IN THIS ISSUE:

• NCGA Disappointed By Passage of Dorgan-Grassley Amendment
• NCGA Sees Positives in FY 2003 Federal Budget
• Corn Growers Maintain High-Level Management of Biotech Hybrids, Survey Shows
• NCGA Checkoff-Funded Research Scores Big with PLA Designation
• NCGA Checkoff Funds Create Blueprint for Success for Corn Growers
• NCGA Teams with Grains Council at USGC's Winter Meeting
• NCGA Growers, Leaders Hone Leadership Skills During Training in D.C.
• Commodity Classic: A 'Sound Opportunity' and Valuable Experience for Growers
  

NCGA Disappointed By Passage of Dorgan-Grassley Amendment
Despite strong objections voiced by the NCGA, other commodity groups and Senators representing farm interests, an amendment to sharply reduce payment limitations on farm supports sailed through by a vote of 66 to 31. Senators Kit Bond (R-MO) and Jean Carnahan (D-MO) were the lone dissenters from the Corn Belt.

The measure introduced by Senator Byron Dorgan (D-ND) and Senator Chuck Grassley (R-IA) requires a combined limit on direct and counter-cyclical payments to $75,000 and $150,000 on marketing loan assistance. An additional $50,000 is allowed for a husband and wife farm operation for a total payment limitation of $275,000. Passage of the Dorgan-Grassley amendment now moves the Senate farm bill one
step closer to passage with some reports indicating final action being completed by Tuesday of next week. However, there is still some uncertainty on what steps Senate Democrats from the southern states will take to oppose final passage given the bill's new payment provisions, a 1,000-hour labor requirement and means testing. Support from Senators from several western states also continues to be unknown depending on efforts to amend the bill's controversial water rights provision in the Conservation Reserve Program. (More On This Story)

NCGA Sees Positives in FY 2003 Federal Budget
The NCGA is encouraged by President Bush's proposed $2.13 trillion FY 2003 Federal Budget released Monday. While there is a slight decrease in the overall funding levels for USDA, NCGA encouraged by the Administration's commitment to several important programs such as trade. The budget provides more than $5.8 billion for international trade programs.

By fully funding programs like the Market Access and Cooperator programs, the President recognizes the importance of trade to the vitality of U.S. agriculture. This recognition of critical trade issues further emphasizes the need for the Senate to pass Trade Promotion Authority (TPA). Without it, U.S. agriculture will be left behind in the international marketplace. Ninety-six percent of the world's potential customers for U.S. corn and corn products live outside the United States. TPA will provide the leverage the U.S. needs to negotiate the best possible trade agreements to keep the nation's agriculture competitive.

The budget also recognizes the importance of a safe and secure food supply through increased resources for homeland security. Needed investments are provided in important research priorities NCGA supports, he concluded. For example, the FY 2003 blueprint provides an
increase of $1 million for the Agriculture Vision/Industries of the Future program. The Industries of the Future program supports cost-shared research to improve energy efficiency and environmental performance. Also, the budget provides $57.2 million for the Joint Genome Institute and $75 million for the National Science Foundation/Plant Genome Research Program. (More On This Story)

Corn Growers Maintain High-Level Management of Biotech Hybrids, Survey Shows
Corn growers continue to show responsible management of the environment by practicing good stewardship of crops developed through biotechnology, the NCGA announced Tuesday.

A recent survey of U.S. corn growers who grow biotech hybrids showed the majority of those farmers are implementing management practices that will help avoid the potential of insect resistance to Bt (Bacillus thuringiensis) corn. Results of the survey conducted during harvest 2001 were forwarded to the U.S. Environmental Protection Agency (EPA) on Jan. 31.

The survey shows U.S. corn growers understand the need to follow good insect resistance management practices and are implementing these practices on a broad scale. Nine out of 10 Bt cornfields were planted within 1/2 mile of the appropriate non-Bt refuge.

The survey results demonstrate that when given the appropriate information corn growers are responsible stewards of Bt technology. It is also an indication of how the nation's corn growers are working to maintain the long-term sustainability of new technology as it becomes available.
NCGA's nationwide membership of 32,000 has long been promoters of stewardship of the biotech hybrids with the Insect Resistance Management (IRM) program and through NCGA's Know Before You Grow information campaign about corn hybrids. Information on both programs is available at NCGA's website, www.ncga.com.

The survey reports 87 percent of growers planting Bt corn in 2001 met the guidelines established by the U.S. EPA. The U.S. EPA requires growers of Bt corn to plant at least 20 percent of their acreage with non-Bt hybrids in the Corn Belt. In the Cotton Belt, the requirement is 50 percent because Bt cotton can also be planted nearby. In each area, growers are also required to plant their refuge within a half-mile of the Bt field, preferably within a quarter mile of the field.

These standards are to avoid the potential for insects to develop resistance to Bt. Corn hybrids with Bt traits protect the plant against specific
insects, such as the European and Southwestern Corn Borers. Corn borers severely damage corn plants, which dramatically cuts yields and reduces farmers' incomes.

Insect specialists say over time it's theoretically possible for some corn borers to naturally develop resistance to any control strategy. IRM plans are designed to keep the insects from developing resistance by providing a "refuge" of non-Bt corn where susceptible borers can mate with borers that may be resistant to Bt. To date, no Bt resistance has been detected within cornfields.

The survey also found that 89 percent - up from 82 percent in 2000 -- of those surveyed met the requirement that all their Bt cornfields be within one-half mile of a non-Bt field.

Ninety-two percent of growers questioned said IRM plans for Bt corn were important. Also, nearly seven of every 10 growers who regularly use
insecticides to control corn borers indicated their use of conventional insecticides to control corn borer had either significantly decreased or
decreased somewhat since they started growing Bt corn. More than 550 growers responded to the survey conducted in October and November 2001 among Bt corn users in the Corn Belt and Cotton Belt. The survey was conducted by an independent research firm for the Agricultural Biotechnology Stewardship Technical Committee (ABSTC), a consortium of companies that provide biotech products. ABSTC includes Aventis CropScience USA LP, Dow AgroSciences LLC, Monsanto Co., Mycogen Seeds, Pioneer Hi-Bred International, and Syngenta Seeds Inc.

Annual survey reports are required under the U.S. EPA's Bt Corn Industry Insect Resistant Management Plan, which was developed by BSTC, the NCGA and university scientists.

DID YOU KNOW??
The Leader Resource Center, located at <http://www.insidencga.com> provides
the latest information and calendars for NCGA members on the topics affecting them daily.

NCGA Checkoff-Funded Research Scores Big with PLA Designation
Contrary to what children are told, name-calling can be a good thing. That's certainly the case with Monday's announcement by Cargill Dow that the Federal Trade Commission (FTC) has designated PLA as a new generic fiber. This is big news for the NCGA and corn growers because it sets a precedent for future renewable products.

The corn-based material, tradenamed NatureWorks, is PLA, or polylactide. It is a polymer made from the carbon in corn starch. NCGA was instrumental in researching and supporting the development of PLA, using monies from 19 corn grower checkoff states to fund the project
PLA is the first in a new generation of renewable products and NCGA is working on developing other technology for new uses of corn. It is NCGA's vision to develop a renewable products industry with corn as a chief feedstock to increase demand for corn and increase the opportunity for grower profit.

PLA is the first generic fiber of the new millennium to earn FTC approval. With the designation, PLA has shown to have a marketable commercial use and have an importance to consumers. PLA joins cotton, wool, silk, nylon and polyesters as a recognized fiber category.

As a fiber, NatureWorks combines the most desired physical characteristics of natural fibers, such as wool, cotton and silk, and conventional
synthetics. The fibers show performance as well as environmental benefits that result from using renewable resources like corn.

Cargill Dow recently completed construction of the company's first world-scale PLA manufacturing facility in Blair, Neb. At capacity, the
manufacturing plant will produce up to 300 million pounds (140,000 metric tons) of PLA per year. The result will be a dramatic increase in the
commercial availability of NatureWorks fibers in conjunction with consumer products being introduced throughout 2002 and 2003. NCGA was recognized by Cargill Dow at the plant's ground breaking in April 2001 for their support in the research and development of PLA.

For more information on PLA and other NCGA research projects, visit the NCGA website at <http://www.ncga.com/research/main/index.html>.

NCGA Checkoff Funds Create Blueprint for Success for Corn Growers
The phrase supply chain analysis isn't normally heard in corn grower conversation. But it's a concept that the NCGA is employing to look for new markets for corn or to show growers how to better market their product themselves.

Using checkoff funds from 20 corn grower states, NCGA is working on a project using supply chain analysis in order to create a blueprint for the nation's corn growers to use to determine their individual capability to take advantage of these market opportunities.

The project will be presented to the Customer and Business Development Action Team during their March meeting in Golden, Colo., and is scheduled for completion May 1.

Snider said many variables must be understood to evaluate grower opportunities for capturing the value that is added to the supply chain.
NCGA has narrowed the list down to six key variables for this study. These six are used in identifying and evaluating value-capture opportunities for growers. The variables are market pull, competitive positioning, business structure, competition, risk and revenues.

Some of the milestones NCGA planned to achieve with this project includes identifying opportunities for growers due to location relative to users,identifying the factors of influence on the customer's market to identify potential business opportunities and develop a system for evaluation of competitive positioning, among others.

For more information on this and other checkoff-funded projects, visit the NCGA website at <http://www.ncga.com/research/main/index.html>.

NCGA Teams with Grains Council at USGC's Winter Meeting
Grower-leaders of NCGA were in Dallas this week, where they teamed with Grains Council at the USGC's 42nd Membership Meeting, Feb. 3-5. The purpose of the meeting was to focus on programs and strategies for the coming year. USGC and NCGA have long been allies and this conference was a great way for the two commodity groups to stay on the same page. Also attending the meeting on behalf of NCGA were: President and Walsh, Colo., corn grower Tim Hume; Chairman and Battle Creek, Neb., grower Lee Klein; and NCGA Director of Public Policy Keira Franz.

Monday's general session included an unveiling of the new 10-year outlook for world supply, demand and trade, along with reports from USGC staff on their global initiatives and priority markets. Monday afternoon, attendees broke into commodity groups to discuss programs and priorities specific to the barley, corn and sorghum industries, and gave direction to USGC staff regarding implementation of market development activities for the coming year.

On Tuesday, the Council's committees met to map out specific goals and objectives based on the new Strategic Plan adopted by the USGC Board of Directors at its 2001 summer meeting in Portland. That afternoon, the Board addressed key operational issues for the organization. NCGA President Tim Hume, who is the chairman of the USGC Trade Policy Coordinating Committee for this year, presided over that session, where corn, sorghum, barley and agribusiness met together to share their respective trade policy position and coordinate as was appropriate.

For more information about trade and NCGA, visit <http://www.ncga.com/trade/main/index.html>.

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.

NCGA Growers, Leaders Hone Leadership Skills During Training in D.C.
If leaders are made, not born, then the NCGA is a veritable assembly line for leaders thanks to a recent leadership training conference in Washington, D.C., recently.

The conference provided training to growers who are currently state association presidents or just getting active on a state association board,
with 15 growers from 12 states taking part in the event, explained NCGA Membership Services Manager Byron Keelin.

The training, sponsored by Syngenta Crop Protection, was actually the second meeting of a two-part training class. The first phase took place in Greensboro, N.C., in August where leaders were briefed on issues affecting agriculture on a national basis. The second phase in Washington, D.C., provided an opportunity for leaders to go to Capitol Hill and meet with their elected officials. NCGA members met with elected officials such as Sen. Bill Frist (R-PA), U.S. Representatives Tom Osborne (R-NE), Larry Combest (R-TX), Sam Graves (R-MO), and other elected federal officials from Nebraska, Wisconsin and Ohio. (More On This Story)

Commodity Classic: A 'Sound Opportunity' and Valuable Experience for Growers
Commodity Classic, the premier agricultural event of the year, begins in just a couple of weeks! Soybean and corn producers who attend 2002 Commodity Classic can learn how to increase efficiency and profitability to improve the bottom line of their farming operations. Commodity Classic, Feb. 21-23, 2002, in Nashville, Tenn., at the Opryland Hotel, is the seventh annual convention and trade show of the NCGA and ASA.

The trade show includes about 600 booths representing a wide range of agribusiness companies and organizations. The seminars will address topics ranging from marketing to new products to the future of agriculture. For complete details about Commodity Classic in Nashville, Tenn., visit the official web site at www.commodityclassic.com<http://www.commodityclassic.com> or call 636-928-3700 and ask for a
registration brochure.

NCGA THIS WEEK

• Feb. 12 NCGA CEO Richard Tolman and Director of Business Development Richard Glass will attend the Mon-Clair Corn Growers Association Annual Meeting at Turkey Hill Grange, Ill.
• Feb. 13 NCGA Director of Production and Marketing Paul Bertels and Director of Communications Stewart Reeve will attend the Missouri River Town Hall Meeting in Columbia, Mo.
• Feb. 19-23 NCGA/ASA Commodity Classic, Opryland Hotel, Nashville, Tenn.
  

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE