IN THIS ISSUE:

• NCGA Corn Congress Ratifies Election of Vaughan, Elects Corn Board Members
• NCGA Action Team Members Roll Up Their Sleeves at Two-Day Meeting
• NCGA Farm Bill Implementation Meetings Providing Assistance to Growers
• Unity of Purpose Stressed at Corn Congress
• Capitol Hill Visits Right Time for Growers to Urge Passage of Energy Bill
• Ambassador Johnson Conveys Bush's Priorities on Ag Trade Issues
• Victories Highlight NCGA Third Quarter
• NCGA to be Represented at AgriTalk's Ethanol Pump Tour
• Corn Congress Delegates Indicate Weather Will Likely Leave them High and Dry
• Leader Resource Center is the Online Resource for NCGA Grower Members

NCGA Corn Congress Ratifies Election of Vaughan, Elects Corn Board Members
NCGA Corn Congress got under way in Washington, D.C., July 22 with the ratification of Dee Vaughan, a farmer for 25 years, as its president-elect. Vaughan, a grower from Dumas, Texas, will serve as president elect for the 2002-2003 fiscal year, which begins Oct. 1. In addition, 117 delegates from 26 member states elected five growers to serve on the Corn Board. Those five growers are Ron Olson, Waubay, S.D., Kyle Phillips, Knoxville, Iowa; Ken McCauley, White Cloud, Kan.; Scott Wall, Yuma, Col.; and Cal Dalton, Pardeeville, Wis. All but Dalton, who will fill Vaughan's remaining one-year term, will serve on the board for three years. Vaughan, an NCGA member since 1988 and an active member since 1996, said he is grateful to help make a difference in the organization. "We are very effective on a wide range of issues from farm bill to biotechnology and ethanol, to name three," he said. He reminded members that although growers and NCGA have been criticized for achievements on the farm bill and ethanol, the organization remains steadfast in its goals. "We are unified in our purpose; we are quite capable in achieving our goals," Vaughan said. "They [agriculture adversaries] will resort to fabrication and misinformation in their efforts to stop us. In this regard we should take their attacks as a compliment."

NCGA Action Team Members Roll Up Their Sleeves at Two-Day Meeting
Members of the NCGA action teams met in Washington, D.C., July 20 and 21 to review progress on the association's six key issues affecting the 32,000 grower-members. Teams gathered on the eve of semi-annual NCGA Corn Congress and discussed public policy, grower services, production and stewardship, research and business development, biotechnology and ethanol-often referred to as the association's "six big rocks."

"The strength of this association is in its members and we are fortunate to have such an active group," said Tim Hume, NCGA president. "These meetings tap in to the knowledge base of the growers and also give them the opportunity to become involved in NCGA initiatives." More than 100 growers participated in the action team meetings. Ethanol, building membership, and opportunities for new corn uses and value-added products were among the topics discussed. Many teams hosted speakers who provided background information and illustrated key topics. For example, Dr. Art Barnaby, from Kansas State University, gave a presentation on crop insurance to the Public Policy Action Team. "What results from the action team meetings are agendas that guide the association in the short term and fulfill its mission in the long term," Hume said.

NCGA Farm Bill Implementation Meetings Providing Assistance to Growers
NCGA has teamed up with the state corn grower associations and checkoff boards to bring the latest information to producers interested in learning more about the changes in USDA farm and conservation programs. Meetings have been held in Texas and Illinois, averaging more than 70 growers per meeting in both states.

"This has been a great education process," said NCGA Director of Public Policy Sam Willett, "not just for the growers, but for NCGA and the state organizations as well. It helps the growers understand their options in a very complex farm bill and it helps us understand the range of questions producers have about farm bill implementation." Dr. Art Barnaby, a professor at Kansas State University's Department of Agricultural Economics, has delivered key information on market strategies, target prices, loan rates, and fixed payments at the meetings. Barnaby's portion of the program has been beneficial to those seeking solutions to help manage the bill's changes and additions in an economically and positive way.

Garry Niemeyer, a grower from Glenarm, Ill., attended the Illinois meetings said the program has opened the eyes of the producers in attendance. "One of the most common things I've heard is, 'So that's how it's done,'" he said. "I think it's a necessary program because it's a complicated farm bill," Niemeyer continued. "It's a situation where a lot of these people are going to have to hear the message several times. These meetings are good in that the grower gets the information and then, when other commodity groups like the Farm Service Agency (FSA) hold their own implementation meetings, the grower will have specific questions in mind to ask. "Our meetings provide the general information and background for the growers to be able to get the specific information they need." For more information on the meetings and their locations, visit the NCGA web site.

Unity of Purpose Stressed at Corn Congress
Tim Hume passed the gavel of the NCGA presidency to Fred Yoder July 23, officially ending his term as president of the 32,000 grower-member organization. The action not only marked the shift in leadership - Hume now becomes chairman of the NCGA board of directors - it marked the closing of the two-day Corn Congress in Washington, D.C. In his closing remarks, Hume recognized several growers, including Lee Klein who served as chairman this past year; Greg Guenther, an Illinois grower, who did not seek re-election to the Corn Board and has been involved on the national level for 12 years; and Richard Peterson, a Minnesota grower, active on the Corn Board for seven years.

Throughout the Congress, leaders and delegates discussed the strength of NCGA as a unified organization. "Three of our six rocks have had major victories this year," said Klein, referring to the passage of the farm bill, and the trade protection authority (TPA) and the Senate energy bill moving to conferences. "It is through our unity willingness to work together that we have been able to achieve this." Delegates elected five members to the Corn Board, including Ron Olson, South Dakota; Kyle Phillips, Iowa; Ken McCauley, Kansas; Scott Wall, Colorado; and Cal Dalton, Wisconsin.

Guest speakers offered a Washington perspective on legislative issues affecting growers. Ambassador Allen Johnson, chief agriculture negotiator for the Office of the U.S. Trade Representative, talked about World Trade Organization negotiations and trade TPA; and Candida Wolff, assistant to vice president Dick Cheney for legislative affairs, gave insight into the Senate energy bill conference, urging members to contact their congressmen and push for passage of an energy bill containing a Renewable Fuels Standard.

Capitol Hill Visits Right Time for Growers to Urge Passage of Energy Bill
The Senate energy bill is in conference, making it the ideal time for corn growers embarking on Capitol Hill visits to urge the conferees to pass energy legislation that contains a Renewable Fuels Standard (RFS). That was the advice Candida Wolff, assistant to the vice president of legislative affairs, gave growers attending the NCGA Corn Congress July 22. The two-day meeting in Washington, D.C., included July 23 with visits to Capitol Hill.

Wolff told growers during a luncheon presentation that conferees are expected to act on several actions before they break in August, and Energy Conference Chairman Billy Tauzin wants the conferees to meet during the break. "There should be an agreement by the conferees on 12 to 25 items this week. There will be small progress but this will keep the bill moving," she said.

"Trade, energy and appropriations are three issues that will have big play in September; I'm optimistic that the [Senate energy] bill containing an RFS will get done," Wolff added. "At the end of the day, it's what's keeping the bill moving." However, with so many issues affecting Congress, such as homeland security, for example, staying focused may be difficult for conferees. "Your help is needed in make sure Congress stays focused," Wolff said, adding that visits to the Hill should include urging members to pass the bill before the October adjournment, as well as writing letters supporting the bill and its RFS provision.

Ambassador Johnson Conveys Bush's Priorities on Ag Trade Issues
Ambassador Allen Johnson, chief agriculture negotiator for the Office of the United States Trade Representative, told corn growers assembled at Corn Congress July 22 that President George W. Bush is committed to agriculture trade issues and World Trade Organization [WTO] negotiations. Growers have convened in Washington, D.C., for the semi-annual meeting of the National Corn Growers Association.

"The message is clear from the president, secretary [of agriculture] Veneman and [U.S. Trade Representative] Robert Zoellick that ag trade issues are a priority," Johnson said. "President Bush has weighed in on the issues, including the Russian poultry ban, China's involvement in the WTO and the WTO round in Doha; it's clear he's engaged in trade ag." Johnson stressed that the administration appreciates the efforts of corn growers and agriculture on behalf of trade promotion authority (TPA). "We are working hard for you and you are working hard on TPA; this shows that we're all committed to the objectives." Johnson added that it's a priority in WTO negotiations that trade practices are addressed in a comprehensive, meaningful way.

"As we approach market access and domestic support, we want to make it clear that we are talking about a package," Johnson said, adding the export subsidies, trade barriers and trade distorting export support are issues that must be address by the WTO collectively. "We think this [position] is the best interest of the global community, it's not just in the best interest of the United States."

Victories Highlight NCGA Third Quarter
The NCGA third quarter was marked with legislative victories and industry cooperation under our "Big Rocks." Of NCGA's six "Big Rocks," three -- ethanol, trade, and farm bill -- have seen prominent bills passed by Congress. NCGA Chief Executive Officer Rick Tolman said the recent victories enjoyed by the 32,000-member organization are only the beginning.

"It's been an amazing quarter for every one of our Rocks," he said. "Just look at what's been accomplished. The Senate passed a national energy bill that included a renewable fuels standard (RFS), ensuring ethanol use in this country will increase significantly over the next 10 years. The bill is in conference and represents the single biggest opportunity we have this decade to make the switch to cleaner-burning ethanol.

"Another big event for us this quarter on the ethanol front," continued Tolman, "was our third 'So You Want To Build An Ethanol Plant' seminar, this time in California, which has been considered as enemy territory in the past. The Nebraska Corn Board provided invaluable assistance and it was successful. More importantly, it was the people of California who wanted that information. I consider that a victory."

The long sought-after Trade Promotion Authority (TPA) is also in conference. This legislation is important to corn growers because it would allow for the consideration of negotiated trade agreements. With the passage of TPA, farmers and ranchers should be able to take advantage of export markets. "Getting TPA passed was a long, hard battle," said Tolman, "but we were there when we needed to be. We've still got a long road ahead, but we're on the right track." The farm bill was the third bill passed by Congress that made a big impact on the nation's corn growers when the sometimes-controversial bill was signed by President George W. Bush May 13. NCGA is working with several other commodity groups to iron out the kinks in implementation by creating a marketing plan to highlight the benefits of the farm bill.

"We've seen a lot of negative feedback from the media in regards to the farm bill," Tolman said. "There's a misperception out there that farmers are living high on the hog at the federal subsidy trough and that simply isn't true. 2001 represented the lowest real net cash income to farmers since the Great Depression and this year was the fifth straight year of record low prices for many commodities, including corn. "We're working to get the message out there that this isn't agricultural welfare," he said. "The farm bill was just and it was fair and we need to get that word out there."

Biotechnology continued to see attacks, usually from the European Union, but NCGA has soldiered on with its message of sound-science with programs such as Know Before You Grow and fact-finding missions to Europe, with the help of allies such as the U.S. Grains Council.

"Grains Council has been a great partner in the fight for biotech acceptance," said Tolman. "Thanks to their expertise in international relations, we were able to conduct high-level dialogue with many European consumers, producers, and government officials and we're seeing some success from those talks. We're teaming up with Grains Council again in September for the World Corn Congress in France, and we're expecting to continue our positive achievements in the field of biotech."

Tolman also discussed partnerships between NCGA and the corporate world in relation to product approval. "A perfect example this year is Dow and Pioneer and Monsanto following NCGA's new product implementation policy and waiting for Japanese approval before the commercialization of products like Herculex I and root worm in the U.S.," he said. "This was a sacrifice for them in the short term, but of tremendous value in protecting farmers and farmer interests. They and we recognize by working in coordination we will all win. That gives our policies legitimacy in the realm of industry. Companies see the value in partnering with us and that gives them additional incentive to follow our policies."

NCGA research saw a big payoff in the third quarter with the commercialization of PLA (polylactide acid) and the grand opening of the first PLA plant, in Blair, Neb. The NCGA research staff grew with the additions of Dr. Richard Glass, who was named Director of Research and Development and was quickly promoted to Vice President of Research and Development, and Nathan Danielson, who was hired as Research and Development manager.

The sixth Big Rock, transportation, saw its share of achievement in the third quarter, when the Army Corps of Engineers could find no clear-cut benefit in creating a spring-rise situation on the Missouri River. A spring-rise would create possible flooding in spring and a severe drop in the water levels during the summer, making navigation next to impossible. Due to the Corps' findings, President Bush put the spring-rise plan on hold indefinitely.

"We saw what happened this spring in the Midwest without a spring-rise," said Tolman. "With the severe flooding in that region, a spring-rise situation put on top of would have disastrous results. The environmental groups can say how easy it is to create the situation, but they don't talk about the fact it's impossible to pull it back when it fails."

The successful quarter was due to the efforts of staff and growers alike. "Without the help of an extremely competent staff and our hard-working growers who went beyond the call of duty in giving up time and continually contacting their elected officials on the issues affecting them, we would not be where we are now."

The tireless efforts of the third quarter lay groundwork for the final quarter of this fiscal year. The organization looks with optimism to ending the year with an energy legislation that includes renewable fuels provisions, greater advantages in export markets and continued new uses for corn.

NCGA to be Represented at AgriTalk's Ethanol Pump Tour
Ethanol has taken some hard knocks in the media lately, fueled by those with their own agenda. To combat the anti-ethanol blitz, AgriTalk radio has teamed up with the National Corn Growers Association (NCGA) to promote the "AgriTalk Ethanol Pump Tour 2002." The first stop on the five-month tour is July 27 in Corning, Iowa. AgriTalk host Mike Adams will broadcast and pump gas from the Farmer's Service Co-op station in Corning, 306 Sixth St., from 10 a.m. to 1 p.m. The theme for the event is "AgriTalk on your radio - Ethanol in my tank!" Iowa Corn Promotion Board Director of Market Development Lucy Norton said Iowa corn growers are excited about the event.

"It provides Iowa producers and NCGA the ability to face the consumers and give them the facts concerning ethanol," she said. "Iowa is proud to be the first stop on the tour, and we're proud to be able to have a national forum in which to display our support for cleaner-burning, environmentally friendly ethanol."

AgriTalk and representatives of the host state corn grower associations will distribute literature and other materials promoting the benefits of ethanol while pumping gas (gas with ethanol added, of course) for customers in Midwest states over the next five months. AgriTalk will also be handing out T-shirts with the tour theme on the front and NCGA's logo on the sleeve.

Corn Congress Delegates Indicate Weather Will Likely Leave them High and Dry
An overwhelming majority of delegates attending the NCGA Corn Congress in Washington, D.C., this week indicate extremely dry weather conditions in many areas of the country will have a serious impact on their corn crops. A total of 116, or 98 percent, of the 118 delegates responded to the informal NCGA survey. When asked if, based on crop conditions and compared to 2001, corn production in their areas would be the same, up or down, 78 percent responded they expect to produce less corn. The average anticipated production drop was 24 percent. A small number, just 9 percent, said they expected production to be up an average of 15 percent. Thirteen percent said they expected production in their areas this year to be about the same as last.

The results indicated that much drier conditions have had a significant impact on growing conditions, which 74 percent of the Corn Congress respondents said are worse in their areas. Sixteen percent said growing conditions are better, and 10 percent said they were about the same as in 2001. Eighty-four percent reported the conditions are worse because of the extremely hot, dry weather. Nine percent said weather conditions were wetter and 7 percent noted no significant change. "These results are very distressing," said NCGA President Tim Hume, who said he has personally experienced the hottest, driest conditions in memory on his farm in Walsh, Colo. "This informal NCGA survey is in line with news reports and USDA projections which paint a dim picture for corn growers - and agriculture in general - for 2002."

Leader Resource Center is the Online Resource for NCGA Grower Members
NCGA grower members can find the latest information on the issues affecting them, both on the local level and all the way to Capitol Hill and beyond at the Leader Resource Center at www.insidencga.com. Whether it's the latest information on what is being done to modernize the antiquated lock-and-dam system on the Upper Mississippi and Illinois Rivers to what is being done to promote ethanol and its co-products, it can be found at the LRC. For those grower leaders who have access to this invaluable tool, the benefits of the online resource include:

• Agendas, meeting reports, reference material, and talking points
• Learn about upcoming national and state events
• Discuss issues with team members by e-mail
• Daily updates

For more information on the Leader Resource Center and what it provides, send your questions to: membership@ncga.com.

NCGA THIS WEEK

• July 29-30 NCGA Chairman Lee Klein, President Tim Hume, President-Elect Fred Yoder, Corn Board member Dee Vaughan, CEO Rick Tolman, and Director of Public Policy Keira Franz will be in San Francisco, for the U.S. Grains Council's Board of Directors meeting
• July 31 NCGA Livestock Programs and Information Manager Tracy Snider will meet with representatives of the National Cattlemen and Beef Association in St. Louis
  

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE