NCGA's Mission: To Create and Increase Opportunities for Corn Growers

This is Corn Commentary, the weekly newsletter for state and national grower leaders of the National Corn Growers Association (NCGA).  For complete stories and updated NCGA information, visit www.ncga.com or the NCGA Leader Resource Center, www.insidencga.com.

IN THIS ISSUE:

• Tolman “Sheds No Tears” for Tyson
• Tolman Discusses Food and Fuel at Corn Dry Milling Conference
• NCGA Concerned with Proposed Expansion of Clean Water Act
• Register Online for National Corn Yield Contest
• Spending Bills Hot Topics for Congressional Members’ Return
• In the Senate Next Week: Energy
• Farm Bill Discussion Continue
• Ethanol Takes The Stage at Indy 500
• U.S., EU Officials Meet to Discuss WTO
• What We’ve Heard: Farming Briefs From Around the Country

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Tolman “Sheds No Tears” for Tyson
In an opinion piece for NCGA’s Web site, NCGA CEO Rick Tolman expressed his feelings, or lack thereof, about Tyson Foods repeated claims that “$4 corn” will hit the company in the earnings department. “Carefully look at the facts. American farmers, with corn producers leading the way, have, can and will meet our domestic and international commitments for food and feed and still make a significant and growing contribution to lessening our dependence on imported oil. Tyson and other critics sadly underestimate your productive capability and unfortunately tout their own self interest with misleading headlines and sound bites of fear and doom and gloom. I for one will shed no tears for Tyson. They need no tears. Their comments and sound bites have been irresponsible, misleading and self serving.” To view the article, click here

Tolman Discusses Food and Fuel at Corn Dry Milling Conference
Tolman headed to Peoria, Ill., on Thursday and Friday for the 48th Annual Corn Dry Milling Conference. He delivered a presentation on biofuels and the food and fuel debate. Tolman also met with the Editorial Board of the Peoria Journal Star to discuss NCGA’s farm bill proposal, WRDA and other ag-related topics.

NCGA Concerned with Proposed Expansion of Clean Water Act
NCGA urges growers to contact their congressmen about H.R. 2421, the Clean Water Restoration Act of 2007. The crux of this legislation removes the term “navigable waters” from the 1972 Clean Water Act, extending federal jurisdiction to everything from ditches and gutters to groundwater. NCGA is committed to the protection and restoration of America’s wetlands resources. However, NCGA does not believe it is in the nation’s interest to regulate ditches, culverts and pipes, desert washes, dry arroyos, farmland and treatment ponds as “waters of the United States,” thereby subjecting such waters to all of the requirements of federal regulation.  NCGA is part of a broad, coordinated educational campaign to inform members of Congress on the problems with this legislation. Click here to learn more about the bill.

Register Online for National Corn Yield Contest
Entering the National Corn Growers Association (NCGA) National Corn Yield Contest (NCYC) just got easier. For the second year, corn growers entering the nation’s premier agricultural production competition can register online. In addition to online registration, growers can register by downloading the forms from NCGA’s Web site. Growers can also obtain registration forms by calling Judy Hall at 636-733-9004, ext. 129; or by e-mail, hall@ncga.com. The initial deadline for entries is July 2. Preregistration entries must be postmarked by July 2; the fee is $75 per hybrid. The registration fee increases to $105 per hybrid after the preregistration deadline. 1. Entry forms are posted on the NCGA Web site.

Spending Bills Hot Topics for Congressional Members’ Return
The Democratic leadership will begin work on the fiscal year 2008 appropriations bill next Monday. The continued challenge will be spending limits. The House plans to dedicate almost all of June to passing 11 of the 12 spending bills for the fiscal year that begins Oct. 1. Meanwhile, the Senate Appropriations Committee begins marking up its bills the week of June 11, when the first of the House bills will reach the floor. Several appropriations bills – including the agriculture spending bill and the energy and water bill – will be of concern to corn growers as these bills provide needed funding to a variety of projects.

In the Senate Next Week: Energy
The Senate originally planned for next week to be ‘Energy Week,’ however, immigration debate will also be in the mix. It is expected that the Senate will begin debate on energy bills, go to debate on immigration and then the following week resume energy talks. The entire energy bill is expected to come to the floor the week of June 13. The energy measure will include the Energy Savings Act of 2007, introduced by Sens. Jeff Bingaman (D-N.M.) and Pete Domenici (R-N.M.), which would increase the Renewable Fuels Standard to 36 billion gallons by 2022. Of the 36 billion gallons, 15 billion must come from convention biofuels (e.g., corn ethanol) and the remainder must come from cellulosic sources such as corn stover. This RFS is reflective of NCGA policy and achieves the association’s 15x15 goal for corn ethanol.

Farm Bill Discussions Continue
Farm bill discussions continue to play out behind the scenes in both the House and Senate. Upon return next week, the House will most likely resume farm bill title markups.  House Agriculture Committee Chairman Collin Peterson (D-Minn.) said growers could expect to see some specific reform on crop insurance. Peterson has also continued to show his interest in the revenue component of the Commodity Title, but has not yet formally stated he will include it in the final bill.  A big question is: What will happen once the farm bill reaches the House floor? Peterson said he does not want a floor fight; however, growers could see other representatives coming to the floor to bring up issues with the farm bill and alternatives, thus leading to possible floor fights. An agriculture lobbyist said that in order for a calm floor discussion to happen, Peterson has to ensure the agriculture committee is united and the different constituencies have what they need. The Senate Agriculture Committee will continue to review the titles and is expected to begin work formally in the next week or so. Both the House and Senate are hoping to have the farm bill mostly done by the July 4 recess.

Ethanol Takes the Stage at Indy 500
It was a big week for ethanol in Indiana last week. On Sunday, Dario Franchitti won the 91st Indianapolis 500, powered by 100 percent ethanol. The IndyCar Series is the first in motorsports to utilize 100 percent fuel-grade ethanol. At the Gas America station in Indianapolis on May 23, Indy Car drivers Jeff Simmons, Scott Sharp and Sara Fisher pumped E-10 for $2.25 per gallon. The deal caused quite a stir, as cars lined up for a price not seen in months. Gas was more than $3.50 per gallon in central Indiana last week. The station charged $2.25 per gallon because that was the top speed for pole sitter Helio Castroneves. The Indianapolis Motor Speedway also held the second annual Ethanol Summit, featuring remarks by Andy Karsner, U.S. Department of Energy assistant secretary, Office of Energy Efficiency and Renewable Energy.

U.S., EU Officials Meet to Discuss WTO
European Union (EU) and U.S. officials convened in Brussels, Belgium, Friday to discuss world trade negotiations. EU Agriculture Commissioner Mariann Fischer Boel and EU Trade Commissioner Peter Mandelson met with Secretary of Agriculture Secretary Mike Johanns and U.S. Trade Representative Susan Schwab. WTO Director General Pascal Lamy also attended the meeting. The G4 group (the EU, the United States, Brazil and India) will meet on June 18.

What Others are Saying: Briefs about Farming from around the Country
Editorial: Philadelphia Inquirer, May 31
The 2007 Farm Bill: Cultivating Saner Policy

“Over the past year, Secretary of Agriculture Mike Johanns, a former governor of Nebraska, toured the country, listened to farmers, and embraced practical reforms. In January, initial bills focused on improving America's food supply and environmental stewardship. But beginning work this month, the agriculture committees seem to be plodding down a conventional trail, seemingly oblivious to cries for a radical shift from the 2002 bill. In contrast, Sen. Richard Lugar (R-Ind.) and Reps. Ron Kind (D- Wis.) and Jeff Flake (R-Ariz.) offer a sensible subsidy overhaul. Their bills replace four major subsidy programs with a "risk-management account" controlled by individuals to guard against steep price fluctuations. Farmers also could buy federally subsidized crop insurance. The program would save $55 billion over 10 years, sponsors estimate. Some money would wisely go toward deficit reduction. The balance should be used to provide more food stamps, expand land conservation, research and commercialize biofuels, and shore up specialty crop markets. This country needs better farm policy - to provide a farmer safety net, to protect the land, to rectify international trade inequity, to feed the poor. Congress should nurture the good seeds that have been planted.” Click here for the full editorial.