OFFICIAL REVIEW OF THE MISSOURI CORN GROWERS ASSOCIATION AND THE MISSOURI CORN MERCHANDISING COUNCIL 2011 ANNUAL REPORT ALSO INSIDE: FIGHTING ON THE FEDERAL FRONT GROWING STRONG GRASSROOTS PARTNERING WITH NASCAR LEGISLATIVE & PUBLIC POLICY ...............................................4-5 MEMBERSHIP ...............................................................6 TABLE OF PRODUCTION & STEWARDSHIP.................................................7 RESEARCH & BUSINESS DEVELOPMENT .......................................8-9 C NTENTS ETHANOL PRODUCTION & MARKET DEVELOPMENT ............................10-12 FINANCIAL SUMMARIES......................................................13 COMMUNICATION & EDUCATION ...........................................14-19 2011-2012 MCGA AND MCMC BOARD OF DIRECTORS DISTRICT 1: DISTRICT 5: Morris Heitman Billy Thiel MCMC Treasurer MCGA President Mound City, MO Marshall, MO (660) 442-3726 (660) 631-1909 Kevin Hurst Jay Fischer MCMC Vice Chairman Jefferson City, MO Tarkio, MO (573) 636-0450 (660) 736-4894 DISTRICT 6: DISTRICT 2: Greg Schneider Gary Porter Warrenton, MO MCGA Secretary/Treasurer (636) 456-1112 Mercer, MO (660) 875-5802 Mark Scott Wentzville, MO Rob Korff (636) 262-7125 MCMC Chairman Norborne, MO DISTRICT 7: (660) 484-3787 John Moreton Charleston, MO DISTRICT 3: (573) 683-0779 Jay Schutte 2011-2012 MCGA AND MCMC STAFF MEMBERS Benton City, MO Jim Stuever (573) 581-1701 MCGA Vice President Gary Marshall Chief Executive Officer Dexter, MO Gary Wheeler Vice President of Operations and Grower Services Mark Goldinger (573) 820-0741 Hannibal, MO Becky Frankenbach Director of Communications (573) 221-5672 Bradley Schad Director of Ethanol Policy DISTRICT 4: Cindy Remmert Director of Finance Kyle Kirby Hilary Holeman Outreach Coordinator MCMC Secretary Shane Kinne Associate Director of Public Policy Liberal, MO Matthew Amick Associate Director of Grower Services (417) 843-4176 Whitney Lammers Assistant to the CEO Mike Moreland Lori Schulte Office Manager Harrisonville, MO (816) 887-2286 MISSOURI CORN GROWERS ASSOCIATION MISSOURI CORN MERCHANDISING COUNCIL 3118 Emerald Lane • Jefferson City, MO 65109 Phone: (573) 893-4181 • Toll-free: (800) 827-4181 • Fax: (573) 893-4612 E-mail: [email protected] • Web: www.mocorn.org www.Facebook.com/MissouriCorn www.Twitter.com/MissouriCorn www.YouTube.com/MissouriCorn 2 FROM THE OFFICE C RNER GREETINGS Despite a tough economy, numerous natural of distillers grains, a high quality co-product disasters and a challenging growing season, of the ethanol process. We participated in 2011 was a success for Missouri Corn. dozens of meetings across the state to show Not only were we able to garner full funding our support for animal agriculture. Checkoff for the Missouri Qualified Fuel Ethanol funds were wisely invested to support Incentive Fund, but Missouri Corn also domestic and international consumption pushed for legislation to ensure Missouri of beef, pork, chicken, milk and eggs by agriculture does not yield to national activist working with groups like the National Corn organizations like the Humane Society of the Growers Association, U.S. Grains Council United States (HSUS). Missouri agriculture and U.S. Meat Export Federation. pulled together like never before, forming the Missouri Farmers Care coalition to These successes would not have been represent all the major commodity groups possible without the tireless work, support and agribusinesses in the state. and guidance from our board of directors. These farmer-leaders create our vision Missouri Corn also led an effort to showcase for success, establish goals and provide Missouri agriculture to our urban neighbors. the expert analysis on how our programs Alongside eight agricultural organizations, perform. This voluntary board truly works we partnered with the St. Louis Cardinals hard for you each and every day. You have a to bring out the best in Missouri agriculture tremendously talented staff working for you while the Cardinals brought Missouri the best as well, but the glue that holds it all together baseball in the country by winning the are corn farmers like you. Thank you for World Series. your continued support of the Missouri Corn Merchandising Council and the Missouri We took the positive messages about Corn Growers Association. Best wishes corn-based ethanol on the road at numerous for a prosperous year. trade shows across the state. Although Big Oil continues to throw the book at Missouri’s majority farmer-owned ethanol Sincerely, industry, we continue to meet face-to-face with consumers to explain the economic and environmental benefits of this locally produced fuel. Gary D. Marshall, CEO Missouri Corn also worked with the state’s Missouri Corn Merchandising Council livestock industry to showcase the benefits Missouri Corn Growers Association 2011 Annual Report 3 LEGISLATIVE & PUBLIC P LICY FIGHTING ON THE FEDERAL FRONT For the last five years, the Missouri Corn Growers Association (MCGA) has advocated for the passage of free trade agreements (FTAs) with Colombia, Panama and South Korea. This fall, after submission by President Barack Obama, Congress approved these necessary measures, giving U.S. farmers the opportunity to recapture and develop key markets overseas. Estimates show passage of the trade deals could result in an additional $2.5 billion in sales, adding a value of up to $45 million to the Missouri economy alone. Already the third largest market for U.S. corn, South Korea has the potential for an increased distillers grains market. Colombia, traditionally one of the top 10 customers of U.S. corn, is currently importing from competitors due to delayed passage of the U.S. FTA. Upon enactment, U.S. corn growers will have access to an $82.7 million bushel corn market at zero duty. Under current rules, grain tariffs into Panama can reach up to 90 percent, while Panamanian goods coming into the United States enter duty-free. The long-awaited passage of the FTAs levels this playing field and gives Missouri corn farmers access to this fast growing economy. Photo credit: Daniel Prenger, Jefferson City, Mo. 4 STANDING UP IN THE STATE CAPITOL Missouri’s 96th General Assembly delivered Also supported by MCGA was SB 187, several highpoints for agriculture. Last November, Agriculture Nuisance Lawsuit Reform. After Gov. the Humane Society of the United States (HSUS) Jay Nixon vetoed a similar bill, the measure was pulled the wool over Missouri voters’ eyes, redesigned to protect farmers from multiple, squeaking out a victory on Proposition B, a ballot frivolous lawsuits once losses have been initiative placing devastating regulations on dog recovered. Farmers take a certain amount of risk breeders. Working to amend these overreaching every year and should not have to worry about restrictions, Senate Bill (SB) 161, dubbed the lawsuits jeopardizing their way of life. SB 187 “Missouri Solution,” was brought before the helps to mitigate that risk. Missouri legislature. The measure modified the language that would have negatively impacted In Washington, D.C., and Jefferson City, the animal agriculture without benefiting the welfare Missouri Corn Growers Association is committed of dogs. Bringing both sides together, SB 161 to defending Missouri’s corn industry and your addressed these concerns while funding common right to farm. sense oversight of breeding operations. In an extremely difficult budgetary environment, MCGA worked hard to secure full funding for the Missouri Qualified Fuel Ethanol Producer Incentive Fund. The 2012 fiscal year appropriations help fulfill the state’s commitment to the farm families who built Missouri’s six farmer-owned ethanol plants. Missouri Corn will now begin working to secure full funding for the final budget year of this beneficial program. Recognizing losses incurred from grain dealer bankruptcies seriously affect farm families, MCGA representatives testified in support of and successfully helped pass SB 356. The law, requiring licensed grain dealers to maintain a Over 1,000 farmers and agriculture supporters minimum net worth of 5 percent of total grain gathered on the south lawn of the Capitol purchased during the previous year, is a step Wednesday to show support for the “Missouri forward in helping to protect grain farmers from Solution” to Proposition B, Senate Bill 161. future warehouse bankruptcies. 2011 Annual Report 5 MEMBERSHIP GROWING STRONG GRASSROOTS MCGA’s political success is a tribute to the strength of a growing grassroots and membership program. This year, the Missouri Corn grower services program worked to educate farmers on current policy affecting the corn industry, boosting awareness of MCGA and creating opportunities for growers to network with peers and industry partners. These efforts helped propel MCGA membership to its highest level in our 33-year history. This membership growth, a 20 percent increase from 2010, garnered Missouri Corn the honor of the second highest number of new members among all corn grower associations in the nation. This growth is a testament to the strength of Missouri’s corn sector. Now more than ever, the state’s corn farmers are stepping up to help shape the future of the industry through effective public policy and market development. Despite these accomplishments, our work is far from finished. Every membership matters. If you’re already a member of MCGA, we thank you for your support. If you have not yet joined, we ask you to become a part of an organization committed to protecting the rights of its members, building new markets