There was a lot of corn commentating going on Thursday in Kansas City at the National Association of Farm Broadcasting annual Trade Talk event.
Some of the major topics of discussion were the 2007 Farm Bill, WRDA and – of course – ethanol. The National Corn Growers Association had grower leaders of the organization on hand to do dozens of interviews with farm broadcasters all over the country.
Corn Board chairman Ken McCauley of White Cloud, KS, president Ron Litterer of Greene, IA and first vice president Bob Dickey of Laurel, NE stayed busy doing interviews from 7 am until 1:30 pm. The corn growers also helped to sponsor Wednesday evening’s welcoming reception for the broadcasters.
Corn – whether it be feed, ethanol or products for growing – was probably mentioned at nearly every one of the 100 booths at this year’s NAFB Trade Talk. From the ethanol organizations, such as RFA and EPIC, to the National Cattlemen and Pork Producers, to companies such as John Deere and Pioneer – everybody is talking about corn!
The year is 1979. The United States is in an oil crisis created by the Iranian Revolution that has disrupted Middle East oil exports. President Jimmy Carter famously wears a sweater during a speech in which he asks Americans to turn down their thermostats and conserve energy.
Drivers wait in long lines at gas stations. The price of oil goes from about $15 a barrel to almost $40 a barrel in just a year, adding to inflation woes.
The panic over oil leads to greater interest in gasohol, an alcohol fuel that can be made from fermenting corn and other agricultural feedstocks. Farm organizations promote the idea that, like adding chicory to coffee, gasohol can stretch the nation’s fuel supply. Congress picks up on it and debates national goals and tax incentives for expanded gasohol production.
Then, some of the nation’s newspapers go on a campaign against federal subsidies for gasohol. An April 26, 1980, Washington Post editorial argues that further federal help for gasohol producers “will inevitably raise food prices” and calls the subsidies “wanton public policy.” Of course, the editorial doesn’t mention subsidization of the petroleum industry through billions of defense dollars spent to protect oil wells and pipelines in volatile parts of the world.
As the energy debate continues in Washington, the Iranian hostage crisis drags on, a national election nears, oil production picks up, lines at the pump shorten, a new season of Dallas begins and everyone moves on. Gasohol isn’t the hot topic anymore.
Ethanol trade association leaders from the United States, Canada, Europe and Brazil got together last week at the F.O. LICHT´S World Ethanol 2007 conference in Amsterdam and united against a common enemy – the United Nations … at least the recent interim report issued by United Nations Special Rapporteur on the Right to Food, Jean Ziegler and some choice comments like calling biofuels production a “crime against humanity” and a “recipe for disaster.”
In a letter to United Nations Secretary General Ban Ki-moon, the heads of the Renewable Fuels Association (RFA), the European Bioethanol Fuel Association (EBIO), the Canadian Renewable Fuels Association (CRFA), and the Brazilian Sugar Cane Industry Association (UNICA), detailed some specific concerns the world ethanol industry has about the assumptions and conclusions made by Mr. Ziegler. Specifically, the groups pointed to the economic and environmental benefits ethanol provides that Mr. Ziegler has marginalized or ignored completely. Moreover, the letter also details some of the more immediate factors limiting the availability of food in some regions of the world.
The report ignores the fact that food prices have increased far less than petroleum prices. Over the last three years, when biofuels gained momentum, agricultural prices have gone up by 7% while oil prices jumped by more than 70%. In fact, the sharp increase in oil prices is largely responsible for the increase in food prices.
Mr. Secretary General, we urge the United Nations to review the Interim Report of the Special Rapporteur on the Right to Food with a focus on sound science, credible studies, and a comprehensive view of the biofuels sector
rather than unsupported assumptions and selected anecdotes. We stand ready to participate in this revision process. Specifically, each signatory to this letter plans to submit additional comments and recommendations to the Special Rapporteur to address specific inaccuracies and concerns regarding its policy recommendations.
