SD Corn

Corn farmers from all across this great land will assemble this week in Washington D.C. for Corn Congress 2010 to discuss policy and meet with our nation’s leaders. Corn Congress not only allows the delegates to meet with representatives, but also delegates/farmers from other states that may share similar concerns.

“Coming to Washington is always an exciting time,” said, SDCGA President and Oldham, SD farmer, Gary Duffy. “There’s no better place to develop policy and talk about the issues and the legislation that affect corn growers back on the farm.”

A number of important topics including Farm Bill, CARB lawsuit and agriculture transportation will be discussed at Corn Congress, but the number one priority to be voiced by the South Dakota delegates will be ethanol. The ethanol industry has a number of concerns including the need for higher blends like E 15, mandatory flex-fuel vehicles and VEETC, which expires at the end of the year.

“You can sense the enthusiasm from our delegates, they understand the importance of the issues faced by farmers and know what needs to be done,” said Duffy. “Our delegates take pride in representing our states’ producers and appreciate the opportunity to spend time talking about their concerns directly with members of congress.”

11 Board directors from both the South Dakota Corn Growers Association and South Dakota Corn Utilization Council will be on Capitol Hill this week including Keith Alverson, Chad Blindauer, Jim Burg, Bill Chase, David Gillen, Brian Smith, Jim Thyen, Walt Bones, David Fremark, Mark Gross and Darrin Ihnen.

All of the South Dakota delegates will meet personally with Rep. Herseth-Sandlin, Sen. John Thune and Sen. Tim Johnson.

“South Dakota is blessed to have a close connection with their representatives,” said Duffy.  “They want to hear from farmers personally.”

A number of issues were addressed at the U.S. Ag Committee’s Farm Bill Hearing held on the Augustana Campus in Sioux Falls on Tuesday morning. South Dakota Corn Growers Association President, Gary Duffy, testified in front of the committee touching on a majority of the topics.

Crop Insurance

“Federal Crop Insurance is the greatest risk management tool producers have. No one knows what Mother Nature is going to do. Crop insurance is efficient and effective for all crops.”

Conservations Security Program

“The Conservation Security Program is a step in the right direction. South Dakota has the fifth highest enrollment in the program…Producers are very aggressive stewards of the land, and this program has awarded them for their efforts. “

Biotechnology

“Biotechnology holds great promise for farmers and consumers around the globe. Biotechnology benefits growing economies and the environment. South Dakota has the highest use of biotech traits in the nation at 96%. Biotechnology is a necessity with the worlds growing population…American Producers stand ready to meet this challenge. In order to meet the demands of a growing world, biotechnology is a necessity in order to provide food, fuel, feed and fiber.”

Ethanol

“Ethanol is the largest market for South Dakota corn. We need to extend VEETC immediately. We need E15, blender pumps…and vehicles with flexible fuel technology, now!”

Developing Rural Economies

Wind energy, cellulosic ethanol and broadband internet were discussed as additional ways to assist in the development of rural America. South Dakota is behind in wind energy compared to its neighboring states, but holds great potential.

Helping Young Farmers

It is widely noted that the average age of the American Farmer is 57. Both the panel and Ag Committee showed their concern and realize more needs to be done to address this issue. Ensuring that young people can strive and prosper in agriculture is vitally important to all rural communities across America.

America has experienced a tough economy over the last year and a half or so with people losing jobs and new ones extremely hard to come by. One industry that has fought through the recession with the potential to expand is the ethanol industry. South Dakota’s ethanol industry has helped rural economies and communities thrive through good jobs and the purchase of locally grown corn and locally manufactured ethanol.   

There is although a disaster in waiting. The Volumetric Ethanol Excise Tax Credit (VEETC), the blender’s credit, is set to expire at the end of 2010 which would be detrimental to the industry. According to ENTRIX, South Dakota would lose 8,412 jobs. Quality jobs like these just can’t be duplicated in South Dakota, especially in the rural communities.

Nationally, 112,000 jobs would be lost with majority of them in Iowa, Illinois, Nebraska, Minnesota, South Dakota and Indiana. Besides jobs, United States ethanol production would be cut by 37.7% and the industry would purchase $6.6 billion less in grain and other raw materials. Corn prices would drop 8%. The elimination of tax revenues would equal $2.7 billion on the local and state tax level and $2.4 billion on the national level. Where exactly do you make up that economic activity?

Progress on renewing VEETC has been made with United States Representatives, Earl Pomeroy, D-N.D., and John Shimkus, R-Ill. introducing HR 4940, the Renewable Fuels Reinvestment Act, legislation that would extend VEETC for an additional five years. A number of Reps have also co-sponsored this bill including South Dakota’s own, Stephanie Herseth-Sandlin.

“Extending the VEETC is the single most vitally important action Congress can take to support thousands of jobs in all sectors and allow the ethanol industry to continue bolstering the economy with domestically produced fuel,” said Gary Duffy, president of the SDCGA. 

Just try and imagine more than eight thousand additional people being out of a job in South Dakota. Not a pretty picture. How many of you work for or know someone who works for an ethanol plant, trucking company, or in the ag industry? This legislation is more than just a step towards energy independence; it’s about our state and nation’s livelihood.