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NC forms compromise on ethanolBy Larry Dreiling Crop and livestock producers, who have found issues of the import tariffs and federal blenders credits favoring ethanol producers to be sources of contention between them, found common ground during the recent annual convention of the Nebraska Cattlemen, held at Kearney. Discussions on a resolution, stating that government ethanol mandates and subsidies have put beef producers at a competitive disadvantage in purchasing corn, were held during a session of NC's Taxation Committee. Following the session, several persons including past NC presidents Dave Burkholder and Jay Wolf, NC cow-calf council members Duane Kristensen, who is also the manager of the Chief ethanol plant at Hastings, and Jim Jenkins, chairman of the Nebraska Ethanol Board (NEB), worked together to craft a new resolution on the topic. Joining in the discussions were two NC associate members--Todd Sneller, NEB administrator and Don Hutchens, executive director of the Nebraska Corn Board. True air of understanding A new resolution was brought forward at the annual business meeting in what all said was the true air of understanding and compromise. The new resolution reads as follows: Whereas: NC supports the domestic ethanol industry based on its importance to our nation's security, energy policy, agricultural industries, and rural communities, and Whereas: NC believes competitive markets are the most efficient way to allocate resources between the livestock industry, ethanol industry, export markets and other corn users, and Whereas, the current import tariffs and blenders credits, which helped develop the ethanol industry and served to protect it from unfair foreign competition, are scheduled to sunset in December 2009 and December 2010, respectively. Therefore, NC seeks transition of the ethanol blenders credit and import tariffs to a counter cyclical payment system that will serve as a safety net in times of severe economic challenges to the ethanol industry. In addition, NC is opposed to any additional increases to existing federal or state mandates for ethanol usage. Further, NC opposes government incentives including subsidies for cellulosic ethanol production from corn ethanol co-products. Some wordsmithing "The original motion that came out of the taxation committee was in need of some wordsmithing," Wolf said. "We tried to convey this a little more concisely and clearly. Our plan is structured to look more like the existing farm program, with the counter cyclical payments farmers are used to seeing," Wolf said. "When this was first brought up, my initial impression was that somewhere along the way we had been hijacked from the work that had been put forth over the last two years," Dave McCracken, NC taxation committee chair, said. "Jay has been the brunt of most of the blows and the grief from the association's resolution that we have in place. If you read the news, particularly what (Nebraska Democrat) Sen. Ben Nelson has had in print, the Nebraska Cattlemen has not been viewed in a very good light when it comes to the ethanol policy of this country. The intention of this resolution is to be a little more definitive about our concerns and our opposition to the subsidization of the ethanol industry." Reaching out For his part, Jenkins told his fellow NC members how grateful he was for the compromise effort. "Dave and Jay have really worked hard to reach out," Jenkins said. "I think Nebraska Cattlemen are highly respected and looked at for ethanol issues because Nebraska is the number two ethanol producing state. We produce 1.3 billions gallons annually. We are a net energy exporter. It has a huge impact to the net benefit of our state's economy. "I understand the issues of ethanol driving up corn prices, but I don't want to get into that now. I'm here, though, to say that while I'm not 100 percent in favor, and who is on this stuff, I will leave this meeting and convey to my colleagues and associates in the ethanol industry that the Nebraska Cattlemen has taken a significant step forward to try to position their support of the ethanol industry in a more positive way." NC's new president, Todd Schroeder, said there will be lots for the organization to monitor in the coming months. "We have a new administration in Washington. We have 16 new senators in Lincoln we have to deal with. We will continue to have environmental battles. We have a mountain of work to do, particularly with people who don't have a lot to do with our business but want to tell us how to do our business," said Schroeder, a Wisner producer. More resolutions In other resolutions, NC: -Supports the Beef Quality Assurance Feedyard Assessment created by the National Cattlemen's Beef Association. In addition, NC will work to incorporate the BQA Feedyard Assessment into the Nebraska Beef Quality Assurance Program. -Seeks the removal of 650 to 699-pound steer cattle from the calculation of the Chicago Mercantile Exchange Feeder Cattle Index. In addition, NC supports the inclusion of 850 to 899-pound steer cattle in the calculation of the CME Feeder Cattle index. -Wants the opening of international beef markets utilizing policy that allows bone-in beef product from cattle under 30 months of age as part of a stair-step effort to eventually full World Trade Organization compliance. In addition, NC called for the immediate adoption of this policy with all interested global trading partners. -Supports efforts to lower health insurance costs through state and local cost-share programs, de-coupling teachers' health insurance from local negotiated agreements, moving teachers' health insurance programs to the state employee health insurance pool or other efforts resulting in both cost-savings on premiums and local property tax relief. -Said it will work with law makers and regulatory agencies to ensure animal agriculture is recognized as part of the solution to problems associated with greenhouse gas emissions. -Seeks a balanced approach between basic and applied research at University of Nebraska-Lincoln. Also, NC believes the State of Nebraska will continue to need a UNL Veterinary Diagnostic Center and supports the study of the future viability and funding of the Center. Larry Dreiling can be reached by phone at 785-628-1117 or by e-mail at ldreiling@aol.com. 12/29/08 Date: 12/23/08
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