There is a lot of change happening in world trade right now and organizations like the US Wheat Associates are working to ensure that American interests are being upheld. Associate Farm Director for Radio Oklahoma Network, Carson Horn, had the opportunity to speak to Alan Tracy, president of the US Wheat Associates, during the 2016 Oklahoma Wheat Review hosted by the Oklahoma Wheat Commission, about his message to wheat farmers across the country.
“The US continues to get some value out of our quality,” Tracy said. “I know that’s a hard message today when the farmers are looking at lower protein crops and big discounts, but it does make a difference in the long run - and it’s going to change.”
Tracy outlined two threats facing the American wheat industry that he says his organization is working tirelessly to overcome. Fairly obvious, he says, is the growth in Russia, making it clear they are not going anywhere.
“Last year, Russia was the world’s largest exporter,” Tracy said, “but they actually in terms of dollar value, were only fifth. It was really quite a remarkable point.”
In an effort to outmaneuver Russia’s position in the marketplace, Tracy says the US Wheat Associates is shifting its resources away from the Middle East and towards Latin America and Asia where Russia doesn’t reach. He says these regions are actually paying more there for our product.
The other threat, Tracy says, is a little less obvious. He asserts the biggest trade distortion going on currently is coming, not from competitors, but from middle income developing countries. He says they are beginning to reach levels of wealth that allow them to utilize export subsidies. And they are using them in the most unfair ways Tracy says. To combat these unfair practices, the US Wheat Associates are working to foster studies to show the harm that it is causing through all levels of the industry.
“These things alone are costing US producers $650 million at the farm gate,” Tracy said. “That’s pretty substantial.”
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