|  |
April 26, 2002
* Volume 9* Number 15
IN THIS
ISSUE:
- Corn Wins Watershed
Victory; Senate Energy Bill Passes 88 to 11
- NCGA Sees
Counter-Cyclical Program Added to Farm Bill
- NCGA Sends Letter
Asking Farm Bill Conferees to Accept Cuba Provisions
- NCGA Urges Members
to Support Bush's Call for TPA Vote in April
- NCGA Encouraged by
President's Comments on Ethanol
- Phillips Counts
Commitment, Dedication as Keys to NCGA Corn Board
Re-Election
STARTING NEXT FRIDAY
(APRIL 26), CORN COMMENTARY WILL FEATURE PROFILES OF EACH OF THE
PERSPECTIVE CORN BOARD MEMBERS SEEKING ELECTION DURING THIS SUMMER'S
CORN CONGRESS. THE SCHEDULE IS AS FOLLOWS:
- APRIL 26 -
KYLE PHILLIPS
- MAY 3 - RON
OLSON
- MAY 10 -
RICHARD PETERSON
- MAY 17 - KEN
MCKAULEY
- MAY 24 -
SCOTT WALL
- MAY 31 - CAL
DALTON
- JUNE 7 -
JAMIE JAMISON
Corn Wins Watershed
Victory; Senate Energy Bill Passes 88 to 11 In what the NCGA is calling an
unprecedented, historic move, the U.S. Senate late Wednesday approved S.
517, the comprehensive energy package including a renewable fuel standard
(RFS) by a vote of 88 to 11. "This is the first time ever that national
energy policy would require the use of renewable transportation fuel,"
NCGA President Tim Hume said. "This is a clear victory for farmers and
renewable fuels advocates. When the time came to count votes, renewable
fuels were, time and again, able to show the strong support they have in
the U.S. Senate."
The NCGA, along with other agricultural, ethanol,
oil and environmental organizations, are taking the credit for the bill's
passage after months - and even years -- of hard work on Capitol Hill.
"For the past 20 years, the NCGA has been working side-by-side with
farmers, industry and government to build the ethanol industry from the
ground up," said Hume. "There can be little debate that the results add up
to a bona fide success story, and today's Senate action is a new and
exciting chapter in that story."
Hume noted that S. 517 RFS
provisions require refiners to use 2.3 billion gallons of renewable fuels,
like ethanol, in 2004 and increase that to 5 billion gallons by 2012. Key
elements of S. 517 are:
- The RFS;
- Eliminating the
reformulated gasoline (RFG) oxygen requirement;
- Banning MTBE in
four years;
- Creating a
renewable credit trading system; and
- Protecting the
environmental performance of RFG.
Hume also credited
U.S. corn growers and other ethanol supporters with ensuring passage of S.
517. "Corn growers throughout the nation actively contacted their
senators and urged them to pass the comprehensive energy package with RFS
provisions," Hume concluded. "This demonstrates the influence farmers can
have on national policy that affects them not only as farmers, but as
consumers as well."
NCGA and other key ethanol industry, oil and
agricultural associations, including the Renewable Fuels Association (RFA)
and the American Petroleum Institute (API), negotiated the RFS with Senate
leaders for weeks. In early March, Senate Majority Leader Tom Daschle
(S-SD) inserted the RFS into the Senate energy package in place of current
language.
DID YOU KNOW?? The
Leader Resource Center, located at <http://www.insidencga.com/>
provides the latest information and calendars for NCGA members on the
topics affecting them daily.
NCGA Sees Counter-Cyclical Program
Added to Farm Bill NCGA is pleased with discussions to provide a
stronger counter-cyclical program in the next farm bill. House and Senate
negotiators yesterday reached tentative agreement on a new bill that is
expected to strengthen the farm safety net for producers of major
commodities over the next six years, and reportedly will allow up to
$360,000 total annual government payments.
The bill's centerpiece
is a new counter-cyclical payment program, which NCGA has promoted as an
additional necessary component in the farm bill agreement. "NCGA and its
members have played a constructive role to deliver a bill with a strong
counter-cyclical payment program that includes more current yield data,"
said NCGA President Tim Hume.
