The Farm Bill

by U.S. Senator Chuck Grassley

Unlike the drought-stricken row crops which fell victim to a merciless season of cloudless skies, high temperatures and scorched earth, a bumper-sized crop of crowds turned out across the state this year to share views on matters of public policy, including the economy, energy, health care, transportations, debt, taxes, immigration and agriculture.  In August, I finished my 32^nd consecutive year of holding meetings in each of Iowa's 99 counties.  I'm glad to report Iowans continue to uphold a strong tradition of civic engagement from one generation to the next.

Not surprisingly, the fall-out from the harshest drought in five decades yielded many questions about the stalled passage of the farm and food bill.  Back in July, I argued on the floor of the Senate that it's time to move forward.  Over the years, I've worked to champion rural America, including ongoing efforts to create a level playing field for independent producers and small to mid-sized family farmers.  My efforts to secure a cap on commodity payments provide a defensible approach to farm spending in an era of exploding budget deficits.  Forging regional and bipartisan alliances, I've kept the interests of our nation's family farmers at heart during debate of the last seven farm bills.  Many people may not realize that nutrition assistance programs account for 75 percent of farm bill spending.  Although I haven't always voted "yes" on each farm bill, I use my committee assignments to make sure rural America has a voice at the table when Washington makes regulatory, tax, spending, bankruptcy and energy policy.

This year's historic drought underscores the crucial reasons why America needs a safety net for food producers.  Farmers need affordable risk management tools that will help provide income stability during times of marketplace uncertainty and natural catastrophes.  Stitching together a safety net that helps farm families make it through circumstances out of their control also helps ensure food security and helps protect jobs all along the economic chain in rural America.

Since the Great Depression, the federal government has recognized the humanitarian, economic and national security interests of keeping America's farming operations afloat. Maintaining stability, safety and certainty in the U.S. food supply is non-negotiable to America's prosperity and the public good.

As I made my way across the state this summer from one county meeting to the next, the dried up corn stalks were a harsh reminder of the historic drought squeezing the Corn Belt.  There's no doubt the drought has taken a toll.  Some producers across the country sold off livestock and dairy herds when grazing lands dried up and they had difficulty finding enough hay.  Some farmers have diverted withering corn acres into chopped silage before the harvest season even begins.  The USDA estimates the corn harvest may reach its lowest average yield since 1995, at 123.4 bushels/acre.

Every spring, farmers take a leap of faith by sowing new seeds into the soil. If a natural disaster destroys the crop, a farmer could lose more than his livelihood without adequate risk management tools in place.  U.S. farm policy needs to put faith in America's farmers and ranchers who have answered the call to provide the safest, most affordable food and fiber in the world.

The current farm bill expires Sept. 30.  As Iowa's senior U.S. Senator, I will continue my call to move forward.  The worst drought to hit the Corn Belt in 56 years ought to be a wake-up call.  For 80 years, the U.S. has sought to protect U.S. food security with a safety net that helps the nation's food producers fill America's breadbasket.  Washington needs to get the job done.

Orascom Construction Industries (OCI) announced today that its wholly owned subsidiary Iowa Fertilizer Company (IFCo) will build a new greenfield nitrogen fertilizer production plant in southeast Iowa to supply customers in the U.S. corn belt.  The new plant will be located in Wever, within Lee County near the Mississippi River.  Iowa is the top corn producing state in the United States and has the highest use of nitrogen-based fertilizer in the nation. IFCo's new plant will be the first world scale natural gas-based fertilizer plant built in the United States in nearly 25 years and will help reduce the country's dependence on imported fertilizers which exceeds 15 million metric tons of ammonia, urea, and urea ammonium nitrate (UAN) annually.

IFCo's new plant will utilize proven state-of-the-art production process technologies from world leaders. Kellogg Brown & Root LLC (KBR), Maire Tecnimont Stamicarbon (Tecnimont), and ThyssenKrupp Uhde (Uhde) have been selected to supply the process technologies for the plant which will produce between 1.5 - 2 million metric tons per year of ammonia, urea, urea ammonium nitrate (UAN) as well as diesel exhaust fluid (DEF), an environmentally-friendly fluid used to reduce emissions in diesel engines. Construction work on the plant is scheduled to begin later this year and will be completed by mid 2015.

The total investment cost is estimated to be US$ 1.4 billion and will be fundedwith a combination of equity and a tax-exempt bond issuance. The Iowa Finance Authority (IFA) has authorized IFCo to access bonding capacity under its private activity tax-exempt Midwestern Disaster Area bond program.  In addition, the Iowa Economic Development Authority (IEDA) board unanimously approved a comprehensive state financial incentive package expected to provide state tax relief in the order of US$ 100 million.  The Iowa Department of Transportation (IDOT) board will also consider financial assistance for project-related public infrastructure improvements.

The state of Iowa Governor, Terry Branstad, commented "I am pleased to welcome OCI to Iowa.  Their project is the largest investment ever made in our state.  The Iowa Fertilizer Company will bring high-paying permanent jobs to Lee County and will create approximately 2,500 construction jobs over the next three years. We believe this major capital investment will help invigorate economic development in an area of the state which has previously experienced significant challenges. We look forward to working closely with OCI and itsmanagement to ensure the successful completion of their project."

OCI Chief Executive Officer, Nassef Sawiris, commented "OCI is pleased to have selected the state of Iowa for its North American expansion and is looking forward to helping bring permanent jobs and significant economic activity to Lee County and the state.  Iowa Fertilizer Company is well-positioned to supply nitrogen-based fertilizer products to farmers in the corn belt and help reduce their substantial reliance on annual imports of fertilizer into the country. We intend to expand our presence in the United States and most recently agreed to acquire the Weitz Company, an Iowa-based construction company, which will play a major role in the construction of our new fertilizer plant."

About Orascom Construction Industries

OCI is one of Egypt's largest corporations employing more than 72,000 people in 35 countries around the globe.  The OCI Fertilizer Group owns and operates nitrogenfertilizer plants in Egypt, the Netherlands, the United States, and Algeria and has an international distribution platform spanning from the Americas to Asia.  The OCI Fertilizer Group ranks among the world's top fertilizer producers with a production capacity which will exceed 7.0 million metric tons in 2012.  The OCI Construction Group provides international engineering and construction services primarily on infrastructure, industrial and high-end commercial projects in Europe, the Middle East and North Africa for public and privateclients.  The OCI Construction Group ranks among the world's top global contractors.

ST. LOUIS (August 31, 2012) - The United Soybean Board (USB) continues to drive demand for U.S. soy, thanks to a partnership with Goodyear Tire & Rubber Co. Goodyear recently announced field tests for a new tire featuring U.S. soy that the company says may offer consumers increased tread life and a greener alternative to those manufactured solely with petrochemicals.

Goodyear's announcement marked the public unveiling of a two-year, ongoing collaboration between the soy checkoff and the Akron, Ohio-based company.

"The soy checkoff welcomes the opportunity to partner with Goodyear in bringing this tire to the market," says Russ Carpenter, a soybean farmer from Trumansburg, N.Y. and chair of the USB New Uses program. "The checkoff constantly looks for ways to improve the value of soy oil to U.S. soybean farmers and this new tire highlights soy's versatility in the marketplace."

The partnership began two years ago, after the 2008 spike in crude oil prices prompted Goodyear to evaluate petrochemical alternatives and propose research exploring soy oil's potential in its products. In full production, Goodyear estimates that it could use 7 million gallons of soy oil annually.

Goodyear's testing found that using soy not only lowered petrochemical amounts from the tire's manufacturing process, but also increased its efficiency by reducing energy and greenhouse gas emissions. Additionally, soy oil's increased performance may yield up to 10 percent longer tread life.

"Goodyear is committed to caring for the environment and communities, and use of soy oil proves to be another way to accomplish this goal," said Jean-Claude Kihn, Goodyear's chief technical officer.  "Consumers benefit through improved tread life, Goodyear gains with increased efficiency and energy savings and we all win whenever there is a positive impact on the environment."

If real-world testing runs smoothly, Goodyear expects the new soy-based tires to be available for purchase as early as 2015.

The 69 farmer-directors of USB oversee the investments of the soy checkoff to maximize profit opportunities for all U.S. soybean farmers. These volunteers invest and leverage checkoff funds to increase the value of U.S. soy meal and oil, to ensure U.S. soybean farmers and their customers have the freedom and infrastructure to operate, and to meet the needs of U.S. soy's customers. As stipulated in the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff.

Goodyear is one of the world's largest tire companies. It employs approximately 72,000 people and manufactures its products in 53 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate.


For more information on the United Soybean Board, visit www.unitedsoybean.org
For specific information on soy's new uses, visit www.soynewuses.org
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