Agricultural News
Shrunken and Broken Proposal a 'Very Bad Deal for the Oklahoma Wheat Farmer'
Fri, 18 May 2012 17:04:05 CDT
The Grain Inspection Packers and Stockyards Administration has proposed that the grade limit on shrunken and broken kernels for U.S. No. 1 wheat be reduced from three percent to two percent. Under the same proposal, the grade limit for U.S. No. 2 wheat would be reduced from five percent to four percent.
In a letter to Oklahoma's secretary of agriculture and to Oklahoma agriculture organizations, Joe Neal Hampton, president of the Oklahoma Grain and Feed Association, argues that if this proposal is adopted it will severely damage the marketability of Oklahoma-originated grain.
"Based on some analysis that I've done on rail cars shipped from various points over the last five years, it's going to make a huge impact on Oklahoma wheat farmers and grain industry."
Hampton said from 50 to 80 percent of the wheat shipped from Oklahoma would be dropped from No. 1 grade to No. 2 grade if this proposal goes into effect.
He said that there are not currently many elevators that segregate wheat based on the percentage of shrunken and broken because it generally runs three percent and under. If the new rule is adopted, elevators would have to begin routinely grading for shrunken and broken and docking the farmer for it.
"Shrunken and broken is pretty much an Oklahoma and northern Texas issue because of the weather," Hampton said. He said many producers in those areas had five days of hot dry winds earlier which resulted in shrunken berries. Such extreme weather conditions do not exist in other wheat producing regions of the country.
"We just in Oklahoma get hit with hot winds at the wrong time and it's beyond the producer's control and it's beyond the elevator's control. It's just a fact of where we live.
"The standard should be the same for everybody, and they shouldn't be penalizing one portion of the United States at the expense of the others."
Hampton said that he doesn't see how tightening the standard for shrunken and broken increases the quality or marketability of Oklahoma wheat.
"We just don't see how it's going to enhance our exports. We have not heard any of our foreign buyers out of the Gulf make any comment about shrunken and broken, so we just think this is going to be a very bad deal for the Oklahoma wheat farmer and the grain industry."
The GIPSA comment period on this proposed rule is open until June 11. Hampton said he is encouraging the other farm groups to submit their comments on the negative impact this would have on Oklahoma producers.
You can hear Ron Hays' full interview with Joe Neal Hampton by clicking on the LISTEN BAR at the bottom of the story.
This is the full text of Hampton's letter:
May 17, 2012
TO:
The Honorable Jim Reese, Secretary of Agriculture
Mike Spradling, Oklahoma Farm Bureau
Terry Detrick, American Farmers and Ranchers
Tim Bartram, Oklahoma Wheat Growers Assn
FROM: Joe Neal Hampton, President
RE: GIPSA PROPOSAL TO CHANGE THE SHRUNKEN AND BROKEN ASPECT OF U.S. WHEAT GRADING
STANDARDS
Gentlemen,
The Federal Grain Inspection Packers and Stockyards Administration (GIPSA) is proposing that the grade limit on shrunken and broken kernels (S &B) for U.S. No. 1 wheat be reduced from the current 3 percent to 2 percent, while the grade limit for U.S. No.2 wheat would be reduced from the current 5 percent to 4 percent. This will basically mean that Oklahoma wheat farmers will be unable to produce much No. 1 grade if this change is adopted. This proposal severely damages Oklahoma originated grain's marketing potential and puts us at a competitive disadvantage to other HRW producing states. This proposed change will NOT increase Oklahoma export shipments out of the Gulf but may rather REDUCE them by increasing costs to make the new factor work. Here is why I say this:
Shrunken and Broken grades from Shipper A . . . March 2009 March 2010 . . . out of 1671 cars shipped, 1143 or 68%, had S & B numbers between 2 and 3% thus changing the grade from #1 to #2.
Shrunken and Broken grades from Shipper A . . . March 2010 March 2011 . . . on 3144 rail cars shipped, 2517 or 80% of the cars S & B count was between 2 and 3% thus changing the grade from #1 to #2.
Shrunken and Broken grades from Oklahoma Shipper A . . . March 2011 - March 2012 . . . of 2296 cars shipped, 1601 or 70%, had S & B count between 2 and 3%, thus changing their grade from #1 to #2.
Shrunken and Broken grades from Oklahoma Shipper B . . . March 2011 March 2012 . . . of 2408 cars shipped, 1228 or 51%, had S & B between 2 and 3%, thus changing their grade from #1 to #2.
Past three years data from Plains Grains Inc. shows that Oklahoma averages 20% higher S &B than the other 4 HRW producing states. In 2009, our number was 35% higher than the average. In 2011, it was 29.5% higher than the average. In 2010 it was right about at average.
Two samples of 2012 new crop wheat from SW Oklahoma had S & B between 2 and 3%.
S & B is an Oklahoma and North Texas issue. Always has been and probably always will be. More often than not, and it happened just this year, we get a few days of hot dry winds at the wrong time and we get S & B. It is not a production practice problem, but Mother Nature. It is very important the U.S. Grain Standards represent the entire United States and the blend of the entire crops and not penalize minor regional differences in grain production. Exports largely are a reflection of these blends.
I strongly urge you to make a comment to GIPSA in opposition to their proposed change by the June 11, 2012 deadline. Below is the address to send your comments:
Mail: Tess Butler, GIPSA,USDA, STOP 3642, 1400 Independence Avenue SW, Room 2530-B, Washington, DC 20250-3604. Fax: 202-690-2173. Click here to go to the federal government website and follow the instructions for submitting comments.
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