Bipartisan Initiative Promoting Ethanol Hits the House of Representatives

Rep. John Thune (R-SD) and a group of farm belt cosponsors Thursday introduced the "The Renewable Fuels for Energy Security Act." H.R. 2423 is a companion bill to Senate legislation introduced earlier this month by Sens. Chuck Hagel (R-NE) and Tim Johnson (D-SD). For more details, go to http://www.ncga.com/news/notd/2001/June/062901.htm

Farm Bill Hearings Commence in Senate

The 2002 Farm Bill hearings got underway Thursday in the Senate when Agriculture, Nutrition and Forestry Committee Chairman Tom Harkin (D-IA) invited representatives of several disparate organizations to "obtain an overview of the major areas and issues that the Committee will be dealing with in developing a new farm bill." National Farmers Union (NFU) and American Farm Bureau Federation (AFBF) testified, and their complete testimonies can be accessed at www.senate.gov/~agriculture/Hearings/Hearings_2001/hearings_2001.html. Briefly, NFU sought elimination of the Production Flexibility Contract payments (AMTA) and retention of full planting flexibility. (For more details, access www.nfu.org/.) AFBF called for continued Production Flexibility Contract (PFC) payments (with no updates to bases and yields). (For more details, access www.ftb.com.) The Committee will announce the schedule for future hearings.

NCGA Says 'No Spring Rise' for Missouri River

The National Corn Growers Association (NCGA) has again voiced its opposition to a spring rise on the Missouri River. The NCGA is among several farm organizations that signed a letter to Congress to keep Section 106 of H.R. 2311, the Fiscal Year 2002 Energy and Water Appropriations Bill. Section 106 stipulates that changes in the management of the Missouri River cannot be made to allow for alteration in springtime river flows. For more information, go to http://www.ncga.com/news/notd/2001/June/062801.htm

Bipartisan Supporters for Trade Promotion Authority Stage Capitol Hill Event

"Move the corn" was the message proclaimed during a Capitol Hill event for Trade Promotion Authority (TPA) this morning. Sen. Charles Grassley (R-IA) brought together like-minded colleagues from the Senate and House who support TPA as well as USDA Secretary Ann Veneman. TPA's advocates discussed the need to grant TPA powers to President George W. Bush this year, because the United States has been at a competitive disadvantage in trade talks since these powers expired in 1994. For example, U.S. growth in agricultural exports-such as the corn and tractor in the background-are hampered by high tariffs on U.S. products, which greatly reduce American access to foreign markets. For details, go to http://www.ncga.com/news/notd/2001/June/062601.htm

NCGA Talks Biotech, Bushels and Benefits at BIO 2001

The Biotechnology Industry Organization's (BIO) 2001 conference in San Diego came off without a hitch, attracting more than 15,000 participants ranging from producers to scientists to consumer groups. The National Corn Growers Association (NCGA) was invited to the international conference to discuss all aspects of biotech with regulatory and consumer groups. NCGA Corn Board Chairman Lynn Jensen, a farmer from Lake Preston, S.D., represented the interests and viewpoints of the nation's mainstream corn growers on various panels. For details, go to http://www.ncga.com/news/notd/2001/June/062801a.htm

NCGA and Other Agricultural Organizations Meet with Members of EU Parliament

Four members of the European Union Parliament met in Washington with representatives from U.S. agricultural organizations. Susan Keith, Senior Director Public Policy, represented the National Corn Growers Association at the meeting hosted by the Foreign Agricultural Service. Other organizations participating in the meeting included U.S. Grains Council, American Soybean Association, United Soybean Board, North American Export Grain Association, National Food Processors Association, and the Corn Refiners Association. These Members of Parliament are generally supportive of biotechnology and were visiting the United States to attend the Biotechnology Industry Organization meeting in San Diego. "We had a frank and open discussion and identified more areas of agreement than disagreement. The EU legislative process is long and laborious, but it is important that Members of Parliament understand our concerns as biotech legislation proceeds in the EU, " Keith commented.

USDA Announces Decision on 1998 Market Loss Payments

Last Friday the Department of Agriculture released its notification to the World Trade Organization of domestic support to U.S. agriculture during the 1998-99 marketing year. The report became controversial as members of Congress questioned how the Department would report the 1998 Market Loss Payments. USDA decided that the payments would be included as non-product specific "amber box." This means that the United States is well positioned to expect other countries to report similar payments as amber box. Because the total value of payments is less than 5 percent of the total value of U.S. agricultural production, the payments do not count against the U.S. commitment to spend no more than $20 billion on domestic support in 1998-99. The total amount reported against the U.S. commitment was $10.4 billion. Since the United States has notified the emergency assistance as "amber box" it becomes more important for the Agriculture Committees to craft a farm program that meets producers' needs within the context of our trade obligations. The right farm bill should alleviate the need for annual ad hoc assistance. And, this decision by USDA has sparked additional interest in NCGA's counter-cyclical farm bill plan since it is arguably green-box compliant.

Ag Export Coalition Calls for MAP/FMD Funding Boosts

At a hearing to review agricultural trade programs, the Coalition to Promote U.S. Agricultural Exports testified in favor of funding increases for both the Market Access Program (MAP) and the Foreign Market Development (FMD) Cooperator Program. The hearing-called by House Agriculture Subcommittee on Specialty Crops and Foreign Agriculture Chairman Terry Everett (R-AL)-provided agricultural interests a forum in which to advocate that MAP funding should jump to $200 million and that FMD's budget should grow to $43.25 million annually. Citing the need for increased U.S. support, the Coalition testified, "According to recent USDA information, the EU and other foreign competitors are outspending the United States by a factor of 20 to 1 with regard to the use of export subsidies and other expenditures for export promotion." In a related issue, growers should be aware of an amendment to the FY 2002 Agriculture Appropriations bill offered by Rep. Ed Royce (R-CA) that would eliminate funding for the Market Access Program. NCGA, as part of the Coalition, has helped to defeat similar proposals in the past. The Royce amendment will come up for a vote when the House returns from recess on July 9.

House Expected to Begin Energy Bill Mark Up After July 4th Recess

NCGA Washington D.C. staff are beginning to pick up signals indicating that the House will begin marking-up pieces of an energy bill on July 12. In recent meetings with more than half of the offices of the 57-member House Energy and Commerce Committee, staff have learned the initial bill will look at issues like conservation, hydro-power, clean coal and possibly boutique fuels. Ethanol supporters have been given assurances that a "renewables package" would be considered after the August recess. This scenario presents two concerns. First, mark-ups that open the Clean Air Act will be subject to amendments from Rep. Henry Waxman (D-CA), who was recently rebuffed in his effort to overturn the California waiver decision by amending the supplemental spending package. Be assured, Mr. Waxman will try again. Second, is our concern that the renewable package is never brought up in subcommittee, making it harder to advance our legislative efforts on renewables. The introduction of H.R. 2423, however, will help us build support for our renewables agenda throughout the summer and into the fall. NCGA Provides Biotech Information to International Visitors The National Corn Growers Association (NCGA) hosted visitors from Poland this week, providing the international ag specialists with information and ideas on biotechnology. For more information, go to http://www.ncga.com/news/notd/2001/June/062701.htm

NCGA, Syngenta Team Up to Provide Powerful Training

The National Corn Growers Association (NCGA) and Syngenta are providing valuable training for tomorrow's leaders by sponsoring the State Presidents Leadership Program Aug. 22-25 in Greensboro, N.C. For information, go to http://www.ncga.com/news/notd/2001/June/062401.htm

Congress Adjourns for Independence Day Recess; Prime Time for Grassroots Activism

As Congress adjourns at week's conclusion and members head back home, corn growers should accelerate their grassroots efforts into "road gear" and make appointments to see their members of Congress. It's a truism in grassroots activism that your congressional representatives listen most effectively to your concerns when they are back home in the district. Contact your representatives' district offices and schedule a meeting where you can share your views on the following issues: a renewable fuels provision in the energy bill; NCGA's counter-cyclical income proposal in the next Farm Bill; and Trade Promotion Authority. To learn more about NCGA's position on these and other legislative issues, visit the NCGA website at www.ncga.com or contact NCGA at 202-628-7001.

U.S. Action on Mexican Trucks Could Affect HFCS Exports

The House of Representatives included an amendment to the Transportation Appropriations bill that could backfire for U.S. corn farmers. The House language would prohibit the Department of Transportation from processing applications for Mexican trucks to operate in the United States. The White House has alerted Congress that such a prohibition would undermine the North American Free Trade Agreement. Mexico has already told the Office of the U.S. Trade Representative that if the United States enacts this prohibition, Mexico will impose sanctions against imports from the United States and identified high fructose corn syrup as a product that would be sanctioned. This potential dispute highlights the interaction of all sectors in trade agreements.

NCGA This Week:

• June 29-July 9 Congressional recess
• July 4 NCGA offices will be closed in observance of Independence Day. Have a happy and safe holiday!!
• July 11 NCGA Director of Business Development Bob Sedlacek will attend a polyols project team meeting in Lansing, Michigan.

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE