IN THIS ISSUE:

• NCGA Trade Priority in Jeopardy
• NCGA Signs Memorandum of Agreement With Taiwan
• NCGA Congratulates President Bush on Farm Bill Signing
• NCGA Growers Give Their Perspective on Newly Signed Farm Bill
• NCGA Seeks Action on Russian Poultry Ban
• NCGA Compiles Stats for EU Biotech Visit
• Experience a Plus for McCauley’s Run for NCGA Corn Board
  

EACH WEEK, CORN COMMENTARY WILL FEATURE PROFILES OF EACH OF THE PERSPECTIVE CORN BOARD MEMBERS SEEKING ELECTION DURING THIS SUMMER’S CORN CONGRESS. THE REMAINING SCHEDULE IS AS FOLLOWS:
MAY 17-KEN MCCAULEY
MAY 24-SCOTT WALL
MAY 31-CAL DALTON

NCGA Trade Priority in Jeopardy

The NCGA was troubled to see the Senate failed to table the Dayton-Craig Amendment (38-61) to the Trade Promotion Authority (TPA) bill. The amendment, offered by Sens. Mark Dayton (D-MN) and Larry E. Craig (R-ID), would alter the process of fast track consideration of trade agreements, and would seriously undermine the ability of U.S. negotiators to get a good deal for U.S. agriculture in the new round of the World Trade Organization (WTO) negotiations.

U.S. Department of Agriculture Secretary Ann Veneman, Secretary of Commerce Donald Evans and U.S. Trade Representative Robert Zoellick issued a statement they would recommend President Bush veto TPA legislation containing the provisions of the Dayton-Craig Amendment.

NCGA is asking the Senate to pass TPA without amendment and move to conference the House and Senate versions of TPA as soon as possible, as negotiations for the WTO Doha Round are already underway. Should the Dayton-Craig Amendment pass, it may end the ability to get a TPA bill signed into law this year.

Debate on TPA is likely to continue this week and several amendments will be brought up during the discussions.

NCGA strongly encourages its membership to contact their Senators to inform them not to approve any amendments to TPA. Growers can contact their elected officials by using the Legislative Action Center located at the NCGA website, www.ncga.com.

*****************************************************************
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 Signs Memorandum of Agreement With Taiwan

The NCGA was involved in the signing of a joint memorandum with agriculture representatives from Taiwan May 16. The joint communiqué, also signed by the American Soybean Association (ASA), will increase bilateral trade and investment between the United States and Taiwan, and will add momentum to U.S. free trade initiatives.

“Taiwan is an extremely important and loyal ally in the world market,” said Biotech Working Group Chairman and Assumption, Ill., corn grower Leon Corzine, who signed the agreement on behalf of the NCGA. “It is the third-largest international customer for corn and the second-largest customer of U.S. agriculture, and with this agreement, our relationship is only going to improve.”

The Taiwan Vegetable Oil Manufacturers’ Association and the Taiwan Feed Industry Association represented Taiwan at the signing. As part of the agreement, the two groups will purchase 9.6 million metric tons (between 276 to 378 million bushels) of U.S. corn, barley and sorghum between now and Dec. 31, 2003.

Corzine said there would be many benefits stemming from the agreement. “Taiwan is a very important market and U.S. corn growers want to continue to supply this market, and this agreement makes that commitment.

“This is big for U.S. growers,” concluded Corzine. “Despite Taiwan’s geographical size, it has a major, modern economy. This is a great situation for us.”

NCGA Congratulates President Bush on Farm Bill Signing

At 7:40 a.m. EDT Monday, President George W. Bush signed the 2002 Farm Bill into law. NCGA played an active role in the Farm Bill process and was pleased to see the president take quick action by signing this legislation.

"Success of farmers and ranchers is essential to success of the American economy," Bush said during the signing ceremony. "This bill is generous and provides a safety net for farmers. It will do so without encouraging overproduction and depressing prices."

The new Farm Bill will:

• Stem the tide of unbudgeted ad hoc assistance that has been required year after year, including over $30 billion over the last four years,
• Fully maintain the market-oriented features of the 1996 Farm Bill, having minimal impact on price and production according to economic analysis,
• Fully maintain the planting flexibility of the 1996 Farm Bill,
• Provide for the largest investment in conservation ever - fully 80 percent above the levels of the Boehlert conservation amendment to the 1996 Farm Bill, and
• Replace the 1996 Farm Bill that is set to expire on Sept. 30 of this year.

Conservation is a key part of the new bill. "The Conservation Security Program is a new national incentive payment program that rewards producers for maintaining and increasing farm and ranch stewardship practices," said NCGA Director of Public Policy Sam Willett. "The Farm Bill will invest $2 billion towards this program."

Also in the area of conservation, the 2002 Farm Bill will increase federal investment in soil and water programs by more than 80 percent above current programs levels. "This will provide growers with more options to implement progressive conservation practices on their land," said Willett, "with the backing of increased technical assistance to producers using government or private contractors."

He also pointed out the 2002 Farm Bill will make all the needed changes to the Conservation Reserve Program and the Environmental Quality Incentives Program to make them more usable and accessible to all producers in all regions of the country.

The Bill also contains a first-ever Energy Title that includes a continuation of the Commodity Credit Corporation Bioenergy program.

The Energy Title also reauthorizes the Biomass Research and Development Act of 2000 through fiscal year 2007 and will create a new program where federal agencies give preference to purchasing bio-based products, which should help energize emerging markets for these products.

Value-added market development grants have also been expanded to meet growers' interests in start-up, farmer-owned, value-added processing facilities while establishing resource centers to assist producers in value-added endeavors.

The new bill, according to a recent analysis by the Food and Agriculture Policy Research Institute, projects an increase in annual net farm income by an average of $3.8 billion. Conservation programs will contribute an estimated $0.7 billion per year.

NCGA Growers Give Their Perspective on Newly Signed Farm Bill

After several months of debate and negotiations, President George W. Bush finally had a Farm Bill in front of him to sign. He did, in fact, sign the bill into law May 13 and grower leaders from the NCGA were there to witness the fruition of months of hard work by the 32,000-member organization.

As he was signing the six-year legislation, Bush said he understood the plight of the American farmer. "I was honored to be the governor of the second-biggest farm state in the union," he said. "I understand how hard farmers have to work to make a living. I know they face tough challenges. I know how hard many struggle. Their livelihood depends on things they cannot control: the weather, crop disease, uncertain pricing. They need a farm bill that provides support and help when times are tough. And that is why I'm signing this bill today."

With the legislation finally in place, what does it mean for the nation's corn growers?

Steve Pigg, a corn grower from Bushnell, Ill., said, "It gives us a safety net and the ability to expand our markets, both nationally and internationally. It gives us the flexibility to plant what we want."

Pigg said he was pleased by the conservation wording of the legislation. The new Farm Bill increases soil and water conservation programs by more than 80 percent, providing growers with more options to implement progressive conservation practices on their land. "I'm very conservation-minded," said Pigg, "and I think the additional conservation spending in the bill will provide incentive for growers."

Loren Tusa, a grower farming out of Alpha, Minn., also said the Farm Bill is on the right track. "This is probably as good a Farm Bill as we could get. There were things in the Farm Bill I could have picked out," he said, "but you have to ask yourself, what do you want to give up somewhere else in the bill? Like NCGA, I applaud everyone involved and I am just glad to see it done."

NCGA Seeks Action on Russian Poultry Ban

The NCGA is concerned about the continued ban on U.S. poultry into Russia. According to NCGA Livestock Programs and Information Manager Tracy Snider, Russia formally lifted its ban on poultry but has yet to resume importation of U.S. poultry. The delay is causing a ripple effect in the profitability of U.S. agriculture, as chicken companies suffer losses due to depressed domestic prices and lost sales opportunities, which could negatively affect the portion of corn used as feed to domestically grown poultry, said Snider.

"Russia announced April 15 that it lifted the trade embargo on U.S. poultry," she said, "however, no U.S. poultry export shipments have moved since the ban was lifted." The poultry exported to Russia eat nearly 1 million tons of corn per year, which equates to 35.7 million bushels, or about 260,000 acres of corn.

The livestock and poultry sector represent the largest consumers of corn, consuming over 58 percent of the annual corn crop, she said. In the United States, poultry production represents 27.3 percent of all corn consumed by livestock, so it's not difficult to see why NCGA has a stake in this issue.

Snider said one of the sticking points for the resumption of normal trade with Russia is the Russian's view of biotech feeds. Provisions in the draft protocol asking for changes in the 1996 U.S.-Russia Veterinary Agreement on poultry seek a limitation on the use of feeds from genetically enhanced grains.
"NCGA supports the use of biotechnology to enhance modern crop production as it relates to human health, the environment, grain quality, and production benefits," Snider said.

"Numerous animal nutrition studies have been completed, both domestically and abroad," she concluded, "to examine the effects of genetic modification of crops on the livestock, which consume it, and they have found no negative responses in the animals fed corn and other crops that have been enhanced through biotechnology."

NCGA Compiles Stats for EU Biotech Visit

U.S. farmers are familiar with the benefits of biotechnology. However, agriculture representatives in the European Union (EU) are still not convinced. To this end, a group of Midwest Agriculture Department representatives, headed by Nebraska Governor Mike Johanns, are planning a trip to Europe to provide EU leaders facts and grower views on biotech.

The NCGA, in coordination with the U.S. Grains Council, has compiled a book of biotech stats for the U.S. contingent to share With the EU ag reps.

"This is an important trip for biotechnology," said NCGA Biotech Working Group Chairman and Assumption, Ill., corn grower Leon Corzine. "The group will discuss why biotech is important to U.S. farmers as well as discuss our safety and regulatory processes. Not only will this visit assist the Europeans with their own regulatory process, but it will benefit ag economy and trade."

Accompanying Johanns on the visit are: Illinois Director of Agriculture Joe Hampton; Illinois Environmental Protection Agency Director Renee Cipriano; Iowa Secretary of Agriculture Patty Judge; Missouri Deputy Director of Agriculture Peter Hofherr; Missouri Policy Advisor to the Governor Caleb Weaver; Nebraska Director of Agriculture Merlyn Carlson; and Ohio Director of Agriculture Fred Dailey.
NCGA advocates the continued availability of federally regulated and approved seed and crops produced through biotechnology. "NCGA supports the science-based regulatory process and stands behind the process that approves these new tools for agriculture and food production," said Corzine.

*****************************************************************
DID YOU KNOW??
http://www.ncga.com provides a complete guide to state web sites and contact information.
Click the drop-down listing on the front page to visit state web sites.
*****************************************************************

Experience a Plus for McCauley’s Run for NCGA Corn Board

To lead, one needs experience, and experience is something White Cloud, Kan., corn grower Ken McCauley has. McCauley hopes that experience is enough to be elected to the NCGA Corn Board this summer at Corn Congress in Washington, D.C.

“I would like to be on the Corn Board because I would like to represent corn growers,” he said, “and to represent the checkoff side of things within the board.”

McCauley farms 3,500 acres of corn and soybeans, all no-till. A farmer for 30 years, he is proud of the fact his corn goes to enhance value-added opportunities. “All the corn I produce, goes to Golden Triangle Energy, an ethanol plant in northwestern Missouri, and LifeLine Foods, a producer-owned corn mill,” he said.

McCauley is a past chairman of the Kansas Corn Commission and has been on the Kansas checkoff board for the six years. Within NCGA, he is currently the vice chairman of the Ethanol Committee, as well as a past member of the Research and Development Action Team, the Biotech Working Group, and the Ethanol Task Force.

“I’ve also been a Corn Congress delegate since its inception,” said McCauley, “so I have seen the process evolve into what it is now.”

Being a Corn Board member can be very time-consuming, but that’s not an issue for McCauley. “I’m used to spending time away from the farm with my work on the Ethanol Committee and the Research and Business Development Action Team,” he said. “I’m prepared to give the Corn Board the time needed to ensure we give proper representation to the nation’s corn growers.”

McCauley concluded by saying, “Being a part of those NCGA teams and being involved at the state-level has made me realize how important our organization is and I want to do whatever I’m needed to do to make sure it continues to be an important organization in representing the issues affecting corn growers.”

NCGA THIS WEEK

• May 22-23 NCGA staff will be involved in a two-day all-staff meeting in Chesterfield, Mo.
• May 22-24 NCGA Corn Board member John Tibbits will be in Tampa, Fla., attending the USMEF Board of Directors Meeting & International Buyer's Conference
• May 24 NCGA Vice President of Marketing Brian Stockman and Director of Development Tom Slunecka will attend a Commodity Classic Strategy meeting in St. Louis
  

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE