NCGA Corn Action News: Friday, October 16, 2009

NCGA Responds to Inaccurate Opinion Piece

The National Corn Growers Association responded to an opinion piece that ran Wednesday in USA Today, asserting that products containing high fructose corn syrup should be taxed at a higher rate than other food products. NCGA corrected the many untruths presented in the piece and stressed the importance of a balanced approach and personal responsibility.

Click here for the letter.

In his response, NCGA President Darrin Ihnen, a grower from Hurley, S.D., demonstrated clearly how the article "relies on faulty information, draws irresponsible conclusions and attempts to convince consumers to eschew any type of personal responsibility."

For example, Ihnen explained that "95 percent of all corn farms in the U.S. are family farms" and not the "faceless industrial operations" which many would prefer to criticize. Hence, attacks against corn are actually direct attacks on the hard working growers who act as "guardians of a proud tradition of American farming and provide the U.S. with some of the highest quality, most affordable food in the world."

The response also stressed the importance that moderation and exercise play in combating the obesity epidemic. Ihnen noted that "corn sweetener, like all sugars, is healthy in moderation" and concluded that, while a punitive tax may seem a simpler solution, it does not produce healthy, responsible adults."

Ohio Becomes Rallying Point on Care Issue

Ohio Governor Ted Strickland, center, joins Ohio Corn Board member Mark Thomas, right, and Brenda Hastings of Ohio's dairy farmers in a rally supporting the state's Issue 2 proposed constitutional amendment.

Hundreds of Ohio farmers, livestock producers, politicians and consumers gathered at the state's 4-H Center Wednesday to rally in support of Issue 2, which offers the promise of safe, locally grown food to consumers and continued viability for agriculture in the Buckeye state.

This November, Ohio voters will deal with a constitutional amendment with profound implications for the state's livestock and crop farmers and their compatriots nationwide. Voters will decide if the Ohio Livestock Care Standards Board should be established. The board, made up of Ohio livestock producers, scientists, academics, local animal welfare representative and consumers alike, will determine how animals will be raised within the state's borders, rather than outside interests with a political agenda.

While a number of states - most recently, California - have established inflexible and impractical rules for how livestock are housed, Ohio has chosen not to negotiate and take the issue to the public who will feel the pain if the state's number one industry is hampered to operate their businesses in a way that is both productive and practical.

Livestock eat more than 100 million bushels of corn in Ohio, a reflection of the scope of the industry which produced 7.1 billion eggs, 294 million pounds of chicken, 966 million pounds of pork and 500 million pounds of beef.

Cold, Wet Fall Impedes Harvest

The unseasonably cool, wet weather much of the Corn Belt experienced this year has led to delays in harvest, the National Corn Growers Association said today, commenting on new reports from the U.S. Department of Agriculture that growers are 22 percentage points behind the five-year average for corn acreage harvested at this time. With further rain predicted, many farmers may not be able to compensate for delays in the near future.

Despite the fact that the USDA projects a record corn yield and near-record corn production, its crop progress report released today indicates that weather is delaying significant progress harvesting in many parts of the country. States such as Missouri, Tennessee and Kentucky have seen area harvested lag 35 percent behind average. Illinois, whose harvest has been affected most significantly, has harvested only 6 percent of corn acres grown. On average, producers in that state have completed 56 percent of their corn harvest by October 11. The corn harvest has not begun as of yet in North Dakota.

Although many growers choose to remain optimistic, continued unfavorable conditions could affect future projections for production, yields and price.

NCGA CEO Elected to Waterways Council Board

National Corn Growers Association CEO Rick Tolman was elected to the board of directors of the Waterways Council, the national public policy organization that advocates for a properly funded and well-maintained system of inland waterways and ports. Tolman's appointment demonstrates NCGA's commitment to improve the waterways important for the prompt, safe and cost-effective shipment of U.S. agricultural goods.

NCGA leadership has expressed a strong interest in increasing the organization's focus on transportation, and helped spearhead the passage of 2007's Water Resources Development Act to authorize much-needed repairs on an aging lock-and-dam system on the Upper Mississippi and Illinois Rivers. Currently, the group seeks to gain appropriations for the project. Through increased involvement in the Waterways Council, NCGA will be able to work with other organizations to promote transportation improvements that will benefit the agriculture industry as a whole.

The Waterways Council educates decision-makers in state and federal governments, the news media and the general public about the critical importance of our nation's inland waterways and the need to sustain and increase their reliability now and for our future.

For more information about the WCI, please visit www.waterwayscouncil.org.

USGC Bullish on Coarse Grains Exports

The U.S. Grains Council said the outlook for U.S. coarse grains exports this marketing year looks "cheerful." The U.S. Department of Agriculture's most recent World Agricultural Supply and Demand Estimates report, released Oct. 9, indicates global corn production down 59 million bushels this year, with reductions in China, Russia and a number of smaller countries.

"Global demand is strong and global production is projected down," said USGC Special Assistant for Planning, Evaluation and Projects Erick Erickson. "This leaves U.S. farmers in a competitive position considering USDA projects a near record corn crop of 13 billion bushels." USDA's report projects corn exports down 50 million bushels from last month's report. Erickson said while exports are projected lower, the estimated 2.1 billion bushels is still greater than last year's 1.8 billion bushels.

Erickson said the U.S. dollar continues to weaken even as the economy begins to recover. This will also be a contributing factor to making U.S. coarse grains attractive to global end-users. Specifically, the value of the U.S. dollar against other major currencies has been on a slippery slope throughout the global financial crisis, and at times the falls have been steeper as signs of recovery become stronger.