Senate Tsunami-Jeffords Jumps Republicans; Senate Committee Leadership Realigns

On Thursday, Sen. Jim Jeffords (R-VT) announced his intention to switch his political affiliation and become an Independent, shifting the balance in the U.S. Senate from 50 Republicans and 50 Democrats to 49 Republicans, 50 Democrats and 1 Independent. Jeffords has long been at odds with his party, bucking the leadership on environmental and healthcare issues. It has been rumored that Jeffords, as an independent, has been promised the Chairmanship of the Senate Environment and Public Works Committee by Sen. Tom Daschle (D-SD), who will become the Senate Majority Leader. With the Democrats in power the committee leadership will most likely make the following changes:

• Sen. Tom Harkin (IA) will step in as chairman of the Agriculture Committee;
• Sen. Robert Byrd (VA) will chair the powerful Senate Appropriations Committee;
• Sen. Herb Kohl (WI) will work with him as chair of the Subcommittee on Agriculture Appropriations;
• Sen. Kent Conrad (ND) will head the Budget Committee;
• Sen. Ernest Hollings (SC) will chair the Commerce, Science and Transportation Committee;
• Sen. Jeff Bingaman (NM) will serve as chairman of the Energy and Natural Resources Committee;
• Sen. Max Baucus (MT) will replace Sen. Chuck Grassley (IA) as chairman of the Finance Committee.

It is currently unclear how these changes will affect agriculture in general and the Farm Bill and ethanol in particular. It is possible the Senate Agriculture Committee will step up its work on the next Farm Bill by scheduling hearings. Ethanol supporters should be encouraged by gaining a majority leader who has historically been a strong supporter of ethanol.

CEO Rick Tolman Represents NCGA at World Agricultural Forum

National Corn Growers Association (NCGA) CEO Rick Tolman represented NCGA at the World Agricultural Forum this week in St. Louis. The World Ag Forum is a gathering of world leaders to discuss issues relating to feeding the world in the next 20 years. For the full story, visit the NCGA web site at: <http://www.ncga.com/news/notd/2001/May/052301.htm>.

EU Sounds Optimistic Tone on Biotech Food

Franz Fischler, European Union Agriculture Commissioner, told a press conference at the World Agricultural Forum's World Congress in St. Louis that Europe was moving toward a new, more open policy on biotech foods. Fischler said, "Today, the food sector in the EU is characterized by an increased emphasis on food safety and precaution. Risks and benefits in the sector are assessed and weighed with almost zero tolerance by a large part of the population." Fischler explained that the new policy will address the concerns over food safety while allowing advancement of biotech foods and crops into the marketplace. He signaled that Europe is very much in favor of new technologies and biotechnology despite the sensitivities expressed about safety. He said he was confident that Europe could combine the need for socially acceptable farming techniques with the need for greater economic viability in farming which biotechnology can deliver.

NCGA Briefs Community Bankers on Counter-cyclical Farm Bill Proposal

Bruce Knight, NCGA's Public Policy VP, addressed a meeting of the Independent Community Bankers of America last weekend. Knight took the opportunity to brief the association of small bankers on NCGA's farm bill proposal. This meeting is part of the process that NCGA will follow to build support for its farm bill proposal.

April Showers Water Seeds of Members as NCGA Membership Increased in April

While April showers in some states provided the soil with much needed water, it also provided the water for membership growth in NCGA. NCGA membership increased from 30,959 in March to 31,237 in April, a gain of 278 total members. The states with the biggest increase were Iowa with 389 and Minnesota with 50.

NCGA Testimony Shows How Antiquated River Infrastructure Hurts U.S. Corn Exports

NCGA testified on Capitol Hill May 23 that the antiquated locks and dams on the Upper Mississippi and Illinois Rivers severely compromise producers' ability to ship commodities when markets demand product. Tim Burrack, a member of NCGA's Production & Stewardship Action Team and a farmer in Arlington, Iowa, told the Water Resources and Environment Subcommittee that growing congestion due to outdated river infrastructure hinders "our ability to meet global demand, which ultimately costs us markets and drives down grain prices." For the full story, visit the NCGA's web site.

NCGA Details Producers' Concerns on Conservation

NCGA on Wednesday called for the reauthorization of the next farm bill's conservation title during testimony before the House Subcommittee on Conservation, Credit, Rural Development and Research. Bill Horan, an NCGA Corn Board member and a farmer in Rockwell City, Iowa, voiced commodity groups' support for "voluntary, incentive-based conservation programs that past farm bills have created." For the full story, visit the NCGA web site at: http://www.ncga.com/news/notd/2001/May/052401.htm.

NCGA Presses White House on California Waiver

Bill Horan, Corn Board member of Rockwell City, Iowa, represented NCGA at a White House briefing Wednesday on the specifics of the Administration's energy plan, unveiled last week. During a question-and-answer session involving representatives of various agricultural groups, Horan inquired about the status of California's request for an oxygenate waiver. Prefacing his question by stating that a clear and positive signal would jump start plans for an 80-million-gallon plant in northwest Iowa, Horan received a positive response that was nevertheless not definitive. Vice President Dick Cheney discussed with group representatives strategies for passing the Administration's energy bill, from whom he sought input. Many of the comments offered by participants indicated their desire to see more details in the Administration's energy plan to advance the industry.

EPA's Whitman Appoints Peltier as Counselor to the Administrator

U.S. EPA Administrator Christine Whitman has appointed Jean-Mari Peltier to a new agency position: Counselor to the Administrator on Agricultural Policy. Peltier reports directly to Administrator Whitman. The counselor will be responsible for coordinating the concerns of agriculture with EPA's decision-making process on environmental protection initiatives. Peltier will serve as EPA's central contact with USDA on issues such as the development of joint policy, collaborative efforts involving both agency's staff and other interagency issues. Monitoring congressional activities will also be a part of her mandate. Peltier most recently served as president of the California Citrus Quality Council.

NCGA Files Comments on EPA-NRDC Consent Decree

The Food Quality Protection Act (FQPA) Implementation Working Group (IWG) - in which NCGA holds membership -- on May 21 filed comments with EPA on the consent decree between the agency and the Natural Resources Defense Council (NRDC). Forty-two members of the IWG signed onto the comments, part of which stated: "We have consistently advocated a process that includes the public and that incorporates sound scientific methodologies and reliable data. We have very serious concerns regarding the Consent Decree and the ability of the Agency to collect and review data and make scientifically reliable decisions within the proposed timelines. Our first-hand experience and familiarity with the Agency's processes suggests that they cannot. The public interest and confidence in our regulatory system are not served if devout adherence to a schedule results in ill-conceived and scientifically unsupportable policy decisions. Accordingly, we recommend that the Court disapprove the proposed Consent Decree."

Veneman, Zoellick and Evans Testify on FTAA Before House Ag Committee

Three senior Bush Administration policymakers-USDA Secretary Ann Veneman, Trade Representative Robert Zoellick and Commerce Secretary Donald Evans-jointly appeared before the House Ag Committee this week to promote U.S. participation in the Free Trade Area of the Americas. Ambassador Zoellick stressed President Bush's role in agricultural trade. He also made the case for Trade Promotion Authority (TPA) because the United States is falling behind. TPA will give the Administration trade authority to negotiate agreements globally, regionally and bilaterally. In response to a question from Chairman Combest (R-TX) about trade opportunities in the FTAA, Secretary Veneman indicated that a three-year old Economic Research Service (ERS) analysis is being updated. Ambassador Zoellick urged the Committee to consider the potential for trade from a dynamic analysis of trade benefit. Secretary Evans urged the Committee to replicate trade relationships that have worked.

Wheat Gluten Quotas: Administration Decision Pending

At press time, industry observers indicated that a decision by the Bush Administration on extending quota protection for the U.S. wheat gluten industry could happen. NCGA has long voiced its opposition to any extension of the current U.S. quotas on wheat gluten imports. Both the wheat gluten industry and the U.S. International Trade Commission support the extension of such quotas, which expire June 1. NCGA objects to the quotas because the EU imposed a 5 euro per ton tariff on U.S. corn gluten feed, which clearly harms the U.S. corn gluten industry.

NCGA This Week

• The NCGA St. Louis and Washington, D.C. offices will be closed Monday, May 28, in observance of the Memorial Day holiday.
• State and national corn grower leaders will attend an E-diesel review and planning meeting Wednesday, May 30, in St. Louis. The program will include an overview of E-diesel, discussions on E-diesel testing and demonstration program, pre commercialization needs, requirements for commercializing E-diesel and action items for commercialization.
• The Biotech Working Group will meet Thursday, May 31, in St. Louis.
• NCGA Staff and leaders will be preparing for the joint U.S. Grains Council EU biotech mission trip next month. NCGA will be represented by President Lee Klein, Biotech Working Group Chairman Fred Yoder, Production & Stewardship Action Team Vice Chair Leon Corzine and Executive Vice President/CEO Rick Tolman.

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE