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NAMA News February 2009

Inside this Issue

  • Cole visits with Senate staffers about convergence issues in futures markets
  • Miller lays groundwork for industry coalitions
  • NAMA comments on the formation of NIFA
  • More federal funding needed for oat research
  • NAMA among many groups providing testimony at DGAC
  • USDA report underestimates potential negative aspects of LRP
  • Minnesota wheat growers visit NAMA
  • NAMA shares views on alpha amylase corn with Nebraska corn growers
  • Wheat Foods Council reviews campaigns
  • Wheat food chain lobbies for wheat research
  • Bair presents at IFC
  • NAMA members meet in Kansas City
  • Biotech principles laid out in letter to Secretary Vilsack
  • NAMA supports cross border trucking pilot program with Mexico
  • NAMA in the news
  • Conference calendar

Visiting with Senator Byron Dorgan (D-ND) are Mike McMullen, North Dakota State University (left) and Bruce Roskens, PepsiCo/Quaker Oats (right). The vist was part of NAMA's annual oat research lobbying event in Washington, DC.

Cole visits with Senate staffers
about convergence issues in futures markets

Rick Cole, General Mills, Inc. and Jim Bair, NAMA vice president, met with Senate staffers to talk about the futures markets for grain. They met with the U.S. Senate Permanent Subcommittee on Investigations (PSI). PSI is "investigating the effect of the recent increase in index fund investment in many commodity markets." Through the investigation, PSI hopes to understand "why the futures markets are not providing an accurate measure of the cash prices for these commodities." The subcommittee has been studying the markets since April 2008. It will submit a written report to Congress by June 2009. Cole and Bair told the Senate investigators that NAMA does not have an official position on the current state of affairs in the futures markets. They also cautioned the investigators about viewing "speculators" as inherently evil, since local spec traders provided much-needed liquidity to the market, and allow processors to hedge risk. They also counseled caution before Congress attempts to undertake an overhaul of futures trading regulations.

Miller lays groundwork for industry coalitions
NAMA Chairman John Miller, president of Miller Milling Company, came to Washington, DC to meet with the association CEOs with whom NAMA works to discuss some of our common issues. The meetings laid the foundation for continued collaboration and reacting quickly on issues when needed. NAMA President Betsy Faga accompanied Miller on his visits to:

Miller and Faga also attended the USDA Agricultural Outlook Conference and Lunch.

NAMA comments on the formation of NIFA
The establishment of the National Institute of Food and Agriculture (NIFA) is mandated in the U.S. Department of Agriculture Reorganization Act of 1994. All programs and authorities currently delegated to USDA’s Cooperative State Research, Education, and Extension Service (CSREES) will transfer to the Institute no later than October 1, 2009. The public was invited to comment on the establishment of NIFA. NAMA and six other ag groups joined together to submit comments.

In the comments, the group suggested eight principles for implementing NIFA. The comments are available online at http://www.namamillers.org/NewsArchives09/NIFA.html.

Ag groups represented:

More federal funding needed for oat research
Oat millers, researchers and producers were in Washington in February once again to push for continued federal funding for critical oat research projects. There is no privately funded oat research in the US. Public funding is less than $5 million annually, compared with several corn seed companies that each invest more than $1 million in research every day. Relative to competing crops, oat yield growth is relatively flat.

Three teams visited the offices of 27 Senators and Representatives. Team members were:

NAMA staff members Jim Bair, vice president, and Jane DeMarchi, director of government relations, along with Kent Wilson, General Mills Washington office, led the teams.

The teams visited these offices:
Senate:

Sam Brownback (R-KS)
Byron Dorgan (D-ND)
Richard Durbin (D-IL)
Chuck Grassley (R-IA)
Mike Johanns (R-NE)
Tim Johnson (D-SD)
Amy Klobuchar (D-MN)
Herb Kohl (D-WI)
Mary Landrieu (D-LA)
Patty Murray (D-WA)
Jim Risch (R-ID)
John Thune (R-SD)
Ben Nelson (D-NE)

House of Representatives:

Stephanie Herseth Sandlin (D-SD)
Rodney Alexander (R-LA)
Pete DeFazio (D-OR)
Jeff Fortenberry (R-NE)
Maurice Hinchey (D-NY)
Tim Johnson (R-IL)
Tom Latham (R-IA)
Dave Loebsack (D-IA)
Betty McCollum (D-MN)
Walt Minnick (D-ID)
Erik Paulson (R-MN)
Earl Pomeroy (D-ND)
Mike Simpson (R-ID)
Tim Walz (D-MN)

For more information about the production of oats in the U.S. and research priorities, visit http://www.namamillers.org/cs_talkingpoints_oat.html.

