In This Issue:

  • Barley Represented at House Ag Committee Farm Bill Hearing
  • NBGA and Barley Representatives Attend U.S. Grains Council Meeting
  • Deadline to Sign-Up for ARC/PLC is March 15th
  • From U.S. Grains Council: New Report Encourages Chinese Craft Brewers to Import More U.S. Barley Malt
Barley Represented at House Ag Committee Farm Bill Hearing

On March 1st, the House Ag Committee held a hearing to review the performance of the 2018 Farm Bill Title I programs. Clarke Coleman, a producer from Bismarck, North Dakota testified on behalf of sunflowers, barley, canola, and pulse crops. Mr. Coleman emphasized the importance of the Title I programs, along with the crop insurance program, as the backbone and most important factors in the stability of farm operations. The options and flexibility provided under the 2018 Farm Bill has allowed producers to choose between program options on a farm-by-farm and crop-by-crop basis enabling farmers to develop protection plans that best fit their operations. Mr. Coleman noted that while the reference prices established in the 2018 Farm Bill were reflective of the market for the first few years, that dynamic may be changing as farmers are experiencing a surge in the prices of fertilizer and other inputs that will significantly increase production costs and risks. He also stressed the need to maintain the policy of decoupling to provide planting flexibility by tying income or revenue protection to recent historical base acres rather than current-year crop plantings. This has allowed farmers to respond to market signals rather than the prospect of receiving government payments. This hearing was a first step in the long process of developing and enacting the next Farm Bill, which expires in 2023. 
NBGA and Barley Representatives Attend U.S. Grains Council Meeting

NBGA President Greg Kessel, board member Nathan Boll, as well as NBGA and state staff attended the U.S. Grains Council meeting in Greenville, South Carolina. Key issues discussed at the meeting included the global grain and feed demand dynamics, driven largely by China as well as the change in barley trade flows stemming from China’s demand and issues with Australia that have a domino effect on U.S. barley movement. Below are a few slides from USGC on the China grain and barley imports and barley production that illustrate the dynamics occurring there.  The barley sector representatives also found this appropriate place to gather for dinner and drinks in Greenville: 
Deadline to Sign-Up for ARC/PLC is March 15th

Farmers have until March 15th to enroll in Farm Programs. Producers can elect coverage and enroll in ARC-County or PLC, which are both crop-by-crop, or ARC-Individual, which is for the entire farm. Although election changes for 2022 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm and makes an election change for 2022, it will be necessary to sign a new contract.
If an election is not submitted by the March 15, 2022, deadline, the election remains the same as the 2021 election for crops on the farm. 
From U.S. Grains Council: New Report Encourages Chinese Craft Brewers to Import More U.S. Barley Malt

China is the world’s largest beer producer, and the U.S. Grains Council (USGC), the Agricultural Trade Office (ATO) in Beijing and the U.S. Department of Agriculture’s (USDA’s) Foreign Agricultural Service (FAS) want to ensure U.S. agriculture is the chief supplier of one of the essential ingredients of the country’s growing craft beer industry.
 
ATO Beijing recently released a report, FAS and USGC Encourage Chinese Brewers to Increase US Imports, highlighting the advantages of U.S. barley malts and the work of the Council and FAS in the promotion of its use in China’s craft beer industry.
 
The report outlines the efforts of the Council and FAS to showcase the quality of U.S. barley malts in craft beer since 2019, while also touching on the challenges the U.S. product faces in the China market.
 
In 2019, the Council invited a group of Chinese craft brewers to visit barley farms and malting and research operations in North Dakota, Idaho and Colorado. It became clear following the trip that those brewers who have seen the operations first-hand not only have a better understanding of U.S. barley malts but are also more willing to purchase the product for their craft breweries.
 
"Eight brewers from China's leading breweries traveled to the United States to visit malting facilities and barley growers and also attended a seminar on production, marketing and quality of U.S. barley and barley malt in 2019,” said Wennie Liu, USGC program manager in China. “We strived to give the Chinese beer industry more choices on the brewing ingredients and improve their understanding of the quality characteristics in the U.S. barley malt, ultimately increasing sales of U.S. malt to China."
 
The Council and FAS have also hosted in-country learning and promotion opportunities to increase awareness. At the U.S. Embassy’s Constitution Day Celebration in 2020, the Council worked with SUPERMALT, a Beijing-based U.S. barley malts importer, and NB Craft Beer, a Beijing brewery, to create a special craft beer for the event using U.S. products. At ATO Beijing’s U.S. Food and Beverage Expo in 2021, nine Chinese breweries that use U.S. ingredients were invited to showcase their craft beer. Later that year, the Council hosted a craft beer barley malts promotion program, where 14 breweries had the opportunity to brew different styles of beer using U.S. ingredients.
 
While U.S. barley malts and hops are priced above competing products from Australia and Europe meant for lagers, U.S. ingredients have the diverse taste profiles, quality and stable production that best suits craft brewers. Through first-hand sample usage, craft beer brewers across China are developing a better understanding of the quality of U.S. barley malts and the difference it makes in brewing.
 
The Council and FAS will continue to work together in China to expand the awareness of U.S. barley malts and the quality that comes with purchasing U.S. products.
 
"U.S. malt has earned a good reputation because of its high-quality in the Chinese craft beer sector, but higher prices and supply variability continue to be a concern for the Chinese brewers. The Council's Beijing Office will continue to organize and sponsor workshops, expos, and webinars that build demand for U.S. malt and barley in the years to come," Liu said.
National Barley Growers Association
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