The National Corn Growers Association today thanked President Obama and members of Congress for their action this week on tax legislation that extends the Volumetric Ethanol Excise Tax Credit and provides an important estate tax exemption.
"We are very happy to see the one-year extension of the ethanol blender's credit and a two year reformed estate tax move," said NCGA President Bart Schott, a corn farmer in Kulm, N.D. "These extensions were among the top priorities for our organization in 2010; failure to renew both would have done much to harm our nation's rural economy and the future of America's farms."
In addition to providing and supporting 400,000 jobs here in the United States, ethanol is an important part of our nation's energy mix because it reduces dependence on foreign oil and cuts greenhouse gas emissions, Schott added. The U.S. Environmental Protection Agency estimates that corn ethanol provides up to a 52 percent reduction in greenhouse gases compared to gasoline.
"We would like to thank Senators Charles Grassley and Kent Conrad for their important work on this issue. Senator Grassley in particular has worked for many years to maintain the VEETC at the current rate of 45 cents," Schott said. "With VEETC extended for one year, we are also focused on other initiatives to help ethanol expand and compete. This includes expanding the availability of flex-fuel vehicles and blender pumps, as well as working to suspend the so-called international indirect land use change penalties on corn ethanol."
The legislation also provides an exemption and top rate for the estate tax, set to expire at the end of 2010, for two years. Instead of reverting to the $1 million exemption and 55 percent top rate, the legislation provides for a $5 million exemption and a top rate of 35 percent. If the estate tax had not been reformed, many of America's farmers would have been forced to sell assets such as land, machinery and buildings to pay the inheritance tax.
"The estate tax reform will allow greater flexibility when planning for the future and farmers won't have to worry about losing their land to pay an inheritance tax," Schott said. "Farmers now have a better ability to pass their land onto the next generation and we can keep America's farms in our families."
Importantly, the bill also extends all existing individual income tax, capital gains, dividend tax rates for two years and extends dozens of short-term tax breaks including the deduction for state and local income taxes. The bill also features measures aimed at stimulating the economy, including a provision to allow businesses to depreciate 100 percent of the cost of new capital investments made in 2011 and a cut in the Social Security payroll tax on the employee side from 6.2 percent of wages to 4.2 percent.
Action Team Meetings Highlight Accomplishments, Look Toward the Future
Dozens of corn growers who are respected leaders in their industry and actively involved in NCGA gathered in St. Louis last week for a round of meetings to begin work on their issue areas for 2011. Over the course of the week the growers not only delved into the issues that will significantly impact growers in the months ahead, they also formed the relationships and bonds that bring about the cohesive, forward-thinking leadership for which the organization is known.
"Coming together as a group to hash out new ideas and explore our current situation always reinvigorates our leadership," said NCGA President Bart Schott. "Leaving the meetings, I feel confident that our organization is headed in the right direction. In 2011, we will redouble efforts to bring the various groups working in support of agriculture together and continue to act as a catalyst for collaboration across our industry."
NCGA's six action teams and committees define, implement and measure program actions in their areas of expertise - biotechnology and trade policy, ethanol, public policy, production and stewardship, research and business development, and grower services.
For coverage of each team's activities, click here.
New Refuge Compliance Tool Unveiled
Also during last week's meetings, the next-generation Insect Resistance Management refuge calculator was presented to growers. The product of a collaboration between agribusiness and NCGA, under the leadership of the Trade Policy and Biotechnology Action Team, the calculator allows users to easily clarify refuge options and develop a plan, even for the latest products available.
"What I find so exciting about the Insect Resistance Management refuge calculator is that it makes short and easy work of what had become a complex process. The array of new technologies available to farmers is accompanied by a broad, complex variety of refuge requirements," said the team's Corn Board Liason, Mike Geske. "I see this tool as universally beneficial in that it provides growers already familiar with their own particular refuge requirements with an extra level of confidence and reassurance while clarifying options for those less familiar and allowing them to be the best stewards of their land."
In recent years, the introduction of new refuge systems has given growers more options in setting up their refuge. NCGA's calculator was developed as a tool to clarify those options with growers and show them how to execute the requirements properly.
The benefits of this new tool include all commercial Bt products on the market and features a trait selection process that allows farmers to run several planting scenarios on a field-by-field basis. Its updated interface and clearer planting options makes refuge calculation simpler to do. To download the NCGA calculator, please visit www.irmcalculator.com.
The refuge calculator is a tool that should be used in conjunction with the applicable seed manufacturer's Stewardship Guide, which explains acceptable refuge configurations in more detail. For additional information on planting specific corn hybrids, please consult with the appropriate manufacturer's representative.
Industry experts from the Agricultural Biotechnology Stewardship Technical Committee, which includes representatives from Dow AgroSciences LLC, Monsanto Company, Pioneer Hi-Bred International, Inc., and Syngenta Seeds Inc., were consulted in developing the new and improved calculator.
New Report Finds EPA Nutrient Diet Calculation a Recipe for Disaster
A new report seriously questions the data used by the Environmental Protection Agency to set pollution limits for the Chesapeake Bay. Commissioned by a coalition of agricultural groups including NCGA, the report contrasts EPA's estimate of the Bay's "nutrient diet" with those of the U.S. Department of Agriculture. It asks EPA to not issue a rule setting the Bay's "pollution loads" until the inconsistencies can be reconciled.
"If USDA's numbers are correct, agriculture has already significantly surpassed EPA targets for reductions in sediment and phosphorus," said NCGA Director of Public Policy Rod Snyder. "It is crucial that farmers in the Bay watershed receive appropriate credit for their efforts to be good stewards of our land and water resources."
Click here for the LimnoTech report.
The report calls for a "timeout" on the Bay TMDL to make sure that EPA does not push the use of its pollutant estimation model beyond its original design.
USDA estimates that seven percent of cropped acres are under conventional tillage, five percent of cropped acres have a level of tillage between conservation tillage and conventional tillage, and 88 percent of cropped acres are under conservation tillage (mulch till or no-till) practices. EPA estimates that 50 percent of cropped acres are under conventional tillage and 50 percent are under conservation practices.
For a more in-depth analysis, click here.
Now Accepting Corn Board Applications
The NCGA Nominating Committee reminds growers that less than one month remains to apply for the 2012 Corn Board. Corn Board service provides members an opportunity to become an integral part of the organization's leadership. Click here for the application, which provides complete information on requirements, responsibilities and deadlines.
Applications are due Friday, Jan. 14. Nominated candidates will be introduced at the February 2011 Corn Congress meeting, held in conjunction with the Commodity Classic in Tampa, Fla. Corn Board members will be elected at the July 2011 Corn Congress in Washington, D.C., and the new terms begin Oct. 1.
For a look at the responsibilities of Corn Board members and NCGA President Bart Schott's experience as a board member, click here.
For more information, growers may contact Kathy Baker at NCGA's St. Louis office at (636) 733-9004.
Land-Efficient Animal Feeds Enable Large Environmental and Energy Benefits
There is an intense ongoing debate regarding the potential scale of biofuel production without creating adverse effects on food supply. In a study recently published by the American Chemical Society, Dr. Bruce Dale and others explore the possibility of three land-efficient technologies for producing food (actually animal feed), including leaf protein concentrates, pretreated forages, and double crops to increase the total amount of plant biomass available for biofuels.
"The U.S. is the world's largest petroleum user and also a significant exporter of agricultural commodities," the researchers state. "Our analysis shows that the U.S. can produce very large amounts of biofuels, maintain domestic food supplies, continue our contribution to international food supplies, increase soil fertility, and significantly reduce greenhouse gases. If so, then integrating biofuel production with animal feed production may also be a pathway available to many other countries."
Click here for the whole story.
Click here for the full report.
Video Spotlights NCGA's Ag Energy Symposium in Washington
A new video from NCGA provides a summary look at the recent Agricultural Energy Symposium, a one-day research and policy briefing on hot ethanol issues held in Washington. The event provided an up-close and in-depth look at key bioenergy and biofuels sustainability issues, helping bridge the gap between research and policy on such hot topics as land use change, carbon neutrality, lifecycle analysis and biomass sources.
Click here to view the video at NCGA's YouTube Channel.
The video covers the four main panel topics at the November symposium:
During the Carbon Neutrality panel, experts discussed the ways in which the U.S. corn crop, both grain and stover, absorbs and sequesters carbon. Corn growers play an important and positive role in helping reduce greenhouse gas emissions.
The Biomass panel provided an in-depth look at how domestic renewable biomass from crop residues and forests provide numerous opportunities to supply American consumers with energy and fuel.
Experts also provided a complete picture of the impact of fuels during the Life Cycle Analysis panel. Speakers looked at the numerous ways of calculating fuel impacts and the importance of conducting analysis that is consistent across all fuel types.
And during the International Land Use Change panel, experts addressed the legislative and regulatory policies behind issue of land use change. With biomass production per unit of land continuing to increase and modeled impacts not coming to fruition, an agreed-upon approach has yet to be determined.
For the whole story, click here.