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USGC and Iowa Corn Leaders Connect. U.S. Grains Council President and CEO Thomas C. Dorr and newly-named Senior Vice President of Operations and Industry Relations Keith Heffernan traveled to Iowa this week to attend the Board of Directors meeting of Council members Iowa Corn Promotion Board (ICPB) and Iowa Corn Growers Association (ICGA). “We have to significantly enhance our expectations of where new opportunities come. We need to expand and exploit U.S. corn and begin capitalizing on those opportunities in which we can begin to differentiate ourselves in the marketplace,” said Dorr. “In my 30 years of involvement with the Iowa Corn Growers and National Corn Growers, I can honestly say they have effectively been very strong leaders in this whole area of policy as it revolves around market development.” The Council shares a long history of partnership with Iowa Corn as it helped to establish its checkoff in 1977. ICPB has been a member of the Council since 1979 and ICGA since 2002. Dorr discussed with the Boards the many challenges and opportunities that exist in 2010 for U.S. corn as worldwide production continues to increase.

U.S. Grains Council Names Keith Heffernan Senior Vice President. Keith H. Heffernan will serve as senior vice president of operations and industry relations of the Washington, D.C., based U.S. Grains Council. Heffernan was formerly the chief of staff for the Farm Credit Administration. He accepted the charge to assist in leading the country’s largest export market development organization for barley, corn, sorghum and their co-products. USGC President and CEO Thomas C. Dorr said Heffernan’s experience working in producer-run organizations is invaluable. “Keith has a long history of service to U.S. producers through trade organizations. He understands the challenges and offers creative solutions,” said Dorr. “The members of the Council will have a leader that truly values producer and agribusiness involvement.” As chief of staff for Farm Credit Administration, Heffernan coordinated the development and implementation of the agency’s strategic operating and budget plans and activities. Heffernan was the first executive director for the Iowa Corn Growers Association; director of public affairs for the Iowa Farm Bureau Federation; assistant director for the Center of Agricultural and Rural Development at Iowa State University; and chief of staff for USDA’s Rural Development.

Five Minutes with Rick Fruth, U.S. Grains Council Chairman

What are the goals of the U.S. Grains Council in 2010?
The immediate goals for the Council basically fall into three main areas:
1. To focus on member relations;
2. To begin a strategic planning process; and
3. As always, to deliver value to U.S. farm checkoff and other member investments in the Council by developing global demand for corn, sorghum, barley and their co-products.

How does the Council plan to achieve those goals?
Member relations and strategic planning are the priority activities the Board of Directors have directed Thomas Dorr, president and CEO, and Keith Heffernan, vice president of operations and industry relations, to address. Tom and Keith are deeply rooted in production agriculture. They are seasoned leaders and managers and we have high expectations of them.

Why is market development important for U.S. farmers, rural America and people around the globe?
U.S. farmers produce record crops almost as the rule rather than the exception. Various parts of the world, for example the Black Sea region, have the potential to increase production dramatically in the not too distant future. Market development both domestically and globally is the key to a healthy and prosperous agriculture sector.

Exports from the United States to countries outside Western Europe and the former USSR have grown dramatically over the last 30+ years. During that time, coarse grain shipments to that part of the world from the United States have grown from about 15 million metric tons to over 60 million tons. Even so, with continued global population and income growth those numbers must increase. Addressing the capacity, trade barriers and other obstacles to that growth is a critical element in providing food and fiber to an increasingly demanding world.

How will the meeting in February help set the direction for the future of Council programs?
As you know, the 7th International Marketing Conference and 50th Annual Membership Meeting is a very important meeting for the Council as it is where the Unified Export Strategy, or UES, is created. The UES serves as the Council’s marketing plan blueprint and is submitted to USDA to secure the Council’s federal matching funds. This meeting is critical because it allows our members to play a direct role in helping create the UES. Through participation in the Advisory Team meetings and the general sessions, attendees will help shape the direction of the Council in the coming years.

Morocco Tariff Cuts Create Opportunity for US Corn. The U.S., Morocco Free Trade Agreement (FTA), signed in June 2004, has provided the United States a significant market advantage with its recent tariff reduction of U.S. corn. As of June 1, 2009, the government reinstated tariffs on corn imports with U.S. origin a 7 percent tariff and a 17 percent tariff for other origins. Chris Corry, USGC senior director of international operations, said, “As of Jan. 1, 2010, the Moroccan government has reduced the tariff for corn of U.S. origin by half, to 3.5 percent, while import tariffs for other origins were reduced from 17 percent to 10 percent, providing the United States a significant market advantage.” According to U.S. Grains Council Consultant Dr. Abdellah Ait Boulahsen, “Since Aug. 1, 2009, the United States has been virtually the only supplier of corn to Morocco, with a total of 705,200 metric tons (27.7 million bushels) exported through December 2009.” With the tariff reduction on the horizon, the Council had been working in the region at great lengths to build a market for the U.S. feed ingredient, offering educational opportunities to local buyers and other end-users. “It is anticipated that sales of U.S. corn will remain robust in Morocco with the reduced tariff on U.S. corn, as agreed upon in the FTA,” said Chip Councell, USGC Trade Policy Advisory Team leader. As the Moroccan market continues to grow, the Council will continue programming in the region to assist end-users in tackling the issues impeding the growth of the feed industry and livestock sector, a benefit to both U.S. producers and the global economy.

Ohio Farm Couple Featured on National Television. “America’s Heartland,” a television program dedicated to connecting rural and urban America, traveled overseas along with the U.S. Grains Council and U.S. Wheat Associates to understand the vital role U.S. farmers play in feeding the world. Dave and Sue Roehm, farmers from Leesburg, Ohio, traveled with the film crew in August to Egypt and Morocco where they saw the investments in their producer checkoff programs hard at work. With sponsorship from the Ohio Corn Marketing Program, Dave and Sue were able to show how global their fourth generation family farm really is. “This trip was a big revelation to me. It was phenomenal the impact export market development programs orchestrated by the Council and U.S. Wheat are having overseas,” said Sue. “When I look at our corn and wheat in Ohio, I will have a whole different perspective. My family’s harvest is truly improving lives thousands of miles away.” Being from Ohio, Dave and Sue did likely see their harvests in feedlots and bakeries across Morocco and Egypt. “With our farm’s location, a lot of our harvest goes to the East Coast or down the Ohio River to export markets,” said Dave. “I have been actively involved with the Council for a few years and was fully aware of the efforts my checkoff dollars were funding. However, it’s still amazing to see it up close, one-on-one. I realized that America is not only the land of freedom but the land of opportunity. The Council and U.S. Wheat are truly providing opportunities for U.S. farmers and global end-users that really didn’t exist before.” This episode (#518) of “America’s Heartland” aired on RFD-TV on Wednesday, Jan. 6, and will air again on Sunday, Jan. 10. The show also airs on various PBS stations throughout the country. Check your local listings for air times and dates. The program is also available online at http://bit.ly/4XfuQ1. 

Council Provides Market Information at Buyers Workshop. The U.S. Grains Council conducted a Regional Buyers Workshop in Jordan this week. The participants, importers from Jordan, Syria, Saudi Arabia and Iraq, were afforded the opportunity to meet with USGC Consultants Jay O’Neil and Tom Bright. The workshops, were intended to provide the most up-to-date market production, supply and demand information while answering importers’ questions about U.S. grains. “The workshop will strengthen the relationship between U.S. producers and the buyers in the region. Participants left with confidence in Council-provided information on U.S. grains as well as a better understanding of the market situation,” said Joe O’Brien, USGC regional director in the Middle East and Subcontinent. According to O’Neil, the participants were engaged in the presentations, asking many questions. “The buyers wanted to know if the United States has a sufficient supply of grains to meet their needs. We assured them we do and will. As with buyers everywhere, the discussions on price outlook and risk management were of keen concern and interest.” In addition to discussing current market conditions, the group had a lengthy discussion on grain quality and contracting terms and conditions. The Council is optimistic about grain trade in this region. “In providing end-users the knowledge on where to find regular, reliable market information and informing importers on what can be done to protect their interest in the contracts they write, this proved to be an important seminar for all involved,” said O’Neil.

