CEO Report To The Board & States July 2006

The 2006 U.S. soybean crop is off to a good start with planting and emergence well ahead of the five-year average. So far, all indications point to another year when soybean rust will not be a deterrent to yields and profitability. While most farmers were in their fields this spring, American Soybean Association staff has been assisting farmer-leaders as they developed an updated Strategic Plan, advanced critical farm and energy legislation, and safeguarded U.S. trade interests. 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 2005  ASA Expresses Concerns about Farm Program Cuts, Biodiesel and Soybean Research Following ASA’s March Board of Directors meetings, soybean growers took their concerns to Congressional offices in Washington, D.C. Priority issues included proposed five percent cuts to farm programs, research programs for soybean rust and aquaculture, as well as an extension to the biodiesel tax incentive and funding for the Commodity Credit Corporation Biodiesel Program at the U.S. Department of Agriculture. ASA asked Congress not to approve the Administration’s proposal to cut farm programs by five percent in the FY-2007 Budget Resolution, or to reduce payment limitations. ASA also asked Congress to support soybean research that is so important to the long-term progress of the soybean industry.  ASA Urges President Bush to Safeguard Interests of U.S. Producers in WTO Negotiations ASA led a coalition of farm and commodity groups sending a strong message to the President, as well as to other countries, that reductions in domestic support for U.S. agriculture are only acceptable if the negotiations yield an important net gain for American farmers and ranchers through commitments on market access and other trade-distorting policies by our trading partners. At this point in the negotiations, however, it seems clear that other countries have "pocketed" the U.S. offer on domestic support without being prepared to even come close to the U.S. proposal on increasing market access in both developed and developing countries. Moreover, these countries are pushing U.S. negotiators to make even greater concessions in domestic support. Under these circumstances, ASA believes that it is important to make clear that American agriculture will not support any deeper cuts in domestic support than those already proposed by the administration. The need to achieve significant increases in market access in developing country markets is especially important because these countries, which account for 81 percent of the world’s population, represent the markets of the future.  ASA Hosts Biodiesel Media Teleconference to Announce Its Legislative Priorities With high petroleum prices prompting Congress to consider another energy bill, ASA held a national media teleconference on May 10, to outline ASA’s biodiesel legislative priorities for Congress to consider. Specifically, ASA is asking Congress to include in any energy package legislation: 1. Extending the volumetric biodiesel tax incentive; 2. Extending small agri-biodiesel producer credit; and 3. Authoring and funding a CCC Biodiesel program. By taking these actions, ASA estimates on-road diesel supplies could be increased by as much as 2 percent by 2015. Boosting available fuel supplies will have a positive impact on fuel prices to consumers. ASA and Chinese Officials Sign Agreement in Washington D.C. ASA signed an agreement in Washington, D.C., that promotes long-term trade and cooperation with China. During a Capitol Hill trade conference, ASA signed the memorandum of understanding with the Chinese Soybean Chamber of Commerce, whose members attending the signing ceremony were responsible for 67 percent of all the soybeans imported into China last year. The three-year agreement renews a 2003 agreement. It includes measures to increase trade and cooperation, such as the exchange of information on topics ranging from soybean use to solutions to trade issues.  ASA Urges China to Accept Greater Access for Agricultural Imports ASA stressed the importance of opening the China market to further agricultural imports in the current Doha round of World Trade Organization trade negotiations during a Senate Finance Committee hearing on U.S.–China Economic Relations. Preliminary analysis indicates that China will account for between 35 and 40 percent of total world agricultural trade gains from a new WTO agreement. Unless China is a full participant in the market access negotiations, it is doubtful there can be enough expansion in trade to justify the concessions the United States has offered on reducing trade-distorting domestic support.  ASA Outlines Potential of Offshore Aquaculture for Senate Committee On April 6, ASA outlined for the U.S. Senate Committee on Commerce, Science and Transportation the tremendous potential and benefits that offshore aquaculture could bring to U.S. soybean farmers and seafood consumers. ASA is supporting legislation to establish a regulatory framework for commercial offshore aquaculture in the United States. Since 1990, the aquaculture industry has been growing at an average compound rate of around 10 percent a year, making it one of the world's fastest growing forms of food production. Soybean farmers have identified offshore aquaculture as a significant new market for U.S. soybeans as many studies project a significant increase in global farmed-fish production over the next 15 years and the unsustainability of wild fish harvests to supply the needed fishmeal.  ASA’s Capitol Hill Luncheon Features Wide-Array of Nutritious Soyfoods Members of Congress and their staffs got a taste of why soyfoods are playing an increasing role in healthy diets at ASA’s fourth annual Congressional Soyfoods Lunch on Capitol Hill. By hosting the annual Congressional Soyfoods Lunch on Capitol Hill, ASA helps to increase awareness among policymakers and other government officials of soyfoods and their benefits.  Eight Companies Join AgriBusiness Council As of July 5, BASF, Bayer CropScience, CTB, Inc., John Deere, Monsanto, Syngenta, West Central Cooperative and Pioneer Hi-Bred International, Inc., a subsidiary of DuPont, have each agreed to join ASA’s newly-formed AgriBusiness Council. As AgriBusiness Council members, these firms will help strengthen the ASA policy-making process. Established earlier this year by the ASA Board of Directors, the AgriBusiness Council's goal is to develop a common industry agenda on issues of importance to both soybean farmers and businesses. It is imperative that the soybean industry be on the same page when addressing issues like biodiesel, farm bill, trade and transportation. ASA welcomes these supporters to the AgriBusiness Council and looks forward to their contributions.