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News > Corn Commentary > December 21, 2007 Volume 14 Number 47
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HAPPY HOLIDAYS TO YOU!

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 NCGA
NCGA Inaugurates Election Education Program (12-17-07)
Corn Yield Contest Winners Named (12-17-07)

IN THIS ISSUE:

  • American Farmers Help Keep U.S. Food Prices Affordable and Contribute Greatly to National Energy Security
  • Commodity Classic Trade Show Sells Out and Sets Record
  • It’s Law! NCGA Celebrates Signing of Energy Bill
  • NCGA Hails House Passage of Energy Bill; Measure Moves to President’s Desk
  • NCGA Recognizes State-Level Corn Yield Contest Winners
  • New USDA Numbers Dispel Food And Fuel Debate; Supply Set to Outpace Demand
  • NCGA Names National Corn Yield Contest Winners
  • Stories from This Week’s Blog

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American Farmers Help Keep U.S. Food Prices Affordable and Contribute Greatly to National Energy Security

The traditional holiday meal might cost $4 more this year – and families are sure to be paying higher prices at the pump for gasoline as well – but a look at the facts shows it's more likely energy prices, not ethanol prices causing the rise.

Heated discussions on food prices and supplies have stridden in lockstep with debate of the energy bill to be signed today, which sets a quota for 36 billion gallons of biofuels and 15 billion gallons from corn-based ethanol. But those discussions linking food and gasoline prices to ethanol use are flawed.

  • It's true that holiday dinner for 10 will rise about $4 this year, but the real dollar price adjusted for inflation has actually dropped by about 9 percent in the past 20 years, according to the American Farm Bureau Federation.
  • Americans spend about 10 percent of their disposable income on food. Households in India often spend 50 percent; many European countries spend double what Americans do.
  • Farmers work hard to ensure our food supply is not only safe and secure, but plentiful enough to meet all demands and retain affordable food prices consumers have come to expect. Corn producers are harvesting the largest crop on record -- more than 13 billion bushels. Of that, nearly 2 billion will remain for use next year.
  • Farmers contribute to national energy security and no shortage of corn will result because of increased ethanol production.
  • Ethanol production is projected to use 17 percent to 18 percent of corn yields with roughly 30 percent being returned to the feed system as distiller grains, which have higher unit protein content than the original corn.
  • New technologies are resulting in continuing increases in per acre corn yield, making unlikely any shortages for food or fuel, even for global supplies.
  • Corn growers are part of the solution to high energy prices. They are helping to create a more secure energy future for Americans by producing corn for cleaner-burning renewable ethanol, and not at the expense of providing food.

"Collectively, America's farmers have harvested the largest corn crop in history this year," says Ken McCauley, farmer and chairman of the National Corn Growers Association. "With increasingly demanding food, feed and fuel needs to meet, they have worked hard to ensure our food supply is not only safe and secure, but plentiful enough to meet all demands and retain the affordable food prices consumers have come to expect."

To learn more about the impact farmers have on keeping the country's food costs affordable while stretching energy resources, visit www.farmersmatter.org. Consumers can also leave their own message thanking farmers this holiday season by participating in a video contest and entering to win $1,500.

Commodity Classic Trade Show Sells Out and Sets Record

The 2008 Commodity Classic trade show is sold out and a waiting list is in place for additional exhibitors. The trade show, featuring cutting-edge products and services and technological demonstrations, will be the largest in Commodity Classic’s history with 213 companies in 840 booths. A complete list of exhibitors and their products/services can be viewed at www.commodityclassic.com.

Commodity Classic, the annual convention and trade show of the American Soybean Association (ASA), the NCGA, and the National Association of Wheat Growers (NAWG) will be held Feb. 28-March 1 in Nashville, Tenn.

“The Commodity Classic trade show has more than doubled in size since its inception in 1996,” said Commodity Classic co-chair and NCGA Corn Board member Theresa Schmalshof.  “This year’s trade show will set a record with 16 percent more booths than the 2005 Commodity Classic, our largest show in history.” 

“Exhibitors at the trade show have access to some of the most progressive growers in the country,” said Commodity Classic co-chair and ASA Vice President Randy Mann. “Most importantly, the growers at our trade show are the decision makers seeking information about products they plan to purchase.”

Companies interested in participating in the 2008 Commodity Classic trade show should visit www.commodityclassic.com, download an exhibitor contract from the “Exhibitors” tab, and fax the completed form to (636) 244-1650 to be placed on the waiting list.  For more information, call (636) 922-5551 or send an e-mail to commodityclassic@charter.net.

In addition to the tradeshow, Commodity Classic will feature valuable educational sessions, association banquets, entertainment events, and important networking opportunities.  Registration and housing reservations are being accepted now.  For more information, please visit www.commodityclassic.com.

 


Researchers Visit from Toyko

Members of the Norinchukin Research Institute (NRI) visited NCGA offices in St.Louis this week to learn about association issues and discuss ethanol, research and farm policy. From left are: Nathan Fields, NCGA director of research and business development; Max Starbuck, NCGA director of production and stewardship and livestock; Tetsurou Shimizu, NRI chief researcher; and Akihiko Hirasawa, NRI chief economist; Fred Stemme, NCGA vice president of marketing; and Paul Bertels, NCGA director of biotechnology and economic analysis.

AROUND THE CORN BELT
News from State Association

Kansas: E85 Fuel Now Available at 28 Kansas Stations:
Not too long ago, drivers of flexible fuel vehicles were lucky to find a handful of Kansas fuel stations that carried E85, 85 percent ethanol fuel. Today, motorists can find E85 in 28 stations across Kansas, with more on the way.
The newest stations are located in Arkansas City, Burlington, Oakley, Parsons, Thayer and Topeka.

“Our association staff drives flexible fuel vehicles. Thanks to the increase in the number of E85 stations, we can now drive on E85 fuel no matter where we go in Kansas,” according to Sue Schulte, communications director for the Kansas Corn Growers Association and Kansas Grain Sorghum Producers Association.
While E85 fuel has many benefits, most drivers notice the price first.

“There are so many reasons to use E85 fuel. It is domestically produced ethanol, made from corn and grain sorghum. It burns cleaner and is better for the environment. But it is the price that is attracting the most attention right now. At 40 to 60 cents below regular unleaded, E85 fuel is a great deal,” Schulte said.

While there is a drop fuel economy for E85 fuel because ethanol contains a lower energy content, KCGA and KGSPA staff have not found the dramatic decreases in fuel economy that is reported by some sources.

“We’ve been using E85 in flexible fuel vehicles for year, and while we see about a small loss in fuel economy, the price of the fuel will normally more than make up for that difference,” Schulte said. “If you live near an E85 station, it will be worth your time to check your owners manual to see if you have a flexible fuel vehicle.”

E85 is 85 percent ethanol fuel that can be used in flexible fuel vehicles (FFVs) that operate on any combination of gasoline and ethanol up to 85 percent ethanol. There are over 6 million FFVs on the road today.
For a complete list of E85 stations in Kansas, visit the Kansas Ethanol website at www.ksgrains.com.


It’s Law! NCGA Celebrates Signing of Energy Bill

NCGA President Ron Litterer issued the following statement today regarding final passage of the Energy Independence and Security Act.

“NCGA is delighted President George W. Bush signed the energy bill into law today, taking an historic step in strengthening America’s national security and reducing the country’s dependence on foreign oil.

“NCGA appreciates Congress’s strong bipartisan leadership in getting the energy bill to the president’s desk.  This legislative victory would not have been possible without the many renewable fuels advocates who paved the way.  This energy bill demonstrates that leaders in both the Democratic and Republican parties clearly understand the future energy needs of this country.

“Additionally, I commend the nation’s corn growers for their efforts in making the 15 billion-gallon renewable fuels standard (RFS) for corn ethanol a reality.”

NCGA Hails House Passage of Energy Bill; Measure Moves to President’s Desk

A renewable fuels standard (RFS) of which 15 billion gallons comes from corn, inched closer to law today, creating a solid foundation for grain-derived ethanol to continue to flourish, according to the National Corn Growers Association (NCGA).

The bipartisan house passage today of the Energy Independence and Security Act is the last stop before the president’s desk. The measure includes a 36 billion gallon RFS by 2022.

“We are ecstatic that a robust energy bill is finally within reach,” said NCGA President Ron Litterer.  “The passage of this historic bill is a major step toward energy independence.  We eagerly await the president signing this legislation into law.” 

NCGA thanks the House Leadership for their diligence and dedication in passing this vital national energy security legislation.  “We are grateful to the many renewable fuels champions of the House who made this legislative victory possible,” Litterer added. 

Corn growers nationwide have been vocal in advocating for an energy bill.  “The National Corn Growers Association put out a national call to its members to contact their congressional leadership and they responded in a big way,” Litterer said.  Growers contacted their members of Congress, wrote letters, sent e-mails, attended town hall meetings, and made Capitol Hill visits.  Their diligence has truly paid off.”

Other provisions in the bill include:

  • Requirement of 9 billion gallons of renewable fuels in 2008, progressively increasing to the 36 billion gallon requirement by 2022, including a 1 billion-gallon mandate for biodiesel;
  • Increases in the Corporate Average Fuel Economy (CAFE) standards to 35 miles per gallon by 2020, the first congressional increase in 32 years;
  • Studies on the feasibility of ethanol pipelines, higher blend levels and the optimization of flex fuel vehicles.

NCGA is hopeful that the president will sign the bill into law by Christmas.

NCGA Recognizes State-Level Corn Yield Contest Winners

Out of a record number of entrants, 529 corn growers were recognized as tops in their field for the 2007 harvest , breaking records left and right and coming out on top as state-level winners of the National Corn Yield Contest. State results are now available online.

NCGA Names National Corn Yield Contest Winners

Innovative production techniques and improved seed varieties helped corn growers achieve top numbers in the National Corn Grower Association (NCGA) 2007 National Corn Yield Contest. Not only was the number of entries higher than ever, several entrants scored yields of more than double the estimated average.

"We're always excited to see the yield levels achieved by growers," said Steve Ebke, vice chairman of NCGA's Production and Stewardship Action Team and a grower from Daykin, Neb. "This contest demonstrates the sort of production innovation that has helped our corn farmers meet the demand for corn-based food, feed, fuel and fiber."

The 27 national winners in nine production categories had verified yields averaging more than 298 bushels per acre, compared to the estimated national average of 153 bushels per acre. Ten winners (and 24 entrants overall) posted yields of more than 300 bushels per acre.

While there is no overall winner in the contest, yields of farmers who placed first, second and third in their production categories ranged from 252.6366 by Gary Porter of Mercer, Iowa, to 385.5861 by David K. Hula of Charles City, Va.

The national and state contest winners will be honored at the 2008 Commodity Classic, the combined convention and trade show of NCGA, the American Soybean Association and the National Association of Wheat Growers, Feb. 28 to March 1 in Nashville, Tenn. Contest winners will also be featured in a special edition of Farm Journal magazine. This year’s guide is sponsored by BASF, Bayer CropScience and Deere & Company.

Click here for the list of national winners . A list of state-level winners will be forwarded to participating seed companies and state corn growers associations today, and posted online here later this week.

From This Week’s Blog: To read comments from this week’s Corn Commentary Blog, please click the bullets below:

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

NOTE:   There will be no Corn Commentary the week of December 28, 2007 due to the Holidays.

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

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