May 17, 2002 *
Volume 9* Number 18
IN THIS
ISSUE:
- NCGA Trade Priority
in Jeopardy
- NCGA Signs
Memorandum of Agreement With Taiwan
- NCGA Congratulates
President Bush on Farm Bill Signing
- NCGA Growers Give
Their Perspective on Newly Signed Farm Bill
- NCGA Seeks Action
on Russian Poultry Ban
- NCGA Compiles Stats
for EU Biotech Visit
- Experience a Plus
for McCauley’s Run for NCGA Corn Board
EACH WEEK, CORN
COMMENTARY WILL FEATURE PROFILES OF EACH OF THE PERSPECTIVE CORN BOARD
MEMBERS SEEKING ELECTION DURING THIS SUMMER’S CORN CONGRESS. THE REMAINING
SCHEDULE IS AS FOLLOWS: MAY 17-KEN MCCAULEY MAY 24-SCOTT
WALL MAY 31-CAL DALTON
NCGA Trade
Priority in Jeopardy
The NCGA was troubled
to see the Senate failed to table the Dayton-Craig Amendment (38-61) to
the Trade Promotion Authority (TPA) bill. The amendment, offered by Sens.
Mark Dayton (D-MN) and Larry E. Craig (R-ID), would alter the process of
fast track consideration of trade agreements, and would seriously
undermine the ability of U.S. negotiators to get a good deal for U.S.
agriculture in the new round of the World Trade Organization (WTO)
negotiations.
U.S. Department of
Agriculture Secretary Ann Veneman, Secretary of Commerce Donald Evans and
U.S. Trade Representative Robert Zoellick issued a statement they would
recommend President Bush veto TPA legislation containing the provisions of
the Dayton-Craig Amendment.
NCGA is asking the
Senate to pass TPA without amendment and move to conference the House and
Senate versions of TPA as soon as possible, as negotiations for the WTO
Doha Round are already underway. Should the Dayton-Craig Amendment pass,
it may end the ability to get a TPA bill signed into law this year.
Debate on TPA is
likely to continue this week and several amendments will be brought up
during the discussions.
NCGA strongly
encourages its membership to contact their Senators to inform them not to
approve any amendments to TPA. Growers can contact their elected officials
by using the Legislative Action Center located at the NCGA website, http://www.ncga.com/.
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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. *****************************************************************
NCGA Signs
Memorandum of Agreement With Taiwan
The NCGA was involved
in the signing of a joint memorandum with agriculture representatives from
Taiwan May 16. The joint communiqué, also signed by the American Soybean
Association (ASA), will increase bilateral trade and investment between
the United States and Taiwan, and will add momentum to U.S. free trade
initiatives.
“Taiwan is an
extremely important and loyal ally in the world market,” said Biotech
Working Group Chairman and Assumption, Ill., corn grower Leon Corzine, who
signed the agreement on behalf of the NCGA. “It is the third-largest
international customer for corn and the second-largest customer of U.S.
agriculture, and with this agreement, our relationship is only going to
improve.”
The Taiwan Vegetable
Oil Manufacturers’ Association and the Taiwan Feed Industry Association
represented Taiwan at the signing. As part of the agreement, the two
groups will purchase 9.6 million metric tons (between 276 to 378 million
bushels) of U.S. corn, barley and sorghum between now and Dec. 31,
2003.
Corzine said there
would be many benefits stemming from the agreement. “Taiwan is a very
important market and U.S. corn growers want to continue to supply this
market, and this agreement makes that commitment.
“This is big for U.S.
growers,” concluded Corzine. “Despite Taiwan’s geographical size, it has a
major, modern economy. This is a great situation for us.”
NCGA
Congratulates President Bush on Farm Bill Signing
At 7:40 a.m. EDT
Monday, President George W. Bush signed the 2002 Farm Bill into law. NCGA
played an active role in the Farm Bill process and was pleased to see the
president take quick action by signing this legislation.
"Success of farmers
and ranchers is essential to success of the American economy," Bush said
during the signing ceremony. "This bill is generous and provides a safety
net for farmers. It will do so without encouraging overproduction and
depressing prices."
The new Farm Bill
will:
- Stem the tide of
unbudgeted ad hoc assistance that has been required year after year,
including over $30 billion over the last four years,
- Fully maintain the
market-oriented features of the 1996 Farm Bill, having minimal impact on
price and production according to economic analysis,
- Fully maintain the
planting flexibility of the 1996 Farm Bill,
- Provide for the
largest investment in conservation ever - fully 80 percent above the
levels of the Boehlert conservation amendment to the 1996 Farm Bill,
and
- Replace the 1996
Farm Bill that is set to expire on Sept. 30 of this year.
Conservation is a key
part of the new bill. "The Conservation Security Program is a new national
incentive payment program that rewards producers for maintaining and
increasing farm and ranch stewardship practices," said NCGA Director of
Public Policy Sam Willett. "The Farm Bill will invest $2 billion towards
this program."
Also in the area of
conservation, the 2002 Farm Bill will increase federal investment in soil
and water programs by more than 80 percent above current programs levels.
"This will provide growers with more options to implement progressive
conservation practices on their land," said Willett, "with the backing of
increased technical assistance to producers using government or private
contractors."
He also pointed out
the 2002 Farm Bill will make all the needed changes to the Conservation
Reserve Program and the Environmental Quality Incentives Program to make
them more usable and accessible to all producers in all regions of the
country.
The Bill also contains
a first-ever Energy Title that includes a continuation of the Commodity
Credit Corporation Bioenergy program.
The Energy Title also
reauthorizes the Biomass Research and Development Act of 2000 through
fiscal year 2007 and will create a new program where federal agencies give
preference to purchasing bio-based products, which should help energize
emerging markets for these products.
Value-added market
development grants have also been expanded to meet growers' interests in
start-up, farmer-owned, value-added processing facilities while
establishing resource centers to assist producers in value-added
endeavors.
The new bill,
according to a recent analysis by the Food and Agriculture Policy Research
Institute, projects an increase in annual net farm income by an average of
$3.8 billion. Conservation programs will contribute an estimated $0.7
billion per year.
NCGA Growers
Give Their Perspective on Newly Signed Farm Bill
After several months
of debate and negotiations, President George W. Bush finally had a Farm
Bill in front of him to sign. He did, in fact, sign the bill into law May
13 and grower leaders from the NCGA were there to witness the fruition of
months of hard work by the 32,000-member organization.
As he was signing the
six-year legislation, Bush said he understood the plight of the American
farmer. "I was honored to be the governor of the second-biggest farm state
in the union," he said. "I understand how hard farmers have to work to
make a living. I know they face tough challenges. I know how hard many
struggle. Their livelihood depends on things they cannot control: the
weather, crop disease, uncertain pricing. They need a farm bill that
provides support and help when times are tough. And that is why I'm
signing this bill today."
With the legislation
finally in place, what does it mean for the nation's corn
growers?
Steve Pigg, a corn
grower from Bushnell, Ill., said, "It gives us a safety net and the
ability to expand our markets, both nationally and internationally. It
gives us the flexibility to plant what we want."
Pigg said he was
pleased by the conservation wording of the legislation. The new Farm Bill
increases soil and water conservation programs by more than 80 percent,
providing growers with more options to implement progressive conservation
practices on their land. "I'm very conservation-minded," said Pigg, "and I
think the additional conservation spending in the bill will provide
incentive for growers."
Loren Tusa, a grower
farming out of Alpha, Minn., also said the Farm Bill is on the right
track. "This is probably as good a Farm Bill as we could get. There were
things in the Farm Bill I could have picked out," he said, "but you have
to ask yourself, what do you want to give up somewhere else in the bill?
Like NCGA, I applaud everyone involved and I am just glad to see it
done."
NCGA Seeks
Action on Russian Poultry Ban
The NCGA is concerned
about the continued ban on U.S. poultry into Russia. According to NCGA
Livestock Programs and Information Manager Tracy Snider, Russia formally
lifted its ban on poultry but has yet to resume importation of U.S.
poultry. The delay is causing a ripple effect in the profitability of U.S.
agriculture, as chicken companies suffer losses due to depressed domestic
prices and lost sales opportunities, which could negatively affect the
portion of corn used as feed to domestically grown poultry, said Snider.
"Russia announced
April 15 that it lifted the trade embargo on U.S. poultry," she said,
"however, no U.S. poultry export shipments have moved since the ban was
lifted." The poultry exported to Russia eat nearly 1 million tons of corn
per year, which equates to 35.7 million bushels, or about 260,000 acres of
corn.
The livestock and
poultry sector represent the largest consumers of corn, consuming over 58
percent of the annual corn crop, she said. In the United States, poultry
production represents 27.3 percent of all corn consumed by livestock, so
it's not difficult to see why NCGA has a stake in this issue.
Snider said one of the
sticking points for the resumption of normal trade with Russia is the
Russian's view of biotech feeds. Provisions in the draft protocol asking
for changes in the 1996 U.S.-Russia Veterinary Agreement on poultry seek a
limitation on the use of feeds from genetically enhanced grains. "NCGA
supports the use of biotechnology to enhance modern crop production as it
relates to human health, the environment, grain quality, and production
benefits," Snider said.
"Numerous animal
nutrition studies have been completed, both domestically and abroad," she
concluded, "to examine the effects of genetic modification of crops on the
livestock, which consume it, and they have found no negative responses in
the animals fed corn and other crops that have been enhanced through
biotechnology."
NCGA Compiles
Stats for EU Biotech Visit
U.S. farmers are
familiar with the benefits of biotechnology. However, agriculture
representatives in the European Union (EU) are still not convinced. To
this end, a group of Midwest Agriculture Department representatives,
headed by Nebraska Governor Mike Johanns, are planning a trip to Europe to
provide EU leaders facts and grower views on biotech.
The NCGA, in
coordination with the U.S. Grains Council, has compiled a book of biotech
stats for the U.S. contingent to share With the EU ag reps.
"This is an important
trip for biotechnology," said NCGA Biotech Working Group Chairman and
Assumption, Ill., corn grower Leon Corzine. "The group will discuss why
biotech is important to U.S. farmers as well as discuss our safety and
regulatory processes. Not only will this visit assist the Europeans with
their own regulatory process, but it will benefit ag economy and
trade."
Accompanying Johanns
on the visit are: Illinois Director of Agriculture Joe Hampton; Illinois
Environmental Protection Agency Director Renee Cipriano; Iowa Secretary of
Agriculture Patty Judge; Missouri Deputy Director of Agriculture Peter
Hofherr; Missouri Policy Advisor to the Governor Caleb Weaver; Nebraska
Director of Agriculture Merlyn Carlson; and Ohio Director of Agriculture
Fred Dailey. NCGA advocates the continued availability of federally
regulated and approved seed and crops produced through biotechnology.
"NCGA supports the science-based regulatory process and stands behind the
process that approves these new tools for agriculture and food
production," said Corzine.
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guide to state web sites and contact information. Click the drop-down
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Experience a
Plus for McCauley’s Run for NCGA Corn Board
To lead, one needs
experience, and experience is something White Cloud, Kan., corn grower Ken
McCauley has. McCauley hopes that experience is enough to be elected to
the NCGA Corn Board this summer at Corn Congress in Washington,
D.C.
“I would like to be on
the Corn Board because I would like to represent corn growers,” he said,
“and to represent the checkoff side of things within the
board.”
McCauley farms 3,500
acres of corn and soybeans, all no-till. A farmer for 30 years, he is
proud of the fact his corn goes to enhance value-added opportunities. “All
the corn I produce, goes to Golden Triangle Energy, an ethanol plant in
northwestern Missouri, and LifeLine Foods, a producer-owned corn mill,” he
said.
McCauley is a past
chairman of the Kansas Corn Commission and has been on the Kansas checkoff
board for the six years. Within NCGA, he is currently the vice chairman of
the Ethanol Committee, as well as a past member of the Research and
Development Action Team, the Biotech Working Group, and the Ethanol Task
Force.
“I’ve also been a Corn
Congress delegate since its inception,” said McCauley, “so I have seen the
process evolve into what it is now.”
Being a Corn Board
member can be very time-consuming, but that’s not an issue for McCauley.
“I’m used to spending time away from the farm with my work on the Ethanol
Committee and the Research and Business Development Action Team,” he said.
“I’m prepared to give the Corn Board the time needed to ensure we give
proper representation to the nation’s corn growers.”
McCauley concluded by
saying, “Being a part of those NCGA teams and being involved at the
state-level has made me realize how important our organization is and I
want to do whatever I’m needed to do to make sure it continues to be an
important organization in representing the issues affecting corn
growers.”
NCGA THIS WEEK
- May 22-23 NCGA
staff will be involved in a two-day all-staff meeting in Chesterfield,
Mo.
- May 22-24 NCGA Corn
Board member John Tibbits will be in Tampa, Fla., attending the USMEF
Board of Directors Meeting & International Buyer's Conference
- May 24 NCGA Vice
President of Marketing Brian Stockman and Director of Development Tom
Slunecka will attend a Commodity Classic Strategy meeting in St.
Louis
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