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As I mentioned before, some farmers in Minnesota have turned 

 to burning their failed wheat acreage to clear ground for next year. 

 This is one of the most difficult things that a farmer will ever have 

 to do. And I gleaned a picture from one of the local agricultural 

 publications showing the burning of a field. 



Panic over scab and vomitoxin hit the grain marketing system 

 early during the harvesting season and some elevators stopped tak- 

 ing wheat all together. Early on there were highly variable grain 

 discounts at grain elevators. There were discounts for total dam- 

 aged kernels, including scab and for the vomitoxin. Lighter kernels 

 caused by the scab generally resulted in wheat with lower test 

 weight. 



Thus, farmers were also subject to discounts for low test weight 

 grain. And there were many different combinations of what dif- 

 ferent elevators would pay, and it was a real mess. Guys didn't 

 know where to go, and elevator managers had probably one of the 

 most hair-graying years of their life. 



Growers with infected wheat generally could expect a price in the 

 $2 range at best. And those with severely infected grain faced se- 

 vere discounts. I know for a fact that a former board member of 

 our association received a bid for some of his infected wheat that 

 was 64 cents per bushel. 



Farmers who had a commitment to sell wheat under forward 

 contracts were hit the hardest by grain discounts because they 

 could not deliver proper quality. 



Grain discounts are less variable now, particularly after the Food 

 and Drug Administration liberalized its vomitoxin guidelines. That 

 didn't help price much, however. 



Wheat prices and protein premiums dropped after the market 

 perceived that more grain would enter marketing channels follow- 

 ing the FDA decision. Discounts for vomitoxin have dropped, al- 

 though some elevators have kept some discounts in place to protect 

 themselves against an influx of infected wheat. 



Since scab, vomitoxin, and test weight are interrelated, we ques- 

 tion why grain was triple discounted. Vomitoxin discounts must be 

 particularly questioned, considering that discounts were based on 

 decade-old studies, suggested guidelines, not firm laws, and ques- 

 tionable testing procedures. 



Extension plant pathologists at North Dakota State University 

 and the University of Minnesota admit that vomitoxin tests are not 

 entirely accurate, and that the hurried manner in which the tests 

 began meant that some inspectors may have not been adequately 

 trained in vomitoxin testing procedures. Consider also that if 

 blending and milling process reduces or eliminates the vomitoxin 

 levels in grain, then why discount it. 



We appreciate the availability of Federal crop insurance and 

 quality loss adjustments under the Federal disaster assistance pro- 

 gram, but under Federal crop insurance, price adjustments were 

 not consistent. Pricing mechanisms and adjustment levels for 

 losses differed in areas. 



There is no definite direction as to what determines No. 2 grade 

 wheat, for example, or determining sample grade wheat value. 



