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Friday, April 8, 2011

Join NCGA and Support Fuel Choice for All Americans

 

Whether it's breakfast cereal or stations on the radio, America is awash in choice. We can switch brands and music whenever we want. But when we pull the grocery-hauler up to the gas station, music blaring, we have precious little choice in our fuels. It's time for that to change, and you can help us. Just click here to send a letter to the editor of your local paper promoting fuel choice. 

  

About Us

Founded in 1957, the National Corn Growers Association (NCGA) represents approximately 35,000 dues-paying corn growers and the interests of more than 300,000 farmers who contribute through corn checkoff programs in their states. NCGA and its 48 affiliated state associations and checkoff organizations work together to help protect and advance corn growers' interests.
 
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American Ethanol Colors to Fly at Texas on RAB Racing Toyota Driven by Kenny Wallace

Kenny Wallace and Rick Tolman
Kenny Wallace and NCGA CEO Rick Tolman sign the deal finalizing American Ethanol's sponsorship of the E-15 powered car, which will compete tonight.

With the support of the National Corn Growers Association and others, American Ethanol's profile will be front and center during tonight's NASCAR Nationwide Series race at Texas Motor Speedway.

Having Wallace as the driver is a great benefit, said NCGA President Bart Schott. "The RAB Racing team is racing very competitively this season and they are proving to be great proponents for Sunoco Green E15. Kenny understands the important economic and environmental contributions of the nation's ethanol producers and family corn farmers. As a passionate and media-savvy spokesman, he is helping us reach millions of driving consumers with a positive message about domestic ethanol."

American Ethanol will be the primary sponsor on the black and green No. 09 American Ethanol Toyota Camry which will be driven by Wallace, and seen by thousands of fans at the race and millions more who will tune in to the O'Reilly Auto Parts 300 to be featured at 7:30 p.m. CDT on ESPN2.

In the 2011 season, NASCAR's three national touring series switched to Sunoco Green E15, a cleaner-burning high-performance fuel blended with 15 percent American ethanol from corn grown in the United States.

"It is an honor to be chosen as an American Ethanol spokesperson," Wallace said. "I am very passionate about this subject and excited to spread true knowledge about American Ethanol throughout the United States. I'm proud and excited to go to Texas with new sponsor American Ethanol, and most of all I'm looking forward to getting my 10th NASCAR Nationwide Series win."

"We're proud that American Ethanol's partnership with the RAB Racing team will help educate NASCAR fans about ethanol's benefits for our nation's environment, economy, and energy security," said Tom Buis, CEO of Growth Energy. "There's no sport more American than NASCAR and there's no fuel more American than ethanol."

Ethanol is a commercially-viable alternative that America currently has to strengthen the nation's energy independence, strengthening our economy and creating American jobs - studies have shown that for every $1 sent overseas for oil, $1.55 leaves the U.S. economy.

American Ethanol helps take NASCAR's environmental commitment to the next level. The efforts of NASCAR and American Ethanol are projected to expose 80 million people to the benefits of ethanol and link millions of American farmers with the sport of NASCAR.

Learn more about American Ethanol at www.americanethanolracing.com.

NCGA Salutes More Choices at the Pump

Agriculture Secretary Tom Vilsack today announced that Americans will soon have more choices at the fuel pump, something long sought by the National Corn Growers Association. The U.S. Department of Agriculture is issuing a rule to clarify that renewable energy systems in the federal Rural Energy for America Program include flexible fuel pumps, sometimes referred to as "blender pumps."

"Fuel station owners will now have incentives to install blender pumps," said NCGA President Bart Schott. "All America needs is the infrastructure and the flex-fuel vehicles to take advantage of what the domestic ethanol industry is capable of producing."

The Obama administration has set a goal of installing 10,000 flexible fuel pumps nationwide within five years, Vilsack noted. "Flex-fuel pumps will give Americans a choice to purchase domestically produced renewable transportation fuels," he said. "USDA's energy programs are helping to build a clean energy economy, while creating green jobs here at home and making our nation more energy secure in the long-term."

Currently, most gasoline sold in the United States is a mix of 10 percent ethanol. About 3.5 percent of the 250 million vehicles on U.S. roads are flex-fuel vehicles that can be fueled with E-85, a blend of 85 percent ethanol and 15 percent gasoline, with a higher percentage on the way, and the U.S. Environmental Protection Agency has found 15 percent ethanol blends safe for vehicles from model years 2001 or newer. It's time to make that fuel available for these cars, and higher levels more available for consumers who choose them for their flex-fuel vehicles, Schott said.

USDA Keeps Corn Surplus Unchanged, Notes Higher Global Supply

In its monthly report on agricultural supply and demand, the U.S. Department of Agriculture made no changes to its estimate of how much corn will be carried out from the domestic 2010 corn supply and forecast an increased global grain supply. In addition, USDA made a small but important change that reflects the growing importance of ethanol coproducts such as distillers grains, something requested by the Governor's Biofuels Coalition and supported by the National Corn Growers Association.

"As we are now into our important planting season and expecting to plant more corn acres, this report is welcome news that will help soothe some market concerns about corn and grain supply," said NCGA President Bart Schott, a grower in Kulm, N.D. "At a time of increased demand, it is also good to see that the global supply has increased."

The USDA reports that U.S. corn ending stocks remain at 675 million bushels, or 17.1 million metric tons, with minor changes in demand segments that balance out compared to the March report. Globally, coarse grain supplies are projected by USDA at 6.3 million tons higher this month and global corn production is raised 1.2 million metric tons. The average price U.S. farmers will receive for corn during the current marketing year was raised a nickel, to $5.45 per bushel, still well below the price level of speculative corn futures.

For the first time in the monthly report, the USDA also noted the breadth of its demand categories. The demand category that was referred to in the past as "ethanol for fuel" has been changed to "ethanol and by-products," and a footnote mentions the key coproducts, distillers grains, corn gluten feed, corn gluten meal and corn oil.

In March, the Governor's Biofuels Coalition, a coalition of 34 state governors from Washington to New York to Texas called on U.S. Agriculture Secretary Tom Vilsack to alter the way his department reports the use of corn for ethanol production. They argued that it downplays the growing importance of distillers grains to meet livestock feed demand and provides an inaccurate rhetorical weapon for ethanol opponents. NCGA joined them in this request.

"We're pleased to see the USDA make this change," Schott said. "A significant amount of the corn that goes into ethanol plants becomes livestock feed for domestic and export markets, replacing as much as 1.2 billion bushels this year.

"While we are proud of the role ethanol plays in creating jobs, improving the environment and growing energy independence, we want to ensure that an accurate representation is made of the important work our growers are doing to meet all needs - for feed and food as well as for fuel," he added. "The livestock industry, which provides healthy and safe meat for consumers around the globe, remains by far our top customer."

For details on corn usage, the USDA refers interested parties to this site. The monthly World Agricultural Supply and Demand Estimates report can be downloaded here

NCGA Commends Progress Made on Colombia FTA

NCGA commended the progress made on resolving outstanding issues with the Colombia Free Trade Agreement that will now allow Congress to move forward with consideration. The Colombia FTA would provide immediate access for U.S. corn growers to Colombia's roughly 2.1 million metric ton market for corn at zero percent duty.

"Colombia has traditionally been one of the Top 10 export markets for U.S. corn," NCGA President Bart Schott said. "This is an important market for U.S. farmers and we do not want to watch this market slip away to our largest competitors. America's corn producers stand ready to produce enough corn to meet the increasing global demands for food, feed, fuel and fiber."

During marketing year 2007-08, the United States exported 114 million bushels of corn to Colombia, with an estimated value of nearly $627 million. U.S. corn exports declined dramatically during the 2009-10 marketing year, with only 36 million bushels exported, valued at $152 million. The decline in exports reflected a loss of $475 million to the U.S. economy.

"We support the pending Free Trade Agreement with Colombia, as well as those with Korea and Panama," Schott said. "NCGA remains committed to the development and maintenance of fair and open global trade policies and we look forward to working with Congress to ensure passage of these important FTAs."

NCGA: Proposed Agriculture Cuts Significant, But So Are Our Nation's Challenges

In the wake of a proposed budget plan from Republicans in the House of Representatives that strives to eliminate the federal deficit over 10 years, NCGA said that farmers are willing to do their part to help make it happen.

"These cuts are significant, but so is our nation's out-of-control budget deficit," said President Bart Schott. "What is important is that farmers are not singled out -- the cuts proposed for agriculture are proportional to those proposed for other areas of the federal budget. We know this is just the beginning of the budget discussion. No matter the outcome, we are committed to working with the House and Senate Agriculture Committees to fashion a farm bill that provides farmers with risk management tools that are there when they truly need them."

The proposal announced today by House Budget Committee Chair Paul Ryan (R-Wis.) would cut $6.2 trillion in federal spending over the next 10 years. It includes reductions in key USDA programs over the same period: $30 billion from commodity supports and market development, $18 billion from conservation programs and $125 billion from the Supplemental Nutrition Assistance Program (SNAP).

In March, NCGA's grassroots grower leaders approved several new policy statements, including one under the "What We Stand For Section" that reads, "We believe the U.S. Government should balance the budget by reducing spending resulting in a reduction of the federal debt."

Among the additions was a statement that NCGA should investigate transitioning direct payments into programs that allow producers the ability to manage risk while assuring food security. Delegates also defined what a "safety net" means - a combination of risk management tools available to producers that have the ability to protect against revenue losses due to circumstances beyond their control.

NCGA Applauds Wisdom, Logic Shown in Halting of Proposed Anti-Ethanol Legislation

NCGA is pleased that efforts to stop Sen. Thomas Coburn's amendment to immediately repeal the Volumetric Ethanol Excise Tax Credit last week were successful. The proposed amendment would have repealed the Volumetric Ethanol Excise Tax credit, which is already scheduled to expire at the end of 2011.

"It is heartening to know that reason won out over rash action based upon myths and fallacies," said NCGA President Bart Schott. "I think that our growers' strong grassroots efforts, both on the Hill and through calls to their senators, made a huge difference. Ordinary family farmers reached out and demonstrated the foolishness of this legislation by educating their lawmakers on the benefits of ethanol, the dangers of repealing VEETC immediately and on the ways in which corn farmers as an industry are working with legislators to trim the budget while maintaining an affordable domestic fuel supply."

By repealing this key ethanol tax incentive, the amendment would have raised fuel prices on consumers, placed the 400,000 jobs supported by the American ethanol industry in jeopardy and made the U.S. more dependent on expensive foreign oil. Further, repeal of the VEETC is unnecessary as corn growers and the ethanol industry are working with members of Congress to develop a plan to increase market access to allow consumers more choices at the pump and to reform the existing tax credit.

CommonGround Launches in Kentucky; Farm Women Speak Mom-to-Mom with Consumers

Spokeswomen with BannerShoppers at one lucky ValuMarket in Louisville found a new, straight-from-the-farm assortment in the produce section - the farmers themselves. During the event, shoppers who care about safe and healthy food for their families and the farmers who are equally passionate about producing that food connected for much-needed straight talk about modern agriculture.

Today, consumers are not only concerned about food prices, but there is growing concern about food production practices and many myths about modern agriculture. Through the CommonGround program, a collaborative effort involving the National Corn Growers Association, the United Soybean Board and affiliated state organizations, these organizations have partnered to reach out to Kentucky consumers. Telling the story of their own operations, these women drive home the truth about U.S. agriculture. Through sharing their experience and hard data, consumers learn that thanks to modern American farmers, U.S. families enjoy the safest, healthiest and most affordable food choices in the world.

Ashley Reding, Carrie Divine, Corinne Kephart and Denise Jones, all Kentucky farm women, had mom-to-mom conversations about where food comes from for three hours on an early Saturday afternoon. Shoppers had the unique opportunity to answers to their questions about food and farming straight from the women who produce it.

"The event was unique as it was held at a small local store where many shoppers were very concerned about buying from local farms," said Reding. "I felt that we really got through to people in explaining issues from how modern agriculture in the U.S. must can and must feed the world, on how we produce the steaks they were about to enjoy and on exactly what differentiates organics versus the benefits that are only perceived."

To build upon this success, Kentucky will host an agricultural issues and media training seminar on Saturday, April 9 in Lexington. During this meeting, staff from participating CommonGround organizations will prepare additional Kentucky farm women, including operators, wives, moms, sisters and daughters, to connect with consumers while teaching them how to effectively tell their story, the true story of American agriculture.

The women involved in this program will share their experiences with consumers at local events such as the grocery store promotion, through speaking engagements and through social media.

To learn more about CommonGround, click here.  

Our View: Indirect Land Use Change - Fact or Fiction?

By Rick Tolman, NCGA CEO

It's like a scene from "Jaws." Sharks from the food industry and the oil industry are circling and frenzied as they think that they smell blood in the water. Fact and fiction are merged together and wild unsubstantiated claims hurled around and unfortunately too often picked up and published.

Indirect Land Use Change (ILUC) was to be the coup de grace for the ethanol industry three years ago. Imputing an estimated carbon penalty on ethanol for assumed "land use change" due to crops going to biofuels turned ethanol from a positive on the greenhouse gas emissions scale relative to gasoline to supposedly strongly negative and much worse.

Tim Searchinger, a former lawyer for the Environmental Defense Fund, published his now-infamous study in Science magazine showing this huge penalty. Headlines and editorials and commentary were rampant in the Wall Street Journal, New York Times, National Public Radio and others touting ethanol as a worse polluter than gasoline.

Many scientists challenged Searchinger's work and methodology and assumptions and still others indicated that the science on this was not yet mature. It made no matter. In the court of public opinion, ethanol was excoriated, judged, found guilty and condemned. As a result, California CARB, EPA and others included ILUC in their calculations and standards.

Fortunately, ethanol industry leaders have persevered and continued to pressure EPA and CARB and others to continue to refine the science, fill in the gaps and add missing data to the poor methodology and work done by Mr. Searchinger. Current estimates have decreased ILUC estimates more than 87 percent since Searchinger's work just two years ago. Click here for a summary comparison of different estimates.

It is both illuminating and disappointing to review what has transpired since. Illuminating-in that the updated results clearly show significant flaws in the early work and indeed-ethanol does have a much better greenhouse gas profile than gasoline and in fact it continues to improve, while gasoline refined from petroleum will only decline.

And it's disappointing for two reasons. First, the new information has been virtually ignored. The old information continues to be widely quoted-"ethanol has a worse greenhouse gas profile than gasoline" and is believed to be true by many in the general public.

The second disappointment is similar. Where are the headlines and commentary in the Wall Street Journal and the New York Times and National Public Radio? They were quick to report the negative, but have ignored the positive information. If they're looking for a villain, they need look no further than those that fed them the original myths and question their true motives.

Ethanol has a much better greenhouse gas profile than gasoline. That is a fact. For that matter, it also has a much better net energy profile than gasoline and in the current environment is much cheaper to produce. Those are facts. Apparently the Wall Street Journal and the New York Times (and many others in the popular media) are not interested in facts; they'll just continue the smear of ethanol manufactured by the oil and food industry sharks.

Corn Commentary New

Whether pondering the U.S. government, the role of women in ag today or just daydreaming about tonight's NASCAR race, the NCGA Corn Commentary bloggers provide a fresh take on the day's news.  To see for yourself, click here.