Archive for the ‘Uncategorized’ Category

China’s Imports Verify Corn Abundance

May 19, 2010

In late April, the U.S. Agriculture Department (USDA) announced the export sale of 115,000 metric tons (4.5 million bushels) of American corn to China.

As China’s population continues to increase, consumer demand for livestock/poultry does as well. More animal feed is required to feed its expanding livestock and the country has turned to American corn farmers to supply this need.

The U.S. Grains Council (USGC) is confident that an additional 250,000 to 300,000 metric tons or 9.8 to 11.8 million bushels may be headed to the country soon.

Many claim that the U.S. corn supply cannot serve all of its domestic markets – food, feed and fuel – but our country’s corn farmers are continually producing notable harvests using advanced technologies and equipment, and the latest seed varieties, to meet demand and China’s recent request is a case in point.

The majority of China’s corn imports come in the form of distiller’s dried grains with solubles (DDGS) – a co-product of the ethanol industry. Outside of the ag industry, most are unfamiliar with this valuable product. DDGS is the dried residue remaining after the starch fraction of corn is fermented with selected yeasts and enzymes to produce ethanol. Because it is protein and nutrient rich, this byproduct is commonly used in animal feed.

So much so, that approximately 3.2 to 3.5 million metric tons of DDGS are produced annually in North America.

According to Joe Victor, vice president of commodity-research advisory firm Allendale in McHenry, Ill., China is the No. 2 importer of U.S. DDGS with Mexico as the No. 1 importer. In 2009, China imported 661,320 metric tons (26 million bushels of corn and18.9 percent of the world market) of containerized DDGS from the U.S. compared to the previous year’s 97,940 metric tons.

“I don’t think the public at large knows the kind of DDGS exports we’ve been having,” Victor said.

In fact, some traders believe China’s corn imports may grow to more than 2 million metric tons for 2010, demonstrating the country’s reliance on American corn and a huge export opportunity for our corn market.

“The U.S. could easily sell 2 to 3 million metric tons of corn to China in the coming months without significantly impacting market conditions,” said Ross Korves, economic and trade-policy analyst. “U.S. farmers intend to plant about 2.3 million acres more corn in 2010 than in 2009, and early season planting weather is favorable for a quick start to the 2010-growing season.”

Though there has been concern about the capacity for the world corn market to handle another significant buyer, the American corn industry is again ready and able to deliver.

I know that our U.S. corn farmers will continue to supply more than enough corn to meet national and international demand.

D.C. Discussions Advance Corn Issues

March 10, 2010

I recently joined several Ohio Corn Growers Association (OCGA) board members on a trip to Washington, D.C. The goal was to engage legislators in discussions about issues central to Ohio’s 20,000-plus corn farmers in our nation’s capital.

During our visit, we met with all 20 members of the Ohio delegation (18 representatives and two senators) including special events with Rep. Marcy Kaptur and Sen. Sherrod Brown. We also met with administrators of organizations such as the EPA, USDA and Risk Management Agency.

Driving home the fact that agriculture is Ohio’s No.1 industry, it was important for me to reiterate that voters in rural and urban districts alike are directly affected by its continued growth and success.

On behalf of OCGA and Ohio agriculture at large, we participated in constructive discourse about three integral issues:

  • Extension of the Volumetric Ethanol Excise Tax Credit (VEETC) – This blender’s tax credit provides $.45 for each gallon of ethanol blended with gasoline and expires at the end of this year. The credit provides thousands of jobs, fuels economies and helps the U.S. to meet its mandated biofuels-production standard. The elimination of this credit will result in a 38-percent jobs and production loss. VEETC brings dollars back to the U.S. Treasury in the billions, eliminates more than $22 billion in oil imports and has led to a reduction of farm payments of more than $10 billion. Despite the success of the ethanol industry, some members of the Ohio delegation want its advancement to end – even delegates from areas where corn represents the largest economic portion of their district.
  • Indirect Land Use – Corn is unfairly blamed for the destruction of rainforests in countries such as Brazil for the production of corn ethanol. Our own research and travels to Brazil brazenly dispute these facts. Corn farmers are utilizing technology and innovation to grow more corn using fewer acres. The public needs to be educated about these truths to bolster the reputation of our farmers.
  • Expanding International Markets – OCGA supports a one-way trade expansion to provide food to Cuba. This in no way reflects a support of the Cuban government. Instead, it provides significant economic opportunities for our nation by easing simple restrictions on food, medical supplies and travel to allow for easier exports.

OCGA will continue to advocate its stance regarding these issues, and we will also continue to be a resource for legislative issues concerning agriculture. Ohio policymakers must support the interests of the industry that is the foundation of the state.

In the coming weeks, OCGA will be kicking off a grassroots-activism plan that will encourage consumers to get involved in the legislative process. We cannot let D.C. policymakers take farmers for granted.

Ohio Corn Growers Association’s priorities in sync with U.S. priorities

January 19, 2010

After reviewing an informal poll about our farmer-board members, I’ve recognized one thing: The goals of OCGA in 2010 coincide with the goals of the nation—with an overarching result to revive the economy.

The Washington Post and numerous other media outlets say now that the health-care debate is wrapping up in D.C., the focus is back to jobs.

While I won’t comment about the health-care debate, I can tell you that the farming industry is in the business of providing jobs to Americans, even as segments of other industries ship out jobs overseas.

Agriculture in Ohio is nearly a $98 billion industry. It supports an array of jobs both for farmers and businesses that support farming, such as equipment dealers, fertilizer suppliers, ethanol plants and seed companies. Ohio’s ethanol plants have invested hundreds of millions of dollars into providing new jobs and new uses for the abundant corn crop grown here in the Buckeye State.

In February, we will accompany our farmers on a mission to Washington, D.C., to talk about how farming contributes to the economy and why votes in favor of agriculture help all Americans.

For example, ethanol production has spurred job growth not only in Ohio but also in many other states; we need to continue to provide information showing the economic, environmental and national security benefits of this domestic fuel. We are educating lawmakers about the need for higher blends and advocating for an increased ethanol-blend requirement as ethanol production creates green jobs, stimulates corn demand and reduces foreign sources of energy.

Food is vital for survival. Therefore, OCGA will continue to focus on the issue of safeguarding livestock production to ensure a safe, reliable food supply. As corn growers, we provide feed to livestock and poultry in Ohio and overseas that maintains this food supply. Numerous studies and reports show that more and more people will go hungry in the coming years because they lack access to this abundant supply. By advocating for improved trade agreements that open foreign markets to U.S. agriculture products, we can continue to feed the world while keeping and creating jobs in the U.S. And by protecting livestock production in America, we can keep up with demand for food in our own country.

Another way we’re guaranteeing our economic climate is to be at the table in talks about greenhouse gas legislation. Year after year, farmers are producing more with less and reducing emissions. OCGA will remain visible in this debate to ensure that agriculture is seen as a solution to increased emissions worldwide and at the same time, is not penalized by any legislation that could negatively impact our industry.

Come February, our grassroots advocates—your farmer neighbors—will have materials in hand to show legislators what agriculture means to the economy in Ohio.

Corn’s portion of economic success is secure and continues to grow with the nation’s needs.

I look forward to blogging about my experiences in D.C. as I campaign for corn’s increased role in supporting America’s economy.

OCGA Will Continue To Provide Factual, Unbiased Information in 2010

December 29, 2009

Corn farmers experienced a number of highs and lows in 2009 and have much to look forward to in 2010. OCGA vows to continue to be the voice of corn farmers in Ohio throughout all modes of communication, through personal visits with lawmakers to blogs, e-newsletters and district meetings.

The organization has established a track record of being a reputable source of information on a multitude of topics and we will continue to provide quality data analysis and information to lawmakers, media and consumers. (See our updated Reports Downloads section for even more information on our industry.)

I bring this up as OCGA was recently questioned in an e-mail about statements we have made in the press regarding ethanol’s impact on food prices. The sender of the e-mail cited a recent blog that contradicted OCGA’s statement: The blog author reported that the Congressional Budget Office found that ethanol raised food prices 10 – 15%, which contradicts OCGA’s statements of 0.5 – 0.8%. The e-mail asked who should people believe and where do we get our information to make such statements.

Here was our response: The blog you cited seemed to conveniently leave out the CBO number of 5.1%, which happens to be the percentage rise in food prices between April 2007 and April 2008 … this is the timeline the report focused on. Based on the entire data, expanded ethanol production during this time contributed between 0.5 and 0.8 percentage points of the increase in food prices measured by the consumer price index. In comparison, the CBO found that the increase in the CPI attributed to increase in energy prices, specifically crude oil, was more than double corn ethanol’s impact.

Our assessment of the CBO report was based on its entirety, whereas the blogger misinterpreted the information to fit his own agenda. Our goal is to provide factual, constructive information for our farmers, consumers and lawmakers. We work closely with government offices, universities and those in the industry to better educate our members and friends.

The e-mail did bring a couple of observations to the forefront: Who should people trust for information, and are blogs just a convenient method of finding “facts” to support one’s personal views?

The staff at OCGA and at the National Corn Growers Association will continue to provide analysis on trends, data, markets and economics without personal opinion sprinkled in and you can continue to count on our organizations to share quality information based on facts.

OCGA has become a reputable source for information, with quotes in large daily newspapers such as the Cleveland Plain Dealer and the Columbus Dispatch, and many have acknowledged that OCGA does not revert to inserting personal opinions in information but does utilize the sound data analysis with reputable sources throughout the world.

I will continue to discuss agriculture issues in this blog on a regular basis, so I encourage you to check back. I also hope that you take the time to comment below to promote constructive discourse.

OCGA wishes everyone a Happy New Year.

Dwayne