July 27, 2001 * Volume 8 * Number
23
IN THIS
ISSUE:
- NCGA Calls Growers
to Action on Waxman-Cox Amendment
- EPA Panel
Reconfirms Earlier Findings on StarLink
- NCGA Working
Towards IRM Compliance
- NCGA Optimistic
About Senate Agriculture Committee $7.5 Billion Emergency Aid Package
- NCGA Applauds
Illinois Governor's Decision to Ban MTBE
- NCGA Considers VEG
III Conference a Success
- House Agriculture
Committee Initiates Farm Bill Mark Up
- Illinois Corn
Growers Testify on Input Price Disparity
- NCGA Genome Program
Underway to Treat Diabetes
- NCGA, CRA Letter
Seeks Lott's Help on Mexican Trucking Issue; Fallout Jeopardizes U.S.
Exports of High Fructose Corn Syrup
- Baucus Bill Would
Re-direct Ethanol-Blended Fuel Taxes into Highway Trust Fund
- Senate Confirms
Johnson as USTR's Chief Agriculture Negotiator
- NCGA This Week
- !!NEW!! Corn
Congress Photo Album. Check it
out!
NCGA Calls
Growers to Action on Waxman-Cox Amendment
The ethanol industry
and its supporters are in great danger - again, and the NCGA is urging
growers to contact their congressional representatives to protect the
future of ethanol. Next week, there is a real possibility that the energy
bill will be brought to the floor of the House for a vote. The rule - or
procedural mechanism - that enables floor action on the energy bill could
open up amendments that are unfavorable to the ethanol industry and to
corn. For more details, go here.
EPA Panel
Reconfirms Earlier Findings on StarLink
The EPA's Scientific
Advisory Panel (SAP), which met July 17 and 18, has reconfirmed its
earlier conclusions that StarLink poses a "medium likelihood" that Cry9C
is a potential allergen and that there is sufficient evidence that there
is a "low probability of allergenicity" in the exposed population. NCGA
CEO and Executive Vice President Rick Tolman said while NCGA was
disappointed, it supports the sound science used in the testing. "From our
review of the science a tolerance appeared to be justified," he said.
"However, we have publicly stated that we support sound science in making
these decisions and we will do so in this case." StarLink represented less
than ½ of 1% of the U.S. corn crop last year and yet it has cast a very
long shadow over the entire industry, said Tolman. "At present there is a
zero tolerance for StarLink for food use application. All are aware that
in a practical sense, zero is an impossible standard to meet. Any
quantitative measure, no matter high minute, would have at least given a
target that industry could respond to. Zero stops trade, because of
liability reasons." Since the scientific panel concluded that "there is
inadequate information to establish a reasonable scientific certainty that
exposure would not be harmful to public health," NCGA will continue to
encourage the makers of StarLink to do further and additional scientific
testing and research to see if adequate information can be provided in the
future.
NCGA Working
Towards IRM Compliance
The Environmental
Protection Agency (EPA) recently conducted a meeting to reassess the risks
and benefits of Bacillus thuringiensis (Bt) corn. EPA is assessing the
adequacy of Insect Resistance Management (IRM) plans as part of total Bt
corn re-registration. According to EPA officials, current producers of Bt
corn are not sufficiently meeting IRM compliance levels. For more details,
go here.
NCGA Optimistic
About Senate Agriculture Committee $7.5 Billion Emergency Aid
Package
The Senate Agriculture
Committee this week approved a $7.5 billion emergency aid package for
farmers in the current fiscal year, championed by Chairman Tom Harkin
(D-IA). For more details, go here.
NCGA Applauds
Illinois Governor's Decision to Ban MTBE
Illinois Governor
George Ryan gave a helping hand to the ethanol industry this week by
signing a bill banning MTBE in that state. Ryan said the bill, HB171,
should be seen as a boost to the nation's corn growers as well as the
environment, since MTBE has been known to pollute groundwater in several
states. For information on this story, go here.
NCGA Considers VEG
III Conference a Success
Representatives of the
National Corn Grower Association (NCGA) have returned from the two-day
U.S. Grains Council (USGC) sponsored Value Enhanced Grains III conference
in Portland, Ore. For more information, go here.
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.
House Agriculture
Committee Initiates Farm Bill Mark Up
On Thursday, the House
Agriculture Committee began debate on the farm bill, considering dozens of
amendments as the committee worked through the bill's titles. At press
time, the committee's work is ongoing, but here is a summary of what has
been accomplished: Commodity Title-Fixed decoupled payments at $.30
per bushel for corn and $.42 per bushel for soybeans; a counter-cyclical
payment with a target income for corn at $2.78 per bushel and target
income for soybeans at $5.86; a doubling of the payment limit on the
marketing assistance loan program from $75,000 to $150,000 while retaining
the commodity certificate program; and loan rates set at $1.89 per bushel
for corn and $4.92 per bushel for soybeans. An amendment allowing for a
pre-harvest LDP was attempted but was withdrawn once the chairman
expressed willingness to include report language in the bill to address
marketing assistance loan program "fixes." Conservation Title-The
conservation section of the farm bill as completed by the committee
remained very similar to the "draft concept paper" breakdown. Existing
programs were apportioned more money with a new Grasslands program added.
The total for conservation, as included in the Chairman's proposal, is
$16.511 over 10 years. A significant funding increase was included for the
Environmental Quality Incentives Program (EQIP) that provides cost share
payment for structural and management practices. The Conservation Reserve
Program, CRP acreage was expanded to $40 million acres. An incentives
program, as endorsed by NCGA, was not included in the House package. The
Committee mark raised the annual authorization for the Market Access
Program to $200 million and the Foreign Market Development to $35 million.
This is significant increase for MAP, but very little for FMD. The
Committee approved an amendment by Rep. Richard Pombo (R-CA) to direct
significant emphasis in the FMD program on value-added agricultural
products for emerging markets. It is not clear how the Pombo amendment
would affect current FMD programs.
Illinois Corn
Growers Testify on Input Price Disparity
Ron Fitchhorn,
President of the Illinois Corn Growers Association, testified Thursday
before the Senate Commerce, Science and Transportation Subcommittee on
Consumer Affairs, Foreign Commerce and Tourism. The committee discussed
Sen. Byron Dorgan's (D-ND) bill, S. 532, a measure aimed at negating the
price disparity between what U.S. farmers pay for chemical inputs and what
neighboring farmers in Canada pay. Fitchhorn took the opportunity to
discuss price differences in chemical inputs and in conventional/biotech
seed varieties, as well. The McClean, Ill., grower urged the subcommittee
to pass legislation requiring USDA Economic Research Service to report
prices paid for farm inputs (chemicals and seed) for U.S. farmers and
farmers in competing countries. Having a centralized recording requirement
"would allow U.S. farmers to monitor global price disparities," Fitchhorn
testified. Fitchhorn's testimony is posted on the NCGA web site: http://www.ncga.com/.
NCGA Genome Program
Underway to Treat Diabetes
Thanks to the National
Science Foundation's (NSF) Plant Genome program, created and supported by
the National Corn Growers Association (NCGA), efforts are now underway to
see if plants can be engineered to produce a human enzyme to treat Type 2
diabetes. For more details, go here.
NCGA, CRA Letter
Seeks Lott's Help on Mexican Trucking Issue; Fallout Jeopardizes U.S.
Exports of High Fructose Corn Syrup
NCGA and the Corn
Refiners Association (CRA) Thursday sent a letter to Minority Leader Trent
Lott (R-MS), seeking his assistance on a trade issue that threatens to
destroy the $90 million market in Mexico for U.S. exports of high fructose
corn syrup. A Senate showdown is expected over provisions included in the
FY 2002 transportation appropriations bill, which opponents believe will
violate NAFTA because the proposed safety standards that would apply to
Mexican trucks would be more stringent than those currently applying to
American and Canadian trucks. The White House wants Mexican trucks to have
access to the nationwide system of U.S. highways next year; currently,
these trucks are restricted to a 20-mile-wide zone north of the
U.S.-Mexican border. In the letter to Sen. Lott, NCGA President Lee Klein
and CRA President Charles Conner state: "The Government of Mexico has
clearly stated that if legislation to restrict access of the Mexican
trucking industry to the United States becomes law, they will retaliate by
placing restrictions on U.S. exports of high fructose corn syrup. These
exports have already been dampened by trade actions of the Mexican
government and could be ended entirely if the Mexican trucking measure
passed by the House becomes law." They added: "Exports of high fructose
corn syrup to Mexico put over $35 million in the hands of U.S. corn
farmers and provide a much-needed market for U.S. grain." The letter also
points out that both NCGA and CRA have worked hard to build markets for
value-enhanced markets for U.S. corn, citing a WTO case the United States
recently won contesting existing Mexican restrictions on high fructose
corn syrup. "This case, and other developments, could point to achieving a
much larger market share for U.S. agriculture in the years to come. Our
groups strongly support measures and actions to open, not close, trade
between the United States and our NAFTA partners." They conclude by asking
Sen. Lott to "protect this market for U.S. agriculture and reject
unwarranted protection that can damage U.S. trade and violate the intent
of NAFTA."
Baucus Bill Would
Re-direct Ethanol-Blended Fuel Taxes into Highway Trust
Fund
NCGA is supporting
Sen. Max Baucus' (D-MT) proposed legislation, the "Highway Trust Fund
Recovery Act of 2001." The bill would direct 2.5 cents from the sale of
gasohol into the Highway Trust Fund, effective in FY 2004. This
legislation will shift the additional funds back into the Highway Trust
Fund and enable more funding to be returned to the states for highway
construction. Please urge your Senators to support Sen. Baucus' bill. This
legislation is expected to be introduced next Tuesday, July 31.
Senate Confirms
Johnson as USTR's Chief Agriculture Negotiator
Allen F. Johnson has
been confirmed unanimously by the Senate as the Chief Agriculture
Negotiator for the Office of the United States Trade Representative. The
position confers the rank of Ambassador on Johnson, who will be
responsible for expanding farmers' access to overseas markets and for
addressing related agricultural issues. In a news release, Johnson said
"USTR will remain vigilant in our efforts to make sure our trading
partners provide American farmers with fair access." Johnson's extensive
experience in the agriculture sector includes serving as president of the
National Oilseed Processors Association, and stints as CEO of the Iowa
Soybean Association and Iowa Soybean Promotion Board. Earlier, he advised
Sen. Charles Grassley (R-IA) on agriculture, environment and trade issues.
NCGA THIS
WEEK
- July 30 NCGA
representatives will attend a Biotech Working Group Meeting in
Indianapolis, Ind.
- July 31 NCGA CEO
and Executive Vice President Rick Tolman will attend the Kentucky Summer
Business Meeting in Louisville, Ky.
- Aug. 1-2 Rick
Tolman will attend the Kansas Corn Commission Meeting in Hiawatha, Kans.
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