Last week, leaders of the four organization issued a joint statement on the necessity of developing a robust and vibrant renewable biofuels industry around the globe, which concluded:
“Through cooperation and technology, we can responsibly and sustainably increase the production and use of renewable fuels and encourage others to take the essential first steps toward a more secure and stable energy and environmentally-sensible future.”
The four ethanol group leaders are Gordon Quaiattini, President of CRFA; Robert Vierhout, Secretary General of eBIO; Bob Dinneen, President of RFA; and Marcos Jank, President of UNICA.
Congress voted to override the presidential veto of the Water Resources Development Act, or WRDA, because it authorizes funding for water projects from coast to coast, but the centerpiece of repairing locks and dams on the Mississippi River was the main concern for corn growers.
“When it comes to this issue, nothing has been easy,” said NCGA President Ron Litterer. “After almost two decades of work by corn growers, millions of dollars spent on studies, seven years of waiting on the legislative process, a presidential veto and then a veto override by the U.S. Congress, we finally have achieved authorization to modernize seven locks on the Upper Mississippi River System. Once again, our grower members demonstrated their influence and commitment to the Water Resources Development Act by contacting their members of Congress and urging them to overturn the president’s veto.”
Litterer celebrated the victory this week with NCGA First Vice President Bob Dickey and Senator Kit Bond of Missouri who is credited with his perseverance in getting the legislation finally passed.
Missouri Corn Growers Association CEO Gary Marshall says, “No one deserves more credit for this bill becoming law than Senator Kit Bond. We owe him our sincere thanks for his vision and determination to see the locks and dams on the Mississippi and Illinois rivers upgraded.”
“These upgrades will spur economic growth for mid-America and will certainly go a long way towards improving access to world markets,” said Missouri Corn Growers President Mike Geske. “Our competitiveness in global trade has become much greater today due to the WRDA bill finally becoming law. We will now work with our Congressional delegation to see that funding is also approved.”
“Iowa’s corn growers should really celebrate this achievement,” said Warren Kemper, a grower from Louisa County and long-time advocate for improving the river’s infrastructure. “The ICGA has been lobbying for lock and dam improvements for more than a decade. WRDA is important to farmers who depend on the inland waterways, but it is also important to the whole economy of the upper Midwest.”
“It’s taken nearly two decades of work by corn growers and a consortium of other trade groups nationwide, as well as millions of dollars in studies, to finally authorize work to repair and modernize seven locks on the Upper Mississippi River System,” said Wisconsin Corn Growers Association President Tom Novak. “While we’re glad legislation finally passed, we still have a great deal of work to do to ensure the work it authorizes is properly funded.”
Even though President Bush vetoed WRDA citing the cost as the reason, the bill actually only authorizes the projects and opens the way to appropriate the funds needed to replace the locks. Once the money is appropriated it will still take more than 15 years to replace the 70-year-old locks that are falling apart.
The Senate is expected to follow the lead of the House Thursday and override the presidential veto of the Water Resources Development Act, better known as WRDA. The House vote on Tuesday was 361-54 with 18 members absent, well over the two-thirds needed for the override.
Late Wednesday, the Senate was debating the measure with most speaking in favor of the override. President Bush vetoed the $23 billion bill, which includes a variety of water-related projects around the nation, including the modernization of seven locks along the Upper Mississippi and Illinois River.
“This is great! We have worked so hard and so long to get improvements on the Upper Mississippi River System authorized,” said Ron Litterer, president of the National Corn Growers Association.
Litterer says the project to upgrade the lock system will improve delivery of crops to the global marketplace. More than half of all grain exports are shipped by way of inland waterways, accounting for $8.5 billion in exports.
The bill will also provide funding for environmental restoration, flood control, port modernization, irrigation and hurricane protection.
If the Senate does vote in favor of the veto override, as expected, it will be the first time that has happened during the Bush presidency. The Senate originally passed WRDA by an 81-12 margin.
USDA is trying to make it easier for the government to get and use biobased products.
According to a USDA release, they are updating the federal procurement of biobased products under the BioPreferred Program. The update will clarify the preference process in the Federal Acquisition Regulations (FAR), which will in turn make it easier for procurement officials and manufacturers to participate in the program.
