NCGA President McCauley Looks Back on “Great Year to Be a Corn Grower”
Editor’s note: On Oct. 1 Ken McCauley moves from the role of president of NCGA to chairman. He shares his thoughts about his term as president and his experiences over the last year.
“I’ve said again and again ‘2007 is a great year to be a corn grower.’ We’ve opened new markets, enjoyed strong prices and answered the call to produce more. Much of our success is due to the hard work and talent of those NCGA members and officers who came before us. I’d like to thank all of them, the dedicated staff and corn growers across the nation for their efforts. Looking back over the past 12 months it’s hard to believe the changes we’ve seen. Four areas stand out to me:
Rising corn prices – A year ago prices had just begun to recover. Who could have imagined they would continue to improve, especially after growers planted the largest crop in more than 50 years!
WRDA – NCGA has fought for the Water Resources Development Act for more than 15 years. After many years of frustration, the bill has finally passed Congress. I hope the president chooses to sign this long-overdue upgrading of our waterways into law.
Farm bill – We’ve had many successes, although the bill is not yet complete. Most importantly, our message that revenue protection is the way of the future has been received very well by lawmakers. NCGA will continuing to advocate for the revenue assurance concept to provide better risk management for growers.
International Markets – NCGA worked diligently to reassure our trading partners that there would be enough corn for their needs this year. During an unwanted event in the system we stood behind our growers, kept them informed, continued outreach with industry helped ensure that growers wouldn’t suffer from either lower prices or unnecessary testing.
“We’ve accomplished much in the last year, but much remains to be done. I look forward to continuing to serve you in my new role as chairman and thank you all for the opportunity to have served as your president.“
Senate Okays WRDA Conference Report; NCGA Urges Administration to See Importance of the Legislation
Despite a looming veto threat, the U.S. Senate overwhelmingly passed the Water Resources Development Act (WRDA) conference report by a vote of 81-12, making a WRDA victory within grasp. NCGA President Ken McCauley made the following statement: “Corn growers applaud the diligent leadership and guidance that has brought final passage of the Water Resources Development Act conference report. Additionally, we congratulate the Senate Environment and Public Works Committee and associated staff on a job well done. We are most grateful for their time, effort and determination to see this overdue legislation completed.” With Senate passage, WRDA will be sent to President George W. Bush for his signature. However, the administration has signaled the president will veto the bill when it gets to his desk. Such action would only delay the inevitable as there is strong congressional support for WRDA, making a veto override accomplishable. “It’s unfortunate the administration is threatening veto,” McCauley added. “Our infrastructure cannot keep pace with demands and is falling apart. We must upgrade the lock system on the Upper Mississippi and Illinois rivers to compete in the global market place. Our hope is the president will take seriously his responsibility to ensure our nation has a safe and viable infrastructure by signing WRDA into law. Ignoring that responsibility is a dangerous gamble.” Corn growers nationwide have been long-time advocates for improvements to our inland system. WRDA provides authorization for seven 1,200 foot locks on the Upper Mississippi and Illinois rivers. WRDA is crucial to farmers who depend on the inland waterway system to deliver their crops to the global marketplace and to businesses who rely on the system to move their raw materials and products.
NCGA Grower Leaders Speak Out On the Importance of Trade
National Corn Growers Association (NCGA) Corn Board member Jamie Jamison joined members of the Agricultural Coalition for US-Peru Trade and U.S. Department of Agriculture Acting Secretary Chuck Conner Thursday in Washington, D.C., to urge swift consideration and passage of the Peru Free Trade Agreement. “NCGA strongly supports the Peru Free Trade Agreement,” Jamison told the group. “Under the Peru FTA, if we capture two-thirds of this market, our corn growers could expect a penny per bushel increase in price. In addition, the increased demand in beef, pork and poultry converted into bushels of corn would likely mean another one-half cent.” In his speech, Conner said currently 99 percent of U.S. agricultural exports to Peru went into the country under some type of duty. In contrast, virtually none of their agricultural exports into the United States entered with a tariff. In marketing year 2005-2006, the U.S. market share of the bulk corn market in Peru was 26.9 percent. Most of Peru’s imported corn is from Argentina, our regional competitor. Also at the event was NCGA trade chairman Bob Bowman, who said, “Peru has negotiated trade deals with countries such as Colombia, Brazil and Argentina, and is seeking FTAs with countries like the EU. This agreement will provide U.S. producers and exporters the opportunity to compete on a fair and level playing ground.” Conner also mentioned the other Latin FTAs with Panama and Colombia would provide millions in benefits to the U.S. agriculture sector, as well as the Korea FTA.
NCGA’s Haack Joins Federal Advisory Committee
NCGA Corn Board Member Daryl Haack has joined the Rail Energy Transportation Advisory Committee (RETAC). As a member of the newly created Surface Transportation Board committee, Haack recognizes the importance the nation’s railways are in moving corn from the farm to the ethanol plant for the production of fuel. “I am very privileged to become a member of the Rail Energy Transportation Advisory Committee,” said Haack. “I look forward to bringing my perspective to the committee as a biofuels feedstock producer, as well as an advocate for improved rail performance, capacity and infrastructure development.” He says the current railway infrastructure may not be able to handle the potential volume increases expected to be generated by the ethanol and biofuels sectors. Haack, a corn and soybean farmer from Primghar, Iowa, is the Corn Board liaison to the NCGA Ethanol Committee. He also served as the Ethanol Committee chairman in 2004-2005. In addition, he has served as secretary, treasurer and chair of the Iowa Corn Promotion Board. He has been actively involved in ethanol development, including working on growing markets for distillers dried grains.
Computer Model Should Help Ethanol and Environment, NCGA Says
Crop stover, particularly from corn, has been touted as a potential feedstock for cellulosic ethanol production. But both corn growers and soil experts have been concerned about how much stover could be taken from a field before erosion and nutrient loss becomes a problem. “The general rule of thumb is that 50 percent of stover can be removed, but that’s really a gross estimation,” explains NCGA Director of Research and Business Development Nathan Fields. “On some fields, the figure might be as high as 70 percent, while on others that figure could be much, much lower.” Fields says the U.S. Department of Energy (DOE) and the Agricultural Research Service are working together to develop tools to help farmers know how much stover they can remove while still maintaining a healthy field. The model, called SAFE (Stover Available as Feedstock for Ethanol) combines a geographic information system (GIS) mapping of a field’s characteristics and computer databases that measure the six factors that can be impacted by stover removal:
- Soil organic matter
- Erosion
- Nutrient loss
- Soil moisture and temperature
- Soil compaction
- Overall environmental degradation
Combining those concepts with the geographic precision of a GIS model, says Fields, is the key to a grower knowing which areas can “yield” stover most productively. “Based on the model, growers can have another tool available to decide which parts of their farms to rotate into which crops, which areas to concentrate their fieldwork in, and which might be better left alone,” he explained. “The model is positioned to be a comprehensive land management tool, extracting the greatest value of food, feed, and fuel from a plot while also maximizing input efficiencies and sustainable practices. “ The project is still in the development phase, with DOE targeting test plots for 2008. Fields notes that NCGA may help DOE identify growers to participate in the trials in coming years. The first publicly available working models should be available in 2012.
NCGA Tells Crop Protection Industry “Give Us Tools to Tell the Story”
Growers need more information and more tools to tell their customers and consumers about the role of crop protection products in food production. That was the message of a panel of agricultural producers at the CropLife America annual meeting this week. One of the panelists was NCGA Public Policy Action Team Chairman Steve Pigg. “As producers grow fewer in number, it’s more important than ever that we share with whoever has our interests at heart,” said Pigg. “That was one of the main themes of the meeting – how can we spoke with one voice?” Both food and feed producers are coming under increasing consumer and regulatory scrutiny, Pigg notes. “We agreed that we have a lot of the same issues, and we need to work together,” he says. “The biggest thing the crop protection industry can do is help to educate consumers. Pigg praises a new program by CropLife America, “Bug Busters,” that presents the need for modern crop protection practices in a positive way. That program was unveiled this week at the meeting.
Kansas Corn Growers Association Executive Director Jere White also participated in the conference, discussing governmental policies with members. |
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AROUND THE CORN BELT
News
from State Associations
Illinois: The annual Salute to Agriculture Day at the University of Illinois is scheduled to take place a week from this Saturday. The Oct. 6, 2007 event includes a great football clash featuring the University of Illinois vs. Wisconsin. Game time has been set for 11 a.m. but you will want to come early for the pre-game tent-party festivities that will take place near the stadium starting at 9 a.m. The tent is located just north of the northwest corner of Kirby Avenue and First Street, one block west of Memorial Stadium. Salute to Agriculture tailgate festivities officially begin at 9:00 a.m. The football game will begin at 11:00 a.m. Orion Samuelson of WGN Radio will emcee the Salute to Agriculture Day program. Reservations deadline is Monday, October 1. Register online at our secure website.
Kansas: The Kansas corn assessment refund procedure is based on a voucher system. A copy of that voucher can be downloaded from this web site, or requested by calling the Kansas Corn Commission office. If a producer requests a voucher for refund, the first purchaser must complete the Purchaser's portion of the voucher and give it to the producer. The producer then completes the Seller's portion of the voucher and forwards it to the Commission office. The voucher must contain original signatures of both the purchaser and the seller. No copies of signatures can be accepted. Please do not include any settlement sheets with the voucher as they are not required for the refund and cannot be returned. Refund checks cannot be issues for an amount less than $5. Vouchers must be submitted within one year of the date of sale. You can get a voucher on-line by clicking the link below, or if you would like voucher forms mailed to you, please e-mail Sue Hardman, Programs Manager or call Sue Hardman toll free at 800-489-2676. Click here to download the Corn Voucher Form (pdf)
Michigan: Twenty of the nearly 33,000 National Corn Growers Association (NCGA) members were chosen to attend a leadership academy. Mark Kies, a corn grower from Allen serves as a board member of both the Corn Marketing Program of Michigan (CMPM) and the Michigan Corn Growers Association (MCGA) along with serving as president of the Hillsdale County Corn Growers Association. Scott Lonier, a corn grower from Lansing, serves as a board member for the CMPM and is also a member of the MCGA. Both growers proudly represented Michigan at the three-day event. The event brought in state corn grower association and check-off program board members from across the country to Greensboro, N.C. to attend the first of a two-part leadership academy organized by the NCGA. The program, sponsored by Syngenta Crop Protection, guides current state corn grower and check-off program leaders to even higher levels within their organizations and on a national level through leadership and training activities.
S. Dakota: South Dakota corn producers will soon begin harvesting the largest corn crop on record, an anticipated 559 million bushels. As a result, South Dakota agriculture will reach a new milestone that will positively impact the state's livestock and ethanol industries, as well as the overall economy. To present the facts and dispel the myths surrounding the "food vs. fuel" debate, the South Dakota Corn Utilization Council has launched Kernels of Truth, a statewide information and consumer education campaign. The campaign is intended to reach consumers, retailers, and media throughout the state about the positive effect corn has on South Dakota's economy. To learn more about the Kernels of Truth information and education program, contact Krystil Smit at the South Dakota Corn Utilization Council, (605.334.0100) or e-mail her at ksmit@sdcorn.org
OUR VIEW:
Pro or Con, Let’s Have a Real Discussion About Biofuels (9-27-07)
By Rick Tolman
Chief Executive Officer, National Corn Growers Association
Yet another so-called “study” about the impact of corn-based ethanol on the nation’s food supply has been issued. Like the others, its authors choose facts that support their opinion, and disregard everything else. Once again we’re told ethanol has little impact on the nation’s dependence on foreign oil and is driving up food prices. “Impact,” we guess, is a relative term. Ethanol is replacing 200 million barrels of imported oil per year. With the price of oil above $80 per barrel, ethanol’s impact on oil imports alone is more than $16 billion dollars. Ethanol critics are fond of raising the alarm that using ethanol will require x amount of land to produce x amount of corn – staggering numbers that suggest our environment will collapse under the strain. The truth is no serious supporter of ethanol has ever suggested that all our energy needs could be supplied by corn-based ethanol. The NCGA believes — and has all along — that a rational pathway of ethanol growth exists. One in which corn growers can supply about 5 billion bushels of corn per year from a 15-billion bushel crop for ethanol by 2015. According to the Renewable Fuels Association, that would be enough to blend 10 percent ethanol into every gallon of gasoline sold in the United States. Additional ethanol will come from increased production efficiency and other stocks, such as cellulose, as those technologies come on line. We’d also note that with this year’s corn harvest estimated at about 13.3 billion bushels, even if 5 billion bushels went exclusively to ethanol production, it would still leave more than enough for all domestic uses of corn. Economic studies don’t bear out the repeated drivel that corn prices are driving up food prices. In fact, economists are reporting the impact of higher corn prices is minimal on the price of food, and real-world experience bears that out. No one blamed the cost of corn in 2003 when the average price for USDA Choice beef hit $4.32 a pound while corn was selling for $2.32 per bushel. Or in 2005, when corn sold for $2 a bushel while beef prices reached $4.25 a pound. Just last week ConAgra Foods told stockholders the company’s input costs were $70 million higher than last year. But the profit for its Food and Ingredients segment was up 15 percent. And the company was able to buy back $88 million worth of stock during the same period. We suspect the end of the era of cheap corn is really the heart of the issue. What the anti-ethanol camp won’t tell you is that corn prices have been artificially low for a decade. In fact, cheap corn allowed the food industry to boast that they were holding prices down while simultaneously posting record profits. Instead of arguing over half-truths and suspect data, we suggest opponents of ethanol ask the REAL hard questions:
- How much are we willing to depend on imported oil for our energy needs, and at what cost?
- Who should decide this nation’s alternative fuels policy? The government? The energy industry? The marketplace?
- How can we best deal with the end of 10 years of artificially cheap corn prices?
- How can we help advance the opportunities to produce ethanol from other sources
The National Corn Growers Association is ready for everyone – for or against – to get serious about ethanol. |
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AFT Joins NCGA in Advocating Farm Bill Reform
American Farmland Trust (AFT) stepped up the campaign to pass the proposed Farm Safety Net Improvement Act (S 1872), also known as the Durbin-Brown amendment. AFT joins NCGA in supporting the proposed revenue-based safety net for growers. Insiders on Capitol Hill recently found full page ads in papers distributed to influential leaders in Washington, D.C.: Congress Daily and Roll Call, as well as on the political Web site TheHill.com. The ads call for a revenue protection program based to repair the holes in the current safety net and better protect against crop losses by targeting revenue (price x yield) rather than just price. They’re signed by more than 20 agricultural leaders including NCGA former presidents Lee Klein, Fred Yoder and Leon Corzine. “The proposal takes farm policy to a new level by introducing legislation that is forward-looking and emphasizes a market-based farm program,” said Ken McCauley, NCGA president. “A revenue-based farm policy is one that corn growers have been advocating for the past two years.” NCGA has been promoting a county-based revenue countercyclical program (RCCP). Durbin and Brown’s proposal takes concepts in NCGA’s plan and applies them to the state level. A government payment is triggered when a farmer’s actual revenue (price x yield) falls below 90 percent of the forecasted state target revenue for a specific crop. Private insurance is integrated with the state revenue program which significantly reduces policy premiums for higher levels of individual revenue protection. “While NCGA continues to advocate a county-based revenue program for the 2007 farm bill, the Durbin-Brown proposal is a step in the right direction in reforming farm policy,” McCauley said. “We will continue to work with Congress to pass a farm bill that is fair for all producers while providing a strong safety net.” “These ads and online efforts represent an unprecedented level of involvement by a broad coalition of partners who have come together around the 2007 Farm Bill,” said AFT President Ralph Grossi. “The Durbin-Brown legislation provides a real opportunity for real and positive change in the 2007 Farm Bill, change that will benefit farmers, families and the federal budget.” Click here to read the AFT ads.
Inslee, Conner Added to Cellulosic Summit Speakers List
U.S. Representative Jay Inslee will give the keynote address for the opening ceremonies at this year’s Cellulosic Ethanol Summit in Washington, D.C., Oct. 15-17. NCGA is one of the participating sponsors in the summit. Acting Secretary of Agriculture Chuck Connor will address the convention on Agriculture’s Role in Building a national Cellulosic Ethanol Industry. Connor replaces former Secretary Mike Johanns.
From This Week’s Blog: Big Oil Stalling Drive to Ethanol
This may not come as news to those of us close to the ethanol industry, but it is amazing to see a major business publication take the oil industry to task for fighting E85. An October 1 article in Business Week entitled the “Big Oil’s Big Stall On Ethanol” claims that oil companies “seem determined to fight the spread of E85, a fuel that is 85% ethanol and 15% gas.” At the same time the industry is collecting a 51 cents-per-gallon federal subsidy for each gallon of ethanol it mixes with gas and sells as E10 (10% ethanol and 90% gas), it’s working against the E85 blend with tactics both overt and stealthy. Efforts range from funding studies that bash the spread of ethanol for driving up the price of corn, and therefore some food, to not supporting E85 pumps at gas stations. The tactics infuriate a growing chorus of critics, from the usual suspects—pro-ethanol consumer groups—to the unexpected: the oil industry’s oft-time ally, the auto industry. This is a very interesting article that makes many of the points the ethanol industry has been saying for months now. There is also a comments section for it - provide some feedback! Check out the Corn Commentary blog. |
KEY ISSUES
