August
16 , 2002 * Volume 9 * Number 30
IN THIS ISSUE:
- NCGA Appoints
Disaster Task Force to Assist Growers on Options
- NCGA's Vaughan
Calls President's Economic Summit a Great Opportunity for Corn Growers
- NCGA, CRA Applaud
Senatorial Effort to Seek Solution to HFCS Issue
- NCGA Distillers
Grains Conference Sold Out
- Horan Puts NCGA
Face on HFCS Issue at Sugar Symposium
- NCGA Joins Illinois
Corn Growers on Lock-and-Dam Modernization Barge Tour
- NCGA Membership
Shows Growth in July
- NCGA on the Move,
Figuratively and Literally
- NCGA Reminds
Growers to Send in Action Team/Committee Applications
NCGA Appoints
Disaster Task Force to Assist Growers on Options
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It has been a tough year for farmers across the nation. Growers in Kansas
and South Dakota, for example, are seeing historically dry conditions,
whereas Minnesota and North Dakota producers are not only facing a drought,
in some parts of those states there is too much moisture. In an effort
to assist the nation's farmers, NCGA President Tim Hume has appointed
a Disaster Task Force.
NCGA's decision
to appoint the task force was the result of collaborative efforts between
NCGA and grower leaders from state corn grower and checkoff organizations.
The mission of the task force is:
- Make sure that
clear, timely and accurate information on the impact of the disaster
situation gets to policy-makers and program implementers
- Share information
between growers and states on assistance programs and options to assist
crop and livestock producers in responding to the disaster
- Set a course
of further action for NCGA with respect to disaster response.
Ron Litterer, vice
chair of the NCGA Public Policy Action Team, was appointed to chair
the task force. Other task force members are: Alan Peter, Tribune, Kan.;
Bernie Heier, Walton, Neb.; Darren Ihnen, Hurley, S.D.; Steve Pigg,
Bushnell, Ill.; Michael Aylesworth, Hebron, Ind.; Dee Vaughan, Dumas,
Texas; Brent Rockhold, Arbela, Mo.; and Sam Willett, NCGA director of
public policy.
Litterer, a Greene,
Iowa, grower, said the task force will analyze the effects the severe
weather conditions will have on growers. "The farm bill provides
growers with monetary protection and crop insurance provides protection
on the production side," he said, "but we need to see if the
level of protection and coverage is adequate. We need to also recognize,
this isn't just a corn grower issue. This also affects our number-one
customer, the livestock industry."
Litterer said the
disaster is affecting farmers and livestock producers throughout the
country. "It's important to recognize, as USDA has, this is an
issue causing problems all over the United States," he said.
The long-term effects
of the severe weather conditions are apparent in the USDA crop production
report released Aug. 12, projecting a 8.89 billion bushel corn crop.
This represents a seven-percent drop from last year and 10 percent from
2000. If the USDA's projections are realized, this would be the lowest
production year since 1995.
Based on conditions
as of Aug. 1, national yields are expected to average 125.2 bushels
per acre, down 13.0 bushels from last year. Yields are mostly lower
than 2001 across much of the United States as wet weather during planting
caused delays in the eastern Corn Belt. Also, according to USDA, persistent
hot, dry weather has stunted growth and limited yield potential over
many acres of the United States. Farmers expect to harvest 71 million
acres of corn for grain, down 1.08 million acres from June, but up 3
percent from 2001. The USDA projects 8.9 billion bushels of corn produced
in 2002, down from 9.5 billion bushels in 2001
"I feel it's
important for NCGA to take action in an effort to help our public policy-makers
understand the devastating effects these weather conditions are having
on the nation's growers," said Hume, a corn producer from Walsh,
Colo. "We want to be able to give those policy-makers options to
deal with this and to also receive feedback from them on how we can
help alleviate the effects this situation is having on us.
"We will need
to use all tools and options available," continued Hume, "to
assist those who are in such severe need."
In related news,
Agriculture Secretary Ann Veneman announced Aug. 12 that $150 million
in supplemental feed is being made available to farmers and ranchers
operating cow-calf operations in areas most severely stricken by drought.
"President
Bush and this administration continue to be concerned about the impact
of severe drought conditions to farmers in certain states," said
Veneman. "This additional funding for supplemental feed, coupled
with the many other programs we have expedited in recent months, will
provide much needed relief to farmers in the most devastated areas."
Under the new program,
Colorado, Nebraska, South Dakota and Wyoming are among the states initially
eligible. At least 75 percent of the pasture and range crop in these
states is rated as poor or very poor. USDA will provide assistance only
for future purchases of feed for beef cow-calf operations, not for past
expenses.
The program will
use both USDA's Commodity Credit Corporation (CCC) authority and Agricultural
Marketing Service's Section 32 authorities and will run through Dec.
31 or until available funds are exhausted, whichever comes first.
NCGA's Vaughan
Calls President's Economic Summit a Great Opportunity for Corn Growers
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Among the CEOs of multi-billion dollar industries and members of President
George W. Bush's administration during Bush's economic summit in Waco,
Texas, Aug. 13, was Dee Vaughan, a member of the NCGA Corn Board and
a grower from Dumas, Texas.
Vaughan was one
of nearly 240 people invited to the conference who represented a cross
section of America's work force, from corporate executives to labor
leaders, teachers, a welder, a truck driver and other wage earners.
The forum also featured breakout and discussion sessions on key economic
issues. Each session involved approximately 30 participants with diverse
points of view, and was chaired by a senior government official. In
addition, each session included guest speakers with expertise in the
session's subject matter.
Vaughan, who will
assume the duties of NCGA president-elect in October, took part in the
trade and agriculture breakout session. "My discussion group included
Agriculture Secretary Ann Veneman and was chaired by U.S. Trade Representative
Robert Zoellick," he said. "During the session, I emphasized
the positive role agricultural trade plays, not just for the farming
economy, but to the U.S. economy as a whole."
Vaughan also discussed
with key administration members other issues affecting the nation's
corn growers, such the Mexican taxation of high-fructose corn syrup,
biotechnology and the trade implications surrounding it, and how expanded
trade opportunities necessitate an efficient transportation infrastructure
to move more produce to port.
"I also spoke
to administration members about the effects the drought and inclement
weather is having on growers across the country," said Vaughan,
who was named as a member of NCGA's newly appointed Disaster Task Force.
A highlight of the
conference for Vaughan was hearing Bush endorse renewable fuels and
trade negotiations. "It was very encouraging to hear the president
advocating the use of renewable fuels during his main address as he
was calling for Congress to finish the national energy bill which includes
a renewable fuels standard (RFS)," he said. "The president
also mentioned his support on moving forward with trade negotiations
with foreign markets now that trade promotion authority has passed.
"We certainly
appreciate the effort of the Bush administration to organize the economic
summit," concluded Vaughan. "It was a great opportunity for
NCGA to interact with key members of the government and staff."
NCGA, CRA
Applaud Senatorial Effort to Seek Solution to HFCS Issue
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The NCGA and the Corn Refiners Association, Inc. (CRA) applaud the efforts
of Senate leaders to encourage U.S. Trade Representative (USTR) Robert
B. Zoellick to seek a negotiated solution to the ongoing sweetener dispute
between Mexico and the United States. A tax placed on high-fructose
corn syrup (HFCS) by the Mexican government last year could place an
unfair disadvantage on soft drinks produced from corn sweetener and
U.S. corn sales could face a $66 million reduction.
Twenty-two Senators
sent a letter dated August 12, 2002, urging an interim solution taking
U.S. agricultural export interests into full account.
"Resolution
of this dispute is an integral element in increasing farm family income
for our growers," said Jon Doggett, vice president of public policy
for NCGA. "Mexico is the second largest market for bulk U.S. corn
exports."
"We are determined
to restore access for U.S. high fructose corn syrup exports to our number
one market. This is a critical issue for the U.S. corn industry, as
evidenced by the support of these senators," said CRA President
Audrae Erickson.
The letter states,
"This dispute must be resolved in a manner that grants acceptable
access of U.S. HFCS to the Mexican market and Mexican sugar to the U.S.
market as an interim solution. The U.S. corn and corn processing industries
have been badly hurt by Mexico's refusal to grant fair and reasonable
market access for corn-based products."
Over the past year,
the Mexican government has erected several barriers-including a tax
on soft drinks sweetened with HFCS, HFCS import licensing requirements
and a quota on imports of HFCS, essentially closing a $240 million market
to U.S. corn refiners and had a devastating effect on U.S. HFCS production
investments in Mexico. Several corn-processing companies have invested
over $800 million in refineries in Mexico since the North American Free
Trade Agreement (NAFTA) was passed.
The HFCS market
in Mexico includes a demand for about 32 million bushels of corn. If
the United States' ability to supply the soft drink market in a cost
effective manner is diminished by this tax, corn growers across the
country will be negatively impacted.
The letter also
notes, "We recognize the importance of our relationship with Mexico
on a wide range of issues and know that the current situation requires
a delicate balancing act of many stakeholders. It is imperative that
the United States continue to be the global leader in opening new markets
if our agricultural economy is to maintain its strong international
position."
Leaders of the Senate
Committee on Agriculture, Nutrition and Forestry, including Chairman
Tom Harkin (D-Iowa), Ranking Member Richard Lugar (R-Ind.) as well as
several other senators with corn industry interests including Senate
Finance Committee Ranking Member Charles Grassley (R-Iowa), Richard
Durbin (D-Ill.) and Chuck Hagel (R-Neb.) led the letter writing campaign
to press for restoration of the Mexican market for U.S.-made HFCS.
NCGA Distillers
Grains Conference Sold Out
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Building on the strength of state associations and the continued success
of working with states to have region-specific focus and national impact
has scored another win with the NCGA. Thanks to the efforts of the Minnesota
Corn Research and Promotion Council, the Wisconsin Corn Growers Association,
the Wisconsin Ethanol Promotion Board, and the Midwest DDGS Association,
the NCGA North Central Distillers Grains conference to be held Aug.21-23
in Prior Lake, Minn., has completely sold-out. Due to the rush of registrations
and the stellar demand, there is simply no extra room to be had.
"We are extremely
pleased to be in a sold-out situation" said NCGA Livestock Information
and Programs Manager Tracy Snider. "With almost two weeks left
before the event, to have a packed house already is great. It shows
the interest DDGS have created in the livestock and research community
and indicates there is a need for continued education on the subject."
Also on-site at
the conference will be AgriTalk Radio, who will interview DDGS researchers
and filing reports for its affiliate outlets. "We're glad to have
AgriTalk on board," said Snider, "because it gives us another
outlet to promote the use of distillers grains and the great research
that's being done. AgriTalk is very respected among those in the agriculture
industry and NCGA is pleased to have them take an interest in our events."
Responding to the
extreme demand and continued need for information, NCGA will host another
DDGS Conference Oct. 30-31 at the Ambassador Hotel in Amarillo, Texas.
The NCGA Southwest DDGS Conference will be coordinated through the Corn
Producers Association of Texas and is for anyone involved in ethanol
co-products fed to livestock and poultry. Sessions include nutrition
reports, first-hand experiences, and future production and market trends
of DDGS, as well as a focus on mycotoxins and information on other feedstocks,
such as sorghum.
The two-day conferences
are designed to educate livestock producers and animal nutritionists
about ethanol co-products. "As more farmer-owned dry grind ethanol
plants are built," said Snider, "more distillers grains will
be available to livestock producers and animal nutritionists. This meeting
can instruct those interested how to best utilize this complimentary
ingredient in their livestock and poultry rations."
Horan Puts
NCGA Face on HFCS Issue at Sugar Symposium
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NCGA Corn Board member Bill Horan and Vice President of Public Policy
Jon Doggett represented the nation's corn growers at the American Sugar
Alliance's (ASA) 19th Annual International Sweetener Symposium Aug.
3-7 in Santa Fe and Albuquerque, New Mexico. Among the issues discussed
were the effects of the high fructose corn syrup (HFCS) tax on corn
growers.
"I tried to
put a personal face on the issue and not make it political," said
Horan. "I wanted the sugar and beet people to see what this means
to the average corn grower."
And what it means
is money, or the loss of it. Horan said while the Mexican government
is happy with their imported corn and their exported corn and sugar
growers are content, a lack of access is shutting corn growers out of
the market.
"According
to the NAFTA (North American Free Trade Agreement), the Mexican government
is supposed to provide us with access to that market and it isn't happening,"
Horan said. "We can't build a sweetener plant in the Corn Belt
because of that lack of access -- and it's costing us money."
The Rockwell City,
Iowa, corn grower estimated with current lack of availability to the
HFCS market, the average corn grower is losing approximately 10 cents
per bushel, which would be a net of $12,000 per year for a grower who
farms 800 acres.
"It's critical
that we find a solution to this problem," Horan said.
NCGA Joins
Illinois Corn Growers on Lock-and-Dam Modernization Barge Tour
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Staff of NCGA accompanied Illinois congressional staff members Aug.
12 during a Mississippi River barge tour that ran from Lock and Dam
No. 24 in Clarksville, Mo., to Louisiana, Mo. The tour, sponsored by
the Illinois Corn Growers Association, the Illinois Soybean Association
and the Illinois Farm Bureau, demonstrated how desperately corn growers
need lock-and-dam modernization on the Upper Mississippi River.
"The purpose
of the tour is to educate participants on importance of commercial navigation,
and also show the value of conservation programs to improve water quality,"
said Illinois Corn Growers Association Executive Director Rodney Weinzierl.
The Army Corps of Engineers provide the barge for interested groups
to tour various parts of the Upper Mississippi and Illinois Rivers.
Monday's tour consisted of Illinois representative and senate staffs,
Col. Kevin Williams Commanding Officer Army Corps of Engineers St. Louis
District, and representatives of the NCGA, the American Farm Bureau
and the Midwest Area River Coalition 2000 (MARC 2000).
Previous tours have
been successful and, according to Weinzierl, this one was no different.
"I thought it went very well," he said. "The participants
enjoyed being there and saw first-hand the impact commercial navigation
has in agriculture. You can't truly experience and understand the benefits
of the river until you've been on it."
Weinzierl went
on to say congressmen aren't the only people who need to get behind
the issue of modernization. "Producers need to understand how the
Mississippi and Illinois River systems set the price for all the corn
in the Midwest," he said. "Right now, by using these 60-year-old
locks and dams, growers are losing between 4- to 6 cents per bushel
and congressional inactivity will cost growers even more. This is going
to continue until the locks and dams are updated."
NCGA Membership
Shows Growth in July
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With an increase of 724 members compared to this time last year, the
NCGA has been working hard to increase its base of dedicated growers.
In the month of July alone, NCGA saw 280 new members join, an increase
of 31 members in comparison to June.
Leading the charge
were the Iowa Corn Growers Association and the Michigan Corn Growers
Association -- both winners of the NCGA, Syngenta Seeds and Syngenta
Crop Protection Association Membership Program.
"Iowa's and
Michigan's membership increases along with NCGA's continued membership
growth demonstrates NCGA is delivering quality programs and projects
that enhance profitability for corn growers," said Scott Wall,
the chairman of the Grower Services Action Team (GSAT) and a corn grower
from Yuma, Colo.
The Iowa Corn Growers
Association was the overall membership increase winner with 72 new members
between April 1 and June 30. Michigan won in the area of overall percentage
increase with a 3.7 percent growth during the same period.
"We are closing
in on 32,000 members," said GSAT Vice Chairman and Pierre, S.D.,
corn grower Mark Garber. "This is a significant accomplishment
considering the economic situation of the country."
To be eligible to
participate in the program, state associations must submit a membership-marketing
plan to NCGA Manager of Membership Services Byron Keelin. He can be
contacted at 636-733-9004 ext. 105 or keelin@ncga.com
<mailto:keelin@ncga.com>.
NCGA on
the Move, Figuratively and Literally
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The year 2002 will be remembered as a great year for the NCGA. Half
of NCGA's six "Big Rocks" saw victories with the passages
of the farm bill, trade promotion authority (TPA), and a national energy
bill which includes a renewable fuels standard (RFS). The 32,000-member
organization has been on the move.
And now, they're
literally moving.
NCGA will move
from its current address in St. Louis County to a more spacious office
in Chesterfield, a suburb of St. Louis. Dr. Richard Glass, vice president
of research and development, said there is a plethora of reasons for
the move.
"A primary
reason for the relocation is the fact we will actually own this building
and not rent, like we're doing currently," he said. "The growers
who provide the funds for our base of operations through their checkoff
dollars want to see more equity and we can't provide that by renting
a space. By owning the facility, we will see a bigger return on that
investment."
Glass said the
move to Chesterfield represents a transfer to a growing community where
real estate in the area has been appreciating rapidly. "We've already
seen an increase in the value of the property from the time we first
looked at it up until the final closing," he said.
The new building
will also provide many benefits to the staff, said Glass, including
an increase in space, from approximately 6,800 sq. ft. to 10,000 sq.
ft. in the new location. "The new building is much more spacious
and will provide a better use of available space, as well as promote
more interaction within the staff," he said. "When the staff
is able to interact more, a better exchange of ideas can be had and
that represents another benefit to our membership."
Currently, the
building houses one tenant who will help offset the price through rent
payments and represents a possible expansion in the future.
The new address
as of a date to be announced will be:
National Corn Growers Association
632 Cepi Drive
Chesterfield, Mo. 63005
NCGA Reminds
Growers to Send in Action Team/Committee Applications
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NCGA members planning to apply for action team/committee positions are
reminded the due date for applications is Friday, August 30. There are
openings on every team and committee, so members are encouraged to take
this opportunity to submit an application for consideration. Applications
materials are available at the Leader
Resource Center (<http://www.insidencga.com/?p=916>). Growers
needing an application mailed, faxed or emailed to them can contact
Kathy Baker at 636-733-9004 ext. 111 or baker@ncga.com
<mailto:baker@ncga.com>.
NCGA THIS
WEEK
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- Aug. 17-20 NCGA
Membership Services Manager Byron Keelin will be in Denver, Colo.,
attending the ASAE Convention
- Aug. 19-20 NCGA
Livestock Information and Programs Manager Tracy Snider will be in
St. Johns, Mich., attending a Comprehensive Nutrient Management Plan
meeting
- Aug. 19 NCGA
Director of Development Tom Slunecka will be in Joliet, Ill., attending
a BASF Customer Service meeting
- Aug. 20 NCGA
Production and Stewardship Chairman Jamie Jamison will be attending
a Farm Bill Implementation meeting in Upperco, Md.
- Aug. 21-23 NCGA
NCGA President Tim Hume, CEO Rick Tolman, Vice President of Marketing
and Marketing Brian Stockman, and Keelin will be in Greensboro, N.C.,
attending the NCGA Leadership Academy
- Aug. 21-23 NCGA
Director of Research and Business Development Rene Shunk and Snider
will be in Prior Lake, Minn., for the NCGA North Central Co-Products
Conference
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