2005 Year in Review

Weekly update for August 1, 2005

Busy (and Successful) Week in Washington - Last week ended with a bang as soybean farmers claimed victory after victory in our nation’s capital. As legislators readied for the summer recess, the Energy Bill, WRDA and CAFTA legislation all passed. The Energy Bill passed by a wide margin of 275 to 156, with several provisions to promote biodiesel’s growth, including the extension of a federal excise tax credit through 2008. The excise tax credits amounts to a one cent tax reduction per percentage of “agri’-biodiesel blended into petroleum diesel. The reduction is only one half cent for biodiesel from other sources, making soybean oil more attractive as a raw material. Also included in the Energy Bill is a provision to expand daylight savings time by one month, adding three weeks in the spring and a week in the fall. That changes goes into effect in 2007.

The House also passed the Central American Free Trade Agreement (CAFTA-DR) last week by a narrow margin (217-215). The trade agreement solidifies the U.S. as a preferred supplier of soybeans and soy products to El Salvador, Nicaragua, Guatemala, Honduras, Costa Rica and the Dominican Republic. It also opens up doors for U.S. pork, chicken and other meats that are big consumers of soybean meal. If CAFTA had failed to pass the house, Central American countries would have turned to South America for their soy. Last year, Central American countries imported approximately $264 million worth of U.S. soybeans.

The Water Resources Development Act (WRDA), although not considered in the Senate before the summer recess, passed by a resounding 406-14 vote in the House a couple of weeks ago. The Act provides funding for improvement of locks on the Mississippi and Illinois Rivers.

New Illinois Law Mandates Biodiesel Use - Governor Blagojevich signed into law a new bill last week that requires state government, county and local governments, school districts, universities and community colleges and mass transit agencies to fuel their diesel vehicles with two percent biodiesel. The law goes into effect in July 2006. The law will create demand for bulk delivery of biodiesel and likely will encourage more retail outlets for the fuel. Currently, there are 48 retail pumps for biodiesel in Illinois. A complete list will be posted on the Illinois Soybean Association web site later this week.

SoySelect Demonstration CD Available - For those farmers wanting to enter into specialty growing contracts, the Illinois Soybean Association (ISA) has introduced a new production-tracking tool. SoySelect provides a way for producers to record production data that is essential for participating in specialty grain contracts. A demonstration CD gives a snapshot of the type and extent of records needed. Call the ISA office at 888-826-4011 to request a copy of the CD.

Highway Space Still Available - Farmers still have time to reserve a set of signs for placement along Illinois’ interstate highways. The new promotion is designed to bring attention to biodiesel and to appeal to truckers and consumers to try the renewable fuel. Farmers whose land borders interstate highways in Illinois can volunteer their fields for placement of the signs by contacting the Illinois Soybean Association at (888) 826-4011.

“New” Illinois Soybean Association Elects Leadership - On July 30, the boards of directors for the Illinois Soybean Checkoff Board and Illinois Soybean Association were combined into a single entity and adopted the official name of Illinois Soybean Association (ISA). The revitalized organization also elected its new leadership over the weekend at a meeting in Alton. Stephen J. Scates of Shawneetown elected to serve as Chairman. George Dixon of Colchester was elected as ISA’s Vice-Chairman. Serving as Secretary for the coming year will be Pete Pistorius of Blue Mound. Ken Dalenbeg of Mansfield will serve as Treasurer. Phil Bradshaw of Griggsville was elected as Assistant Secretary Treasurer. The board will be expanded to 24 members in January 2006 when six directors-at-large will be elected.

by  Editor, theCity1.com
August 8, 2005