78 



I got a real eye-opener myself when I started looking at this. I 

 will just close real quickly by saying that we really have quite an 

 amazing marketing system. If it weren't for the marketing system, 

 people with over five parts per million vomitoxin would be getting 

 zero for their wheat, and they are getting something for it. In fact, 

 they are getting a pretty historically decent price by historical 

 standards for five parts per million vomitoxin wheat, and for two 

 parts per million vomitoxin wheat they are getting very high 

 prices, if all of the other quality factors fall into the milling quality 

 category. 



I will close my statement right there, Mr. Chairman, and make 

 myself available for questions. 



[The prepared statement of Mr. Campbell appears at the conclu- 

 sion of the hearing.] 



Mr. Johnson. Thank you. 



Let me ask anyone who wants to respond whether there are dif- 

 ferences between the United States and the Canadian marketing 

 systems such that it encourages the importation of lower quality 

 grain into the United States. Does anybody see a problem there? 



Mr. Campbell. Well, on the vomitoxin specifically, the end user, 

 which we are not, but the end user is going to take the responsibil- 

 ity for testing for quality. So it doesn't really matter where it comes 

 from; the end use specs are a function of the product that is being 

 marketed, the end product. So, again, it is more a matter of price 

 than it is necessarily a quality distortion, if you will. 



Mr. Johnson. You don't see the Canadian Wheat Boards' dis- 

 counts as being so high that they have forced producers to opt out 

 of their obligations to the board in order to move their grain to the 

 United States, or the discounts are not as great for low quality 

 wheat? 



Mr. Campbell. They may, but I am not really qualified to say 

 whether that is true or not. 



Mr. Johnson. Mr. Keith, do you have any objection on that? 



Mr. Keith. I am not personally aware of what the Canadian 

 wheat discounts are for vomitoxin. 



Mr. Campbell. I think you are probably speaking of last year 

 when you probably had some varieties of wheat which they do not 

 want to export through the board, and those varieties may have 

 been sucked in, if you will, because of the board's higher quality 

 standards. But the value for that wheat would still be set in our 

 marketplace by the end user specs. 



Mr. Johnson. Mr. Pomeroy. 



Mr. Pomeroy. The end user specs on wheat will apply to what 

 an elevator is trying to market; is that correct? 



Mr. Campbell. Yes. 



Mr. Pomeroy. We don't require end user requirements of any 

 kind of Canadian wheat coming into this country; is that correct? 



Mr. Campbell. The end user does. 



Mr. Pomeroy. The end user does at the time it is commingled 

 with — it is in the county elevator, in the grain handling process 

 mixed with U.S. wheat? 



Mr. Campbell. Sure. 



