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Senior Contributor

KCBOT and protein levels

The KCBOT board is recommending to its membership to institute a quality component in the wheat contract.  I mentioned this in an earlier post.  To date, the grain and feed association is opposed to it.  Its members include grain shippers and others along the grain pipeline. 

 

Quality is not a given component that can be controlled.  Protein levels are primarily a function of weather events, interacting with soil fertility and less of a management control issue.  Excessive rain or the lack of it at critical points in time effects the outcome more than whether the producer manages his fertility program properly. 

 

In that light, a producer never knows for certain whether he is producing feed wheat or high protein wheat until these factors are already set in stone.  So, why should the KCBOT institute minimum standards that rewards and punishes according to an unknown event?

 

The primary argument the board uses for this is to encourage convergence.  I don't buy it.

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4 Replies
Veteran Advisor

Re: KCBOT and protein levels

Don't know many producers who would put a drill in the field expecting to grow a medium quality product---maybe some focus should be put on price base between wheat belt and KC

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Senior Contributor

Re: KCBOT and protein levels

Price base?  Are you referring to the basis?  or?

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Senior Contributor

Re: KCBOT and protein levels

The idea that the NFGA would be opposed to grain standards for wheat quality on deliveries against contracts would simply be an outrage. We have severe dockage schedules here in the PNW, beyond just the simple federal grades for #1, 2, 3 and sample grade wheat. Grade '2 and better' are standard quality for a basic contract. The buyers make money on the dockage schedules. If they want no standard for deliveries on contracts then it would be more than a double standard, it would be an unfair economic advantage in the market.

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Senior Contributor

Re: KCBOT and protein levels

However, I would rather if there are grading standards to adhere to, there should be a premium schedule for quality that's above specifications as well.  You and I both know that's where they also make their money, by capturing high protein grain for grade price.

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