NCGA Strategic Plan

National Corn Growers Association

STRATEGIC PLAN

March 2010

The Mission of the National Corn Growers Association is to Create and Increase Opportunities for Corn Growers

Rev. 3/4/10

3

TABLE OF CONTENTS

Introduction. . . . . . . . . . . . . . . . . . . . . . . .1

Vision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

The.Future.We.Seek.to.Create. . . . . .4-5

Key.Areas.of.Focus . . . . . . . . . . . . . . .7-23

Guiding.Principles. . . . . . . . . . . . . . 24-26

Appendix. . . . . . . . . . . . . . . . . . . . . . 27-29

History . . . . . . . . . . . . . . . . . . . . . . . . 30-31

1

Outcomes(Business Plans)

Stakeholders(States - P&P)

NCGA Operations

Strategic Plan

INTRODUCTION

“Plans are nothing. Planning is everything.” (Dwight D. Eisenhower on the eve of the Normandy Invasion)

The NCGA strategic plan is a living document that is the dynamic story of the shared aspirations, strategic direction and planned outcomes for the federation of state organizations and individual members that make up the National Corn Growers Association.

It is designed to be a continuously evolving document driven by the collective knowledge and experience of the community that we represent.

NCGA is already living in the future. The seeds have been planted and what we want to be and are trying to create is already reflected in our activities and efforts. Our goal is to continue to live in the future and to find, cultivate, harvest and spread these seeds that will continue to allow us to grow there.

Figure 1: NCGA Planning Process

1

2

VISION

The Vision describes the long-range goal specifically for the National Corn Growers Association organization, a goal that is tangible, energizing, and focused. The description paints a picture of what the organization will become. The purpose of the vision is to energize, motivate, and focus the organization’s leadership, staff, and strategic partners.

The National Corn Growers Association will continue to be the recognized leader working in cooperation with its suppliers and customers to maintain sustainability and to achieve new business and profit opportunities for those it represents.

To continue our vision, we will:

• Provide exceptional leadership and service to state member organizations and individual members

• Serve to constantly improve and to enhance the National Corn Growers Association vision—facilitating grower input and industry consensus on industry‑wide goals and committing resources and taking measurable actions toward achieving these goals

• Serve as a national forum for developing a strong voice on domestic and international policy affecting the corn industry and corn growers in particular

• Continue as the recognized and respected source of valued leadership and information for members, growers, the agriculture industry, those who influence policy, and decision makers

• Be a catalyst to create an enabling environment for grower entrepreneurs

Figure 2: Strategic Plan Communication Flow

Corn Board

States/Members

Teams/Committees

Staff

Communication Flow

3

Corn Congress

Sets Policy and Elects Corn Board

Meets 2 times per year

Representative Body of all State Associations

Corn Action Teams/Committees

De�nes and Implements Business Plan for Key Corn Issues

Corn Board

How NCGA Works for Corn Producers

Executes Policy, Responsible for all Financial A�airs and Executes

Association Strategic Vision

MISSION

The Mission describes the contribution of the National Corn Growers Association organization to achievement of the vision in a precise, concise and inspiring declaration of the fundamental purpose for which the organization exists.

Create and increase opportunities for corn growers

This National Corn Growers Association mission will be achieved through adherence to the following philosophies:

• NCGA is a membership organization and a federation of states• We serve each together and separately, as needed• We draw unique strengths from each

• We exist to coordinate the focus and interest and power of our dual membership (to board) into a national effort• We draw strength from a united coordinated policy effort• We draw strength from our collective diversity

• To be successful, we must leverage our resources• This includes volunteer time as well as money• We seek involvement in carefully screened coalitions and partnerships• We seek a leveraging opportunity for each of our key goals

• We have a broad scope of responsibilities but finite resources, and must therefore continue to strive to prioritize to effectively employ our resources

Figure 3

4

THE FUTURE WE SEEK TO CREATE

NCGA’s “Vision” of the future change in corn production and use from 2008 to 2020. While no one can predict the future and much can happen to change the basis for our assumptions, this is our best present view of the future we hope to help create.

This is a vision and not a forecast. It has not been developed with statistical rigor or designed to necessarily balance.

