2019_20 USADPLC ANNUAL REPORT

ANNUAL REPORT 2019-2020 Annual Report to the U.S. Pulse Industry for the fiscal year through June 30, 2020 The Genessee, Idaho farm of Howard Jones, an Idaho-based pulse grower and Lentil Family of the Year honoree The Noonan, North Dakota farm of pulse producer Scott Sova.

2 USADPLC Annual Report TCaobnlteenofts INTRODUCTION 4-7 4. CEO Letter 8-14 5. Staff & Boards 15-19 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 10. Idaho Commission Financials 11. ID: Income & Expenses Charts 12. Domestic Marketing INFORMATION AND POLICY FINANCIALS 15. Washington Commission Financials 16. WA: Income & Expenses Charts 18. Information & Policy

USADPLC Annual Report 3 20-23 PULSE RESEARCH & FINANCES 24-27 20. WPGA Financials 28-30 21. WPGA Charts 22. Pulse Research APA FINANCES / NORTHERN TIER 24. APA Finances 25. APA Income/Expense Charts 26. MPCC Profile 27. NDDPLC Profile USPLTA FINANCES, & CONTACTS 28. USPLTA Finances 29. USPLTA Charts 30. Contact Info

4 USADPLC Annual Report \"When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity.\" -John F. Kennedy, 35th President of the United States Tim McGreevy, domestic pulse food market through an effort to establish regular funding CEO our social media channels, while for health, nutrition, and end-use promoting pulse crops, ingredients, and research authorized by the Farm Bill When researching the quote above products to professionals in the food and administered by ARS with industry by President Kennedy, it is important and nutrition industry. The USADPLC assistance. We were successful in to note the President was only partly continues our work to expand the receiving $4.0 million from Congress correct. The second Chinese character pulse products available for crediting for 2020, effectively tripling our in the word \"crisis\" could be more in school food programs, as well as research budget. In addition, we succinctly interpreted as to mean, expanding the role pulse crops play were able to establish a Pulse Quality \"change point.\" I include the quote, in the new Dietary Guidelines for Network focused on measuring and because now that one of the most Americans. The goal of our domestic improving the quality of pulse flours, trying years of our times has drawn to marketing strategy is to increase the functionality of pulse ingredients a close, the transition provides both domestic sales of pulse crops by 1.0 and helping to develop new uses opportunity and a change point for our million metric tons by 2025. and new pulse products. Through industry. The new year is inoculated the newly formed Pulse Foundation, with hope. This fiscal year continued to be the industry launched a successful challenging for pulse export markets, grass-roots fundraising effort raising a The COVID-19 virus has certainly with continued trade conflicts in half-million dollars to fund the research changed our world in 2020. It has been key markets like India. However, needed to explore the links between a year of learning how to adapt and our international marketing efforts diet and an increase in incidences of change to meet the challenge. This helped open new markets for existing a rare heart condition called Dilated global pandemic allowed us to slow products. The USADPLC successfully Cardiomyopathy (DCM) in dogs. This is down, take stock and realize what is applied for MAP and FMD funding a long-term research effort to establish important in our lives. The whole world to reach out to new global buyers the causes of DCM. realized in 2020 just how important our through our 6 regional marketing food delivery system is to our health representatives. When the COVID-19 As we look ahead to a new year, and well-being, and it appears that pandemic brought trade missions to the industry has a lot of reasons for pulse crops play a valuable role in our a halt, our international marketing optimism. Trends for Plant Based global food security. team adapted, and brought buyers and Protein continue to increase the sellers together through virtual trade demand for pulses as an ingredient Although this year has been a missions. The USADPLC also embarked in the USA and the world. The search pretty wild ride, progress has been on a new synchronized global social for sustainability and better health made. We continue to lay the ground media strategy, launching social media continue to increase demand for our work for future growth in this great channels in key pulse markets managed great crops and the success of the industry. by our international marketing USADPLC and the APA to add funding representatives. to the PCHI will provide us the means Our domestic marketing efforts to prove pulses are the best source continue to focus on providing food Meanwhile, the USADPLC worked for both. The successes of the prior preparation information to a growing with the US Trade Representative’s year continue to move us forward and Office and the USDA to try to ease the set up a foundation for even greater burden on our exporters. Our industry achievements. will continue to push USDA to purchase pulse crops under the P.L. 480, Section All the best! 32 and the Food Procurement and Distribution Programs as we develop Tim D. McGreevy, CEO new export and domestic markets in this era of trade tariffs. We have also had continued success acquiring funding for the Pulse Crop Health Initiative (PCHI),

USADPLC Annual Report 5 2019/2020 renhaH etaN USADPLC / APA STAFF CHIEF EXECUTIVE OFFICER DIRECTOR OF MEMBERSHIP SERVICES USA DRY PEA & LENTIL COUNCIL Tim McGreevy Kim Monk EXECUTIVE BOARD OFFICERS AS OF JANUARY, 2019 [email protected] [email protected] VICE PRESIDENT OF MARKETING DIRECTOR OF RESEARCH ANDREW FONTAINE, WASHINGTON Jeff Rumney Evy Jaconis Chairman [email protected] [email protected] AARON FLANSBURG, WASHINGTON Vice Chairman VICE PRESIDENT OF RESEARCH & STRATEGIC OPERATIONS MANAGER MEMBERSHIP SERVICES Sandra Rumney PAUL KANNING, MONTANA Todd Scholz Secretary / Treasurer [email protected] [email protected] CONTACT INFORMATION DIRECTOR OF COMMUNICATIONS ASST. MARKETING MGR - GRANTS USA Dry Pea and Lentil Council Drex Rhoades Kara Russell 2780 W. Pullman Road [email protected] [email protected] Moscow, Idaho 83843 DIRECTOR OF DOMESTIC MARKETING ASST. MARKETING MGR - PR Phone (208) 882-3023 Becky Garrison Madison Jacobson WEBSITE [email protected] [email protected] www.usapulses.org INTERNATIONAL MARKETING REPRESENTATIVES Latin America North Asia / China India Mediterranean / Spain Europe Indo-Pacific Region Raul Caballero Lucy Dai Shakun Dalal David McClellan Johanna Stobbs Tim Walsh 2019 USADPLC NATIONAL BOARD VOTING MEMBERS Beau Anderson, Chair (ND) Bert Brocke (USPLTA) Brad Karlen (SD) Brian Silflow (ID) Howard Nelson (USPLTA) Gordon Stoner (MT) Andrew Fontaine, Vice Chair (USPLTA) Don Driscoll (USPLTA) Kim Saueressig (ND) Ron Williams (USPLTA) Aaron Flansburg, Sec/Treas. (WA) Nate Hahner (WA) Jay Anderson (ID) Paul Kanning (MT) 2020 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) 2019/20 AMERICAN PULSE ASSOCIATION (APA) NATIONAL BOARD Voting Members: Alternates/Advisors: Greg Johnson, Chair Marty Anderson Chad Nickels, Vice Chair Cindy Brown Howard Jones John McDermott Dave Kirsten Sara Rose Kim Murray

FINANCIAL PROFILE: USADPLC USA Dry Pea & Lentil Council $ Total July 1, 2018- June 30, 2019 $ $170,000 Income $ $299,079 APA Programming Services $54,077 USPLTA Programming Services $384,474 WPGA Programming Services $766,075 IDDPLC Programming Services $350,000 WAPCC Programming Services $837,800 NDDPLC Programming Service MPCC Programming Services $10,000 SDPCC Programming Services $1,927,770 MAP/FMD/EMP/ATP Grants Misc Income/ RMA Grant $80,538 Other Income $38,075 Total Income 4,917,888 Gross Profit $ 4,917,888 Expenses $290,724 Admin Office Operations $602,830 Research Prog/SCBG $479,184 APA Programming $522,374 Info, Educ, Gov't Affairs Prog w/RMA Grant $660,737 Domestic Market Programming $304,225 International Mkt. Programming $1,927,770 MAP/FMD/ATP/EMP Exp-Int Mkt Office Rent $81,592 Depreciation Expense 40,238 Total Expenses 4,909,674 Net Income/ Return to Reserves $8,214 6 USADPLC Annual Report

INCOME FY 2019/20 TOTAL INCOME = $4,917,887 USADPLC Income, FY 19-20 Misc Income/ RMA Grant Other Income APA Programming Services Total Income = $4,917,887 $80,538.00 $38,075.00 $170,000.00 MAP/FMD/EMP/ATP Grants USPLTA Programming $1,927,770.00 Services $299,079.00 WPGA Programming Services $54,077.00 IDDPLC Programming Services $384,474.00 SDPCC WAPCC Programming Programming Services Services $766,075.00 $10,000.00 MPCC Programming Services USPLTA Programming Services NDDPLC Programming $837,800.00 WAPCC Programming Services Service SDPCC Programming Services APA Programming Services Other Income $350,000.00 IDDPLC Programming Services WPGA Programming Services MPCC Programming Services Misc Income/ RMA Grant NDDPLC Programming Service MAP/FMD/EMP/ATP Grants EXPENSES FY 2019/20 TOTAL = $4,909,674 Net Change in Assets = $368,463 USADPLC Expenses, FY 19-20 Office Rent… Net Income with Depreciation = $8,214 Total Expenses = $4,909,674 Depreciation Expense MAP/FMD/ATP/EMP Exp-Int Mkt $40,238 $1,927,770 Admin Office Operations $290,724 Research Prog/SCBG $602,830 FY19/20 USADPLC BOARD (as of 8/2019) International Mkt. APA Pro gramming Pro gramming… $479,184 Beau Anderson, Chair (ND) Info, Educ, Gov't Affairs Andrew Fontaine, Vice Chair (USPLTA) Domestic Market Prog w/RMA Grant Aaron Flansburg, Sec/Treas. (WA) Pro gramming… $522,374 Jay Anderson (ID) Admin Office Operations Research Prog/SCBG Bert Brocke (USPLTA) APA Programming Info, Educ, Gov't Affairs Prog w/RMA Grant Don Driscoll (USPLTA) Domestic Market Programming International Mkt. Programming Nate Hahner (WA) MAP/FMD/ATP/EMP Exp-Int Mkt Office Rent Depreciation Expense 7 Paul Kanning, (MT) Brad Karlen (SD) Shawn O'Connell (USPLTA) Kim Saueressig (ND) Brian Silflow (ID) USADPLC Annual Report

8 USADPLC Annual Report MINATERRKNETAITNIOG NAL EUROPEAN UNION TRADE SHOW The 2019 /2020 marketing year can be only described as a year of A GREAT EXAMPLE - MEXICO contrast. The beginning of the year showed slow exports due to AND SOUTH AMERICAN TRADE unfavorable export opportunities due to tariff barriers in China MISSION and India. Increased demand spurred by the COVID-19 pandemic drove a large increase in domestic and export sales in the last The USA Dry Pea & Lentil Council half of the year. sponsored a trade mission of ten leading traders from Mexico, Colombia, THE OPPORTUNITY Our message is that US producers and Peru, accompanied by two USADPLC The export reports from USDA grow the highest quality pulses staff, to tour U.S. pulse crop facilities. available in the market. This message is The activity took place from October Foreign Agricultural Service for 2009/10 embodied in our Standard for Quality 19-25, 2019 with stops in Washington, to 2019/20 marketing periods, shows logo which is recognized around the Montana, and North Dakota. The team a peak in 2016 and the severe tariff world. visited processing plant and grain related drop in 2017 and 2018. The inspection sites and met with U.S. market has started to recover in the MARKET ACCESS - TRADE suppliers. The tour included 170 one- 2019/2020 marketing year. The 2019 MISSIONS, REVERSE TRADE on-one meetings with more than 16 top /2020 marketing year exports totaled MISSIONS, & TRADE SHOWS U.S. pulse producers, processors, and $436 million or 850,838 MT compared exporters throughout major U.S. pulse to the previous marketing year of $330 The most effect method of crop production regions. >>> million or 569,847 MT. Expressed on as a increasing the sale of US pulses is to percentage, this growth is 32% increase bring the US supplier and international in value and 49% increase volume. buyers together. Outbound trade missions take our products and US THE WORK - INCREASING THE industry partners directly to buyers of DEMAND FOR U.S. PULSES our products. There is no substitute for face-to- face meetings when it comes The USADPLC has responded to to building relations and listening to the opportunities in the marketplace. the needs of our customers. Likewise, Our strategy includes four pillars: reverse trade missions bring foreign increasing access for our US suppliers buyers to the US for personal visits to to international buyers, increasing producers, processors and exporters is demand by training food industry a very effective way to increase sales of experts in the use of pulses and pulse US pulses. The USADPLC participated in innovation, increasing demand by over 20 events all across the globe. promotion to consumers and protecting demand from tariff barriers. TRADE SERVICING The USA Dry Pea & Lentil Council has a comprehensive trade servicing program in the European Union, using a number of marketing tools, including

USADPLC Annual Report 9 training programs in pulse innovation in collaboration with Potatoes USA, including the use of lentils and dry peas U.S. Dry Bean Council, and the Almond and chickpeas in healthy recipes and Board of California, are implementing pulse ingredients in health baked goods a multi-year project in Thailand to help and snacks. reduce tariffs on important U.S. food TRADE SHOW IN MEXICO Activities like this trade show in the European Union trade show helped solidify U.S. pulses as the standard for quality. This effort helped drive increased pulse exports to the EU. trade visits, participation at major USDA Secretary of Ag, Sonny ingredients. Despite a sophisticated trade shows like ANUGA - Germany, and Perdue enjoying a lentil taco at a and export-oriented food processing SIAL – France. In addition, USADPLC cooking demonstration in Mexico. industry, Thai import tariffs on the uses electronic newsletters to provide ingredients involved in this project buyers with up-to-date information TRADE BARRIERS - WORKING TO range from 20-40 percent. These tariffs regarding planted area, harvested area PROTECT U.S. INTERESTS are a problem for Thai ingredient and production, as well as U.S. supplier importers and the food manufacturing contact information. This programming The work on protecting US grown sector as they make these ingredients, has resulted in a dramatic increase in pulses from trade barriers is never especially from the United States and U.S. dry pea, lentil and chickpea exports as exciting as a trade show or trade other developed markets, prohibitively to the European Union in 2019. In the mission, it is vitally important in expensive at a time when they are 2019/20 marketing year, overall export protecting our agricultural economies. popular in many new innovative food volume from 85,379 MT to 101,268 MT The Council has ongoing meetings in products demanded by consumers. an increase of 19% compared to the DC with our representatives and US previous year. Embassies in India, China and Europe. CONSUMER CAMPAIGN - The Council has worked cooperatively PROMOTING PULSES AROUND THE PULSE INNOVATION with the Global Pulse Confederation WORLD (GPC) and a respected foreign relations The primary effort in increasing firm in Europe to prevent US grown The USADPLC consumer campaigns demand is the training of food dry peas, lentils and chickpeas from use social media, store demonstrations professionals in the use of pulses in retaliatory tariffs arising from the and cooking demonstrations to promote healthy recipes. In Europe, the USADPLC Boeing – Airbus case. the consumption of US grown pulses. and US Dry Bean Council coordinates Social media in France has proven to be an extensive chef training program In India, the USADPLC is working a very successful method to promote called Legume Chef. This comprehensive the GPC and our embassy to address the US Standard for Quality campaign. program features chef training and phytosanitary restrictions, import duties Store demonstrations have been in an extensive use of social media and and restrictive quotas. These efforts many locations in Columbia and Peru. web resources to promote recipes. have had limited success as the US has The program reaches hundreds of rescinded the Favored Nations Status profession chefs who are developing with India with the Government of menu items for the most influential India raising targeted retaliatory tariffs restaurants and hotels in Europe. against our lentils and chickpeas. In Mexico and through South The USA Dry Pea and Lentil Council, America, the USADPLC foster growth in the export market by sponsoring many

FINANCIAL PROFILE: IDAHO WWaasshhiinnggttoonn PPuullssee CCrrooppss CCoommmmiissssiioonn SSttaatteemmeenntt ooff AAccttiivviittiieess JJuullyy 11,, 22001199 -- JJuunnee 3300,, 22002200 IInnccoommee TToottaall AA -- GGrreeeenn PPeeaa AAsssseessssmmeennttss AAccttuuaall BB -- YYeellllooww PPeeaa AAsssseessssmmeennttss $$ 5566,,999900 CC -- AAWWPP AAsssseessssmmeennttss $$ 11,,117788 DD -- LLeennttiill AAsssseessssmmeennttss $$ 44,,336655 EE -- CChhiicckkppeeaa AAsssseessssmmeennttss $$ 5577,,558855 OO -- OOtthheerr IInnccoommee $$ 115577,,339955 $$ 77,,664455 TToottaall IInnccoommee $$ 228855,,115588 GGrroossss PPrrooffiitt $$ 228855,,115588 $$ 1122,,000099 EExxppeennsseess $$ 3322,,882200 AAddmmiinniissttrraattiioonn $$ 8800,,771155 UUSSAADDPPLLCC PPrrooggrraammmmiinngg SSeerrvviicceess $$ 3344,,778800 55661100 AAddmmiinniissttrraattiivvee SSeerrvviicceess $$ 6644,,554433 55662200 DDoommeessttiicc MMaarrkkeettiinngg $$ 6611,,669966 55663300 IInntteerrnnaattiioonnaall MMaarrkkeettiinngg $$ 6611,,000022 55664400 RReesseeaarrcchh $$ 333355,,555566 55664455 AAPPAA//PPHHII $$ 55,,553344 TToo55tt66aa55ll 00UUSIISnnAAffooDD//GGPPooLLvvCCPPPPrrrrooooggggrrrraaaammmmmmmmiinniinnggggSSSSeeeerrrrvvvviicciicceeeessss $$ 5500,,000000 OOuuttrreeaacchh && EEdduuccaattiioonn $$ 440033,,009999 ZZ -- OOtthheerr EExxppeennsseess ((NNIIFFAA RReesseeaarrcchh FFuunndd)) $$ ((111177,,994411)) TToottaall EExxppeennsseess NNeett OOppeerraattiinngg IInnccoommee RReesseerrvveess,, JJuullyy 11,, 22001199 $$ 448822,,555511 IInnccoommee//((CChhaannggee iinn FFuunndd BBaallaannccee)) $$ ((111177,,994411)) RReesseerrvveess,, JJuunnee 3300,, 22002200 $$ 336644,,661100 10 USADPLC Annual Report

ID Commission IncomIeN,CFOYM2E0F1Y92-20019,/2To0 tal = $285,158 TOTAL GROSS INCOME = $285,158 Interest & Misc., Retail, $362 Yellow Pea, $7,283 $1,178 Green Pea, $56,990 AWP, $4,365 Chickpea, $157,395 Lentil, $57,585 Green Pea Yellow Pea AWP Lentil Chickpea Interest & Misc. FY19/20 ID COMMISSION (as of 8/2019): Retail Kevin Meyer, Chair Jay Anderson, Vice Chair Dirk Hammond, Handler Neil Heitstuman Kendrick Webb Michael Parrella, UI Dean of Ag., ex officio ID Commission Expenses, FY 2019-20, NIFA Commodity Bd, $50,000 ToEXTtPOaETlNAS=LE$S= 4F$4Y002330,01,909/92909 Outreach & Education, $5,534 Administration, $44,829 Administration Info/Gov't, $61,002 Domestic Marketing, Domestic Marketing $80,715 International APA/PCHI, $61,696 International Marketing Marketing, $34,780 Research Research, $64,543 APA/PCHI Info/Gov't ID Commission Net Income = $(117,941) NIFA Commodity Bd Ou treach & Edu cation USADPLC Annual Report 11

12 USADPLC Annual Report DOMESTIC MARKETING Despite a rapidly changing world in 2020, Domestic Marketing goals of the U.S. pulse industry exceeded annual targets and objectives set forth for Fiscal Year 19-20. According to Mintel, more than 1,700 new products using pulse ingredients were launched in the U.S. in 2019 and by the end of June 2020 there were more than 900 new products launched using pulse ingredients and finding their ways to U.S. shelves and into consumers’ homes. 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. USA PULSES SOCIAL & MEDIA Frances Largeman-Roth, RDN series garnered an average CAMPAIGN HIGHLIGHTS discusses how to incorporate pulses reach of 110% (74.42% higher as a part of the USA Pulses sponsored than industry average) This past fiscal year, the USA Satellite Media Tour held during • Over the course of the series, Pulses campaign exceeded a 2.1 billion National Nutrition Month. Cooking with Pulses content consumer reach through media stories, was viewed 165,274 times, with influencer programs, and digital broadcast outlets across the U.S. 43.21% of fans tuning in for at advertising. The U.S.-grown campaign least one video from the series garnered more than 250 major media snacking more than normal, 60% of • Instagram Stories drove 270 stories highlighting the versatility, consumers saying they are cooking at users to Cooking with Pulses simplicity, health, and nutrition of pulse home more, and more than 20% saying content and garnered close crops through top media outlets such they are eating healthier than they to 600 responses from fans as TODAY Online, PopSugar, EatingWell, usually do. looking for pantry inspiration Bon Appetit, LIVESTRONG, Forbes, Real Simple, Access Hollywood, The New York In response to Covid-19, the USA PULSES IN SCHOOL MEALS Times, CBS, and many more. In addition, Pulses campaign shifted gears to meet Last year, the US pulse industry the USA Pulses digital advertising consumers where they were at – in program drove growth on social pages their homes and cooking out of their launched a multi-year campaign to such as Facebook (358k followers) and pantries. New and engaging content generate awareness amongst school Instagram (19k followers), and to www. was developed (such as pressure- foodservice operators and students to pulses.org, which had over 500k unique cooking guides, pantry-staple and increase the use of pulses and pulse visitors this fiscal year. USA Pulses also freezer recipes, and more), and social products in school meals. With new partners with influencers, bloggers, and targeting strategies were revised to resources and recipes developed for RD ambassadors to reach consumers meet more consumers through social schools last year, the USADPLC/APA and to generate new content. This past platforms and influencer content. year, the influence program reach hit During April, USA Pulses launched and more than 3.2 million consumers! broadcasted Cooking with Pulses - three weeks of live cooking tutorials on COVID-19 CONSUMER SUPPORT Facebook to keep the social community inspired to cook with what they had Just as the world is looking a little on-hand as they practiced physical different than it used to due to the distancing. Insights include: Covid-19 pandemic, so are consumer routines and eating habits, according • Cooking with Pulses video to a recent survey conducted by the International Food Information Council. According to the 2020 Food & Health Survey, more than 8 in 10 Americans have altered their food habits as a result of Covid-19, with 41% of consumers under 35 saying they are

USADPLC Annual Report 13 Attendees in Plymouth, MN at the 2020 Pulse Flour Summit, a technical hands-on seminar hosted by the American Pulse Association, the USA Dry Pea & Lentil Council, Buhler, and Pulse Canada. kicked off this year’s promotions at In addition to the promotion of submit comments on a new FNS the 2019 School Nutrition Association U.S.-grown pulses and pulse crops in proposed rule, requesting full crediting Annual Conference – the largest annual school meals, the USADPLC/APA also be extended to pulse flours, pastas, gathering of school foodservice worked diligently on the regulatory breadings/coatings, and to any pulses supervisors, directors, managers and side of school meals to promote or products being served as a meat/ employees, followed by the 2019 the offering of pulse ingredients meat alternate in the NSLP. The CIA Healthy Kids Collaborative - a through the National School Lunch USADPLC/APA will be meeting with FNS year-round, invitational event that Program (NSLP) under the USDA Food staff in the late summer to reiterate accelerates innovation and culinary and Nutrition Service (FNS). In early these industry requests and more expertise in the National School Lunch 2020, the USADPLC/APA national staff regarding NSLP crediting. The new Program. The USADPLC/APA promoted worked closely with U.S. pulse industry FNS proposed rule is expected to be the success of pulses in school meals organizations and stakeholders to published in Fall 2020. by partnering with a well-known school foodservice influencer, Dayle Hayes Attendees in Plymouth, MN at the 2020 of School Meals that Rock, to launch Pulse Flour Summit. six recipe pilots across the country, showcasing new pulse-based recipes in school districts. These success stories were then shared on social media and in school foodservice Facebook groups. Other school foodservice initiatives and promotions included the redesign of www.usapulses.org/schools, which is loaded with pulse tips and resources for school foodservice operators, an SNA webinar on “U.S.-Grown Pulses in School”, trade publication outreach offering continuing education credits for industry professionals, and new CACFP resources for summer meal programs.

14 USADPLC Annual Report DOMESTIC MARKETING CONTINUED With the onset of Covid-19 in March March in Plymouth, MN at the new Buhler Food Application 2020, USA Pulses supported consumers Center. The Pulse Flour Summit attracted more than 90 through social media with new recipes, participants and was a co-sponsored event by the APA, the resources, interactive polls, and tips for USADPLC, Pulse Canada and Buhler. Attendees learned about using pulses during quarantine. the global outlook and market opportunities for pulse flours including the nutritional, environmental, and functional benefits; discovered the diverse applications for a range of end uses from meats to baked goods and pasta; and gained an in-depth understanding of pulse quality and processing, including a hands-on session at Buhler's brand-new Food Application Center to learn how milling technologies influence quality and functionality. 2019 FOOD & NUTRITION CONFERENCE & EXPO (FNCE) USA Pulses exhibited as Pulses.org at FNCE 2019 which took place in Philadelphia, PA at the Pennsylvania Convention Center from October 26-29, 2019. Organized by the Academy of Nutrition and Dietetics, FNCE is one of the world’s largest gatherings of Registered Dietitian Nutritionists (RDNs) that represent every major area of practice. RDNs counsel more than 20 million clients annually and are always seeking 2020-2025 DIETARY GUIDELINES FOR AMERICANS As a part of Covid-19 consumer ENGAGEMENT support, USA Pulses launched 3 weeks of LIVE “Cooking with Pulses” videos The 2020-2025 Dietary Guidelines for Americans (DGA) on Facebook, utilizing pulses and pantry review process has been underway the past year and the U.S. staples. pulse industry has been there every step of the way! The USADPLC/APA have been actively submitting written and oral comments to the DGA Advisory Committee to discuss the importance of pulses. The pulse industry’s goals are to increase the recommendation from 1.5 cups/week to 3 cups/ week and for pulses to be clearly defined in the new 2020 Dietary Guidelines. The 800+ page DGA report has been completed and has now been turned over to USDA/HHS to write the new 2020-2025 Dietary Guidelines. The USADPLC/ APA will continue to submit oral and written comments to USDA/HHS agencies to clarify the interests of the U.S. pulse industry as the new guidelines are written and released to the public in the coming months. TRADESHOW & EVENT HIGHLIGHTS 2020 PULSE FLOUR SUMMIT This year’s annual innovation summit took place in mid

USADPLC Annual Report 15 USA Pulses launched a new school exhibit hall; and 55% of attendees are involved in purchasing foodservice website, with new recipes, decisions. More than 831 leads were scanned; 7,000+ resources, testimonials, and crediting info handouts were taken by attendees on pulse tips and recipes for school nutrition operators and districts. for consumers, retail, foodservice, schools, and foodbanks; and more than 1,500+ cookie and pasta samples were advances and trends at the forefront of the food and served– all samples used a chickpea, lentil, or pea flour. nutrition field. There were more than 11,000 domestic and international food and nutrition experts attending the 2020 NRA NUTRITION EXECUTIVE MEETING conference; and FNCE statistics have determined that 90% To engage and educate top restaurant foodservice of these conference attendees spend 2-10 hours in the professionals on the benefits of adding pulses to their menus, the USADPLC/APA sponsored the National Restaurant Association’s annual Nutrition Executive Study Group (NESG) conference, which brings together registered dietitians, nutritionists, and industry professionals who oversee menu development at major national restaurant chains to discuss industry best practices, supply chain challenges, review trends and more. This intimate event included representatives for Bloomin’ Brands, Cracker Barrel, Dunkin’ Brands, Subway and Walt Disney Parks and Resorts. 2019 GOOD FOOD CONFERENCE Hosted by the Good Food Institute, the second annual Good Food Conference took place in downtown San Francisco and welcomed researchers, food industry, investors, and entrepreneurs focused on growing the plant-based meat and cultivated meat markets. USA Pulses sponsored a booth at the event, providing attendees with information on US grown pulses and US supplier information. Staff provided approximately 70 Retail & Suppliers Guides to attendees with interest in growing demand for pulse ingredients and their functionality. NLS FOOD EVOLUTION SUMMIT The 2019 Food Evolution Summit, hosted by Next Level Food Summits, was held in Indian Wells, CA and was a gathering of top-level global executives in cutting edge food industry and innovation. The U.S. pulse industry sponsored a booth showcasing U.S.-grown pulse ingredients to new product development directors, manufacturers, and R&D leaders. In February, USA Pulses sponsored a Webinar Wednesday through the School Nutrition Association, hosting Dayle Hayes, MS, RDN and several other school foodservice directors from across the country who sampled new pulse recipes in their school district.

FINANCIAL PROFILE: WASHINGTONWWWaaassshhhiiinnngggSSStttJJtttoooaaauulltttnnnyyeee11mmmPPP,, uuu22eee00lllnnn11sss99ttteee--oooCCCJJfffuurrrnnAAAoooeecccppp33tttsss00iii,,vvvCCC22iii00tttooo22iiieee00mmmsssmmmiiissssssiiiooonnn July 1, 2019 - June 30, 2020 AATTTccoootttttuuaaaaalllll Actual SNIENTSGISSTSGTITEETSGTnnnooooooexeeeeexxUAAEAOUZOTZEZDOrDTUABOOOrECDBeCCTArBAecccttttttooopprrrprrrtootooooaaaaaa55S555Sd55dSu555d5555555uu5------vvvvvvs--------s--s-----eeeOttOtmmmllllll666666m6tt666tm66m666666OOOAAAaaaCCCiiiiiisOOLGLsGsAOYYALAGYrrrnnnccccccIIIEEE42141p542455343p1243lllnnneeeteeeteeetDDDiiieeehhhsssrrWtttrWWeeeeeePPP0e050eh0h00h00000550000xxxnnnUUUcccahhaahnnneeelliilieeePPPssssssereerpppiiilrlclcrrcoooeccecePPPtSRSIAAAIDDDIAttRIAAIRSIseseseooosssaaooonnnnnnLLLrriirikkkeeemmmrhhrrhllltntnntwwwAAAtdoeoddPPotePeffffttftfAAACCCrrrpppnnnEEEiAiAAiiieoeoeoIIImmmnmm&m&&sssnaaattteeenPnnPPADADDAeeesssPPPsssxxx///rrrsssPPPggeeetttGGGcccaaaeeeeeennn//P/PPsssiieiiieiepppeeeEEEsssPPPaaaonnonorrrooosssaaaaIooaIaoeeessseeeLaaLLaAAAoooeenendddrrrniinniHHHmmmtvttvvsssssstttnnnCCCcccAAAgggsccssuuuiiisssAAAiiiIIIoootttssscccssshhheeerrrsssoPPoPcccrrsrssssssPsPPsnnnmmmaaaeeeaaammmmmaaaMMMrrreeessssssaaarrrmmmsssoottottttssseeeeeeoooiiieeellleaaaeiieieegggvvvooossssssnnnmmmgggMMMsssrrrnnnrrreeennnmmmssstttkkkrrrssstttaaasssiiiaaaaaasssmmmnnneeeSSSmmmmmmeeerrrmmmgggttteeekkknnneeeiiieeemmmnnnrrreeemmmSSStttnnnnnnvvvgggsssttttttiiieeetttiiiiiinnniiisssnnnsccscsnnnrrrgggvvvgggeeegggiiisssccceeesss $$$$$ $ 87,537 5555531311377777212112121228181111187778866006077,,,,,,,,,,,,,,,,,,,111115252250059590977777777877887288383226662222255444536737663777 $$ 571,172 $ $$$$$ 13,859 13,859 13,859 111111114838438437737358185151886668,,,,,,,,,,,,,,933773798833385352352301110098888898080808 138,929 113344,,993322 134,932 ((227777772291991155511111222666222000,,00,,,,,,,,,,,,0220202020203307700706060600255252008808)) Net Operating Income $ (221,030) 16 RRRRIIRInnneeeeecccsssssoooeeeeemmmrrrrrevvveveveeee/e//(((ssCsCssC,,,,,hhhJJJJJaaauuuuunnnnnlllgyygygeeeee11133,,ii,innn00222,,000FFF22111uuu00888nnn11ddd99BBBaaalllaaannnccceee))) $$$$$$$$ 111(((222,,,000882224442211188877,,,000,,,,,999993333330000011111))) Reserves, June 30, 2019 $ 8U2S7A,9D0P1LC Annual Report

FY19/20 WA COMMISSION (as of 8/2019): Allen Druffel, Chair Kirk Hansen, Vice Chair Kyle Hinrichs, Handler Braidy Haden Nate Hahner Dave Carlton Kevin Mader WA Commission Income, FY 2019-20, Mike Tee WA ComTmotisaIsNli=oCOn$M5In7Ec1Fo,1Ym72e20,19F/Y202019-20, Scott Steinbacher, WSDA TOTATRLoetGtaaiRl,lO$=3S6S$2 5IN7C1O,1M7E2= $571,172 Interest & Misc., $20,624 Retail, $362Green Pea, $87,537 Yellow Pea, $767 Yellow Pea, $767 Interest & Misc., $20,624 Green Pea, $87,537 AWP, $16,023 AWP, $16,023 WA Commission Expenses, FY 2019-20, Total = $79 Lentil, $117,2N74IFA Commodity Outreach & Education, $12, WA Commission Expenses, FY 2019-20, Total = $7L9e2n,t2il0, $2117,2B7d4, $50,000 Chickpea, $328,585 NIFCBAhdiC,c$ok5pm0em,a0,o0$0d3it2y8,585 Outreach & AdminiIsntfroa/tGioonv,'$t,50,659 Education, $12,268 $134,932 Info/Gov't, Domestic Marketing, $134,932 $181A,P7A58/PHI, Green Pea $138,929 Green Pea Yellow Pea AWP Lentil Chickpea Interest & Misc. Retail Research, YellowAPPeAa /PHAI,WP WLeAntCil omCmhicikspseiaon EIMnxteparIreenkstnetet&sriennMasgit,,sic$oF.7nY8a,23lR10e81ta9il-20, $138,929 Total $=14$57,39328,20 EXPENSES FY 2019/20 Research, NIFA Commodity Outreach & A Commission Expenses, FY 2019-2T0O, TToAtLal == $$779922,,220022 $145,338 Bd, $50,000 Education, $12,268 NIFA Commodity Outreach & Administration, $50,659 WA Commission Net Income = ($221,030) D Bd, $50,000 Education, $12,268 Info/Gov't, Info/Gov't, $134,932 WA Commission Net Income = ($221,030A)dministration $1D3o4m,e9s3t2ic Marketing International M APA/PHI, Domestic Marketing, APA/PHI Info/Gov't NIFA Commodit $138,929 $181,758 Administration International Marketing APRAe/sPeaHrIc,h I Domestic Marketing APA/PHI Info/Gov't NIFA Commodity Bd $1O3u8t,r9e2a9ch & Edu cation Ma International Research, Marketing, $78,318 $145,338 Research, $145,338 WA Commission Net Income = ($221,030) Commission Net Income = ($221,030) Administration Domestic Marketing International Marketin Info/Gov't NIFA Commodity Bd APA/PHI 17 ministration Domestic Marketing International Marketing Research /PHI USADPInLfCo/GAonv'nt ual Report NIFA Commodity Bd Ou treach & Edu cation

18 USADPLC Annual Report CPOOLMICMYU&NICCRAITSIISON On July 1, 2019, officially the beginning of the 2019/20 Fiscal Year, there was little to indicate that the USA Dry Pea & Lentil Council was to embark on one of the strangest years the U.S. pulse industry would every experience. Not only did retaliatory trade tariffs continue into the year, India continued to suppress pulse trade to protect farmers, and while some agencies worked diligently on behalf of the U.S. pulse industry, others seemed to throw obstacles in the way, damaging both growers and traders of pulse crops. While it seemed that the U.S. had seen the worst, a global pandemic changed the rules, defining the workforce by those who are “essential” and those who were mandated to stay home and stay virus-free. COVID-19 dominated the fiscal year. Despite these setbacks, the U.S. pulse industry persevered, and the USA Dry Pea & Lentil Council led the way out of the darkness. IMPLEMENT CRISIS STRATEGY & The USADPLC team visit to the U.S. Trade COMMUNICATIONS Representative Office. L/R - Keith Schneller, Erin Nicholson, Tim McGreevy, Despite COVID-19 related travel Aaron Flansburg, Theresa Howes and Beau Anderson. restrictions, the USADPLC managed to send growers, pulse trade members, funding for the Pulse Crops Health fostering efforts that increase advocacy and representatives of the USADPLC Initiative (PCHI) for the fiscal year. among policy and decision-makers to Washington, D.C. several times to in government. The USADPLC was educate policymakers on the damage As a result of the global pandemic successful garnering financial support tariffs and other trade barriers have lockdown, the U.S. government for research funding, farm programs, had on the U.S. pulse industry. The provided agricultural relief in the form crop insurance, and other U.S. pulse industry continued to receive the of grower payments and increased industry representation in the 2018 benefits of these efforts Section 32 commodity purchases. The USADPLC Farm Bill. The USADPLC policy team is food bank acquisitions and the USDA worked with the pulse industry D.C. currently advocating for pulse crops tariff relief programs. In addition, consultants, Gordley Associates to inclusion in the next variant of the the industry was quick to respond to make sure that pulse growers and Farm Bill. an FDA report implicating pulses in a trade were represented in those perceived link between grain-free pet payments. COVID-19 had a positive In partnership with the board diets and a rare heart condition in dogs effect on pulse sales globally, causing and members of the American Pulse called Dilated Cardiomyopathy (DCM). a brief spike in demand and prices that Association, the USADPLC combined The FDA reports had an immediate kept pulse growers from receiving the efforts again to visit 120 congressional negative effect on the market for same relief as other commodities. The and agricultural agency offices, such pulse ingredients in pet food, despite USADPLC responded, making sure USDA as FSA, FGIS, ERS; FDA, and, NASS no clear science proving diet plays was well aware that pulse growers in the annual Washington, D.C. four a role in DCM. Working with the FDA deserved relief in the COVID-19 relief day visit. Members of the U.S. pulse and many Congress members and the funding. industry have made this pilgrimage Senate supportive of agriculture, the for over 50 years and have established USADPLC convinced the FDA to clarify POLICY - TO PROMOTE & a reputation as the industry's voice. their language about their concerns PROTECT THE PULSE INDUSTRY To accommodate COVID-19 travel and minimize the damage to the restrictions, the USADPLC is currently industry. This is an ongoing issue, The USADPLC Information and planning a historic virtual trade and the USADPLC continues to work Policy efforts emphasize relationship mission, arranging videoconference with the pet food industry to provide building, with partnerships, and in research on the cause of DCM. USADPLC efforts in establishing strong, long-term relationships with policymakers continue to pay dividends in garnering pulse research funding through the Farm Bill. Congress approved an additional $3 million in

USADPLC Annual Report 19 meetings with the same congressional offices and provide industry outreach to advance the industry priorities. agricultural agencies the USADPLC has visited in past face-to- face meetings. GROWER EDUCATION In 2019/20, the USADPLC worked with the Risk PULSE REVENUE CROP INSURANCE The USADPLC owns the Pulse Crop Revenue Insurance Management Agency to provide grower education content using social media channels, branded as the Puls-ED Program, while it is managed by the Risk Management program. The goal of the project was to create a community Agency (RMA). Since 2014, the PCRI program has provided of pulse growers, trade representatives and consultants, and revenue-based coverage to pulse growers exclusively based researchers to share content, experience, and knowledge on projected prices versus harvest prices. This year, North to best minimize farming risk. Through a combination Dakota led the program with 79% adoption, followed by of prepared content, live, and video streamed events, Washington at 63%, South Dakota at 60%, Idaho at 59%, and the USADPLC reached over 200 members of the Puls-ED Montana at 52% coverage – a total of over $1 million acres community and countless members of Facebook and Twitter covered. In 2019, the PCRI program paid over $29 million in social media channels. indemnity payments to pulse growers. PUBLICATIONS/MEMBER OUTREACH POLICY SUPPORT The USADPLC produces 78 industry newsletters on pulse The Info/Gov Committee works with all members related topics; the weekly Pulse Pipeline and the bi-weekly of the USADPLC throughout the year to develop policies Pulse Mill newsletter. The USADPLC alerts members of urgent that support increased pulse crop research, ensure equal matters through an e-blast called the Pulse Connection and support in Farm Program enactment for Pulse producers, survey members throughout the year on emerging issues. increase access to school nutrition programs, and increase In addition, we publish bi-annual magazines entitled Take trade opportunities. This committee is comprised of Your Pulse, the only pulse industry magazine in the nation; a cross-section of members representing state check- and several industry statistic reports, including pulse crop off organizations, regional grower groups, the national production statistics, stocks-on-hand, pulse production trade association, the American Pulse Association, and maps, and pulse acreage reports. international and national coalitions. Their goals are to create a framework upon which the U.S. pulse industry interacts with government officials and agencies throughout the year, encouraging U.S. policy that promote and protect the interests of the U.S. pulse industry from farm to fork. As part of the Information/Government programming, the USADPLC contracts with Gordley Associates in Washington, D.C. to represent the pulse industry and provide timely information on key issues, technical policy advice and

FINANCIAL PROFILE: WPGAWestern Pulse Growers' Association WesterSntPatuelmseenGtroofwAecrsti'vAitsysociation StJautlye2m01e9n-tJuonfe A20c2t0ivity July 2019 - June 2020 WPGA Revenue WPGMAemRbeveresnhuipe Income MemIbdearhsohMipemInbceormsheip $ 10,833 WIdaashhoinMgteomn bMeersmhbipership $ $ 281,503,833 AWssaoschiiantgetMonemMbeemrsbheirpship $ $ 32,380,5038 OAtshseorcSiattaeteMMeemmbbeerrsshhiipp $ $ 1,035,3000 TotalOMtheemr bSetrastheiMp eInmcboemrsehip $ 1,050 $ 43,721 TotaCl MonevmenbtieornshInipcoImnecome $ $ 15,4831,6721 OtherCIonncvoemnteion Income OtheBruIinldcionmg eRent-USADPLC $ 15,816 $ 54,396 LBeugiilsdliantigveRAenctt-iUonSFAuDnPdLC CLoemgibsilnateivReenAt-cAtioRnS Fund $ $ 55,442,3696 TotaTlTRootteaavlMleCMOnOoiiustsmtchechebIeInrinrncIcoeInonmcRmcoeeomenmte-eARS $ $ 10,050,4026 $$ 10- ,000 $ - $ 69,822 $ 129,6395,9822 $ TWoPtaGlAReEvxepneuneditures $ 129,359 WPGUASAEDLCAxLCPpeodoegneLmgnavnaCviledln/e/ninSItStIniteunoeisrosurrnvuvner/irPais/ccPanreenocrssocejee/jce/BtcButEuiExlidpxlidpnigngMMaianitnetneanna$cnece 21,316 $ $ 16,411 $ $ 11,1067,9411 11,079 USADDoPmLeCstiSceMrvairckeesting $ $ 102,,266134,40316 IAntdemrniantiSoneravl iMceasrketing $ RDeosmeaercsthic Marketing $ $ 91,307,6334 AInPtAer/nPaHtiIonal Marketing $ $ 4,021,6740 IRnefose/Garocvh Affairs $ $ 6,099,3773 TotalAUPSAA/DPHPLI C Programming $ 4,017 $ 54,078 OtherInEfxop/GenosvesAffairs $ 6,097 TotaDl UepSrAecDiaPtiLonC Programming $ 55,909 $ 54,078 TOotthaelrOEthxperenEsxepsenses $ 55,909 Total ExpeDnedpirteucrieastion $ 55,909 $ 137,477 Net RTeovteanluOe ther Expenses $ $ (8,5151,89)09 20 Total Expenditures $$USAD1P3(L87C,,14A17n87n)ual Report Net Revenue

WPGA Income, FY 19-20 TotaIlNRCeOvMeEnFuYe2=01$91/2209,359 TOTAL GROSS INCOME = $129,359 WPGA Income, FY 19-20 Combine Rent-ARS Building Rent- Total Revenue = $129,359 USADPLC $10,000 Other Income Building R$en5t4- ,396 Combine Rent-ARS $5,426 USADPLC $10,000 Other Income $54,396 $5,426 Idaho Membership Idaho Membership Washington Membership Washington Membership Associate Membership Associate Membership Other State Membership Other State Membership Conv ention Income Conv ention Income Building Rent-USADPLC Building Rent-USADPLC Combine Rent-ARS Other Income Combine Rent-ARS Convention Income Washington Other Income Membership C$o1n5,v81e6ntion Income Idaho Membership $28,538 O$th1e5r ,S8ta1t6e Associate Washing$to10n,833 Idaho Membership Associate Membership… Membership Membership $10,833 $3,300 $28,538 WPGA Expenses, FY 19-20 Other State Membership… Membership Total ExpenditEuXrePsE=NS$E8S1,F5Y692019/20 $3,300 APA/PHI Info/Gov Affairs TOTAL = $81,569 $4,017 $6,097 Research Convention/Project Exp $9,373 $11,079 International Marketing Admin/Legal/ Ins/ Bldg Maint $2,640 $16,411 Domestic Marketing Admin Services $10,634 $21,316 Net Operating Revenue = $47,790 Convention/Project Exp Admin/Legal/ Ins/ Bldg Maint USADPLC Contracted Services Net Income (with Depreciation) = ($8,119) Admin Services Domestic Marketing International Marketing Info/Gov Affairs Research APA/PHI 21 FY19/20 WPGA Board (as of 8/2019): Idaho Division: Washington Division: Todd Wittman, 1st Co-Chair Tim Schultz, 2nd Co-Chair Randy Duncan Scot Cocking Dave Hawley Greg Ferrel Howard Jones Chase Jansen Richard Grant Doug Morgan Jim Hermann Aaron Flansburg Kyle Osborn Dan McKinley Cole Riggers Matt Weber Brian Silflow Dan Westacott Pat Smith USADPLC Annual Report

22 USADPLC Annual Report PULSE RESEARCH This has been an exciting year for pulse research! With more research initiatives and government support for projects than ever, pulses are definitely making a name for themselves. PULSE QUALITY NETWORK PET FOOD COMMODITY BOARD PROVISION 2020 marks a year of success for Pet food continues to be a priority the American Pulse Association (APA) for the pulse industry after the initial To extend research dollars, both and the USA Dry Pea & Lentil Council July 2018 statements by the Food & the USADPLC and the APA have been (USADPLC) as their tireless efforts Drug Administration (FDA) alerting pet recognized as official commodity have led to the launch of a new public owners to cases of a heart condition boards and are utilizing the Farm Bill’s Pulse Quality Network (PQN) to be called dilated cardiomyopathy (DCM) in Commodity Board Provision for the administered by the (USDA-ARS). The dogs eating certain pet foods, especially first time. This program allows eligible PQN has been authorized at $1 million of the “grain-free” label containing commodity boards to propose specific for 2020 and our team will keep working peas, lentils, and other legume seeds. topics of interest to the National towards increasing that support! Dr. The pulse industry is eager to see more Institute of Food and Agriculture Mike Grusak, USDA-ARS, will lead the research on “grain-free” diets and the (NIFA) - Agriculture and Food Research Network with the “hub” based in Fargo, use of pulses in companion animal Initiative (AFRI) competitive grant ND. Teaming with Dr. Grusak will be Dr. foods. We must be patient for scientific process. Research projects that fit Craig Morris, Pullman WA, and Dr. Karen results because meaningful research the commodity board topic undergo Cichy, East Lansing MI. These scientists can take time and multi-month clinical scientific review through NIFA-AFRI and will focus on end-use characteristics, trials will be important for answering the strongest research that fits needs functionality, and quality traits of questions about pulse inclusion. of the industry will be co-funded by pulse crops and will collaborate with The pulse industry cares about pet both the commodity board and NIFA- the university scientists and the public health and it is our priority to better AFRI. In the 2019-20 cycle, the APA pulse breeders. As the interest for understand the inclusion of pulses submitted a topic for human health pulses as ingredients and blends in pet diets for healthy and happy research and the USADPLC focused on continues to rise, the establishment of canine friends. Alongside encouraging a streamlined project among the public the PQN is both timely and valuable. research in this area, we continue to pulse breeders. Results of final awards engage with FDA and communicate with are anticipated by the end of 2020. PULSE CROP HEALTH industry partners. INITIATIVE FUNDED RESEARCH Dr. Clifford Hall III of South Dakota State University The Pulse Crop Health Initiative presenting his pulse quality findings. During FY2019-20, the USADPLC held (PCHI) continues to see an increase the Annual Joint Research Review with in financial support. This year, $4 the Northern Pulse Growers Association million dollars were authorized from (NPGA) and awarded continuing projects the Farm Bill – a one million dollar with a focus on the crops and their increase from last year. This allows management. The public breeders for the Initiative to continue funding and variety trial programs were multi-year projects while adding on funded and play an important role in new research projects. As explained varietal development and performance by the USDA-ARS (link here), “the goal across growing regions. Royalties of the Initiative is to use cooperative for public pulse varieties continue research on pulse crops (dry beans, to support the USDA-ARS Variety dry peas, lentils, and chickpeas) to Development Program. To help with provide solutions to the critical health crop management, researchers from the and sustainability challenges facing the University of Idaho, Washington State citizens of the United States and the University, and Montana State University global community.” In 2020, a total of are tackling weed management across 37 projects are being supported in the the growing regions. categories of Sustainability (9), Food Technology (13), Human Health (9), and Dr. Clifford Hall III, South Dakota Breeding (6). State University (left), continues to develop the industry annual Pulse

USADPLC Annual Report 23 Pulse breeder, Dr. Rebecca McGee of the USDA-ARS at Washington State University in Pullman, WA giving a tour of pea trials. Dr. Mary Burrows of Montana State University and research project with Dr. David Baer, collaborative approach across regions the Pulse Crops Working Group. USDA, investigating the true caloric to provide the research and education value of some pulses (chickpeas necessary to increase integrated Quality Survey that helps connect and lentils). This project has seen a pest management (IPM) adoption in the harvested product to end-use. number of delays including the 2018-19 pulse crops. The PCWG responds to We anticipate Dr. Hall’s expertise in government shutdown and COVID-19, these challenges by developing and pulse quality will provide an excellent which impact human studies but Dr. implementing IPM strategies as well as collaboration for the Pulse Quality Baer continues to progress with the educational and outreach efforts as part Network. The USADPLC continues to research. of the pulse crop scientific community. coordinate the multi-institutional, interdisciplinary study focused on Pea In 2020, the Pulse Crops Working seed-borne mosaic virus as an Idaho Group (PCWG) leads, Dr. Audrey Kalil Specialty Crop Block grant led by Dr. (NDSU) and Dr. Mary Burrows (MSU), Alexander Karasev, University of Idaho. welcomed our Directory of Research, Dr. Evy Jaconis, as a co-project director. The American Pulse Association The PCWG continues to provide a continues to support the ongoing USADPLC Director of Research, Evy Jaconis (right) networking at the International Legume Society meeting. Testing cook times in Dr. Karen Cichy’s lab at USDA- ARS East Lansing, MI.

24 USADPLC Annual Report FINANCIAL PROFILE: APA Actual American Pulse Association 300,000 Actual vs. Budget 35,023 52,000 July 2019 - June 2020 4,500 Revenue 50,000 A-National Organizations $441,523 B-Individual Pulse Ind. Members $441,523 C-Pulse Food/Feed Manufacturers D-Ancilary/Associate Members 29,578 E-Individual Grower Members 170,000 F-Research Fund Income 90,497 Total Revenue 47,781 Gross Profit 10,571 Expenditures 22,032 5100 Administration 46 5610 USADPLC Contracted Services 6000 Domestic Market Programming 40,000 8000 APA Research Programming $410,505 8400 National Science & Adv. Meeting $ 31,017 9000 Membership, Communications and Govt Ed $ 31,017 Programming 9400 Printing & Marketing Materials 9990 Contingency Fund/ Foundation Res Project Total Expenditures Net Operating Revenue Net Revenue

USADPLC Annual Report 25 APA Revenue - FY 19-20 TotalTORTReAELvVREeENnVUEuENFeUYE=2=01$$94/442104,5123,523 B-Individual Pulse FY19/20 APA BOARD A-National Organizations, Ind. Members, 35,023 (as of 8/2019): $300,000 Kim Murray - Chair C-Pulse Food/Feed… Chad Nickels - Vice Chair Greg Johnson D-Ancilary/Associate… Dave Kirsten Pat Smith Cindy Brown, Advisor F-Research Fund… John McDermott, Advisor Beau Anderson (alternate) Marty Anderson (alternate) A-National Organizations B-Individual Pulse Ind. Members C-Pulse Food/Feed Manufacturers D-Ancilary/Associate Members E-Individual Grower Members F-Research Fund Income APA ExEpXePEnNdSEiStuFrYe20s1,9/F2Y0 19-20 5100 Administration TotaTlOETAxLpEeXPnEsNeSEsS== $$44101,5005,505 5610 USADPLC 6000 Domestic 8000 APA 5610 USADPLC Contracted Contracted Services, Market Research Services $170,000 Pro gramming, Pro gramming, 6000 Domestic Market $90,497 $47,781 Prog ra mmi ng 8000 APA Research Prog ra mmi ng 8123 NIFA Res earch Fund 8123 NIFA 8400 National Science & Research Fund, Adv. Meeting $150,000 5100 9400 9000 Membership, 8400 National 9000 Membership, Administratio n, Printing & Communications Science & Adv. Communications and Govt Ed Programming $29,578 Marketing and Govt Ed Meeting, $10,571 Materials, Pro gramming, 9400 Printing & Marketing 9990 Contingency Materials Fund/ Foundation $46 $22,032 Res Project, $40,000 9990 Contingency Fund/ Foundation Res Project Revenue for FY 19-20 $(118,983)

26 USADPLC Annual Report MCOOMNMTAITNTAEPEULSE CROP FY19/20 MPCC Committee (as of 7/2019) •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 •Charles Boyer, 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.

USADPLC Annual Report 27 The North Dakota Dry Pea & Lentil Council (NDDPLC) was N&OLRETNHTIDLACKOOUTNACDILRY PEA established in 1997 as a response to a rapid growth of dry FY19/20 NDDPLC Members •Kim Saueressig, Chair, Dist.IV pea, lentil, and chickpea (pulse crops) acreage during the (as of 7/2019) late 90’s. North Dakota growers introduced legislation to •Kevin Wolsky, District V establish the Council and create a 1% voluntary check-off •Jeff Knox, District I on the sale of dry peas and lentils. The Council manages •Doug Goehring, ND Dept. of Ag, North Dakota grower’s investment in the areas of marketing, •Jeremy Huether, District II ex-officio member, research, education and promotion. The NDDPLC grants funding to several organizations to provide these services •Ryan Blumhagen, VC, District III •Matthew Arnold Sagsveen, on a yearly, competitive basis. Two of these organizations Legal Counsel 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. The NDDPLC board consists of five elected pulse producers from different regions of North Dakota, each serving a three- year term. A beautiful day at the 4th generation Centenial Farm of NDDPLC Chair Kim Saueressig of McClusky, North Dakota. Above, ND is the #2 producer of yellow peas in the country.

28 USADPLC Annual Report FINANCIAL PROFILE: USPLTA U.S. Pea & Lentil Trade Association Statement of Activity July 2019 - June 2020 Total Jul 2019 - Jun 2020 Revenues Membership Income $ 165,533 Processor Dues $ 2,600 Warehouse Dues $ First Purchaser Warehouse/Elev. $ 24,568 Exporter-Dealer Dues $ 16,900 Broker/Comm Dues $ Finished Product Processor/Manu $ 1,625 Foreign Associate Dues $ 34,851 Associate Dues 3,900 11,400 Total Membership Income 261,377 Building Rent 27,196 Convention Income 141,000 Other Income 7,213 Total Revenue 436,786 Gross Profit 436,786 Expenditures USADPLC Contracted Services $ 24,159 Admin Services $ 73,010 Domestic Mktg Programming $ 18,124 International Mktg Programming $ 64,347 Research $ 27,577 APA/PHI $ 41,862 Info/ Government Education $ 100,000 Other Exp-NIFA Grant $ 349,079 $ 94,415 Total USADPLC Contracted Services Projects/ Conv Support $ 3,024 $ 1,405 Supporting Activities $ - Meeting Expense $ 2,278 Property Tax $ 6,100 Legal $ 1,805 Building Maintenance/taxes $ 21,167 Accounting $ 7,777 Insurance/legal $ 487,050 Contingency $ (50,264) Depreciation Expense Total Expenditures Net Operating Revenue Net Assets, July 1, 2019 $ 590,652 Net Operating Revenue $ (50,264) Net Assets, July 1, 2020 $ 540,388

USADPLC Annual Report 29 Convention Income, $141,000 USPLTA Revenue TotaIl NInCcoOmMe E= $F4Y362,708169/20 TOTAL GROSS INCOME = $436,786 Other Income, $7,213 Processor Dues, $165,533 Building Rent, $27,196 Processor Dues Warehouse Dues First Purchaser Warehouse/Elev. Exporter-Dealer Dues Broker/Comm Dues Finished Product Processor/Manu Foreign Associate Dues Associate Dues Building Rent Convention Income Other Income Warehouse Dues, $2,600 Associate Dues, $11,400 Foreign Associate Dues, $3,900 Exporter-Dealer Dues, $16,900 First Purchaser Warehouse/Elev., Broker/Comm Dues, $1,625 $24,568 Finished Product Processor/Manu, $34,851 2020 USPLTA BOARD: (as of 1/2020) EXPENSES FY 2019/20 Tim Gustofson, Chair USPLTA Expenditures 20T1O9-T2A0L = $487,050 Building Shawn O'Connell, Vice Chair Maintenance/taxes, $2,278 Ron Williams, Secretary Total Expenses = $487,050 Property Tax, $1,405 Bert Brocke Accounting, $6,100 Andrew Fontaine Projects/ Conv Support, Meeting Expense, $3,024 Jim Groth $94,415 Insurance/legal, $1,805 Tim Gustafson Pete Johnstone Contingency, $21,167 Other Exp-NIFA Grant, Admin Services, $24,159 $100,000 Info/ Government Domestic Mktg Education, $41,862 Programming, $73,010 APA/PHI, $27,577 Admin Services Research, $64,347 International Mktg Programming, $18,124 Net operating Revenue = $ (42,487) International Mktg Programming Net Revenue w/Deprecciation = $ (50,264) Domestic Mktg Programmin g APA/PHI Research Info/ Government Education Other Exp-NIFA Grant Total USADPLC Contracted Services Supporting Activities Projects/ Con v Support Property Tax Building Maintenance/taxes Meeting Expense Insurance/legal Legal Accounting Conti ng ency

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