IN THIS ISSUE:

• NCGA Calls Growers to Action on Waxman-Cox Amendment
• EPA Panel Reconfirms Earlier Findings on StarLink
• NCGA Working Towards IRM Compliance
• NCGA Optimistic About Senate Agriculture Committee $7.5 Billion Emergency Aid Package
• NCGA Applauds Illinois Governor's Decision to Ban MTBE
• NCGA Considers VEG III Conference a Success
• House Agriculture Committee Initiates Farm Bill Mark Up
• Illinois Corn Growers Testify on Input Price Disparity
• NCGA Genome Program Underway to Treat Diabetes
• NCGA, CRA Letter Seeks Lott's Help on Mexican Trucking Issue; Fallout Jeopardizes U.S. Exports of High Fructose Corn Syrup
• Baucus Bill Would Re-direct Ethanol-Blended Fuel Taxes into Highway Trust Fund
• Senate Confirms Johnson as USTR's Chief Agriculture Negotiator
• NCGA This Week
• !!NEW!! Corn Congress Photo Album. Check it out!

NCGA Calls Growers to Action on Waxman-Cox Amendment

The ethanol industry and its supporters are in great danger - again, and the NCGA is urging growers to contact their congressional representatives to protect the future of ethanol. Next week, there is a real possibility that the energy bill will be brought to the floor of the House for a vote. The rule - or procedural mechanism - that enables floor action on the energy bill could open up amendments that are unfavorable to the ethanol industry and to corn. For more details, go here.

EPA Panel Reconfirms Earlier Findings on StarLink

The EPA's Scientific Advisory Panel (SAP), which met July 17 and 18, has reconfirmed its earlier conclusions that StarLink poses a "medium likelihood" that Cry9C is a potential allergen and that there is sufficient evidence that there is a "low probability of allergenicity" in the exposed population. NCGA CEO and Executive Vice President Rick Tolman said while NCGA was disappointed, it supports the sound science used in the testing. "From our review of the science a tolerance appeared to be justified," he said. "However, we have publicly stated that we support sound science in making these decisions and we will do so in this case." StarLink represented less than ½ of 1% of the U.S. corn crop last year and yet it has cast a very long shadow over the entire industry, said Tolman. "At present there is a zero tolerance for StarLink for food use application. All are aware that in a practical sense, zero is an impossible standard to meet. Any quantitative measure, no matter high minute, would have at least given a target that industry could respond to. Zero stops trade, because of liability reasons." Since the scientific panel concluded that "there is inadequate information to establish a reasonable scientific certainty that exposure would not be harmful to public health," NCGA will continue to encourage the makers of StarLink to do further and additional scientific testing and research to see if adequate information can be provided in the future.

NCGA Working Towards IRM Compliance

The Environmental Protection Agency (EPA) recently conducted a meeting to reassess the risks and benefits of Bacillus thuringiensis (Bt) corn. EPA is assessing the adequacy of Insect Resistance Management (IRM) plans as part of total Bt corn re-registration. According to EPA officials, current producers of Bt corn are not sufficiently meeting IRM compliance levels. For more details, go here.

NCGA Optimistic About Senate Agriculture Committee $7.5 Billion Emergency Aid Package

The Senate Agriculture Committee this week approved a $7.5 billion emergency aid package for farmers in the current fiscal year, championed by Chairman Tom Harkin (D-IA). For more details, go here.

NCGA Applauds Illinois Governor's Decision to Ban MTBE

Illinois Governor George Ryan gave a helping hand to the ethanol industry this week by signing a bill banning MTBE in that state. Ryan said the bill, HB171, should be seen as a boost to the nation's corn growers as well as the environment, since MTBE has been known to pollute groundwater in several states. For information on this story, go here.

NCGA Considers VEG III Conference a Success

Representatives of the National Corn Grower Association (NCGA) have returned from the two-day U.S. Grains Council (USGC) sponsored Value Enhanced Grains III conference in Portland, Ore. For more information, go here.

DID YOU KNOW??

http://www.ncga.com is the premier source for information regarding Biotechnology, Ethanol, Trade, Transportation, Research and Business Development and Farm Bill Policy.

House Agriculture Committee Initiates Farm Bill Mark Up

On Thursday, the House Agriculture Committee began debate on the farm bill, considering dozens of amendments as the committee worked through the bill's titles. At press time, the committee's work is ongoing, but here is a summary of what has been accomplished:
Commodity Title-Fixed decoupled payments at $.30 per bushel for corn and $.42 per bushel for soybeans; a counter-cyclical payment with a target income for corn at $2.78 per bushel and target income for soybeans at $5.86; a doubling of the payment limit on the marketing assistance loan program from $75,000 to $150,000 while retaining the commodity certificate program; and loan rates set at $1.89 per bushel for corn and $4.92 per bushel for soybeans. An amendment allowing for a pre-harvest LDP was attempted but was withdrawn once the chairman expressed willingness to include report language in the bill to address marketing assistance loan program "fixes." Conservation Title-The conservation section of the farm bill as completed by the committee remained very similar to the "draft concept paper" breakdown. Existing programs were apportioned more money with a new Grasslands program added. The total for conservation, as included in the Chairman's proposal, is $16.511 over 10 years. A significant funding increase was included for the Environmental Quality Incentives Program (EQIP) that provides cost share payment for structural and management practices. The Conservation Reserve Program, CRP acreage was expanded to $40 million acres. An incentives program, as endorsed by NCGA, was not included in the House package. The Committee mark raised the annual authorization for the Market Access Program to $200 million and the Foreign Market Development to $35 million. This is significant increase for MAP, but very little for FMD. The Committee approved an amendment by Rep. Richard Pombo (R-CA) to direct significant emphasis in the FMD program on value-added agricultural products for emerging markets. It is not clear how the Pombo amendment would affect current FMD programs.

Illinois Corn Growers Testify on Input Price Disparity

Ron Fitchhorn, President of the Illinois Corn Growers Association, testified Thursday before the Senate Commerce, Science and Transportation Subcommittee on Consumer Affairs, Foreign Commerce and Tourism. The committee discussed Sen. Byron Dorgan's (D-ND) bill, S. 532, a measure aimed at negating the price disparity between what U.S. farmers pay for chemical inputs and what neighboring farmers in Canada pay. Fitchhorn took the opportunity to discuss price differences in chemical inputs and in conventional/biotech seed varieties, as well. The McClean, Ill., grower urged the subcommittee to pass legislation requiring USDA Economic Research Service to report prices paid for farm inputs (chemicals and seed) for U.S. farmers and farmers in competing countries. Having a centralized recording requirement "would allow U.S. farmers to monitor global price disparities," Fitchhorn testified. Fitchhorn's testimony is posted on the NCGA web site: www.ncga.com.

NCGA Genome Program Underway to Treat Diabetes

Thanks to the National Science Foundation's (NSF) Plant Genome program, created and supported by the National Corn Growers Association (NCGA), efforts are now underway to see if plants can be engineered to produce a human enzyme to treat Type 2 diabetes. For more details, go here.

NCGA, CRA Letter Seeks Lott's Help on Mexican Trucking Issue; Fallout Jeopardizes U.S. Exports of High Fructose Corn Syrup

NCGA and the Corn Refiners Association (CRA) Thursday sent a letter to Minority Leader Trent Lott (R-MS), seeking his assistance on a trade issue that threatens to destroy the $90 million market in Mexico for U.S. exports of high fructose corn syrup. A Senate showdown is expected over provisions included in the FY 2002 transportation appropriations bill, which opponents believe will violate NAFTA because the proposed safety standards that would apply to Mexican trucks would be more stringent than those currently applying to American and Canadian trucks. The White House wants Mexican trucks to have access to the nationwide system of U.S. highways next year; currently, these trucks are restricted to a 20-mile-wide zone north of the U.S.-Mexican border. In the letter to Sen. Lott, NCGA President Lee Klein and CRA President Charles Conner state: "The Government of Mexico has clearly stated that if legislation to restrict access of the Mexican trucking industry to the United States becomes law, they will retaliate by placing restrictions on U.S. exports of high fructose corn syrup. These exports have already been dampened by trade actions of the Mexican government and could be ended entirely if the Mexican trucking measure passed by the House becomes law." They added: "Exports of high fructose corn syrup to Mexico put over $35 million in the hands of U.S. corn farmers and provide a much-needed market for U.S. grain." The letter also points out that both NCGA and CRA have worked hard to build markets for value-enhanced markets for U.S. corn, citing a WTO case the United States recently won contesting existing Mexican restrictions on high fructose corn syrup. "This case, and other developments, could point to achieving a much larger market share for U.S. agriculture in the years to come. Our groups strongly support measures and actions to open, not close, trade between the United States and our NAFTA partners." They conclude by asking Sen. Lott to "protect this market for U.S. agriculture and reject unwarranted protection that can damage U.S. trade and violate the intent of NAFTA."

Baucus Bill Would Re-direct Ethanol-Blended Fuel Taxes into Highway Trust Fund

NCGA is supporting Sen. Max Baucus' (D-MT) proposed legislation, the "Highway Trust Fund Recovery Act of 2001." The bill would direct 2.5 cents from the sale of gasohol into the Highway Trust Fund, effective in FY 2004. This legislation will shift the additional funds back into the Highway Trust Fund and enable more funding to be returned to the states for highway construction. Please urge your Senators to support Sen. Baucus' bill. This legislation is expected to be introduced next Tuesday, July 31.

Senate Confirms Johnson as USTR's Chief Agriculture Negotiator

Allen F. Johnson has been confirmed unanimously by the Senate as the Chief Agriculture Negotiator for the Office of the United States Trade Representative. The position confers the rank of Ambassador on Johnson, who will be responsible for expanding farmers' access to overseas markets and for addressing related agricultural issues. In a news release, Johnson said "USTR will remain vigilant in our efforts to make sure our trading partners provide American farmers with fair access." Johnson's extensive experience in the agriculture sector includes serving as president of the National Oilseed Processors Association, and stints as CEO of the Iowa Soybean Association and Iowa Soybean Promotion Board. Earlier, he advised Sen. Charles Grassley (R-IA) on agriculture, environment and trade issues.

NCGA THIS WEEK

• July 30 NCGA representatives will attend a Biotech Working Group Meeting in Indianapolis, Ind.
• July 31 NCGA CEO and Executive Vice President Rick Tolman will attend the Kentucky Summer Business Meeting in Louisville, Ky.
• Aug. 1-2 Rick Tolman will attend the Kansas Corn Commission Meeting in Hiawatha, Kans.

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE