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:

• As Water Resources Development Act Passes House, NCGA Urges Members to Keep Pressure On
• Harkin Looking at NCGA Revenue-based Proposal
• Senate Energy Panel Challenges Oil Companies to Increase E85 Availability
• Livestock, Food Groups Oppose Increased Ethanol Mandate in Letter to Pelosi
• NCGA Updates “Food AND Fuel” Pamphlet
• Congress in Recess until September 4

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As Water Resources Development Act Passes House, NCGA Urges Members to Keep Pressure On
The House of Representatives passed the Water Resources Development Act (WRDA) conference report this week. The 381-40 vote signals the overwhelming support for the measure, which includes authorization to modernize locks and dams on the Upper Mississippi and Illinois rivers. House passage clears the way for the Senate to take up the measure, the final step before WRDA is sent to President George W. Bush’s desk for signature. Bush has threatened to veto WRDA.

In the Senate, it remains to be seen if a filibuster by Sen. Russ Feingold (D-Wis.) or others will stall the bill. A filibuster would require a cloture vote to limit debate, possibly prolonging consideration by the Senate until it returns from August recess in September.

Harkin Looking at NCGA Revenue-based Proposal
During a conference call with reporters on July 31, Senate Agriculture Committee Chairman Tom Harkin (D-Iowa) said a revenue-based farm program has potential. “I think we will see more of the revenue-based counter-cyclical program that’s been proposed by the National Corn Growers Association,” said Harkin. “The more I look at it, the more I like that. But, again, a lot will depend on the committee.” Harkin’s wide-ranging comments on the call can be found here. The Senate Agriculture Committee most likely will take up the farm bill in September when Congress reconvenes.

Senate Energy Panel Challenges Oil Companies to Increase E85 Availability
A Senate Energy subcommittee held hearings this week on oil companies preventing their franchises from selling E85, and a few senators suggested legislation is the way to increase E85 availability. Sen. Larry Craig (R-Idaho) said, E85 “doesn’t work if the infrastructure doesn’t come behind it.” Sen. Byron Dorgan (D-N.D.) suggested that if there is not enough infrastructure to handle the additional ethanol entering the market in the coming years, “you’re going to see a collapse in that market.” Sen. Amy Klobuchar (D-Minn.) has proposed a bill, the Right to Retail Renewable Fuel, which would prohibit oil companies from placing restrictions on when and how renewable fuels can be sold at the retail level. Dorgan summed up the thoughts of many E85 proponents during his questioning of Department of Energy Assistant Secretary for Energy Efficiency and Renewable Energy Andy Karsner. “I don’t think that we have a ghost of a chance solving this problem if we have those who control 60 percent of service stations in this country deciding they’re going to do everything they can from preventing people from having reasonable access to E85,” said Dorgan. “I don’t think we can solve this, unless both as franchisees and as policymakers we say, ‘Wait a second. You can’t do this.’”

Livestock, Food Groups Oppose Increased Ethanol Mandate in Letter to Pelosi
Livestock, poultry and food groups sent a letter this week to House Speaker Nancy Pelosi (D-Calif.) urging her to oppose any amendment that would extend the Renewable Fuel Standard for grain-based ethanol in the House version of the energy bill. Those signing the letter include: the Grocery Manufacturers/Food Products Association, National Cattlemen’s Beef Association, National Chicken Council, National Pork Producers Council, National Turkey Federation, United Egg Association and United Egg Producers. The House proposal lacks an RFS, but an amendment was being discussed. The Senate energy bill contains an RFS of 36 billion gallons by 2022 (15 billion gallons ethanol by 2015 and 21 billion of other biofuels by 2022). Therefore, regardless of what occurs in the House, an RFS will be discussed in the conference committee.

NCGA Updates “Food and Fuel” Pamphlet
NCGA reminds its state associations and members that an updated version of “U.S. Corn Growers: Producing Food AND Fuel,” is available in print and online. The pamphlet highlights producers’ ability to meet the demands of the food and fuel markets. It includes the most recent statistics on corn production and use, with the current projections from the U.S. Department of Agriculture to help both corn growers and consumers understand market dynamics. To obtain print copies, contact Melanie Gibson at NCGA at (636) 733-9004 , ext. 118 or gibson@ncga.com. The brochure is also available online by clicking here.

Congress in Recess until September 4
With Congress in recess in August, now is a great time for corn growers to engage their congressmen and their staffs and stress the key issues NCGA is promoting. The farm bill, WRDA, the energy bill and trade agreements are just a few of the items on NCGA’s agenda for this legislative period. Make sure your congressmen hear your voice. Visit www.house.gov and www.senate.gov to find your congressmen’s Web sites and local offices.