IN THIS ISSUE:

• Texas Slates Open Farm Bill Sessions for July 15-16
• NCGA Disappointed with European Parliament's Vote Against Biotech
• NCGA Applauds Report on Biotech's Impact to Environment
• USDA Announces Expansion of CRP Emergency Haying and Grazing Program for Weather-Stricken States
• NCGA Displeased with Missouri River Hearing Results
• NCGA: Weather a Factor Not Considered in USDA's Latest Report
• NCGA's Vaughan, Tolman Discuss Issues with Georgia Corn Growers
• NCGA Sees Benefits With New EU Farm Policy
• NCGA's Snider Continues Co-Product Promotion in Midwest
• Dry Conditions Provide Stress to Growers in the Heartland
• NCGA Corn Congress Kicks Off Next Week

Texas Slates Open Farm Bill Sessions for July 15-16

The farm bill has been signed, sealed and delivered and now it's time to learn how to utilize the many provisions of the new legislation.

The NCGA, the Texas Corn Producers Board (TCPB) and the Corn Producers Association of Texas (CPAT) have organized two educational sessions to guide producers and others involved in agriculturally related businesses as they discover ways to adapt to the changes. These are the first of several farm bill meetings the NCGA is coordinating with a number of states. For a list of dates and locations of the meetings, visit the NCGA website at <http://www.ncga.com/farmbill/main/mtg_dates.htm>.

The first meeting will be Monday, July 15, in Waco at the Texas Rangers Hall of Fame Museum at I-35 and the Brazos River. The second session is set for Dalhart at the Dalhart Rita Blanca Coliseum on Tuesday, July 16. Both conferences are free of charge and will be held from 10 a.m. to 3 p.m. with lunch available. Representatives from USDA, the Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS), Kansas State University's Department of Agriculture Economics and NCGA will be on hand to provide growers essential information for their operation.

"The farm bill's commitment to renewable fuel programs is gaining significant attention across the nation," said NCGA President Tim Hume. "New energy provisions will be one of the topics addressed at these meetings and an update on the federal energy bill that is now in conference will also be discussed."

"They will explain the implementation time set by USDA and provide any new information that may be available on sign-up dates and procedures," said CPAT President Carl Hensz.

Dr. Art Barnaby of Kansas State University's Department of Agricultural Economics will deliver key information on market strategies, target prices, loan rates, and fixed payments. "This portion of the program will be very beneficial to those seeking solutions to help manage the bill's changes and additions in an economically and positive way," said Hume.

Hume and NCGA President-Elect designate Dee Vaughan will present their view on what the new bill offers the nation's corn growers.

"We will discuss aspects of the new bill and how NCGA resources, such as our farm bill calculator, that can help corn producers adapt to the 2002 Farm Bill," said Vaughan, a grower from Dumas, Texas.
For more information on these programs, contact the TCPB and CPAT office at 1-800-647-2676 or visit them on the web at www.texascorn.org <http://www.texascorn.org>.

NCGA Disappointed with European Parliament's Vote Against Biotech

The European Parliament dealt a blow to U.S. agricultural interests last week with a significant majority voting to enact stricter traceability and labeling laws biotechnology-derived food and feed products in Europe. NCGA Biotech Working Group Chairman Leon Corzine said NCGA is very disappointed.
"This is very unfortunate and a sign the extremist groups still have control of the European Parliament," the Assumption, Ill., corn grower said.

Requirements for traceability and food and feed products originated from biotechnology are as follows:
When placing a product on the market, including bulk commodities, operators will have to ensure the following information is accessible:

1. whether it consists of or contains biotech, and
2. the relevant unique codes assigned to the biotech product

A threshold of 0.5 percent is to be provided for in the traceability proposal for legislation approved in the EU only.

According to the vote, there is no provision for legislation pending in the EU or for legislation already approved in third countries.

Corzine said a verifiable system is needed with reasonable tolerances to maintain credibility. "This will aid consumers and not confuse them," he explained. "Unfortunately the European consumer is being denied access to our higher value products. Europe must get their regulatory process working or the rest of the world will leave them behind."

The European Council of Ministers will now tackle the issue and give their opinion, taking into account the Parliamentary vote.

NCGA Applauds Report on Biotech's Impact to Environment

The NCGA applauds a report from the Council for Agricultural Science and Technology (CAST), detailing the environmental safety and environmental benefits of commercial biotechnology-derived corn, soy and cotton crops. CAST is a non-profit consortium of scientists.