NAMA among many groups providing testimony at DGAC
The second meeting of the Dietary Guidelines Advisory Committee (DGAC) was held January 29-30. The committee invited the public to provide oral testimony and written comments. Most of the oral testimony recommended a plant-based diet for Americans.

NAMA’s president, Betsy Faga provided testimony on behalf of the milling industry. In her comments, Faga asked the committee to treat whole and enriched grains equally and to recognize the health benefits of both. She also recommended the DGAC coordinate its message with the policies and programs of the U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC). FDA is responsible for mandating the inclusion of folic acid in enriched products. The CDC has undertaken a universal flour fortification initiative that encourages enrichment of flour worldwide.

The March of Dimes, the Spina Bifida Association and the National Council on Folic Acid all made comments about the overwhelming scientific evidence supporting folic acid fortification to help prevent birth defects.

The next meeting of the Dietary Guidelines Committee is April 29-30, 2009.

USDA report underestimates potential negative aspects of LRP
In a letter to Secretary of Agriculture Tom Vilsack, NAMA and other ag organizations questioned a USDA report on the advantages and disadvantages of locally and regionally purchased (LRP) food aid. At issue is whether the report underestimated the "potential negative aspects of LRP and supports an agenda and thesis that LRP and cash transfers are already successful enough to warrant significant expansion." The group requested a meeting with Secretary Vilsack to discuss the report and the pilot project on which the report was based.

NAMA, as a proponent of in-kind food aid as the "most sustainable tool in the food aid toolbox," spearheaded the letter. In-kind food aid is provided through programs such as PL 480/Title II, Food For Progress and the McGovern-Dole Food for Education and Child Nutrition Programs. To read the letter, go to http://www.namamillers.org/Vilsack022009.html.

Minnesota wheat growers visit NAMA
Over the last couple of years Minnesota wheat growers have stopped by NAMA’s offices to visit about wheat issues such as research, biotechnology and declining acres. Jim Bair, NAMA vice president and Jane DeMarchi, NAMA director of government relations met with Brian Jensen, Stephen, MN; Art Brandli, Warroad, MN and Chad Anvinson, Oslo, MN.

Ken is a board member of the Minnesota Wheat Council. Art serves on the board of the Wheat Foods Council and is co-chair of the US Wheat and Barley Scab Initiative. The growers were in town to attend a joint meeting of the U.S. Wheat Associates and the National Association of Wheat Growers.

NAMA shares views on alpha amylase corn with Nebraska corn growers
Every year the Nebraska corn growers take time to visit NAMA to discuss corn issues. This year the group discussed Syngenta’s alpha amylase corn. NAMA shared its views that USDA should suspend consideration of alpha amylase corn until the functionality the event might have on food and feed can be adequately assessed and understood. This position was shared by NAMA, the National Grain and Feed Association and the North American Export Grain Association in comments submitted to the U.S. Department of Agriculure. Read the comments in their entirety at http://www.namamillers.org/NewsArchives09/amylasecorn.html.

Wheat Foods Council reviews campaigns
NAMA president Betsy Faga attended the winter Board of Directors meeting of the Wheat Foods Council (WFC). Account executives from Burson-Marsteller, the WFC’s public relations firm, reviewed the 2008-2009 campaigns – the Urban Wheat Field and a World of Pastabilities. The Urban Wheat Field that provided a farm-to-fork journey in the middle of New York City racked up an array of impressive statistics:

Discussion is underway by the Board to extend the wheat field experience both virtually and in another live location.

The educational component of the meeting included presentations on:

Jane Demarchi pictured with members of the National Association of Wheat Growers and the National Wheat Improvement Committee
Jane DeMarchi, NAMA director of government relations (front) pictured with representatives of the National Association of Wheat Growers (NAWG) and the National Wheat Improvement Committee (NWIC).

Wheat food chain lobbies for wheat research
The entire wheat food chain was represented in meetings with House and Senate offices to discuss funding for wheat research. The top priorities for the group set by the National Wheat Improvement Committee (NWIC) include funding for a Cereal Rust Initiative, additional funds for the four small grains genotyping labs, additional funding for the four wheat quality labs and securing funding for the International Wheat and Maize Improvement Center in Mexico. For a complete list of the NAWG-NWIC priorities go to http://cropandsoil.oregonstate.edu/wheat/reports/NWIC/.

In addition to Jane DeMarchi, NAMA was represented in the hill meetings by the following millers

Bair presents at IFC
NAMA vice president Jim Bair presented the keynote speech at the annual training and marketing meeting of Industrial Fumigant Company in Kansas City. Bair updated the group on relevant pesticide regulatory issues and provided perspective on the recent Obama appointments with environmental portfolios.

NAMA members meet in Kansas City
Wheat millers and growers met to discuss research priorities in Kansas City immediately following the Wheat Quality Council meeting. John Oades of US Wheat Associates discussed national programs dedicated to promoting wheat quality and state wheat grower groups discussed how they use their check off dollars to support wheat research within their states. State initiatives include research dedicated to biotech wheat and plans to expand the milling capability at the Northern Crops Institute.

NAMA’s Director of Government Relations, Jane DeMarchi was named to the board of directors of the Wheat Quality Council during their meeting. Congratulations Jane!

Biotech principles laid out in letter to Secretary Vilsack
As a member of the AgBiotech Planning Committee (ABPC), NAMA has cosigned a letter to Department of Agriculture Secretary Tom Vilsack. This letter introduces the mission and key goals of the Committee, while also urging the administration’s continued support of important issues. These issues include:

The ABPC looks forward to working with this administration and other USDA officials to help assure the continued safe development, commercialization and trade of biotech products.

NAMA supports cross border trucking pilot program with Mexico
As a supporter of free trade, NAMA joined 78 companies and associations in signing a letter to President Barack Obama urging him to continue support for the U.S. Department of Transportation’s Cross Border Trucking Pilot Program with Mexico. This program allows trucks to operate across the U.S. – Mexico border, which in turn lowers transportation costs and reduces congestion at the border. The termination of this program would result in loss of jobs for U.S. workers and a possible retaliation of up to $2 billion per year by Mexico, a top export market for U.S. goods and services.

NAMA in the news
February 17, 2009
USDA Poised to Approve First Genetically Engineered Corn for Ethanolhttp://www.allamericanpatriots.com/usda/48749945-usda-poised-approve-first-genetically-engineered-corn-ethanol
All American Patriots (press release) - Taeby, NA, Sweden
... North American Export Grain Association, and North American Millers' Association, also opposed USDA approval of this engineered corn, citing concerns ...

Conference calendar
2009 Division Meetings, Ft. Myers, FL
Sanibel Harbour Resort & Spa
March 21-24, 2009

2009 Leadership Meeting, Washington, DC
The Liaison Hotel
May 20-21, 2009

50th Annual Corn Dry Milling Conference, East Peoria, IL
Hotel Pere Marquette
June 17-18, 2009

2009 Annual Meeting, Washington, DC
Sofitel Lafayette Square Hotel
October 19-21, 2009

2010 Division Meetings, Ft. Lauderdale, FL
W Fort Lauderdale
March 20-23, 2010

2010 Annual Meeting, Del Mar, CA
L'Auberge Del Mar Resort
October 14-16, 2010

The North American Millers’ Association prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact NAMA at 202.484.2200 (voice and TDD). To file a complaint of discrimination, write to Betsy Faga, President, 600 Maryland Avenue SW, Suite 825W, Washington, DC, 20024 or call 202.484.2200 ext. 13. NAMA is and equal opportunity provider and employer.

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