHINGTON GRAIN COMMISSION WASHINGTON was the first of its kind in the American West and prom- ised to serve as an important resource for both wheat breeders like Vogel and farmers across the region. Shortly after allocating funds for the quality lab, the USDA brought in Dr. Mark Barmore, known as a serious- minded midwesterner, to head it. Barmore assembled staff and equipment, and by the spring of 1948, the lab was ready to begin milling and analyzing wheat samples to determine their quality. One initial complication was acquiring a miller with the right expertise. Ed Seeborg was the man Vogel—and probably local growers wanted—but the Tacoma native didn’t have a college degree, and the USDA wouldn’t hire him. Vogel recommended Seeborg because he felt his experiences as a miller outweighed his lack of educational training, remarking that “...It is true that he has only two years of Testing how different varieties of wheat perform in end-user products is college, but to me his 15 or more years of experience in only part of the mission of the Western Wheat Quality Lab.

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In a 1965 letter nominating the WWQL for a USDA Superior Service Award, Vogel doled out high praise for the work the lab had accomplished since opening 17 years before. He wrote that “...the high milling and baking qualities of new Pacific Northwest wheats resulted largely from the ingenious and skillful testing services and from the effective liaison between wheat breeders and processors, which had been provided by the

laboratory personnel.” WASHINGTON COMMISSION GRAIN Despite the accolades, in 1966, the federal government nearly shut down the WWQL as part of a reduction of agricultural research funds. Alerted to the lab’s impend- ing closure, the region’s congres- The Western Wheat Quality Lab has their own mill, which they use for testing how different wheat sional delegation was asked by varieties mill. They also produce their own flour for testing. farmers and others to oppose the measure. A few months later, the fund reduction plan failed to pass our own area is worth a darn sight more than two years of college.” To solve in the House. the problem, the OWGL pitched in to pay his salary for the first couple years until he had taken enough courses to meet the USDA’s requirements. The WWQL’s current director, Craig F. Morris, has overseen the Choosing a local miller exemplifies the significant role local and regional -ef forts played into the WWQL’s creation. The WWQL not only needed to service lab’s work for the past 30 years. a specific region and the particular type of wheat grown here (soft white), it Surrounded by a sea of societal also needed workers who had experience with local wheats and connections change, the mission of the lab re- to the wheat farmers supporting the endeavor. mains essentially the same as when it was established. The same stan- The PNCIA felt that the WWQL was highly beneficial to regional farmers. dard cookies are baked to test flour In 1948, their field secretary, Robert O. Fletcher, offered the organization’s quality, and the lab’s technicians “whole-hearted support” for the lab. Two years later, in a report, he noted that remain busy researching how to the lab was “...undoubtedly the key project to the improvement of wheats from improve quality. After having com- a quality standpoint and is a tremendous aid to the agronomists in locating pleted the 2017 crop milling and high quality strains early in the breeding program.” He continued his praise, baking analyses, the lab celebrated saying that the lab was “truly a service to the states of Oregon, Washington 70 seasons of service. and Idaho.” At the time, the lab operated with a budget of just under $43,000. That was not an insignificant sum, having the same buying power in 2018 as Craig Morris is director of the more than $450,000. Western Wheat Quality Lab, and David Bolingbroke is a history Ph.D. The process of testing and milling wheats sped up as a result of the WWQL’s candidate at Washington State establishment. Vogel mentioned the role of new equipment like a micro-mill University. Research assistance was and the creation of the standardized cookie bake still used today for testing provided by Ujwala Ganjyal. Several of quality. With the help of the lab, Vogel tested the quality of the semidwarf the sources used were obtained through soft white wheat he developed, Gaines. Upon commercial release in the 1960s, Gaines became famous for its record-producing yields. Washington State the Washington State University University agronomist Rodney Bertramson mentioned how Barmore advised Library’s Manuscripts, Archives and he and Vogel to be cautious pertaining to Gaines’ release because of its poor Special Collections. milling qualities. Bertramson said he liked to call Barmore their “conscience.”

