Wheat Scoop: Wheat Assessment Increases to 1.5 cents

 

KANSAS WHEAT SCOOP

FOR IMMEDIATE RELEASE:
Kansas Wheat Commission Approves Assessment Increase

The Kansas Wheat Commission has approved an increase to the wheat assessment, meaning that beginning Jan. 1, 2009, farmers will have a 1.5-cent per-bushel wheat “assessment” at the first point of sale. This is an increase of one-half-cent per bushel over the one-cent per bushel assessment, in place since 1996.

Although not required by state statute, the KWC is providing a comment period until Sept. 7, 2009. Wheat producers may call the KWC office at 1-866-75-WHEAT or e-mail [email protected] or send comments by mail to the Kansas Wheat Office at 217 Southwind Place, Manhattan, KS 66503.

The Kansas legislature approved an assessment authority increase – from 10 mills, to 20 mills - during the 2008 Legislative Session. The actual assessment increase will be from 10 mills to 15 mills – or from one penny, to one-and-a-half pennies, per bushel.

The assessment could generate an additional $1.2-1.4 million per year, depending upon the size of the annual wheat crop. The Kansas Wheat Commission is charged by state statute to use assessment investments for research, promotion and educational efforts.

“This money will primarily be used to enhance research and development for wheat,” said Dusti Fritz, chief executive officer for Kansas Wheat. “Research, including developing new varieties and incorporating new traits into wheat varieties, gives farmers more bang for their buck.”

For the past year, the Kansas Wheat Commission and Kansas Association of Wheat Growers have solicited input from farmers on the potential assessment authority increase. In a survey conducted last fall, farmers indicated that research was a top priority for their investment.

Kansas Wheat Commission chairman Dean Stoskopf, Hoisington, said the wheat assessment has not changed in 12 years; however, the KWC’s costs have increased dramatically. Meanwhile, state and federal support for wheat research have diminished drastically.

“Our state’s farmers stand ready to make the necessary commitment to ensure our research efforts continue and that they are innovative,” Stoskopf said.

At its annual meeting last week, the Kansas Association of Wheat Growers membership passed a resolution supporting the assessment increase.

In 1988, the Kansas Wheat Commission voted to raise the assessment collected to 7 mills; in 1996, the Commission voted to raise the collection to 10 mills.

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Kansas Wheat is the cooperative agreement between the Kansas Wheat Commission and the Kansas Association of Wheat Growers, with a common vision of “leaders in the adoption of profitable innovations for wheat.”