RENO, Nevada Ñ An attempt to turn the U.S. wheat industry from a chorus into a solo act has fallen flat. But proponents of a merger plan that would see three associations become one entity say the fat lady has yet to sing.
The idea is to create a unified voice for the American wheat industry by combining the national grower group with a government lobby organization and the industry’s export promotion agency.
Board members of the National Association of Wheat Growers and the Wheat Export Trade Education Committee approved the proposal at a meeting of the three groups in Reno, Nevada, held Feb. 19-22.
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But the executive of U.S. Wheat Associates, the industry’s export arm, narrowly rejected the idea, failing to reach the two-thirds approval requirement by less than two percentage points.
Three of the association’s largest contributors used their considerable clout to defeat the amalgamation pitch in a weighted vote. Montana, North Dakota and Oklahoma, three states that provide a little more than one-third of the association’s total state funding, felt the merger would divert money from export promotion to other activities.
“Unfortunately some of the folks would have us spend more money for lobbying to get a bigger government cheque and not worry about the marketing,” said Dan DeBuff, vice-president of the Montana Wheat and Barley Committee.
“Us folks who work with the markets every day are very worried about that kind of philosophy.”
It all boils down to a struggle over money.
Total revenue for the proposed new organization would amount to $5.5 million, with $4 million coming from USW, $1.2 million from NAWG and $0.3 million from WETEC.
DeBuff said Montana doesn’t oppose wheat industry consolidation but wants the state wheat commissions that comprise U.S. Wheat Associates to remain in control of their producer check-off money.
Commissioners have taken an oath to spend that money on market development but since growers would control the majority of votes in the new organization he worries money would be diverted to lobbying efforts to get more subsidies.
NAWG chief executive officer Daren Coppock said the concerns of three U.S. states won’t be enough to block a deal that has been three years in the making. He thinks they will eventually fold under pressure from other states belonging to U.S. Wheat Associates.
“A critical mass of people at that board still want it to pass so I think it will come back.”
Coppock expects the consolidation proposal to be approved at USW’s semi-annual meeting in July where the wheat industry will finally achieve tighter co-ordination between its domestic and trade policy objectives.
Consolidation would give the group more clout in Washington, which could be a concern for Canadian growers. But there could be some benefits as well, said Coppock.
“From a Canadian farmer’s perspective it makes us a little more predictable and a little easier to work with.”