WHEAT LIFE DECEMBER 2018 47 48 WASHINGTON GRAIN COMMISSION WHEAT LIFE volume. year’s last to meet just export challenged be we will year. Ithink this wheat exports USDA concerning analysts or some other the either as optimistic not as Iam result, a wars. As ongoing tariff of the a result we face as challenges export current the without occurred over-estimates previous 2). (Figure years wheat marketing These four last of the November three in ume in vol year export marketing over-estimated however, noting, worth USDA that has USDA the hit can number. export It is USDA’s forecast. export current would going to we hit if are normally be where we behind percent 30 almost and year-ago volumes export behind percent about 20 year, wethis were running mid-November Through year. marketing current of the half second the entering pace that wheat, well we behind and are of bushels 901we shipped only million 1,year (June 2017, May 31, through 2018), years. Last crop past two of the each year comparedmid-November to this through shipments export cumulative 1shows Figure estimate. current to the close come quickly—to significantly—and to improve need will ever, activity export bushels. 1,025 million of November, as year June 1and ing sits at market the into coming bushels million of 925 estimate initial their from increased 2018/19the actually year has marketing for forecast export Their weeks. coming to fail meetU.S. exports USDA outlook W Disappointing export numbers to date numbers export Disappointing believe we still analysts Some market over, year half how marketing With the WASHINGTON COMMISSION GRAIN

DECEMBER 2018 HEAT up significantly in the the in up significantly pick will wheat exports to believe U.S.continues (USDA)of Agriculture Fortenbery T.By Randall The U.S. Department - - - likely to stay in place until the agreement is ratified. Given the political ratified. political is the Given agreement the place to stay in until likely are trade Mexico. restrictions presidency in The current the in change a be also will to Democratic there Republican control, and from shifted of next first the year.have then, will U.S. By of House Representatives before the agreement on the action taking Senate notdoes the anticipate Canada. Mexico and both in legislatures well as as Congress, to Mexico. However, ratified toby be needs trade still agreement the volumes export (NAFTA), future concerning optimistic to be areason as (USMCA), Free Trade America North to replace designed the Agreement negotiated U.S.-Mexico-Canada recently have to Agreement the pointed 2017/18,tomer in about off 26 are on percent ayear-over-year Some basis. to ayear ago.pared Most importantly, to Mexico, cus largest our exports year earlier.year a from of percent at exports 34 only were sitting continent to the exports year-over-year.down significantly mid-November, Through U.S. wheat years. recent in increasing been had actually for shipments counted about total wheat of and 5percent our exports, ac has we Historically, at have all. no wheat shipped China to China year,compared to last to shipments Taiwan while 23 percent, and off are U.S. customers. Asian to about Japantant wheat off 2percent are exports down to some most are shipments of impor our Oceana, and continent compared to where we were ayear ago wheat Asian in to shipments the up slightly buyers. currently we are important While our all with timate USDA current the year and last es pace off compared to both currently the or evenregion world.of country to a single not confined are are We Figure 1: U.S. cumulative wheat exports* W As of this writing, Sen. Mitch McConnell (R-Ken.) McConnell Mitch Sen. he writing, indicated has ofAs this U.S. exports to the Western Hemisphere are off about off WesternU.S. 24 are to Hemisphere the com percent exports are to Asia,shipments Africa as to us not nearly important While as

* Each year is slightly below the final USDA export number because the graphs do not include exports of wheat products wheat of exports include not do graphs the because number export USDA final the below slightly is year * Each million bushels 1000 1200 200 400 600 800 0

June

July ATCH

Aug

Sept 2016/2017

Oct

Nov 2017/2018

Dec 2018/2019

Jan

Feb

Mar

Apr

May - - - - - WHEAT WATCH WL

Figure1400 2: U.S wheat exports White wheat shipments to both Africa (Nigeria is our only real white wheat 1200 buyer there) and North America are down ? compared to a year ago. Most signifi- 1000 cantly, white wheat exports to Mexico are off more than 80 percent compared to a 800 year ago. Despite white wheat exports running 600 below year-ago levels and well behind the pace we would expect to meet the current 400 USDA estimate for the 2018/19 marketing year, they are still doing well compared 200 to other recent marketing years. Figure 3 shows cumulative white wheat exports 0 WASHINGTON COMMISSION GRAIN 2014/15 2015/16 2016/17 2017/18 2018/19 this year compared to several previous November Export Foreast Final Export Volume wheat marketing years. While the picture is encouraging, one potential challenge Figure 3: U.S cumulative white wheat exports* going forward may come from pulling

