2016_USADPLC ANNUAL REPORT

ANNUALREPORTU.S. Pulse industry representatives at SIALInternational Food Exhibition in Paris, France.2016 Bill Michaelson takes the Pulse Pledge at the 2016 Pulse Feast in Pullman, WA. USADPLC MISSION Generate a level of demand for U.S. pulse crops that provides a competitive return on investment for the entire U.S. pulse crop value chain. USADPLC VISION To bring together everyone in the pulse crop value chain to work on common goals to achieve growth in the U.S. Pulse Industry.2780 W. Pullman Rd. Phone : 208 • 882 • 3023Moscow, Idaho 83843 Mail : [email protected] www.usapulses.org

CONTENTS03 STATEMENT0406 FROM THE CEO1418 INTERNATIONAL MARKET22 DEVELOPMENT DOMESTIC MARKETING DEVELOPMENT RESEARCH PROGRAM INFORMATION / GOVT. AFFAIRS INDUSTRY FINANCIALS USADPLC / IDAHO / WASHINGTON / WPGA / USPLTA / APA USADPLC / APA STAFF CHIEF EXECUTIVE OFFICER DIRECTOR OF COMMUNICATIONS CONTACT INFORMATION Tim McGreevy Drex Rhoades USA Dry Pea and Lentil Council [email protected] [email protected] 2780 W. Pullman Road Moscow, Idaho 83843 VICE PRESIDENT OF MARKETING ASST. MARKETING MGR Pete Klaiber Tayebeh Soltani Phone (208) 882-3023 Fax (208) 882-6406 [email protected] [email protected] INDUSTRY WEBSITE VICE PRESIDENT OF RESEARCH & EXECUTIVE ASSISTANT www.usapulses.org MEMBERSHIP SERVICES Sarah White Todd Scholz CONSUMER WEBSITE [email protected] [email protected] www.cookingwithpulses.comDIRECTOR OF DOMESTIC MARKETING USA DRY PEA & LENTIL COUNCIL www.pulsepledge.com Jessie Hunter EXECUTIVE BOARD OFFICERS 2015/16 [email protected] JOE BLOMS, MONTANA OFFICE & AUDIT MANAGER Chairman Mike Shelton PAT SMITH, IDAHO [email protected] Vice Chairman MEMBERSHIP SERVICES DIRECTOR BEAU ANDERSON, NORTH DAKOTA Kim Monk Secretary / Treasurer [email protected]

TIM MCGREEVYUSADPLC/ APA CEO2016 will go down in history stemming from this event was Due to our efforts demand foras the beginning of a pulse staggering. Bloggers were pulses is growing.revolution. The International eager to share their newfoundYear of Pulses (IYP) provided knowledge with their reader The International Year ofour industry the opportunity base, and the resulting media Pulses kicked off a movement.to reintroduce pulse crops coverage continued well into Moving into 2017, we willto our consumers at home the year. continue to fan the flames. Inand around the world as 2016 we set the groundworkthe Future of Food. IYP Familiarity with the term to firmly establish pulsesprovided an opportunity to “pulses” is growing. In as the plant-based food ofwork together to launch the November 2015 we conducted choice, and moving forwardbiggest marketing campaign a consumer research poll that we will build on our successever undertaken in the pulse showed only 6% of consumers to grow the pulse sector in theindustry. The results of this associated the term “pulse” United States and around thecollaboration have been with dried peas, beans, lentils world.astounding. and chickpeas. In June of 2016 we held a follow-up Sincerely,Going into this campaign, study, which showed thatwe set a goal of achieving 26% of consumers correctly Tim D. McGreevy, CEO500 million consumer associated the word “pulse”impressions through media with our crops. Our efforts areoutreach. By the end of paying off.November 2016 we havereached over 3.2 BILLION 2016 also marked the officialmedia impressions. Articles launch of the global pulsefeaturing pulses have been brand. Food manufacturerspublished in the Washington worldwide may now use thisPost, Huffington Post, San brand on their pulse products,Francisco Chronicle, Cooking indicating to consumers thatLight and more. CBS Morning their product is a healthy andRounds even aired a segment sustainable choice.highlighting the messagingfrom our campaign. Our story This year, pulse flourscontinues to gain traction with were added to the USDAkey media outlets, as well as Food Buying Guide forwith the blogging community. Child Nutrition Programs – something our industry hasIn January we held our West worked toward for years. InCoast Launch at the Culinary 2016 our industry also sawInstitute of America in Napa, the development of a 10-yearCalifornia. Media, bloggers research plan for pulse crops.and industry membersspent two days producing a Together we have successfullyvariety of innovative dishes placed pulse crops as a topusing pulses. The response food trend in North America. 3

Pakistan trade team gives a thumbs up to U.S. pulses in Bismarck. 2016 Accomplishments INTERNATIONAL MARKETINGPROMOTIONInbound Trade TeamsUSADPLC hosted four trade team visits to the U.S.• A Spain trade team of four major pulse buyers visited on August 16-23. The team met with eight US suppliers, including companies based in Montana, Idaho and Washington. The team also reviewed lentil varieties now in development and was honored at the National Lentil Festival.• An India trade team was here on September 5-15, with nine companies represented. The team members called on pulse suppliers in North Dakota, Montana, Idaho and Washington, meeting with a total of eleven US companies during the trip.• A team of Pakistani buyers was here on October 2-13, meeting with suppliers in Minnesota, North Dakota, Montana, Idaho and Washington.• Lastly, a China team visited on October 16-25, traveling to North Dakota, Montana, Idaho and Washington, and meeting with nine US suppliers.For all four teams, time was set aside to allow for one-on-one meetings between buyers and sellersto promote stronger buyer/seller relationships and to encourage open dialogue on needs andcapacities. We conservatively estimate that US suppliers booked over $10 million in sales duringthese visits.Outbound Trade Teams/Trade ShowsThe Council participated in seven major trade events in 2016, including the SIAL trade show inCologne (the largest food trade show in the world), the India Pulse Conclave in Jaipur, the Gulfoodshow in Dubai, the USDBC Pulse Congress in Mexico, and both Food Ingredients China and Foodand Hospitality China in Shanghai. In aggregate, these activities generated over three hundredtrade leads for US pulse suppliers. 4

For 2015-16, USADPLC was able toaccess $1.4 million in USDA exportpromotion funds, allowing us toundertake a wide variety of activitiesin overseas markets. With exports in2015-16 taking 64% of our 2015 peaproduction, 92% of our lentil productionand 52% of our chickpea production,international marketing is a key elementin our industry’s growth.U.S. Pulse industry representatives at SIALInternational Food Exhibition in Paris, France.MARKET DEVELOPMENT MARKET ACCESSU.S. exports of dry peas, lentils and USADPLC was in regular contact with USDAchickpeas totaled more than $500 million in APHIS officials and USDA/FAS staff based in2015-16, setting a new record. Export values New Delhi to work on various trade accessfor all three crops rose above the levels issues in our our largest export market, India.of 2014-15, with pea export sales up by India continues to require attention vis-à-vis the22%, lentils by 18% and chickpeas by 41%. fumigation of US pulses, clarification of new IndiaIndia remained our leading export market, rules on import permits, and PSC ‘additionaland sales to India were driven higher as declarations’. We also worked on trade barriersIndia’s poor domestic harvest forced them to in Brazil, Colombia and Senegal in the past year.increase pulse exports. But we also saw goodgrowth in Mexico and South America as wellas Pakistan and China. 5

DOMESTIC MARKETINGThe USADPLC and APA Domestic Marketing program engagedin a variety of programs and projects in the promotion of theInternational Year of Pulses and U.S. specific outreach. Theultimate goal of the Domestic Marketing program is to increasedemand and consumption of United States grown pulses.2016AccomplishmentsCONSUMER OUTREACH & ENGAGEMENTU.S. PR & Media Promotions• National Lentil Festival• National Split Pea Soup Week• Consumer Outreach: US Social Media -Increased Facebook Fans from 64,491 to 224,389 -Twitter Followers 709 to 7683 -Instagram Followers to 3718• Redesigned CookingwithPulses consumer website• Translated IYP factsheets into Spanish• Established outreach table at the monthly Farmer’s market in Moscow Idaho to be used as template for other farmer’s markets, including local chefs and presenters. 6

2016PCRam&pMaiegdniaInternational Year of Pulses• IFIC Booth: USADPLC/APA sponsored a booth at the 2015 International Foodservice Editorial Council annual conference (IFIC), attracting a group of 180 top foodservice trade publications and brand representatives. Maxwell PR and the USA Dry Pea & Lentil Council/American Pulse Association hosted a breakfast activity station and participated in meetings with editors from targeted trade publications.• East Coast Launch: The International Year of Pulses officially kicked Chef Seamus Mullen at Public off for North American media on November 18, 2015 with Restaurant in NYC for the East renowned chefs showing off the versatility of pulses –Over 100 Coast Launch of IYP. media members, bloggers, influencers, pulse growers and industry representatives attended.• Sackler Institute Conference: “Little Beans, Big Opportunities” examined the contribution of pulses in healthy and sustainable diets, how pulses can make significant impacts on public health, and explored opportunities for enhancing these benefits broadly through food system innovations. Following the Sackler event a group of pulse research and pulse industry stakeholders, including USADPLC/APA met at the New York Academy of Sciences to discuss how to align research strategies among various entities.• Global Pulse Day, January 6, 2017: For this Global Celebration of Pulses we replicated the design of the NYC launch event at the Black Cypress restaurant in Pullman, WA, promoted as a Pulse Feast. Over 100 pulse industry representatives, community members, and media professionals attended.• West Coast Launch: Hosted at the Culinary Institute of America in Napa Valley, the USADPLC/APA brought top-tier West Coast and national media, influencers and bloggers to educate and excite them about pulses. The participants in this two-day event attended educational sessions and worked in the kitchens of the CIA with top chefs and the targeted influencer group, and share their personal pulse experiences and knowledge. Participants posted 160 posts during the event reaching an estimated 7 million viewers all linking back to #pulsepledge or #lovepulses. Grant funding from the Idaho State Department of Agriculture supported this effort.• Love Pulses Global Product Showcase: The Global Pulse Confederation (GPC) and its partners (USADPLC/APA) hosted the LovePulses Product Showcase, a global competition that encouraged the development of novel food products containing pulses as core ingredients. The global showcase featured pulse innovations created by winning teams from different regions around the world. The US semi-finals were held at the Institute of Food Technologists Expo July 2016 through the Research Chef Association’s Student Culinology Competition. Grant funding from Montana’s Specialty Crop Block Grant Program supported both these events.Domestic Marketing continued on the following page. 7

