IN THIS ISSUE:

• NCGA Urges California's Gov. Davis to Fulfill Commitment and Open Doors for Ethanol
  
• NCGA Expects New Farm Bill In March
• Checkoff Funds Provide Big Returns for Little Cost
• NCGA Hosts Visit From Japanese Trade Specialists
• County Corn Grower Organization Presents $500 to NCGA

NCGA Urges California's Gov. Davis to Fulfill Commitment and Open Doors for Ethanol
Indecision by California Gov. Gray Davis has prompted NCGA President Tim Hume to write Davis a letter urging him to keep his commitment to eliminate MTBE from California gasoline by Jan. 1, 2003.

"When you originally made that commitment, you and members of your Administration expressed the desire to eliminate MTBE at the earliest date possible because of the negative impact using MTBE was having on water quality in California," said Hume, a farmer from Walsh, Colo. "Today, MTBE is still being used in the overwhelming majority of California gasoline and drinking water supplies in California continue to be contaminated; this has not changed. What has changed is the clear and undeniable existence of a real alternative to MTBE, ethanol.

"However, while California invested significant resources in your waiver request, corn farmers invested their resources in new ethanol production by becoming members of ethanol cooperatives," Hume continued. "In fact, most of the new capacity being built to meet the new demand anticipated from new market opportunities like California are farmer-owned cooperatives.

"This unprecedented investment by farmers is in direct response to the challenge made by you and members of your Administration when you suggested that ethanol was not a viable alternative to MTBE because enough was not being produced," Hume concluded, once again urging Davis to fulfill his commitment. "The investments of many of our members will be affected by your decision." (More On This Story)

NCGA Expects New Farm Bill In March
The U.S. Senate appeared to be the Grinch who stole Christmas by pulling the Farm Bill from consideration before the holiday break. However, farmers may see new legislation about the time the Easter Bunny arrives.

One of the goals of the Bush administration was to have a new Farm Bill enacted before the end of 2001. Because of disagreements in the Republican and Democrat camps, this didn't happen. Senate Majority Leader Tom Daschle (D-SD) pulled the Farm Bill from consideration before the holiday break after three failed attempts to end debate and proceed to a floor vote.

The NCGA has been vocal in expressing its disappointment in the lack of a Farm Bill, but looks for action this spring. Currently, three factors dictate the eventual outcome of the Farm Bill in the Senate. They are:

• The anticipated bleak federal budget projections by the Congressional Budget Office, which could be out as early as Jan. 24. The projection is expected to show a deficit for fiscal year 2003, compared to the surpluses projected when Congress adopted its budget resolution for fiscal year 2002 that allotted billions of additional dollars for agriculture spending above and beyond current levels during the next 10 years.

• The lack of a consensus in the Senate after it rejected separate amendments offered by Sens. Richard Lugar (R-IN), Pat Roberts (R-KS) and Thad Cochran (R-MS) that would have fundamentally altered the Farm Bill adopted by the Senate Agriculture Committee by a party-line 12-9 vote in November.

• Finally, the Senate's rejection, by a 59-38 vote, of an amendment offered by Sen. Tim Hutchison (R-AR) that would have replaced the current Senate version of the Farm Bill with one modeled after the House-passed version. (More On This Story)

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.

Checkoff Funds Provide Big Returns for Little Cost
Imagine multi-million dollar research being done for the sole purpose of making you more money. Imagine consumers being educated on the necessity of your job and, in turn, those consumers going out of their way to use your product. You don't have to imagine, because that's already happening thanks to checkoffs.

The NCGA recognizes the plethora of positives that spring from the checkoff funds of 20 corn-grower states. NCGA provides a voice to the nation's corn growers both nationally and internationally on matters such as ethanol promotion, biotechnology, farm legislation and much more. None of that would be possible without the fraction of a cent per bushel corn growers pay at the elevator.

One of the more visible uses for checkoff funds is projects researching new technology to open new markets for corn. Millions of dollars are spent every year researching new uses for corn and a large portion of that money comes from checkoffs. New uses for corn fiber, plastics, antifreeze and other industrial chemicals are only the tip of the iceberg. The new PLA plant in Blair, Neb., is a shining example of successful use of checkoff monies. PLA has the potential to revolutionize the garment industry as well as advances in plastics and packaging, and was possible in part because of checkoffs.

Checkoff funds can also be used to conduct feasibility studies and can fund environmental research to make sure farmers are using poultry litter in an environmentally sensitive manner and we've done some work on nitrogen removal. Some checkoff monies are used to improve the awareness of agriculture and the public's awareness of its importance with education programs. Some of these include ag in the classroom programs for school-aged children and programs with our nutrition groups.

Some states allow growers to request their money be refunded at the end of the year, but if you think about it, the money provided by checkoffs provides a pretty big return. That money is used to open new markets, provide awareness and fund programs that actively fight for the rights of growers. More money, more return. The more you support your state's checkoff program, the better chance you have of making more money with your product. (More On This Story)

DID YOU KNOW??
http://www.ncga.com provides an easy-to-use search engine to search the web site.
Looking for specific information? It's easy to find it online at www.ncga.com!

NCGA Hosts Visit From Japanese Trade Specialists
The NCGA hosted representatives from the Japanese External Trade Organization (JETRO) at the St. Louis offices Monday. JETRO is a Chicago-based Japanese exporting organization that sent representatives to meet with NCGA to discuss the latest issues of biotech crops and registration, as trade issues.

NCGA President-Elect and Plain City, Ohio, corn grower Fred Yoder, Executive Vice President and CEO Rick Tolman and NCGA Director of Development Tom Slunecka met with the group, which included JETRO Agriculture Director Akinari Maejima; Assistant Agriculture Director Vincent Fike; and Honorary Consul General of Japan Bruce Buckland.

Maejima said his organization was concerned about the possible disruption in trade in the event of another incident such as StarLink were to occur, but he also said they are proponents of biotechnology.

He went on to encourage NCGA to be involved in getting the word out about the environmental benefits of biotech out to the international consumers. (More On This Story)

County Corn Grower Organization Presents $500 to NCGA
NCGA Corn Board member Richard Peterson, a farmer from Mountain Lake, Minn., presented a check for $500 on behalf of the Jackson County, Minn., Corn Growers Association at the NCGA Corn Board meeting Thursday in St. Louis. The county organization presented the check for corn promotion programs.

A charter member of the NCGA and a member of the Jackson County Corn Growers Association, Peterson helped organize the County organization, the nation's third largest county organization. Jackson County is located in southwestern Minnesota and has 300 members. It is the first county organization to present money directly to NCGA. (More On This Story)

NCGA THIS WEEK

• January 21 - NCGA offices will be closed in observance of the Martin Luther King Jr. Holiday
• January 22 - Director of Public Policy Sam Willett will attend the Kentucky Commodity Conference in Bowling Green.
• January 22-24 -- Vice President of Operations Mike Rohan will attend a polyols meeting at Michigan State University.
• January 22-23 -- A delegation from the Ohio Corn Growers Association will be in Washington, D.C., for Capitol Hill visits.
• January 23 -- Executive Vice President and CEO Rick Tolman will participate in the Minnesota Ag Expo.
• January 23-25 - Director of Public Policy Keira Franz will attend a conference on China in St. Louis
• January 24 - Marketing Communications Manager Gary Bradley will accept a Best of NAMA Award on behalf of NCGA in Kansas City.
• January 24 - Executive Vice President and CEO Rick Tolman will attend the Corn Marketing Program of Michigan annual meeting.
  

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WASHINGTON D.C. OFFICE