Acting Agriculture Secretary Chuck Conner said, “The new BioPreferred program will help increase the demand for biobased products, help reduce our dependence on petroleum, and help create value-added jobs in rural communities. This is part of the federal government’s focus on using renewable, sustainable resources.”
KARE-11 TV in Minneapolis is running a two-piece feature on the ethanol industry this week – Tuesday and Wednesday during the 10 pm news. The story has focused on negative perceptions and critics’ viewpoints of ethanol; including tax subsidies, limited availability of E85, energy balance in production, and fertilizers used in corn production among others. The station has also posted a viewer poll regarding the pros and cons of ethanol production. Click here to weigh in on the topic and cast your vote. A video link is also available on the page to watch last night’s segment and catch a preview of part two.
As of 5:30 pm Central time Wednesday, prior to airing of the second part of the feature, the poll had received 4563 votes. Voters can choose from four statements about ethanol. The statements are as follows with the votes so far.
Ethanol is the best solution to curb U.S. reliance on foreign oil – 694 votes
Ethanol is not perfect, but is at least an alternative – 1759 votes
Ethanol was a good experiment, but won’t last – 755 votes
Producing Ethanol is a waste of time and money – 1355 votes
The next episode of Corn Guy TV is now available. See all the action as Corn Guy goes mano-a-mano with Taco Lady. You’ll get a really good chuckle out of this video. Especially when Corn Guy has to “make some ethanol” in a plastic cup. It’s funny and educational.
Although corn prices have risen substantially over the past year, according to Dr. Jim McLaren, founder and president of StrathKirn Inc., it is inaccurate to think corn price increases have a large impact on food prices.
“While news coverage abounds about the price of corn pinching consumer’s pocketbooks at the cash register, an analysis actually shows the price of corn may be too low,” says Dr. McLaren. One striking fact is that the price of corn is lower than it was 20 years ago, and except for the past year, it has been declining in real-terms. Another interesting fact is that since 1999, the real price of oil has increased dramatically, especially when compared to corn.
Dr. McLaren further suggests that corn has been under priced when considering the market value of its replacement for crude oil. “If you value corn at the same increase crude oil has experienced in the past 20 years, corn would average $13.50 per bushel,” says McLaren. The impact of the price of corn on grocery prices continues to be clarified. Numerous studies confirm the large increase in oil prices has a far greater impact on food prices due to the costs of transportation and processing energy.
There was a lot of corn commentating going on Thursday in Kansas City at the National Association of Farm Broadcasting annual Trade Talk event.
Corn Board chairman Ken McCauley of White Cloud, KS, president Ron Litterer of Greene, IA and first vice president Bob Dickey of Laurel, NE stayed busy doing interviews from 7 am until 1:30 pm. The corn growers also helped to sponsor Wednesday evening’s welcoming reception for the broadcasters.
Here’s a good 
Ethanol trade association leaders from the United States, Canada, Europe and Brazil got together last week at the 
The report ignores the fact that food prices have increased far less than petroleum prices. Over the last three years, when biofuels gained momentum, agricultural prices have gone up by 7% while oil prices jumped by more than 70%. In fact, the sharp increase in oil prices is largely responsible for the increase in food prices.
Litterer celebrated the victory this week with NCGA First Vice President Bob Dickey and Senator Kit Bond of Missouri who is credited with his perseverance in getting the legislation finally passed.
Late Wednesday, the Senate was debating the measure with most speaking in favor of the override. President Bush vetoed the $23 billion bill, which includes a variety of water-related projects around the nation, including the modernization of seven locks along the Upper Mississippi and Illinois River.
USDA is trying to make it easier for the government to get and use biobased products.
Here’s an alert from the 
“While news coverage abounds about the price of corn pinching consumer’s pocketbooks at the cash register, an analysis actually shows the price of corn may be too low,” says Dr. McLaren. One striking fact is that the price of corn is lower than it was 20 years ago, and except for the past year, it has been declining in real-terms. Another interesting fact is that since 1999, the real price of oil has increased dramatically, especially when compared to corn. 