11/30/06 Changes for Australian Wheat Board

Farm and Ranch November 30, 2006 In the wake of a report finding the Australian Wheat Board paid from 200-300-million dollars in bribes and kickbacks to the Saddam Hussein Regime during the U.N.'s Oil for Food program, the wheat export monopoly says it will split into two entities. The AWB will separate the single desk wheat marketing system from the publicly traded grain trading, banking and farm operations. Australian Prime Minister John Howard has said he will make a recommendation December 5th on whether or not Australia should abandon its export monopoly system leading some to suggest the AWB's announcement is a pre-emptive strike. USDA officials were briefed this week on the Australian investigation findings and Agriculture Secretary Mike Johanns told reporters. Johanns: "There is some potential in Australia for a criminal process against certain individuals. Whether that will play out or not will happen in Australia." As for what the USDA can do here, Johanns had already announced what is called a debarment process that would not allow the U.S. unit of the Australian Wheat Board to use U.S. export credit programs. That process will now move forward but Johanns said that is as far as the USDA can take things. Johanns: "Now, Congress may look at this and say there is a need for a legislative approach. They certainly have a right to do that." And Senator Tom Harkin of Iowa, who will be the next Senate Ag Committee Chairman, has promised to further investigate the AWB. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.