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Corn growers tell Congress: Fund WRDA, augment EBTC

By TIM ALEXANDER
Illinois Correspondent

BLOOMINGTON, Ill. — Over two dozen farmer-leaders from the Illinois Corn Growers Assoc. (ICGA), along with representatives from the United Brotherhood of Carpenters and Joiners, visited with elected officials and members of federal agencies in Washington, D.C., during the week of March 22.

Newly elected ICGA president Tim Lenz, a corn grower from Strasburg, said he was encouraged by the reception the corn growers received from leaders in Washington. Lenz added that he appreciated the chance to address policymakers and government officials regarding the ICGA’s support of funding for lock and dam upgrades and an extension of the ethanol blender’s tax credit (EBTC), among other issues.

“When the Water Resources Development Act (WRDA) was authorized, we knew we weren’t home free. But now, getting funds appropriated for the project is getting frustrating,” said Lenz, referring to the 2008 passing of the major inland waterways transportation system overhaul, which includes the construction of new, wider locks on the Illinois and upper Mississippi rivers along with a substantial ecosystem restoration provision. “We wanted to make a last push on that issue, because the (Obama)
administration keeps talking about jobs, jobs, jobs. There is no better infrastructure project to provide jobs and future efficiencies in our manufacturing sector than (WRDA).”

Members of the carpenter’s union accompanied several breakout groups of corn growers to Capitol Hill to inform lawmakers that tens of thousands of jobs and millions of man-hours of labor would be created for the carpenters and other skilled tradesmen once funds are appropriated for WRDA by the General Assembly. “For the carpenters, WRDA means jobs,” said Lenz.

Other ICGA breakout groups visited with government officials from the Department of Energy (DOE), Environmental Protection Agency (EPA) and USDA.

Mirroring the recently announced legislative priorities of the Renwable Fuels Association, the ICGA detailed its support for removing the ethanol blend wall, encouraging the EPA to reconsider its calculation on indirect land use and extending the EBTC, which was reduced to .45 cents per gallon on Jan. 1 and is set to expire on Dec. 31.

Regarding the indirect land use charge, Lenz said the ICGA provided the EPA with updated data “on the effectiveness that we are gaining in producing corn with less fertilizer and the effeciencies the actual ethanol plant is gaining. We will continue to provide EPA with the latest data.”

The Illinois corn growers met directly with one of their own legislators, Sen. Richard Durbin (D), to talk about his support for extending the EBTC.

Durbin was receptive to the idea, said Lenz, but the Illinois lawmaker warned that the extension may not be of the multi-year variety that corn growers and ethanol producers are seeking. “We stressed that a year extension does not give the industry enough confidence to raise capital and spur investment, as opposed to a five-year extension,” said Lenz.

Another topic of importance to the ICGA which they addressed with the EPA and DOE is the potential classification of corn kernel material as a source for cellulosic ethanol. Such a classification, said Lenz, would help the EPA meet their future mandated goals for cellulosic ethanol production.

“We wanted to make sure this was on their radar screen. The outside fiber of a corn kernel, when it goes through the ethanol plant, is currently used for animal feed. That (substance) is actually cellulosic,” said Lenz. “Before anyone invests in this, we have to make sure this will be classified as a cellulosic ethanol source and not be thrown in with ethanol from the starch of corn, which will be limited at 15 billion gallons. The EPA seemed receptive to cellulosic corn; we wanted to make sure there would not be a bias against it and that it will be classified as cellulosic.”

The contingent, which was also comprised of ICGA board members, past ICGA leaders and representatives from various Illinois county corn growers’ groups, visited several foreign embassies and trade offices to discuss foreign trade issues before returning to Illinois.

4/7/2010