What is in this article?:
- Trade plays critical role in supporting corn market
- Task grows
- Trade is critically important to U.S. corn growers' balance sheets - just look at what happens to corn prices when export demand wanes - but trade issues never seem to take center stage the way ethanol or farm programs do.
Trade is critically important to U.S. corn growers' balance sheets - just look at what happens to corn prices when export demand wanes - but trade issues never seem to take center stage the way ethanol or farm programs do.
As a result, NCGA's sustained efforts in the trade arena are too often overlooked. But they are still essential.
Walter Goeppinger, NCGA's founder, recognized the importance of trade. Within three years of establishing NCGA, he played a leading role in creating the U.S. Feed Grains Council (now the U.S. Grains Council) as a tool to develop export markets for U.S. corn.
Goeppinger, who presided over NCGA from 1957 to 1973, also served as the USFGC's first chairman in 1961.
Nearly 40 years later, Nebraska grower Bob Dickey, like Goeppinger, served in both roles -- USGC chairman in 1998 and NCGA president in 2009.
Dickey, whose mantra at the Grains Council was "exports move my markets," made better coordination between NCGA and the USGC a primary goal of his presidency, helped by the closer ties that developed after 2000, when Rick Tolman left a senior post at USGC to become NCGA's chief executive officer.
"Following the Corn Vision 2012 effort, NCGA and the Grains Council began to sit in on conference calls, sit in on each other's meetings, and have joint meetings," says Dickey. "Now we're housed together in Washington, DC. We've jointly rented space not far from the Capitol, and we have a common receptionist and use the office equipment together. We will share board rooms, and I think it will be a big success."
Close working relations between the two organizations are critically important to corn farmers because of the way their strengths dovetail.
The Council is pre-eminently a market development operation with overseas offices and representatives. Operating globally, it not only builds demand, it also provides market information and education and works with end users to remove trade barriers in importing nations.
It does not, however, lobby the U.S. Congress on U.S. trade policy because it receives matching funds from the U.S. Department of Agriculture, and it is not structured to mobilize widespread grower involvement in trade issues the way NCGA can.
One of the essential but undramatic contributions NCGA makes to trade effort is making sure, year after year, that Congress appropriates funding for USDA's market development programs - not an easy task since the Market Access Program (MAP) is frequently targeted for budget cuts.
As part of the 2008 farm bill, the NCGA helped achieve $200 million for the Market Access Program (MAP) and $34.5 million for the Foreign Market Development (FMD) Program.
What gains far more attention is NCGA's role as the official representative for U.S. corn growers, providing testimony, lobbying Congress and the administration, even taking legal action to defend U.S. exports in trade disputes, some of which extend over many years.
There are many examples, from NCGA's passionate protest against the Carter administration's 1980 embargo on grain sales to the Soviet Union to mounting a legal defense against a Canadian challenge of U.S. commodity programs.
In the mid-1980s, when Spain and Portugal joined the European Union, NCGA contributed to an all-out negotiation effort that assured access to the Iberian market for up to two million tons (79 million bushels) of corn imports annually, until 1998 when a new dispute over biotechnology halted U.S. export sales.