USDA’s Weekly Export Sales Highlights for Dec. 25-31, 2009
Corn: Net sales of 364,700 metric tons (14.4 million bushels) were down 53 percent from the previous week and 67 percent from the prior four-week average. Increases were reported for Mexico (165,600 tons or 6.5 million bushels); Cuba (125,000 tons or 4.9 million bushels); South Korea (40,800 tons or 1.6 million bushels); Japan (39,300 tons or 1.5 million bushels); Venezuela (34,500 tons or 1.4 million bushels, including 34,000 tons or 1.3 million bushels switched from unknown destinations); Canada (21,100 tons or 831,000 bushels); and Ecuador (12,800 tons or 504,000 bushels, switched from unknown destinations). Decreases were reported for unknown destinations (95,700 tons or 3.8 million bushels) and Guatemala (14,200 tons or 559,000 bushels). Exports of 798,100 tons (31.4 million bushels) were down 8 percent from the previous week, but up 16 percent from the prior four-week average. The primary destinations were Japan (298,100 tons or 11.7 million bushels); South Korea (170,400 tons or 6.7 million bushels); Mexico (131,600 tons or 5.2 million bushels); the Dominican Republic (68,900 tons or 2.7 million bushels); Venezuela (34,500 tons or 1.4 million bushels); and Taiwan (22,500 tons or 886,000 bushels).

Barley: There were no sales reported during the week. Exports of 2,400 tons (110,000 bushels) were to Canada (2,300 tons or 106,000 bushels) and Mexico (100 tons or 46,000 bushels).

Sorghum: Net sales of 42,900 tons (1.7 million bushels) resulted as increases for Japan (46,300 tons or 1.8 million bushels, including 34,400 tons or 1.4 million bushels switched from unknown destinations and decreases of 1,100 tons or 43,000 bushels) and Mexico (31,100 tons or 1.2 million bushels), were partially offset by decreases for unknown destinations (34,400 tons or 1.4 million bushels). Exports of 139,200 tons (5.5 million bushels)--a marketing-year high--were up noticeably from the previous week and the prior four-week average. The destinations were Japan (75,700 tons or 3 million bushels) and Mexico (63,400 tons or 2.5 million bushels).

COUNCIL NEWS

New Members. Please join the Council in welcoming its four newest members, pending Board approval. The Hawkeye Gold LLC system has purchased individual memberships for each of their four ethanol production facilities. Randy Ives will serve as the delegate for all four of these new members. He can be reached at 515-663-6429 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

Hawkeye Renewables – Fairbanks is a 115 million-gallons-per-year plant that began operation in 2006 as the second ethanol production facility in the Hawkeye Renewables system. The facility consumes about 41 million bushels of corn annually and produces about 980 metric tons of DDGS per day.

Hawkeye Renewables – Iowa Falls is a 100 million-gallons-per-year ethanol plant that was expanded to its current capacity in 2006. The plant uses 36 million bushels of corn per year and produces about 860 tons of DDGS each day. The plant was the first plant in the Hawkeye Renewables system and was originally constructed as a 50 million-gallons-per-year plant. It began operations in November 2004.

Hawkeye Menlo LLC is a 115 million-gallons-per-year ethanol plant that was completed in September 2008. The plant uses 41 million bushels of corn per year and produces about 370,000 tons of DDGS each day. The plant was the third plant in the Hawkeye Renewables system.

Hawkeye Shell Rock LLC is a 115 million-gallons-per-year ethanol plant that was completed in October 2008. The plant uses 41 million bushels of corn per year and produces about 370,000 tons of DDGS each day. The plant was the fourth plant in the Hawkeye Renewables system.

Lynn Retires from the Council. C.M. Lynn, former USGC Taiwan country director, has fully retired from his duties at the Council effective Dec. 31, 2009, after serving 36 years as the country director and one year as the senior advisor. During his role as the senior advisor, Lynn assisted with high level trade servicing and continued to be the lead on barley promotion initiatives. While Lynn’s extraordinary talents will be missed, Clover Chang, USGC director in Taiwan, and the USGC/Taiwan staff are well-equipped to lead the Council’s continuing promotional and marketing efforts in Taiwan.

Forbes Names Monsanto its Company of 2009. Please join the Council in congratulating its member Monsanto Company for earning the designation as FORBES’ Company of the Year. Check out Forbes magazine online to read the full story. This article comes subsequent to a series of interviews and briefings with many current and former Monsanto employees and farmer customers earlier this month. The online story is largely positive, focusing a great deal on promising pipeline products like Omega 3, drought tolerant corn, and nitrogen efficiency. It also highlights the company’s positive earnings trajectory and its commitment to sustainable yield.

Register Now for the Council’s Upcoming Puerto Vallarta Meeting. Registration for the U.S. Grains Council’s 7th International Marketing Conference & 50th Annual Membership Meeting held Feb. 13-17, 2010, in Puerto Vallarta, Mexico, is now available on the Council’s Web site, www.grains.org. You can fill out a registration form by clicking on the “Upcoming Meetings” link on the right hand side of the homepage. You can also click here. The meeting brochure with agenda, optional tours and hotel information can also be found on the Web site. Meeting registration ends Jan. 15. Contact Valerie Smiley, USGC manager of membership, at 202-789-0789, with any questions.

Michener Leaves FAS Administrator Post. USDA’s Foreign Agricultural Service (FAS) Administrator Michael Michener announced he has been named USDA Secretary Tom Vilsack’s special representative at the U.S. Mission to the United Nations Agencies for Food and Agriculture, based in Rome. Michener stated that Food and Agriculture Organization, World Food Program and International Fund for Agricultural Development are playing an influential role in the adoption of new biotechnology advantages and the agricultural aspects of global climate change negotiations, as well as their traditional role in leading United Nations efforts in global food security initiatives. Associate FAS Administrator and USDA’s General Sales Manager John Brewer will serve as the Acting Administrator as of Jan. 1, 2010.

USGC Represented at Maryland Grain Producers Utilization Board Meeting. USGC Director of Membership Shannon Schaffer traveled to Maryland this week to meet with the Maryland Grain Producers Utilization Board. Schaffer discussed how their investment in the Council is vital to promoting U.S. corn, barley, sorghum and their co-products, and gave an update on current Council programs and opportunities for the future.

Farewell to Melisa Augusto. Melisa Augusto, USGC membership and communications coordinator, has accepted the position of director of communications for the National Farmers Union. She has been a great asset to Council members by effectively communicating the importance of trade to U.S. farmers. Please join Council staff in wishing Melisa the very best of luck in her new endeavor. Her last day will be Tuesday, Jan. 12, 2010.

NEW ON THE WEB

New Blogs Posted Frequently. Check out the latest entries on the Council’s blog, “The Grain Board.” The most recent post includes, “USGC Names Heffernan Senior VP,” by Mike Deering, USGC director of communications. Visit “The Grain Board” at www.thegrainboard.com. For more information, contact the bloggers at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

Board of Directors’ Meeting Minutes Posted in The GRAIN Center. The minutes from the Board of Directors’ meeting, held in Washington, D.C., Dec. 7-8, have received interim approval by USGC Secretary Don Fast and are now posted in The GRAIN Center, the members-only section of the Council’s Web site, www.grains.org. To access the Board of Directors’ minutes, click on “Leadership Resources,” in The GRAIN Center home, followed by “Board of Directors.” You can also find the minutes in the “What’s New” sidebar located on the left. For more information, contact Hillary Bennett, USGC executive assistant, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

COUNCIL ACTIVITY CALENDAR

January 9-16: USGC staff Chris Corry, senior director of international operations for Rest of the World (ROW), and Gina Tumbarello, manager of international operations for ROW, will travel to Amsterdam, Netherlands, to meet with the directors of each of the Council’s offices in the ROW region. Mike Callahan, senior director of international operations for Asia, and Kimberly Karst, manager of international operations for Asia, will travel to Hong Kong, China, to meet with the Council’s directors in Asia. During these meetings, the staff will collaborate on the drafting of the 2011 Unified Export Strategy, the Council’s strategic plan for developing markets for U.S. grains and co-products around the world, submitted to USDA each year. For more information, contact Tumbarello at This e-mail address is being protected from spambots. You need JavaScript enabled to view it  or Karst at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

January 12-14: The USGC Board of Directors will meet in St. Louis, Mo., to discuss priorities for the Council in the coming year. While in St. Louis, the Board will also hold a joint meeting with the National Corn Growers Association (NCGA) Board. USGC staff Thomas C. Dorr, president and CEO; Keith Heffernan, senior vice president of operations and industry relations; and Hillary Bennett, executive assistant, will represent the Council at NCGA’s Priority and Policy Conference as well. For more information, contact Bennett at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

The U.S. Grains Council does not discriminate on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation or marital/family status. Persons with disabilities, who require alternative means for communication of program information should contact the U.S. Grains Council.