Join Us in Responding to Anti-Ethanol Story

An Associated Press story published today talks about how some in the livestock industry want to see changes to the Renewable Fuel Standard to cut corn prices. We've prepared a response you can customize and send in if that story appears in your paper, talking about how this is not smart ... and bad for farmers. Just click here. See related Our View story, below. 

Getting to the Meat of the Truth on Ethanol

By Garry Niemeyer, NCGA President

An Associated Press story today discusses how certain members of the meat industry want to see changes made to our nation's Renewable Fuel Standard, for the sole purpose of giving them access to cheaper corn. That's what it's really all about for them.

Corn growers support ethanol because it is good for our farmers, to be sure, and for other reasons as well. It helps rural economies. It's good for energy independence. And it's better for the environment than gasoline. What's not to like?

We supported the growth of the ethanol industry for reasons that are as valid today as they have ever been. Corn farmers have the ability to grow more corn per acre and this ability will continue for the foreseeable future, with some predicting 300 bushels per acre, more than double the 2011 crop. Finding other major uses for corn provides security and stability for the American farmer.

The fact is, this stability has carried over into other areas. Economic conditions have improved for beef and dairy farmers since the implementation of the expanded Renewable Fuel Standard in 2007, according to a study released this past summer by Texas A&M University and Doane Advisory Services. The study determined that net cash farm incomes for representative beef-cow and dairy operations had increased since provisions of the biofuels mandate went into effect. Conclusion: Increased ethanol production has not negatively impacted the profitability of key livestock markets.

Farmers in many parts of the Corn Belt had a very challenging year. Just consider these events:

* rain and flooding in the Corn Belt that delayed planting this spring

* lost acreage to floods and blown levies along the Mississippi and Missouri rivers

* scorching heat and drought in Texas and the South

* abnormally high temperatures in the Corn Belt in July and August

* widespread damaging hail and wind during the latter growing season

* Hurricane Irene causing devastation along the Atlantic Seaboard

And yet, they brought in one of the largest corn crops ever, enough for all uses with corn to spare. When you factor in the impact of distillers grains from ethanol production, especially DDGS, or dried distillers grains with solubles, that's another large amount of corn-based feed that the USDA reports has a lot of value to add.

So, while the meat industry loves to trot out the usual USDA stats on how much corn is used for ethanol, they ignore that even the USDA is clear that there's more to the story, as it says: "Feed market impacts of increased corn use for ethanol are smaller than that indicated by the total amount of corn used for ethanol production because of DDGS."

Over the past few years, the livestock industry has been plagued by lackluster export demand and rising feed prices. This has now turned around. Export demand for beef, pork, and poultry is skyrocketing, making livestock husbandry profitable once again. That's why it's disheartening to see some, especially food companies whose profits never flagged, selectively attack corn. This criticism of high corn prices seems unwarranted since December corn has already lost nearly $2 a bushel from this summer's high prices.

Finally, corn growers rely on a profitable livestock sector, which is why we have always championed them on many of their interests and issues, from animal welfare to free trade, to increase market demand for livestock products, not hindering one market to keep corn prices artificially low.

Corn Growers Disappointed Joint Committee Has Failed to Act

National Corn Growers Association President Garry Niemeyer released the following statement in response to the Joint Select Committee on Deficit Reduction's failure to produce a deficit reduction plan:

"We're disappointed the Joint Select Committee on Deficit Reduction did not agree on a plan to reduce our federal deficit. We appreciate the hard work of the chairs and ranking members of the House and Senate Ag Committees to meet agriculture's responsibility to help address our debt crisis.

"NCGA will continue to advocate for market-based risk management farm programs that recognize our nation's difficult financial situation. As the farm bill process moves into next year, we look forward to working with the House and Senate Agriculture Committees to address the critical challenges facing America's corn farmers."

U.S. Farmers to Enjoy Competitive Position as Korea Ratifies FTA

U.S. farmers achieved an important trade milestone as the Korean National Assembly ratified the U.S.-Korea free trade agreement. With a vote of 151 to 7, the assembly approved all 14 implementation bills accompanying the agreement as well.  NCGA, along with many others in the U.S. and Korean business communities, applauded this announcement which they have championed since the first announcement of the FTA in 2006.

"The ratification of this agreement is an important victory for U.S. farmers as we will soon be able to compete in this vibrant market on a level playing field," said NCGA Trade Policy and Biotechnology Action Team Chair Chad Blindauer. "The Korean market continues to grow, both for grains and for meat imports, it is crucial the U.S. providers remain competitive."

Korea is currently the United States' third largest corn market and is a potentially important market for distillers grains. Korea imported more than seven million metric tons of corn for the United States last year, which represented 30 percent of the country's entire corn exports. During the same period, Korea also imported more than 350,000 metric tons of distillers grains for use in their feed industry.

For the whole story, click here.

NCGA Partners to Make Genotyping Data Functional for Farmers

NCGA is moving along plans to develop a National Agricultural Genotyping Center that will translate scientific discoveries, such as the information from the maize genome project, into solutions for production agriculture, food safety, functional foods, bioenergy and national security. The center, being formed through a partnership with Los Alamos National Laboratory and the Donald Danforth Plant Science Center, will benefit growers through the development of improved varieties and livestock and new traits, while NCGA's leadership in the project provides farmers with input into the agricultural applications of the newest technologies.

"We are extremely pleased with the progress toward the center that our partnership is making," said NCGA Research and Business Development Action Team Chair DeVonna Zeug. "When realized, the center will truly benefit all growers by furthering the sorts of applied research that fuel change."

NCGA, Los Alamos and the Danforth Center jointly hosted a meeting recently that invited key industry stakeholders from the biotechnology industry and national agriculture associations to discuss the shape that this project will take moving forward. Attendees were further familiarized with the founding group's vision for the center and then given the opportunity to discuss ways to maximize its potential benefits.

For the whole story, click here.

NASCAR Green Puts Benefits of American Ethanol in the Spotlight

Last week, NCGA representatives attended the NASCAR Green Summit in Miami Beach, Fla. The day-long meeting, held in advance of the season-finale races at Homestead-Miami Speedway, highlighted the sport's environmentally responsible efforts, and brought together the stakeholders to share ideas on furthering this green movement.

NCGA played an integral role, through the American Ethanol partnership, in NASCAR's most visible green initiative this season, the switch to Sunoco Green E15. The 15 percent ethanol fuel blend helped NASCAR decrease their environmental impact, reduce greenhouse gas emissions and create American jobs in this growing industry.

"NASCAR fans represent more than 25 percent of the adult population and statistics show they are much more tuned into the outdoors and the environment than the average consumers," said Corn Board member Jon Holzfaster. "NASCAR is a great place to spread the good word about ethanol."

For the whole story, click here.

NCGA Defends Public Funding for Corn Research

NCGA actively defended the importance of publicly funded research into corn last week to a panel of industry stakeholders tasked with discussing the future of federally funded agricultural research programs. Noting that corn is not only the largest crop in the United States but also a major export product, NCGA staff defended against calls to kill public funding for corn research, stressing the importance of public research that generates ideas, encourages collaboration and confirms the internal findings of private companies.

"Corn is too valuable of an asset to our country for publicly funded research to cease," said NCGA Director of Research and New Uses Dr. Richard Vierling. "Halting this important, unbiased source of data would be disastrous for the future of the industry and deeply injurious to the future of the country. Right now, we still have an advantage in production agriculture. It is an edge we cannot afford to lose in the way we have already lost so many others."

Vierling participated in this panel discussion during the U.S. Department of Agriculture's Agricultural Research Service National Project 301 on Plant Genetics Resources stakeholder meeting. Held every five years, stakeholders involved with NP 301, the largest national program in ARS, explored effects budgetary constraints might have upon the program.

For the whole story, click here.

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