NCGA Opposes House Cap-and-Trade Legislation
 National Corn Growers Association President Darrin Ihnen has released the following statement related to the decision announced today to oppose H.R. 2454, The American Clean Energy and Security Act.
"Since the passage of this bill by the U.S. House of Representatives in June 2009, the National Corn Growers Association has maintained a neutral position on the legislation pending further review. Although our neutrality has often put us at odds with the majority of other mainstream agricultural groups, we believe it was critical to remain engaged with lawmakers while the economic impacts were analyzed, and last year NCGA retained Informa Economics of Memphis, Tenn., to study the potential impacts on agriculture.
"Now, based on the recently completed economic analysis, NCGA has no choice but to oppose H.R. 2454. The results of the Informa study indicates that every corn grower in the country will experience increased costs of production resulting from H.R. 2454. In the early years of this legislation, these higher production costs will be relatively minor. However, over time these prices will significantly increase, placing an unnecessary burden on growers.
"Second, while this legislation offers opportunities to produce carbon offsets, this study demonstrates that not all growers will be able to participate. The single greatest offset opportunity is using continuous no-till. However, not every corn grower is able to adopt no-till practices. The ability to adopt continuous no-till production is driven by both economic and agronomic factors. Those growers unable to adopt no-till production will experience serious economic hardship resulting from H.R. 2454. This burden will fall disproportionally on growers in the northern Corn Belt.
"Finally, this analysis indicates H.R. 2454 will result in diverting productive farmland into afforestation (newly planted forests) or perennial grasses solely to gain offset credits. Although our analysis shows dramatically less acreage diversion than noted by the U.S. Department of Agriculture, it still diverts land needed to feed and fuel a hungry world and therefore affects both food security and energy security.
"While NCGA opposes H.R. 2454, we are very appreciative to the leadership provided by House Agriculture Committee Chairman Collin Peterson and the work of other allies in the House for their efforts to make this legislation as friendly to farmers as possible. NCGA still remains neutral on cap and trade as a policy issue, and will continue to work with U.S. Senate staff to craft legislation that benefits agriculture."
Click here for the Informa Economics analysis of H.R. 2454
NCGA Supports Efforts to Prevent EPA Regulations
NCGA, along with more than 100 other agricultural organizations, sent a letter this week to Sen. Lisa Murkowski (R-AK) supporting her resolution to prevent the U.S. Environmental Protection Agency from regulating greenhouse gases under the Clean Air Act.
"Both the current and past administrations have acknowledged that the Clean Air Act is not the appropriate vehicle for establishing greenhouse gas policy," the joint letter states. "Such regulatory actions will carry severe consequences for the U.S. economy, including America's farmers and ranchers, through increased input costs and international market disparities."
Sen. Murkowski is introducing her resolution after the EPA's December endangerment finding stated that escalated levels of greenhouse gases in the atmosphere are endangering human health and the environment through climate change. The agency has scheduled the release of several regulations in the coming months to limit carbon emissions across various sectors of the economy, which could include livestock agriculture. Timing for the introduction of the resolution is unknown at this time.
"The compliance costs for CAA programs would be overwhelming as millions of entities, including farms and ranches, would be subject to burdensome regulations," the letter states. "We strongly support your efforts to prevent the EPA from moving forward with its endangerment finding and urge Senate approval of your resolution."
Click here for a copy of the letter.
NCGA Studies Corn's Role in Environment
NCGA's Climate Change Task Force held a meeting this week at Oak Ridge National Laboratory, a Department of Energy research center. At the conference, the CCTF gained valuable insight into differing views on sustainability, the effect of crops on greenhouse gas emissions, updated modeling for land use change and an update on the Billion Ton Study
Task force members heard from such government experts on the latest research into climate change such as Virginia Dale, the director for the Center for Bioenergy Sustainability and Debo Oladosu, Research Economist working on the economnics of biofuels and other energy-related issues. Dale gave a thought-provoking presentation on the social, economic and environmental aspects of sustainable bioenergy. Oladosu also explained how land use change modeling can be improved by integrating increased yields and other agricultural technologies, as well as assumptions that are more aligned with U.S. biofuels policy and data. In doing so, Oladosu thinks that the subsequent modeling will provide a better depiction of modern agriculture and the implications of biofuels production.
For the whole story, click here.
Expert Stresses Importance of Industry Growth
 Grower leaders who came to St. Louis for the NCGA's Priority and Policy Conference last week were treated to a series of talks by Bill Hudson, founder of The ProExporter Network and one of the nation's foremost experts on agricultural economics and forecasting. In his presentations, Hudson reviewed the history and importance of the world grain trade and the implications of policy considerations.
"If we don't have grain trade, we don't have anything," Hudson said as he kicked off his remarks. "The United States has 5 percent of the world's population and 20 percent of the world's agricultural capacity for production."
For the whole story, please click here. |
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This Week's NCGA Blog Highlights
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A Look at the Week Ahead... |
- On Sunday, Jan. 24, National Corn Growers Association launches the Washington D.C. phase of the Leadership at Its Best program. This academy will run through Jan. 27.
- During the Leadership Academy, NCGA growers will be advocating on Capital Hill.
- On Sunday, Jan. 24 and Monday, Jan. 25, Director of Biofuel Programs and Business Development Jamey Cline will attend the Annual Iowa Renewable Fuels Summit in Des Moines.
- Tuesday, Jan. 26, Corn Board member Mike Geske will speak during the Colorado Corn Growers Association Annual Meeting about NCGA activities in 2009.
- Wednesday, Jan. 27 through Friday, Jan. 29, NCGA President Darrin Ihnen will attend the Wisconsin Corn/Soy Expo where he will update attendees on NCGA's position on climate change legislation and higher ethanol blends.
- Also from Jan. 27 through Jan. 29, Corn Board members Mike Geske and Jamie Jamison will attend the National Cattlemens Beef Association Annual Meeting in San Antonio.
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