GREENBRUSH, Minn. -- The Minnesota Association of Wheat Growers met Nov. 18 at its headquarters in Red Lake Falls, Minn. One item on the agenda was of sufficient interest to cause me and several other farmers to attend, namely another referendum on increasing the wheat tax, or checkoff.
The board worked through several routine items before taking up the issue of the new wheat tax referendum. We were surprised when the board decided to move for a 1-cent increase, which is a 100 percent increase.
In December 2008, the MAWG held a referendum on increasing the wheat tax by 500 percent. The vote took place in Grand Forks, N.D., and the motion was defeated by a mere 13 votes out of 170 total votes.
Making changes
When MAWG initiated the wheat tax 30 years ago, a farmer could request a refund of the tax. This no longer is an option. When questioned why the rules were changed, the board responded with a muddled answer about Canadian wheat taxes. Regardless, Canadian wheat no longer is an issue, but refunds are not an option to Minnesota wheat farmers.
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We asked the council what, if anything, 30 years of tax collection have done to improve the bottom line of wheat farmers. MAWG recited two areas of expenditures. One was that wheat traders from the U.S. are located around the world to enhance exports. The wheat tax supports these "export enhancers." The other area was that wheat checkoff dollars are going to universities to develop new wheat varieties.
Of the last 38 new wheat varieties, 24 have been private labels. I do not think public funds ought to be competing with private enterprise. When government gets involved, waste and fraud creep in.
North Dakota raises fees five times as much wheat as Minnesota does. A wheat farmer in North Dakota can apply for a tax refund if he is not satisfied with the way his wheat taxes are spent. When we suggested the possibility of joining or combining with the North Dakota wheat association to alleviate duplication of efforts and facilities, our suggestion was met with stares and glares.
Financial statements
The financial statement of the Minnesota Wheat Council made available to us at this meeting compared income and expenses from the last few years. The advertising budget showed an average annual charge of $8,000 to $10,000. That is, until 2008, when it spent $81,000. When questioned about the huge increase, the council revealed that it had hired a Madison Avenue-type advertising firm to drum up support for the checkoff increase. It almost won. The wheat board spent our wheat tax on an advertising agency to increase the wheat tax. Remember what I said about waste and fraud in government?
Let us imagine the U.S. trade representative is in his penthouse at the top of the Hilton in Riyadh, Saudi Arabia. He and the Saudi wheat buyer are sharing a $400 bottle of French wine. The American struggles to his feet, picks up his 8-foot pointer and goes to the wall upon which hangs a huge map of North America. After several tense moments, the U.S. trade representative finally is able to locate Minnesota on the map.
He says to the Saudi, "This is Minnesota, where we grow the finest wheat in the world."
"Yes," the Saudi replies, "Minnesota grows fine wheat. So does France, Canada, Brazil and Argentina. Theirs is one penny a bushel cheaper. We will buy from them. Thank you for the wine."
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Editor's Note: Dalager farms in Greenbush, Minn.
