Legislative Update: DC fly-in focuses on relief, trade and ethanol with legislators
(MCGA directors met with Rep. Peterson, who also chairs the House Ag Committee)
By Amanda Bilek, senior public policy director for the Minnesota Corn Growers Association
Although COVID-19 has changed many day-to-day operations and face-to-face meetings are limited, it is still vitally important that Minnesota Corn Growers Association (MCGA) leaders engage with elected officials to advocate on policy issues that are important to our members. MCGA leaders had the opportunity to do just that last week during our first virtual D.C. fly-in to discuss federal policy issues with elected officials and key agencies.
MCGA leaders were fortunate enough to meet with Senators Klobuchar and Smith, Representatives Peterson, Hagedorn, Craig, Emmer, Stauber and staff from the offices of Representatives Phillips and McCollum, in addition to Senator John Hoeven and Representative Mike Conaway.
On the agency side, MCGA was able to meet with Farm Service Agency Administrator Richard Fordyce and his key staff, as well as Risk Management Agency Administrator Martin Barbe and his key staff. Thank you to all the elected and agency officials who took time to meet with MCGA.
MCGA takes advocacy efforts virtual
Given the current financial challenges in agriculture, decreased markets for corn and headwinds in the expansion of ethanol, MCGA’s advocacy efforts are needed now more than ever. Although we were not able to travel out to D.C. this year for Corn Congress, which was held virtually, MCGA leaders were still able to engage with members of Minnesota’s Congressional delegation and key federal agencies through a series of virtual visits.
The timing of the virtual visits was excellent since Congress had returned to Washington last week to begin a series of negations on the fourth round of a COVID-19 aid and relief bill.
The top issue farmer leaders emphasized during the visits was the state of the agriculture economy and the current situation for corn farmers. U.S. agriculture is in its seventh straight year of recession, which has been compounded by unjustified retaliatory tariffs and now COVID-19 impacts.
Recent analysis by the National Corn Growers Association projects that per acre average revenue for the 2019 corn crop declined by $59 from March through early June due to COVID-19. The same analysis indicates that average revenue per acre for the 2020 corn crop is expected to decline by $89 when compared to pre-COVID-19 revenue estimates. If conditions hold, this would mark the lowest income corn farmers have received since 2006.
These current economic conditions were a key point for visits with leaders from the USDA Farm Service Agency and Risk Management Agency.
To help provide assistance for corn farmers, MCGA leaders urged Congressional members to include COVID-19 relief, including for the 2020 crop, for biofuel producers, and for processors whose harvest or processing is disrupted by COVID-19. MCGA also advocated for Congress to fully replenish the Commodity Credit Corporation so USDA has the resources to carry out Farm Bill programs and provide emergency relief.
Markets for corn a key issue during virtual visits
To underscore the financial difficulty corn farmers are currently facing, MCGA leaders stressed the importance of markets for corn in two key areas: trade and ethanol.
On the trade front, exports account for more than one-third of a U.S. corn farmer’s income, with 20 percent of corn or corn products exported annually. More than one-quarter of U.S. corn exports are bound for Canada and Mexico. The virtual visits gave MCGA farmer leaders the opportunity to thank members of Minnesota’s Congressional delegation for their support of the passage of the United States Mexico Candidate Agreement, a top federal policy priority for MCGA in 2019.
Although MCGA commended the Administration for agreements with South Korea and Japan, leaders also urged additional negotiations of new bilateral trade agreements in order to achieve greater U.S. market access for corn and corn products.
MCGA also commended the administration for achieving a Phase one agreement with China, but urged congressional members and the Administration to work together to ensure that China fully meets its annual purchase agreements.
Finally, on the market front ethanol was a focus item for virtual visits. Many members of Minnesota’s Congressional delegation are strong supporters of renewable fuels, including ethanol, because it remains the world’s most cost-effective octane agent, helping to meet Clean Air Act air quality standards. Ethanol also lowers prices for consumers at the pump while creating economic opportunity and jobs in rural Minnesota. The Administration’s approval to allow year-round E15 sales was to be celebrated, but the market for ethanol has been severely eroded by EPA’s abuse of small refinery exemptions, which has cut 4 billion gallons of ethanol use under the RFS.
A recent U.S. Court of Appeals for the 10th Circuit decision has demonstrated that the EPA overstepped its authority in granting small refinery exemptions. MCGA urged Congress to hold the EPA accountable to ensure the agency does not continue to abuse the small refinery exemption while also making certain the agency meets the Administration’s RFS volume commitments.
The virtual visits provided an opportunity for MCGA leaders to discuss these key issues for the state’s corn farmers directly, and although the in-person interaction was missed, the importance of the message was still delivered to policy makers. MCGA adapted our advocacy efforts in order to meet the needs of our members. These types of virtual visits are another tool in our advocacy toolbox and will likely continue to be used in the future.
Linder Farm Network spoke with myself and MCGA President Les Anderson last week about the virtual visits:
Be sure to follow the MCGA blog and its social channels (Facebook, Twitter) for updates. You can also follow me on Twitter (@AjBilek).
