• Increase corn production by boosting the average corn yield significantly.
• Displace more corn in feed use with co-products.
• Improve ethanol production efficiency to squeeze more ethanolfrom each bushel of corn.

• Robert Krouse, FGIS Compliance Review Branch, said the most common major finding in compliance reviews had to do with diverter/type samplers -- either no written lock-out/tag-out procedures, inadequate D/T security, D/T file information, lack of proper seal records or poor condition of the D/Ts.
• John Giler, Acting Deputy Administrator, GIPSA, said the agency’s view on the need for an effective Quality Management System (QMS) has not changed. He said QMS is a key part of centralization. He said QMS should provide a road map of the necessary processes and outline areas of responsibility/accountability and a means to insure the functions are actually performed correctly.
• Dave Reeder, Fremont Grain Inspection Department, speaking as part of a panel discussion on the QMS program, said the Task Force charged with re-evaluating the QMS program is looking to develop a new approach that is more workable and less cumbersome – something that can work for everyone.
• John Sharpe, director, Technical Services Division, reported on the additional space and renovation work scheduled to take place at the existing facility in Kansas City, which will now be called the National Grain Center. He said the target occupancy date for the additional space is December 2008, with the renovated space to be occupied sometime later. The new Center will house representatives from the Compliance Division, Field Management Division, Information Technology Staff, and Market and Program Analysis in addition to the Technical Services Divisions.
• Diane Palecek and Mary Vick reported on progress being made with FGIS Online applications. Some of those include: testing for the new Inspection Testing & Weighing system began in May; QAC is in the gathering phase which should conclude soon; and FGIS Official Licensing is scheduled for implementation next year. Equipment Checktesting is projected to move to the staging phase in May 2008.
• Robert Lijewski, chief, Policies and Procedures Branch, reported on the development of several Program Notices, Directives, and proposed rules regarding D/T sampling systems, stowage exams with cameras, phytosanitary inspection rocess, and containers.
• Pat McCluskey, Market and Analysis Staff, said FGIS would be withdrawing its “advance public notice of rulemaking” for ethanol and soybeans, citing a lack of industry support or need.

President Larry Kitchen honored several long-time AAGIWA supporters during the banquet on April 29, plus a volunteer for her service. Those honored with plaques were:

• Ted Hoelck, official agency manager, Hastings Grain Inspection. Mr. Hoelck, a former AAGIWA President, first began attending AAGIWA meetings in 1950.
• Robert Fronabarger, official agency manager, Cario Grain Inspection. Mr. Fronabarger, also a former AAGIWA President, began attending AAGIWA meetings soon after Mr. Hoelck.
• Edy Matchy, official agency manager, Lewiston Grain Inspection. Mrs. Matchy was honored along with her late husband, Edd Matchy, for their Agency’s membership and support for many years.
• Lori Schimming, North Dakota Grain Inspection, was honored for her volunteer work in maintaining the AAGIWA web site.

Secretary-Treasurer Dave Reeder said the group not only completed an excellent membership renewal process, but has welcomed nine new members. Those new members and their official voting representative are as follows:

• Aberdeen Grain Inspection, Mike Hoesing
• Kankakee Grain Inspection, Michael Fagen
• Northeast Indiana Grain Inspection, Neil Reynolds
• Ohio Valley Grain Inspection, Linda Meny
• D.R. Schaal Agency, Lewis Schaal
• State Grain Inspection Agency, Steve Duea
• Virginia Department of Agriculture, E.L. Knicely
• Charm Sciences, Gerard Ruth
• Gamet Manufacturing, Mark Olson

Reeder said AAGIWA is composed of 47 members, including 27 private agencies, 9 state agencies, and 11 associate members.

The Food and Drug Administration announced on April 25 it was withdrawing its guidance providing for testing corn exports for the presence of STARLINK. The FDA action follows the release of a study by the Environmental Protection Agency finding the presence of STARLINK has been significantly removed from the human food supply. FGIS has stated that STARLINK testing, however, will remain as an official service even though it is no longer required by FDA.

Several articles in the trade press report on expectations for sharply lower container shipments in the near future. The main culprit appears to be sharply higher ocean freight rates which are making it uneconomical to use containers to the same extent as before.

Other general reports highlight tightness in the availability of containers and difficulty in finding sufficient containers to fulfill customer orders. Some of the supply shortfall is attributed to weight restrictions on ships and rail – goods coming into the United States are lighter than grain/oilseeds going out – so containers leaving the United States with grain/oilseeds are not full and fewer containers fill the vessel weight limits.

A weaker U.S. dollar also is a factor. A weaker dollar spurs U.S. exports and slows imports, meaning more outgoing containers than incoming containers.

GIPSA Designates Schaal, Maryland for New Areas

GIPSA announced on April 29 it was designating the D. R. Schaal Agency to inspect and weigh grain in specific geographic areas in New Jersey, and New York. The Maryland Department of Agriculture was designated to provide services in specific areas of Maryland.

AAGIWA congratulates Lewis Schaal and his colleagues at the D.R. Schaal Agency on this new undertaking.

News Bits

• NGFA concerned with rail capacity. National Grain and Feed Association President Kendell Keith testified before a Congressional committee on May 5, saying “the days of surplus rail capacity are over.” Keith continued, “In the last four years, there have been growing signs that the rail industry is nearing its capacity limits, at least in some shipping corridors,” largely as a result of increased intermodal shipments, particularly for transporting manufactured goods imported from Pacific Rim countries. He noted that rail carriers have responded by rationing rail transportation capacity, in part by increasing freight rates to levels intended to discourage the use of rail service. The NGFA noted that average revenue-per-unit for agricultural shipments received b Class I rail carriers increased by a range of 27 percent to 52 percent over the last three years.
• National sorghum check-off approved. USDA has issued a final rule establishing an industry-funded promotion, research and information program for sorghum. Assessments will begin July 1, 2008. USDA says it anticipates the program will generate about $12 million a year to benefit producers, marketers, and processors. Similar programs currently exist for beef, lamb, pork, soybeans, cotton, and some specialty commodities.
• Port of Galveston has $150,000 clean-up bill. The Galveston Daily News reports the Port of Galveston will pay $150,000 for the removal and related cleanup of a railroad tank filled with thousands of gallons of liquid, including the degraded form of the pesticide DDT, found buried earlier this year. The Port has no record of who buried the car and the car has no identifying marks. A grain elevator stood at the site for many, many years until it was demolished in 2003 to make way for cruise-ship operations.

Bob Gore named interim Director for the Washington State Department of Agriculture. With the retirement of Director Valoria Loveland on April 21, Washington Governor Chris Gregoire announced that Robert Gore, the current deputy director at WSDA, will serve as the agency’s interim director until a permanent director is hired. Gore, of course, is wellknown to AAGIWA members from his many years as head of the grain inspection program in Washington. AAGIWA congratulates Bob on this honor and wishes him the very best. He is a former AAGIWA President.

Steve Tanner retires from KCCO. Steve Tanner has announced he will be retiring from federal government service. He has served as director of Farm Service Agency’s Kansas City Commodity Office since February of 2007. Prior to that, he enjoyed a long career with the Federal Grain Inspection Service, most notably as director of the Technical Services Division in Kansas City from 1994 to 2007.

AAGIWA welcomes member information about new products, business changes, personnel changes and other items that may be of interest to AAGIWA members. Please let us know what is new in your business. Send your information to: bob.petersen@aagiwa.org

Looking for a way to move that used equipment you are no longer using? Place an ad in Chaff – the most well-targeted publication for used inspection equipment. The advertising cost for members begins at $100. Ads for the April issue must be submitted by March 25th. Those ads should be sent to Bob Petersen bob.petersen@aagiwa.org

AAGIWA is now booking sponsors for future issues of Chaff. Chaff can present your company with a unique opportunity to hit a very targeted audience of key executives in a venue that has strong readership in the agriculture industry. It is an excellent marketing opportunity – contact Bob Petersen for further information.