NCGA Continues to Represent Nation's Corn Growers on a Number of Key Issues

The NCGA continues to take the lead in the interest of the nation's corn growers as evidenced a number of recent events and developments:

• The NCGA presented its innovative counter-cyclical proposal in 2002 Farm Bill testimony April 25 to the U.S. House Agriculture Committee. The NCGA was the only corn grower organization invited to testify.
• In cooperation with the U.S. Grains Council, NCGA is working on behalf of the nation's corn growers on a number of international fronts: NCGA will participate in a EU Biotech Mission to Brussels in June; NCGA President Lee Klein will participate in a U.S. Department of State Speaker Program discussing the impact of biotechnology upon the U.S. farmer and the farming industry's experience with biotechnology this month in Bangkok, Thailand. NCGA Biotech Working Group Chairman Fred Yoder was invited to share NCGA's views on biotechnology to the Canada Grains Council last month; and NCGA President-Elect Tim Hume and Director of Public Policy Susan Keith represented NCGA, along with U.S. Grains Council representatives, at the recent Free Trade Area of the Americas, Americas Business Forum in Argentina. NCGA Has also had meetings with Japanese officials to ensure them of the integrity of the U.S. corn crop in light of recent domestic biotech developments.
• On April 16, NCGA submitted testimony to a U.S. House Appropriations Committee subcommittee requesting $15 million in funding for the U.S. Department of Energy (DOE), the Plant/Crop Based Renewable Resources vision 020 program that is funded under the Industries of the Future program within the Energy Conservation budget. In this and a number of ways, NCGA continues its emphasis on research that leverages corn checkoff investments and that will lead to new corn uses and commercialization.
• NCGA presented the views of corn growers on ethanol in testimony April 25 to a U.S. House Agriculture Committee subcommittee, emphasizing that ethanol deserves a leading role in emerging national energy policy because it delivers energy security, promotes environmental stewardship and revitalizes rural communities.
• NCGA continues to be among the leading agriculture groups pushing for lock and dam improvements on the upper Mississippi and Illinois rivers. NCGA also opposes a spring rise on the Missouri River and supports management of the river that places the highest priority on its economic uses.
• NCGA has established an Industry Program that allows open dialogue and cooperation with leading agribusiness companies on issues affecting corn growers nationwide.
  

NCGA Hosts Japanese Wet Millers

NCGA hosted a group from the Japan Starch & Sweeteners Industry Association today (May 4) in its St. Louis offices. The group is part of a U.S. Grains Council Japan Wet Millers Industry Mission to the U.S. In answering their prepared questions, mostly focused on recent StarLink issues in the United States and concerns about corn being imported to their country, NCGA CEO Rick Tolman assured the Japanese Millers of the integrity of the U.S. corn crop. He explained steps being taken in the United States to reduce amounts of StarlInk corn, and to avoid similar problems in the future. The millers told NCGA that the U.S. is Japan's only long-term, consistent source for corn. Tolman stressed to the group the importance of the Japanese market for U.S. corn, noting that Japan is the only country specified in NCGA's policy on the commercial release of biotech corn. A key concern expressed by the group was Japan's zero tolerance for StarLink. They noted that Japan reduced corn imports April 1 when the country's zero tolerance law went into effect. Tolman said the two countries will continue to work on tolerance and hopefully agree to a level that is acceptable to both countries. He added that the U.S. is doing everything in its power to limit StarLink corn in its exports to Japan. While StarLink levels will rapidly decline as time goes by, Tolman said the U.S. cannot guarantee zero levels. "Something more than zero could be workable," Tolman said. The group left NCGA indicating that, as a result of the meeting, they were more comfortable with the U.S. crop, noting that the events of the past year have been a learning experience, and that the learning curve will extend beyond this year's harvest.

Tainted Ethanol Story 'Much Ado About Nothing'

Ethanol industry officials are downplaying reports that tainted ethanol was distributed in parts of the Midwest this week. According to ADM, 120,000 gallons of fuel ethanol were inadvertently overloaded with rust inhibitors at the ADM facility in Clinton, Iowa. Distributors were notified immediately when the mistake was caught, and distribution of the fuel was limited to four metropolitan areas: Chicago, Milwaukee, Rockford and Bettendorf. The tainted ethanol was contained in Chicago and Bettendorf, and was delivered to less than 12 stations in Milwaukee and two in Rockford. Not all of the pumps at those stations were affected. The contained ethanol will be returned and the affected tanks will be replaced at the Milwaukee and Rockford stations by the end of today, Karla Miller of ADM said. "This represents a relatively small portion of the ethanol market," Miller said. "This incident will have no long-term effects on gas prices in the Midwest and will not affect prices at the pumps."

NCGA Manages the Message at the Farm Broadcasters' Meeting

At the National Association of Farm Broadcasters' Washington Watch Issues Forum, NCGA President Lee Klein and CEO Rick Tolman fielded interviews for three-plus hours Monday. They got the word out on three very hot issues: NCGA's innovative 2002 Farm Bill counter-cyclical proposal, our efforts to incorporate ethanol into emerging national energy policy and the California waiver. Klein also represented the nation's corn growers at a reception hosted by the Chinese embassy.

Ag Committee Announces Agricultural Budget

Yesterday the House Ag Committee learned from House and Senate budget negotiators that a budget resolution will provide an additional $79 billion over 11 years to agriculture. These funds will address income shortfalls for producers' 2001 crop year, as well as provide stronger and predictable farm policy for the future. For FY 2001, the amount is $5.5 billion; for fiscal years 2002-2011, the total amount is $73.5 billion.

