2020_21 USADPLC ANNUAL REPORT

ANNUAL REPORT Since 1965, the USADPLC has had two Annual Report to the U.S. Pulse CEOs, Harold Blain and Tim McGreevy. Industry for the fiscal year through June 30, 2021

2 USADPLC Annual Report TCaobnlteenofts INTRODUCTION 4-7 4. CEO Letter 8-17 5. Staff & Boards 18-21 6. USADPLC Financials 7. Income & Expense Charts THE USA DRY PEA & LENTIL COUNCIL RECEIVES FUNDING :FROM THE FOLLOWING PULSE CROP ORGANIZATIONS MARKETING & FINANCIALS 8. International Marketing 12. Idaho Commission Financials 13. ID: Income & Expenses Charts 14. Domestic Marketing INFORMATION AND POLICY FINANCIALS 18. Washington Commission Financials 19. WA: Income & Expenses Charts 20. Information & Policy

USADPLC Annual Report 3 22-25 PULSE RESEARCH & FINANCES 26-29 22. WPGA Financials 30-32 23. WPGA Charts 24. Pulse Research APA FINANCES / NORTHERN TIER 26. APA Finances 27. APA Income/Expense Charts 28. MPCC Profile 29. NDDPLC Profile USPLTA FINANCES, & CONTACTS 30. USPLTA Finances 31. USPLTA Charts 32. Contact Info

4 USADPLC Annual Report RESILIENT This is the word I choose to (PQN) added two new scientists focused describe the pulse industry in on researching and improving pulse PULSE ON! 2020/2021. crop quality. (See Pages 24-25) All the best! Merriam-Webster defines the word The government affairs committee “Resilient” as the ability to become had some major wins this year including Tim D. McGreevy, CEO strong, healthy, or successful again after (See Pages 20-21): something bad happens. • Pulse Crop Health Initiative The world was introduced to (PCHI)- Added $1.0 million COVID-19 at the beginning of 2020 and dollars of funding to the PCHI the impacts of this global pandemic will bringing the total funded continue well after we close the books amount to $5.0 million. on 2021. This virus has changed how we work and interact with each other. • Pulse Quality Network (PQN)- Two years ago, could you have imagined Added $1.0 million dollars of that the term “let’s zoom” would be an funding to the PQN for a total invitation to a business meeting. of $2.0 million. This 2020/2021 Annual Report is a • Farm Program ARC/PLC look at how the pulse industry met the payments to dry pea, lentils many challenges of a global pandemic and chickpea growers totaling and continued to grow this great $18.6 million. industry. • WHIP+ Disaster payments to I am proud of the marketing pulse growers. accomplishments of this industry that pivoted to virtual trade missions, The second definition of webinars, technical seminars, and resilient is the ability to return social media to stay connected to to an original shape after our customers and consumers. Our being pulled, stretched, or consumer social media marketing bent. Marketing year 2020/2021 campaign reached a record 4.9 billion “stretched” all of us. But we were impressions last year. The previous not broken. Through all the record was during the International trauma, loss of life and change, Year of Pulses campaign in 2016 which one thing has remained constant. reached 3.4 billion impressions. (see People still need to eat. The good pages 14-17) news is more people are choosing to eat more pulses because they The industry research team is are healthy foods in a time when committed to growing pulse crop being in good health is at the top of research funding. This year the everyone’s mind. pulse industry took advantage of the As I look back on all the USDA National Institute for Food and challenges of MY 2020/2021, I Agriculture (NIFA) Commodity Board am humbled and honored to be provision that doubled our pulse working along-side every member industry research contributions. The of the pulse industry who worked industry led Pulse Crop Health Initiative every day to grow and deliver (PCHI) funded 10 breeding projects, these great foods. I recognize your 9 sustainability projects, 12 food resilience and your commitment technology projects, and 12 human to feeding us safe, healthy, and health projects totaling $5.0 million sustainable foods. dollars. The Pulse Quality Network

USADPLC Annual Report 5 2020/2021 USADPLC / APA STAFF CHIEF EXECUTIVE OFFICER DIRECTOR OF MEMBERSHIP SERVICES CONTACT INFORMATION Tim McGreevy Kim Monk USA Dry Pea and Lentil Council [email protected] [email protected] 2780 W. Pullman Road Moscow, Idaho 83843 VICE PRESIDENT OF MARKETING DIRECTOR OF RESEARCH Phone (208) 882-3023 Jeff Rumney Evy Jaconis WEBSITE [email protected] [email protected] www.usapulses.org VICE PRESIDENT OF RESEARCH & STRATEGIC OPERATIONS MANAGER MEMBERSHIP SERVICES Sandra Rumney Todd Scholz [email protected] [email protected] DIRECTOR OF COMMUNICATIONS ASST. MARKETING MGR - GRANTS Drex Rhoades Kara Russell [email protected] [email protected] DIRECTOR OF DOMESTIC MARKETING ASST. MARKETING MGR - PR Becky Garrison Madison Jacobson [email protected] [email protected] INTERNATIONAL MARKETING REPRESENTATIVES Latin America North Asia / China India Mediterranean / Spain Europe Indo-Pacific Region Raul Caballero Lucy Dai Sachin Khurana David McClellan Johanna Stobbs Tim Walsh 2020/21 USADPLC NATIONAL BOARD Jay Anderson (ID) Nate Hahner (WA) Kim Saueressig (ND) Eric Bartsch (USPLTA) Brad Karlen (SD) Scott Sova (ND) Andrew Fontaine, Chair (USPLTA) Bert Brocke (USPLTA) Shawn O'Connell (USPLTA) Gordon Stoner (MT) Aaron Flansburg, Vice Chair (WA) Tim Gustavson (USPLTA) Cole Riggers (ID) Paul Kanning, Sec/Treas. (MT) 2020/21 AMERICAN PULSE ASSOCIATION (APA) NATIONAL BOARD Voting Members: Alternates/Advisors: Kim Murray, Chair Marty Anderson Chad Nickels, Vice Chair Cindy Brown Greg Johnson John McDermott Dave Kirsten Steve Savell Pat Smith

FINANCIAL PROFILE: USADPLC USA Dry Pea & Lentil Council $ Total July 1, 2020 - June 30, 2021 $ $170,000 Income $ $210,174 APA Programming Services $59,402 USPLTA Programming Services $253,131 WPGA Programming Services $520,958 IDDPLC Programming Services $480,000 WAPCC Programming Services $1,377,082 NDDPLC Programming Service MPCC Programming Services $10,000 SDPCC Programming Services $1,705,415 MAP/FMD/EMP/ATP Grants Misc Income/ SCB Grants $33,682 Other Income $18,415 Total Income 4,838,259 Gross Profit $ 4,838,259 Expenses Admin Office Operations $264,151 Research Prog/SCBG $582,222 APA Programming $480,981 Info, Educ, Gov't Affairs Prog $531,484 Domestic Market Prog w/SCBG $701,837 International Mkt. Programming $244,431 MAP/FMD/ATP/EMP Exp-Int Mkt $1,705,415 Office Rent Depreciation Expense $81,600 Total Expenses 37,377 Net Income/ Return to Reserves 4,629,498 $208,761 6 USADPLC Annual Report

INCOME FY 2020/21 USTADOPTLCAILncIoNmCe,OFMY 2E0-=21$4,838,259 Misc Income/ SCB Grants Other Income APA Programming Services Total Income = $4,838,259 $18,415 $170,000 $33,682 USPLTA Programming Services $210,174 MAP/FMD/EMP/ATP Grants WPGA Programming Services $1,705,415 $59,402 IDDPLC Programming Services… WAPCC Programming Services $520,958 NDDPLC Programming Service $480,000 SDPCC Programming Services $10,000 MPCC Programming Services USPLTA Programming Services WPGA Programming Services $1,377,082 WAPCC Programming Services NDDPLC Programming Service SDPCC Programming Services MAP/FMD/EMP/ATP Grants APA Programming Services Other Income IDDPLC Programming Services MPCC Programming Services Misc Income/ SCB Grants Net Change in Assets = $208,761 UToESTAtXaODPl PETExLANCpLeSEnxE=spSees$nF=4sYe,$6s422,,F069Y22,4920,904/82-92181 Office Rent… Net Income w/o Depreciation = $246,138 Depreciation Expense MAP/FMD/ATP/EMP Exp-Int Mkt $37,377 $1,705,415 Admin Office Operations $264,151 Research Prog/SCBG $582,222 FY20/21 USADPLC BOARD (Voting Members as of 8/2021) International Mkt. APA Programming Andrew Fontaine, Chair (USPLTA) Programming… $480,981 Aaron Flansburg, Vice Chair (WA) Paul Kanning, Sec/Treas. (MT) Domestic Market Prog w/SCBG Info, Educ, Gov't Affairs Jay Anderson (ID) $701,837 Prog $531,484 Bert Brocke (USPLTA) Eric Bartsch (USPLTA) Tim Gustavson (USPLTA) Nate Hahner (WA) Admin Office Operations Research Prog/SCBG APA Programming Brad Karlen (SD) Info, Educ, Gov't Affairs Prog Domestic Market Prog w/SCBG International Mkt. Programming Shawn O'Connell (USPLTA) MAP/FMD/ATP/EMP Exp-Int Mkt Office Rent Depreciation Expense Cole Riggers (ID) Rol Rushman (NE) Kim Saueressig (ND) Scott Sova (ND) Gordon Stoner (ND) USADPLC Annual Report 7

8 USADPLC Annual Report IMNATERRKNETAITNIOG NAL As we dove into 2020, no one could escape the news of a growing global pandemic. And challenges and constraints hit the supply chains around the world. While the early months of the pandemic drove demand and export sales of pulse crops, surely there were struggles to overcome to continue to serve the interests of the U.S. pulse crop industry, and to increase the market demand for pulses worldwide. However, it is the perspective of the USA Dry Pea and Lentil Council marketing staff that adversity presents the opportunity to adapt, and we with the support of our resilient industry, did just that. Read on to see how the USADPLC whipped woes into wins throughout the 2020/2021 marketing year. WORLD 'NEWS' UPDATE a “Scorecard” that provides quick- our greatest gratitude for Shakun fact information as well as a detailed Dalal, who served as the USADPLC’s NEW GLOBAL INGEDIENT DATA� analysis of each market. representative to India for 25 years. BASE QR comes into the scene following the NEW APPOINTMENT FOR U.S. deeply rooted success of Shakun, and Through programming efforts TRADE REPRESENTATIVE they are well equipped to continue to ranging from innovation seminars to represent the U.S. pulse industry with trade shows to technical trainings, the The incoming Presidential their diverse team and wide range USA Dry Pea and Council continues to Administration announced the selection of expertise. In addition to Directors promote the use of pulse ingredients of Katherine Tai to be its nominee to Sachin Khurana and Shruti Gupta, who on a global scale, to great success. As serve as U.S. Trade Representative have expertise in trade promotion, the use of pulse ingredients increases (USTR). In the statement announcing consumer communication, and social worldwide, the need to understand the selection of Tai, the Biden-Harris media strategy, the QR team includes market dynamics has become more Transition Team said Tai is “a dedicated, Washington D.C.-based David Cottrell. important. Using a variety of funding deeply respected public servant and With more than 30 years’ experience sources including the Agricultural veteran international trade expert in the U.S. Department of Agriculture’s Trade Promotion Program and industry who has spent her career working to Foreign Agricultural Service (FAS) in contributions, the USADPLC launched its level the playing field for American marketing, trade policy, and analysis, new Pulse Ingredient Database in fall of workers and families.” The statement David is an expert at forging relations 2020. This database is one component added that, “Her deep experience will with multistakeholder coalitions, of a detailed market research project allow this administration to hit the managing domestic and international to document the supply and demand ground running on trade and harness staff, formulating strategic trade and of pulse ingredients in 14 international the power of our trading relationships regulatory policies, and briefing high- markets compared to the U.S, including to help the U.S. dig out of the COVID- level corporate executives and political France, Canada, Germany, Mexico, induced economic crisis and pursue leaders. Spain, China, the United Kingdom, the President-elect’s vision of a pro- India, Colombia, Japan, Peru, Malaysia, American worker trade strategy.” QR has an impressive list of Singapore, and South Korea. The launch agricultural clients. According to Jeff of the Global Ingredient Database NEW PULSE MARKETING Rumney, VP of Marketing, “Sachin was supported by market research REPRESENTATIVES TO INDIA and the staff at QR provided a very conducted by Euromonitor Inc., using in-depth marketing plan for the India industry interviews, in-country research, In the early months of 2021, Market. Their experience in consumer and public and private databases. the USA Dry Pea and Lentil Council marketing, social media, and trade The Euromonitor team worked closely happily welcomed the market firm relations provided a unanimous choice with the USADPLC staff to formulate QuikRelations (QR) to the International Marketing Team, while expressing

USADPLC Annual Report 9 for the selection committee.” According American Pulse Association member chains. This portfolio presentation was to Tim McGreevy, CEO, “Our commitment Cindy Brown called Gordon “one of the followed by pre-arranged one-on-one to the India market continues. We most brilliant strategic thought leaders meetings with U.S. suppliers and foreign have been so proud of the work that in the global pulse industry.” Good luck, buyers, all to be delivered in a Virtual Shakun has done in the market. As Gordon. The U.S. pulse industry salutes Harvest Tour to six unique markets. an organization, we are grateful that you. Shakun continues to support the The first of six virtual trade market by assisting with a smooth VIRTUAL HARVEST TOUR & missions as part of the Virtual Harvest transition. I welcome everyone to get to TRADE MISSION tour invited a diverse audience of new know the team at QuikRelations.” market buyers, or companies around The most effective method of the world with whom the U.S. pulse NEW LEADERSHIP AT PULSE CANADA increasing the sale of U.S. pulses is to industry has had little or no prior After 25 years of committed service, bring buyers and sellers together. In communication. This event was hosted pre-pandemic years, the USA Dry Pea alongside the virtual USA Pea and Lentil Gordon Bacon, CEO of Pulse Canada, and Lentil Council had the luxury of Trade Association Meeting Annual announced his retirement. As longtime conducting both in-bound and out- Convention, which poised it for robust partners and close friends with our bound trade missions, uniting U.S. attendance and a wide representation neighbors up north, the USADPLC suppliers and international buyers to of buyers and sellers. The Harvest staff was sad to see Gordon go, while discuss pulse sales face-to-face. With Tour continued to host virtual missions welcoming Greg Cherewyk to take his enduring worldwide travel restrictions in India, Southeast Asia, Pakistan, place. In a video tribute to Gordon imposed because of the Coronavirus, Latin America, and Europe from fall Bacon, CEO Tim McGreevy discussed this the USADPLC was tasked to take these of 2020 into the first month of 2021. unlikely friendship between two CEOs missions to the virtual stage. Luckily, Examples of great success include the for bordering nations who compete for the advancement of technology granted virtual mission to India, where despite the same global market share. In fact, us the resources to transition these in- hindering trade barriers, the event Gordon traveled from Canada to attend person events to an online experience. generated $1 million in projected sales; McGreevy’s oldest child’s wedding. In hopes of hosting an engaging and the virtual mission to Europe, which Sometime during the planning for the dynamic series of events catering brought together 29 U.S. companies International Year of Pulses, Bacon to multiple markets, the USADPLC and 20 European companies and and McGreevy decided to join forces marketing staff developed a portfolio generated more than $1.5 million in to raise demand for pulse crops in of interactive assets including websites; projected sales; and the virtual mission North America, giving birth to a North digital print materials; a set of short, to Pakistan, which featured special American marketing campaign. Global theme-specific videos communicating presentations from the Pakistan Pulses Pulse Confederation President and the quality and value of U.S. peas, Importers Association (PPIA) and the lentils, and chickpeas; harvest and USDA-FAS Pakistan, and generated an market updates; and the effects of impressive $15 million in projected the Coronavirus on global supply sales. NEW INDIA REPS, QUIKRELATIONS AT GULFOOD

10 USADPLC Annual Report INTERNATIONAL MARKETING CONTINUED Becky Garrison, Director of Domestic EUROPE VIRTUAL role played by high-quality, U.S.-grown Marketing, discussed the newly updated pulses in these applications. Dietary Guidelines for Americans in TRADE MISSION her presentation on the role of pulses To kick off the new year, the in nutrition security; Jeff Rumney, MARKET ACCESS & USADPLC conducted a Virtual Training VP of Marketing, spoke on a panel INNOVATION: TRADE- Seminar for Pulse-Based Value- discussing opportunities in pulse SHOWS & SEMINARS Added Ingredients in the Philippines protein extraction and value additions in January of 2021. The Seminar, in pulse-based products; As a panelist Along the same path as trade titled “U.S. Pea Protein: Meat Type on the Kabuli Chana (Kabuli chickpea) missions, the traditional participation Product Applications,” hosted food panel, Jeff Van Pevenage, President and in in-person tradeshows and seminars processors for a technical training CEO at Columbia Grain International, proved tricky due to the Coronavirus about converting U.S. pulse crops into highlighted the production, pandemic. Yet, the USA Dry Pea and value-added ingredients. Attendees consumption, and demand for Kabuli Lentil Council marketing staff pushed heard an instructive and highly detailed Chana in the United States; and Brett through barriers to host and attend presentation from Dr. Girish Ganjyal, Melvin of Maviga NA spoke about the several virtual seminars and even Extension Food Processing Specialist at acreage, yield, and import of dry peas in attended a major global trade show Washington State University’s School the United States on the Dry Peas Panel. with boots on the ground. of Food Science. The presentation was followed by a moderated question During a window of hope that First, as part of our global and answer session with Dr. Ganjyal, in-person meetings might be safe and ingredient innovation programming, after which attendees were given the possible again, the USADPLC headed the USADPLC hosted a Technical opportunity to schedule one-on-one back out into the real world to exhibit Training Seminar on Pulse-Based consultation with Dr. Ganjyal and at Gulfood 2021, the largest food and Value-Added Ingredients in November USADPLC staff. beverage trade show in the world and of 2020. This seminar highlighted the the first major food industry event various applications of pulse-based In celebration of World Pulses Day to take place in-person in the region ingredients such as flours, fractionates, on February 10th, the India Pulses and since the onset of the Coronavirus and isolates for leading Latin American Grains Association (IPGA) hosted the pandemic. Sachin Khurana and Shruti food manufacturing and processing 3rd National Pulse Seminar in February Gupta from QuikRelations represented companies. Presentations from the of 2021. The seminar hosted over 45 the U.S. pulse industry at the Dubai Bühler Group, Euromonitor, Tetra Pak, national and international experts to World Trade Centre, which hosted over The Good Food Institute, the Northern speak about their areas of knowledge 2,500 international food brands. “It was Crops Institute, Wenger, Corvus Blue, with more than 2000 delegates from 25 a unique event held under the shadow Snack it Forward, and renowned countries in attendance. Participation of the pandemic, which continues to regional chefs discussed dairy and was not lost on the U.S. pulse industry: affect lives across the world,” said meat analogues, extrusion and milling Khurana. “This was the first large trade methods, flavor control, and consumer show of its scale to be held in-person, market outlooks, while emphasizing the allowing everyone a glimpse at life post-Covid.” The exhibit provided the opportunity to showcase the Harvest Tour video produced by the USADPLC in 2020, and despite reduced foot traffic and in-person attendance compared to pre-pandemic years, the USADPLC gathered more than 100 trade leads and generated over $500,000 at the event.

USADPLC Annual Report 11 TRADE BARRIERS: WORKING TO PROMOTE U.S. INTERESTS NEW USMCA TRILATERAL AGREEMENT all origins except for the United States, $12 billion per year. The E.U. Director which will remain at a 30% duty until General (DG) of Trade then issued a list In July 2020, the United States- December 31, 2020. “The 20% additional of potential retaliatory tariffs that could Mexico-Canada Agreement (USMCA) duty on U.S. lentils puts U.S. Suppliers be imposed on the United States, which went into effect, replacing the at a competitive disadvantage,” explains included U.S. lentils and chickpeas. To 25-year-old North American Free Trade CEO Tim McGreevy. “However, I expect Agreement (NAFTA). The USMCA was avoid the inclusion of U.S. lentils and touted to expand access to two of this announcement will result in an chickpeas on the EU’s list of retaliatory our key export markets, and to create opportunity to make additional sales tariffs, the USADPLC partnered with more jobs, fairer trade, and stronger of U.S. lentils to India before the end of the Global Pulse Confederation (GPC), economic growth for the U.S. the year.” Dalal added that responding the Spanish Pulse Association (ALE), to this opportunity is urgent, as “we and Brussels-based Grayling Firm INDIA TARIFFS OVERVIEW are selling lentils [into India] and can to submit a letter to the EU DG of sell more.” This tariff update coincided Trade public consultation. The letter From June through August, 2020, with the virtual trade mission to India, demonstrated the EU’s ‘substantial the Government of India (GOI) had hosted by the USADPLC in October of dependency’ on the U.S. pulse industry reduced the tariff on lentils in response 2020. In addition to other pulse crop for lentils and chickpeas, highlighting to an increase in demand for pulses sales, India buyers reported purchasing the U.S. industry’s varietals that are and a quickening depletion of domestic green lentils during the mission, in constant demand in countries like stocks due to the pandemic-induced planting a seed of hope that access to Spain, France, and Italy, and touting the lockdowns. That temporary tariff the India market will bloom once again nutritional and environmental benefits reduction expired on August 31, 2020. for the U.S. pulse industry. of lentil and chickpea consumption. In At the same time, the GOI reduced the November of 2020, the E.U. published tariff on U.S. origin lentils from 50% WTO AIRBUS AWARD: USA VS EU the list of U.S. products that would face to 30% (33%). Dry pea tariffs remained As part of more than a decade-long retaliatory tariffs in response to the at 50%, while the tariff on Chickpeas WTO’s October ruling. As a result of the remained at 77%. “Again, there is a dispute, in October of 2019, the World efforts of the USADPLC, GPC, ALE, and vast difference in duty on Canadian Trade Organization (WTO) ruled that Grayling, U.S. lentils and chickpeas were lentils and American lentils, which is the United States could impose tariffs not included on the list and would not not fair at all,” remarked Shakun Dalal, on up to $7.5 billion worth of European be facing an additional 25 percent tariff, long-time US pulse trade marketing Union (E.U.) goods in retaliation for representing a major win for the U.S. representative to India. Nearing the end unfair subsidies awarded to Airbus. The pulse industry, and protecting a market of October 2020, the GOI announced it U.S.-imposed tariffs included a long list where U.S. exports of lentils to the EU will extend the duty reduction set to of agricultural products from the E.U.. range between 40,000 to 50,000 MT per expire on October 31st, 2020 and will In response, the E.U. filed a successful year, and chickpea exports range from keep lentil import duties at 10% from complaint to the WTO charging that 30,000 to 40,000 MT per year. Boeing was unfairly subsidized to CHINA: 325 EXCLUSION Despite steep global competition and trade barriers exports to China of dry peas to China broke record history in 2020. With a value of nearly $39 million and a volume of 124,700 metric tons, the U.S. reclaimed the position of second largest dry pea supplier to China, securing a 4.3% market share in the country.

FINANCIAL PROFILE: IDAHO Idaho Pea & Lentil Commission Statement of Activities July 1, 2020 - June 30, 2021 Income Total A - Green Pea Assessments Actual B - Yellow Pea Assessments C - AWP Assessments $ 49,614 D - Lentil Assessments $ 276 E - Chickpea Assessments $ 20,119 O - Other Income $ 52,111 $ 151,498 Total Income $ 1,495 Gross Profit $ 275,113 $ 275,113 Expenses Administration $ 12,182 USADPLC Programming Services 5610 Administrative Services $ 32,820 5620 Domestic Marketing $ 58,496 5630 International Marketing $ 22,233 5640 Research $ 54,870 5645 APA/PHI $ 38,975 5650 Info/Gov Programming Services $ 45,737 Total USADPLC Programming Services $ 253,131 Outreach & Education $- Z - Other Expenses (NIFA Research Fund) $- Total Expenses $ 265,313 Net Operating Income $ 9,800 Reserves, July 1, 2020 $ 364,609 Income/(Change in Fund Balance) $ 9,800 Reserves, June 30, 2021 $ 374,409 12 USADPLC Annual Report

ID Commission IncomeIN, CFOYM2E02F0Y-22012,0T/2o1tal = $275,113 TOTAL GROSS INCOME = $275,113 Interest & Misc., Retail, $22 Green Pea, $1,473 $49,614 Yellow Pea, $276 AWP, $20,119 Chickpea, Lentil, $52,111 $151,498 Green Pea Yellow Pea AWP Lentil Chickpea FY20/21 ID COMMISSION (as of 8/2021): Interest & Misc. Jay Anderson, Chair Retail Dirk Hammond, Vice Chair Neil Heitstuman Levi Lustig Bruce Poxleitner Kendrick Webb Mark McGuire, UI DeIaDn oCf oAgm., emx oisffisciioon Expenses, FY 2020-21, APA/PCHI, TEoXtPaENlS=E$S 2FY6250,230/1213 $38,975 TOTAL = $265,313 Info/Gov't, $45,737 Administration, $45,002 Domestic Marketing, $58,496 Research, $54,870 International Administration Marketing, $22,233 Domestic Marketing ID Commission Net Income = $9,800 International Marketing Research USADPLC Annual Report APA/PCHI Info/Gov't 13

14 USADPLC Annual Report DOMESTIC MARKETING IN A TRYING YEAR FOR THE WORLD, PULSES REMAINED A CONSISTENT STAPLE WITH U.S. CONSUMERS As the world continued to evolve and pivot throughout the past year, the Domestic Marketing Department pivoted along with it and exceeded annual targets and objectives set forth for Fiscal Year 2020-2021. The interest and momentum around pulse crops and pulse products continue to grow with consumers – particularly flexitarians – who are interested in foods that are nutritious, versatile, and healthy for the planet as well. Now more than ever, American consumers are looking for nutrient- dense, shelf stable, and affordable sources of protein – and U.S.-grown pulse crops are the perfect fit. According to Innova Market Insights, more than 2,800 new products using pulse ingredients were launched in the U.S. in 2020 and by June 2021 there were already more than 1,300 new products launched using pulse ingredients and finding their ways to U.S. shelves and into consumers’ homes. Here’s a look back at a few highlights from the past year: GOOD NEWS FOR PULSE CROPS Social Media influencers like pulses.org website had more than 244k IN THE 2020-2025 DIETARY somethingnutritious gave pulses a shout-out visitors; and the campaign garnered 459 GUIDELINES FOR AMERICANS for their role in the new updated Dietary earned and paid media stories - making Guidelines for Americans (DGA). the year a great success indeed! In very exciting news, the term “pulses” was defined for the first time media stories, influencer programs, A few media story highlights from in the 2020-2025 Dietary Guidelines for and digital advertising. Whether it the year: Americans (DGAs), which was released was lifestyle media, food editors or in late December 2020. The newest regional publications like the Spokane • Real Simple: Pulses Are the version of the DGAs received an update Spokesman Review, media continued Protein-Packed Pantry Staple to the vegetable subcategory name to be a key conduit for sharing our You’ll Be Seeing Everywhere in from “Legumes (beans and peas)” pulses messaging with consumers. To 2021—Here’s Why to “Beans, Peas, Lentils” which will align with world trends, the Domestic help to educate consumers, health Marketing Department regularly • Men’s Health: The No. 1 Healthy professionals, and national feeding touched base with media contacts, Food You’re not Eating Enough programs on the importance of pulse offering them story ideas around of, According to a Dietitian crops. This new name will be updated in pulses as the perfect quarantine pantry the near future throughout all feeding staple, how pulses help readers keep • TODAY: Prepare for COVID-19's programs, including the National School a healthy body and mind, why pulses Next Wave: Stock your Kitchen Lunch Program and School Breakfast align with the plant-based movement with These Foods Program. In addition, the recent DGAs and more. Nearly 8 million consumers emphasize the “Beans, Peas, Lentils” were reached through influencer food group as a nutrient-dense choice relationships; nearly 4 billion were and encourage the consumption of reached through social media ads; the these foods throughout all stages of the life cycle. USA PULSES CONSUMER & MEDIA CAMPAIGN HIGHLIGHTS With a highly targeted strategy, the USA Pulses consumer and media campaign was a major success! As of June 2021, the campaign received nearly 5 Billion impressions - smashing the International Year of Pulses campaign record at 3.44 Billion - through

USADPLC Annual Report 15 2021 ANNUAL MEDIA EVENT led by USA Pulses, the National Pork campaign was nationally recognized and Board, and the US Sorghum Checkoff awarded the 2020 Gold Plate Award in As an extension of the ongoing – and recently welcomed the Grain the Community Collaborators category media program, we invited top-tier Foods Foundation as its newest partner. by the FMI Foundation. You can check media and nutritionist attendees Through this innovative partnership, the out the Powerful Pairings website and to join USA Pulses for an exclusive, domestic marketing department has resources here. virtual immersion event. Taking place expanded its reach by educating media, right before May’s Mediterranean Diet registered dietitian nutritionists, and 2021 VINE MEDIA EVENT Month – a popular time for consumers family-focused consumers through tv As a part of the 2021 Powerful to eat pulses – 18 top-tier media and segments, events, and trade outreach. nutritionist attendees heard from In September 2020, Powerful Pairings Pairings partnership, USA Pulses pulse growers and manufacturers launched an in-store retail activation participated in a six-week virtual series Aaron Flansburg, Steve Savell and John with 200+ KVAT Food City grocery stores, known as VINE - Virtual Influencer McDermott, as well as USADPLC/APA promoting the pairing of foods across Nutrition Events. Taking place in staff Tim McGreevy, Becky Garrison, the plate. And in January 2021, the February and March 2021, VINE was Madison Jacobson and expert Chef a series of dynamic, digital events Barbara Alexander from the Culinary Institute of American, who covered the benefits of pulse ingredients, sustainability facts, a cooking demo, the ingredients’ role in the Mediterranean Diet and more. The event generated multiple social posts and stories– including hits in The Seattle Times, Eating Well, and TODAY. POWERFUL PAIRINGS CAMPAIGN GAINS NATIONAL RECOGNITION USA Pulses is going on its’ third year as part of the collaborative and innovative marketing initiative known as Powerful Pairings. This campaign is

16 USADPLC Annual Report DOMESTIC MARKETING CONTINUED 2021 TODAY'S DIETITIAN WEBINAR We have long seen RDs as effective third-party partners and educators to encourage consumers to add more nutritious pulses to their plates. As one element of our nutrition professional education program, we hosted a Select schools in Windham, Maine customized webinar in partnership were part of a HKC pilot project to with Today’s Dietitian, the top trade introduce pulse foods, like these publication RDs use for continuing Farmer's Meatball Grinders to Middle education credits. Titled “The Top 10 and High School students. Benefits of Pulses,” the webinar was viewed more than 4,300 times – above the viewership average – and has seen continued praise from RD partners who work with clients to create healthful that hosted 40 of the top nutrition National Pork Board, and Adam Moore, meal plans. communicators each week. USA Pulses a chef with the Sorghum Checkoff. co-sponsored one of the six sessions, Familiar attendees at the event included 2020 CIA HEALTHY KIDS titled “Pulling Back the Curtain on the Joy Bauer, from NBC’s Today Show, Toby COLLABORATIVE DGA’s Approach to Make Every Bite Amidor, from the FoodNetwork, Dr. Joan Count” which featured Heather Leidy, Salge Blake, from US News & World USA Pulses is a sponsor of the PhD, who served on the 2020-2025 Report, Amy Gorin, Editor for Prevention Culinary Institute of America’s Healthy Dietary Guidelines Advisory Committee, and Weight Watchers, Christopher Kids Collaborative year-round initiative alongside Becky Garrison, RDN, LD and Mohr, a consultant for Men’s Health and designed to both accelerate innovation Director of Domestic Marketing for USA WWE athletes, and Sally Kuzemchak, and deepen technical and professional Pulses, Kara Belke, RD, LD and Director a nutrition contributor for WebMD to expertise in K-12 school food. It is of Nutrition and Dietetics at the name a few. a unique and focused multi-year collaboration between school nutrition professionals, school chefs, suppliers,

USADPLC Annual Report 17 This U.S. pulses map is one of the many 2021 CIA MENUS OF CHANGE & CHEF OUTREACH VIA Infographics and educational materials DIGITAL ADVERTISING available to professional Chefs on the updated usapulses.org website. In late June, USA Pulses sponsored the annual Culinary Institute of America’s Menus of Change Leadership Summit: and other stakeholders to create and promote culinary Virtual Edition, an event that brings together foodservice driven, heathier foods for kids. USA Pulses was a returning operators from across the globe to discuss plant-forward sponsor of the annual event in December 2020, hosting a menu trends and applications. Held virtually, USA Pulses pop-up session on the main stage and eight themed expo debuted a new video on pulses and their role in a sustainable sessions during the two-week event, highlighting school food system. The event hosted nearly 800 foodservice district success stories from around the country about how operators and offered an array of dynamic presentations to successfully serve pulses in school meals during Covid-19. and culinary demonstrations, all centered around the plant- All attendees of the event received recipes, resources, and forward movement. information describing how to incorporate more pulses into school meals in their districts. USA Pulses sent mailers With a goal of reaching decision makers in the to interested attendees with a variety of pulse samples foodservice industry, the Domestic Marketing Department including chickpea flour, roasted and seasoned chickpeas, launched an ad campaign on Facebook and Instagram, pulse-based pasta, and pea-based snacks. targeting restaurant managers, culinary specialists, chefs and more. In total, the traffic ads reached 122K users, driving more NEW INDUSTRY TOOLKIT FOR SCHOOL FOODSERVICE than 7,000 clicks to the USA Pulses’ Chefs and/or the U.S. With almost 100,000 schools or institutions serving Suppliers webpage. This program surpassed the 1 million+ impressions goal, with 1.07 million+ total impressions. school lunches, school cafeterias have been referred to as “America’s Largest Restaurant Chain.” Schools serve USA PULSES WEBSITE UPDATES lunches to almost 30 million students each day. In order to support pulse manufacturers and companies, the Domestic USA Pulses is a go-to resource for consumers as well Marketing Department created a new Industry Toolkit for as industry professionals (e.g. chefs, R&D formulators, and School Foodservice to provide the pulse trade with the tools health professionals). And in order to stay up to date and needed to successfully work with school districts across the increase engagement, the USA Pulses webpages received country. The comprehensive toolkit includes the following some exciting makeovers throughout the past year. First, sections: 1) Overview of National School Lunch Program & the new USA Pulses Chefs page is intended for foodservice School Breakfast Program, 2) Overview of Pulses in School professionals and highlights how pulses fit into top consumer Foodservice, 3) Pulses Crediting in School Foodservice, 4) trends, tips for adding pulses to menus like blending Crediting Documentation, 5) Cooking Methods Information, techniques, and information on how and where pulses grow. and 6) Connecting with School Foodservice Directors. The newly updated Nutrition Professionals webpage highlight valuable insights and resources for nutritionists, registered dietitians, and other health professionals, showcasing how pulses are a nutrient-dense, allergen-friendly choice; and offers drop-down nutritional profiles by pulse type, and a collection of free handouts and resources. The Ingredient Innovation was a new page added to the USA Pulses website, and is a resource for R&D professionals interested in U.S. pulse ingredients. This page highlights the quality of U.S.- grown pulses, sustainability, trends, and free technical resources. Finally, a brand new page, Pulses & Sustainability, was introduced on Pulses.org (USA Pulses’ consumer-facing website). This page features drop-down evidence-based resources on pulse sustainability facts and ideas for how consumers can include pulses into their meals. Lastly, be sure to check out the Domestic Marketing’s “What Are Pulses?” video, which was made for social media platforms to educate consumers on pulse crops and the role they plan in human health and the health of the planet too.

FINANCIAL PROFILE: WASHINGTONWWWaaassshhhiiinnnggSSgttJtttooaauolttnnynee1mmPPP, uu2eeu0llnnl2sss0tteee-ooCCJCffurrnrAAoooeccppp3ttss0sii,vvCC2Cii0ttoo2iioee1mmmssmmmiiissssssiiiooonnn SJtualyte1m, 2e02n0t- oJufnAe c30t,iv20it2i1es Total July 1, 2020 - June 30, 2021 ATcottuaall ATcotutal Income $ Actu1a3l6,258 InAco-mGereen Pea Assessments $$ InABco-- mYGereelleonwPPeeaa AAsssseessssmmeennttss $$ 1361,,235387 $ 123516,,33,2535578 CBA---YAGeWrlelPoewAn PsPseeeaasAAssmssseeensstsssmmeennttss 122251,,63,3453357 DCB---ALYeWenlPtloilAwAssPsseeeasssAsmsmseeennsttsssments $ 12922425,,06,3455835 EDC---CLAehWnictPiklpAesasAessssmesesnmtsents $ 2192422,,09,6564833 OED---COLhtehincetkrilpIAnecasosAmessessemsesnmtsents $ 5289224,,69,0165438 ToOEta--lOCInthchioecmrkIpenecaomAsesessments $ 5588222,,66,9116443 GTorOtoas-lsIOnPtchrooemfriteIncome $$ 558822,6,61144 EGTxrooptsaeslnIsnPecrsofmite $$ 52852,7,60164 EGxArpodesmnsisnPeisrsotrfaittion 25,706 EAUxSdpmeAnDinsPiesLstCraPtiorongramming Services UA5Sd6Am1D0inPAiLsdCtrmaPtinriooisngtrraamtivmeinSgerSveicrveisces 3265,8,70006 U55S66A12D00 PADLodCmmPeinrsiostigtcrraaMtmiavrmekieSnteginrSvgiecrevsices 12386,,585030 1243886,,58,8560300 555666321000DInAotdemmrneianstitsiioctnrMaatlaivMrkeaeSrtkienergtvinicges 11242088,,58,5865303 555666342000IRnDetoesmrenaearstcitoihcnaMlaMrkaerktientging 1284058,,56,8856330 555666443050RAInePtsAeer/PnaarHctIihonal Marketing 18250,6,55833 555666454050IAnRPfeoAs/G/ePoaHvrcIPhrogramming 10805,5,61503 Ser5v56i6c54e05sInAfPoA/G/PovHIProgramming 100,510 SeTrov5tai6cl5eU0sSInAfDo/PGLoCv PPrrooggrraammmmiinngg SSeTerorvtvaicicleUessSADPLC Programming 512000,9,55190 SeOTruovttircaeelaUscShA&DEPdLuCcPatrioognramming 520,9590 SZOeur-vtOricetheaescrhE&xpEednusceastion 520,95009 ToZOta-ulOtErtehxaepcrehnEs&xepEsednusceastion 546,66500 TNoeZtta-Ol OEptexhrpeaertniEnsgxepsInecnosmese 54365,,6964590 NTeottaOlpEexrpaetinnsgeIsncome 53456,9,64695 RNeesteOrvpeesra, tJinuglyIn1c, 2o0m2e0 $$ 82375,9,90419 RInecsoemrvee/(Cs,hJaunlyge1,in20F2u0nd Balance) $$ 82375,,990419 IRnRecesosemerrvev/e(esCs,h,JaJununglyee13in,02,F02u20n02d1Balance) $$$ 88632357,,89,9540091 18 RInecsoemrvee/(sC, hJaunngee3i0n, F2u0n2d1 Balance) $$ 86335,8,95409 Reserves, June 30, 2021 $ 8U6S3A,D8P5L0C Annual Report

FY19/20 WA COMMISSION (as of 8/2021): Dave Carlton, Chair Jake Dewald, Vice Chair Kyle Hinrichs, Handler Nate Hahner Kirk Hansen Kevin Mader Mike Tee WA Commission Income, FY 2020-21, Matt Weber TotaIlN=C$O5M8E2,F6Y124020/21 Scott Steinbacher, WSDA TOTAL GROSS INCOME = $582,614 Interest & Misc., Retail, $23 Green Pea, $2,940 $136,258 Yellow Pea, $1,337 AWP, $25,355 Chickpea, $294,058 Lentil, $122,643 Green Pea Yellow Pea WAEXCPoEmNmSiEssSioFnYE2x0p2e0n/s2e1s, FY 2020-21, Total = $546,665 AWP Lentil Chickpea Interest & Misc. Retail TOTAL = $546,665 Administration, $62,506 Info/Gov't, $100,510 Domestic Marketing, $128,553 APA/PHI, $85,653 International Research, $120,583 Marketing, $48,860 WA Commission Net Income = $35,949 Administration Domestic Marketing USADPLC Annual Report International Marketing Research APA/PHI Info/Gov't NIFA Commodity Bd Ou treach & Edu cation 19

20 USADPLC Annual Report PCOOLMICMYU&NCICRAISTIISON Although 2020 may have been one of the strangest years the U.S. pulse industry would ever experience, 2021 is coming in as a close second. Currently, the industry is struggling to overcome seemingly insurmountable obstacles, despite only five years ago pulse crops being the talk of the town during the International Year of Pulses in 2016. In this last fiscal year, retaliatory tariffs continued to be an issue, and shipping disruptions plague the industry with some hope on the horizon that the pulse trade will see some relief in the form of administrative pressure on the shipping industry. During times of strife, often the work of the policy and member services arm of the USA Dry Pea & Lentil Council plays an important role in crisis management and communication efforts of the pulse industry. CRISIS HIGHLIGHT CRISIS STRATEGY & exports benefited from greater pulse OVER JUST FIVE MONTHS LAST COMMUNICATIONS consumption during the COVID-19 YEAR, PORT CONGESTION LED pandemic. Despite continued tariffs in TO A 17% DECLINE IN AGRI- Annually, the USADPLC sends key international markets, increased CULTURAL EXPORTS THAT growers, pulse trade members, and pulse consumption worldwide opened AMOUNTED TO $2.1 BILLION representatives of the USADPLC and other markets for U.S. product and IN LOST SALES, ACCORDING APA to Washington, D.C. to educate exports increased to India and China. TO NEW RESEARCH LED BY policymakers on issues affecting the 2020 was a great crop year, for the UC DAVIS ECONOMIST CAR- U.S. pulse industry. This year the U.S. yields were high and overall crop TER COLIN. IT FAR SURPASSED annual Washington, D.C. “Mission” was quality was excellent. Lower prices led THE LOSSES SUFFERED FROM held virtually using Zoom technology. to a depletion of supply as demand A TRADE WAR WITH CHINA, Hot topics during these meetings increased and the market rebounded. WHICH AMOUNTED TO ABOUT with policy makers and agricultural That’s the good news. The bad news $500 MILLION. agencies included shipping woes and is pulse exporters suffered greatly at fees, equality in research spending, the hands of international shipping groups, the national trade association, unfair trade practices, COVID relief companies when attempting to get the American Pulse Association, and package participation, disaster relief, their product to their international international and national coalitions. government pulse purchases, and crop customers (see Crisis Highlight). Many Their goals are to create a framework insurance payments. This year ARC and pulse exporters were forced to reduce upon which the U.S. pulse industry PLC payments to pulse growers totaled their labor force by 10-30%, despite the interacts with government officials nearly $19 million. backlog of shipments to customers who and agencies throughout the year, had to wait up to six months to receive encouraging U.S. policies that promote The U.S. government continued to shipments. These interrelated events and protect the interests of the U.S. provide agricultural relief in the form continue to drive policy efforts for the pulse industry from farm to fork. of grower payments and increased USADPLC. commodity purchases because of the As part of the Information/ global pandemic and continued trade POLICY SUPPORT Government programming, the barriers. The USADPLC worked with our USADPLC contracts with Gordley pulse industry D.C. consultants, Gordley The Info/Gov Committee works Associates in Washington, D.C. to Associates to make sure that pulse with all members of the USADPLC represent the pulse industry and industry members were represented throughout the year to develop policies provide timely information on key in those relief programs, such as that support increased pulse crop issues, technical policy advice and the WHIP+ disaster payments to our research, ensure equal support in Farm provide industry outreach to advance growers. Programs for pulse producers for Pulse the industry priorities. USADPLC producers, increase access to school efforts in establishing strong, long- THE INDIA STORY nutrition programs, and increase term relationships with policymakers trade opportunities. This committee continue to pay dividends in garnering In 2020, the government of India is comprised of a cross-section of pulse research funding authorized lowered import restrictions and the members representing state check- by the 2018 Farm Bill, as well as global tariffs, though it has yet to off organizations, regional grower positioning the pulse industry in the drop the additional 10% tariff on 2023 Farm Bill planning. the U.S. In 2019/20, the U.S. pulse

USADPLC Annual Report 21 PROMOTE & PROTECT THE PULSE at nearly 484,000 acres) – a total of During the week of February 8 through INDUSTRY nearly 1.1 million acres covered, and the 12, members of the USADPLC and the an average of 63% adoption. In 2020, APA met with Washington, D.C. policy The USADPLC Information and the PCRI program paid over $8.2 makers, staff, and Federal agencies as part of Policy efforts emphasize relationship million in indemnity payments to the first virtual D.C. “fly-in” visit. building and fostering efforts that pulse producers, compared to Yield increase advocacy among policy and Payments of $3.7 million. In July of 2021, the weekly \"Pulse Pipeline\" and the decision-makers in government. In pulse producers in Nebraska formed a bi-weekly \"Pulse Mill\" newsletters. FY2020, Congress increased the commission and joined the USADPLC The USADPLC alerts members of appropriation for the PCHI by another to make the PCRI program available to urgent matters through an e-blast $1 Million to a total of $5 million in their growers. called the \"Pulse Connection\" and government funded pulse research. survey members throughout the year The industry was able to increase GROWER & INDUSTRY OUTREACH on emerging issues. In addition, we funding for the Pulse Quality Network The USADPLC has continued publish a bi-annual magazine entitled by additional $1 million (reaching $2 \"Take Your Pulse,\" the only pulse million of our $6 million goal). This our social media industry outreach industry magazine in the nation; and new research endeavor is focused on campaign branded as the Puls-ED several industry statistical reports, establishing a network of scientists program, using social media channels including pulse crop production focused on researching quality to develop and share educational statistics, stocks-on-hand, pulse traits to match pulse crops to food materials, conduct surveys, and proide production maps, and pulse acreage manufacturer needs. other content relevant to the pulse reports. industry. The goal of the project was to PULSE CROP REVENUE INSURANCE create a community of pulse growers, TRIUMPHANT COMEBACK trade representatives, consultants, TThe Pulse Crop Revenue Crop and researchers to share content, One could summarize the last Insurance (PCRI) Program is owned experience, and knowledge to best few years for the U.S. pulse industry by the USADPLC and managed by minimize farming risk. Through a as “trying,” for sure. Thankfully, the the Risk Management Agency (RMA). combination of prepared content, safety nets—Farm Bill programs, crop Since 2014, the PCRI program has live, and video streamed events, insurance, trade relief and economic provided revenue-based coverage to the USADPLC continues to serve 269 stimulus programs—functioned the pulse growers providing them income members of the Puls-ED community way they were designed. The U.S. pulse protection for pulse crops similar and countless members of Facebook industry persevered through trade wars, to coverage provided to grains and and Twitter social media channels. a national drought, a global pandemic, soybeans. This year, North Dakota led and unfair shipping practices. The participation in the program with 85% PUBLICATIONS/MEMBER hard work of the industry over the adoption, followed by Washington SERVICES past few decades provided producers at 65%, South Dakota and Idaho at with farm program safety nets that 60%, and Montana at 54% coverage The USADPLC produces 78 industry include pulse crops, crop insurance (MT has the most acreage enrolled newsletters about pulse related topics, programs that protect pulse growers' income, and educational programs and networks that continue to keep the industry informed. As the industry closes the FY 2020-21, the potential demand for pulse crops is increasing, the Dietary Guidelines for Americans will provide a framework to increase use in Schools and institutions, and sustainable crops like pulses are increasing in importance. The pulse industry coalition will continue to work to improve the profitability of the entire value chain.

FINANCIAL PROFILE: WPGA Western Pulse Growers' Association Western PSutalstemGeronwt oefrsA' cAtsivsiotyciation StateJmulye2n0t20o-fJAuncet2iv02it1y July 2020 - June 2021 WPGA Revenue WPGAMReemvbenerusehip Income MembeIrdsahhiop MInecmombeership $ 11,753 IdWahaoshMinegmtobnerMsheipmbership $ $ 112,75,8363 WAasshsioncgiatoten MMeemmbbeerrsshhiipp $ $ 27,836,0375 AsOsothceiarteStMatemMbeemrsbheiprship $ $ 3,079575 TotOalthMereSmtabteerMsheipmbInercsohmipe $ 975 $ 43,666 Total MCeomnvbeenrtsihonipInIncocomme e $ $ 431,616,4650 OthCeornIvnecnotimone Income $ 11,450 Other IBnucioldmineg Rent-USADPLC $ 54,400 BuLiledgiinsglatRiveentA-UctSioAnDFPuLnCd $ $ 54,490,4010 LeCgoismlabtivne ARecntito-nARFuSnd $ $ 91,401,0000 CoMmibscinIencRoemnte-ARS $ $ 10,00-0 TotMalisOc tIhnecromInecome $ - $ 73,810 TotTaoltRalevOetnhueer Income $ $ 7132,81,9026 Total Revenue $ 128,926 WPGA Expenditures WPGA ExpLenegdailt/uIrnessurance/ Building Maintenance $ 7,624 LeCgoanl/vIennstuiorann/Pcero/ jBecutilEdixnpg Maintenance $ $ 7,612,1470 USACoDnPvLenCtioSne/rPvriocejesct Exp $ 1,170 USADPALdCmiSnerSveircveisces $ 21,316 $$ 2110,3,11162 AdDmoimneSsteircvMiceasrketing DoInmtersntiactiMonaarlkeMtianrgketing $ $ 10,131,8244 InRteersneaatriochnal Marketing $ $ 3,894,4486 ReAsePaArc/hPHI $ $ 9,468,7638 APInAf/oP/GHoI v Affairs $ $ 6,73,9806 TotIanlfoU/SGAovDPALffCairPsrogramming $ 7,906 $ 59,402 ToOtathl eUrSEAxDpPenLsCesProgramming $ 59,402 Other EDxeperencsieastion $ 55,912 TotDalepOrethcieartiEonxpenses $ 55,912 $ 55,912 TotTaoltEalxpOetnhdeirtuErxepsenses $ $ 5152,941,1208 ToNtaetl ERxepvenudeitures $ 124,$140,8818 22 Net Revenue US$A4D,8P1L8C Annual Report

WPGIANCInOcMomE FeY, F2Y02200/-2211 ToTtOaTl ARLevReEnVuEeN=U$E1=28$1,9228,5925 Building Rent- Combine Rent-ARS Other Income USADPLC $10,000 $9,410 $54,400 Idaho Membership Washington Membership Associate Membership Other State Membership Conv ention Income Building Rent-USADPLC Combine Rent-ARS Other Income Convention Income Associate Washington Idaho Membership $11,450 Membership Membership $11,753 Other State $3,075 $27,863 EWXPPEGNASESExFpYe20n2s0e/2s1, FY 20-21 Membership… TotaTlOETAxLpe=n$d68it,1u9r6es = $68,196 Convention/Project Exp Admin/Legal/ Ins/ Bldg Maint $1,170 $7,624 Info/Gov Affairs $7,906 APA/PHI Domestic Admin Services Convention/Project $6,738 Marketing $21,316 Exp $10,112 Admin/Legal/ Ins/ Research Bldg Maint $9,486 USADPLC Contracted Services International Admin Services Marketing Net Operating Revenue = $60,729 $3,844 Domestic Marketing International Marketing Re sear ch APA/PHI Info/Gov Affairs FY20/21 WPGA Board (as of 1/1/2021): Idaho Division: Washington Division: Kyle Osborn, 2nd Co-Chair Matt Weber, 1st Co-Chair Cole Riggers, 2nd Vice Co-Chair Braidy Haden, 1st Vice Co-Chair Randy Duncan Scot Cocking Richard Grant Ian Clark Dave Hawley Greg Ferrel Jack Hermann Aaron Flansburg Howard Jones Chase Janson Kevin Meyer Dan McKinley Riley Nelson Doug Morgan Todd Wittman Tim Schultz Dan Westacott 23 USADPLC Annual Report

24 USADPLC Annual Report PULSE RESEARCH Research for pulses is growing – can’t stop won’t stop! With topics covering plant breeding, genetics, crop management, sustainability, nutrition, and health, the government is seeing what pulses offer our planet and is investing more research dollars in our crops! PULSE QUALITY NETWORK COMMODITY BOARD PROVISION It has been a successful second year of the Pulse Our coalition continues to utilize the Commodity Board Quality Network (PQN), gaining an additional $1 million in Provision program that allows eligible commodity boards to government support. This brings the national team, Dr. propose specific topics of interest to the National Institute of Mike Grusak in Fargo, ND, Dr. Karen Cichy in East Lansing, Food and Agriculture (NIFA) - Agriculture and Food Research MI, and Dr. Craig Morris in Pullman, WA, to a total of $2 Initiative (AFRI) competitive grant process. Research projects million. The support for this network is strong as we work to that fit the commodity board topic undergo scientific review increase funding to $6 million total. These US Department through NIFA-AFRI and the strongest research that fits needs of Agriculture – Agricultural Research Service (USDA-ARS) of the industry will be co-funded by both the commodity scientists have jumped right into pulse research. Dr. Morris board and NIFA-AFRI. During the last cycle, the APA led along with postdoctoral researcher Dr. Sintayehu Daba health and nutrition topic was successfully awarded to Dr. published a paper in 2021 titled \"Pea proteins: variation, Mary Miles at Montana State University for the project titled, composition, genetics, and functional properties\". In this Therapeutic Impacts of Dietary Pulses on Bile Acids. Her review paper, they discuss the variation in pea protein project will investigate how eating lentils can help prevent content, composition and functional properties. The certain diseases like diabetes, type 2 diabetes, and obesity in contributing environmental and genetic factors are also a human study with consumption recommendations to end discussed. Dr. Cichy has recently expanded from beans users. Currently, the co-funding topic underway is all about to other pulses and focuses her research on topics like weeds and diseases to develop long-term strategies and cooking time, genetic diversity of seed protein and starch integrated pest management practices to address pulse crop composition, canning quality, and improving germplasm with pest management needs. Results of final awards for this topic superior end use quality. Dr. Grusak is administering all of will be announced in 2022. these dollars for USDA-ARS pulse research including the PQN as well as the Pulse Crop Health Initiative (PCHI). We look FUNDED RESEARCH forward to the addition of new staff to focus the ND Center on pulse quality. Editors Note: Dr. Craig Morris passed away The 2021 Annual Joint Research Review with the in September of 2021 and will be sorely missed as one of the Northern Pulse Growers Association (NPGA) went completely leaders in the Pulse Quality Network. virtual. The USADPLC awarded 10 continuing projects with a focus on breeding pulses, management, and quality. The PULSE CROP HEALTH INITIATIVE public breeders and variety trial programs for peas, lentils, and chickpeas were supported. These programs play an Continuous growth in dollars and support has been the story for the PCHI. This year, Congress appropriated $5 Over $500K in pulse research has been awarded through the National Sclerotinia million to the PCHI, an increase of $1 Million from 2020. The Initiative. USADPLC/APA have worked diligently to get Congress to appropriate the full $25 million per year authorized by the Farm Bill and continue to make progress. Click here to read more information about the USDA-ARS administered PCHI. “Expected outcomes of this Initiative are to discover and promote the health and nutritional benefits of regular pulse consumption, to enhance the sustainability of the global food supply through optimized production of pulses, and to increase the consumption of pulses through enhanced functionality of whole pulses and pulse ingredients in foods” (USDA-ARS). Currently, there are 10 breeding projects, 9 sustainability projects, 12 food technology projects, and 12 human health projects for a total of 43 projects supported through the initiative.

USADPLC Annual Report 25 MSU Faculty Mary Miles (left) heads up a $294,000 NIFA grant to research the therapeutic impacts of dietary pulses, such as lentils, on bile acids. reduce levels of pro-cancerous amino value on food labels is 16% higher for acids and enhance the response to lentils and 10% higher for chickpeas The USADPLC partners with the Northern Pulse chemotherapy in people. than Dr. Baer’s results suggest. Growers Association and South Dakota State University to provide an industry driven pulse The Idaho Specialty Crop Block This year a study supported by quality survey. Grant awarded to the USADPLC focused the APA and PepsiCo focused on pulse important role in varietal development and performance across growing on Pea seed-borne mosaic virus is near intake in U.S. consumers was published. regions. Public pulse varieties that the USADPLC has supported through the completion. This multi-institutional, Lead author, Diane Mitchell, discusses annual grant program return royalties to the USDA-ARS breeding programs to interdisciplinary study is being that pulse consumption may result in further support their research. To help with crop management, researchers conducted by Dr. Alexander Karasev, better diet quality with diets that are from the University of Idaho and Washington State University are University of Idaho, Dr. Julie Pasche, more nutrient dense than those lacking tackling weed management across North Dakota State University, and pulses. Read the full study here. the growing regions. The American Pulse Association (APA) has funded a Drs. Rebecca McGee and Clare Coyne The Pulse Crops Working Group study focused on health by Dr. David Montrose of Stony Brook University. He from USDA-ARS in Pullman WA. We (PCWG) led by Dr. Audrey Kalil (NDSU) aims to better understand if exclusive consumption of pea-derived protein, look forward to the results! Dr. Clifford and Dr. Mary Burrows (MSU), and Dr. compared to other protein sources, can Hall, South Dakota State University, Evy Jaconis (USADPLC) has developed has developed another year of the a fantastic podcast. The episodes industry’s annual Pulse Quality Survey. are hosted by Tim Hammerich and You can take a look at the report here. focus on the science and business This research and report help connect of farming field peas, chickpeas, and the harvested product to end-use. lentils. The show features topics in Dr. David Baer, USDA-ARS research, agronomy, and economics of completed his study supported by the pulses. Check them out at https://www. APA investigating the true caloric value growingpulsecrops.com. of chickpeas and lentils. The caloric

26 USADPLC Annual Report AMERICAN PULSE ASSOCIATION After over a decade of service, the American Pulse a Pulse Quality Network with funding of $2 Million in 2020. Association (APA) recognized Board Member, Greg Johnson This year, the APA participated with the USADPLC in an from Minot, ND as outgoing Chair. As a founding board member of the APA, Greg helped the organization create a active social media campaign that has exceeded the metrics pulse crops coalition that developed and established the of the International Year of Pulses in 2016. The APA completed priorities of the Pulse Crops Health Initiative and the Pulse a metabolic study measuring the actual calories provided Crops Products Program for School Nutrition. With his steady by pulses providing an opportunity to update the USDA leadership, the APA gained authorization for these two Nutrient Database. Finally, the APA participated in the annual programs in the Farm Bill, won funding of $2 Million for the DC Mission virtually and was able to participate in over 130 PCHI in 2018, and continued to add funding with $5 Million Congressional visits via Zoom® during the three-day period. in research in FY 2020. Greg participated in the International As a result of the work, the Congressional budget includes an Year of Pulses in 2016, an international marketing campaign increase of $1 Million for the PCHI and $1 Million for the Pulse that increased the awareness of pulses worldwide. The APA Quality Network. The Board elected Kim Murray to serve as successfully established and worked with USDA-ARS to create the new Chair. FY20/21 APA BOARD FINANCIAL PROFILE: APA American Pulse Association (as of 11/2021): Actual vs. Budget July 2020 - June 2021 Kim Murray - Chair Chad Nickels - Vice Chair Revenue Actual Beau Anderson A-National Organizations Dave Kirsten B-Individual Pulse Ind. Members 300,000 Pat Smith C-Pulse Food/Feed Manufacturers 38,750 Steve Savell, Advisor D-Ancilary/Associate Members 53,600 Cindy Brown, Advisor E-Individual Grower Members 3,000 Eric Bartsch (alternate) F-Research Fund Income 50 Marty Anderson (alternate) Total Revenue $ 395,400 GREG JOHNSON Gross Profit $ 395,400 Expenditures 4,871 Administration 170,000 USADPLC Contracted Services 140,290 Domestic Market Programming 113,629 APA Research Programming 150,000 NIFA Research Fund National Science & Adv. Meeting 241 Membership, Communications and Govt Ed 20,578 Printing & Marketing Materials Contingency Fund/ Foundation Res Project 0 Total Expenditures 0 Net Operating Revenue $ 599,609 Net Revenue $(204,209) $(204,209)

USADPLC Annual Report 27 APA Revenue - FY 20-21 Total Revenue = $395,400 REVENUE FY 2020/21 B-Individual Pulse Ind. TOTAL REVENUE = $395,400 Members, $38,750 A-National Organizations, C-Pulse Food/Feed $300,000 Manufacturers, $53,600 D-Ancilary/Associate Members, $3,000 E-Individual Grower Members, $50 A-National Organizations B-Individual Pulse Ind. Members C-Pulse Food/Feed Manufacturers D-Ancilary/Associate Members E-Individual Grower Members F-Research Fund Income APA Expenditures, FY 20-21 Revenue for FY 20-21 TTOoTEtAXaLPl EEEXNxPSpEEeNSnSFsEYeSs2=0=2$5$09/52991,690,9609 $(204,209) Domestic APA Research Market Programming, Programming,… $113,629 USADPLC NIFA Research Contracted Fund, $150,000 Services, $170,000 KIM MURRAY Administration, Membership, National Science $4,871 Communications & Adv. Meeting, and Govt Ed, $241 $20,578

28 USADPLC Annual Report MCOOMNMTAITNTAEPEULSE CROP FY20/21 MPCC Committee (as of 3/2020) •Ryan Bogar-Chair, Vida, MT •Paul Kanning, Vice Chair, Flaxville, MT •Colby Johnson, Producer, Conrad, MT •Jillien Streit, Producer, Chester, MT •Gordon Stoner, Producer, Outlook, MT •Matt Franks, Columbia Grain, Ex-Officio •Ben Thomas, Director, MSDA - Ex-Officio •Zach Coccoli, MSDA Advisor •Dr. Srekalawa Bajwa, MSU, Ex-Officio The Montana Pulse Crop Market Development Program was created by a vote of pea, lentil and chickpea producers following a process outlined in the Agricultural Commodity Research and Market Development Enabling Act. The Pulse Crop Market Development Program is administered by the Montana Department of Agriculture under the Montana Pulse Crop Committee. The committee invites proposals to fund market development projects to address Montana's pulse industry needs and opportunities. The USADPLC has followed the US Dollar Value of Montana (above) and North Dakota (pg 29) Dry Peas, Lentils, and Chickpeas compared to total US Exports for the last 10 years.

USADPLC Annual Report 29 The North Dakota Dry Pea & Lentil N&OLRETNHTIDLACKOOUTNACDILRY PEA Council (NDDPLC) was established in 1997 FY20/21 NDDPLC Members •Kim Saueressig, Chair, Dist.IV as a response to a rapid growth of dry pea, (as of 12/2020) lentil, and chickpea (pulse crops) acreage •Kevin Wolsky, District V during the late 90’s. North Dakota growers •Scott Sova, District I introduced legislation to establish the •Doug Goehring, ND Dept. of Ag, Council and create a 1% voluntary check- •Jeremy Huether, District II ex-officio member, off on the sale of dry peas and lentils. •Ryan Blumhagen, VC, District III •Matthew Arnold Sagsveen, The Council manages North Dakota Legal Counsel grower’s investment in the areas of marketing, research, education and promotion. The NDDPLC grants funding to several organizations to provide these services on a yearly, competitive basis. Two of these organizations are the Northern Pulse Grower’s Association, a regional commodity organization managed by a board of ten people elected from growers and trade members in the Northern Plains, and the USA Dry Pea & Lentil Council, a national organization that manages national interests of North Dakota growers, including international marketing of North Dakota pulse crops.

30 USADPLC Annual Report FINANCIAL PROFILE: USPLTA U.S. Pea & Lentil Trade Association Statement of Activity July 2020 - June 2021 Total Jul 2020 - Jun 2021 Revenues Membership Income $ 169,928 Processor Dues $ 2,675 Warehouse Dues $ First Purchaser Warehouse/Elev. $ 22,722 Exporter-Dealer Dues $ 15,600 Broker/Comm Dues $ Finished Product Processor/Manu $ 1,625 Foreign Associate Dues $ 34,585 Associate Dues 3,250 12,025 Total Membership Income 262,410 Building Rent 27,200 Convention Income 24,700 Other Income Total Revenue 711 Gross Income 315,021 315,021 Expenditures USADPLC Contracted Services $ 24,159 Admin Services $ 62,666 Domestic Mktg Programming $ 23,818 International Mktg Programming $ 58,781 Research $ 41,754 APA/PHI $ 48,996 Info/ Government Education $ (50,000) Other Exp-NIFA Grant $ 210,174 $ 28,029 Total USADPLC Contracted Services Projects/ Conv Support $ - $ 1,378 Supporting Activities $ - Meeting Expense $ 1,094 Property Tax $ 6,280 Legal $ 1,640 Building Maintenance/taxes Accounting $ - Insurance/legal $ 7,777 Contingency $ 256,372 Depreciation Expense $ 58,649 Total Expenditures Net Operating Revenue Net Assets, July 1, 2020 $ 540,388 Net Operating Revenue $ 58,649 Net Assets, July 1, 2021 $ 599,037

USADPLC Annual Report USPLTA Revenue 31 Building Rent, Convention Other Income, Total Income = $315,021 $27,200 Income, $24,700 INCOM$E7F11Y 2020/21 USPLTA Revenue Building Rent, CTonOvTenAtLioGn ROSSOINthCerOInMcoEm=e$, 315,0T2o1tal Income = $315,021 $27,200 Income, $24,700 $711 Total Membership Total Membership Income Income, $262,410 Building Rent Total Membership Total Membership Income Income, $262,410 Convention Income Building Rent Other Income FY20/21 USPLTA BOARD: Convention Income (as of 10/2021) Other Income Jim Groth, Chair Bert Brocke, Vice Chair Brett Melvin, Secretary EXPENSES FY 2020/21 Shawn O’Connell TOTAL = $256,372 BTorandyyRKoUoekSloPfsLTA Expenditures 2020-21 Net operating Revenue = $ 58,649 Tim GustaTvosotnal Expenses = $256,372 Eric Bartsch Jeff Winkler Property Tax, Building Andrew Fontaine $1,378 Maintenance, Projects/ Conv Support, $1,094 $28,029 Accounting, $6,280 Insurance/legal, $1,640 Depreciation Expense, $7,777 Total USADPLC Contracted Services, $210,174 Total USADPLC Contracted Services Projects/ Conv Support Supporting Activities Meeting Expense Property Tax Legal Building Maintenance Accounting Insurance/ legal Contingency Depreciation Expense

USADPLC Phone : 208 • 882 • 3023 2780 W. Pullman Rd. Mail : [email protected] Moscow, Idaho www.usapulses.org