09/18/07 Grain embargoes on the minds of some

Farm and Ranch September 18, 2007 Could the historically tight world supplies of wheat, and all-time record high prices of wheat, result in a wheat export embargo by the United States? That's not a question just pulled out of thin air. Mick: "We've had some inquiries from the African continent from some countries there, "Will the United States impose an embargo that we have such tight world stocks and they are getting tighter in the United States?" Washington Grain Alliance CEO Tom Mick who says they are assuring customers that after President Jimmy Carter's grain embargo against the then Soviet Union, a law was enacted that prohibits agriculture from being singled out for embargoes. That may be the law but Mick says anything can happen, particularly in an election year. Although it didn't happen in the United States Mick refers to a recent newspaper story. Mick: "There was an article about the Italian consumers objecting the high price of durum. And that is because the world price is up. They import durum from the United States and Canada and they had to raise their pasta prices. I think there is a possibility there will discussions along these lines. I sincerely hope it doesn't because it would be devastating to the wheat industry. But it always raises its ugly head and we have to have arguments in place to counter it." In its recent newsletter, U.S. Wheat Associates, the export market development arm of the wheat industry, stated U.S. wheat supplies will not be withheld from the world market and pointed out that export taxes, used by some countries, are unconstitutional in the U.S. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.