Three R's top list of big stories for Wheat in 2023: Railroad, Russia and Renewal - Nicole Berg

Paul Yeager: Hey everybody, its Paul Yeager welcome inside the MToM Show podcast studio. I'm Paul Yeager your host if you want to send me an email Paul.Yeager@iowapbs.ORG, we do get tips. Thank you, Ross. Always appreciate hearing from you. And if you have comments, send them my way. Or if you want to rate or leave comments wherever you get your podcasts. Cool with that. Every Tuesday, new episodes come out of this conversation-themed podcast. That's what we do. We talk with producers from around the globe. We're going to Washington State today we're going to talk to Nicole Berg. She's currently the president of the National Wheat Association. It is a policy arm that discusses, policy. So guess what we're going to do? We're going to discuss a little bit of policy. Nicole was actually on Market to Market without her even knowing. She was testifying in Washington DC a few weeks ago. That's how we found out about her, so we learned more about her operation and the family that is involved with growing wheat and corn in Washington State. That's what we're going to talk about this week on the MToM Show podcast.

 Alright, Nicole, if I had to look out your window right now and see is there anything green and growing around you? Are you just like everyone else in the West all dry?

Nicole Berg: We definitely are dry. We're coming out out of a drought. But we did have some some grateful rain this spring. And then we had some rain just in the last week or so. So things are kind of green enough in the dryland area. I do have irrigated as well. So the Bluegrass seed that we grow is up and ready to go for next year. So yeah, we're trying to wrap up planting and then wrapping up field corn harvest here at the farm.

Paul Yeager: What exact part of the state are you in?

Nicole Berg: So I am in South Central Washington State. I am like down by the Columbia River. So we have a irrigated farm which are we get the majority of our water from the Columbia River.

Paul Yeager: Is this home for you? Is this where you grew up?

Nicole Berg: It is where I grew up. I'm a fourth generation farmer, my grandpa. He came out west in 1934. We just looked that up. And I always wonder how was he sleeping on the train when he came out here because it's very sandy. We have about six inches of rainfall a year in the dryland area. That's why we kind of converted part of the farm into the, into the irrigated agriculture, which gives us a little bit more options in farming practices.

Paul Yeager: So you’re fourth generation you said.

Nicole Berg: I'm fourth generation I farm here with my dad and my two brothers. Right now I came back to the farm in '97. I mean, my two brothers came back to kind of convert it into from dryland wheat, it went back in the day was sheep, and then it went cattle, then went wheat, and now we're irrigated agriculture. So, dad, my dad always says, The most I've ever seen in farming was that, like ever done in farming or progressed, progression of farming was not really my grandpa, great grandpa, my grandpa, but it's it's your generation. Your generation is the one that has really changed the conversation of farming.

Paul Yeager: Why did you change?

Nicole Berg: Oh, well, it's so to be productive. I mean, we have to stay productive progressive. You know, I mean, the thought of using a computer to to drive your tractor alone, my grandpa would come in and like hit hit the thing with his cane and say, Hey, this thing's not driving, right. You're not eating enough dirt? You know, I mean, we have made a lot of strides in agriculture and technologies. And and so our farm has tried to stay progressive with that as well.

Paul Yeager   You said '97 is when you came back? Did you think before '97 That you would be on the farm?

Nicole Berg   No, I went to Washington State University got a degree in agricultural communications. And actually, Paul, I wanted to be you. So back in the day, and then I worked in the wine industry for a while. And then I came back to the farm when they decided to develop it and kind of take it to a next level. And so I wanted to be part of the team to do that.

Paul Yeager   And did you brothers come back at the same time?

Nicole Berg   Yes, we're all two years apart. So me and my second youngest, came back, and then the youngest, youngest, once he graduated from college, he went and worked out in for Novartis back in the day in Texas. And then he came back to the farm, but dad made us all go to college, and then we all at, at, he's like, You all didn't work out in the real world for a while, and then decide if you want to come back. And so we said, Okay, now this will do and so I worked out in the real world, and now I'm back here at the club.

Paul Yeager   Was there ever a moment when you were like, Yeah, I'm not coming back?