Table1: NCGA’s Vision of the Future Change in Corn Production

Projection baseline current as of 1/2009 * Source: USDA** Source: NCGA 15x15x15 adjusted

*** Source: NCGA Corn Board

2007-08* 2015-16** 2020-21*** (mil bu) % Supply (mil bu) % Supply (mil bu) % Supply

Production 13,074 15,170 17,0001

Carry-in 1,304 1,731 1,800

Supply 14,398 16,911 18,800

Feed & Residual 5,974 43% 5,425 32% 6,1002 32%

DDG Fed – Corn equivalents 792 1,454 1,400

Food, Seed & Industrial (FSI) 4,355 30% 6,922 41% 8,125 42%

Food 1,084 8% 1,006 6% 1,250 5%

New Uses, Industrial, Starch 270 2% 435 3% 7256 4%

Ethanol (-DDG credit)

3,001(2,111)

Adjusted Consumption

15%

5,481(4,027)


24%

6,1503

(4,750)4


25%

Exports (Grain Only) 2,436 17% 2,500 15% 2,7605 15%

Total Use 12,773 14,847 16,985

Carry Out 1,624(Stocks: Use)

13% 2,064(Stocks: Use)

14% 1,815(Stocks: Use)

11%

1Production based upon 90 million planted acres and 83 million harvested with 205 bu/acre average yield.2Feed & Residual was held flat with total livestock numbers increased slightly. 3Ethanol production increase to ~18 billion gallons.4DDG displacement of corn increases and changes dynamics due to technology advancements.5Exports were held near trendline growth.6Industrial uses of corn were raised ~350 mil bu to account for more PLA, etc.

5

This vision is the basis for our strategic plan. We believe that the basis for a 17 billion bushel corn crop is in place and can easily become a reality. Our challenge is to keep utilization growing at a comparable rate. Our role then, as we see it, is to be a catalyst to enhance trends, moderate declines and stimulate appropriate change. The goals in this plan are driven by a realistic assessment of where we can have an impact. This projection is based on the following assumptions:

• The U.S. comparative advantage in corn production in relation to other crops and other countries will be maintained or expanded over the next 12 years

• The average annual increase in U.S. corn production will exceed a base rate of 2%

• U.S. corn acreage will remain within recent historical norms

• Technology and productivity will allow U.S. corn producers to increase their average net revenue per acre

• Productivity and relative price will allow U.S. corn to maintain and expand its role in “commodity” markets

Changes in business structure will allow U.S. corn producers opportunities to choose to move up the value chain increasing the amount of income that they derive from “value added or value enhanced” enterprises.

KEY AREAS OF FOCUS, SPECIFIC GOALS AND OBJECTIVES

Corn Production — Assumes an increasing rate of corn yield productivity. See the corn production section for the combinations of acreage and/or production increase that will get us to 17 billion bushels

Feed & Residual — Assumes modest growth in domestic feed use and rapid relative growth in meat exports

New Use Market Development — Assumes modest growth in Food, Seed and Industrial (FSI) use consumption and increasing growth in non‑food industrial use (plastics, chemicals, etc.)

Biofuels — Assumes continued growth in use for ethanol

Exports (Grain only) — Assumes growth in exports above recent trendline and assumes exports to China

7

KEY AREAS OF FOCUS, SPECIFIC GOALS AND OBJECTIVES

NCGA’s stakeholders have identified key

areas of focus, specific goals and objectives

for NCGA. From these key areas, the NCGA

Corn Board has identified programs of work,

based on resources, which NCGA will target.

The goals under each program designate

the scope of direct NCGA participation.

Objectives are measurable, attainable

milestones to achieve by a specific point in

time on the way to accomplishing the goal.

When a benchmark does not exist, objectives

will describe the measure or change that will

be used to assess progress.

8

CORN PRODUCTION

Members of the National Corn Growers Association are in the business of producing corn. Increased market demand and advances in production technology will continue driving U.S. corn production.

Table 2: U.S. Corn Production

*USDA **NCGA 15x15x15 ***NCGA Corn Board

Key Assumptions Supporting 2020 Projections

• U.S. producers will increase productivity to meet market demand for corn

• The U.S. corn industry will sustain its worldwide lead in technology

• Corn yields will continue to increase with new technology and increase input efficiency

