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<classification authority="sudocs">GA 1.13:RCED-99-59</classification>
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 <subject>Economic analysis</subject>
 <subject>Agricultural production</subject>
 <subject>Grain and grain products</subject>
 <subject>Plant diseases</subject>
 <subject>Agricultural chemicals</subject>
 <subject>Quality control</subject>
 <subject>Grain inspection</subject>
 <subject>Testing</subject>
 <subject>Prices and pricing</subject>
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<titleInfo>
 <title>U.S. Agriculture: Grain Fungus Creates Financial Distress for North Dakota Barley Producers</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the effect of scab and
vomitoxin on North Dakota barley crops, focusing on: (1) the financial
impact from scab and vomitoxin on barley farmers; (2) the performance of
vomitoxin test methods; and (3) short- and long-term actions that could
help reduce the impact of scab and vomitoxin on North Dakota barley
farmers.&lt;p/&gt;GAO noted that: (1) North Dakota barley farmers have experienced
extensive revenue losses from scab and vomitoxin damage; (2) from 1993
through 1997, these farmers suffered estimated cumulative losses of
about $200 million from scab and vomitoxin--equal to about 17 percent of
the $1.2 billion in total barley revenues they received during this
period; (3) while most of the revenue losses resulted from decreases in
barley production, losses also resulted from severe price discounts; (4)
maltsters and brewers, the traditional buyers of North Dakota&apos;s malting
barley, have reacted to the scab and vomitoxin damage by purchasing less
barley from North Dakota farmers and more from Canadian and other
western U.S. sources; (5) three tests are generally used to measure
vomitoxin concentrations in barley produced in North Dakota; (6) one is
a field kit, called Veratox, which is commonly used by grain elevators
and commercial testing facilities and is the test that most directly
affects the prices farmers receive for their barley; (7) the Veratox
test can produce results that vary at concentrations critical to pricing
decisions; (8) testing experts attribute variations in test results to
several sources, including the skill of the technician conducting the
test; (9) they stress the importance of quality assurance measures and
training to help reduce this variation; (10) the other two
tests--high-pressure liquid chromatography and gas chromatography--are
reference methods that are used primarily in research laboratories for
such purposes as checking the performance of the Veratox kit; (11)
according to analytical chemists and other testing experts, these tests
provide accurate and consistent test results; (12) however, because of
the complexity and the cost of the equipment for these two tests, they
are not practical for use at commercial testing facilities and other
locations that serve barley farmers; (13) short-term actions, such as
rotating crops and spraying with fungicides, may help reduce scab and
vomitoxin&apos;s impact under conditions of light infestation; (14) however,
according to North Dakota agriculture experts, the benefits of these
actions are negligible during periods of moderate to severe infestation;
(15) from 1993 through 1997, several counties in the Red River Valley of
North Dakota experienced moderate or severe scab and vomitoxin
infestation; and (16) the longer-term action of developing more
scab-resistant barley may also help reduce the disease&apos;s impact under
conditions of light infestation.</abstract>
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<identifier type="preferred citation">GAO/RCED-99-59</identifier>
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 <searchTitle>GAO/RCED-99-59; U.S. Agriculture: Grain Fungus Creates Financial Distress for North Dakota Barley Producers;
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<subject>
 <topic>Economic analysis</topic>
 <topic>Agricultural production</topic>
 <topic>Grain and grain products</topic>
 <topic>Plant diseases</topic>
 <topic>Agricultural chemicals</topic>
 <topic>Quality control</topic>
 <topic>Grain inspection</topic>
 <topic>Testing</topic>
 <topic>Prices and pricing</topic>
 <topic>North Dakota</topic>
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