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4 CapitalPress.com July 21, 2017 Wheat industry voices goals for NAFTA talks By MATTHEW WEAVER Capital Press U.S. wheat growers are urging the Trump administration to main- tain the current advantages of the North American Free Trade Agree- ment and level the playing field with Canada and Mexico in other areas. The Trump administration an- nounced the objectives for NAFTA renegotiations July 17. “After months of unknown, it is refreshing to see the proposed NAFTA objectives identify ag- riculture as one of the sectors that have benefited from the de- cades-old trade deal, something we have reiterated since the beginning of renegotiation rumors,” said Da- vid Schemm, president of the Na- tional Association of Wheat Grow- ers and a Sandy Springs, Kan., wheat farmer. Trump’s objectives also identify agriculture as an area to maintain and improve market access and maintain duty-free market access, Schemm said. “This is crucial for wheat growers that have seen significant gain in the Mexican market since NAFTA was implemented and the tariff barriers lifted,” he said. Mexico was the No. 1 export market for U.S. wheat farmers last year, and is consistently one of the top five markets for the industry. “Our priority is not to do any harm to the relationships and the current situation,” said Steve Mer- cer, vice president of communica- tions for U.S. Wheat Associates. The renegotiation provides a opportunity for the U.S. to work with Canada on moving wheat across borders, Mercer said. “Wheat moves both ways, but Canadian wheat is rated as if it were produced in the United States and put into the system,” Mercer said. “Our wheat sold at an eleva- tor in Canada has to be within their variety registration and is rated as a feed wheat. There’s no incentive for our folks to sell at a local ele- vator across the board, whereas the Canadians have a lot more oppor- tunity.” Canadian law would have to be changed, Mercer said. U.S. Wheat representatives have spoken with Canadian representatives. Western Canadian wheat growers hope to see a similar reciprocity, he said. Schemm and Mercer also wel- comed the potential for modern sanitary and phytosanitary mea- sures. “We really see this as a way to update these science-based mea- sures with like-minded countries and potentially serve as the gold standard for future trade deals,” Schemm said. “The goals specif- ically call out improving com- munications, consultation and cooperation on items like new technologies.” For wheat growers looking to technology to improve yield, qual- ity and other factors, “it is vital that our trading partners accept the tools we use to achieve top quality products,” Schemm added. Schemm said NAWG will con- tinue to engage with the U.S. gov- ernment and Congress through the renegotiating process. The objectives continue Trump’s decision to renegotiate NAFTA and not withdraw from the deal, Mercer said. “If we stay on that line, we’re on a good path,” he said. “We’ll continue to monitor through our contacts and certainly express our concern or pleasure when it hap- pens.” Trade representative lists NAFTA objectives for ag Staff and wire report The Trump administration on Monday released its objectives in the renegotiation of the North Amer- ican Free Trade Agreement between the United States, Canada and Mex- ico. The president said Monday in revising the pact he hopes to cut the $64 billion trade deficit with Mexico. In addition to reducing the trade deficit, the administration wants to insert a chapter on the digital econ- omy into the deal. It also wants to strengthen labor and environmental obligations, as well as amending the rules of origin so that more of the products traded come from the Unit- ed States and North America. The new NAFTA objectives, a requirement to begin talks on up- dating the agreement in the next 30 days, contain the first specifics for a Trump administration that has made bold promises on trade. Trump has pledged to recover factory jobs and boost wages by crafting new trade deals. Supporters note that NAFTA en- abled companies to charge cheaper prices for products that range from cars to vacuum cleaners, helping many U.S. consumers. The U.S. Trade Representative’s 17-page document lists the following objectives for agriculture: • Maintain existing reciprocal du- ty-free market access for agricultural goods. • Expand competitive market opportunities for U.S. agricultural goods in NAFTA countries, substan- tially equivalent to the competitive opportunities afforded foreign ex- ports into the U.S. market, by reduc- ing or eliminating remaining tariffs. Dario Lopez-Mills/Associated Press File In this Aug. 31, 2016, photo, then presidential nominee Donald Trump walks with Mexico President Enrique Pena Nieto at the end of their joint statement in Mexico City. • Seek to eliminate non-tariff barriers to U.S. agricultural exports including discriminatory barriers, re- strictive administration of tariff rate quotas, other unjustified measures that unfairly limit access to markets for U.S. goods, such as cross subsi- dization, price discrimination, and price undercutting. • Provide reasonable adjustment periods for U.S. import sensitive ag- ricultural products, engaging in close consultation with Congress on such products before initiating tariff re- duction negotiations. • Promote greater regulatory com- patibility to reduce burdens associat- ed with unnecessary differences in regulation, including through regula- tory cooperation where appropriate. The Mexican government said in a statement that the administration’s NAFTA objectives will give greater clarity to the negotiations. Chrystia Freeland, Canada’s min- ister of foreign affairs, said, “NAFTA supports millions of middle class jobs” across North America and Can- ada welcomes the opportunity to add “progressive, free and fair approach- es” to the pact. Despite the report, it’s still not clear exactly how Trump will rene- gotiate NAFTA to reduce the trade deficit, said Phil Levy, a senior fel- low for the Chicago Council on Global Affairs and a business profes- sor at Northwestern University. “There’s no detail,” Levy said. “There’s nothing in there where you could say, this is how we get rid of the trade deficit.” When NAFTA went into effect in 1994, the United States ran a small trade surplus in goods with Mexico and a slight deficit with Canada. But the size of the deficits steadily began to increase afterward. By last year, the United States ran a $64 billion trade deficit with Mexico and a nearly $11 billion gap with Canada. Neither trade deficit is near its peak level. The trade defi- cit with Canada hit a high in 2008, while the trade gap with Mexico nearly reached $75 billion in 2007. Wheat prices ‘bounce around’ as harvest gets underway By MATTHEW WEAVER Capital Press Sean Ellis/Capital Press Growers and industry representatives inspect a field trial designed to help farmers find better solutions to control onion thrips July 12 during a field day at Oregon State University’s agricultural experiment station near Ontario. Onion thrips population soaring in Idaho, Oregon Capital Press ONTARIO, Ore. — Onion thrips were late to arrive in the Treasure Valley of Idaho and Oregon this year, delayed by a harsh winter and wet spring. But temperatures have been well above normal this month and the onion pest’s popula- tion is exploding as a result. The average high temperature in Ontario has exceeded 100 degrees eight times in July al- ready. “The heat’s making things explode,” said Nyssa grower Paul Skeen, president of the Malheur County Onion Grow- ers Association. Onion thrips can cause feeding damage. They are also a vector for the Iris Yellow Spot Virus, which can signifi- cantly reduce yields of the bulb onions grown in the region. LEGAL PUBLIC NOTICE The Oregon Soil and Water Conservation Commission (SWCC) will hold its regular quarterly meeting on Thursday, August 10, 2017, from 12:00 p.m. to 4:30 p.m. The regular quarterly meeting will be held at the Jackson Soil and Water Conservation District office, 89 Alder Street, Central Point, OR, 97502. The meeting agenda covers SWCC reports, advisor reports, Soil and Water Conservation District programs and funding, Agriculture Water Quality Management Program updates, and other agenda items. The Oregon Department of Agriculture complies with the Americans with Disabilities Act (ADA). If you need special accommodations to participate in this meeting, please contact Sandi Hiatt at (503) 986-4704, at least 72 hours prior to the meeting. 29-1/#4 “They were a little late get- ting in but they have made up for it,” said Stuart Reitz, an Oregon State University crop- ping systems extension agent in Ontario. “With these higher temperatures, the populations are really going crazy. We’re starting to see a lot higher numbers.” Virus pressure is just start- ing and has been detected in a few commercial fields recent- ly, Reitz said. “We haven’t seen much (vi- rus) around the area. Yet. It’s probably coming,” he said. While the timing of the pest’s appearance in the val- ley can vary from year to year, they are an annual headache for Treasure Valley onion farmers. There are no effective bi- ological controls for onion thrips, so that leaves the use of insecticides as growers’ only option to control them, Reitz said. The thrips problem has only gotten worse for growers over the years, Skeen said. “When I started farm- LEGAL CHERRY AVENUE STORAGE 2680 Cherry Ave. NE Salem, OR 97301 (503) 399-7454 AUCTION Sat., July 29th • 10 a.m. • Unit 22 - John F O’Neal • Unit 41 - Kimberly Rivas • Unit 46 - Altheria Rabb • Unit 77 - Garrett Fistere • Unit 140 - Eric or Jordan Hagen • Unit 161 - Jamie and or Tawnya Newman • Unit 166 - Stephen Shuck Cherry Avenue Storage reserves the right to refuse any and all bids legal-28-2-1/#4 By SEAN ELLIS ing here 45 years ago, if we sprayed four times in a sea- son, that was a lot,” he said. “Now, it’s not uncommon to spray seven or eight times.” Onion grower groups in the region are helping fund a field trial that has been over- seen by Reitz that seeks solu- tions to the thrips problem. One of the main goals of the trial is to help growers find the right mix of insecticide treatments that allows them to spray as little as possible. Researchers are rotat- ing chemistries and using them at different times of the season to try to find the right combination for thrips control. It costs between $20 and $100 an acre to spray for thrips, depending on which chemical is used, so reducing the number of times a grower has to spray can save a lot of money, Reitz said. OSU researchers recom- mend not overusing any one