Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous, the president of the National Corn Growers Association said. At a time of economic struggle for millions of Americans, any proposal that will kill jobs, damage the environment and raise energy prices needs to be opposed vehemently.

"It is scandalous, ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvation," said NCGA President Bart Schott. "Perhaps if Nestle is so concerned about food prices, its board will consider putting more of their $35.7 billion in 2010 profits back into poor communities. Just their profits alone represent more than half the entire farm value of the 2010 U.S. corn crop."

Schott was reacting to comments by Nestle Chairman Peter Brabeck-Letmathe at a March 22 meeting of the Council on Foreign Relations. Schott also challenged Brabeck-Letmathe to take the time to study facts and figures before making ridiculous comments about an industry that he clearly knows little about, nor bothered to study up on. "Mr. Brabeck-Letmathe took a swipe at the comments of the U.S. Secretary of Agriculture, Tom Vilsack, when it is Mr. Brabeck-Letmathe's numbers that are erroneous. The facts support the messages of Mr. Vilsack with respect to biofuels," said Schott. "Brabeck-Letmathe grossly distorted the amount of water used for biofuels production, and seems unaware that Southern Africa and India are surplus corn this year and exporting large quantities. He also took a cheap shot at ethanol being the cause of unrest in the Middle East, which completely belittles the root causes of that unrest - a thirst for freedom, a desire for economic reform and years of political and economic tyranny."

Schott further questioned Brabeck-Letmathe's comments about the pace of agricultural production. "In the United States we are seeing a much higher corn yield than elsewhere, a higher yield that efficiently uses each acre of land in a very sustainable way, because of advances in technology from the seed itself to the GPS that helps steer our combines," Schott said. "Many of these technologies are not allowed in other parts of the world, despite their safety and economic or environmental efficiency. This needs to stop. Farmers around the globe should have access to the same technology that has made our cornfields the best in the world."

Using corn for ethanol production has helped keep fuel prices from getting even higher, while supporting tens of thousands of jobs and decreasing greenhouse gas emissions, Schott noted. And when it comes to food prices, numerous reports since the 2008 price spike have shown that ethanol demand was not a major factor. The general consensus is that commodity market speculation, higher energy prices and other causes were more to blame.

A few examples from around the world:

· The United Kingdom's Department for Environment, Food and Rural Affairs issued a report in March 2010 that discounted biofuels impact, stating "Available evidence suggests that biofuels had a relatively small contribution to the 2008 spike in agricultural commodity prices. Studies which have found a large biofuel impact across agricultural commodities have often considered too few variables, relied on statistical associations or made unrealistic or inconsistent assumptions."

· In a July 2010 report, the World Bank stated that "the effect of biofuels on food prices has not been as large as originally thought, but that the use of commodities by financial investors may have been partly responsible for the 2007-08 spike."

"It's time for the food processing industry, which has been using higher grain prices to justify its price increases, to explain to hungry families why they have to eat less so those who can afford company stock can make more money," Schott said. "Profiteering off world hunger needs to end, and that is what is truly immoral. If there is a 'food versus fuel' crisis it exists because families are being forced to decide which of the two they can afford - gasoline from Big Oil or food from companies like these. That's something I challenge Nestle to step forward and help alleviate. They certainly can afford it."

Global Ethanol Production Forecast to Reduce Green House Gas Emissions by 105 Million Tons in 2011

In 2011, ethanol production will reduce global greenhouse gas emissions by 105 million tons worldwide according to new data released by (S&T)2 Consultants Inc. This is equivalent to a reduction of more than 287,000 tons every day.

"This data supports what corn farmers across the country have known for many years now, that ethanol is an environmentally responsible, affordable, domestic energy source," said NCGA President Bart Schott, a grower from Kulm, N.D. "With more conclusive evidence coming to light each day, it becomes more and more obvious that ethanol is a key to meeting not only our own, but the world's, energy needs."

Specifically:

· World ethanol production is currently replacing the need for one million barrels of crude oil per day, which would otherwise create 545,000 tons of greenhouse gas emissions per day.

· In 2010, world ethanol production was 22.63 billion gallons and is estimated to have reduced greenhouse gas emissions by 101 million tons, a reduction of more than 276,000 tons per day. The total reduction would be the equivalent of taking 18.7 million cars off the road or of the total greenhouse gas emissions reported by Austria in 2005.

· In cooperation with F.O. Licht, the Global Renewable Fuels Alliance predicts global ethanol production this year will grow by more than three percent, totaling 23.43 billion gallons. This increase in production will result in a nine percent growth in greenhouse gas reductions.

The data, announced in a press release sent by the Global Renewable Fuels Alliance, was released as the biofuels industry gathered for the annual World Biofuels Markets conference. GRFA is a non-profit group dedicated to promoting biofuel-friendly policies. Alliance members represent more than 65% of the global biofuels production from 44 countries.

Grower Interests Represented at House Panel on Chesapeake Bay Conservation Practices

Last week, Maryland Grain Producers Association Executive Director Lynne Hoot testified before the House Agriculture Subcommittee on Conservation, Energy and Forestry. The hearing focused on agriculture's ongoing efforts to meet EPA's Total Maximum Daily Load for the Chesapeake Bay Watershed.

"The agriculture industry has consistently outpaced most other sectors in reducing nutrient loads," Hoot said. "In the latest Chesapeake Bay model run, Maryland farmers had reduced nitrogen loads by 62 percent, phosphorus loads by 73 percent and sediment loads to the Bay by 59 percent."

Throughout her testimony, Hoot gave an overview of the voluntary conservation practices that have been broadly adopted in Maryland, but also emphasized that water quality goals could not be met without significant USDA funding. She also pointed out that EPA's time frame for the Phase II Watershed Improvement Plans (WIPs) is unrealistic. In less than six months, Maryland must develop 58 WIPs, representing every county and all Bay sub-watersheds.

"This fall, Maryland farmers broke all records and installed roughly 400,000 acres of cover crops to protect water quality," Hoot said. "Maryland boasts having over 80 percent no-till cultivation, which is one of the highest adoption rates of any state in the country. The country is watching us; we want to prove that agriculture can do what is necessary as long as it is reasonable, science-based and we are provided with adequate technical and financial assistance."

Leadership program presented to South Africa Grain

As a part of efforts to foster international understanding and cooperation among corn growers on common issues, CEO Rick Tolman was invited to address Grain South Africa's most recent Congress, an event similar to the Commodity Classic and NCGA's Corn Congress held earlier this month.  While there, Tolman presented on the issues facing U.S. growers, outlined how NCGA promotes farmer interests and conversed with GSA representatives and meeting attendees on the goals and challenges both groups face. 
 
"Like us, South African farmers are under pressure to address myths and misinformation about food and agriculture," Tolman said. "These growers were eager to learn how farmers and farm organizations in the United States are sharing our message on agriculture and how we address some key issues."
 
South African growers, like farmers in the United States, also face a barrage of unfounded media assaults on biotechnology, environmental sustainability and farming practices.

"Although many may view growers in other parts of the world as competition, we share many commonalities in that we must work together to meet the rapidly growing demand for grain globally," Tolman said of his meetings in South Africa. "Likewise, we combat similar misinformation.  There are many cases in which we can help each other."
 
Grain South Africa and other meeting attendees were extremely interested in NCGA farmer-leader development programs, such as the Syngenta co-sponsored Leadership at Its Best program, which cultivate the skills farmers need to communicate with media and policymakers and lead their respective industries.
 
"NCGA leadership programs, and similar programs with other farm and commodity groups, are incredibly successful in ensuring that U.S. agriculture has individuals across all production sectors that capably engage policymakers and effectively represent their industry," Tolman said. "We almost take it for granted but, in reality, the success of these programs translates into real-world results as family farmers step forward to lead their industry in efforts that create and maintain their markets."
 
While Grain South Africa supports biotechnology, public opinion remains an issue in the region.  The group hopes to build upon previous successes to broaden support for this vital technology that increases yields while decreasing inputs and thus allows for production gains without increased land usage.  Notably, the group recognized the U.S. Grains Council's historical and ongoing assistance in addressing such issues.
 
"GSA and the farmers that they represent feel they are a toe-hold in Africa for biotechnology, and some of that is credit to the Council's trade servicing work several years ago," Tolman said. "While challenges remain, South Africa utilizes biotechnology and has a regulatory framework in place."

According to the International Service for the Acquisition of Agri-Biotech Applications, South Africa planted 2.2 million hectares of biotech crops in 2010 that were comprised of corn, soybeans and cotton.  Biotechnology will prove key to meeting growing global demand that results from both population growth and the dietary improvements. Biotechnology increases total production through increasing average yields per land unit while simultaneously decreasing environmental concerns and crop input usage.  In doing so, it helps keep farming on the 55 percent of arable land already in production therefore preserving natural habitats such as forests and prairies. 

Formed in 1999, Grain South Africa is comprised of corn, soybean, sunflower, groundnuts, wheat, barley, oats and sorghum farmers. Its annual Congress was held in Bothaville, South Africa, just southeast of Johannesburg.

Where the Pacific and Corn Belt Meet

NCGA's Production and Stewardship Action Team held meetings last week in the Pacific Northwest. The team's projects focus on corn production, environmental stewardship, transportation and livestock issues. Presentations on water quality, railroad and export infrastructure improvements and team sponsored projects were given at the meetings. Team members also visited with local growers and toured the new export grain elevator under construction in Longview, Wash. and the Bonneville Lock and Dam on the lower Columbia River.

"Increased demand for U.S. agricultural products and a lag in infrastructure investment have congested our freight transportation system and challenged our ability to efficiently deliver grain to our export customers, particularly in Asia," commented Team Chair Steve Ebke. "U.S. farmers are experiencing record yields even in weather-challenged growing seasons. We came to the Pacific Northwest to get a better understanding of the industry and government initiatives that are helping us move greater volumes of product out of the country."

The Longview joint venture with Bunge North America, ITOCHU of Japan and STX Pan Ocean of Korea was formed to construct the first U.S. grain terminal to be built since the 1990s. This two-year project is scheduled for completion in June of this year. Team members were briefed on Asian export grain demand and the project's challenges and successes by project representative Richard Van Sickle.

The team also traveled to the Bonneville to view the dam's fish conservation efforts and tour the lock and hydroelectric power facilities. Army Corps of Engineers Ranger Bryan McCavitt also spent time discussing the challenges of balancing navigation and power needs with wildlife protection.

Charles Krauthammer takes a moment to meet the NCGA officers (from left: Garry Niemeyer, Darrin Ihnen, Charles Krauthammer and Bart Schott)

AIC Cultivates Understanding, Cooperation on Key Issues

Last week, 22 representatives of 13 agribusinesses gathered in Washington, DC for NCGA Agri-Industry Council's biannual meeting. Over the course of two days, attendees received updates on key NCGA programs such as the American Ethanol-NASCAR partnership, the U.S. Farmers and Ranchers Alliance and the state-national association collaborative Image and Activism Campaign. Additionally, they discussed topics of special importance to the entire agricultural community right now, such as biofuels, fertilizer pricing and availability and the current political climate.

"The work done in AIC meetings is crucial to helping NCGA fulfill its mission of creating and maintaining opportunities for corn growers," said NCGA Chairman and AIC Co-Chair Darrin Ihnen. "Only through unified position throughout the agri-industry will we make our voices loud enough to reach the best possible outcomes for growers as we face the challenging political landscape."

Pulitzer Prize Winning Journalist Charles Krauthammer, a columnist for the Washington Post, provided attendees with his insight into the current political climate. Krauthammer, an influential conservative, provided context for the sweeping changes brought about in the 2010 election cycle and elucidated on how this might play out in the foreseeable future. During the Issue Spotlight session, NPK Fertilizer Advisory Service President and Senior Economist David Asbridge walked participants through the current fertilizer pricing and availability situation in the U.S. Stressing how international factors influence fertilizer prices, Asbridge looked at the future of both fertilizer and crop prices.

The group will meet again in August.

NCGA's AIC works to ensure that stakeholders throughout the industry exchange information on key issues and work collectively to ensure fair and equitable policies that foster continued growth. To learn more about NCGA, please visit www.ncga.com.