NCGA News












March 23, 2001 * Volume 8 * Number 7


Corn Checkoff Fashions New Markets through PLA

Corn checkoff investments are once again bringing great returns to corn growers. Cargill Dow's PLA plant at Blair, Neb., won't start producing the corn-based polymer until next year. However, international textile manufacturing companies recognize the benefits of replacing petroleum-based polyester with fabric made from corn and are lining up to place their orders. Annually, the plant is expected to turn 14 million bushels of corn into 300 million pounds of PLA. Textile manufacturer Kanebo Gohsen Ltd. of Japan is a major customer of Cargill Dow's PLA. Representatives of these two companies as well as Japanese trading company Itochu International and U.S. Grains Council recently visited NCGA to explain the potential for PLA's use in fabrics and to display samples of the products that are being tested in select markets in Japan. This is a totally new product, similar to other synthetic fabrics common in most clothing today. PLA will replace petroleum-based polyester fibers that aren't easily recyclable. The variety of uses makes PLA a very exciting opportunity. PLA clothing is not a novelty item. PLA, either as a blend or as 100 percent, improves performance in a variety of clothing and other items, such as polo shirts, active and athletic wear, sweaters, ties, denim, T-shirts, undershirts and socks. The pioneering work that NCGA supported has contributed to very near, very real commercialization. Originally NCGA funded application research projects to improve PLA. This is an example of the commercialization of that research.

NCGA's Corn Board Tells Policymakers to Bolster the Future Viability of Ethanol

The NCGA Corn Board effectively conveyed the farm group's message on ethanol to top policymakers this week in Washington: Just say no to the California ethanol waiver and incorporate a renewable fuel standard in any national energy policy. Corn Board members met with USDA Secretary Ann Veneman, EPA Administrator Christine Todd Whitman and Kyle McSlarrow, chief of staff to Energy Secretary Abraham, and senior officials of the National Economic Council at the White House. NCGA's grower leaders also met with key Hill leaders. At each meeting, the corn industry unwaveringly reiterated the farmers' support for ethanol. NCGA believes that ethanol must remain a viable value-added product for corn farmers, and to that end the State of California's request for a waiver from the oxygenate standard must be denied. Currently, more than 100 ethanol plants nationwide are in the planning stages; unfortunately, many of these plans are on hold, due to uncertainty on the part of grower-investors of the direction of federal policy. NCGA also asserts that any federal energy strategy must include renewable energy sources such as ethanol. Corn growers point out that corn-derived ethanol uses a domestically produced, renewable energy source that is immune to manipulation by foreign governments or cartels. And the industry can supply the volume of ethanol required by even the largest consumer states such as California, which needs an estimated 600 million gallons annually.

Corn Board Delivers a Blunt Message on Biotech to the White House

The NCGA Corn Board-in Washington this week for quarterly meeting-secured
a meeting with a top White House official to express their dismay over the European Union's failure to approve corn hybrids. "The EU's regulatory moratorium has cost U.S. corn growers $200 million each year since 1998," explained Fred Yoder, chairman of NCGA's Biotechnology Working Group. "And, the EU is drafting new rules that threaten to disrupt more trade." Yoder and the Corn Board presented their assessments in the White House to Gary Edsen, assistant to the president for international economic affairs. Edsen is also a member of the National Security Council and the National Economic Council. Describing the EU's regulatory process as creating a logjam, Yoder said the regulatory body has squandered more than four years to review biotech corn hybrids. Even so, product approvals are still pending. "The EU system is just not functioning. Since August 1998 the EU has failed to complete the procedures to market a single crop product created through biotechnology. The EU officials have played politics and ignored the EU's own regulations as well as the World Trade Organization obligations," Yoder concluded.

NCGA Urges Higher Funding for Plant Genome Research

Vic Miller, chairman of NCGA's Customer and Business Development Team and an Oelwein, Iowa, farmer, told the House Appropriations Committee this week to increase funding for plant genome research by $25 million. With this budget boost, the National Science Foundation (NSF) research program can provide sequences and draft sequences of gene-rich regions of plants that are economically significant to the United States. Miller's testimony reiterated that increased funding for plant genomics has been NCGA's number one appropriations priority for the past five years. "We remain convinced that the future of the corn industry is written in corn's genetic code and that plant genomics will give us the fundamental information necessary to revolutionize American agriculture," he said. "Plant genomic research offers us the greatest potential to increase the value and demand for U.S. crops, thereby increasing grower income and reducing grower reliance on federal farm programs." He added that the $25 million appropriations increase for plant genome research will help to ensure that public and private scientists and plant breeders have access to draft sequences of economically significant plants such as corn, and other basic knowledge.

USDA Announces Start of Crop Disaster Payments

More than $1.1 billion in crop disaster payments are beginning this week, according to USDA Secretary Ann Veneman. These payments represent compensation for 2000 crop year weather-related losses. NCGA lobbied aggressively to secure this funding, which is part of the FY 2001 Agriculture Appropriations Act. Growers should contact their local USDA Service Center or Farm Service Agency to file an application. Eligibility guidelines dictate that a grower must have experienced at least a 35 percent loss to one or more of their year 2000 crops due to natural disasters. When an application receives approval, the payment to the grower is usually prompt.

U.S. Trade Rep Seeks Deal on HFCS with Mexico

U.S.Trade Representative Robert Zoellick told the Mexican trade minister that processors of high fructose corn syrup (HFCS) must have better access to the Mexican market in exchange for resolving a dispute over Mexican access to the U.S. sugar market. Last year, trade officials from both countries attempted to hammer out a deal involving HFCS and sugar, the United States rejected Mexico's proposal regarding the importation of U.S. HFCS, deeming it insufficient. American officials are in Mexico this week attempting to resolve various trade-related issues.

Cargill Dow PLA Wins Prestigious DOE Award

Cargill Dow LLC's breakthrough technology, NatureWorks(tm) PLA, has made a key addition to its list of industry honors with the presentation of the Department of Energy's Office of Industrial Technologies (OIT) Technology-of-the-Year award. This honor is awarded annually to a technology that demonstrates the potential for improved energy efficiency along with economic and environmental benefits. Developed by Cargill Dow, NatureWorks PLA or polylactic acid is a natural-based polymer that can be used for common consumer items such as clothing, cups, food containers, candy wrappers, as well as home and office furnishings. NatureWorks uses annually renewable resources like corn rather than petroleum for its feedstock. By substituting corn for petroleum, NatureWorks uses 20 - 50 percent less fossil resources than conventional plastics. In addition, since the production of PLA recycles the earth's carbon, the PLA system emits less CO2 compared to other petroleum based thermoplastics.

FDA to Begin Testing for Biotech Corn Allergy

The U.S. Food and Drug Administration will soon begin blood-testing people who say they may have been sickened by eating food products that contained StarLink corn. The test, which the agency recently developed, is designed to indicate whether someone is allergic to the Cry9C protein. The government has been investigating about a dozen complaints of people who said they became ill last fall after eating the corn products.
Japan to Allow Foods to Contain Up to 5 Percent Biotech Corn

As part of new safety guidelines to take effect April 1, the Japanese
government will allow food products to contain genetically modified corn in levels up to 5 percent, according to reports released this week. The Japanese government decided to set a threshold for high-tech corn after new technology made it possible to detect it in processed foods. The Ministry of Agriculture's policy on corn was expected to draw criticism from consumer groups across the country, as many Japanese are opposed to the presence of any biotech products in food. Japan has closely regulated biotech corn , whose genes are altered so that it produces its own pesticide citing concern over possible health risks from eating products made from it.



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