USDA Finalizes Rules for Farmable Wetlands Pilot Program

A provision that NCGA successfully pushed for inclusion in last year's Ag appropriations bill has now borne fruit: Wednesday, USDA published the final rule for the Farmable Wetlands Pilot under the Continuous Signup of the Conservation Reserve Program. This two-year pilot program authorizes the enrollment of farmed wetlands into continuous signup of the CRP, and is available for only a total of 500,000 acres in Iowa, Minnesota, Montana, Nebraska, North Dakota and South Dakota (150,000 cap per state). Enrollment eligibility criteria include: wetlands area cannot exceed 5 acres in size and the acreage must be cropped land that has a cropping history in at least three of the last 10 years. This land will be eligible for the same financial incentives offered under the regular continuous signup program.

NCGA Stokes Hill Action on Wheat Gluten Quotas

Prompted by NCGA and allied groups such as the Corn Refiners Association, more and more members of Congress this week sent letters to the administration urging it to drop quotas on wheat gluten imports. As reported last week, the EU has imposed a 5 Euros per ton duty on U.S. corn gluten exports. The U.S.-imposed quotas on wheat gluten imports are due to expire in a few weeks, and NCGA has aggressively lobbied the administration not to extend those quotas. If the quotas are extended, it appears very likely that the EU will continue imposing a duty on U.S. corn gluten. Our message is very clear: U.S. corn farmers and the corn wet milling industry should not bear the cost of the problems of the wheat starch industry.

Veneman, Zoellick to Appear Before House Ag Committee

USDA Secretary Ann Veneman and U.S. Trade Representative Robert Zoellick will appear before the House Agriculture Committee May 23 to testify on the prospect of increased trade opportunities in the Western Hemisphere. This 800 million consumer market-otherwise known as the Free Trade Area of the Americas-was the agenda of the recent Summit of the Americas. At the May 23 hearing, the House Committee expects Veneman and Zoellick to apprise them of the Bush Administration's proposals and a timetable for negotiations. Chairman Larry Combest (R-TX) released the following statement, "Nations of the Western Hemisphere have formally agreed to work for free trade benefits to 800 million people who are a natural market for our agricultural goods. . .The Agriculture Committee intends to assess the impact on American producers for agricultural markets opened up within the democracies of the Western Hemisphere." The May 23 hearing begins at 10 a.m. (EST), with audio available during the hearing by accessing the committee's web site www.agriculture.house.gov and opening statements posted at the beginning of the hearing.

Bush Administration Sets Agenda on Trade Issues

Achieving bipartisan consensus on trade agreements is the number one priority of the Bush Administration. That goal and others were enumerated by U.S. Trade Representative Robert Zoellick when he released the annual "Super 301" report, which identifies areas of concern the administration intends to address. Zoellick said the administration would monitor existing trade agreements and would act quickly via the WTO and other mechanisms when it detected non compliance by other signatories. "Enforcement must remain a key priority and we must step up our efforts to monitor compliance with our trade agreements and insist on performance by our trading partners," Zoellick said. He pledged the full power of U.S. and international law to achieve compliance. The Super 301 report cited practices that hinder U.S. exporters' ability to take full advantage of enhance market access made possible by trade agreements, and identified difficulties for U.S. agricultural exporters in Canada, Australia and Japan.

Cheney Lays Out Parameters for Emerging Energy Policy

Vice President Dick Cheney this week fired the first salvo in building support for the administration's energy plan, when he spoke publicly for the first time about the components of the administration's proposal. Cheney said, "You can expect a mix of new legislation, executive action and private initiatives." The Vice President leads the administration task force on developing energy policy. He indicated the plan-which will focus on comprehensive, long-term solutions-will be released in a few weeks. That focus refers to the development of fossil fuels, with Cheney adding that alternative fuels and conservation are two issue on which the administration is not willing to "stake our economy and our own way of life." But he did mention that the administration sees a role for renewable energy, citing increased use in sources such as biomass. That role-even assuming advances for the next 20 years-will not likely address more than 6 percent of the nation's energy needs, he said.

ExxonMobil Takes Cheap Shot at Ethanol

An ExxonMobil advertorial that ran yesterday deliberately misstated basic facts about ethanol, along with NCGA's positions. In the paid op-ed piece-titled "Renewable energy: today's basics"-the oil company took a self-indulgent swipe at our most important value-added product. It said, "Corn-based ethanol is used as a gasoline additive in some areas, but is only competitive due to federal and state tax subsidies that can exceed 60 cents a gallon. Ethanol can also require considerable energy to produce and requires significant land. For example, making enough ethanol to fuel cars in California alone would consume America's entire corn crop." We have heard these arguments before, and while it's true that ethanol has subsidies, the rest of the message is off the mark. Our testimony before the House Subcommittee on Conservation, Credit, Rural Development and Research on April 25 refuted ExxonMobil's alleged "facts." The op-ed ran in The Washington Post, New York Times and selected major market papers.

NCGA Corn Board Positions Open

Apply today, and help strengthen the future of the NCGA through service on the NCGA Corn Board. Who can apply? Anyone who is a corn producer (owner, manager or operator), and is a member of NCGA, and a checkoff contributor, if applicable. Application materials have been mailed to all NCGA Corn Congress Delegates and Alternates, as well as all State Association and Checkoff Board offices. The deadline for receipt of applications is close-of-business on Friday, June 1, 2001. NCGA Nominating Committee members Lynn Jensen (chairman), along with John Adams, Cal Dalton, Brian Peterson and Ray Schaub welcome your application, and look forward to hearing from you! If you would like a set of application materials mailed, faxed to e-mailed to you, please contact Kathy Baker at the NCGA St. Louis office, 636-733-9004, ext 111, or e-mail at baker@ncga.com.

Last Reviewed on 05/04/01

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE