IN THIS ISSUE:

• NCGA President Meets With Mexican Economy Secretary on HFCS
• NCGA's Input Sought on Homeland Security Issues
• NCGA Spreads the Word on DDGS' Benefits
• Commodity Classic: A 'Sound Opportunity' for Farmers to Network and Grow
• Veneman to keynote Commodity Classic General Session
• NCGA Participates in Michigan Polyols Meeting
  

NCGA President Meets with Mexican Economy Secretary to Discuss HFCS
NCGA President Tim Hume was called to Washington, D.C., Friday, Jan. 19, to meet with Mexican trade officials over Mexico's taxation of soft drinks containing high-fructose corn syrup (HFCS).

The tax on high-fructose corn syrup, NCGA says, could place an unfair disadvantage on soft drinks produced from corn sweetener and U.S. corn sales could face a $66 million reduction.

Hume had the opportunity to voice corn growers' concerns over the soft drink tax in Mexico to Mexican Secretary of Economy, Luis Derbez. The meeting allowed for discussions about both sides of this issue, and each party left with a better understanding of each other's perspective, Hume said.

"It was a good meeting," he continued. "We heard what we needed to hear and I feel Mr. Derbez was being reasonable. Right now, both parties are waiting for more information. We were pleased that we had the opportunity to voice our concerns over this tax to Minister Derbez and to speak first-hand about the harm to corn growers across the country."

The value of the HFCS market in Mexico is about $240 million. However, that includes HFCS refined using U.S. corn in both the United States and Mexico. Several corn-processing companies have invested more than $800 million in refineries in Mexico since the North American Free Trade Agreement was passed.

The HFCS market in Mexico includes a demand for about 32 million bushels of corn. If the United States' ability to supply the soft drink market in a cost-effective manner is diminished by this tax, corn growers across the country will be hurt, said Hume. He added that Mexico is currently the United States' number two market for bulk corn exports and NCGA wants to retain that market for both bulk corn and HFCS. (More On This Story)

NCGA's Input Sought on Homeland Security Issues
National Corn Growers Association (NCGA) President-Elect Fred Yoder and Director of Energy Analysis John McClelland heard an earful Wednesday when they learned more about the effects terrorist activities could have on agriculture.

The NCGA representatives were among a wide array of organizations invited to a briefing by Tom Ridge, Director of the White House Office of Homeland Security, at the Old Executive Office Building in Washington, D.C. The briefing was specifically on the national threat advisory system which is establishing a set of conditions and measures for threats -- terrorist and otherwise -- throughout the nation.

Ridge used the opportunity to talk about the need for the nation to take a very broad approach to homeland security. Specifically, there is an urgent need to look at the infrastructure for energy and food supplies, as well as the safety of our citizens.

As tragic as events were on Sept. 11, all stakeholders must to use this opportunity to build a better, safer, stronger America, Ridge told those attending the briefing. Ridge emphasized, the need for all groups represented at the briefing to help in developing a homeland security plan by sharing information with the Office of Homeland Security on how they can help protect the nation's critical infrastructure.

Yoder noted that Ridge talked about how much he has learned about the vast array of homeland security issues that are out there -- everything from protecting hydroelectric dams to internet security to making sure that critical infrastructures like gas pipelines are safe and secure.

"My immediate thought was about disruptions that could cause shortages of agricultural inputs at critical times, such as natural gas shortages before planting so there wouldn't be enough supply of nitrogen fertilizer, or at harvest to dry grain," Yoder said. "We could have some real problems because of those kinds of breakdowns in infrastructure that might be caused by terrorist attacks."

McClelland noted that, "The agricultural sector would suffer greatly from any attacks on energy and transportation infrastructures that have serious impacts on our ability to deliver food and fiber."

NCGA will host a follow-up meeting focused on agricultural issues and homeland security, with USDA Secretary Ann Veneman's office on Feb. 7. (More On This Story)

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NCGA Spreads the Word on DDGS' Benefits
Ethanol is quickly becoming the fuel of choice in the Unites States as a safer, cleaner-burning alternative to the petroleum-based MTBE. A valuable co-product of dry grind ethanol distillation is distillers grain, which can be used as a protein supplement in livestock feed.

The National Corn Growers Association (NCGA) recognizes the importance of co-products and is sending Livestock Services Manager Tracy Snider to Denver, Colo., Feb. 4-8 to attend the National Cattlemen and Beef Association (NCBA) Convention and continue to promote corn and ethanol co-products. "We are striving to pursue an active role with NCBA," Snider said.

NCGA is currently riding a high-level of success in the field of DDGS. In November, Snider conducted a very successful workshop on the subject in Lincoln, Neb. "The workshop was to educate growers and industry reps from both ethanol and the animal nutrition industries how the product is being used," she said.

"We're hoping the exposure to how distillers grains are being used in the livestock market will help stabilize the ethanol market by creating a larger need for both ethanol and DDGS," Snider continued. "This will also stabilize the corn market and make corn more profitable for growers."

Snider also spoke recently at the Texas Ethanol Conference on the advantages of distillers grains for livestock. "During the conference, I spoke on the potential value of co-product markets," she said.

"Due to the numbers of cattle on feed in Texas, growing dairies and prospective hog farms there are accessible markets for corn distillers grains in Texas," said Snider. "As Texas moves forward with their feasibility study on Texas Ethanol Production, there livestock population will play an important role in determining potential profitability and grower value."

Over the next several weeks, DDGS will continue to be a focal point for NCGA as they educate growers on the merits of the co-product. In late February the Renewable Fuels Association will conduct their National Ethanol Conference in San Diego where Snider will be moderating a panel on DDGS. Mid-March sees Snider wracking up more travel points during the American Society of Animal Sciences (ASAS) Midwest Meeting and DDG Review.

"With the demand for ethanol set to triple by 2003, the question is where the co-products, such as distillers grains, will go," Snider concluded. "These workshops are meant to set the stage for those discussions and open up opportunities for better understanding of the use of distillers grains." (More On This Story)

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A 'Sound Opportunity' for Farmers to Network and Grow
At Commodity Classic 2002 Feb. 21-23 in Nashville, Tenn., corn and soybean growers will have a unique opportunity to "stay in tune with the future" and network with top producers and industry leaders from throughout the United States. They will hear the latest information about issues and concerns that affect their farming operation and agriculture in general.

Commodity Classic is the Seventh Annual Convention and Trade Show of the National Corn Growers Association (NCGA) and American Soybean Association (ASA).

"Commodity Classic is a great opportunity to network with other producers," said NCGA President Tim Hume, a farmer from Walsh, Colo.. "Growers will benefit from one-on-one conversations, group discussions, and interactions with producers and industry representatives."

The Commodity Classic Convention and Trade Show offers producers a valuable opportunity that occurs only once a year. It's an opportunity that conveniently gives them access to a large number of agriculture businesses and organizations and their leaders, as well as educational and learning seminars.

"Many top agribusiness leaders and industry experts attend Commodity Classic," said ASA President Bart Ruth, a farmer from Rising City, Neb. "They are there to share information with growers and help them increase the profitability and efficiency of their farm operations."

For complete details about Commodity Classic, visit the web at www.commodityclassic.com or call 636-928-3700 for a registration kit. (More On This Story)

Secretary of Agriculture Veneman to Keynote Commodity Classic General Session
U.S. Secretary of Agriculture Ann Veneman will be the keynote speaker at the Commodity Classic General Session Feb. 22 in Nashville. Veneman will close the session with her address to Commodity Classic attendees. The topic of this year's General Session panel discussion, hosted by John Phipps, will be the future of renewable fuels. Growers learn more about the importance of a renewable fuels standard (RFS) in national energy legislation, and how they can take grassroots action to ensure its inclusion in the energy bill.

NCGA Participates in Michigan Polyols Meeting
NCGA Vice President of Operations Mike Rohan and Director of Research and Plant Biology Richard Glass traveled to Michigan State University this week to conduct a Polyols team meeting and the annual DOE review. The meeting was held Jan. 23 in Lansing and involved DOE representatives Mark Paster, Drs. Dennis Miller & Nat Jackson, MSU (co-principal investigators), Todd Werpy, Battelle, and Bob Mustell, consultant. Significant progress has been made in clarifying the mechanism for the conversion of sorbitol to propylene and ethylene glycol, glycerol, and lactic acid. The team heard reports from each key area. Laboratory scale separation of sorbitol into value added chemicals by use of catalytic conversion is showing excellent progress in demonstrating the potential of commercialization. Separation technology requires optimization to increase yield efficiencies and work is continuing in the pilot plant on a scaled-up fractionation column. Further support of this work is recommended by the NCGA and will be reviewed by the action team. Next steps include exploring option agreements to commercialize.

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