DOMESTIC MARKETINGCONTINUEDFOOD INDUSTRY OUTREACH: R&D CHEFS AND SCHOOLNUTRITION PROFESSIONALS• Research Chef Association Student Culinology Competition: The USADPLC/APA Sponsored event saw six teams from around the world compete in the final competition. The teams from Kansas State University and Southern Minnesota State University were selected to represent the U.S. at the Global Pulse Product Showcase at IFT July 2016.• Institute of Food Technologists : At IFT 2015, Pulse Canada and USADPLC co-sponsored the Cooking Up Science event that would be the venue for the 2016 Love Pulses Product Showcase. The collaborative Pulse Brand joint booth included the Northern Pulse Growers Association in promoting the Pulse brand at a joint booth at the Institute of Food Technologists meeting. USADPLC/ APA hosted a special reception for the Love Pulses Global Showcase participants and pulse industry with 152 leads generated from this event. Health & Nutrition Promotion & Outreach to Health Researchers & Nutritionists Experimental Biology conference in San Diego April 2-6 The intent of the pulse related events at Experimental Biology--the annual meeting of six sponsoring societies including nutrition that draws in 14,000 scientists and exhibitors--was to inspire new research on human health benefits of pulse crops. With the strong showing at the lunch presentation as well as the oral and poster presentations, pulses did make an impact on the event spotlighting the need and potential opportunities for pulse crop research.USA School Meal Program outreach andeducationThe Great School Lunch contest: Powered by Pulses was sponsored by the USADPLC/APA andBush Brothers. Teams of 4th–8th grade students and 9th–12th grade students were challengedto create an exciting new lunch featuring beans, dry peas, lentils, and/or chickpeas, withcash prizes for the winning teams’ school nutrition program.See website: www.greatschoollunchcontest.com 8

NORTH AMERICAN MEDIA CAMPAIGN:This was a collaborative social media effort between USADPLC/APA and Pulse Canada toincrease awareness about the term pulses, encourage North Americans to commit to eatingpulses at least once a week for 10 weeks by taking the Pulse Pledge, thus generating buzzabout IYP and pulses in general. The Portland, Oregon based PR firm Maxwell PR wasselected to conduct this campaign that included digital banner advertising, social mediainfluencer and ambassador outreach, social media advertising & engagement and uniquecontent and recipe development. Note in the following table the campaign surpassed nearlyall end of year goals several months early. CAMPAIGN EVALUATIONS AS OF JUNE 30th, 2016: (CA) Indicates Canada millionDomestic Marketing continued on the following page. 9

DOMESTIC MARKETINGCONTINUEDCONSUMER RESEARCHTo guide and refine the NA Consumer Outreach Campaign Pulse Canada and the USADPLC/APA contracted with QQuest, Kelton, and Euromonitor to conduct various consumer researchprojects.• QQuest Adcept Sessions: These started July 2015 with the purpose of testing the ad concepts and materials developed to promote the Pulse brand.• Kellen Group Omnibus Survey Fall 2015 Kelton, a leading global insights company, conducted a short survey in November 2015 to 1,000 nationally Representative Americans 18 years and older. At baseline, only 5 % could correctly identify pulses as “ dry, edible seeds of plants in the legume family, which include chickpeas, dry peas and dry beans.” A followup QQuest survey in June of 2016 showed that number increased to 25% in the U.S. and 35% in Canada.• PULSE MARKET ANALYSIS: To obtain insight into the NA market for pulses, the USADPLC/ APA and Pulse Canada contracted with Euromonitor, a worldwide consumer research firm to help understanding pulse consumption in the U.S. This analysis was completed May 2016. A new analysis is currently being conducted, and the USADPLC is confident it will reflect even higher recognition and awareness when the results are released.THE PULSE BRANDThe Pulse Brand is a critical component of a global strategy aimed at generating consumerawareness, stimulating demand and increasing consumption of pulses. The Pulse Brandprovides an identity and unifying symbol for the pulse industry as well guides consumers topulse ingredients, products, information, recipes and to healthy, nutritious, sustainable foodchoices. 10

The Pulse Brand is a global brand with the followingadministration structure:PULSE BRAND USE ON PACKAGED FOODCRITERIA The eligible pulse ingredient(s) mustONE represent 5% or more of the final formulation by weightCRITERIATWO Proportion by weight of the eligible pulse ingredient(s) must be representative of the first 5 ingredients of the formulationINDUSTRY OUTREACH Research Chef Association Conference (Denver, CO)These are the trade shows and events attended and/or • Breakout Session Sponsor &sponsored by the USADPLC / APA during 2015/16. Moderator: This breakout session, “Pulses! Innovative Ways to Put Beans, Peas, Chickpeas, and Lentils to Work as Egg Replacers” was sponsored by the USADPLC/ APA and Pulse Canada to teach chefs and food scientists Pulse Bakery & Snack Product Development Course at CIA Hyde Park, NY • Funded through Idaho State Specialty Crop Block Grant funds 33 food industry attendees from across the food industry experience lectures and hands-on opportunities to explore pulses and pulse flours in baking applications. Expanding the use of pulse crop ingredients in school meals • The USADPLC/APA conducted meetings with USDA officials in the Food and Nutrition Services department and Agricultural Marketing Services department. Were successful in getting pulse flours added to the national USDA school buyer’s guide. 11

UNITED STATESIDAHOACREAGE: 228,000PRODUCTION (MT): 198,585 UNITED STATES ACREAGE: 4,012,500 PRODUCTION (MT) 3,072,440WASHINGTONACREAGE: 290,000PRODUCTION (MT): 246,03112

PULSEMAPS MONTANA ACREAGE: 1,251,000 PRODUCTION (MT): 896,943NORTH DAKOTAACREAGE: 1,485,000PRODUCTION (MT): 1,086,274 13

RESEARCH PROGRAM2016 Research HighlightsBREEDING PROGRAM• Funded the USDA-ARS Grain Legume Genetics and Physiology (GLGP) Research Unit. This program has developed new varieties of dry peas, lentils and chickpeas for nearly 40 years.• Supported Western Regional trials coordinated by the Dr. George Vandemark, GLGP Research Unit. These trials provide standardized evaluations of advanced lines in growing regions representing WA, ID, MT and ND. Collaborators include Dr. Chengci Chen at MSU and Dr. Kevin McPhee of NDSU.• Supported State Wide Variety trials evaluating elite selection materials compared to commercially available varieties. Dr. Chengci Chen of MSU coordinated multiple locations representing different climatic regions in MT. Similar trials are coordinated in Washington by Dr. Steven Guy of WSU and in Idaho by Dr. Kurt Schroeder of U of I.The program released the following varieties and is increasing seed forcommercial production:Avondale Lentil, Richlea Class:• PVP Application was approved this year for Avondale with primary license holder WA State Crop Improvement.• Planted seed this year in MT. Produced 538,320 lbs of seed and expected 9,000 acres in seed production in 2016.• PVP allows Avondale lentil seed only to be sold as class of certified seed. Seed production should expand potential for this lentil variety in 2017.Small Green Lentil, Eston Class• LC 01302273E, Small Green Eston class Lentil was approved for release in February, 2016. 50-75 lbs of seed were available for 2016 planting season.• Release was approved and recommended for PVP by Variety Release Committee with WSCIA as licensee.Morena Lentil, Pardina Class:• Morena lentil, a Pardina type lentil with taller growth habit and good yield potential, is being planted with PVP.• Disease vulnerability to Stemphylium Blight restricts its acceptance but some processors are requesting it.• Variety still performs well and resistance to rhizoctonia is important for breeding program.Hampton Green Pea:• PVP Application for Hampton was approved by USDA-ARS this year.• WSCIA is primary license holder. License program is in place and seed is being increased by license holders. 14

Increase the body of research on health/nutrition, functionality, andproduction/sustainability of pulses.Hampton Green Pea (Continued):• 2015 production was hampered by chemical carryover and drought weather conditions in growing region. Pea production in PNW was reduced.• Seed production provided approximately 10,862 lbs. of seed on 10 acres. MT produced additional 538,320 lbs. of seed. Expect 2,500 acres of Hampton in 2016 season.• Hampton has confirmed resistance to two major virus diseases, Aphanomyces root rot tolerance and improved yield performance with excellent quality.• The variety performed well (in top 3 and 4) in the Statewide Variety Trials in MT and ND but variety was primarily selected for PNW.• Must be sold as a class of certified seed.Nash Chickpea, Large Kabuli Class• Chickpea CA04900843C, a café type Kabuli chickpea is currently released and in seed increase.• This PVP has been approved as well. WSCIA is also licensee from ARS and manager.• Well adapted to PNW with moderate resistance to Ascochyta Blight equal to Troy chickpea but not the same as Sierra.• Due to weather in Palouse over 2015 season, seed production was low.• Approximately 8,800 lbs. produced. WSCIA will continue to produce more seed for another year.Royal Chickpea, Kabuli Class• Royal chickpea is released in 2015 with Title V PVP request in process.• WSCIA is primary license holder.• Royal is centered for low rainfall zone with good performance proven in Wilbur, WA. Trials under 9” rainfall zone performed better than Sierra or Nash.• 21 acres planted with approximately 12,000 lbs. of seed. Need one more year of seed increase to meet orders for commercial seed.Research Reports are available at the following websites.• 2015 GLGP Research Unit Progress Report and Western Regional Variety Trials: http://www.ars.us http://www.ars.usda.gov/Services/docs.htm?docid=2436da.gov/Services/docs.htm?docid=2436• 2015 MSU Statewide Variety Trials Report: http://agresearch.montana.edu/earc/reports- pdf/2015%20Montana%20Spring%20Pulse%20Variety%20Evaluation%20Annual%20Report.pdf• 2015 ID Statewide Variety Trials: http://www.cals.uidaho.edu/edComm/pdf/RES/RES190.pdf• 2015 WA Statewide Variety Trials: http://variety.wsu.edu/2014/2016 Final Reports are available at the same web locations or at the websites listed below.• 2016 WA Statewide Variety Trials: http://smallgrains.wsu.edu/variety/2016-data• 2016 ID Statewide Variety Trials: http://www.uidaho.edu/extension/cereals/nidaho/variety-trials• 2016 MT Statewide Variety Trials: http://agresearch.montana.edu/earc/reports-pdf/2015%20Montana%20Spring%20Pulse%20Variety%20Evaluation%20Annual%20Report.pdfResearch continued on the following page. 15

Research Continued.GENETICS / GENOMICSThe program invests a portion of its funds in projects which continue to further the genetic informationavailable to breeders and other scientists in the Legume research community.• Funded research that continued to update the Cool Season Food Legume Bioinformatics Website, a portal for genomics information consolidating several genetics websites into a user friendly site. This portal allows private breeders to post public and private data to further the information available for the community. https://www.coolseasonfoodlegume.org• Marker assisted selection tools. The results of this work are incorporated into the database listed above. Genetic analysis tools were used to begin to map the location of Aphanomyces resistance in peas. This work is a result of the proposal titled “Harvesting the Genome”.• Both of the projects above are the US effort to participate in the International genome mapping projects for the lentil led by the CDC, Saskatoon, Canada and for the pea led by the Dijon Research Center in France.NUTRITIONAL INFORMATION / ANALYSISStrategically, the research plan lists Nutritional Research as a priority. Much of this work is led by theAmerican Pulse Association. The research programming also supported research efforts to analyze thelinks between genetics and nutritional components.• Dr. Girish Ganjyal, WSU presented his results of analysis of functionality relating to extrusion for dry peas by variety• Dr. Ganjyal also presented success of using steaming process to change properties of pea protein to enhance utilization in sports drink at International Food Technologists Convention.• Updated USDA Nutrition Database for Dry Peas, Lentils and Chickpeas based on samples collected in 2015. Utilized updated fiber analysis method to update this part of the USDA Nutrition Database. This information was last updated in the 1980’s.• Sponsored projects evaluating impacts of pulses on gut biome of mice using dry beans, peas, and lentils.PULSE QUALITY SURVEYThis year the USADPLC participated in the Pulse Quality Survey conducted for 2015 crop.• Published the report for the 2015 crop in Spring, 2016.• Collected samples, conducted analysis, and expect to publish 2016 report to be published.• Dr. Cliff Hall, NDSU was selected to replace Dr. Dil Thavarajah as the Pulse Quality Specialist at NDSU.CROP MANAGEMENT/AGRONOMICSA major part of the Research Program for the USADPLC is focused on Crop Management, DiseaseResearch and Weed Management. This year, the program continued to support efforts in root diseases ofpulse crops in both the PNW and the Northern Plains.Disease Management• Dr. Weidong Chen and Lyndon Porter worked on resistant Pythium strains found in the Palouse soils, identifying the pathogen and evaluating Ethoboxam (Intego®) as a seed treatment to control it.• Dr. Julie Pasche continued work to identify root pathogens in the soils of MT and ND. Her work focused on Fusarium Root Rot and validating a faster method of Identification of the disease.• MSU established a disease diagnostic laboratory in Bozeman and the USADPLC funding began to support the work of this lab.• USADPLC continued to support the Central Region IPM Center Pulse Disease Working Group led by Julie Pasche, working on Grower Education identification cards and collaborations about disease identification.Weed Management• USADPLC Research supports weed management trials focused on Chickpeas in 2016. Primary investigation looked at paraquat (Gramoxone®) and saflufenacil (Sharpen®) at “crack”, or as chickpea seedling breaks through soil, to give longer control prior to canopy.• Looked at effects of harrowing/incorporation and rolling pulses on weed control using moisture activated materials. No discernible improvement was found and in some cases weeds were stimulated. 16

CROP PROTECTIONWorking toward Section 3 national labels for pulse crops:• Flonicumid (Omega®) Fungicide for pulses: Residue research to establish tolerance led by IR-4 continued from last year. Provides effective control of Anthracnose in Lentils.• Bentazon (Basagran®) Herbicide in Peas—The coalition of funding from Pulse Canada, BASF Canada, and the USADPLC supported research conducted by IR-4 to develop a dossier to submit to Codex JMPR. The trials were conducted and the evaluation of the data continues by IR-4.• Pyridate (Tough®) Herbicide for Chickpeas—Began efficacy work to re-instate product in the US. Belchim, a Belgian company, is the new registrant of this older product. Tolerance is already established in US for chickpeas.• Fluazinam (Beeleaf®) Insecticide for pulses—Residue research to establish tolerance in pulses led by IR-4. Process to complete dossier to submit to EPA is continuing.• 2,4-DB (Butyrac®) Herbicide in lentils—This herbicide was universally determined to not provide crop safety at a level that provided weed control in lentils. Efforts to gain a label have been cancelled.• Monitored NAFTA TWG and the Regulatory Cooperation Council to harmonize MRLs in North America— Canada, US and Mexico.• Work continues to harmonize the saflufenacil (Sharpen®) MRL for lentils as a pre-harvest aid. The Codex MRL is now approved but the EU MRL is still not harmonized with the US, Canada, and Codex.• Established MRL priorities for USEPA on pulse crops for submission to Codex.• Supported the approval by Codex CPR of a Pulse Crop Group including dry peas, lentils, chickpeas and dry beans.INTERNATIONAL YEAR OF THE PULSE ACTIVITIESWith the platform of the International Year of Pulses, the USADPLC, Pulse Canada and the Global PulseConfederation hired Lois Rossi, former chief of Office of Pesticide Programs, USEPA to help coordinateefforts to reform Codex.• Results of this process include forming International Coalition of Commodity Groups in support of Codex Reform.• Establishing Codex Reform as a catch-up plan or bringing the number of Codex MRLs up to the number of MRLs established throughout the world.• Attended the Codex Committee on Pesticide Residues as member of the GPC—working to coordinate improving market access by improving Codex MRL process.• Represented USADPLC/ APA as acting co-chairman of the IYP Productivity and Sustainability Committee until Dr. Noel Ellis agreed to serve as chair.• Represented USADPLC/ APA at the Global Pulse Confederation Convention in Las Vegas. Participated as member of the IYP Productivity and Sustainability Committee and the Market Access Committee meetings.• Helped to establish the IYP Productivity and Sustainability goals for the IYP.• Represented USADPLC/ APA at the IYP Pan African Pulse Crops Research Symposium held in Zambia, Africa in February, 2016.• Joined with Pulse Canada to sponsor and support International Year of Pulse Event at the Sackler Institute in New York City focused on the nutritional impacts of pulses on World Health. OTHER ACCOMPLISHMENTS • Conducted annual research review including coordinating request for proposals, evaluation of presentations/ proposals, and conducting the meeting. Programming for research this year totaled $552,783 for the next FY 2016-17. Director of MSDA, Ron DeYong attended this year’s Review. • Served as member of National Sclerotinia Research Initiative, helping to direct research focused on Sclerotinia in peas, lentils, chickpeas and dry beans, sunflowers, canola and soy beans. • Participated in the US Priority Setting Committee for the US Codex MRL committee delegation. • Participated as a member of the Minor Crops Farmer Alliance working on pesticide issues for the Specialty Crops industry. • Todd Scholz, VP Research/Member Services was elected as Vice-Chair of the Commodity-Liaison-Committee, IR-4 • Participated in Crop Tours and sponsored activities across the region promoting variety development and producer education. • Dr. Jeff Rumney was hired as new Director of Research and began work in July, 2016. 17

INFORMATION / GOVERNMENTAFFAIRS 2016 HIGHLIGHTSOVERVIEWThe arm of the council that provides education and communications support for all the industrymissions is the Information/ Government Liaison Committee. It is comprised of a cross-section ofmembers representing state check off organizations, regional grower groups, the national tradeassociation, the American Pulse Association, and international and national coalitions that supportthe over arching goals of ensuring policy to promote and protect the pulse industry and increasingmembership in the pulse crop coalition.ACCOMPLISHMENTS IN 2016ENSURE POLICY THAT PROMOTES & PROTECTS PULSE CROPSThrough policy support and representation, the Info/Gov Committee promotes increased research activi-ties, as well as fostering relationships that lead to increased advocacy among policy and decision makerson a state and national level.• Continued to seek funding and support for pulse crops in farm policy through the implementation of Farm Bill 2014.• In Fall, 2015, pulse growers received payments under ARC-CO for dry peas, lentils, large chickpeas and in some cases, small chickpeas ranging from $4.00 to over $50.00 per acre for 2014 production. (Payments under this program are delayed for one year.)• USADPLC continued to work to gain appropriation funding in Congress for two programs authorized by the 2014 Farm Bill, the Pulse Crop Health Initiative and the Pulse Crop Products Program for School Meals.• February, 2016 Washington DC Mission. This year APA and USADPLC combined efforts again with 20 pulse growers and industry representatives from all pulse growing regions making visits with Congressional delegations and government agencies, such as FSA, FGIS, ERS; FDA, and, NASS.• Policies increasing support for Pulse Crop research in grant programs, ensuring equal support in Farm Program enactment for Pulse producers, and increasing opportunities for trade were a part of the DC Mission.• Pulse Crop Revenue Insurance Pilot. The USADPLC Team attended a meeting of the Federal Crop Insurance Commission to support Pulse Crops Revenue Insurance Pilot Program. FCIC questioned the amount of price data for the program particularly for chickpeas in the northern plains. Through education and pulse industry representation, the USADPLC was successful in continuing chickpea coverage for WA, ID, ND, and MT in the revenue crop insurance program.• IYP Pulse Feast. The USADPLC hosted a Washington DC pulse reception for policy makers and media, introducing congressional staff to the four pillars of pulse crops-affordability, versatility, health & nutrition, and sustainability. Many DC staff took the pulse pledge, a driving force of the North American pulse marketing campaign.• Conduct additional Washington, D.C. trips to monitor progress on funding the authorized programs in the 2014 Farm Bill and to explore funding of PCHI and the School PCPP through current grant programs like the Specialty Crops Research Inititiave, NIFA National Grants, and Foundation for Agriculture Research.• Contracted with Gordley Associates in Washington, D.C. to represent the pulse industry and provide timely information on key issues, technical advice on policy and provide industry outreach to advance the industry priorities. 18

U.S. Pulse Industry growers and representatives during theUSADPLC/APA 2016 Washington D.C. Mission. PROMOTE DEMAND & CONSUMPTION OF PULSE CROPS AND THE INCREASE MEMBERSHIP IN THE PULSE CROP COALITIONTo develop a support mechanism for International and Domestic Marketing efforts, through managementof consumer-based communication vehicles, and providing the necessary tools to aid our pulse marketingrepresentatives in their endeavors.• Participated in the Global Pulse Confederation Creating Awareness committee; helping to create an award-winning marketing / social media campaign for pulses. Helped produce videos introducing the four pillars of pulses on the www.pulses.org global website, as well as pulse grower and pulse feast videos.• Produced 76 industry newsletters on pulse related topics; a bi-annual magazine, Take Your Pulse, the only pulse industry professional magazine; and several industry reports, including a pulse crop production, stocks-on-hand, and pulse acreage reports. The TYP Magazines were both special International Year of Pulse editions.• Supported all 2016 International Year of Pulses activities, including participation in North American marketing campaign, global Creating Awareness campaign and the pulse brand campaign. Continued to represent US Pulse Industry on IYP thematic committees.• Served as key producer for IYP video, leader in IYP Market Access committee and key member of Food, Nutrition, Security and Innovation and Productivity and Sustainability committees.• CEO serves on IYP oversight committee as Treasurer and member.MARKET ACCESS BARRIERS & OPPORTUNITIES IN GLOBAL MARKETS• Continued to support efforts by the USDA Foreign Ag Service, US Trade Representative and other government officials to implement Free Trade Agreements relating to pulse crops in Columbia and Peru.• Successfully joined with other Ag Organizations to support passage of the Trade Promotion Authority for the President to facilitate free trade agreements with EU and with Asia.• Monitored activities of the US Trade Representative and other officials to insure pulse crops were considered in Pacific Rim Free Trade Agreement and the European Free Trade Agreement.• Continued education to policy makers of the importance of a Free Trade Agreement with Viet Nam and supported efforts by the administration to remove barriers to trade with Cuba.• Worked with USEPA, Pulse Canada, Canadian PMRA, CICILS-IPTIC, Codex Officials, and registrants to gain harmonized MRL for pulse crop priorities for crop protection products.• Continued to support US Pulse Crop priorities in support of Saflufenacil (Sharpen®) for harmonization of MRLs especially for pre-harvest use in Lentils.• Worked with US government officials to insure an extension of a waiver to phytosanitary restrictions in India which require fumigation with Methyl Bromide.• Continued to develop protocol for India through USDA FAS and APHIS to meet requirements concerning soil in pulse crops. Waiver extended while negotiations continue.Info/Gov continued on the following page. 19

INFO/GOV APPROPRIATION INITIATIVES & CROP PROTECTION REGULATIONS CONTINUED • Continued to support and represent the importance of key policies for the pulse industry including: 1. Pulse Crop Health Initiative 2. USDA-ARS Pulse Quality/ End Use Scientist 3. USDA-ARS Breeding Program Coordinator to be located in Sidney, Montana. • Supported continued funding for USDA-ARS in appropriations funding for 2015. • Continued to support federal funding of the PL 480 Program, use of Food Aid funds to purchase US grown products and continued use of pulses in the food aid program. • Congress approved 2015 budget; funding levels continued through 2016. Worked to increase appropriations for research and market support in FY 2016. • Funding levels for MAP, FMD, and PL480 remained at previous funding levels. • Policy development process for USADPLC includes input and approval from board meetings and annual conventions of member organizations—APA, NPGA, NDDPLC, MPAC, WPGA, ID PLC, WA PCC, and USPLTA. CROP INSURANCE / RISK MANAGEMENT EFFORTS • USADPLC provided price data for the RMA approved pilot for Non-Futures Revenue Crop Insurance Program for Pulse Crops in 2015/16 to establish harvest prices. Successfully negotiated continuation of chickpea coverage in North Dakota. • Gained option for 85% coverage and to include enterprise units for policies covering 2016 production. • In 2015, MT, ND, WA and ID producers elected for Revenue Protection on 843,272 acres, almost 49% of the total acres covered in the US and up from 42% in 2014. • Average payment for Revenue Protection for 2015 was $36.10 per acre for the US compared to $21.55 per acre for Yield Protection products. • Over the crop year, USADPLC continues to provide data collection service with the DataTracker program for WA, ID, MT and ND to support the establishment of harvest price. • Continued to work with contractor, Watts and Associates, to develop verified data elements for projected and harvest price for the pulse crop revenue insurance pilot program. • Worked with RMA to make sure the Pulse Crop Revenue Insurance Program continues into the future. • In addition to technical support for the program, continued to work with RMA, USDA, and Congress to support funding for Crop Insurance programs. TRANSPORTATION AND TRADE • Supported legislation that was enacted renewing Surface Transportation Board with reforms in methods for arbitration which improve representation of captive shippers for rail service. • Joined the Agriculture Transportation Coalition to gain leverage of pulse industry transportation issues. • Signed letters and petitions with other Ag shippers to highlight impacts of slowdowns at Pacific Ports. • Worked with Gordley Associates and Ag Coalitions to develop transporation policies and legislation to prevent impacts due to port consolidation and labor issues. • Supported improvements of the Columbia River channel to improve industry access to Pacific seaports. • Signed letters supporting USA trade agreements TTIP and TTP. • Worked with USDA FGIS to establish a grading office in Minot, ND. Collected survey of additional needs for grades in the industry. 20

ADDITIONAL REPORTS AND PUBLICATIONS• Produced the materials to support the DC visits including industry background information, policy positions, white papers all prepared in a presentation on iPads and the USADPLC Website.• Provided trip reports and market evaluations distributed to the member boards.• Maintain presence on the social media Facebook and Twitter and an internet presence on our national websites.• Supported the Annual Recipe contest and the promotion of the National Lentil Festival.• Published annual report for USADPLC.• Compiled statistical reports including Seeding Intentions, Seed Planted, Crop Production, Stocks on Hand and comparison reports with USDA-NASS.• Handled crisis communications for the industry.MEETING COORDINATION• Coordinated all meetings for the USADPLC National Board.• Coordinated the Industry Info/Government Affairs Committee Meetings.• Attended and supported NPGA Annual Meeting, Montana Pulse Days, and Western Pulse Growers Association Meetings held throughout the year. 21

USA DRY PEA & LENTIL COUNCILSTATEMENT OF ACTIVITYUSAPLC Board:Joe Bloms, Chair Brian Silflow Don Driscoll Andrew FontainePat Smith, Vice Chair Jon Stoner Howard NelsonBeau Anderson, Sec/Treas. Grant ZerbeScot Cocking Richard MickelsonKirk Hansen Marty AndersonUSADPLC Income TotalProgram Income--MAP, FMD, EMP $ 1,433,181Other Program Income-Grants $ 278,296USPLTA Contracted Services $ 459,861WPLGA Contracted Services $ 50,017ID Comm. Contracted Services $ 304,158WA Comm. Contracted Services $ 749,970APA Contracted Services $ 125,000North Dakota Contracted Service $ 300,000MPAC Contracted Services $ 1,250,000Other Income $ 30,799Pulse Brand Campaign $ 2,050CarryOver from FY 14-15 $ 4,983,332Total Income $ 4,983,332Gross Profit $ 232,065USADPLC Expenses $ 116,788Admin Office Operations $ 1,153,323Industry Office Administration $ 127,507Domestic Market Programming $ 26,708Domestic Adminstration $ 216,400International Mrkt. Programming $ 499,764International Administration $ 94,517Research Programming $ 303,750Research Administration $ 227,721APA Programming $ 199,926APA Salaries & Benefits $ 90,712Info, Educ, Gov’t Affairs Prog. $ 63,694Info/Govt Administration Capital Outlay Depreciation Expense $ 81,600Office Rent $ 1,433,181MAP,FMD,EMP Projects $ 278,297Other Grant Project Exp $ 5,145,953Total Expenses $ (162,621)Net Operating Income 22

AMERICAN PULSE ASSOCIATIONSTATEMENT OF ACTIVITYAmerican Pulse Association Board:Directors: Joe Cramer Sara RoseGreg Johnson, ChairHoward Jones Chad NickelsKim Murray Advisors:Jim Thompson Cindy Brown Jim Byrum Total FY 15-16APA Income A-National Organizations $ 300,000B-Individual Pulse Ind. Members $ 66,164C-Pulse Food/Feed Manufacturers $ 45,000D-Ancilary/Associate Members $ 5,000O - Other (Grant Income) $ 151,331Total Income $ 567,496APA Expenses $ 161,762Administration $ 170,482PHI Research Fund Expenses $ 34,725 WA DC Missions $ 17,870National Science & Adv. Meeting $ 25,247Membership Services & Meetings $ 18,563Printing & Marketing Materials $ 1,666School Food Promotion $ 196,522IYP Promotions Contingency Fund $ 626,837Total Expenses $ (59,342)Net Operating Income $ (59,342)Net Income 23