Nicole Berg   Um, well, yeah. When you're in high school, you're like, Oh, my God, there's a big world out there. I gotta go do do other things. I mean, there's, there's a lot of things I could do. And so, yeah, when you graduate from college, you would think you're to start a CEO of some company or something. And so, yeah, I mean, that's just that young, kind of inspiring, this is what I'm gonna do. And then you kind of get out in the real world. And you're like, this is kind of interesting. And so it was nice to have the opportunity that dad gave us to kind of spread our wings ourselves and kind of convert from dryland agriculture, that irrigated agriculture. And so he said that it was something that he feels his dad never gave him the opportunity. And he wanted to give the three of us an opportunity to really grow the farm and not to sit in, in this in this area of, hey, this is what grandpa did this what we're gonna do. And so he wanted us to kind of fly the go out there.

Paul Yeager   Right. It's the in I've heard that CEOs of companies where you know, if it's a family owned, like you have to go work somewhere else before you come back, we want you to see how other places do it. So you're not just one way of doing it. When you have come back. And you mentioned irrigated and non-irrigated water has become, do you remember water been as big of an issue? 

Nicole Berg   No, no, no, no. Yeah. I mean, like I saw neighboring farms develop out into irrigated agriculture. And it wasn't that big of a issue. And when we came back and started converting into irrigated agriculture, it took us about five, six years to get it done. And that was like, right when the door was closing with the Endangered Species Act on the Columbia River. And so, you know, I never thought the journey would be that hard. And it was hard. But I also understand preserving natural really resources and you don't want to do anything to hurt that, but yet, we all have to eat. And so to be productive in agriculture, and in the Columbia Basin here, you really need water. And it feeds the world.

Paul Yeager   Where's the, what, where do you need snow to fall or rain to fall that you benefit the most from?

Nicole Berg   Canada, the Columbia River is up in Canada and kind of weaves its way down through Washington state. And so up there is where you need the majority of your water for for the Columbia River. Some of it comes from the Yakima River, which is up in the Cascade Mountains and that all that helps the flow of the river.

Paul Yeager   Is there snow yet on any of the those mountains? 

Nicole Berg   Oh, yeah, um, the Cascade Mountains on Snoqualmie Pass, they've gotten some snow in the last week or so. So it's kind of like, I didn't think fall is gonna get here and now all of a sudden, it's here now or it's freezing. Kind of cold.

Paul Yeager   Well, here in Iowa, we're pretty dry. You mentioned it's dry there. What's the phrase that some of our market analysts like to use plant in the dust your bins will bust?

Nicole Berg   Yeah. Or we use dusted in, bust the ban? 

Paul Yeager   So, that's optimistic wheat talk as well.

Nicole Berg   Absolutely. In the in the Plains area. I'm hearing horror stories Oklahoma, Kansas, parts of Texas, Nebraska. All those those folks that we represent, you know, you're hearing horror stories were my horror stories two years ago, when I only harvested a third of the farm of dryland wheat. So, my heart goes out to everybody who's in a drought situation, because it's tough. It's tough farming. And in it, it becomes very daunting when you don't see your plants jump out of the ground. And they curl up and go back in. I've talked to a farmer in Texas, this last last year cycle, and he didn't even harvest it didn't even come out of the ground. And I mean, I just you know, I get it. Pictures of the same, the same kind of concept. I am in the driest area in the world that grows cereal grains behind the place in Israel, the six inches of rain a year. And so yeah, I was like, that's why I said Grandpa must have been asleep when he went through Iowa. Or even through the dark dirt in North Dakota.

Paul Yeager   He was asleep or maybe he couldn't get to the door quick enough. And somebody Yeah,

Nicole Berg   Maybe, I don't know. He landed in a sand dune.

Paul Yeager   He needed to get off before he didn't want to go be a fisherman and get off at the ocean. So that's right. Yeah, exactly. On the train. He would have been there he would have we'd be talking about Alaskan Chinook or, you know, the salmon or something. Yeah. When you say it's dry in areas What does dry consecutive years mean for the overall health of us wheat?

