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News > Corn Commentary > November 30, 2007 Volume 14 Number 44
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NCGA’s Mission: To Create and Increase Opportunitiesfor
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:

  • Congress Near Agreement on RFS Goal
  • NCGA Celebrates WRDA
  • NCGA Thanks Chief Economist Dr. Keith Collins for Contributions to Agriculture
  • Crop Acreage Trends Demonstrate Efficiency
  • 2007’s Average Corn Yields High, But NCGA Contest Entrants are Real Champs
  • New USDA Numbers Dispel Food And Fuel Debate; Supply Set to Outpace Demand
  • NCGA Urges Members to Support an Expanded RFS
  • From This Week’s Blog: Anti-ethanol baton passes to USA Today

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Congress Near Agreement on RFS Goal

As both houses of Congress work together to craft and pass unified energy legislation before the end of the year, the Senate and the House of Representatives have each brought forth a 15 billion gallon renewable fuel standard for consideration. This is terrific news for U.S. corn farmers, said Ron Litterer, president of the National Corn Growers Association (NCGA).

“We’ve always believed 15 billion gallons was possible to achieve by 2015,” Litterer said. “It is a necessary element in any sensible energy security package and we hope to see it in the final Energy Bill package.”

The National Corn Growers Association (NCGA) sees a three-step approach to this goal: increasing corn production overall by boosting yield, increasing how much corn goes to fuel production by emphasizing the valuable coproducts such as distillers grains, and increasing efficiency in the production of ethanol so more ethanol is produced from a bushel of corn, and from corn fiber.

“We’re more than meeting demand in all categories now, with a high level of surplus corn projected for the 2007 season,” said Ron Litterer. “This provides us a good cushion for the coming season and demonstrates that we can make progress in ethanol production without cutting back on food and feed supplies.”

As floor action on the legislation nears, the NCGA continues its action alerts for corn growers, asking them to contact their lawmakers about the importance of the 15 billion gallon renewable fuel standard.

NCGA Celebrates WRDA

The National Corn Growers Association (NCGA) hosted an evening reception Nov. 29 to thank those whose years of efforts led to the passage this month of the Water Resources Development Act of 2007 (WRDA), which authorizes expenditures for key waterway infrastructure projects. Joining NCGA President Ron Litterer, left, were U.S. Rep. Jerry Costello (D-Ill.) and Art Bunting, president of the Illinois Corn Growers Association.

NCGA Thanks Chief Economist Dr. Keith Collins for Contributions to Agriculture

The National Corn Growers Association (NCGA) thanks Chief Economist Dr. Keith Collins for his many contributions to the U.S. Department of Agriculture (USDA).  Collins announced his retirement from the agency, effective Jan. 3, 2008.

“Keith Collins has been a trusted source for agricultural statistics, economic indicators and their impact on agriculture policy,” said NCGA President Ron Litterer.  “Over the years, NCGA eagerly anticipated Collins’s agricultural forecasts and projections.  We appreciate his bipartisan spirit and ability to work well with Democratic and Republican administrations.”

Dr. Joseph Glauber is named acting chief economist. Glauber, the agency’s deputy chief economist since 1992, is expected to assume the responsibilities of chief economist in mid-December after returning from temporary assignment to the office of the U.S. Trade Representative. He will maintain his role as Special Doha Agricultural Envoy for the United States.

 

AROUND THE CORN BELT
News from State Association

New York Corn Expo- Good to Great 2010
Featuring: Dr. David Kohl, Professor Emeritus, Virginia Tech University
An internationally popular speaker, Dr. David Kohl will provide an entertaining and thought provoking presentation on achieving excellence in agriculture. You don’t want to miss this opportunity to hear from one of the most dynamic speakers in the ag industry today.

January 29, 2008
Waterloo Holiday Inn, Waterloo, New York

For more information regarding the NY Corn Expo, (Click Here)

ILLINOIS: The Illinois Corn Growers Association is asking for your help to educate our Illinois Congressional Delegation about the importance of passing an energy bill including a Renewable Fuels Standard. 

As the cost of a barrel of crude oil increases to $95 a barrel and possibly higher, the US really needs a Renewable Fuels Standard that calls for 15 billion gallons of ethanol by 2015 in order to keep fuel costs low.  Decreasing our dependence on foreign oil is a second important reason to pass this initiative. 

Please contact your Congressman at his or her district office soon to encourage them to pass an energy bill soon!  The ethanol industry will not grow until we have this Renewable Fuels Standard in place. Please click here for a list of contact names and phone numbers.


NCGA Applauds Sen. Conrad’s Work on Farm Storage Facility Loan Programs

Many critics of the acreage dedicated to corn fail to acknowledge the increased efficiency that produces so much more corn on fewer acres, according to the National Corn Growers Association (NCGA).

Corn critics lamenting the loss of acreage for other crops have become louder, blaming America’s corn growers for shucking other crops. Most recently, for example, an increase in the price of beer has been tied to fewer acres farmed for barley, leading to such headlines as “Price Increase on Tap for Beer” and “Higher Beer Prices Brewing.”  The writers of these stories appear to ignore the fact that barley acreage expanded 16.4 percent in 2007.