• Corn production will continue to be an attractive investment

Figure 4

U.S. Corn Yield Projection*

* Source: NCGA estimates

7595

115135155175

195215

1990-91

1992-93

1994-95

1996-97

1998-99

2000/01

2002/03

2004/05

2006/07

2008/09

2010/11

2012/13

2014/15

2016/17

2019/20

bush

els/

acre

Yield Yield Projection

1995-96* 2000-01* 2005-06* 2007-08* 2015** 2020***

Production(mil bu.) 7,400 9,915 11,114 13,074 15,170 17,015

Yield 113.5 136.9 148.0 151.1 175.9 205

Harvested Acres (mil) 65.2 72.4 75.1 86.5 86.2 83

9

Challenges to Overcome• Environmental issues, such as water quality and quantity will impact corn production

• Urban sprawl and other development will pressure farmland availability

• Input availability and pricing will impact an increasingly competitive global market

• Changing demographics in agriculture will increase the need for skilled labor in crop production

• Life Cycle Analysis (LCA), carbon credit programs and greenhouse gas measurements affecting agriculture that may not be based on sound science

• Agronomic and climatic conditions affecting grain quality and quantity, such as floods, droughts, mycotoxins, etc., which may be remedied through new technology

NCGA Goals Farm Policy

• Assure adequate safety net• Promote policies that stimulate rural economic development• Strengthen PAC to continue relationships with policymakers

Technology• Promote market access based on sound science• Capitalize on emerging technologies• Facilitate biotechnology stewardship • Expand work on mycotoxin mitigation and elimination• Ensure a timely and predictable process for new technology approval

Research and Development • Advocate for policy to increase agricultural research funding for corn and corn biomass• Stimulate investment in businesses that support corn production and/or utilization• Advocate for adequate investment to identify the functions of all genes within the corn genome

Transportation• Assure an infrastructure capable of handing 17 billion bushels of corn, co‑products, and necessary inputs• Strengthen the U.S. infrastructure competitive advantage

Stewardship

• Advocate a domestic environmental policy based on sound science, including reasonable pesticide regulation• Promote resource stewardship through voluntary, locally‑led conservation efforts• Assure water quality programs to assist farmers in achieving environmental goals• Promote and educate farmers on sustainability

Direct ResponsibilityPublic Policy Action Team

Production and Stewardship Action Team

Biotech Working Group

Research and Business Development Action Team

Corn Political Action Committee

10

Objectives

Farm Policy• Influence U.S. farm policy to provide a strong safety net that supports family farms • Help enact stronger and more effective risk management tools and alternatives

Technology • Facilitate commercialization of products of biotechnology while protecting markets• Expand research program on mycotoxins

Research & Development • Create an environment that keeps corn at the forefront of public and private sector biotechnology investment and

commercial application• Advocate for a robust pipeline from maize research to traits in the field, keeping as much as possible in the public domain• Foster technology that improves efficiencies for corn to ethanol and corn biomass to green energy

Transportation• Promote competitive balance between rail, truck and river systems

Stewardship• Ensure conservation programs are implemented in a producer‑friendly manner• Work with EPA to objectively evaluate the risks and benefits of crop protection products using the best available science• Provide educational resources for growers to best utilize biotechnology• Promote sustainability as part of Field‑to‑Market Coalition

Table 3: Yield‑Acre Combinations to Reach Certain Levels

PartnersAcademia

Agribusiness

Government

Non‑Governmental Organizations

Technology Providers

Transportation Providers

Other industry

Scenarios below 17 Billion Bushel Vision

Scenarios in proximity to 17 Billion Bushel Vision

Scenarios achieving 17 Billion Bushels and above

Acres (million) Acres (million) Yield (bushels/Acre)

Planted Harvested 160 165 170 175 180 185 190 195 200 205 210 215 220

85 78 12.5 12.9 13.2 13.7 14.0 14.4 14.8 15.3 15.6 15.9 16.4 16.8 17.1

86 79 12.7 13.1 13.4 13.8 14.2 14.6 15.0 15.4 15.8 16.2 16.6 17.0 17.4

87 80 12.8 13.2 13.6 14.0 14.4 14.8 15.2 15.6 16.0 16.4 16.8 17.2 17.6

88 81 13.0 13.4 13.8 14.2 14.6 15.0 15.4 15.8 16.2 16.6 17.0 17.4 17.8

89 82 13.1 13.6 13.9 14.4 14.8 15.2 15.6 16.0 16.4 16.8 17.2 17.6 18.0

90 83 13.3 13.7 14.1 14.5 14.9 15.4 15.8 16.2 16.6 17.0 17.4 17.8 18.3

91 84 13.5 13.9 14.3 14.7 15.1 15.5 16.0 16.4 16.8 17.2 17.6 18.0 18.5

92 85 13.6 14.0 14.4 14.9 15.3 15.7 16.2 16.6 17.0 17.4 17.8 18.3 18.7

93 86 13.7 14.2 14.6 15.0 15.5 15.9 16.3 16.8 17.2 17.6 18.1 18.5 18.9

94 87 13.9 14.4 14.8 15.2 15.7 16.1 16.5 17.0 17.4 17.8 18.3 18.7 19.1

95 88 14.1 14.5 15.0 15.4 15.8 16.3 16.7 17.2 17.6 18.0 18.5 18.9 19.4

96 89 14.2 14.7 15.1 15.6 16.0 16.5 16.9 17.4 17.8 18.2 18.7 19.1 19.6

97 90 14.4 14.9 15.3 15.8 16.2 16.6 17.1 17.6 18.0 18.4 18.9 19.3 19.8

98 91 14.6 15.0 15.5 15.9 16.4 16.8 17.3 17.7 18.2 18.6 19.1 19.5 20.0

99 92 14.7 15.2 15.6 16.1 16.6 17.0 17.5 17.9 18.4 18.9 19.3 19.8 20.2

100 93 14.9 15.3 15.8 16.3 16.7 17.2 17.7 18.1 18.6 19.1 19.5 20.0 20.5

11

FEED & RESIDUAL

Corn growers have always depended on livestock producers and feeders as the primary market for the corn produced. The future profitability of both corn production as well as the ethanol industry will rely upon a healthy vibrant livestock industry for both corn and ethanol co-products.

Table 4: Feed & Residual Disappearance

* USDA ** NCGA 15x15x15 Adjusted *** NCGA Corn Board


• U.S. meat, milk, and egg consumption will continue to increase at the rate of population growth

• World population will continue rapid rate of population increases

• Increasing per capita income outside the U.S. will continue to drive global demand for protein and animal products

• Over the near term, ethanol co‑products will continue to increase in availability and become an ingredient in more livestock rations

• U.S. beef exports will continue to grow and resume levels of trade seen prior to BSE outbreak

Figure 5

1995/96* 2000/01* 2005/06* 2007/08* 2015/16** 2020/21***

Feed (mil bu.) 4,712 5,850 6,155 5,974 5,425 6,100

0

20

40

60

80

100

120

19 9720 00

20 0420 07

20 0820 15

20 1720 20

beef

, dai

ry, h

ogs

mil

head

0

2

46

8

10

12

poul

try

bil h

ead

Dairy Beef Hogs Poultry

U.S. Livestock Numbers

12

Challenges to Overcome

• Negative perceptions about the quality and safety of U.S. meat products

• Perceptions that antibiotic low‑level feeds and antibiotic disease‑treatment levels add to the risk of resistant strains in humans

• Compliance with increasing environmental regulations, such as Clean Water Act, Clean Air Act, and Particulate Matter Regulations, and maintaining and growing the domestic livestock industry

• Unfounded activist attacks that raise animal welfare concerns and potential legislation focused on the livestock industry

• Increased availability of ethanol co‑products (Distillers Grains and Corn Gluten Feed) and their efficient integration into feed rations

• Ration balancing given the changing nature of co‑products emerging from corn fractionation and oil separation

• H1N1’s “swine flu” misnomer may pose problems as a market barrier

Figure 6

NCGA Goals• Seek solutions to the challenges facing the U.S. livestock industry

• Advocate trade policy initiatives that are friendly to the export of U.S. livestock products

00.5

11.5

22.5

33.5

4

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

MM

T

Beef/Veal Pork Broiler/Turkey

U.S. Meat Exports

13

Direct ResponsibilityProduction and Stewardship Action Team

Joint Trade Policy A‑Team

Objectives• Support expansion in U.S. livestock industry

• Advocate trade policies that enhance the export of U.S. meat and livestock products

• Promote cost effective nutrient management practices

• Facilitate member states’ efforts

Figure 7

Partners

• National Cattlemen’s Beef Association

• National Milk Producers Federation

• National Pork Board

• National Pork Producers Council

• Member States

• USA Poultry and Egg Association

• U.S. Meat Export Federation

010002000300040005000600070008000

19801982

19841986

19881990

19921994

19961998

20002002

20042006

20082010

20122014

20162018

2020

Crop Year

Mill

ion

bush

els

Corn Corn Displaced by DDG

U.S. Corn Demand for Livestock Feed

14

BIOFUELS

U.S. corn industry was instrumental in the development of fuel ethanol. From its inception, ethanol has grown from a new specialty market for corn to a key component in the U.S. liquid fuel supply and a major market for a growing corn supply.