chemistry to prevent resis- tance in thrips. “You have to manage them in the season but you also have to look at the longer term picture and that’s why we’re really stressing rotating chemistries so you don’t have resistance building up,” Reitz said. MILTON-FREEWATER, Ore. — Farmer Nathan Rea stood in his field of dark northern spring wheat, slated for harvest later in July. Prices for the wheat class have taken off in recent weeks, in response to hot and dry weather in Montana, South Dakota and North Da- kota. “Unfortunately for them,” Rea said. “The positive side is we’re getting a much-needed increase in the price of wheat. The DNS price is helping to pull up some of the others. We’re hopeful soft white will get some legs here.” On the Portland market, DNS ranged from $7.93 to $9.53 per bushel last week, depending on protein content. Soft white wheat ranged from $5.21 to $5.45 per bushel. Both are up more than 20 per- cent this year. But futures prices trended lower last week compared to the previous week, according to USDA. Chicago wheat fu- tures were 27.25 cents lower at $5.12 per bushel, Kansas City wheat futures were 31 cents lower at $5.16 per bush- el and Minneapolis wheat fu- tures were 19.5 cents lower at $7.50 per bushel. “We’re going to see this thing bounce around,” said Dan Steiner, grain merchan- diser for Morrow County Grain Growers in Boardman, Ore. He said Minneapolis numbers are “rock-solid” be- cause of high demand and crop problems in the region. Since the end of May, grain speculators have bought 805 million bushels of Chi- cago wheat futures, Steiner said. They’re now 235 mil- lion bushels long — owning more than they need to sell — the biggest long position in three years. Speculators on the Kansas City market are long 362 million bushels, the LEGAL LEGAL PURSUANT TO ORS CHAPTER 98 Notice is hereby given that the following vehicle will be sold, for cash to the highest bidder, on 7/25/2017. The sale will be held at 10:00am by PARKING ENFORCEMENT SERVICES 1768 13TH ST SE, SALEM, OR PURSUANT TO ORS CHAPTER 87 Notice is hereby given that the following vehicle will be sold, for cash to the highest bidder, on 7/26/2017. The sale will be held at 10:00am by HILLYER’S STAYTON FORD 11361 MILL CREEK RD SE, AUMSVILLE, OR 2013 CHEV MALIBU VIN = 1G11B5SA4DF197798 Amount due on lien $3124.00 Reputed owner(s) JAVIER MARTINEZ AMERICREDIT FINANCIAL 2001 FORD F150 P/U VIN = 1FTNW21F51ED77155 Amount due on lien $2104.47 Reputed owner(s) BURTON BODDA EQUITABLE FINANCE Legal-28-2-1/#4 Legal-28-2-1/#4 Capital Press File Weather problems in the Upper Midwest, Canada and Australia have led to an increase in wheat prices. biggest long position in more than a decade, Steiner said. “If they’re long and the price goes up, they make money,” he said. “If they’re long and the price goes down, ooh, sad faces.” Steiner expects a lot of movement in the market. “It’s going to take time to work this through the sys- tem,” he said. “The specula- tors came in and went from a reasonable short position to very large long positions as far as Chicago and Kansas City are concerned. There’s going to have to be some un- winding from this rally.” Soft white wheat prices still need to go higher to cover farmers’ cost of production, Rea, the farmer, said. He’d like to see well above $5 per bushel locally, and ideally $6 per bushel, noting that it costs farmers to ship their wheat from rural grain elevators to Portland for export to over- seas markets. It costs about 60 cents a bushel to transport wheat to export facilities. “This is much better than where we’ve been,” Rea said. “We’re going to have high yields this year, but the price has just been killing us. Peo- ple talk about knowing your cost of production and not selling for anything below that, but that’s not been pos- sible the last couple of years.” It’s unclear what the final losses will be in Montana and the Dakotas. Other possible problem spots include com- peting wheat-producing re- gions in the Canadian Prairies and Australia, Steiner said. “It’s a slow developing picture,” Steiner said. “That’s one of the problems with a drought. It’s not like a tornado or hailstorm that comes whip- ping through and you know the results as soon as the sun comes back out.” Australian wheat produc- tion is expected to be down 30 percent from last year, from 33.5 million metric tons to 23.5 million metric tons, which will also affect soft white wheat prices, Steiner said. Soft white wheat will like- ly maintain its value, Steiner said. Hot and dry conditions will continue in the Northern Plains and Canadian Prairies, further impacting the DNS crop. “It’s going to be tight — we’re going to see a small crop, no doubt about it,” said Darin Newsom, senior ana- lyst for DTN in Omaha, Neb. “The market still looks like it wants to go higher. We hav- en’t found that price level yet where buying just shuts off.” As long as grain merchan- disers are struggling to find supplies, higher prices could continue, Newsom said. Grain speculators are driv- ing the market right now, Steiner said. He recommends farmers sell at least some of their wheat when prices are in the high $5 per bushel range and holding it when prices get lower. “In today’s environment, you’re probably going to be able to get somewhere be- tween $5.50 to $5.70 without too much trouble,” Steiner said.
