Corn Growers Pressure Clinton to Deny California Waiver NCGA has continued to pressure President Clinton in the final days of his administration to direct the EPA to deny California's request for a waiver that would exempt the state from the oxygen requirement of the federal Reformulated Gasoline (RFG) program. Fearing the outgoing Clinton Administration is preparing a last minute political favor for California that could scuttle a key market for ethanol, a coalition of the NCGA and the American Farm Bureau Federation (AFBF) issued statements at a joint press conference on Sunday, Jan. 7, at the AFBF convention in Orlando, Fla. "California's waiver request poses a serious threat to water and air quality and to agriculture," said NCGA President Lee Klein. "If we were dealing with a normal EPA regulatory process, this regulation would have little chance of appearing within the next 30 days. But these are not normal times. During the closing days of an Administration, we have to be very vigilant to prevent 'midnight rules.'"

NCGA Ethanol Task Force Gases Up in Kansas City The NCGA Ethanol Task Force, appointed by President Lee Klein got a good start at its first meeting Jan. 11 in Kansas City. The task force, chaired by Boyd Smith of York, Neb., reviewed initial work to develop an NCGA marketing plan for ethanol, reviewed past ethanol legislation and worked on consensus policy to guide ethanol legislation in upcoming meetings of the 107th Congress. The task force reports to the Customer & Business Development Action Team.

NCGA Working Group Dives Into Biotechnology
The Biotech Working Group met January 4-5 in the Washington, D.C. office of NCGA. In attendance were: Fred Yoder, Ohio, chairman; Len Corzine, Illinois (Production and Stewardship Action Team); Boyd Smith, Nebraska (Customer and Business Development Action Team; Doug Wilson, Illinois (Public Policy Action Team); Brian Peterson, Iowa (Grower Services Action Team); Roger Pine, Kansas; Lee Klein, NCGA; Jere White, Kansas; Don Hutchens, Nebraska; Rick Tolman, NCGA; and Susan Keith, NCGA. During two half-day sessions the group met with seven different trade groups. Each group was asked to share its position or any relevant information on labeling and tolerances as related to current issues for biotech corn. Each group made a presentation and then entertained questions and engaged in discussion with the NCGA Biotech Working Group. The seven presenters were: David Shipman, GIPSA's Federal Grain Inspection Service; Kendell Keith and Randy Gordon, National Grain and Feed Association; Gary Martin, North American Export Grain Association; Mark Condon, American Seed Trade Association; Chuck Conner, Corn Refiners Association; Betsy Faga, North American Millers Association; Karil Kochenderfer, Grocery Manufacturers Association.

USDA Trims 2000 Crop Production
USDA released the final crop report for the 2000 growing year on Jan. 11. The report pegged the 2000 corn crop at 9.968 billion bushels, 5.7 percent larger than the 1999 crop. The major Corn Belt state with the largest percentage increase was Missouri with a 60 percent increase in production. Among the top 10 states the Eastern Corn Belt and South Dakota saw the largest jumps in production with Ohio, Indiana, Illinois, and South Dakota increasing by 20%, 9%, 12%, and 17% respectively. Corn production in the northern and western Corn Belt was dropped in 2000. Production in Nebraska, Wisconsin, and Minnesota dropped by 12, 11 and 3 percent, respectively. Grains markets took a tumble Jan. 11 following the release of the report. Most analysis indicated that the trade was expecting USDA to trim yields more from the November report. Illinois, Minnesota, Missouri, Iowa, and Ohio bore the brunt of the production estimate reductions with 22, 20, 17, 12 and 6 million bushels reductions, respectively. Among the top ten corn states only Nebraska (8 million bushels) and South Dakota (4.6 million bushels) had their production estimates increase from the November report.

U.S. Supreme Court Rules Against Army Corps of Engineers in Wetlands Case
This week, the Supreme Court ruled 5-4 on an important wetland case that involved the granting of a permit to fill permanent and seasonal ponds on a former gravel pit. The Army Corps of Engineers had denied the permit to fill the ponds, stating that the Migratory Bird Rule and its jurisdiction under the Clean Water Act allowed the denial of the permit. The Supreme Court disagreed with the Army Corps of Engineers, stating that this was a state, not a federal determination, and that the Clean Water Act and the Migratory Bird Rule do not provide the federal government jurisdiction over isolated wetlands that are not adjacent to navigable waters. This ruling addresses the Clean Water Act's statutory authority and the Army Corps of Engineers exceeding its authority under this law. The Army Corps stated it had authority over isolated wetlands, but the Clean Water Act only provides it with jurisdiction over navigable waters and those wetlands adjacent to navigable waters. This ruling is important for its potential effect on agriculture in areas with depress ional wetlands and prairie pothole, and because NCGA's TMDL lawsuit was filed on a similar basis (i.e., that the Environmental Protection Agency overstepped its statutory authority under the Clean Water Act with regard to elements of the TMDL rule).

NCGA Goes to the Extreme with 1,3 Propanediol
Rene Shunk, NCGA director of business development, was in Washington State this week to review the 1,3 Propanediol (extremophile) technology and to meet with investigators on the project, designed to identify novel organisms that can produce organic acids and/or solvents from extreme environments. The project, $1.7 million funded by Ag Vision, will kick off soon with a 50/50 split between the NCGA and the U.S. Department of Energy (DOE).

Five Subcommittee Chairmen Designated for House Agriculture Committee House Agriculture Committee Chairman Larry Combest (R-Texas) designated five subcommittee chairmen, whose jurisdictions portend the direction the committee will take as the 107th Congress gets underway. The full committee will begin hearings in early February and March, seeking specific farm commodity program recommendations from producer groups. The intent of any resulting legislation would address the low market prices that currently affect producers and their communities.

The designated chairmen include:

• Bob Goodlatte (R-VA)-Department Operations, Oversight, Nutrition and Forestry.
• Richard Pombo ((R-CA)-Livestock and Horticulture.
• Terry Everett (R-AL)-Specialty Crops and Foreign Agriculture Programs.
• Frank Lucas (R-OK)-Conservation, Credit, Rural Development and Research.
• Saxby Chambliss (R-GA)-General Farm Commodities and Risk Management.

"While we didn't get someone from the Corn Belt named as a subcommittee chairman, NCGA has a long working relationship with the committee's members, who I believe are cognizant of the challenges facing corn growers today," noted NCGA Public Policy VP Bruce Knight. In a released statement, Combest said, "The mainstay of agriculture policy is to make available to producers the means for a flexible response to financial pressures when prices fall and crops fail. This committee's commitment to the producer is on strengthening the farm safety net, and our continued attention to the unique nature of the job producers have as the source of the world's safest and most reliable supply of food and natural fibers."

High Gas Prices = High N
The Production & Stewardship Action Team has been in discussing the recent increase in Nitrogen prices, particularly Anhydrous Ammonia. As the largest agricultural consumer of Nitrogen, corn growers are at the forefront of this debate. The increase in Anhydrous prices are directly related to high natural gas prices. Several factors driving natural gas prices are reduced exploration, general economic growth and consumption in the U.S. and the increasing demand on gas from new electrical generation plants. It takes approximately 34 MBtu of natural gas to produce 1 ton of anhydrous, and with spot gas prices hovering around $10/MBtu you see fertilizer prices at $340 per ton at the factory. Further complicating the problem the many of the Nation's anhydrous plants have been idled, citing lack of profitability do to natural gas prices. The U.S. is forecasting record fertilizer imports (urea, ammonium nitrate) but the infrastructure is constraining the overall effectiveness of imports. In face of higher prices and possible shortages NCGA makes the following suggestions:

• Ensure your nitrogen applications are within agronomic recommendations (1.1-1.2 lbs/bushel)
• Be flexible (look at using, and price various Nitrogen sources (anhydrous, UAN, urea, manure)
• Take account of all Nitrogen credits and residual nitrogen (soybeans, manure, irrigation water)
• Consult your agronomist or state extension fertility experts concerning Nitrogen reductions and yield trade offs
• If you have previously locked in fertilizer purchases contact your dealer and ensure you are getting the amounts you have booked.

House Ways and Means Adds New Subcommittee
The House Ways and Means Committee has added a new subcommittee, Select Revenue Measures, which will consider revenue items on a case-by-case basis. During the 107th Congress, Ways and Means will have 25 Republicans to 17 Democrats. Rep. Philip Crane (R-IL) will remain chair of the Trade Subcommittee.

House Appropriations Committee Shifts Subcommittee Assignments
Rep. Henry Bonilla (R-TX) will become the new chair of the House Appropriations Committee's Agriculture Appropriations Subcommittee. Making the switch to chair other subcommittees are: Sonny Callahan (R-AL), Energy and Water Appropriations; Harold Rogers (R-KY), Transportation Appropriations; and Frank Wolf (R-VA), Commerce-Justice-State Appropriations.

Nebraska Rounds Up More Than 300 New Members
The Nebraska Corn Growers Association reported a successful call-a-thon on Monday, Jan. 9, resulting in 325 member invoices, 20 of which were credit card applications.

David Uchic Joins NCGA's Washington Staff
David J. Uchic has joined NCGA as manager, Communications, Washington, D.C. office. Most recently, Uchic handled public relations and oversaw the publications for the International Fabricare Institute, a trade association representing dry cleaners. He also has managed the communications functions for a variety of trade groups in the D.C. area. Uchic, who earned a B.S. in journalism from the University of Maryland, lives in Gaithersburg, Md.

Remember the Commodity Classic Feb. 25-27 in San Antonio
The new year has come, and all eyes are on Commodity Classic, the combined convention and trade show of the NCGA and the American Soybean Association (ASA) Feb. 25-27 in San Antonio, Texas. For registration forms or more information, visit the Commodity Classic web site: www.commodityclassic.com or call 636-928-3700.

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE