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June 1 , 2001 * Volume 8 * Number
16
Administration
Backs Corn Gluten Industry, Drops Quotas for Wheat Gluten
Imports
More than 5 million
tons of U.S. corn gluten should soon be free of EU-imposed duties, thanks
to the Bush Administration decision this week to decline to extend quotas
on wheat gluten imports. The decision was hailed by NCGA and allied groups
such as the Corn Refiners Association (CRA), which have opposed the
extension of U.S. wheat gluten quotas. The current quotas - set to expire
June 1 - have been in effect for the past three years. Last January, a WTO
panel ruled that the U.S. quotas failed to comply with WTO safeguards law,
and the EU retaliated with a 5 euro per ton duty on imported U.S. corn
gluten feed. The U.S. wheat gluten industry sought a two-year extension of
the current quotas, and was supported by the U.S. International Trade
Commission. NCGA and the CRA adamantly opposed this extension, citing the
EU's promise to continue its retaliatory duties against U.S. corn gluten.
Under the Administration's action, the wheat industry will receive
compensation from USDA for the EU's unfair practices, while the corn
industry will be free of the retaliatory actions. "This is a win-win for
both corn and wheat farmers," said Brent Porteus, PPAT action team
chairman.
Grower President
Explains Biotech Issues in Thailand
NCGA Lee Klein
returned to the United States Saturday after a recent trip to Thailand,
where he explained the views of the nation's corn growers on biotech to
Thai farmers and government officials. For more information on this story,
please go to here.
National Corn
Growers Welcomes Indiana Corn Checkoff
NCGA welcomes the
Indiana Corn Growers Association's recent milestone. Indiana became the
20th state with a corn checkoff when Gov. Frank O'Bannon approved a
measure establishing a 1/2-cent per bushel checkoff that begins Sept. 1.
For more information on this story, please go to here.
NCGA Seeks Speedy
Solution to StarLink Food Tolerance
In a letter to EPA
Administrator Christine Whitman, NCGA President Lee Klein urged the agency
to conduct a timely review of potential Cry9C allergenicity as it relates
to human food use. Asserting NCGA's belief that EPA has the necessary data
to determine the allowable presence of StarLink corn that can be allowed
in food products, Klein noted that continued uncertainty on this issue
harms U.S. corn exports. The establishment of a tolerance standard also
would provide guidance for trading partners interested in setting such
standards, particularly within the EU. "We ask that EPA devote the
necessary resources to analyze the available information and make a final
determination on the allowable presence of StarLink corn in food as
quickly as possible," Klein wrote. He added that EPA should determine if
approved testing methods on all lots of raw corn delivered to dry mills
and corn destined for food starch production in wet mills will provide
adequate assurance that consumers would not be exposed to more than
"extremely" low levels of Cry9C. Any concentrations of Cry9C exceeding 20
parts per billion (ppb) would then be diverted to feed or industrial uses.
"If the current situation is allowed to persist, the United States will
lose valuable export customers and the longer these issues are not
resolved the more market share U.S. corn farmers will lose. . . EPA must
make this a priority and reach a decision as soon as possible," Klein
concluded.
NCGA's Continues
Work on New Farm Bill
Continuing its efforts
on the new Farm Bill, NCGA was busy this week both internally and with
congressional colleagues. The Public Policy Action Team met via conference
call on Thursday to discuss the status of the proposal and to devise
NCGA's plan of work on the issue for the next two months. On Friday, June
1, NCGA convened a conference call with state executives for a similar
update and strategy session. In the last few weeks NCGA has been busy
visiting with interested congressional offices on the proposal. NCGA has
had numerous follow-up meetings following the April 25 testimony before
the House Agriculture Committee and Senate offices interested in learning
more about the concept. NCGA continues its working relationship with
AgriLogic, Inc., for economic analysis on the counter-cyclical income
support proposal. At press time, AgriLogic is awaiting data from NCGA
members for model-farm analysis. Now that many NCGA members are nearing
the end of their planting season, we hope the remainder of the data will
be submitted so that final analysis can be completed.
Government Will
Sell 100,000 Tons of Sugar, USDA Announces
In a move designed to
help the sugar industry, USDA announced yesterday that it will sell up to
100,000 tons of refined sugar for conversion into ethanol. NCGA
immediately sought government assurances that this decision will be
managed in a manner that will not cut into corn grind, and will be used to
enhance the corn-to-ethanol conversion process. USDA noted that it will
impose a 10,000-ton-per-purchaser limit to ethanol producers, which the
agency said could produce up to 15 million gallons of additional fuel. In
a released statement, it said, "Ethanol producers can absorb this sugar
without negative impacts on the domestic corn market." Ethanol producers
have stated that managed correctly, small amounts of refined sugar can be
added to the corn stream in a dry-mill ethanol plant without reducing corn
use. If that's the case, this development can be beneficial for both corn
and sugar because it can reduce excess sugar stocks while not reducing
corn grind. And a reduction of sugar stocks can diminish the negative
impact sugar stocks have had on fructose prices and trading relationships
with Mexico.
NCGA Talks Biotech
Regulations with Industry, Government
The NCGA Biotech
Working Group (BWG) has been busy recently carrying out directives issued
by the Corn Congress at this year's annual meeting in San Antonio. For
more information on this story, please go to .
Distillers Grains
Technology Council
Tracy Snider, NCGA's
manager, livestock information and programs, has been working diligently
on distillers grains and other co-product information as well as staying
up to date with new and revisited ideas by attending the 5th Annual
Distillers Grains Technology Council Symposium in Louisville, Ky., May
23-25. The conference was focused on energy and transportation costs
specifically related to drying of distillers' grains and the marketing
opportunities for wet distillers grains. This was a well-attended
conference with representation from both the fuel and beverage alcohol
industries all with vested interest in the quality, consistency and sale
ability of spent grains to the livestock industry. Snider is highly
interested in cooperative marketing techniques for distillers' grains as
well as product differentiation in the highly competitive feed ingredient
market. A PowerPoint presentation regarding DDGS and utilization in the
dairy industry is available on the intranet for your information and use,
as well as a trip report and summary of the conference. For more
information, contact Tracy via email snider@ncga.com.
Congress Passes
$1.35 Trillion Tax Cut Package; Awaits President's
Signature
Congress last weekend
passed the President's $1.35 trillion tax package. The White House had not
yet received the bill and did not indicate when President Bush would sign
it. The cuts go into effect July 1. The tax package will:
- Provide immediate
relief for taxpayers this year, by refunding a maximum of $300 to
singles, $500 to single parents and $600 for married couples. The
Treasury Department expects to start mailing about 90 - 95 million
refund checks by the beginning of August.
- Lower over time the
top tax rate, paid by people with incomes higher than $300,000 from 39.6
percent to 35 percent. By 2006 the bill will lower the 36 percent rate
to 33 percent, the 31 percent rate to 28 percent and the 28 percent rate
to 25 percent. The 15 percent rate will not change, and there is a new
10 percent rate.
- Double the $500
per-child tax credit and make it available to many low-income
families.
- Eliminate the
phase-out of itemized deductions and personal exemptions.
- Ease the penalty
paid by half of married couples when they file joint tax returns, such
as widening the 15 percent bracket so that more of their earnings are
taxed at a lower rate, though marriage penalty provisions would not take
effect until 2005.
- Reduce-gradually-the estate tax over the next decade before
repealing it in 2010. Before repeal, the exemption from the estate tax,
now set at $675,000, would eventually rise to $3.5 million. At the same
time, the rate at which estates are taxed would decline in steps, from
55 percent currently to 45 percent in 2007.
- Raise contribution
limits for 401(K) plans from $10,500 to $15,000 in 2006. For IRA
contributions, the annual contribution limits will jump from the current
$2,000 to $5,000 by 2008. It is important to note, however, that all tax
cuts will cease in 2010, unless they are reinstated by another President
or Congress at the end of the decade. President Bush is expected to sign
the bill next week.
NCGA This
Week
- NCGA President Lee
Klein will travel with other NCGA grower leaders and staff and U.S.
Grains Council staff to meet with the European Union (EU) officials
during the week of June 10 to discuss current trade, consumption, demand
and policy with government agriculture officials, importers and the
dairy feed industry. Scheduled stops will include Brussels, Belgium;
Geneva, Switzerland; and Paris, France. Other NCGA participants are Leon
Corzine, Assumption, Ill., Production & Stewardship Action Team vice
chairman; Fred Yoder, Plain City, Ohio, Corn Board member and chairman
of the Biotech Working Group; Rick Tolman, NCGA CEO and two staff
members from U.S. Grains Council.
- Representatives
from the Korean Feed Association will be visting the St. Louis offices
of the National Corn Growers Association Monday, June 4.
- NCGA director of
business development Bob Sedlacek will be attended a two-day fiber
utilization conference June 5 and 6 in Decatur, Ill.
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