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News > Corn Commentary > October 26, 2007 Volume 14 Number 40
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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.

LISTEN TO THIS WEEK’S AUDIO STORIES

IN THIS ISSUE:

  • NCGA’s Haack Participates in Newly Created Transportation Advisory Committee
  • NCGA Disappointed in Farm Bill Markup Results
  • WRDA Reaches President’s Desk
  • EU OKs Three More Corn Biotechnology Traits for Food, Feed Use, NCGA Notes
  • NCGA Finds Opportunities to Educate as Senate Farm Bill Action Nears
  • NCGA, Farm Groups Urge House and Senate Leadership to Support an Expanded RFS
  • Three Join NCGA Staff
  • From the Blog:  King Corn – Fantasy Farming

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NCGA’s Haack Participates in Newly Created Transportation Advisory Committee
NCGA Corn Board Member Daryl Haack attended a newly created Surface Transportation Board (STB) Rail Energy Transportation Advisory Committee meeting in Washington, D.C., this week. Haack stressed the importance of improved rail performance, capacity and infrastructure development.

“The transportation infrastructure should be a national priority,” said Haack. “As a biofuels feedstock producer, I recognize that agricultural products have opportunities for growth with new and growing markets. We need to be able to take advantage of these opportunities in the marketplace by addressing the problems with the nation’s railroads, bridges and roads.”

The purpose of the committee is to provide advice and guidance to the board and serve as a forum for discussion of emerging issues, regarding the transportation by rail of energy resources, including corn-based ethanol and other biofuels.

This week, NCGA also joined national agricultural and transportation groups in supporting The Railroad Competition and Service Improvement Act of 2007 – S. 953 and H.R. 2125--which would facilitate more efficient and timely grain transport on the nation’s freight railroads to the market. Efforts included placing an advertisement in several Washington print media outlets. Click here to view the advertisement.

NCGA Disappointed in Farm Bill Markup Results
NCGA is pleased the Senate Agriculture Committee included a revenue option in the 2007 farm bill, but is disappointed by the committee’s action to strip a key component of the optional revenue-based countercyclical program, the integration with federal crop insurance. It is a missed opportunity to provide a better risk management tool in the new farm bill, said NCGA President Ron Litterer.

Committee Chairman Tom Harkin (D-Iowa) included a state triggered revenue countercyclical program – called the Average Crop Revenue (ACR) program – in the package he presented to the committee this week. Included in that package was a requirement to integrate crop insurance with the revenue program.

An amendment accepted by the committee on a voice vote stripped the crop insurance integration from the revenue package. Corn growers support an optional revenue program starting in 2010.

Litterer—on Capitol Hill for the markup—sees the progression of events as a first step in a revenue option to improve the farm bill package. “While we are pleased a revenue package is in the final bill reported out of committee, NCGA is deeply disappointed with this setback,” he said. “The amendment makes the revenue proposal a much less attractive option to growers.”

NCGA has received assurances from Senate Agriculture Committee Chairman Tom Harkin, Majority Whip Richard Durbin (D-IL), and Sherrod Brown (D-Ohio) that they will work toward a revenue package that is a viable option for corn producers.

The bill is expected to be on the Senate floor the week of Nov. 5.

WRDA Reaches President’s Desk
The NCGA urges President George W. Bush to sign the Water Resources Development Act (WRDA), noting the overwhelming support from the Senate and the House of Representatives.  WRDA would include the construction of seven locks on the Upper Mississippi and Illinois Rivers.

NCGA President Ron Litterer—on Capitol Hill for the farm bill markup—notes the importance of WRDA.  “Our hope is that the president will see the importance of lock modernization on the Upper Mississippi and Illinois rivers,” said Litterer.  “Our goal is to make the entire system more efficient and improve our ability to market grain and grain by-products globally.”

The administration has signaled that the president will veto the bill.  The president will have 10 days, excluding Sunday, to sign the bill into law, veto it, or let it become law without his signature.  If the president vetoes the legislation, there is strong congressional support in both the House and Senate to override the action. 

 

AROUND THE CORN BELT
News from State Associations

MINNESOTA:  A group of 13 Japanese visitors toured Minnesota October 18 and 19, to get a first hand look at the production of distillers grains they are considering feeding to livestock.
"With the continuing strength we are seeing in the corn market, distillers grains is gaining more and more acceptance as an alternative feed ration," said Roger Moore, president of Minnesota Corn Growers Association. "The U.S. ethanol industry has quickly become a real engine for economic development in rural America, and distillers grains will become an even more important part of that economic strength, as the build-out of ethanol continues."  Distillers grains, the animal feed product made from the corn kernels after they have been used to make ethanol, have seen a steeply climbing level of market acceptance in Japan over the past two years. In 2005, U.S. producers exported 2,824 Metric Tons (3,113 U.S. tons), but last year, the figure shot up to 45,248 metric tons (49,876 US tons)-still a relatively small portion of total distillers grains production, but an indication how quickly the market can grow.
"Consistency of the nutrition content of the distillers grains was one of the biggest concerns of the Japanese buyers," said Riley Maanum, a research assistant at Minnesota Corn Growers Association, who accompanied the group on its tour. (Click Here).

