CEO Report To The Board & States July 2011 |
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While farmers dealt with soggy fields and flooding in many areas, ASA leaders participated in multiple missions to meet with key contacts and government officials in China, Belgium, Spain, Portugal, Germany and Turkey to discuss the approval process for seed traits developed through biotechnology, import protocols, and the role U.S. soy plays in attaining environmental and sustainability goals. ASA also met with the EPA Administrator and Secretary of Agriculture to express concerns about environmental regulations negatively affecting farmers; testified before Congress on the importance of export market development programs; met with the Administrator of the Panama Canal Authority; discussed with Administration officials issues relating to possible interference with the Global Positioning System (GPS) units; briefed Senate staff and expressed concerns with the Office of Management and Budget about potential trade agency reorganization; and hosted a training program for new State Executive Directors. U.S. soy flour, soy oil and soybean seed arrived in Afghanistan under the Soybeans in Agricultural Renewal of Afghanistan project, launched by ASA’s World Initiative for Soy in Human Health program last year. In addition, below are a few of the most significant developments since ASA’s March Board meeting –Stephen Censky, July 2011 Biodiesel Tax Credit Extension Bills Introduced in House and Senate ASA-supported bills calling for a 3-year extension of the biodiesel tax credit through 2014, have been introduced in both the House (H.R. 2238) and Senate (S. 1277). A multi-year extension, which ASA has strongly advocated, is necessary to provide stability and certainty to the still maturing biodiesel industry. The current biodiesel tax incentive expires on Dec. 31, 2011. ASA, along with soybean farmers, state soybean associations, and the biodiesel industry, has been working to enlist additional cosponsors and supporters. In addition to providing a multi-year extension, the bills would also shift the credit from a blender’s credit to a production tax credit. This shift would improve efficiency in the administration of the credit and reduce opportunities for fraud and abuse. ASA wants to ensure that biodiesel is in position to be included in any energy and/or tax policy measures that are developed by Congress. Senate and House Moving Forward on Trade Agreements Draft implementing bills for the South Korea, Colombia, and Panama Free Trade Agreements (FTAs) are being considered by Senate and House Committees. ASA has been working for a number of years toward passage of these trade agreements because increased exports of U.S. soy and soy-fed meat and poultry will benefit soybean farmers and rural economies. ASA is calling on Congress and the Administration to quickly advance these agreements, along with appropriate Trade Adjustment Assistance, in order to boost the U.S. economy. Passage of these three agreements combined would represent nearly $3 billion of additional agriculture exports to these trading partners. ASA President Welcomes Chairman of European Parliament’s Ag Committee ASA welcomed Dr. Paolo De Castro, Chairman of the European Parliament’s Committee on Agriculture and Rural Affairs, at a trade luncheon organized by ASA at the National Press Club in Washington, D.C. on June 13. In his remarks, ASA President Alan Kemper pointed out the responsibilities that the agriculture sectors in the United States and the European Union share in providing food, feed, fiber, and fuel to meet a growing world demand. Kemper also met with De Castro to express the need for the EU to implement a transparent, science-based approval process that does not delay commercialization of new biotech traits in the U.S., and discussed the European Union’s (EU) Renewable Energy Directive (RED) that threatens U.S. soybean exports to the EU, valued at $1.36 billion in 2010. ASA Meets with Administration Officials on EU RED ASA organized a series of meetings with representatives from the White House, U.S. Department of Agriculture and the U.S. Trade Representative to address the European Union’s (EU) Renewable Energy Directive (RED), and its impact on U.S. soybean exports. The EU’s RED uses faulty values for the amount that carbon emissions are lowered by using biodiesel derived from U.S. soybeans that disqualify it from being an approved biofuel with the EU. The RED also uses a paperwork intensive, farm-level sustainability certification, auditing, and tracing scheme that is incompatible with the U.S. bulk commodity handling system. ASA has been working with a coalition including the United Soybean Board, U.S. Soybean Export Council, and grain exporters to address these issues. ASA is urging the U.S. Government to enter an agreement with the EU that affirms the sustainability of U.S. soybean production – without the need for individual farm certification, auditing, and tracing – based on U.S. farmers’ compliance with existing U.S. laws and regulations. Additionally, ASA is urging that the carbon savings obtained when using biodiesel derived from U.S. soybeans be significantly increased. ASA, USB, USSEC Sponsor Ag Biotechnology & Food Security Conference in Beijing ASA, the United Soybean Board, and U.S. Soybean Export Council sponsored and organized the 2011 International Ag Biotechnology & Food Security Conference June 21-22, in Beijing, China. Presentations and discussions took place on developments in North American and South American biotechnology; how biotechnology supports agricultural sustainability; and benefits of world commodity trade to Chinese agriculture and food security. A panel of experts discussed how biotechnology is vital to sustaining Chinese food security, and participants received information on improving nutrition and food safety through biotechnology. China is the largest foreign buyer of U.S. soybeans. ASA Urges Additional Resources to Keep Inland Waterways Functioning ASA, along with the National Grain and Feed Association, other producer groups, processors, and input suppliers, alerted the Congressional Appropriations Committees about the urgent need for additional resources to dredge and repair inland waterways that have been damaged by historic high water levels. Agricultural producers, processors and exporters rely on the entire Mississippi River system and share concern about the impact recent floods in the Midwest will have on the river system. ASA is taking this message to the Administration and asking that it submit the necessary emergency funding request to Congress. More than 60 percent of U.S. soybean exports moved to world markets through the Port of South Louisiana via the Mississippi River and its tributaries. ASA Testifies on the Effectiveness of Ag Export Promotion Programs ASA testified before the House Agriculture Subcommittee which was reviewing export promotion programs and their effectiveness in expanding exports of U.S. agricultural products. Soybeans and soybean products are our country's number one export commodity. Last year, the United States exported a record-setting $23 billion in soybeans, soybean oil and soybean meal. This impressive export growth could not have been achieved without the unique government-industry partnership that characterizes the Foreign Market Development (FMD) "Cooperator" Program and the Market Access Program administered by the U.S. Department of Agriculture's Foreign Agricultural Service (FAS). These programs have been tremendously successful and extremely cost-effective in helping expand U.S. exports of soybeans and other agricultural commodities. According to a recent comprehensive study conducted by Global Insight for FAS, the multi-year impact of the increase in market development expenditures by both industry and government is equal to $35 in agricultural export gains for each dollar spent. |