IN THIS ISSUE:

• NCGA Stresses Importance, Benefits of Comprehensive Energy Policy
• NCGA Extremely Pleased With Chinese Biotech Breakthrough
• NCGA Calls GAO Ethanol Industry Report 'Good News'
• Agriculture, Oil, and Ethanol Forge Deal That Carries From Negotiating Table to Senate Floor
• NCGA Remains Concerned Following Suspension of Soft-Drink Tax
• NCGA Encouraged by President Bush's Expressed Support for Farm Programs
• NCGA Future Ag Task Force Shows Corn Growers How to Face Challenges of 21st Century Ag
• NCGA Addresses Antiquated River Systems During Production and Stewardship Action Team Meeting
• Corn Growers Urged to Attend River Meetings
• Mr. Smith Goes to Vancouver to Spread the Word on Ethanol
• Nebraska's Hutchens Spreads NCGA Message of Biotech Benefits to APEC Audience
• PLA Hits the Mainstream Monday Night on QVC
  

NCGA Stresses Importance, Benefits of Comprehensive Energy Policy

"A comprehensive energy policy is good for the environment, good for the economy and good for America," Fred Yoder, NCGA president-elect said Friday at a Capitol Hill press conference where both Democrats and Republicans rallied in support of a renewable fuel standard (RFS) in national energy legislation.

The press conference, moderated by Senate Majority Leader Tom Daschle (D-SD), drew Senate participants from both parties - several of whom have just recently come on board in support of an RFS - along with U.S. Department of Energy Secretary Spencer Abraham. "The bottom line is that we need more domestic energy production as well as renewables," said Yoder. "An RFS will help pave the way to meeting that bottom line."

Yoder stressed the importance of bolstering the United States' energy independence. "The first thing I want to make clear is that the National Corn Growers Association is fully behind the passage of a comprehensive energy bill that addresses ournation's serious dependence on foreign oil," he said. "We need more domestic oil and gas and more domestic renewable fuels."

He noted that on Tuesday, an RFS was introduced on the floor of the U.S. Senate, adding that an RFS would represent a tripling of ethanol demand and therefore a tripling of grain used to produce ethanol.

"If the truth were told, this program will provide greater marketing opportunities than the farm bill currently being debated," he concluded. "These two reasons - energy security and maximizing market opportunities - is why we will work to pass this energy bill."

Yoder encouraged supporters of a renewable fuel standard to make their voices known to their legislators by clicking on the Action Alert on the NCGA web page: www.ncga.com <http://www.ncga.com>.

NCGA Extremely Pleased With Chinese Biotech Breakthrough

The NCGA is very happy with an interim agreement announced Thursday allowing China to continue importing biotech products from the U.S. This agreement is the culmination of sustained efforts by the NCGA, the U.S. Grains Council and other agricultural interests over the past several months to resolve this issue.

Earlier Thursday, U.S. trade officials announced a compromise reached by China and the United States on Beijing's controversial rules on
bio-engineered food imports. The agreement will avoid delays that are posed by China's restrictions on biotech farm products, which are scheduled to go into effect March 20. Details of the agreement are to be released by authorities in China before the new regulations go into effect. Part of the agreement states if products have completed the regulatory review process in the exporting country and have initiated the approval process in China, imports will be allowed under the Chinese system on an interim basis.

The importance of the agreement to U.S. corn producers and exporters is that China's agreement under the WTO is for a potential of 5.85 million metric tons for 2002, representing more than $500 million in potential export business. That number is expected to grow to 7.2 million metric tons by 2004, making China potentially the third largest overseas market for U.S. corn.

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.The Leader Resource Center provides the latest information and calendars for NCGA members on the topics affecting them daily.

NCGA Calls GAO Ethanol Industry Report 'Good News'

NCGA is dismissing some efforts to interpret the study in negative terms, saying critics want to use this study to describe the ethanol industry of the future, based on what the industry has been in the past. There's unprecedented growth of new grower-owned companies coming into the business, growth that will provide plenty of diversity, plenty of competition and a platform to continue expanding ethanol production.

That industry transformation also supports the move to a national renewable fuel standard (RFS), as proposed in S. 517, the Senate energy bill. NCGA believes that a significant amount of the new growth in the ethanol industry that will be built to meet the demand of the renewable fuel standard will by farmer-owned cooperatives. Currently, 13 plants with more than 400 million gallons of annual production capacity are under construction. None of these plants is owned by large ethanol producers.

An AUS Consultants economic study of renewable fuels legislation, released last November, found that an RFS would ultimately benefit the United States by improving energy security, the U.S. agricultural economy and the broader U.S. economy, even after factoring in the short-term adjustments involved.

Agriculture, Oil, and Ethanol Forge Deal That Carries From Negotiating Table to Senate Floor

The NCGA is cheering the inclusion of a renewable fuel standard (RFS) in the Senate energy bill. The RFS was introduced on the floor of the U.S. Senate Tuesday by Senate Majority Leader Tom Daschle and inserted into the Senate energy package in place of current language.

The breakthrough on the RFS came late Monday night as a result of several weeks of negotiations among Senate leaders headed by Daschle and a coalition of key ethanol industry, oil, and agricultural associations, including the NCGA, the renewable Fuels Association, and the oil industry represented by the American Petroleum Institute.

Here are some of the details of the agreement:
A renewable fuel standard in which part of the United States' fuel supply, growing to 5 billion gallons by 2012, is provided by renewable, domestic fuels such as ethanol and biodiesel in exchange for eliminating the oxygen requirement in reformulated gasoline; Creating a flexible market-based program; Phasing down the use of MTBE in the U.S. gasoline market over four years; Protecting the air quality gains of the RFG program. NCGA feels these provisions will promote more U.S.-sourced energy, reduce oil imports, protect the environment and stimulate rural economic development through increased production and use of domestic, renewable Fuels.

While the inclusion of the RFS amendment was praised in the Senate's energy package, NCGA does have some concerns about the bill, such as, they do not think the ethanol demand is large enough in the short-run, however, given the language they started with in the underlying bill, they believe this is a very good compromise that will greatly enhance the role of ethanol in the U.S. gasoline pool.

The NCGA has set a goal of tripling the use of corn in ethanol production within 10 years, having worked along with the other members of the RFS coalition who have taken the lead as proponents of a renewable fuel standard in national energy legislation.

House Adds Farm Bill Conferees; NCGA Urges Growers to Contact Legislatorss through LAC

Speaker of the House Dennis Hastert announced late Thursday additional conferees to the new Farm Bill. With just two weeks remaining until the Congressional Easter recess, the 27 members will participe in negotiations on sections of the House and Senate bills that fall under their respective committees' jurisdictions.

The NCGA is urging its members to log onto www.ncga.com http://www.ncga.com and use the Legislative Action Center to contact their
elected officials and call for a quick passage for the Farm Bill. The following House committees that will now have representation in the Farm
Bill Conference include: Ways and Means, Science, Resources, Judiciary, International Relations, Financial Services, Energy and Commerce, Education and Workforce, and Budget. Thursday's announcement by Speaker Hastert is another indication of the many differences that will have to be resolved before sending a bill to the President.

Members added to the conference are: Bill Thomas (R-CAL), Wally Herger (R-CAL), Charles Rangel (D-NY), Roscoe Bartlett (R-MD), Sherwood Boehlert (R-NY), Ralph Hall (D-TX), James Hansen (R-UT), Don Young (R-Alaska), Ron Kind (D-WI), James Sensenbrenner (R-WI), Mark Green (R-WI), Tammy Baldwin(D-WI), Christopher Smith (R-NJ), Tom Lantos (D-CAL), Henry Hyde (R-IL), Michael Oxley (R-OH), Spencer Bachus (R-Ala.), John LaFalce (D-NY), W.J. "Billy" Tauzin (R-LA), Joe Barton (R-TX) and John Dingell (D-MI).

NCGA Remains Concerned Following Suspension of Soft-Drink Tax

The NCGA expressed cautious optimism upon hearing the Mexican government announcement today they would repeal a 10-20 percent tax on soft drinks not produced using cane sugar until Sept. 30, 2002. NCGA sought to have the tax repealed since its passage.

While NCGA is hopeful upon hearing of the suspension, they were expecting a straight repeal of the tax. NCGA will continue to seek the full repeal of the tax and ensure that U.S. corn and U.S. fructose have access to the Mexican soft drink market.

NCGA has said the tax never should have been implemented, since on December 11, the U.S. and Mexico agreed to good faith negotiations on sweetener issues and prior to one of those meetings, the Mexican Congress passed the soft drink tax.

NCGA has also said they recognize the need to resolve the broader sweetener issues between the U.S. and Mexico, and support good faith negotiations.

NCGA Encouraged by President Bush's Expressed Support for Farm Programs

President George W. Bush visited Des Moines, Iowa, on Friday, March 1, and made several comments the National Corn Growers Association (NCGA) finds encouraging, including the need for quick passage of the Farm Bill and the benefits of ethanol.

