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Dave Torgerson (left) and Bryan Hest will be explaining the new proposed Minnesota wheat check-off program at a series of Minnesota Association of Wheat Grower district meetings.

For the first time in 30 years, Minnesota wheat growers are being asked to increase the check-off funds they pay for wheat research, with hopes of increasing wheat yields in the state.

During the last 30 years the bushels per acre increase for wheat, as well as the dollars per acre has lagged considerably behind corn and soybeans, according to Dave Torgerson, executive director of the 900-member Minnesota Association of Wheat Growers. As a result, acres planted to wheat in the state has declined dramatically, falling prey to corn and soybean acreage.

As a way of combating this downward trend in wheat acres, the Minnesota Association of Wheat Growers (MAWG) is proposing that the check-off rate be increased from a volume-based one cent per bushel to a value-based one-half of one percent of the market value of the crop being sold.

“The idea behind this proposal came out of the need for more profitable wheat,” said Bryan Hest, president of MAWG and a wheat producer from Perley, Minn. “That increased profitability is going to come through yield and that's going to come through research. And with these additional check-off funds we will be able to increase these research projects and parlay this into something big.”

“We've looked at many different ways to keep wheat profitable and keep it viable in Minnesota, so we can keep it in our rotations and can be a profitable in our enterprises,” Torgerson added. “And the one thing that comes to the forefront is to try to increase the yields for wheat; it's one of the things we can control. Prices and input costs are certainly harder factors to control.

Referring to a graph prepared by MAWG (figure 1), Torgerson noted how wheat yield improvement has lagged behind those increases by corn and soybeans, and by using a price of $6 wheat, $9 soybeans and $4 corn, how the income generated by wheat per acre hasn't kept pace with soybeans and corn.

“Part of that disparity is the amount of investment going into corn and soybean research is much larger than wheat,” Torgerson said. “Wheat relies on public funding for much of the research, with a few private companies doing some breeding research as well. Part of the problem is wheat producers can seed back, or do what is called ‘brown bagging' each year for seed, while corn and soybean growers are required to purchase new seed each year and the tech fee that's sold with that seed is used to further research efforts for those crops.”

By increasing the check-off amount, MAWG has set a goal to increase wheat yields by 27 percent over the next 15 years by expanding research that will result in higher yielding varieties and improving production practices. A higher check-off rate will double the capacity of the University of Minnesota's public breeding programs, Torgerson said.

The extra funds would also be used to create a parallel breeding program at the U of M that would develop high yielding varieties under intensive disease management, collaborate on a regional winter wheat breeding program, allow for expanded production research and assist other wheat breeding programs.

The public wheat breeding program in Minnesota is run by Dr. Jim Anderson at the U of M. But, according to Torgerson, with the limited dollars now available, he isn't able to do all of the different crosses or conduct field trials at as many different locations as he would like to.

“By doubling the capacity of his breeding program, he knows there is a better probability of finding higher yielding varieties of wheat that will be more profitable for growers,” Torgerson said. “But right now the lack of funds is limiting that research.”

Looking at the dollars and cents of the check-off proposal, Hest used an example of a farmer hauling in 1000 bushels of wheat to the elevator. Under the present check-off the fund would receive a penny a bushel, or $10 from that load of wheat. Under the plan being proposed, using a price of $6 per bushel, each bushel of wheat would be assessed a check-off fee of 3 cents per bushel for a total of $30 for that load of wheat.

Applying the math to the goal of increasing wheat production by 27 percent over the next 15 years instead of an assumed 10 percent trend increase, growers should see an additional 60 bushels per acre over the 15-year period and using a $6 per bushel price would result in an additional $360 per acre, Torgerson explained.

Meanwhile, the increased check-off rate would cost about an additional dollar per year or $15 in total. These figures would suggest an extra $360 in return from a $15 investment.

Check-off dollars paid in the past have greatly benefited the wheat industry in Minnesota, according to Hest, with the work on scab resistance being a prime example.

“The varieties I am growing today are much more resistant (to scab) than the best varieties we had in 1993 and 94,” he said. “Some of the varieties we have today, even if you don't spray them (with fungicide) even in a relatively tough year, are still performing quite well.”

Torgerson also noted that past research funds have allowed wheat breeders in the region to develop new, improved varieties of wheat while maintaining the high quality spring wheat is known for, such as high gluten content and protein.

More detailed information on the new check-off proposal will be presented at a series of MAWG district meetings held on Nov. 4-Nov. 6 at eight locations around the state. Those that have grown wheat in either 2007 and/or 2008 will then be able to vote on the change to the wheat check-off program during the Prairie Grains Conference, which will be held at the Alerus Center in Grand Forks, N.D., Dec. 10-11.

Voting will take place at the Minnesota Department of Agriculture voting station located in the hallway just outside the ballrooms. Voting hours on Dec. 10 is 3 p.m. to 6 p.m. and from 8 a.m. to 1:30 p.m. on Dec. 11. Torgerson noted that only one vote is permitted per farm entity, and the proposal will pass if more than 50 percent of those voting cast a yes vote.

Following is the schedule for the district informational meetings:

Tuesday, Nov. 4

Argyle - American Legion, 8:30-10:30 a.m.

Greenbush - Anton Steak House (lunch), 12-2:30 p.m.

Thief River Falls - Black Cat, 4:30-6:30 p.m.

Wednesday, Nov. 5

Crookston - NWROC Ag Research Bldg, 8:30-10:30 a.m.

Mahnomen - Shooting Star Casino (lunch), 12-2:30 p.m.

Moorhead - Courtyard by Marriott, 4:30-6:30 p.m.

Thursday, Nov. 6

Fergus Falls - Best Western/Big Wood EC, 8:30-10:30 a.m.

Morris - Prairie Inn (lunch), 12-2:30 p.m.

The program at each of these district meetings, according to Torgerson, will focus on the details of the proposed referendum, as far as details of the program and goals; a report on yield results from 2008; highlights from the U or M fungicide trials conducted in 2008; and a report from Dr. Jim Anderson on how additional funding will result in an accelerated wheat breeding program that will bring more profit to those growing wheat.

As president of MAWG, Hest encourages growers to learn more about this proposal at their district meeting and then vote at the Prairie Grains Conference in early December.

Comments »

elden j. elseth wrote on Nov 30, 2008 11:19 AM:

" I am not necessarily opposed to the check off increase - but I am opposed to the manner in which the vote is taken. The Minnesota Dept. of Ag. is holding a vote only in North Dakota for a plan which will affect all Minnesota Wheat Growers. I believe there is a serious question of whether this violates Minnesota's Open Meeting Law. (Holding a meeting outside the territorial boundaries of Minnesota.) Further it seems patently unfair because only a fraction of wheat growers are able to attend this conference. "

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