100 



STATEMENT OF 



ROGER RIX, 



VICE PRESIDENT 



SOUTH DAKOTA WHEAT, INC. 



BEFORE THE SUBCOMMITTEE ON 

 GENERAL FARM COMMODITIES 



SEPTEMBER 28, 1993 



Mr. Chalman and Members of the Subconmittee. 



I an Roger Rlx, vice president of SD Wheat, Inc. and a member of 

 the National Association of Wheat Growers. I would like to express my 

 thanks to the committee for the opportunity to present testimony on 

 issues of great Importance to the wheat producers effected by this 

 year's disaster. 



The 1993 growing season began with a positive out-look, good stands 

 and stable weather could produce a bumper wheat harvest. Unfortunately, 

 cold, wet weather was provided by mother nature and by harvest time, 

 producers faced several hardships, some of which were yet unknown to 

 thea. 



The 1993 harvest was delayed due to slow maturity and fields too 

 wet to harvest. Producers were faced with fine windows of time where 

 cost efficiency and return from labor had to be weighed. 



Once able to harvest, another dilemma hit: scab or head blight, a 

 fungal infection, bad effected most wheat fields in the spring wheat 

 producing area of South Dakota. Scab effects the starch quantity and 

 quality thereby potentially reducing the zunount and consistency of the 

 final product. The percent of scab in the wheat fields was varied, 

 causing some producers to contemplate destruction of the wheat. 



In addition to the outbreak of scab, tests revealed levels of 

 voai toxin (produced by the fungus which causes scab). Vomitoxin levels 

 became an added concern to the marketability of the wheat. 



The presence of scab and vomitoxin caused the markets to go more 

 than just a little crazy. For several days , elevators in the north 

 east quarter of South Dakota stopped buying spring wheat altogether. 

 Farmers harvesting and planning to sell off the combine were stuck. 

 However, as the elevators began to resume their pvirchases of wheat, 

 farmers faced inconceivable discounts, ranging from $.25-$1.80 per 

 bushel. Many producers felt they would be better off destroying the 

 grain. Elevators were giving discounts for both scab percentage and 

 voaitoxin levels. In addition to the discounts, base price for 14% 

 protein spring %(heat would vary greatly from elevator to elevator. 



In an attempt to ride out the storm, producers harvested the %rheat 

 and stored it on the farm. Unfortunately for other producers, they did 

 not have storage capabilities and were forced to sell at the prices 

 offered or destroy the crop and look to crop insurance or disaster 

 assistance . 



