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:

• NCGA Briefs Visiting Japanese Officials
• 2007 Corn Yield Contest Guide Available
• NCGA Newest “Research” on Food Prices Doesn’t Add Up
• NCGA Newest Member Benefit a Big Money-Saver
• Commodity Classic Offers Full Slate of Agricultural Topics for Farmers
• From This Week’s Blog Stories

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NCGA Briefs Visiting Japanese Officials

On Friday, the NCGA welcomed special guests representing Japanese government and trade interests and briefed them on a variety of issues, including corn production, 2008 planting projections, ethanol and other biofuels, and U.S. farm policy. Visiting NCGA were Osamu Minakawa, consul and section chief of economic affairs for the Consulate General of Japan at Chicago; Toshikatsu Mino, director of agriculture for the Japan External Trade Organization’s Chicago office; and Bruce Buckland, honorary consul general of Japan.

NCGA: Newest “Research” on Food Prices Doesn’t Add Up

A professional alarmist’s news release and press conference today regarding corn, ethanol and food prices was met with sharp criticism from the NCGA for ignoring the facts and the real culprit in rising food prices.

“If Lester Brown wants to have a real discussion about the marginal increases in food prices last year, he needn’t look any further than the price of a barrel of oil,” said Rick Tolman, NCGA’s chief executive officer. “The price of oil influences the cost of food at every step in the supply chain—from commodity production to processing to packaging to transportation. Higher energy costs also drive up overhead for grocery stores, warehouses and restaurants.”

The Department of Labor reports that U.S. food and beverage prices increased at a rate (4.8 percent) just barely above the rate of general inflation for all items (4.1 percent) in 2007. By contrast, energy commodities surged 29.4 percent in 2007, according to DOL data. While the 2007 rate of food inflation was slightly higher than in recent history, it certainly was not unprecedented. Food inflation was near 6 percent in 1990 and averaged 8.9 percent per year from 1972 to 1981.

Because U.S. corn production levels have increased significantly in the past five years to accommodate increased demand, ethanol production is not diverting corn from food and feed markets, Tolman pointed out. In fact, the U.S. Department of Agriculture projects that more U.S. corn will be fed to livestock in the 2007-08 marketing year than in 2006-07, and corn exports are expected to achieve a new all-time record. This is possible because corn growers produced a record crop of 13.1 billion bushels in 2007, 11 percent larger than the previous record. Approximately 10 percent of the nation’s corn supply will be carried over as surplus in the next year, further indication that all demands are being amply met.

Tolman said that when it comes to food prices, labor costs account for 38 cents of every dollar a consumer spends on food, according to the USDA. Packaging, transportation, energy, advertising and profits account for 24 cents of the consumer food dollar. In fact, just 19 cents of every consumer dollar can be attributed to the actual cost of food inputs such as corn. One example: for a 14-ounce box of corn flakes cereal, a $2-per-bushel increase in the price of corn means a theoretical difference of just over 2 cents at the consumer level.

NCGA’s Newest Member Benefit a Big Money-Saver

The newest member benefit from the NCGA can save car shoppers thousands of dollars while providing ease and convenience, thanks to Ford Motor Company’s X-Plan vehicle pricing plan.

The NCGA and its affiliated state associations now participate in the program, where, with a unique NCGA partner code, members can access a special Web site that gives them a reduced price on dozens of Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar and Land Rover vehicles.

“I've used the Ford discount already,” said an NCGA member from Michigan. “It's super easy and saved me quite a bit of money.” At the site, members can research the full range of vehicles available, determine the special pricing available to members, find factory rebates and other incentives in their area and look up local dealers and search dealer inventories – or request quotes over the Internet.

NCGA growers should contact NCGA or their state association for details on this program, which is just one of several benefits that make NCGA membership so valuable. Others include:

• Discounted satellite internet access through AGRISTAR,
• Discounts on computer hardware and home entertainment items with DELL
• NCGA and state association logo apparel and merchandise at the CORNer STORE.

Click here for information on NCGA membership.

Commodity Classic Offers Full Slate of Agricultural Topics for Farmers

Several educational and marketing sessions and a trade show await corn, soybean and wheat growers at Commodity Classic, the annual convention and trade show of the American Soybean Association (ASA), the NCGA, and the National Association of Wheat Growers (NAWG), to be held Feb. 28-March 1 in Nashville, Tenn. 

Commodity Classic will give producers the opportunity to attend 11 Learning Center sessions and three Early Riser marketing sessions and learn about issues such as biofuels, technology, and trade.

“Producers have every opportunity to learn the best methods for improving productivity on their farms with so many Learning Centers and Early Riser Marketing Sessions available,” said NCGA President Ron Litterer.

Sessions include:

• Take Charge of Your Farm’s Future
• Production Research – What’s on the Horizon
• Wind Energy: Another Cash Crop, Capitalizing on Wind Energy Development in Rural America
• Farm Bill Update: What’s the Future Hold?
• Reduce Your Input Costs and Increase Return on Investment

“Commodity Classic is a great educational opportunity for producers in addition to being a great time,” said NAWG President John Thaemert. With more than 213 exhibitors at the trade show, producers have the ability to network with key agribusiness leaders and other growers. “There is no better place than Commodity Classic to learn so much about so many new products and technologies,” said ASA President John Hoffman. Commodity Classic will also feature association banquets, entertainment events, and important networking opportunities. Click here for more information.

• Anti-Ethanol Alarmist Alert!
• Corn and Soybeans Go Hand in Hand
• Corny Analogy
• Biotech Education Efforts Paying off in Spain

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