180 out of the Trans-Pacific Partnership (TPP). That revised agreement (the 160 Comprehensive and Progressive Trans- 140 Pacific Partnership) has been ratified by

120 enough of the remaining 11 countries that it will go into effect on Dec. 30 this year. 100 Without the passage of a free trade agree- 80 ment between the U.S. and the Asian million bushels countries in TPP, we will face additional 60 export challenges shipping to Japan, 40 Vietnam, South Korea and other Asian

20 countries. The good news is that the administration has announced we will be 0 entering a bilateral trade agreement with Oct Apr Jan Mar Feb Dec Aug Sep July Nov May June

2014/15 2015/16 2016/17 2017/18 2018/19 Japan that could provide us competitive * Each year is slightly below the final USDA estimate because the graphs do not include exports of wheat products access to their market compared to other TPP wheat export countries (primarily Australia and Canada). changes coming, it is possible that the agreement will actually not pass Unless we start to see improvement in all three legislatures, but even if it does, it may be too little too late to the pace of U.S. wheat exports in the next have a significant impact on U.S. wheat exports for the 2018/19 market- few weeks, I believe it will be difficult ing year. for market prices to improve much over White wheat export shipments through mid-November totaled about the next couple of months. There is some 67 million bushels, compared to a USDA forecast for a total of 220 million price optimism around production issues bushels exported for the full marketing year. The current estimate for in other parts of the world (Australia and 2018/19 is about 14 percent higher than actual white wheat shipments Russia for example), but I believe over the last year, but similar to the all wheat export picture. We are currently next few weeks, U.S. markets will be more running about 8 percent behind last year’s pace, and nowhere near focused on U.S. export opportunities then where we would normally be to hit USDA’s current marketing year global production issues. forecast. Randy Fortenbery holds the Thomas B. On the positive side, white wheat exports to Japan are running well Mick Endowed Chair in Grain Economics at ahead of last year’s volumes, and increases have also been experienced Washington State University. He received for shipments to Indonesia and the Philippines. However, these are partly his Ph.D. in Agricultural Economics from the offset by a reduction in South Korean purchases compared to last year. University of Illinois-Urbana/Champaign.

WHEAT LIFE DECEMBER 2018 49 WL FEATURE Evergreen state’s Egypt Instead of ancient pyramids, there’s fields of wheat as far as the eye can see. Instead of the Nile, there’s the Columbia River. | By Heidi Scott

It is hard to say why the little community 15 miles north of Davenport, Wash., is called Egypt. Some residents believe Egypt was the last name of the first post officer. Others think it was chosen because the area looked the way early settlers imagined the country of Egypt to look like. Perhaps they saw the distant Mount Lilienthal range and thought it looked like the Great Pyramids. Rodney Reinbold, who grew up there, wonders if early Lutheran settlers randomly chose the name out of the Bible. “I think maybe they didn’t realize it was a geologically significant place. It was just an imaginary part of the Kingdom of God,” he said. Regardless, Egypt grew into a charming community with a rich history of unity and compassion. One group of early settlers came from the Black Forest region in Germany. After the Prussian War, a farmer passed in front of the church, was moved by the county. named Matthias Reinbold believed his family would Suddenly, the church was facing the wrong direction. The have a better life in America. He told his 14 children that Egypt community came together to lift the church, pour the best place to farm was near the convergence of the a new foundation with a basement, turn the whole thing Columbia and Spokane rivers. He wasn’t wrong. By some around and set it back down. accounts, top soil in Egypt once measured as much as 30 Donald F. Reinbold, one of the few remaining third-gen- inches deep. Today hundreds of Reinbolds attribute their eration Reinbolds, was a part of that undertaking. “I was American citizenship to three brothers who first came: one of the younger guys, so I had to do all the ‘high work.’ Andrew, Simon and Jacob. They were joined by other I climbed up on the roof and the steeple. The old farmers relatives until a total of 27 Reinbold farms worked the rich were a lot smarter than us young guys and stayed on the Egypt soil. ground.” “When people learned you were a Reinbold, they always Families took great pride in going to church every week. asked how were you related, and it was tough to answer. “The men wore ties and fedora hats. They regularly Since Matthias had four wives (three died from small pox bought new suits. They looked good. Women were and childbirth), we were all related somehow,” Rodney dressed to the nines. Young women were slam-dunk gor- said. geous. Going to church was a big deal,” Rodney remem- A highly religious family, the first order of business for bered. His brother, Orlin Reinbold, added, “We thought it the Reinbolds was to establish the church. According to a was the center of the universe.” family historian, eight members gathered in 1890 with the Reverend Paul Hein in the home of Andrew Reinbold to The church served as backdrop for major life events, organize the Christ Lutheran Church. Services were held including baptisms, marriages and funerals. The church in that home for a number of years until Will Reinbold, provided a place of comfort in the most difficult of times. the youngest of Matthias’ sons to immigrate, donated land In 1908, 18-year-old Jay Barnhart drowned in the Spokane to build a church. The treasured building that was con- River. His obituary gives a glimpse into the way the com- structed there became the spiritual and social heart of the munity operated: community. “The alarm was immediately given, and the sawmill located Those living in Egypt in the 1950s remember when near the scene of the accident was shut down, and the entire crew the church was turned. The old road, which originally turned out and united in the effort to recover the body.”

50 WHEAT LIFE DECEMBER 2018 FEATURE WL

A group stands in front of the Egypt Store and Post Office located in Egypt, Wash. The store and post office were run by Jack Moore from 1895 until 1899 when W.G. Duncan took over. Photographer and date taken are unknown. Photo courtesy of the Lincoln County Historical Society. (lch0042, washingtonruralheritage.org)

Ralph and Frank Moore (sons of Willis D. Moore) are shown harvesting wheat with a four-horse team. One is gathering bundles of cut wheat and stacking it in the fields in vertical “shocks.” Exact date is not known; some time between 1910 and 1928. Photographer unknown. Photo courtesy of the Davenport Public Library. (lcca0002, washingtonruralheritage.org)

WHEAT LIFE DECEMBER 2018 51 WL FEATURE

took many tractors to hook up the belts. They’d shut down for an hour to eat lunch and then get back to work. In those hard days of farming, it took teamwork,” Dean said. Team work was needed year round. After grain harvest came butchering. The men travelled place to place to make sure everyone had the help they needed. Dean was a part of that. “We didn’t have refrigerators, so we had to keep the meat cold in the wintertime, where you could hang it outside and keep it frozen. If we got a warm spell in January, families had to can like crazy to save the meat. Nothing got thrown away. It was all used,” he said. “I never realized how great it was until one year, I was working for some people out of the area during harvest. I drove around the field and saw smoke. The neighboring wheat field was on fire, and a combine was sitting right there. The boss came over asked me why I had stopped working. I said ‘That wheat field is on fire, and that combine needs to be moved.’ He didn’t lift a finger to help, and that combine burned up. That would never happen in Egypt.” That spirit of cooperation extended to all spheres of life. When phone lines were first brought in, homes were connected by party line. Children were taught from a young The Egypt Lutheran Church before it was turned around in 1957 when the age how to distinguish the special signal indicating an highway was rerouted. The church was built in 1906. Photographer and date emergency. Karen Conrad Caisse remembered, “We were taken are unknown. Photo courtesy of the Lincoln County Historical Society. (lch0043, washingtonruralheritage.org) taught as children that if there was an emergency, we were to crank five long rings, our version of 911. Everyone would answer their phones and come help. The whole The surrounding community joined in the search, and community was on the same party line in the beginning. Jay’s body was recovered after several hours. After his As a standard courtesy, we did not talk on the phone funeral at the church, 35 teams of horses followed the pro- around noon, so when the men came in from the fields cession to his final resting place. Near the church, the North Star Grange Hall was arguably the second most important part of the community. Regular meetings were a staple of life in Egypt, along with dances every other weekend. It also had the largest junior Grange of anywhere in the state. Siblings Diane Martin and Dean Reinbold enjoyed being Junior Grangers. “We went to Grange and did a lot of fun stuff. Of course we also went to church. Seemed like we always had something to do,” Diane said. As with small farming communities, people built relationships as they worked together.

“Everyone thrashed the grain with big Today, weekly services are still held at the Christ Lutheran Church in Egypt. The church also functions thrashers that went from farm to farm. It as a community center. Photo by Heidi Scott.

52 WHEAT LIFE DECEMBER 2018 FEATURE WL and had to order a part, they had the phone free. At other times, you certainly didn’t say anything you did not want everyone to know about!” Farmers also grew close as they worked for the national good. As always, farming was critical during war time. Karen said, “Nobody left during WWII. They were frozen into their position as farmers. You could only leave if you had a brother or sister who could keep the farm. We had to have that wheat!” That sense of significance did not quickly fade. “My dad and the other Reinbolds W.W. Moore’s store at Egypt, Wash. Photographer and date taken are unknown. Photo courtesy of the felt like they were really important,” Lincoln County Historical Society. (lch0044, washingtonruralheritage.org) Orlin Reinbold said. “They believed the amount of wheat being raised there had a major effect on the world ‘Well, we go to Grange, if you want to come.’ He agreed, and when we got there, wheat market.” everyone was lined up to meet him because word had spread. ‘Hey everyone, Local farmers benefitted greatly Karen’s dating a new guy!’ I began introducing him by saying, ‘I want you to when the grain elevator was con- meet Herman and Beulah.’ My husband was raised to be very formal, so he structed in 1956, sparing them the said, ‘Oh, you can’t call them Herman and Buelah.’ So I said, ‘I’d like you to meet countless truckloads they had to Mr. and Mrs. Reinbold, and this is Mr. and Mrs. Reinbold, and this is Mr. and drive all the way to Davenport. Mrs. Reinbold. See, that’s why we say, meet Herman and Beulah!’ My husband But that long drive was not spared thought it was great!” on the children. In the very early Karen’s family, the Conrads, decided to build a new home around 1958. They days, young people in Egypt could planned to pour the concrete foundation themselves with just one hired man to attend up to 8th grade in one of help. Word got out, and just as they began to mix and pour the concrete, people two, one-room schoolhouses taught started showing up. by local mothers. Eventually, those “Farmers turned up with mixers and wheelbarrows and worked all day,” closed, and all the school children Karen said. “All of a sudden, they were just popping up everywhere. I don’t were sent to Davenport. Daily bus remember how many, but it was a huge representation of the community that rides took about an hour each way. came to help us. It was wonderful!” “That’s pretty tough on kids as Debbie Whiteside Graedel described Egypt as an, “Andy Griffith life, an Opie young as six to be confined to that childhood. We would play barefoot in the hay, and we all had our animals and bus seat, but it formed a tremendous chores.” But the magic didn’t last forever. Through the years, young people grew sense of community. We knew each up, graduated and started families of their own. Some stayed on the family other intimately,” Rodney said. Orlin farm, but many left. The nature of farming changed. added, “I think I learned more on “As things became more modernized, fewer of us wanted to be farmers, so the the school bus than I did in school.” population diminished,” Steve Whiteside said. “Many of my generation wanted For many, those relationships felt to go to college and do something different. Farms were sold to other farmers. more like family than friends. Farms became larger and fewer. It just sort of died off. There is just a handful of Karen explained how the close- my generation left there now. Ten maybe, but not much more.” ness impressed one outsider, her The air in Egypt is no longer filled every week with voices and music from the Boston-raised husband. “I met my Grange. The post office is long gone, and the schoolhouses have been repur- husband stationed at Fairchild Air posed. But through the years and the changes, the little Christ Lutheran Church Force Base. He asked what we do still sits as a gem in the center of the community, facing the county road with on a Saturday night. I told him, pride and welcoming visitors to come and enjoy the good life.

WHEAT LIFE DECEMBER 2018 53 THE BOTTOM LINE How the new tax law affects farm C corporations By Larissa Zeiler, CPA is only available to pass-through entities, including S cor- Leffel, Otis & Warwick, P.S. porations, partnerships and estates, as well as individuals. The Tax Cuts and Jobs Act (TCJA), signed on Dec. 22, Corporations are not eligible for the deduction. This may 2017, is the largest overhaul to the U.S. tax code in more be one more reason to shift income away from the farm than 30 years. With it comes sweeping changes and stra- corporation and onto the personal tax return. tegic tax planning opportunities available to agricultural Tax Planning Strategies producers. The TCJA has presented farmers and their tax advisors Tax Rates with new tax planning opportunities and a modifica- Perhaps the most impactful change is to income tax rates tion in how the typical farm C corporation is used. The C at both the corporate and personal level. In a nutshell, corporation can remain an important piece in the farming there has been a significant increase in corporate tax rates structure, as a means to minimize FICA taxes and take ad- at lower income levels, and a significant decrease in per- vantage of tax-free fringe benefits. However, the recent tax sonal income tax rates. The TCJA eliminated the graduat- law changes now place additional emphasis on distribut- ed tax bracket structure for corporations, replacing it with ing any extra income to the individual level where wealth a flat 21 percent tax rate. For most typical farm corpora- can be more effectively accumulated. tions falling within the old 15 percent tax bracket, the new Fringe Benefits. Farm C corporations may deduct living changes could mean a 40 percent increase in corporate tax. expenses such as groceries, on-farm housing and utilities, In light of the new tax rate changes, the previous tax medical expenses and health insurance. These are effec- planning strategy of capturing farm income at low corpo- tively tax-free income and should be fully utilized as part rate rates may need to be reconsidered. With the corporate of the tax-planning strategy. tax rate increase and personal tax rate decrease, it now Rental Income. Another tax planning approach is to makes sense to shift more income from the corporation to shift more income out of the corporation to the personal the personal tax return. This opens the door for new plan- tax return in the form of rents. This can be in the form ning strategies. of land, buildings and/or equipment rents. The benefit Section 199A Deduction is twofold. It allows us to transfer income out of the 21 percent corporate tax rate and utilize lower personal The Domestic Production Activities Deduction (DPAD) tax rates of 10 to 12 percent. Second, while we are still previously available to farmers and awaiting final interpretation on the cooperatives has been repealed. regulations, it appears that most rental Fortunately, a new Qualified Business income is eligible for the QBI deduc- Income (QBI) deduction has been Sponsored by the tion on the personal return. This can enacted in its place. The QBI deduction Agricultural Marketing result in significant tax savings! is a 20 percent deduction on qualified & Management Commodity Wages. Commodity business income, which includes net Organization. farm and rental income, subject to wages have been used for decades as a limitations. For example, a farmer hav- For more information and means to pay corporate officer wages ing $100,000 of qualified business in- a schedule of classes visit while avoiding self-employment taxes. come from farming would have a QBI wawg.org/ammo-workshops/ They now play an important role as a deduction of $20,000 available to offset vehicle to transfer income out of the taxable income. There are deduction corporation and tax it at historically limitations, but these typically only low personal rates. For farm C corpo- come into play at taxable income levels rations that have typically pushed crop greater than $315,000 for married inventory into the following year, the taxpayers ($157,500 for single taxpay- next few years may be an opportune ers). Unlike DPAD, the QBI deduction time to bleed off some of this crop

54 WHEAT LIFE DECEMBER 2018 inventory carryover in the form of a commodity wage and Knolee Epeience Deication utilize these historic rates. One caveat: commodity wages do not qualify for the QBI deduction. O ITH EERIENCE e Have Ove Yeas o Comine A Epeience Change Entity Structure. Recall that the QBI deduc- - We sell and manage arms and ranches and have an extensive tion is not available to C corporations. The question arises list o cash buyers - Do you need to know the current value o your arm or ranch whether it would be beneficial to convert the C corporation - Do you need a current market evaluation into an S corporation, which is eligible for the QBI deduc- Daton A alla alla A tion. This may make sense if the corporation’s income level 5 ain St. 17 N. Colville St. is high, thus yielding a potentially large QBI deduction. 50--00 50-5-055 iew our arm listings at bluemountainrealtors.com In many cases, however, the value of the tax-free fringe benefits available to a farm C corporation outweigh the S corporation’s QBI deduction. We must also keep in mind the ever-changing political climate. Section 199A may be temporary, and it may be premature to change an entity’s structure in order to take advantage of a temporary deduction. The TCJA presents new tax savings opportunities for farmers and historically low personal tax rates. Planning, laine ickleaupt let Mak ant with the help of a tax advisor prior to the end of the tax year, will be paramount to successfully reaping the ben- As experienced arm real estate experts efits of the new tax law. we have established this partnership to manage arm and ranch properties in both Washington and daho. Larissa Zeiler grew up on her family’s dryland wheat farm near Odessa, Wash. A Whitworth University graduate, she has been LAINE ICKELHAT MARK RANT N Colville St blainbnwm.co marknwm.co Walla Walla WA employed with Leffel, Otis & Warwick, P.S. for the past eight 50-50-50 50-50-106 50-5-056 years. Larissa can be reached at (509) 982-2922 or by email at [email protected]. For more information, please notestamlancom visit leffelotiswarwick.com.

WHEAT LIFE DECEMBER 2018 55 Raelynn Smith (19 months) can hardly wait for a ride with her dad, Matthew, on the family farm in North Franklin county. Photo by Lauren Smith. Preston Hatfield (1) in Pasco. Photo by Ashley Hatfield.

The 2018 harvest crew on the Robert Plucker Farm in Touchet. Photo by Derey Edmonds. Your wheat life...

Ross Wiswall (2) in awe during harvest in Franklin County. Photo by Tara Wiswall.

Colter Johnson (3½) and Codee Jo Johnson (1½) back when the wheat was still standing. The Johnsons farm in Walla Walla. Photo by Beth Stafford Photography.

Email pictures to [email protected]. Include location, names of all people appearing in the Near Pomeroy. Photo by Makayla Brown. picture and ages of all children. HAPPENINGS

All dates and times are subject to change. Foundation Building, Ritzville, Wash. for the whole family. Deer Park, Wash. Please verify event before heading out. (509) 659-0610, wawg.org deerparkchamber.com DECEMBER 2018 8-9 2019 CROPPING SYSTEMS 19-20 BAVARIAN ICE FEST. Snow CONFERENCE. Three Rivers Convention sculptures, games and fireworks. 1 HOMETOWN CHRISTMAS. Santa, Center in Kennewick, Wash. Registration Leavenworth, Wash. leavenworth.org parade, shopping. Waitsburg, Wash. and more info at directseed.org/events/ cityofwaitsburg.com annual-conference/ FEBRUARY 2019 7-9 CHRISTMAS LIGHTING FESTIVAL. 16-17 2019 NORTHWEST HAY EXPO. 5-7 SPOKANE AG EXPO. The largest Sleigh rides, Christmas songs, carolers, Three Rivers Convention Center, farm machinery show in the Inland roasted chestnuts. Leavenworth, Wash. Kennewick, Wash. For more information Northwest. More than 250 agriculture leavenworth.org visit wa-hay.org/convention suppliers and service companies all under one roof. Held at the Spokane 11 WAWG BOARD MEETING. Meeting 18-27 LAKE CHELAN WINTERFEST. An Convention Center, Spokane, Wash. starts at 10 a.m. at Washington Wheat event for the whole family! Winterfest is greaterspokane.org/ag-expo/ Foundation Building, Ritzville, Wash. two weekends of ice sculptures, music, (509) 659-0610, wawg.org wine tasting, ale tasting, kids activities, 12 WAWG BOARD MEETING. Meeting starts at 10 a.m. at Washington Wheat 11-12 WSU WHEAT ACADEMY. Increase polar bear splash, beach bonfire, fire- Foundation Building, Ritzville, Wash. your knowledge of wheat and barley works and more! Chelan, Wash. (509) 659-0610, wawg.org management. Limited to 75 participants. lakechelan.com/winterfest/ Pullman, Wash. smallgrains.wsu.edu 18-19 CASCADIA GRAINS 14-16 CHRISTMAS LIGHTING CONFERENCE. Connecting growers, Submissions FESTIVAL. Sleigh rides, carolers, music, processors, brokers, investors and poli- Listings must be received by the roasted chestnuts. Leavenworth, Wash. cymakers across the grain value chain. 10th of each month for the next Olympia, Wash. Registration required. leavenworth.org month’s Wheat Life. Email listings cascadiagrains.com to [email protected]. Include date, JANUARY 2019 19 WINTERFEST. Experience the fun and time and location, plus contact 8 WAWG BOARD MEETING. Meeting excitement of winter games in Deer Park! info and a short description. starts at 10 a.m. at Washington Wheat A community celebration with events Rock Steel Structures, Inc. Offering quality you can depend on: Grain Storage For Farms or Warehouses Farm Storage ! Hopper Bottom Bins Grain Handling • GrainGrain BinBin AccessoriesAccessories Water Storage Tanks ! Aeration Systems Handling Equipment www.SCAFCO.com

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Water Storage Tanks • Aeration Systems Dealer Info Hopper Bottom Bins • Catwalks, Ladders and Towers Contact Scott Rock 509-764-9700 [email protected] Moses Lake, Wash.

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