Although the numbers
have to be reviewed by the Congressional Budget Office, NCGA expects
marketing loan rates to be raised for most major row crops, and a
counter-cyclical program that will complement the extension of fixed
payments initiated under the 1996 farm bill. NCGA has received initial
reports that the per-bushel rate for corn is expected to rise to $1.98,
the first increase since the mid-1990s and 5% more than the current rate.
After two years, the rate would be adjusted downward to $1.95 per bushel
to leave more room in the budget to raise target prices for the
counter-cyclical program favored by the House.
Once the
negotiations come to a completion, the conferees will send a conference
report to the House and Senate, where it will have to be approved. Once
approved, the bill then moves to the president's desk for his signature.
NCGA Sends Letter
Asking Farm Bill Conferees to Accept Cuba Provisions The NCGA was
among 27 agricultural groups who co-signed a letter to House Agriculture
Committee member Rep. Cal Dooley (D-CA), supporting the Congressman's
motion to instruct the House farm bill conferees to accept the Senate
language regarding the Cuba financing provisions. The motion was passed by
a vote of 273-143 Tuesday night.
"Currently," said NCGA
President Tim Hume, "United States law prohibits our agricultural
exporters wishing to sell food and agricultural commodities to Cuba from
using U.S. banks or financial institutions to execute the sale. This
prohibition increases the cost of the overall export transaction by adding
additional banking fees.
"It also increases the
complexity of the export sale," he continued, "making it more difficult to
compete against foreign suppliers."
Provisions in the
Senate Farm bill would eliminate the cash purchase requirement and allow
for private financing.
NCGA also joined with
agricultural groups to send letters to Administration officials expressing
disappointment with the recent action taken by the Administration to deny
visas to Cuban trade officials. "The purpose of the Cuban travel, "
said NCGA Director of Public Policy Keira Franz, "was for Cuban officials
to meet with U.S. suppliers, inspect facilities, discuss sanitary and
phytosanitary issues and verify U.S. procedures and standards associated
with the sale of U.S. food and agricultural exports to Cuba."
The
letters concluded by saying: "We ask your help in keeping this small but
viable market open for export sales of U.S. food and agricultural
commodities. This recent action by the Administration puts all future
Cuban food and agricultural purchases at risk at a time when American
farmers and ranchers are under extreme economic stress from low prices and
decreasing world market share.
"We hope that the
administration will look favorably upon future purchasing and technical
visits from Cuban officials."
NCGA Urges Members
to Support Bush's Call for TPA Vote in April The NCGA continues to
promote passage of Trade Promotion Authority (TPA) and urges its
membership to contact their elected officials, asking their support on
this important issue. Monday Sen. Chuck Grassley (R-IA) hosted a TPA Rally
attended by several farm-state senators, as well as U.S. Trade
Representative Ambassador Al Johnson.
It is essential that the
Senate give the president the authority he needs to negotiate trade, said
NCGA Vice Chairman of the Public Policy Action Team and corn grower from
Greene, Iowa, Ron Litterer. "One in three U.S. farm acres is planted for
export, and 25 percent of gross farm income comes from exports," he said.
"For corn growers, TPA is not an option. It is a must for improving our
export opportunities." TPA would give the president the power to
negotiate trade agreements, and ultimately, open new markets for the
nation's corn growers. President George W. Bush recently asked Senate
leadership to act and grant him TPA, saying "while we have been marking
time, our competitors have been working, and they've been signing
agreements. While we have been delaying, they've been
trading."
President Bush is pressing Congress to have the TPA
(formerly known as "fast track") bill on his desk in the next few days
with a Senate vote to occur hopefully this week. In his State Department
speech April 4, President Bush said: "For two decades, trade promotion
authority was a bipartisan commitment. It wasn't a political issue. It was
a commitment, because it represented our national interest in expanding
foreign markets. Those years saw many successes, and during the '90s,
about one-quarter of our economic growth came as a result of exports."
Currently, the United States is party to only three trade agreements,
far fewer than most developed nations, the president said, partly because
Congress has been so slow to act. The Administration is turning up the
heat on TPA because certain deferrals of the Andean Trade Preference Act,
which suspends duties on goods from South America in an effort to
discourage narcotics production, will expire May 16. Separate bills giving
Bush trade promotion authority and renewing Andean trade preferences have
passed the Senate Finance Committee.
DID YOU KNOW?? http://www.ncga.com/ offers up-to-date Ag
News, Weather and Market information. Customize weather information to
your local area. Check it out!
NCGA Encouraged by
President's Comments on Ethanol The NCGA was pleased to hear
President George W. Bush's pro-ethanol comments during a Republican
fund-raising stop in South Dakota Wednesday.
"I said, when I was
running for president, that I supported ethanol...and I meant it," he
said. "I support it now, because not only do I know it's important for the
ag sector of our economy, it's an important part of making sure we become
less reliant on foreign sources of energy." "This is great," said NCGA
Ethanol Committee Chairman and York, Neb., corn grower Boyd Smith. "To
have the president come out and voice his support for ethanol, value-added
and renewables gives us credibility and will convince people that the
renewable fuels standard (RFS) is something this country
needs."
"Pretty soon they're going to get an energy bill to my
desk," Bush continued, "and I look forward to signing it. On the one hand,
it's going to encourage more conservation. On the other hand, hopefully,
it will spur not only the development of renewables, but more oil and gas
at home. And the two are not mutually exclusive.
"The less reliant
we are on foreign sources of crude oil, the better off we are in
America."
Phillips Counts
Commitment, Dedication as Keys to NCGA Corn Board
Re-Election According to a time-tested cliché, a chain is only as
strong as its weakest link. The National Corn Growers Association (NCGA)
is fortunate, in that there are no weak links, especially in this year's
crop of Corn Board candidates.
Kyle Phillips of Knoxville, Iowa, a
current member of the Corn Board, is seeking re-election during this
summer's Corn Congress. As an incumbent, Phillips said he has proven the
dedication is there to be an effective Board member. "Being on the Corn
Board takes a lot of time and commitment," he said, "and having served on
the Board, I think I've shown I have the commitment to be
effective."
Phillips farms 2,200 acres of corn and soybeans with
his wife, Sue, and his father Raymond. They raise some specialty grains,
and have invested in an ethanol plant. He also serves on the Iowa Corn
Promotion Board and is currently serving as Research Committee Chairman.
The Knoxville, Iowa, grower has worn many hats during his tenure with
NCGA, having served on the Corn Board for the past three years, as well as
serving as Chairman of the Finance Committee, and most recently as liaison
for the Customer & Business Development Action Team. "I feel I
have the abilities and the motivation needed to build a better future for
corn producers," said Phillips, "and I would like to demonstrate my
abilities by continuing my service on the Corn Board.
I believe
that a Corn Board member should have high moral character," he continued,
"as well as dedication, making a constant effort to gain information, and
think about how to improve the farm industry."
Phillips said he
believes NCGA is an effective organization that can continue to grow and
improve, and welcomes the opportunity to continue to be a part of this
dynamic organization.
"I joined NCGA because it is a reputable
organization that stands up for farmers' rights," he said. "I would like
to continue to make NCGA a positive force for the nation's corn growers."
NCGA THIS
WEEK
- April 29 NCGA
President Tim Hume, CEO Rick Tolman and Strategic Marketing
Communications Manager Gary Bradley will be in Washington, D.C., for the
National Association of Farm Broadcasters " Washington Watch."
- April 30 Hume,
Tolman and Bradley will attend the NAFB Washington Watch breakfast,
where Hume will speak to an audience including Reps. Larry Combest
(R-TX) and Charles Stenholm (D-TX)
- May 1-3 Tolman and
NCGA Corn Board member Dee Vaughan will be in Mexico City, Mexico,
attending the North American Conference on
Agriculture
|