"We need a good Farm Bill to help with jobs," said the president. "I'm looking forward to working with Congress to get a good Farm Bill, one that recognizes a couple of things. One, farming is an incredibly important part of our economy. It's a huge industry in America and the more vibrant the farm economy is, the more vibrant our national economy will be. "So, I want a good Farm Bill and I expect to get one pretty quickly," he continued, "and I look forward to signing it."

Bush went on to tell the assembled group he considered value-added processing to be an important part of the nation's agriculture. "I believe
in ethanol," he said. "I believe ethanol is good for the quality of the air. I believe ethanol is important for the agricultural sector of our economy. I think it makes sense."

NCGA President and Walsh, Colo., corn grower Tim Hume said NCGA members and the nation's corn growers should have a positive outlook based on President Bush's speech. "The president is supporting our views and that can only be positive," said Hume. "He understands the importance of the Farm Bill and he also understands the importance of making ethanol use in this country more accepted."

Bill Horan, a member of the NCGA Corn Board and Rockwell City, Iowa, grower said, "The proposals President Bush made (Friday) are the kind that will affect my family and my neighbors. This is a step in the right direction, not just for Iowa corn growers, but for the 300,000 growers across the nation."

NCGA Future Ag Task Force Shows Corn Growers How to Face Challenges of 21st Century Ag

Last year, NCGA organized the Future Structure of Agriculture Task Force to study the possible decline of farming communities over the next 10 years. The results of that study were released at a discussion session during the 2002 Commodity Classic in Nashville, where Task Force Chairman and Rockwell City, Iowa, corn grower Bill Horan moderated a panel presentation called "Choices in the Evolution of Corn Belt Agriculture."

The session, attracting a packed house, detailed how mega trend changes will affect corn growers in the 21st century and outlined choices available to farmers. In part one of this two-part story, the challenges facing corn growers in the 21st century were addressed. In this final installment, some solutions are provided for today's growers to face those challenges. One example Horan gave during his presentation was the benefits of pharmaceutical farming. "It's a prime example of how high-value ag 'clusters' could form in rural areas," he said. "Pharmaceutical farmers can foresee multiple community spin-offs from the venture."

Horan cited certain types of biotech corn as an example of this. "One type that is currently under development in contained conditions can reduce the cost of a cystic fibrosis drug fourteen fold," he said. "The manufacturer of this medicine has said once it has been approved, thousands of acres of farmland will be needed and that benefits the farmer."

High-value food and feed contracts are another option for growers. "We've had a couple of things happen recently that increase the value of this
option," said Horan. "The aftermath of StarLink has triggered industry-wide efforts to improve outlets for identity-preserved grain. As a result of the attacks of Sept. 11, the U.S. is striving for a more secure domestic food supply and these contracts can help achieve that."

Finally, said Horan, closed-loop co-ops can bring back vertical integration to rural communities, which could be particularly helpful in the western grain states, which benefit from fewer processing options than states in the east.

For more information on this study, click here http://www.ncga.com/public_policy/PDF/Evolution-Final.pdf.

NCGA Addresses Antiquated River Systems During Production and Stewardship Action Team Meeting

With such topics as transportation, grain quality and water quality on the agenda, the NCGA Production and Stewardship Action Team gathered in Kansas City this week. One of the focal points of the three-day meeting was the seemingly never-ending battle to update the system of river transportation on the Upper Mississippi and Illinois Rivers.

In addition, the team toured facilities on the Missouri River to gain firsthand information on the impacts changes to the Missouri River
operations would have on the local economy.

Other topics on the agenda included economic analysis. Iowa farmer and former PSAT member Glen Moeller led a discussion about the grain markets and the current disconnect between corn supply and demand and corn prices. A presentation on water quality by NCGA Directors of Public Policy Keira Franz and Hayden Milberg, as well as various workshops.

Corn Growers Urged to Attend River Meetings

The NCGA is urging its members to attend a group of meetings set up to discuss issues affecting the Upper Mississippi and Illinois Rivers. The U.S. Army Corps of Engineers is hosting these meetings to explain the latest developments in the Navigation Study and to gain stakeholder input. The condition of the locks and dams on these rivers is an issue affecting all growers. It takes more time and more money for farmers to get their product to market because of the advanced age of the transportation system we're forced to use.

The Corps has been studying this issue for over nine years and NCGA said it is time for farmers and concerned citizens let them know that the long-term viability of midwestern agriculture relies on improving the locks. A complete list of meetings can be found in the Transportation of the NCGA web site: www.ncga.com.

Mr. Smith Goes to Vancouver to Spread the Word on Ethanol

Boyd Smith, the chairman of the NCGA's Ethanol Marketing Committee recently spoke on the growth of the ethanol industry at the Grain Elevator and Processing Society (GEAPS) 73rd Annual International Technical Conference and Exposition in Vancouver, British Columbia, Canada.

With oil production facing challenges and gas prices rising consumption of grain-based ethanol has been setting new records. The session Smith led helped explain some of the current trends, including the growth of production capacity and the emergence of new markets.

While at the convention, Smith used the opportunity to spread NCGA's message the "Big Rocks" (Ethanol, Research, Farm Bill, Trade, Transportation, and Biotech), as well as giving a history of both ethanol and NCGA's Ethanol Marketing Committee.

The Exchange is both a technical conference and an exposition. The technical conference will include 20 or more educational sessions of interest to grain-operations professionals. The exposition is for companies in the grain industry - or suppliers to it -- to showcase their products and services.

Nebraska's Hutchens Spreads NCGA Message of Biotech Benefits to APEC Audience

The NCGA has long been a proponent of biotech education through sound-science. To further this mission, NCGA and the U.S. Grains Council recently sent Biotech Working Group (BWG) member and Nebraska Corn Board Executive Director Don Hutchens to the Asia-Pacific Economic Cooperation (APEC) Conference in Mexico City, Mexico to promote biotech.

APEC consists of 21 Pacific-Rim countries interested in open trade and economic cooperation. It was established in 1989 in response to the growing interdependence among Asia-Pacific economies. Begun as an informal dialogue group, APEC has since become the primary regional vehicle for promoting open trade and practical economic cooperation. Its goal is to advance Asia-Pacific economic dynamism and sense of community.

During Hutchens' presentation, he promoted the use of Bt (bacillus theringiensis) corn. "It is estimated that since we have started using Bt
corn in the U.S.," he said, "we have reduced by a third the area treated for European Corn Borer. Nebraska and the U.S. have used biotechnology to our advantage, I believe we have reduced our use of pesticides, enhanced our production capabilities and provided our customers a better product, because of the responsible use of biotechnology."

He went on to say one of the great things about biotech is grower choice. "Not every corn farmer is going to use Bt corn, that's the good thing about biotechnology, some will use it and some won't, it's about having a choice." Hutchens went on to explain his reasons for using biotech and said growers should have all the facts before making a decision. "I believe this new generation of farmers understand that it's about sound science, environmentalism, taking care of business, eliminating risk factors, delivering the highest quality product, staying competitive, and growing food and fiber for a growing population, hopefully at a profit," he said.

DID YOU KNOW??

http://www.ncga.com offers up-to-date Ag News, Weather and Market information.

Customize weather information to your local area. Check it out!

PLA Hits the Mainstream Monday Night on QVC

The corn-derived fiber known as PLA made its debut to the nation's consumers Monday night at 6:00 pm (CDT) as QVC will feature bedding products made with PLA fibers. The products have cotton covers and 100% PLA fiber filling and are among the first products to hit the market in the U.S. since the Cargill Dow PLA plant began production in Blair, Neb., this winter.

From the QVC web site:
Sealy ® NatureWorkstm
Get a good night's sleep, naturally, with the help of Sealy® NatureWorkstm pillows, mattress pads, comforters and more filled with a revolutionary, all-natural, hypo-allergenic fiber from the world's largest bedding manufacturer. Derived from corn, the NatureWorks fiber offers the comfortable, lofty support of traditional polyfill, yet it's completely natural, requires less energy to produce and is completely biodegradable. It's the natural solution to a great night's sleep, only from Sealy. The products are still available for purchase at their website, www.qvc.com <http://www.qvc.com>.

NCGA THIS WEEK

• March 11 NCGA President-Elect Fred Yoder and CEO Rick Tolman will be in Des Moines, Iowa, to meet with the Iowa Corn Promotion Board
• March 13-15 NCGA Vice President of Operations Mike Rohan, Director of Business Development Rene Shunk, Director of Research and Plant Biology Richard Glass, Director of Public Policy Hayden Milberg and Livestock Information and Programs Manager Tracy Snider will attend the Customer Service and Business Development Action Team meeting in Golden, Colo.
• March 14-15 NCGA Director of Development Tom Slunecka will attend the Biotech Working Group meeting in Washington, D.C.
  

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE