Our View: Farm Bill Now
By NCGA President Garry Niemeyer
I have spent much of my time over the past month in Washington visiting with members of Congress and other policy makers about the importance of the 2012 farm bill. Each meeting seems to end in the same fashion as the others: Democrats blame Republicans and Republicans blame Democrats. If I ask someone from the House, I hear that it is the fault of the Senate; and when I ask someone from the Senate, I hear it is the fault of the House.
Agriculture policy historically has not just been bipartisan, it's been non-partisan.
Farmers recognize the seriousness of the federal government's financial situation and that any new legislation needs to be responsive to taxpayers. Our organization understands that programs important to agriculture will be cut. We are willing to do our part to significantly reduce government spending and move towards market-based programs that meet today's risks. We are, to our knowledge, the only constituency to do so.
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American Ethanol Races onto the Scene in Texas this Weekend
Rev your engines! American Ethanol will race onto the scene at the Texas Motor Speedway as a group of unique visitors and millions of avid fans alike watch Austin Dillon's No. 3 car fly by proudly displaying a full American Ethanol paint out. To promote the benefits of higher-blend ethanol, including the E15 blend fueling every car in every race for NASCAR again this year, the National Corn Growers Association urges members to tune in and show support.
In addition to bringing attention to ethanol among the broader public, NCGA will promote the benefits of ethanol during this race for a select group of garage owners and mechanics by giving them a chance to see E15 in action under some of the toughest driving conditions on the planet. Prior to the race, the group will have an opportunity to visit the garage and watch as the RCR team prepares cars for tonight's Nationwide series race and tomorrow's Sprint Cup Race. While there, they will be able to discuss fuel and technical issues with crew members responsible for Dillon's car.
When Sunoco Green E15 launched as the official fuel used in all three NASCAR racing series last season, many fans expressed skepticism, unsure how the fuel would fit into the sport. In a short time though, NASCAR fans have become outspoken fans of the corn-based fuel also. This reversal stems from the fantastic success ethanol has brought to the track with NASCAR drivers, mechanics and crew chiefs deeming the transition seamless. With more than two million miles already run with E15, teams report the only difference found is positive - a four to eight percent increase in horse power.
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Corn Crop Estimates Remain Stable
Corn stocks and demand in the United States remain stable according to a report issued by the U.S. Department of Agriculture today. While potential for change in the May report was noted, the agency found that, at present, the previous estimates require no revision.
This news follows reports issued by USDA late yesterday indicating that seven percent of the U.S. corn crop had already been planted as of Sunday. This indicates progress significantly ahead of the five-year average as only two percent of the crop would normally be planted at that time.
Much of the early planting is occurring in the south and central Corn Belt with Tennessee and Kentucky leading the push with planting 31 and 25 points over the average respectively. Missouri and Illinois also have planted earlier than normal to a large degree. While all major corn production states with only the exceptions of North Dakota and Wisconsin have documented planting already, the data clearly suggests that most farmers are waiting to plant until their crop insurance dates, which will occur later this week for much of the Corn Belt.
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Senator Addresses Agriculture, Economic Challenges
U.S. Senator Roy Blunt shared his thoughts on today's political environment with St. Louis Agribusiness Club members and guests at a lunch this week, co-sponsored by the National Corn Growers Association. NCGA CEO Rick Tolman was on hand to thank the senator for his work on behalf of U.S. agriculture, and draw attention to the lengthy list of unresolved issues that concerns farmers.
"When big decisions are being made, government stands still," said Sen. Blunt, R-Mo. "We are going to have to decide who we as Americans want to be. Do we want to follow Europe's path and have government outgrow our economy, or do we want a government we can afford?"
As ranking member of the Appropriations Committee's Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, Sen. Blunt played a vital role in writing and passing the 2012 agriculture appropriations bill. The senator conveyed his pride in being able to maintain vital support for research and extension at land grant universities, capacity building grants for non-land grant colleges of agriculture, and competitive funding under USDA's Agriculture and Food Research Initiative.
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Shifting Economics Helps DDGS Gain a Foothold in Once Anti-ethanol Market
In a country largely dependent on oil exports, the ethanol industry is often maligned and a large target of contention and discomfort in Saudi Arabia. However, as Venezuela overtook Saudi Arabia to become the owner of the largest share of the world's known oil reserves in 2011, Saudis are now focusing on the need to diversify their economy, with agriculture garnering significant interest as a new revenue stream.
Already home to the largest dairy integrations in the world, the country once opposed to ethanol now cooperates with the U.S. ethanol industry to satisfy feed demand with ethanol coproduct distiller's dried grains.
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Ag Groups Make Their Voices Heard on Permanent Estate Tax Repeal
Because the estate tax remains a concern for thousands of farmers around the country, the National Corn Growers Association sent letters this week with more than 30 other agriculture organizations supporting House and Senate legislation that calls for permanent repeal of the so-called "death tax." Kevin Brady (R-Tex.) introduced legislation in the House of Representatives and John Thune (R-S.D.) introduced companion legislation in the Senate.
"Family farmers and ranchers are not only the caretakers of our nation's rural lands but they are also small businesses," the letter states. "The 2013 change to the estate tax law does a disservice to agriculture because we are a land-based, capital-intensive industry with few options for paying estate taxes when they come due. The current state of our economy, coupled with the uncertain nature of estate tax liabilities, makes it difficult for family-owned farms and ranches to make sound business decisions. We urge Congress to pass permanent estate tax reform."
During Commodity Classic in Nashville, NCGA's voting delegates passed language stating that, "until the Federal Estate Tax can be repealed, NCGA will aggressively pursue a permanent extension of thefFederal estate tax exemption targeting a $5 million per person exemption, indexed for inflation, allowing for portability and stepped-up basis."
Mycotoxin Task Force Meets to Find Answers, Assess Strategies
Last week, the National Corn Growers Association's Mycotoxin Task Force met in Corpus Christi, Texas to discuss the status of ongoing projects and activities, including the Aflatoxin Mitigation Center of Excellence (AMCOE), and to look at potential projects moving forward. The meetings, which included an on-farm demonstration of aflatoxin testing practices, allowed the growers to share insight, hear updates on the status of many projects and gain a first-hand understanding of the unique situation faced by farmers in affected areas.
The on-farm demonstration occurred during a tour of team member Charles Ring's operation. Ring, who farms in Sinton, Texas, serves as vice chair of the taskforce.
"It was interesting to find out what farmers thought after watching a standard test for mycotoxin," said Ring. "The group expressed their surprise at the amount of time the test requires, about 15 minutes on average. To those outside of farming, this might not sound burdensome, but, during the busy season, it can add a difficult delay into already rushed schedules. While the test is certainly important, it is vital that we continue research on mycotoxin to improve the ways we both manage and test for it."
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