Three independent teams of CAST researchers reviewed available scientific literature to compare the environmental impacts of biotech and traditional crops. The researchers are affiliated with Washington State University, the University of Illinois, Clemson University and the National Center for Food and Agricultural Policy.

Corn was a more complicated crop to review because of the different types of biotech corn available -- Bt corn to control insects, herbicide-resistant hydrids, and hybrids used for animal feed and human food.

"Definitely, Bt corn has reduced pesticide use," said David Onstad from the University of Illinois, who prepared the corn portion of the report. "And there was no evidence that non-target species are affected, in a negative way, by biotechnology-derived hybrids. There was no evidence that these hybrids have or will become off-site weeds either.

"Also," continued Onstad, "we expect that human exposure to toxins has been reduced by the use of biotechnology-derived corn hybrids -- both toxins from chemical pesticides as well as naturally occurring toxins such as aflatoxin."

Although there have been positive environmental impacts from biotechnology-derived corn, corn growers need to continue to monitor present and future biotechnology-derived crops with responsible insect-resistance management (IRM) and programs such as NCGA's "Know Before You Grow."

USDA Announces Expansion of CRP Emergency Haying and Grazing Program for Weather-Stricken States

Agriculture Secretary Ann Veneman Thursday approved 18 states for Conservation Reserve Program emergency haying and grazing, making all CRP participants in these states basically eligible for this emergency measure. Veneman also said USDA will waive rental reduction fees to encourage donation of hay to farmers and ranchers in immediate need.

The 18 approved states are: Arizona, Colorado, Georgia, Idaho, Kansas, Minnesota, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, Virginia and Wyoming. State Farm Service Agency committees may limit the area within the states if conditions do not warrant haying and grazing in all areas.

USDA previously authorized counties in states most stricken by severe weather conditions to be considered for haying and grazing, but approval was on a county-by-county basis. Since May, more than 300 counties in 15 states have been approved for haying and/or grazing. Today's announcement makes CRP participants statewide in the 18 states eligible if the state committee determines conditions warrant release without waiting for county approval.

CRP participants must submit applications for individual approval to their local FSA offices. Haying and grazing is authorized until Aug. 31, or until disaster conditions no longer exist, whichever comes first. Land devoted to certain special practices will not be eligible for haying and grazing because of environmental considerations.

CRP participants who are unaffected by disasters or do not own or lease livestock can make their CRP acreage available for grazing or can donate hay to those in need. USDA has developed a website for producers to list information concerning the need for available hay. The website address is: <http://www.fsa.usda.gov/haynet/>.

CRP annual rental payments will be reduced 25 percent to account for the areas hayed or grazed unless the hay is donated. At least 50 percent of the CRP acreage must be left unhayed and 25 percent left ungrazed. Hay harvested from CRP acreage may not be sold.

CRP offers annual rental payments and cost-share assistance to establish long-term, resource-conserving cover on eligible land. USDA will monitor producers and regulate approvals to ensure the land is safely hayed and grazed without damaging conservation covers.

NCGA Displeased with Missouri River Hearing Results

The NCGA is very disappointed with the results of a hearing conducted by the Senate Energy and Natural Resources Subcommittee on Water and Power to examine federal plans to manage the Missouri River. Sen. Byron Dorgan (D-ND) chaired the hearing, focusing on the ongoing debate between the upper and lower basin states and the informal consultation process between the Army Corps of Engineers and Fish and Wildlife Service (FWS).

The FWS told the corps recently not to move the nests and chicks of the threatened piping plover and the endangered least tern. While eggs of the birds usually survive a move, newborn chicks frequently perish.

Sens. Tom Daschle (D-SD), Tim Johnson (D-SD), Kit Bond (R-MO) and Jean Carnahan (D-MO) testified on the first of three panels during the hearing. Sens. Daschle and Johnson lambasted the Corps and the Bush administration for "squandering management of the river and violating the public trust." Daschle characterized federal management of the river as benefiting a tiny barge industry at the expense of South Dakotans and turning one of the greatest rivers in the world into a "drainage ditch."

Bond defended management of the river and criticized the power wielded by "unelected bureaucrats." Bond was particularly critical regarding the decision by FWS not allowing the Corps to move bird nests to accommodate additional water releases from Gavins Point Dam.

The subcommittee also heard from administration officials representing the Corps of Engineers, Fish and Wildlife Service, the USDA and the Bureau of Reclamation (BoR). Bill Hawks, undersecretary for Marketing and Regulatory Programs, spoke on behalf of USDA and vigorously defended the inland waterway system. In doing so, he cited the importance of barge traffic to domestic agriculture and the integral role it plays moving bulk commodities to export markets.

The final panel included representatives from the Missouri Department of Natural Resources, North Dakota State Water Commission, the South Dakota Department of Fish, Game and Parks and Three Affiliated Tribes.

NCGA: Weather a Factor Not Considered in USDA's Latest Report

In the latest crop report issued by the U.S. Department of Agriculture (USDA), higher corn acreage is expected this growing season. This does not, however, take into account the heat wave currently pounding the Midwest, said NCGA Director of Production and Marketing Paul Bertels.

"The USDA report states this year's corn acreage planted is up 4 percent over last year," he said, "and estimated acreage harvested is up almost 5 percent. But higher acreage doesn't necessarily equate to higher production. USDA hasn't taken into account the weather we've seen so far this year."

Across the nation this season weather has run the gamut of extremes. The season started with floods in the Midwest. Now that region is suffering through a dry spell that does not appear to be ending anytime soon. Dry weather has been the hallmark in Colorado and recent wildfires haven't helped the situation, and the state of Texas is only now starting to recover from floods resulting from 30 inches of rain falling over a five-day span.

Bertels said if one takes into account a minor adjustment in average yields, considering possible damage brought by weather, the size of the crop changes dramatically. "For example, if you use last year's yield average of 138 bushels per acre, we could see a 9.96 billion bushel crop. When added to this year's carry-out of 1.7 billion bushels, that gives us a supply of 11.6 billion bushels.

"But," he continued, "if you factor in the weather, you're obviously going to see a lower yield. If we take the five-year average yields and reduce them by a modest 5 percent, the national average drops to 127 bushels per acre, which would drop production to 9.2 billion bushels."

Although it is still too early to accurately project yields, Bertels said farmers and the market need to begin to look critically at the 2002 crop. "Even relatively small deviations in average yields can have a tremendous impact of total supply and, ultimately, corn prices."

NCGA's Vaughan, Tolman Discuss Issues with Georgia Corn Growers

NCGA Corn Board member Dee Vaughan and CEO Rick Tolman visited representatives from the Georgia Corn Producers July 2 to discuss issues facing the Peach State.

"Georgia has lost some corn acreage in recent years," said Tolman. "Corn is a rotational crop and has importance second to cotton and peanuts. They have lost much of their swine industry and the poultry industry is consolidating, so this has hurt local markets. This is an issue no different than we face in many other states and on a national level, but it was important to hear and understand the Georgia perspective.

Tolman reported Georgia has an interest in NCGA's efforts in livestock industry promotion, ethanol promotion and rural development and specifically, NCGA's aflatoxin elimination work. "NCGA is co-sponsoring an aflatoxin elimination workshop with the Texas Corn Board in October and Georgia will be represented there with grower leaders as well as researchers from their university system" he said. "Georgia sometimes has outbreaks of aflatoxin but constantly faces perception problems and so it would be a big help to be able to address this issue."

Tolman said another reason for the trip was to strengthen the relationship between NCGA and Georgia. Georgia had not been very active in NCGA recently and has felt out of the loop. "Dee and I were on tap to make the case why they should stay on and they said they will," he said. "We spent time explaining what NCGA has been doing and what we are currently working and how that benefits them. They had a lot of good questions and we had a lot of good answers, so I think I can say things went very well."

NCGA Sees Benefits With New EU Farm Policy

NCGA CEO Rick Tolman said on the surface he was pleased, overall, with the recent European Union (EU) Common Agricultural Policy proposal reforms (CAP) that was unveiled on Wednesday.
Overall, the plan is designed:

• to cut the link between production and direct payments,
• to make those payments conditional to environmental, food safety, animal welfare and occupational safety standards,
• to substantially increase EU support for rural development via a modulation of direct payments with the exemption of small farmers,
• to introduce a new farm audit system,
• to create new rural development measures to boost quality production, food safety, animal welfare and to cover the costs of the farm audit.

“I can see merit in the proposals,” he said. “They propose to put more emphasis on value-added opportunities and rural development and a de-coupling of income support from crop production. If done as proposed, it would lead to less surplus production and dumping on the world market by the EU. Their past practices have been very trade distorting. Such a change would not only benefit farmers in the EU, but in this country as well.”

Tolman said the de-coupling could potentially prevent devaluing of corn on the world market by encouraging European growers to produce surplus crops that would take the place of corn as a feed stock, such as wheat and barley.

“The proposed change could break the cycle of crop incentives that cause surplus production, followed by subsidies that are needed to export that surplus production and thus distorting world trade,” continued Tolman. “This change in philosophy should also make the EU a more active and constructive player in the upcoming round of WTO talks instead of being forced into the role of obstructing change in order to defend policies that are not sustainable.”

NCGA's Snider Continues Co-Product Promotion in Midwest

Rock bands are well known for their lives on the road, journeying from town to town, spreading their message, spending months at a stretch on the nation's highways and byways. NCGA has its own road warrior, Livestock Information and Programs Manager Tracy Snider, who headed out to the Midwest once again, spreading the message of ethanol co-products.

Snider's first stop was Monroe, Wis., June 18 to participate in a tour of the Badger State Ethanol Plant, as well as attending the Wisconsin Corn Promotion Board Meeting. "I was invited to speak to the officers at the joint meeting of the Wisconsin Corn Promotion Board and Wisconsin Corn Growers Association," she said, "regarding the issue of distillers grains and the NCGA program on livestock." Wisconsin is a sponsor of the NCGA North Central Distillers Grain Conference in Prior Lake, Minn., Aug. 21-23.

They also sponsored Snider's second stop on the tour, a trip to the 4-State Professional Dairy Management Seminar in Dubuque, Iowa, to display an NCGA educational booth, which she set up and manned June 19-20 to discuss distillers grains use with nutritionists. Bob Kaiser of UW-Madison, Dairy Extension agent, and Sam Weinhold of ICM Marketing assisted with the booth by providing a bucket of wet distillers grains for nutritionists to smell, feel, and sample.

"We were met with a great response at this conference and nutritionists had many questions regarding the availability and quality of distillers grains," Snider said. "This conference was the perfect setting to promote distillers grains and what NCGA is doing in that arena. Many of the nutritionists I spoke with were very excited about the upcoming distillers grains conference and wanted more information."

Dry Conditions Provide Stress to Growers in the Heartland

Farming is not an exact science. Any number of things can happen to heavily reduce a grower's annual yield. Right now, corn producers in the Midwest are looking at an unforgiving heat wave that has some worried, like NCGA Corn Board member Ron Woollen.

"It's a real challenge to keep the irrigation running and getting to the corn quick enough with water," said the Wilcox, Neb., corn grower. "My dry land crops are really starting to show the effects and the irrigation corn I haven't gotten to yet are definitely moisture-stressed."

Woollen is one of many of the nation's farmers experiencing some hardship during this season due to the weather and said his yield may suffer from the lack of precipitation and the 100-plus degree heat. "I'm sure I've suffered some yield reduction on the non-watered corn," he said. "I'm hoping I can get water to it in the next few days."

Woollen said the last measurable precipitation was two inches of rain Memorial Day weekend during a 30-minute downpour that, while helping his no-till crops, probably did little to benefit his corn plants. And this week's outlook is still pretty bleak.

"It's going to be hot today and tomorrow," he said, "with a slight chance of precipitation on Wednesday. It's supposed to be a little cooler later in the week and anything under 100 degrees helps.

"The real challenge is going to come within the next week or so," Woollen continued. "The corn should start pollinating within the next few days and with the weather the way it is, we're just hoping it goes well."

Rodney Moe, a grower from Waltham, Minn., and a member of the Production and Stewardship Action Team, said while parts of Minnesota are actually seeing too much moisture, his area of the state is also seeing dry conditions.

"We've seen temperatures in the 90s for the last week and a half," he said. "We're starting to see some curling of the (corn) leaves and while we're not expecting much damage, if this keeps up another three or four days, we'll start seeing some."

Like Woollen, Moe said temperatures are expected to drop slightly over the next week, but no real relief is in sight.

NCGA Corn Congress Kicks Off Next Week

Over 125 of NCGA's grower leaders and delegates from 26 states will gather in our nation's capital next week for the July session of Corn Congress starting July 20. Agenda items include the election of Corn Board members, the ratification of the president-elect, meetings of the NCGA Action Teams, meeting with members of Congress, and voting on resolutions that affect the nation's corn growers.

Growers will also visit Capital Hill, where they will discuss issues important to corn growers with elected officials and staff.

Be sure to visit www.insidencga.com <http://www.insidencga.com> the week of July 22 to see highlights of the meetings as well as white papers to assist growers with the Hill visits.

NCGA THIS WEEK

• July 15 Jon Doggett assumes duties as NCGA Vice President of Public Policy
• July 15-16 A Commodity Classic Grower Committee meeting will be held in St. Louis
• July 19-23 NCGA Corn Congress in Washington, D.C.
  
  

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE