Expert: Quality key for wheat growers

In an increasingly competitive worldwide wheat market, Northwest farmers' ace in the hole is their reputation for a high-quality product, said the new chief of Idaho's Farm Services Agency.

Mark Samson, the former representative for U.S. Wheat Associates in Singapore, Cairo and Rotterdam, said although there are plenty of wheat-producing countries out there, only a few rank with the U.S. in terms of a reliable standard.

"What our producers need to do to, specifically in Idaho, is to keep our prices competitive and our quality at the highest level, which is basically our market right now," Samson said. "There's a lot of wheat producers out there in the world that are selling at prices considerably under ours. The recognition of quality is what sells our product. So for the wheat producers, we're dealing in a quality game. We have to maintain the highest level of clean, sound wheat, barley and other products that people will buy."

His understanding of world markets is possibly Samson's greatest asset in taking over the agency, which administers and oversees U.S. Department of Agriculture programs for farmers and ranchers.

Samson, 64, was born in Sandpoint, grew up in Pocatello and graduated from the University of Idaho with a master's degree in agriculture economics. He has worked with state and international wheat organizations his entire career and took over the lead post at the farm agency's headquarters in Boise in November.

His wife Cory is the daughter of former Idaho lawmaker Mike Mitchell of Lewiston.

Samson has seen the U.S. market share elbowed out in some countries by wheat producers whose grain is much cheaper.

"When I was working in Egypt, they used to buy 4 million tons of wheat from the U.S. But since 2002, when Russia started getting in our market, our share went down. (The Egyptians) buy very inexpensive, not the highest quality of wheat from Russia" and now the Ukraine, Romania and the European Union.

A large part of the reason for the lower prices from those countries, Samson said, is the cost of freight and the length of time it takes to deliver a shipment.

"When I was managing (the U.S. Wheat Associates office) in the Middle East, east Africa and north Africa, they buy 40 to 50 million tons of wheat a year. Seventy percent is bought by a government agency for their subsidized product. They have little regard for quality; they have regard for landed price - that's it."

In Latin America, especially Mexico, and Asia, however, customers consistently want high-quality wheat to blend into other wheat or run singularly.

"And they're willing to pay for it," he said. "So those are our markets."

Samson said he believes the recent normalizing of diplomatic relations with Cuba will provide another venue for American farmers.

"I think that our varieties, mostly the hard red winter and soft red winters out of the Gulf (of Mexico) will fit that market very well. I think once they start easing (trade relations) that you will probably see an upward growth in our exports."

Besides keeping an eye on markets, Samson is focusing on the new farm bill programs that supplant earlier subsidized crop payments.

There's been some push back from farmers who believe they will be at a disadvantage because of the way payments are calculated.

"There's been a lack of response from producers in signing up for it and preparing for it," Samson said. Farmers complain the new program is "too complicated; too many choices. But that's the reality of what they have to work with. I think it will do them well to look at the choices they have; do the research and look at the prices of not only the government, but other marketing groups and then they can make their decisions which program to join.

"The transition I'm seeing is that this program moved them to using markets and market knowledge and individual farm knowledge as a revenue protection. The counter-cyclical payments are now gone. So now this program is a revenue protection program."

Samson will participate in workshops this week in north central Idaho to explain the new farm programs. The meetings will be Monday at the Craigmont Community Center and Tuesday at the Williams Conference Center at Lewis-Clark State College. The meetings run from 8:30 a.m. to noon.

As he begins his new tenure Samson remarked on the high quality of employees at the Farm Services Agency throughout the state. Despite significant budget cutbacks two years ago, workers are still able to provide farmers with the help they need navigating the ever-changing landscape of agricultural economics.

"I'm amazed at the workloads and efficiency of these county offices," Samson said. "The people I met are dedicated and work hard and truly care for the producers of the state of Idaho."

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Hedberg may be contacted at kathyhedberg@gmail.com or (208) 983-2326.