U.S. PEA & LENTIL TRADE ASSOCIATIONSTATEMENT OF ACTIVITY JULY 2015 - JUNE 2016US Pea & Lentil Trade Association Board:Justin Flaten, Chair Joe BlomsDon Driscoll, Vice Chair Marty AndersonShawn O’Connell, Secretary Eric BartschAndrew Fontaine Howard NelsonBert Brocke Total Jul 2015 - Jun 2016USPLTA Income A - Processor Dues $ 192,025B - Warehouse Dues $ 5,325C - First Purchaser Warehouse/Elev. $ 15,260D - Exporter-Dealer Dues $ 30,849E - Broker/Comm Dues $ 5,350F - Finished Product Processor/Manu $ 49,534G - Associate Dues $ 21,050H - Convention Income $ 138,348O - Other Income $ 29,074Total Income $ 486,815Gross Profit $ 486,815USPLTA Expenses $ 8,723A- Administration B - Building Maintenance $ 2,823C - Meeting Expenses $ 15,190D - Project Support $ 107,549E - USADPLC Contracted Services USADPLC-Administrative Contract $ 24,159USADPLC-Domestic Marketing $ 151,331USADPLC-International Marketing $ 50,549USADPLC-Research $ 93,353APA/PHI $ 94,696USADPLC-Info/Ed/Gov’t $ 45,773E - USADPLC Contracted Services $ 459,861Z - Contingency $ 300Total Expenses $ 594,446Net Operating Income $ (107,631)Other Expenses Depreciation Expense $ 2,075Loan Interest and Fees $ 2,035Total Other Expenses $ 4,110Net Other Income $ (4,110)Net Income $ (111,741)24

WPGA Tim SchultzSTATEMENT OF ACTIVITY Chase Janson Kirk HansenWestern Pulse Growers Association Board: Doug Morgan Matt WeberID Division: Jim Hermann Kevin MaderCole Riggers, Co-Chair Chad Heimgartner Allen DruffelJay Anderson, Vice Co-Chair Todd Wittman David CarltonDave Hawley WA Division:Brian Silflow Jon Olson, Co-ChairRon Renfrow Dan McKinley, Vice Co-ChairWPGA Revenue TotalMembership Income Idaho Membership $ 12,375Washington Membership $ 25,050Associate Membership $ 3,300Other State Membership $ 1,425Total Membership Income $ 42,150 Convention Income $ 16,380Other Income Building Rent-USADPLC $ 54,427Legislative Action Fund $ 9,096Combine Equipment Rent $ 10,000Total Other Income $ 73,523 Total Revenue $ 132,053 WPGA Expenditures Legal/ Insurance/ BuildingMaintenance $ 26,183Projects $ 16,216USADPLC Services Admin Services $ 21,316Domestic Marketing $ 9,969International Marketing $ 3,329Research $ 6,150APA/PHI $ 6,238Info/Gov Affairs $ 3,015Total USADPLC Programming $ 50,017 Loan Interest /Fees $ 4,072Depreciation $ 43,677Total Expenditures $ 140,165 Net Revenue $ (8,112) 25

ID PEA & LENTIL COMISSION STATEMENT OF ACTIVITYJULY 2015 - JUNE 2016 Idaho Pea & Lentil Commission Board:Howard Jones, Chair Dirk Hammond, HandlerRichard Grant, Vice Chair Michael Parrella, ex officioKevin MeyerPat SmithDennis Dau TotalIncome A - Green Pea Income $ 45,580.09B - Yellow Pea Income $ 1,909.11C - AWP Income $ 19,824.23D - Smooth Seed Pea Income $ 3,815.21E - Lentil Income $ 60,361.32F - Chickpea Income $ 176,597.67O - Other Income $ 3,235.94Total Income $ 311,323.57Cost of Goods Sold $ 949.504950 CookBook - COGS $ 949.50Total Cost of Goods Sold $ 310,374.07Gross Profit Expenses $ 11,214.87Administration $ 16,421.65Outreach & Education $ 0.00Payroll Expenses $ 0.00Unapplied Cash Bill Payment $ 304,157.00Expenditure USADPLC Contracted Services* Z- Contributions from Reserves Total Expenses $ 331,793.52Net Operating Income $ (21,419.45)Net Income $ (21,419.45)26

WASHINGTON PULSE CROPS COMISSIONSTATEMENT OF ACTIVITY JULY 2015 - JUNE 2016Washington Pulse Crops Commission Board:Dave Harlow, Chair Greg FerrelScot Cocking, Vice Chair Braidy HadenAaron Flansburg Dan Bruce, HandlerMike Tee Scott Steinbacher, WSDA RepNate Hahner TotalIncome A - Green Pea Assessments $ 112,929.78B - Yellow Pea Assessments $ 5,526.66C - Austrian Winter PeaAssessments $ 5,633.65D - Lentil Assessments $ 170,604.81E - Chickpea Assessments $242,297.79O - Other Income $ 3,005.02Total Income $ 539,997.71Cost of Goods Sold $ 949.50CookBook - COGS $ 949.50Total Cost of Goods Sold $ 539,048.21Gross Profit $ 17,450.07Expenses $ 18,749.65Administration Outreach & Education Unapplied Cash Bill PaymentExpenditure $ 0.00USADPLC Programming Services $ 749,970.27Z - Other Expenses $ 100.00Total Expenses $ 786,269.99Net Operating Income $ (247,221.78)Net Income $ (247,221.78) 27

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