The fact is, many considerations go into planning what crops a farm’s acreage will grow. And while corn acreage has increased in the short term, the trend has not been consistent, nor at a historic high.

“We’re looking at projections that have corn acreage declining a little and leveling off for the short term,” said NCGA President Ron Litterer, a grower from Greene, Iowa. “It’s always a matter of supply and demand … as well as weather.”

The U.S. Department of Agriculture (USDA) tracks corn crop production going back to 1866. From that year to the end of the 19th century, the acreage planted for corn in our growing nation increased more than three-fold, from 30 million to 94.5 million acres. In the 20th century, acreage planted for corn peaked at 113 million acres in 1932 and then tapered off, ranging up and down the 70 million-to-95 million range for the rest of the century, with a few anomalies such as 60 million in 1983. For the 2007 growing year, an estimated 93.6 million acres of corn were planted. Surplus corn, or carryout, for the 2007 season is projected at 1.9 billion bushels, a 45 percent increase over 2006. This surplus is well above the 20-year average and is the fifth-highest level in the last two decades.

Other media reports state that the development of farmland for corn is destroying precious “open space” lands not previously used for farming. In reality, the number of acreage used for farming has been trending downward over the past few decades. In 1932, the year that corn saw the highest acreage count, all acreage under cultivation was 320.4 million acres, while in 2007 the total acreage under cultivation was an estimated 278.1 million. The development of suburban communities in the second half of the 20th century was a major contributor to the decrease of acreage for both farmland and parkland.

What is far more significant when looking at demands for certain crops, and how they are met, is crop production. Corn production in particular has increased more than five-fold between 1932 and 2007. The average yield, represented as bushels per acre, went from 26.5 in 1932 to an estimated 153.0 in 2007. The number of additional acres needed to harvest 2007’s projected production according to 1932 standards would be more than 400 million acres – equivalent to a farm more than twice the size of Texas.

Experts believe average yield can increase to 170 or more over the next decade. “When it comes to feeding the hungry and providing fuel alternatives and numerous other products, America’s corn growers are doing it wisely – and efficiently.” Litterer said.

2007’s Average Corn Yields High, But NCGA Contest Entrants are Real Champs

In its most recent monthly crop production report, the federal government estimates corn yields are expected to average 153 bushels per acre for the year. While this represents the second-highest yield in history, it pales in comparison to what growers have reported in the National Corn Growers Association’s annual National Corn Yield Contest.

The National Corn Yield Contest has been the premier event of every corn-growing season for more than four decades. While not all harvest reports have been submitted, this year’s competition has more than 4,900 entrants. In 2006, the NCGA contest drew 3,157 entrants from 44 states and the 27 winners (representing nine production categories) had verified yields of more than 240 bushels per acre, and seven winners posted yields of more than 300 bushels per acre.

Harvest forms must be postmarked to the NCGA no later than Dec. 1, and winners will be announced Dec. 17. The complete results will be published in the mid-February issue of Farm Journal and awards will be presented to state and national winners on Feb. 29 at the 2008 Commodity Classic in Nashville, Tenn.
Click here for more information.

NCGA Urges Members to Support an Expanded RFS

The National Corn Growers Association (NCGA) urges its members and supporters nationwide to contact their members of Congress to support an expanded Renewable Fuels Standard (RFS) of 15 billion gallons of corn ethanol per year by 2015.  NCGA issued an Action Alert to its members to express their concerns for an expanded mandate while the energy bill is debated.

“It is imperative that members of Congress know the importance of an expanded RFS,” said NCGA president Ron Litterer.  “As the energy bill continues to move forward, we need to ensure that our voices are heard loud and clear.”

With oil approaching $100 barrel, Congress can make a clear statement about the energy future of this nation.  They must choose wisely to break the country’s dependence on foreign oil, Litterer added.
Information on the Action Alert is available at www.NCGA.com and the Legislative Action Center http://capwiz.com/ncga/home/.  Growers may call the U.S. Capitol Switchboard at (202) 224-3121. The operator will connect you directly with the Senate and House office you request.

From This Week’s Blog: Anti-ethanol baton passes to USA Today

The well-oiled anti-ethanol lobby apparently called the editors of USA Today and told them it was their turn today to jump on the attack, with a story on a weeks-old RAND Corporation report questioning the cost benefits of E85 fuel. A few points to consider:
First, the science and technology behind biofuels and other alternatives is constantly shifting and improving, so such studies only offer a shapshot view of little to no real value.

Second, some aspects of researching and developing any and all non-petroleum alternatives are difficult to quantify in an economic sense. A brief look at whether E85 may or may not cost more to a consumer is only a look at one side of an issue that has so many other dimensions of more significance.
The RAND report is called a “working paper.” We hope they will keep working to improve it and we would refer them to ethanolfacts.com or the National Ethanol Vehicle Coalition.

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

   
Next Week
 

Dec. 3-4

NCGA CEO Rick Tolman will attend the Canadian RFA 4th Annual Summit in Quebec, Canada

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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