64 



It does figure out for us dollarwise to be in our best interest, but 

 it is not $1 a bushel. And that is another point that I think that 

 this committee needs to address or the Department of Agriculture 

 when they are calculating deficiency payments. They need to take 

 that into consideration also. 



At this point I will close. You have my written testimonies; and 

 without being redundant, I will let someone else have the chair. 



[The prepared statement of Mr. Rix appears at the conclusion of 

 the hearing.] 



Mr. Peterson. Thank you very much, Mr. Rix. Your statement 

 will be made a part of the record, and we appreciate you being with 

 us today. 



Next we have from my district Pete Kappes, who is also rep- 

 resenting the National Wheat Growers. 



Welcome to Washington and summarize your statement or what- 

 ever you want to do. 



Mr. Kappes. Thank you very much, Mr. Chairman. 



STATEMENT OF PETE KAPPES, MEMBER, MINNESOTA 

 ASSOCIATION OF WHEAT GROWERS 



Mr. Kappes. Thank you for the opportunity to testify. My name 

 is Pete Kappes, and I farm near Ada, Minnesota; and I represent 

 the Minnesota Association of Wheat Growers, MAWG. 



The waterlogged, disease-burdened 1993 growing season may be 

 the biggest crisis to hit the Northern Plains wheat growers since 

 the 1988 drought which comes to mind, and even then there are 

 no price discounts for our production. 



This year we needed special equipment to get in the fields to har- 

 vest the wet, soggy ground, tracts; and in some cases the harvest 

 was completed with a matchbook. Many farmers were looking for- 

 ward to a good wheat crop in early July; however, rains during 

 flowering season in July resulted in severe scab, and the scab pro- 

 duced the vomitoxin. 



This year Spring Wheat production in Minnesota was estimated 

 at 86 million bushels earlier this month, which would be 38 percent 

 below last year's 137 million bushels. The average wheat yield in 

 Minnesota this year is estimated at 35 bushels per acre, compared 

 to a 50-bushel yield last year. We expect final wheat production 

 and average yields in Minnesota to slip even further than these es- 

 timates. 



Virtually all wheat in Minnesota was affected by scab and 

 vomitoxin to varying degrees. Some growers had minimal scab 

 damage, others had to zero out their wheat because of it. Some 

 growers had wheat that tested under two parts per million for 

 vomitoxin while others had double digit vomitoxin levels. 



The MAWG estimated last month the wheat yield losses of 30 

 percent from expected production will result in $130 million in 

 losses to wheat growers in Minnesota. 



Wheat quality discounts due to scab and vomitoxin will result in 

 an additional $130 million lost income to farmers. Total projected 

 wheat losses of $260 million are certain; and by the time additional 

 abandoned wheat acreage and quality discounts are added up, total 

 losses will likely exceed $300 million. 



