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Following intense
lobbying efforts by the ASA, state soybean associations and many other
organizations in the agriculture, nutrition, conservation, and energy
industries, the "Food, Conservation, and Energy Act of 2008" passed both
Houses of Congress. The new Farm Bill includes key ASA priorities,
including increasing the soybean target price to $6.00 per bushel,
authorizing a new Bioenergy Program and providing $300 million in
funding for biodiesel producers through 2012, continuing to fund the
Biodiesel Education Program at $1 million per year, and authorizing a
new Quality Incentive Program to promote production of soybeans with
high-stability oil that can replace trans fats in food products.
A delegation of
Chinese buyers from 14 import companies ended their tour of the U.S.
with a final stop in St. Louis on June 16, to sign contracts worth a
total of $5.3 billion, $4.5 billion of which was in soybean contracts.
ADM, Cargill and Bunge were among eight U.S. soybean export companies
that signed contracts. ASA, USB and the USSEC helped facilitate the
contracts with the China Chamber of Commerce for Import/Export of
Foodstuffs, Native Produce and Animal By-Products.
ASA formed a Market
Performance Working Group to examine the issues affecting markets and to
make recommendations on what might be done to improve the situation.
While farmers certainly welcomed higher prices for their crops, soybean
and other farmers had increasingly become concerned about the growing
lack of convergence between futures and cash prices, whether fund
participation in markets and related volatility has resulted in a larger
than normal basis, and the fact that many elevators had stopped offering
bids for grain beyond 60 days. ASA encouraged Commodity Futures Trading
Commission to take a number of steps that would improve futures market
performance and allow traditional hedgers to have greater confidence in
futures markets.
ASA joined other
commodity groups in a letter to Board members of the Grocery
Manufacturers Association expressing deep disappointment with the
negative "food before fuel" public relations campaign that GMA and
member companies have authorized and funded. ASA stated that its
farmer-members are surprised and offended that GMA board members would
take this public stance given the long-term partnership of farmers and
food companies to feed the world. "In our opinion, the GMA campaign to
influence U.S. biofuels policy also falsely portrays to the public and
Congress that farmers are greedy, irresponsible environmental stewards,
and unmoved by world hunger and rising retail food prices," the letter
states. The letter goes on to say "In your efforts to change U.S.
biofuels policy, please stop also blaming American farmers and
questioning our collective ability to rise to the opportunity and
challenge, as we always have, to produce plenty of food, feed, fiber and
fuel."
Following months of
diligent work by the ASA, USDA announced it would use 2007 and 2008
Season Average Prices in determining the revenue guarantee for the new
ACRE program. ASA’s legwork to generate support for using 2007 and 2008
figures was key to USDA’s last-minute decision. ASA grower leaders and
staff worked throughout the fall meeting with Members of Congress, USDA
officials and Office of Management and Budget officials to press their
case. This ASA policy success provides a revenue guarantee that is $60
to $70 per acre higher than if USDA had used 2006 and 2007 prices, and
makes available to U.S. soybean farmers billions of additional dollars
in revenue guarantees.
To educate growers
about the roles of the ASA and the soybean checkoff, ASA launched a
campaign that explains the difference and encourages soybean farmers to
join their state soybean association. While the law prevents soybean
checkoff dollars from being used to fund policy work and lobbying, ASA,
as a voluntary dues-paying membership organization can, and does, do
those things on behalf of soybean farmers. The campaign theme "If you
believe, belong." emphasizes that soybean growers believe the work ASA
does is important, and, therefore, they should become a member if they
are not already.
A record number of
people participated in the 2008 Commodity Classic Feb. 28-March 1, in
Nashville. Total registrations were 4,534, up 422 or more than 10
percent over the previous record of 4,112 set in Las Vegas in 2004.
Registrations this year included 1,479 growers, very near the record of
1,517 set in 2004. Media registrations also set a record at 145, 23 more
than the previous record of 122. The Trade Show was a sell-out with 847
booths, the highest number of booths ever, reflecting a 20 percent
increase over the previous record set in 2005. The ASA Auction generated
just over $64,000 for ASA’s SoyPAC, which was the most ever since the
SoyPAC was established.
ASA celebrated the
final passage of legislation that included an extension of the biodiesel
tax incentive for one year through Dec. 31, 2009, and provisions to shut
down the abusive “splash and dash” practice. Enactment of the biodiesel
tax credit represents a significant legislative achievement on a key ASA
priority because the growth in biodiesel sales has raised soybean bushel
prices by a conservative estimate of at least $2.00 per bushel.
ASA was credited with
playing a key role in defeating a ban in Poland that was to prohibit
import, production and use of animal feed derived from biotech crops.
Avoiding this ban prevented the disruption of U.S. manufactured feed to
Poland, worth $100 million annually. The GM feed ban was defeated by a
coalition of the Polish Feed Millers, Poultry Association, and Pork
Association, and U.S. trade associations, led by ASA.
ASA’s many years of
farm and trade policy work, and its long history of building export
markets, were largely responsible for the record level of U.S. soybean
exports reported by the USDA’s Foreign Agriculture Service. In its year
end report, USDA/FAS announced soybean exports exceeding 30.449 metric
tons, equivalent to 1.118 million bushels, for Marketing Year 2007/08.
China was again the largest buyer of U.S. soybeans at 490.6 mil. bu. The
European Union-27 was second with 143.1 mil. bu.; Mexico was third with
131.3 mil. bu.; and Japan was fourth with 99.5 mil. bu. Collectively,
these four buyers represented 77 percent of total U.S. soybean exports
during MY 2007/08.
ASA worked with U.S.
negotiators in Geneva who rejected proposals in the Doha trade
negotiations that did not provide sufficient market access for U.S.
producers. The latest proposal would have sharply reduced U.S. domestic
support programs, while allowing developing countries to increase
tariffs on key agricultural products above their current levels. ASA
continues to support the WTO framework as the most effective means for
expanding world trade, including access to foreign markets for U.S.
soybean and livestock product exports, but believes that any WTO
agreement must result in meaningful export gains.
In the best interest
of U.S. soybean farmers, the ASA Board of Directors voted unanimously on
Dec. 9, to ask the Secretary of Agriculture to order an Office of
Inspector General investigation and financial audit of the National
Soybean Checkoff Program. The ASA petition filed with Agriculture
Secretary Ed Schafer and the Inspector General of the U.S. Department of
Agriculture called for an investigation of the United Soybean Board and
the U.S. Soybean Export Council to ensure that soybean checkoff dollars
are being managed and invested as prescribed by law.
Cargill awarded
$499,000 to ASA’s World Soy Foundation (WSF). This is the largest
corporate donation to WSF today. The funding will be used to implement
nutritional programs in Central America, including Honduras, Guatemala
and Nicaragua for the next three years. |
