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Farm Bill - White Wheat Opportunities
President Bush recently signed the new farm bill which includes a provision that encourages producers to grow white wheat.
Larry Kepley, FDF Board Chairman, and other Kansans attended a meeting to help with the particulars of the white wheat provision in the bill. At the meeting, proposed regulations from attendees included 1) payments of $2.00/acre to help defer the extra cost of using certified seed (required); and 2) 20 cents extra per bushel produced—up to 60 bu/acre.
These incentives should help Great Plains farmers step into the future with white wheat!
A requirement for the $.20/bu. incentive is that you must have proof of a marketing arrangement that identity preserves white wheat. Marketing through either FDF or the Sullivan Grain Lakin Program will certainly satisfy this requirement.
FDF is one of Kansas’ largest dealers of certified white wheat seed! Through a network of seed distributors throughout central
and western Kansas, FDF will have available most varieties of white wheat seed. We have been in contact with Senator Pat Roberts office and they believe the regulations will be out in time for fall planting. We will continue to monitor the situation and will keep you posted!
This program is completely compatible with FDF production; JOIN FDF and do it the value added way!
To read more from the Farm Bill use this link: http://www.usda.gov/farmbill/
To read this Farm Bill: http://agriculture.senate.gov/Briefs/2002FarmBill/END02_380.pdf
(You will need Adobe Acrobat Reader to view this file - If you don't have it, click here for a free download)
Frequently Asked Questions:
The following questions are those most asked of the FDF Board of Directors. If you would like additional information, click here to contact the association office.
Question: How do I become a member of the Association?
Answer: You can buy or lease Closed Coop Stock shares from present members until the next stock offering. Just call 800-372-4422 or e-mail the FDF office - we can get you in contact with shareholders with shares for sale or lease. Note: You will also be required to purchase one share of Common Stock (value $100.00/share).
Question: Why did FDF convert to a closed cooperative?
Answer: FDF learned, after ten years of operating experience, that there were a few critical factors that impact the effort to generate more return for our producers. These factors include: an ongoing delivery commitment and obligation from our producer/members, adequate capitalization, qualification under the Capper Volstead Act and the ability to operate more as a business than as a community service. All of those factors were realized within the "defined-membership" or closed cooperative.
Question: Why should I even grow wheat today?
Answer: Wheat has been a major crop in Kansas for more than a century. Even in these times of commodity price pressure, it still makes sense, based on good farming practices that include crop rotation and crop diversification, to plant wheat along with other crops. Farming fundamentals have not changed. Furthermore, marketing and production of many of the alternative crops to wheat are not certainties either.
Question: Why should I grow white wheat?
Answer: Once a farmer has decided to plant hard winter wheat, they now have the option to plant red or white wheat. For the next few years, red wheat will probably continue to be the predominate commodity wheat sold. White wheat, on the other hand, is an emerging new wheat class. If handled properly in a system that produces and maintains quality and preserves identity, FDF's experience offers a marketing advantage.
Question: If I can get a premium for my wheat, when and how much?
Answer: It is impossible to predict the future, but we can study the past and draw some reasonable conclusions from that experience. Historically, FDF producers have realized a premium for their wheat over the commodity price. FDF is more committed than ever to the notion of producing a product, not a crop. To this end, the process takes longer, therefore the payback takes longer. The process does not end when the grain is harvested. The majority of the best quality grain must then be moved further up the marketing chain to become a value-added ingredient or premium quality product. The time elapsed is based on how far up the chain it goes, and remember, people eat food all year long. The FDF system does not pay a premium until it is earned. Therefore, the system is designed to pay out quarterly over a 15-month period, thereby allowing the opportunity for the maximum return. The "how much," which is based on several factors (which we think is an advantage) is impossible to predict.