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KyCGA News
Please check the
HOME page for the most up-to-date
news regarding the corn industry and your operation.
April 2009
For Immediate Release - April 20, 2009
Report Says Corn Ethanol Had Little Impact
on Food Prices
Corn Growers Say It’s Time for Agriculture to Stand Up and
Support Renewable Fuel
(EASTWOOD, KY) – A study released last week by the Congressional Budget
Office (CBO) found corn-based ethanol was responsible for only a fraction of
food inflation between 2007 and 2008, representing only 10 to 15 percent of
the total food price increase. The CBO report said that 85 to 90 percent of
the increase in food prices over the measured period came from something
other than corn prices, grain prices and ethanol.
“The study reports what we have known all along,” says Kentucky Corn Growers
Association President Philip McCoun, a livestock and grain farmer in
Shelbyville. “There are many other factors that played a much larger impact
on food prices last year.”
While corn prices did increase last year, which many sources have said was a
result of bad speculation, the price also came right back down after
American corn farmers were able to produce a crop that met market demand for
food, feed and fuel ethanol. In fact, there were more ending stocks of corn
than the two previous years.
“Opponents of biofuels promote a simplistic message that taking more from
the pie for ethanol leaves less for food and feed,” said NCGA Chief
Executive Officer Rick Tolman about the CBO report. “The reality is that the
pie is getting bigger and more can go for ethanol without taking away corn
from food and feed. It is not a zero-sum game. Agriculture is in the midst
of a tremendous technology boom that is increasing productivity with the
same or fewer inputs and resources.
"The CBO report states that increasing crop yields or improving the
technology for making ethanol from corn or other sources would tend to lower
food prices,” Tolman continued. “Both of those are happening today. Corn
yields in the United States have doubled over the last 30 years, and will
double again in the next 20 years.”
Corn
grower and farm organizations across the country have been involved with
numerous consumer education campaigns to dispel myths regarding commodity
prices and their effects on food costs. According to the U.S. Department of
Agriculture, farmers receive less than two dimes out of every dollar spent
for food in the United States. Eighty percent of the costs of food,
including processing, transportation, packaging, distribution and retailing
are all added after the commodity leaves the farm.
“It is time for the farm
community to take a stand for ethanol and other agriculturally-produced
fuels,” said McCoun. “We can’t keep letting those with deep pockets push
misleading and sensational information onto the public. The facts are right
here in front of us, and we need to work together to drive the truth home.”
###
Read the April 2009 KyCGA
Newsletter
December 2008
Pilgrim's Pride Files for Chapter 11
KyCGA Responds to Grower Concerns
(December 5, 2008) Eastwood, KY
- The Kentucky Corn Growers Association (KyCGA) is extremely
concerned with the recent Chapter 11 Bankruptcy filing of
Pilgrim’s Pride. Our most immediate concern is for payment
to producers who have delivered or will deliver corn in
December. Our secondary concern is for the large amount of
corn contracted for delivery in January and beyond.
It is our understanding that
local producers who have delivered corn to fill December
contracts have been issued checks. Many producers have
deposited the checks and are awaiting bank clearance.
For a number of years Pilgrim’s
Pride has been a tremendous market for producers in Western
Kentucky, we hope they can emerge successfully from their
Bankruptcy reorganization.
The KyCGA
has begun communications with Pilgrim’s Pride and the
National Corn Growers Association (NCGA) and numerous corn
producers involved. In addition we have contacted the
Kentucky Department of Agriculture to learn how the Grain
Indemnity Fund may be used in the case of contract failures.
Our most recent involvement in the VeraSun Bankruptcy case
should provide some insight on how grain contracts are
handled in Bankruptcy Courts. Our goal is to keep the
communication channels open between all parties involved.
The local staff at Pilgrim’s Pride have been very helpful as
we work through this complex situation.
A few
thoughts to keep in mind is that the Grain Indemnity Fund
will likely not provide payment for a loss of
funds due to a change in the price of corn that a producer
is paid as compared to what was contracted. For example in
the event a producer contracted for delivery of $5.50 per
bushel corn and through the Bankruptcy process receives only
$3.00 per bushel for the Bankrupt party. The Grain Indemnity
Fund will not likely make up the loss of the
$2.50 per bushel. We have asked for a review of this
question by the Grain Indemnity Fund, but until an answer is
derived, we urge producers to give this scenario serious
consideration. Also remember that the maximum the Grain
Indemnity Fund will pay out to any producer is $100,000.00.
Should you
have any questions or concerns, please feel free to contact
us at 1-800-326-0906 or
info@kycorn.org. More information is also available on
the Pilgrim’s Pride website at
www.pilgrimspride.com.
Updates
will be provided as more information becomes available.
Below is an
excerpt taken from PP website:
Dear Pilgrim's Pride Stakeholders,
On December 1, Pilgrim’s Pride Corporation
voluntarily filed for relief under Chapter 11 of the U.S.
Bankruptcy Code. First and foremost, this does not mean we
are going out of business. In fact, I’d like to emphasize
that we expect it will be “business as usual” as we work
through this restructuring process. We remain steadfast in
our commitment to rebuilding our business and maintaining
our core values. Our dedication to our customers, employees
and business partners will not change. We deeply appreciate
your support and cooperation as we move through this
process.
Please click here
for more information.
Clint Rivers, President and Chief Executive
Officer
###
October 2008
Producers Can Now Perform Benefit
Analysis of ACRE Program
(October 15, 2008) Eastwood, KY – The Kentucky Corn Growers
Association (KyCGA) and several other state corn grower
associations have sponsored the development of a computer
program that will perform detailed benefit analysis of
producer operations under traditional farm programs versus
the new Average Crop Revenue Election (ACRE) program.
All KyCGA members will soon be receiving a copy of the
program and its accompanying informational brochure as a
membership benefit.
The National Corn Growers Association (NCGA) was the only
agricultural association fighting for the ACRE program in
Washington. Kentucky is especially grateful for their
efforts, as the benefits for producers under ACRE are many.
“Providing a tool for producers to use when determining
whether or not to sign up for the ACRE program is an
important part of our job as a producer organization,” said
Jerry Griffith, KyCGA President. “NCGA worked hard to
provide this important tool as a safety net for corn growers
in an effort to give them the best available information to
help in their decision making.”
Because the USDA has not finished its final rule-making
procedures, some of the assumptions in the program could
change. Updates will be available through the KyCGA website
(www.kycorn.org)
as changes occur. All growers, including those who are not
currently KyCGA members, will be able to visit to access and
utilize the program online after December 1, 2008.
ACRE consists of
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Direct payments equal to 80% of direct
payments under the traditional direct payment program
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Marketing loan payments with loan rates set
at 70% of marketing loan rates established in the 2008
Farm Bill
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ACRE revenue protection payments.
July 2008
Grower Leaders Travel to DC to Talk RFS, Ethanol and
Farm Policy
KyCGA President Jerry Griffith (Mayfield), Sen.
Mitch McConnell, and Kentucky Corn Promotion Council
Vice Chairman Terry Rhodes (Whitesville)
The Kentucky delegation discussed the RFS
waiver
with Rep. Ed Whitfield on Wednesday.
Kentucky corn growers were well-represented
this week in Washington, D.C. at NCGA’s annual Corn
Congress. Delegates from corn states met to discuss
official business such as NCGA Officer and NCGA Board
elections.
Prior to Corn Congress,
a 2-day Corn Communications Summit took place to help bring
all states together on messaging for the current Food and
Fuel challenges that exist in the communications arena. It
is imperative that a well-planned process is in place to
identify and mitigate damages from crises that arise from
corn ethanol opponents. Much was accomplished, but much
work is still ahead.
Some policy work was
taken up as well. There were a few minor policy issues
discussed by the voting delegates. KyCGA did take the
opportunity to make a few Hill visits and share our
organization’s thoughts about a variety of issues that
affect the corn industry. Of course, the RFS and the Energy
Bill was of main concern. Other topics included Climate
Change, rising gas prices, transportation, Farm Bill
implementation, Clean Water Restoration Act and commodity
trading.
Grower leaders had very
productive meetings with several Members of our
Congressional Delegation. Primarily, we issued thank-you’s
for the many accomplishments so far this session. As
Senators and Congressmen are in Kentucky throughout the
August recess, farmers should take the time to show their
appreciation for the outstanding victories that our
representatives in Washington have delivered for farmers
this year.
June 2008
News Release - 6.20.08
Corn Growers Expect Excellent Crop Despite Late Start
(Louisville, KY) – Eighty percent of the 2008 Kentucky corn
crop was designated in good to excellent condition according
to the June 16 Kentucky Agricultural Statistics Service (KASS)
Weekly Crop and Weather Report despite the late
planting due to heavy Spring rainfall. In fact, corn
emergence was ahead of the five-year average, at 98 percent.
“This is
great news for our growers,” says Jerry Griffith, president
of the Kentucky Corn Growers Association (KyCGA). “Each year
we are so dependent on the weather, and it looks like it
will work in our favor this growing season.”
Read more
KyCGA tells our side of the Ethanol
story on KET's Kentucky Tonight
View the podcast
(June 16, 2008) - KyCGA
Executive Director Todd Barlow was a guest on KET1's
Kentucky Tonight television program to discuss ethanol.
He was joined by representatives of the Community Farm
Alliance, Kentucky Farm Bureau, and the Kentucky Cattlemen's
Association.
May 2008
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KyCGA Newsletter
Released 5/23/08
2008 -
Issue No. 2 (pdf)
In this issue:
- Carbon Program
Update
- Corn Growers Tackle
Food and Fuel
- Market Development
Efforts
- Late Corn Planting
Date and Yield
- Grain Crops Academy
a Success
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Message from the President
Corn Growers should proactively defend their industry
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Jerry Griffith,
KyCGA President |
Corn farmers and the ethanol industry have
taken a smattering in the press over the past few months.
Rapid fire has been coming from all angles: national media,
local media, the grocery industry, the petroleum industry.
There is more to come, too. Estimates about how many
advertising dollars ethanol opponents will dedicate over the
next 12 months reach the $100 million mark. It’s obvious
that our financial resources can’t compare with that, but
there is still a lot that we can do.
I urge you to do everything that you can to
combat the negative press that has been directed toward our
livelihoods. Our opponent’s campaign is making progress. You
can’t turn on the TV or read the paper without hearing some
sort of hit-job on the ethanol industry. In response to the
pressure caused by this media frenzy, Congress held a
hearing to investigate rescinding the Renewable Fuels
Standard that was just passed a few months ago. The U.S.
ethanol industry has been characterized by the United
Nations as a “criminal path” because it causes an explosive
rise in global food prices (the only problem with that
accusation is that we have increased our corn surplus every
year in spite of ethanol demands; see the chart on page 5).
Our opponent’s facts just don’t add up, but consumers don’t
hear what is not being explained to them.
As corn growers, it is our responsibility to
ensure that allegations on our industry do not go
unchallenged. Everyone should arm themselves with the facts.
When you see an unbalanced story, be prepared to rebut it.
Letters to the Editor are a great way to do this, and the
more the better. Get the good press out there for a change.
When your paper does a good job in reporting the facts,
thank them. If you need help putting something together,
contact KyCGA staff.
No one will tell our side of the story
except us, and if we don’t, all of our ethanol progress will
be lost. I recently submitted an Opinion-Editorial in
several daily papers in the state, so please look for it
over the next few weeks. I urge you to participate with me
in setting the record straight.
Make yourself familiar with the new “food
and fuel” link on our website. It contains copies of
editorials and letters-to-the-editor that others in our
industry have gotten in newspapers. News articles, both
supporting and criticizing ethanol, will be posted. You will
also be able to find the latest fact sheets and research on
issues surrounding the food and fuel debate. The information
will be updated regularly, so check the link often. Also, if
you don’t receive our weekly e-mail updates, contact staff
to get on the list.
Go to
Food, Fuel & Farming Page
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