IN THIS ISSUE:

• NCGA Calls House Energy Vote Huge Triumph; House passes RFS in 247-177
• NCGA Applauds Senate Committee for Passing Monumental Fuels Agreement; S.791 to Become Part of Comprehensive Energy Bill
• NCGA Pleased with GM Support of RFS
• NCGA Commends House for Passing Budget Resolution Without Mandatory Ag Cuts
• NCGA Urges Budget Conferees Against Farm Bill Cuts
• NCGA President Meets with Veneman and Zoellick on Sweetener Dispute
• NCGA Members Testify Before the Texas House on Pharma Corn
• NCGA Says Apply Conservation Security Funds at State, Local Levels
• NCGA's Corzine Named to USDA Biotech Committee
• NCGA Continues Membership Streak, Cites Strong Recruiting Efforts, Solid Programs
• NCGA Welcomes Interim Production Director Robert McIntyre

NCGA Calls House Energy Vote Huge Triumph; House passes RFS in 247-177
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NCGA is calling Friday's passage of H.R. 6, the Energy Policy Act of 2003, a major accomplishment for the renewable fuels industry. In a 247 - 177 vote House members supported the legislation that includes a much sought after renewable fuels standard (RFS).
Key renewable fuels provisions in the House energy bill include:

• Removing the current oxygenate standard for reformulated gasoline;
• Enhancing air quality anti-backsliding provisions; and
• Reaching an RFS schedule of 5 billion gallons by 2015.
  NCGA also noted Friday's vote as being a historical step in the process of obtaining a comprehensive energy package that includes a 5 billion gallon RFS.

NCGA Applauds Senate Committee for Passing Monumental Fuels Agreement; S.791 to Become Part of Comprehensive Energy Bill
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NCGA Wednesday applauded the Senate Environment and Public Works (EPW) Committee for passing S. 791, the Reliable Fuels Act of 2003. The bill establishes a renewable fuels standard (RFS), where ethanol will be the major source of domestic fuels. NCGA is gratified the bill passed out of committee without the addition of damaging anti-renewable fuels amendments offered Tuesday by Sens. Barbara Boxer (D-Calif.) and Hillary Clinton (D-NY).

To accommodate some committee members, EPW Chairman Jim Inhofe (R-Okla.) agreed to amendments, including protection against price setting and anti-competitive behavior within the ethanol production industry, and the promotion of cellulosic biomass ethanol derived from agricultural residues. S. 791 currently provides for an incentive for cellulosic biomass ethanol such that each gallon of cellulose ethanol shall be considered the equivalent of 1.5 gallons of renewable fuel. This amendment provides additional incentives for agricultural residues.

Late Tuesday night, NCGA and several others organizations sent a letter to Chairman Inhofe encouraging his committee to take action on S. 791.

S. 791 will become part of a comprehensive energy bill, which the Senate will consider after its spring recess.

NCGA Pleased with GM Support of RFS
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NCGA was pleased to learn of General Motor's support of the renewable fuels standard (RFS), as evidenced by a letter from GM Vice President of Government Relations Ken W. Cole to Sen. Tom Daschle (D-S.D.) and Rep. Collin Peterson (D-Minn.). The letter, dated April 4, states the RFS should be on the forefront of the debate as Congress work to formulate a national energy plan. The letter states: "General Motors has long supported the use of ethanol in transportation fuels - going back more than 20 years when we were the first to approve 10-percent blends in our products. Our vehicle owners' manuals continue to 'recommend' the use of clean fuels containing oxygenates, including ethanol. "Our support for ethanol in transportation fuels is based on a comprehensive study of energy use and greenhouse gas emissions of a wide range of propulsion technologies and fuels."

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NOTICE:
The NCGA 2003 Policy Book is available at the Leader Resource Center at www.insidencga.com <http://www.insidencga.com> and at the official website at <http://www.ncga.com/public_policy/2003_policypapers/index.htm>.
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NCGA Commends House for Passing Budget Resolution Without Mandatory Ag Cuts
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NCGA applauds the House for passing its FY '04 budget resolution without cuts in mandatory agriculture spending. The 216-211 party-line vote took place early Friday. According to NCGA, the resolution postpones significant mandatory agriculture program spending cuts until at least the FY '05 budget resolution.

The resolution directs $4.865 billion to be cut in discretionary agriculture spending over the next 10 years, beginning with $253 million in FY '04. However, noted NCGA Vice President of Public Policy Jon Doggett, "the appropriations committee has the final say over discretionary agriculture spending cuts. The agriculture committee can only make recommendations regarding the cuts."

Under the measure, agriculture and other committees affected by discretionary cuts are required to make their recommendations by Sept. 2. The budget committee will issue the level of cuts each committee is required to recommend by May 16.

NCGA Urges Budget Conferees Against Farm Bill Cuts
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NCGA, along with a broad range of 71 other groups, sent a letter April 3 to Budget Committee Chairs Sen. Don Nickles (R-Okla.) and Rep. Jim Nussle (R-Iowa) urging budget conferees against cutting farm bill programs in the annual congressional budget resolution.

The budget conference committee, which began meeting this week, will be addressing reconciliation instructions, or directives on providing cuts from the conference committee to other congressional committees. In the letter, the groups advised against farm bill cuts by citing the delicacy of the Farm Security and Rural Investment Act (FSRIA), which was enacted less than one year ago and has not been completely implemented.

The groups also urged conferees to provide adequate funding for ongoing operations at the U.S. Department of Agriculture (USDA).

NCGA President Meets with Veneman and Zoellick on Sweetener Dispute
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NCGA President Fred Yoder met Wednesday with Agriculture (USDA) Secretary Ann Veneman and U.S. Trade Representative (USTR) Robert Zoellick in separate meetings to discuss the ongoing sweetener dispute with Mexico. Yoder attended the meetings with executives from the Corn Refiners Association (CRA).

In both meetings, Yoder and CRA representatives expressed continued frustration because the United States and Mexican governments have not been able to negotiate a final deal regarding high fructose corn syrup (HFCS) exports. U.S. exports of HFCS have been virtually shut out of the Mexican market due to a tax on soft drinks not using cane sugar. According to NCGA, it is unlikely the corn refining industry will be able to export any product to Mexico this year even if a deal is reached in the near future.

During the meeting with Veneman, Yoder and CRA executives expressed the need to ensure compliance with current free trade agreements (FTA). Veneman informed the group, undersecretaries J.B. Penn and Bill Hawks will lead a U.S. delegation later this month to Mexico to discuss ongoing disputes in an attempt to resolve problems before they adversely impact trade.

NCGA Members Testify Before the Texas House on Pharma Corn
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NCGA members and Texas Corn Producer leaders Jimmy Wedel and Scott Averhoff testified Thursday before the Texas House Agriculture and Livestock Committee on House Bill 3387, legislation that would prohibit food crops for the production of pharmaceutical, industrial and other non-food. Both members, opposed to the legislation, advocated stricter regulatory oversight in their testimony. Wedel, a grower from Muleshoe, Texas, serves on NCGA's Research and Business Development Action Team. He is also president of the Corn Producers Association of Texas and a director on the Texas Corn Producers Board.

Averhoff, a grower from Waxahachie, Texas, is an active member of NCGA's Production and Stewardship Action Team. He serves as director for the Corn Producers Association and Texas Corn Producers Board.

NCGA Says Apply Conservation Security Funds at State, Local Levels
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NCGA submitted comments last week to the Natural Resources Conservation District (NRCS) on the Conservation Security Program (CSP) recommending the program be implemented to the greatest extent possible along the state and local levels. NCGA submitted its comments along with the National Cotton Council and the National Association of Wheat Growers. Together, these organizations represent a significant majority of cotton, wheat and feedgrain producers who supported the CSP during last year's farm bill debate.

In the comments, NCGA said any regulations should include flexibility for innovative plans that incorporate such practices as precision farming. NCGA also noted CSP funds should be focused on plans that maximize environmental benefits at economical levels and funds should be distributed equitably to all parts of the country.

NCGA submitted the comments in response to an Advanced Notice of Proposed Rulemaking (ANPR).

NCGA's Corzine Named to USDA Biotech Committee
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NCGA Biotech Working Group Chairman Leon Corzine has been appointed to the USDA Advisory Committee on Biotechnology and 21st Century Agriculture. Corzine is among the 18 members Agriculture Secretary Ann Veneman named to the new committee. The committee is charged with examining the long-term impacts of biotechnology on the U.S. food and agriculture system and providing guidance to USDA on pressing individual issues related to the application of biotechnology in agriculture.

Corzine, a grower from Assumption, Ill., and an NCGA Corn Board member, said the appointment represents a great opportunity for the nation's corn growers to have their voices heard on an important issue. Corzine's appointment came after nearly a year of consideration. Upon having his name submitted for the position, he received support from his senators, a number of Illinois congressmen, as well as the Illinois Department of Agriculture, who penned a letter to the USDA on his behalf. The members, from 14 states, the District of Columbia, and Mexico, represent the biotechnology industry, the seed industry, farmers, environmental and consumer organizations, academia and international plant research centers, the food industry, product shippers and traders.

NCGA Continues Membership Streak, Cites Strong Recruiting Efforts, Solid Programs
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There seems to be no stopping the grower recruiters on a mission to build membership for their state and NCGA. Membership in NCGA was up nearly 1,000 members at the end of March compared to the same time last year, putting NCGA membership at an all-time high of 32,673. NCGA set a membership record at the end of its fiscal year 2002 with 32,379 members. NCGA Grower Services Action Team Chair Mark Garber cited two recent recruiting efforts in Indiana. Its January call-a-thon brought in 85 new members and the March corn and livestock summit resulted in 35 new members.

Garber added being pro-active in bringing members services and programs they can use is key. "The high-speed Internet service we offer our members through Agri-Star is an example. If we can keep our producers up to date with facts and different tools they can use, we can keep recruiting good members," he said. The NCGA membership program is sponsored by Syngenta Seeds and Syngenta Crop Protection.

NCGA Welcomes Interim Production Director Robert McIntyre
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NCGA is pleased to announce Dr. Robert McIntyre has been named interim director of production and economics.

McIntyre joined the St. Louis office Monday. McIntyre is on board while Director Paul Bertels, a reservist with the Illinois National Guard, has been called to active duty in LaCrosse, Wis. Bertels is a captain in the Guard. McIntyre said his desire to give something back to the farming community brought him to NCGA. The Alabama native has a distinguished history in agriculture, starting his career as an extension education specialist at Texas A&M University. He later began consulting and farming full time in Dothan, Ala., developing, marketing, and contracting pest management services to growers producing approximately 10,000 acres in Alabama, Florida and Georgia, as well as managing his own 700-acre farm, growing corn, cotton, peanuts, soybeans, and other vegetables. McIntyre worked in agricultural research and development in Alabama and later, North Carolina, before coming to St. Louis to work for Maritz Marketing Research, Inc., as a senior account manager. Most recently, McIntyre worked as a consultant, providing strategic business planning, marketing and marketing research for various area industries.

At NCGA, McIntyre's duties include keeping membership informed of the ongoing battle to modernize the lock-and-dam system on the upper Mississippi and Illinois rivers, and preparing for this year's National Corn Yield Contest.

McIntyre earned a Ph.D. from the University of Arizona in entomology and plant biology. He holds a master's degree in plant pathology from Auburn University and a bachelor of science in chemistry and biology.

NCGA THIS WEEK
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April 15-16 NCGA Director of Communications Mimi Ricketts will attend the NAMA Awards in San Diego April 16 NCGA Director of Business Development/Corn Processing Research Rene Shunk and Research and Business Development Manager Nathan Danielson will be in Edwardsville, Ill., for a fiber utilization project update meeting.

2003 National Corn Growers Association

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE