Wheat industry wants action in U.S. trade agenda

Farm and Ranch November 2, 2009 The U.S. wheat industry says it is sending an unequivocal message about the importance of agricultural trade to Congress and the Obama Administration. At their recent joint fall meeting the National Association of Wheat Growers and U.S. Wheat Associates adopted a resolution urging immediate ratification of the U.S./Columbia free trade agreement and said they will prioritize their efforts toward that end.

Dale Schuler, Montana grower and chairman of the Joint International Trade Committee, explains why an FTA with Columbia is so important.

Schuler: “Why is that important. Because buys about 700 million bushels of wheat from us every year. We have about 70% of that market. It is just a logical market. It is easy for us to move grain there from the West Coast and the Gulf Coast. There are very loyal customers, but at this point they have some very high tariff levels they can impose U.S. wheat.”

And U.S. export competitors like Canada, the E.U. and Argentina are also working on free trade agreements with Columbia.

Schuler: “If they get those agreements ratified we have a very good chance of losing that market because their products will enter Columbia duty free and ours will face the high duties, which will make our products more expensive and less attractive to them at that point.”

Schuler says the wheat industry will mount an effort in January on getting the Columbia trade agreement moving.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network.