CEO Report To The Board & States
July 2009

As Congress and the Administration have been busily crafting legislative and regulatory packages, ASA has been at the center of the action representing U.S. soybean farmer interests. Heavy domestic utilization and record-breaking levels of soybean exports at more than 1.1 billion bushels have resulted in very low ending stocks of only 110 million bushels. Responding to market signals and challenging spring weather, U.S. soybean farmers planted more than 77 million acres of soybeans. Now I would like to review just a few of the significant developments that have taken place since ASA’s March Board of Directors meeting. Stephen Censky, July 2009

ASA Celebrates Approval of LibertyLink® and Roundup Ready 2 Yield™ Soybeans   On April 2, ASA celebrated more than a decade of diligent and persistent work on behalf of U.S. soybean farmers to advance global acceptance of new biotech soybean traits after LibertyLink® soybeans received food safety approval from the Korean Food and Drug Administration (KFDA). This final regulatory approval in South Korea cleared the way for unrestricted planting in the U.S. and importation into all major markets for LibertyLink soybeans, along with Roundup Ready 2 Yield™ soybeans, which received final KFDA regulatory approval on Feb. 27, 2009.

USDA Implements ASA Biodiesel Priorities   USDA announced implementation of provisions of the 2008 Farm Bill that support growth of biofuels production in the U.S., including biodiesel. The initiatives include $30 million in funding for the Bioenergy Program for Advanced Biofuels which ASA successfully lobbied for during the farm bill debate. Under this program, U.S. biodiesel producers using domestic feedstocks will receive payments to help compete with petroleum-based diesel and with imported biodiesel, which can be subsidized by foreign governments. While pleased that USDA is moving forward with implementation, ASA is urging that USDA make some changes in its proposed rules so that payments are based on all gallons produced, not incremental gallons.

Spray Ruling Stayed   The U.S. Court of Appeals for the 6th Circuit has granted the U.S. Environmental Protection Agency’s (EPA) request to stay its ruling in National Cotton Council vs. EPA until April 9, 2011. EPA had asked for the 2-year stay in order to structure a permit program for spraying pesticides on or near water. EPA estimates that the ruling will apply to some 5.6 million annual pesticide applications for 365,000 applicators. The full appellate court is still considering the industry’s petition for a full hearing to overturn the panel’s original ruling. ASA filed an amicus brief in support of the rehearing earlier this year, and will continue to closely monitor the case.

ASA Testifies on Flaws in EPA’s Proposed Rule for RFS-2   ASA testified at the Environmental Protection Agency’s (EPA) Public Hearing on its Proposed Rule for the expanded Renewable Fuel Standard (RFS-2). ASA stated that EPA’s assumption that U.S. production of biodiesel has resulted in indirect land use change by diverting rain forest in Brazil to soy production is unjustified. ASA pointed out that Brazilian soy area increased most significantly in 1998-2004 -- prior to the existence of U.S. biodiesel production. In 2004-2008, when U.S. biodiesel production increased from 25 million gallons to 700 million gallons, Brazilian soy area actually decreased.

ASA Submits Soybean Research Priorities to USDA   ASA provided comments on the development of a roadmap for agricultural research being prepared by the Research, Education and Extension Office (REEO) of USDA. The preparation of the roadmap was mandated in the 2008 Farm Bill.

ASA Weighs in on Conservation Cuts   ASA and a coalition of 50 farm, forestry, conservation, and environmental groups wrote members of the House and Senate Agriculture Appropriations Subcommittees opposing proposed cuts in agricultural conservation programs. President Obama’s FY-2010 budget proposes cuts of over $500 million, including $250 million to the Environmental Quality Incentives Program (EQIP) and $30 million to the Wildlife Habitat Incentives Program (WHIP).

ASA Supports Peterson Climate Change Provisions but not House Bill   As the House of Representatives took up its version of climate change legislation on June 26, ASA strongly endorsed agriculture-related provisions sponsored by Agriculture Chairman Collin Peterson (D-MN). The provisions explicitly exempt agriculture from the bill’s greenhouse gas emissions reduction requirements, and put USDA in charge of implementing an agriculture and forestry offset program under which producers can earn credits for practices that reduce, sequester or avoid greenhouse gas emissions. The Peterson amendment would also prohibit EPA from taking international indirect land use changes into account in determining the eligibility of biodiesel under the Renewable Fuels Standard mandate for five years, while this issue is studied. While supporting the Peterson provisions, ASA did not endorse the underlying climate change bill, citing its uncertain but potentially major impact on energy costs to soybean processors and manufacturers of agricultural inputs. ASA will work to improve any final climate change bill when the Senate takes up the issue later this year.

ASA Opposes Administration’s Proposed Cuts in Ag Budget   ASA and other farm organizations joined forces in a letter to the House Agriculture Appropriations Subcommittee opposing the cuts in agriculture-related programs in the Administration’s budget proposal for FY-2010. The letter objects to the proposal to means test farm payments by restricting eligibility to producers with less than $500,000 in annual income from agricultural sales, as well as a proposal to cap Marketing Loan Gains and Loan Deficiency Payments. Also highlighted are concerns with the proposed 20 percent cut in the $200 million budget for the Market Access Program, which supports soybean and livestock product exports.

AOC Submits FTA Priority List to USTR Kirk   ASA and other members of the American Oilseed Coalition (AOC) submitted a letter to U.S. Trade Representative (USTR) Ron Kirk identifying countries that are priorities for the U.S. oilseed industry for future Free Trade Agreements (FTAs). ASA’s top priorities include ASEAN countries, including Indonesia, Thailand, Malaysia, the Philippines and Vietnam, Turkey, Egypt, and India. The letter indicated that these countries offer potential market growth expansion not only for soybeans and soybean meal and oil, but for exports of pork and poultry products as well. In addition to ASA, AOC members include the National Oilseed Processors Association, the National Sunflower Association, the U.S. Canola Association, and the National Cottonseed Products Association.

ASA Wins Two National NAMA Awards   At the National Agri-Marketing Association (NAMA) Conference and Trade Show in Atlanta, Ga., April 15-17, ASA won two first place awards in the National Best of NAMA competition. The annual Best of NAMA competition honors the best in agricultural marketing communications. ASA won first place in the category of "Producer Funded Public Relations Program to Ag Audiences." ASA also won first place in the "Single-page Ads—Single" category. The ASA public relations campaign was aimed at increasing soybean grower awareness and understanding of ASA while emphasizing the importance of membership. The award-winning work was created for ASA by the marketing communications agency David & Associates.