ILLINOIS:  The grower and consumer friendly concept of a revenue assurance based farm bill seemed well on its way to reality in the Senate, only to see it seriously modified after intense opposition from the influential crop insurance industry and the American Farm Bureau Federation.  After reaching a framework agreement with Ranking Member Saxby Chambliss (R-GA) and Kent Conrad (D-ND), Senate Ag Committee Chairman Tom Harkin (D-IA) announced the inclusion of a state level revenue-based counter cyclical Average Crop Revenue (ACR)  in The Farm Safety Net Improvement Act of 2007.  But Sen. Pat Roberts and several of his Republican colleagues orchestrated an assault on the ACR to prevent its integration with federal crop insurance, a benefit that would have lowered crop insurance premiums by an estimated overall 24 percent after the re-rating of policies.  (More on this Story)

OUR VIEW:

Why are they after us?

By Rick Tolman
Chief Executive Officer, National Corn Growers Association

When my kids were growing up and I asked them why they had done something, their automatic response was always a simple “Because.” If I wasn’t careful, I’d end up in the frustrating why-because-why-because circle.(More On This Story)


 EU OKs Three More Corn Biotechnology Traits for Food, Feed Use, NCGA Notes

Corn and corn products produced from hybrids containing Herculex RW and two stacked traits, YieldGard Plus with Roundup Ready 2 and Herculex I with Roundup Ready 2, can now be exported to the European Union (EU), the National Corn Growers Association (NCGA) notes. The three biotech corn traits have received positive safety assessments from the European Food Safety Authority and are now approved for food and feed export into the 27 countries of the European Union.

"We're pleased to see the European Union's regulatory system make this move," said Martin Barbre, chairman of the NCGA's Biotechnology Working Group and a corn grower from Carmi, Ill. "These corn traits have already been approved in the U.S., Japan and other major markets. Now with EU approval growers will have greater market access for their grain, and processors and ethanol plants can continue to export Corn Gluten Feed and Distillers Dried Grains."

In 2004, the European Union ended a six-year moratorium on new biotech products with the adoption of stricter labeling standards. "Although the approval process has resumed, there is still a significant time lag between the approval processes in the U.S. and the EU," said Barbre. U.S. corn growers have 23 commercially-available traits or combinations of traits, and with these recent EU approvals, now 15 of them are cleared for import into Europe.

As growers begin to make their hybrid selections for next year, they must still be aware that not every trait or stack is approved in the EU. The seed industry will continue to identify hybrids from non-EU approved traits under the Market Choices TM label. In cooperation with the nation's leading seed companies, the National Corn Growers Association has compiled "Know Before You Grow," a database of the biotech corn traits currently available. This database lists whether a corn trait is approved in Japan and/or European Union- and allows growers to compare commercial hybrids that contain those biotech traits. NCGA developed and frequently updates this database is a tool to help growers make informed decisions. For more information, visit www.KnowBeforeYouGrow.com.

NCGA Finds Opportunities to Educate as Senate Farm Bill Action Nears
The NCGA continues to emphasize the benefits of an optional revenue assurance program as farm bill discussions continue on Capitol Hill.  

Corn producers have noted the dramatic changes in U.S. agriculture and commodity markets since the passage of the current farm bill and have presented Congress the opportunity to strengthen agriculture policy through meaningful reform.  Last week, NCGA sent a letter to Senate Agriculture Committee members Chairman Tom Harkin and Ranking Member Saxby Chambliss asserting farmers should be given an option of choosing a revenue countercyclical program (RCCP), the Average Crop Revenue program.

The letter, signed by NCGA President Ron Litterer, refuted several objections to the program. More than three years ago NCGA began exploring policy options that would enhance market orientation and effectiveness of the farm safety net, and the policy alternative NCGA supports has been subject to extensive peer review, analysis and input from other commodity organizations.

“NCGA understands the criticisms that greet most farm policy reforms are to be expected, but the fact remains that the proposed revenue counter cyclical program, ACR, is an optional program,” the letter states. “Producers should be allowed the choice of programs that makes the most sense for their farm operations.”

To read the letter in its entirety, click here.

NCGA, Farm Groups Urge House and Senate Leadership to Support an Expanded RFS
In an urgent letter to House and Senate leadership Friday, the NCGA and other agriculture groups advised Congress to support an expanded Renewable Fuels Standard (RFS).

The letter acknowledges Congress’ commitment to reducing the nation’s dependence on foreign energy sources and creating a domestic, renewable energy source. Additionally, the farm groups noted, grain-based and cellulosic ethanol are needed to significantly decrease the country’s dependence on foreign oil.
Corn growers have responded to the call for more corn by planting more than 93 million acres of corn this year, up 15 million acres from 2006.

“Unfortunately, unfounded reports have recently surfaced that ethanol is the cause for driving up the prices consumers pay at the grocery store,” the letter said. “While it is true that ethanol has helped provide farmers a better price for their grain, host of other factors – including world weather conditions and record oil prices – all play a greater role in the marginally rising price of food than does the growth of the U.S. ethanol industry. At the same time, recent USDA statistics show that while inputs from agriculture have declined, productivity has risen – demonstrating that farmers are responsibly and effectively meeting demand while optimizing environmental benefits.”

The letter also stated that the nation is at a crossroads in dealing with energy security and that the U.S. cannot have food security without energy security. “If we are to alter the trend of unsustainable dependence on imported oil and the resulting massive transfer of our nation's wealth to unstable regimes, we must act decisively to diversify our transportation fuel system with both grain-based and cellulosic ethanol.”

The groups urged Congress to pass an energy bill with an expanded RFS before the end of the season.

Click here to read the entire letter to House and Senate leadership.

Three Join NCGA Staff
The NCGA announces the addition of three employees to its staffs in St. Louis and Washington, D.C. Ken Colombini and Christina Koboldt join the NCGA marketing department as marketing managers. Bradford Voegeli joins as legislative and political affairs specialist.

Colombini will be responsible for publication writing, news writing, speeches and presentations. He will be based in St. Louis. Most recently he has worked as a communication consultant, providing freelance communications and public relations services to clients with a focus on corporate social responsibility. Additionally, he has held positions at Anheuser Busch Companies as a communications manager/director; California State Parks as deputy communications director; California State Legislature as director of member communications and as a speechwriter for California Governor’s office. He began his career as a journalist, writing for newspapers in California. Colombini has a Liberal Arts degree from Thomas Aquinas College.

Koboldt will be responsible for the marketing and public relations activities of key NCGA events, including Commodity Classic, the joint tradeshow of the NCGA, the American Soybean Association and the National Association of Wheat Growers; the Corn Utilization and Technology Conference and other key events. She will also provide media relations for the association. She will be base in St. Louis.

Prior to joining NCGA she worked as a public relations associate at Lents & Associates Public Relations firm in St. Louis. Koboldt has a Bachelor of Arts in Mass Communications from Lindenwood University and a Master’s in Journalism from the University of Missouri at Columbia. Additionally, she was an account executive with Weintraub Advertising in St. Louis.

Voegeli joins the NCGA Washington office, where his duties will include answering the phone and day to day management of the CornPAC.  He will be responsible for updating advocacy materials and coordinating issue information.  Voegeli is graduate of the Pratt Institute in Brooklyn.

From This Week’s Blog: King Corn–Fantasy Farming Got an interesting email from a corn grower in Iowa. Pam Johnson lives not too far from Greene, Iowa, where the movie King Corn was shot. She tells a different story.

These are her comments:

I had the opportunity to preview the movie King Corn, the story of two young men who return to Iowa to explore the community where their great grandparents once lived. It was interesting to see their perspective as they grew an acre of corn, but they missed the mark several times by their assumptions.

A movie is fun, but this is serious, because they assume corn is the root of all evil in the food system and they intend to use their assumptions to influence food policy.

They begin with the assumption that they are “going to die,” that they will have a shorter life span than their parents and that corn is to blame. The people they interview claim corn has no nutritive value, that corn is “crap”, that corn is a poison for cattle, that corn is solely responsible for making Americans obese and the cause of diabetes. They go on to say that corn is destroying us all, that it is foul to the human palate. When they finish harvesting their acre of corn, they lament that: “we have been farmers for nine months and our crop will be eaten by real people.” As a fifth-generation corn grower who is thankful to be able to harvest and provide for an abundant food supply, I have a different story to tell. This story may not make the movies, because presenting our truths and backing them up with facts and figures is just not as entertaining as “fantasy farming.” As in our grandparents’ day, farmers continue to provide an abundant and safe food supply. We believe that providing corn fed meat to our nation’s tables and those of a hungry global population is a good and honorable task. We believe that our children and grandchildren can live long and healthy lives if they eat and drink in moderation and exercise.

I attended the World Food Prize Symposium this past week, which addresses world hunger. As Norman Borlaug, the father of the green revolution credited for saving millions of hungry people said, “It is easy to criticize when your belly is full.”

An abundance of choices in healthy food is a blessing for Americans. Teach this to your children’s children. Tell them the whole story of food and agriculture.

To provide feedback to this comment, please Check out the Corn Commentary blog.

   
Next Week
 

Oct 31 - Nov 2:

NCGA & State Executive Meeting, Washington, D.C.

To View Your Local Weather Forecast, (Click Here)

Calendar information is available on the NCGA Leader Resource Center, http://www.insidencga.com
© 2007 National Corn Growers Association

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