62 



Besides the harvest problems, we end up with scab, head blight, 

 fungal infections that we have, and we have been talking about for 

 the last 2 hours here. 



Besides the scab and the vomitoxin, we end up with a marketing 

 problem. I know several producers in my area that had made-over 

 contracts for profitable levels of wheat at $5 plus a bushel; and by 

 the time they harvested it, with the standards that were imposed 

 at that time, looking at having to buy their contracts back because 

 they were unable to meet the standards of 40 to 50 cents a bushel 

 and not being able to fit the contracts — now, with the standards 

 being changed — wouldn't be able to fit, which caused a tremendous 

 hardship for many producers. 



The marketing is the thing I would like to stress beyond my writ- 

 ten statement. I do have further written testimony from my local 

 cooperative elevator of the problems that they incurred this past 

 month with the marketing of a 26-car unit train, and I would like 

 to submit some copies of that as an attachment to my prepared 

 statement. 



Mr. Johnson. Without objection, it will be received into the 

 record. We will stay another minute or two. That is the last call 

 for a vote. It is a fairly important vote on the floor. Mr. Peterson 

 is going to be coming back, and we are going to minimize the lost 

 time here because we realize that everybody is on time constraints. 

 And we want the testimony to be taken into the record. 



I think maybe with that, with that second bell, that what I will 

 do is recess the subcommittee right now, and I will authorize Mr. 

 Peterson, when he comes back, to begin chairing the subcommittee. 

 Then Mr. Emerson and I will be back and others as well. 



We want to minimize the loss of time but still take care of this 

 vote. So if you will bear with us, we will recess the subcommittee 

 now for a very short period of time until we can come back after 

 this vote. 



Thank you. 



[Recess taken.] 



Mr. Peterson [assuming chair]. The subcommittee will come 

 back to order. 



Mr. Rix. 



Mr. Rix. Thank you, Mr. Chairman. 



As I just got through submitting additional testimony from a 

 local cooperative elevator of the marketing problems we incurred 

 this past month with marketing our Spring Wheat, I would like to 

 quickly summarize for your information and for the benefit of the 

 record what actually happened and what we are looking at. 



This is a situation where our cooperative marketed — or loaded a 

 26-car unit train of wheat. The actual bids quoted that day were 

 from $4.81 to $5.21 a bushel of No. 1 Spring Wheat. And of this 

 unit train, there was 22 cars of 1992 crop wheat, four cars of 1993 

 wheat. 



The opening bid was actually 30 cents less than a low, which was 

 $4.51 per bushel. Our cooperative rejected the bid, and they ended 

 up with getting a bid of $4.96 contingent on good vomitoxin levels. 

 These results — they had results done on a five-car composite — came 

 back as negative. 