Nicole Berg   Well, dry consecutive years means that we you know, we we and grow healthy, safe food for across the world. And if we can't grow the wheat and we can't have the food, and so it does mean supply issues for our customers 50% of the wheat goes overseas to customers. And so I think that's something really important to always come back and think we feed the world. And so that's kind of what it what it prevails. The other thing that happens to actually as farmers is we have to utilize the safety net of the Farm Bill, the crop insurance will keep us in business, it will pay some bills, and that's about it, you don't make money off of crop insurance. Because that's right. All it does is keep the doors open, and you can pay your fertilizer bill and you can pay your bills. Well, not so much this year with the high input costs. But you know, you do you try to pay your bills and trying to keep the family farm functioning. 

Paul Yeager   We found you was you were testifying in Washington DC, here a couple of months ago, how, how did you get selected to go sit on one of those panels?

Nicole Berg   So we were selected, the wheat industry was asked because of the conservation practices that we utilize across the country, we are a very constant conservation oriented planning kind of system, I would call it and it's very unique. And so they wanted to know our thoughts on the title two programs, as well as the conservation practices that we utilize I use it personally utilize the Conservation Reserve Program on the farm, which kind of gives you that strip till kind of feel, for lack of a better word, folks. And it helps, you know, with the productive areas, and then the non productive areas of the farm and the environmentally sensitive areas of the farm. And so we definitely are a true proponent of voluntary incentive based programs. And I think they saw some of it was my passion for the conservation programs, as well, as you know, I know what it can do to help the farming practices and the business plan of our farms. 

Paul Yeager   How did you get to be so passionate about it?

Nicole Berg   Um, I think part of it was, I was involved in the conservation district world for a while I did get the all incentives award, it's actually right there. From the conservation districts, which was a national award, and I've just always been passionate about, there has to be a balance in farming. And I think some of it, there is, and I think that US farmers are true environmentalists and in some aspects, or conservationists, whichever your definition is. And I think that the whole problem we have is that we just need to tell our story about I think we you know, we implement these new practices, we know we have have direct seed, we have now drills that will seed in certain spots, and not in certain spots, we have sprayers that you know, will only spray a certain certain spot where there's weed and won't spray the rest of the ground. You know, all those things are conservation oriented. And, and so as farmers through title to programs really helps us tell that story.

Paul Yeager   Well, is that something that your father grandfather were into? Or was it you went to a meeting one night and you were inspired?

Nicole Berg   My dad was on the conservation district board as well. And my and I believe My great grandpa was too and I'm not sure my grandpa was he was he was kind of political, but did more of the cat. He was more than the cattle sheep. And so yeah, I just, you know, I've always had a passion for it. And so I think it's something that's important. And and like I said, all those farmers really are, you have to take care of your ground, or you're not going to grow anything.

Paul Yeager   Well, and there's always a fight. I think sometimes among generations, or even those in the same operation that we need to do this. No, we can't, it doesn't pencil out. And then you say, No, we can't afford not to because we need to have the land in two years. 20 years down the road. Has that internal debate been among the family? 

Nicole Berg   I think it's been great with our family. We're pretty progressive, folks, all of us. And we are kind of gadget oriented. And so like my one brother, he does all the irrigation water management and all the pivots now turn on and off, you know, through the computer, you watch the monitor through the computer, you can even do variable rate water in certain in certain circles where you only water one area and not the other. And then you start running the numbers and the numbers will tell you if you do it or not do it. And the majority of the time, the numbers come out saying hey, just the overlap with GPS and I can save fertilizer that was worth it plus the voluntary incentive based programs on top of that did help put more of a carrot, you know, for us to kind of get motivated to go out there and go do it. Like direct seed. Our wheat dryland wheat is direct seed. Now would we have bought the $180,000 drill without like CSP? I'm not sure I'm not sure that would have penciled out. But we did the CSP program, did the direct seed and now we've implemented into our practices and so on. Now we're looking for the next direct seed drill, you know, like you kind of like you get that, that, that technology, and then you kind of keep moving forward. And so my nephew's just came back to the farm, they just graduated from Washington State. And so it's always fun to see their they pick up the auto steer a lot faster than anti coal does.

Paul Yeager   Well, so how did anti coal get involved in national wheat? How did that happen?

Nicole Berg   So it was when I was we were developing the farm. And I needed a little bit of political help with my section 10-404 to actually pull water out of the river, realizing that as well as when we have this dry land farm, and I started looking at the balance sheet, and I'm like, holy smokes, you know, through CRP through my, my price support payments. And, you know, like, crop insurance, and all that stuff. I wrote, the government really is involved in farming. I mean, whether we like it or not, it is. And so I wanted to have a say, and we and I wanted to help make sure family farms stay in business. And so I got on state board, I was on the state board for five years, and then went to the conservation districts and was asked to come back and go through the chairs. And so then I went through the chairs at the state level. And then I was asked to kind of stick around, you know, and let's, let's get some new energy into the process of, of where we're going with the association. So that's when I decided, yeah, I can be the second woman ever. Why not? 

Paul Yeager   To be one on the board to be president?

Nicole Berg   To be president. There's only been one other woman before me that was president of the association. And she was from Washington State.

Paul Yeager   Do you know who that person is? 

Nicole Berg   Oh yea, its Judy Olson is their name. And she farms north east of me. And then she also went on to work for Patty Murray, Senator Murray's office for many years after that, and then became an FSA director. And so yeah, she was very well accepted, and just kind of paved the way. And when I was thinking about doing it, she actually came up to me at that convention and said, You're doing this, you'll be one of the greatest things that you've ever done. And it's a great experience, and you just meet so many great people and farmers across the country, which that's been my favorite part is meeting, like my friends in Kansas, or Minnesota or, you know, just across the country, Texas. It's just fun to see the different cultures. And I'm not afraid to ask the question. Hey, are you seeing this kind of implement or this, isn't it? Because we all farm different? I mean, it's all different. And so you don't you're not really even scared to ask the question, because it's just all different across the country.

Paul Yeager   So as president of National Wheat Association, what does that exactly mean?

Nicole Berg   So as president is a year term, and so I oversee a board of 21 states, our board of directors actually is kind of a senate, kind of comfort, complexation, of growers across the US. And so we have meetings, all like during the whole year, and then we talk policy, we're Congress, we are the Congress arm of the weed industry, as with regard to fall asleep policy, and then our big, big, you know, goal is the next farm bill, which expires in 2023. And so that's been our focus, or main focus right now is like, how are we gonna get this farm bill done? Are we gonna eat it extended? Or we're gonna need to have a new one? You know, I mean, I think we'll know a lot more next week. And to see exactly where things go,

Paul Yeager   Well, this, this, our conversation comes out on election day. So by the time many people consume this, we may know, or we've got, we're going to vote right now. So I'm not going to ask you necessarily, if this party wins or the other, but you had to if you already had to start and have started those conversations too slowly, because staff will stay the same, even if the office holder might be different, or you need to kind of keep things moving and in front of me, because you can't just wait right? Until it's like a month before this thing expires.

Nicole Berg   Oh, no, no, no, no, no, you can't just wait. We have been this spring, we did some priority listings. And then we also wrote a letter to the four corners, to kind of laying out our priorities of where we think, you know, these are some of our priorities where we'd like to go with them. They were kind of high level because we we kind of we haven't had a chance as an industry to kind of nail it down, which we'll do. We'll start we'll be doing next week in our meetings. And then we did a flight in September. And so we hit over 55 offices, and we had about 20 different members show up to try to hit all these different offices that we needed meet. I personally met with the House Ag Committee and Senate Ag Committee. And so yeah, you have to keep those conversations going, you know, I always said that one of the best things that happened in the last Farm Bill was what the Senate did that bipartisan bill they made. I mean, how many I mean, that hadn't been historic with how many votes were Democrat and how every Republican. And I truly believe the farm bill should be a bipartisan bill that helps farmers and helps us all helps safe, healthy food. And so with that, I think it should be bipartisan.

Paul Yeager   We had the episode before this was with a University of Illinois person who used to work in staff work in DC, and we talked about the Farm Bill. And he said the house is much more political when it comes to this bill. And historically, the farm bill has been overwhelmingly food and the rest is conservation. I mean, we're talking food assistance. That's part of the coalition that happens is Do you see that that is going to stay that way for the foreseeable future, that it's still heavy on food assistance, and the rest is what we would call what happens to and helps to people like you in the in the middle of farming?

Nicole Berg   I think I think because of food stamps and the the assistant programs that are in the Farm Bill and the level of funding that it has, I don't necessarily see them splitting, I don't hope they don't split, because we need a bipartisan bill over over 500 offices. And there are, as you and I both know, not all offices are rural. And there's a lot of urban offices. And so we have to be able to keep that conversation going with those urban offices, they have a tendency to be a little bit, they'll have more of a conversation with you because of the nutrition part of the bill. And so I don't necessarily see it separating. But your goodness, I mean, I don't have a crystal ball like that either for Congress. So you kind of never know

Paul Yeager   You'd be doing something to call if that is right, exactly. 

Nicole Berg   I would not be sitting here on a desert island somewhere.

Paul Yeager   The desert islands, that kind of bridges to one of the last things I want to discuss with you is the islands of wheat production around the world and what can happen when one person decides I want to take advantage of someone else. Russia has had a huge thumb on wheat. In the last well since February. Is that good for the industry, when one light really is one person having that much influence on what it is you are doing in Washington state and your rest of your growers across the country?

Nicole Berg   Well, I think they as you know, it's been a roller coaster ride. And most people get nauseous on rollercoaster rides. And so that's kind of how I viewed it. I feel bad for the folks like in Africa, because I have been to Africa and seen the famine in Africa. And they're heavily reliant on wheat from the Black Sea area. And so it is very unfortunate that the Black Sea and those folks, you know, possibly could be having more food security problems than they eat. I mean, they already had food security problems, so they have to have more food security problems. So yeah, it's it's like the roller coaster ride of of pricing inputs. It's really put us farmers really having to keep our pencil sharp to try to make sure we can farm the next year because the volatility, I don't think anybody likes volatility makes your stomach go funny. Just like the roller coaster.

Paul Yeager   It makes your stomach go. But there's some who who necessarily their computer algorithms thrive on it. Yes, this is true. But it makes those who don't trade necessarily with the computer. Yes, Your stomach is funny.

Nicole Berg   Yeah, absolutely.

Paul Yeager   Do you see a case where wheat? Is? Is it ever gonna go back to not being such a global commodity, then maybe? I mean, it's always kind of been global. But do you ever see a day when it comes to not be so global?

Nicole Berg   I think it will always be called Global, just because of the food dependency for protein in the majority of the world, and just their dietary needs that they have to their cultures. I see it will always be a global global market. Yeah, it doesn't go away. No, no, no, it would be I mean, you'd have to really change some cultures because of the protein and the food dependency that some of those cultures have with with protein. And I mean, that's an everybody like wheat.

Paul Yeager   There's those who love to grow. But there's also been some in some areas, Nicole that have switched acres from wheat to something else. How does wheat stay competitive in the United States with farmers to make sure they keep growing the product or if they wander little bit, is it okay?

Nicole Berg   I think a farmer is going to do what a farmer is going to do to stay in business. They think that they're gonna grow, what they think they can grow to, to, that they can grow the best and make enough money to stay in business that next year and to the probably the next generation. I think that that's the, that's the thought process of a farmer. The Wheat industry, yes, acres have been declining down, but it's all dollars and cents. We do grow the safest, you know, healthiest food in the world. And so I think that does definitely keep us competitive, especially like in like the Pacific Northwest, we grow soft, white wheat. 90% of the wheat goes overseas. So you know, it's profitable for us to do that. Now at five $5. Wheat, it's not profitable. So you understand why a farmer is turning the corner and moving into different areas? There are across the state, though, we that's kind of all you bro. I mean, you have few other options, but not a lot of other options. And so it's a lot different than the Midwest, like from where you're from, from the corn and soy belt. Whereas, like in my area, you there's not many other options, but wheat to grow?

Paul Yeager   Well, you mentioned two things of interest. To me what you just said, Here, we're dealing with the farmers around the Mississippi are dealing with a low water flow issue. We had a discussion on on the TV show last week about is the Pacific Northwest going to be a more viable port for some who are west of a certain point and start shipping it but then it becomes to to be a competitive thing for that rail. What's going to get on the rail to end up on it in Is there enough capacity in the ports of Seattle? And wherever that something's headed east? Is there enough capacity out there?

Nicole Berg   They always say yes, of course, the railroads always like, we talked about the Snake River dams in our area, and you know, kind of that whole kerfuffle with the barges here. And so I can relate it to here that, you know, you always hear stories that yeah, there's enough rail, there's enough this but is there, you know, kind of thing. And so those are great questions, the Mississippi with 1800 barges stuck? Basically, it is it's a sad story and historical lows of water, they are dragging, which is great, to hopefully get the water flowing. But yeah, I mean, you everybody sits back and says, Oh, yeah, you know, you can go this way. Or you can go this way, you know, kind of thing. And so I always say though, the grain will get to where it needs to go. Now, it may take a little bit longer sometimes, but it usually gets to where it needs to go.

Paul Yeager   And it may cost a little more to ship it.

Nicole Berg   And that's very unfortunate, because the farmers always pays for that.

Paul Yeager   Right? What's your basis level been like on your wheat that you've been trying to sell here? In the last? We'll just say three months?

Nicole Berg   Um, you know, and I haven't even checked lately.

Paul Yeager   I mean, it's a matter of because I like to say all bases is like politics. It's all local. Sure. He says it's hugely dependent on where you're at. And I just didn't know with this influx what that's done to you.

Nicole Berg   Yeah, no, I haven't even looked at my brother does a lot of that marketing. He used to work in the green marketing part. So he tracks it a little bit closer, and I do I track it, but I kind of work more on the policy side and CRP and stuff like that. So well, let me have little areas, and you work here. I probably should have looked it up before you. I had the interview. I usually do. That's okay.

Paul Yeager   Nicole, let's close with this as we wrap up 2022 and flip the calendar to 2023, what is going to be the three biggest stories that the wheat industry is that we need to pay attention to impacting wheat.

Nicole Berg   The biggest story, I think right now is going to be the railroad. I think that that's going to be with with two unions voting not to accept the tentative agreement. I think that that's going to cause some problems in the industry and big bottlenecks across the country. So that's one of them. I see the Ukraine, Russia issue with regard to supply and demand. So we're going to keep it very volatile. Like you said, it's stuff out of our control by somebody who's who's trying to impact a certain region of the world. I see that as is just going to keep the roller coaster ride going as far as the price as well as input. And then the third one, we're just going to work diligently on that 2023 Farm Bill renewal we have to get is an extension or we need to get a new farm bill and when or it's got to be one or the other. So those are the three iconic these big issues that are going to be faced in the wheat industry right now.

Paul Yeager   Got a lot to do in 2023. There's no no downtime for you.

Nicole Berg   No, no downtime. Yeah. And then I will in March, I've heard over to the Vice President. So then it's his problem, right?

Paul Yeager   Yeah, but for some reason I get the sneaking suspicion you won't. You can't quite Quit it, even if you're not in that one position.

Nicole Berg   Oh, yeah. No, definitely you can. All farmers, I've always told everybody, all farmers need to get out there. Talk to your legislators. It is so important to you get off the farm every once in a while and tell your story. Everybody has to tell their story. Because it's I mean, it's the only way we're gonna get a new farm bill, or get an extension.

Paul Yeager   And we appreciate you telling us your story. Thank you, Nicole.

Nicole Berg   Well thank you, Paul. Nice to meet you.

Paul Yeager   Nice to meet you. That's the Katie Berg, she's president right now with the National Wheat Association joining us today from Washington State. 

My thanks to Nicole Berg, appreciate the time and appreciate you making it this far in the podcast. If you have any feedback for the podcast as a whole or the show MarkettoMarket@IowaPBS.org is the email address to us. We'll see you next time. Thank you for watching.