Table 5: U.S. Ethanol and Distillers Grains Projections

* USDA** NCGA 15x15x15 adjusted

*** NCGA Corn Board† Current PRX Displacement Ratio

‡ Future Displacement Estimate, NCGA Key Assumptions Supporting 2020 Projections

• Under the Energy Independence and Security Act (EISA) of 2007, the Renewable Fuels Standard (RFS) for conventional (corn starch‑based) ethanol increases to 15 billion gallons by 2015 and is then capped at that level until 2022

• 15 billion gallons will be roughly 10 percent of projected U.S. gasoline demand for 2015

• Current regulations specify that 10 percent ethanol is the highest level allowable in the conventional automobile fleet. Fuel blends containing more than 10 percent ethanol will be allowed under future regulations

• Co‑products resulting from the processing of 6,150 million bushels of corn for ethanol will be sufficient to displace 1,400 million bushels of corn from the feed market

• Corn starch use for ethanol is estimated at 6,150 million bushels. This implies corn starch ethanol production of approximately 17.2 billion gallons. This amount of ethanol is 2.2 billion gallons above the 15 billion gallon RFS capped allotment for corn starch‑based ethanol. It is also higher than the amount of ethanol that could be consumed as E‑10 by the conventional automobile fleet

• Ethanol producers will receive positive returns, facilitating continued expansion of production capacity

• Consumption of ethanol will increase if legislation is passed requiring automakers to produce increasing numbers of flex‑fuel vehicles or requiring fuel retailers to sell E‑85/mid‑level blends, and if E‑85/blender pump infrastructure is expanded

• Between 2015 and 2020, increasing adoption of new and emerging corn fractionation and oil separation technologies will reduce the amount of co‑products that will be sold into the feed market and increase the amount of co‑products that will be sold into the human food market or other industrial markets (i.e. corn oil for biodiesel)

• Consumption of ethanol for non‑fuel use will increase. This includes the use of ethanol as a feedstock for higher‑value industrial chemicals

1995/96* 2000/01* 2005/06* 2007/08* 2015/16** 2020/21***

Ethanol (Starch) (mil bushels) 396 657 1,648 3,001 5,481 6,150

Corn displaced by DDG(s) (mil bushels) 342† 890† 1,454‡ 1,400‡

Adjusted Corn Consumption by the Ethanol Industry

396 657 1,306 2,111 4,027 4,750

15

Table 6: Renewable Fuels Standard (all figures in billions of gallons)

Sources: NCGA, EISA

Figure 8

YEARTotal

Renewable Fuel

Advanced Biofuel Conventional Biodiesel Cellulosic

Biofuel

2008 9.0 9.02009 11.1 .60 10.5 .50

2010 12.95 .95 12 .65 .102011 13.95 1.35 12.6 .80 .252012 15.20 2.00 13.2 1.0 .502013 16.55 2.75 13.8 1.0 1.02014 18.15 3.75 14.4 1.0 1.752015 20.50 5.5 15.0 1.0 3.02016 22.25 7.25 15 1.0 4.252017 24.0 9.0 15 1.0 5.52018 26.0 11.0 15 1.0 7.02019 28.0 13.0 15 1.0 8.52020 30.0 15.0 15 1.0 10.52021 33.0 18.0 15 1.0 13.52022 36.0 21.0 15 1.0 16.0

Renewable Fuels Standard

Sources: NCGA, EISA

16

Challenges to Overcome• Retention of a mechanism to encourage ethanol blending

• Allowance of volumes of corn starch‑based ethanol above 15 billion gallons to qualify for credit under the RFS. Regulatory restrictions that limit conventional automobiles to consume gasoline containing more than 10 percent ethanol

• Perception or reality that Brazil is a competitor versus cooperative partner

Figure 9†

†Refer to Table 5, row 3 on page 14

NCGA Goals

• Encourage and maintain farmer ownership in the biofuels industry

• Facilitate the opportunity for profitable market growth

• Facilitate increased development of domestic energy resources

Direct ResponsibilityEthanol Committee

Public Policy Action Team

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

198019821984198619881990199219941996199820002002200420062008*2010*2112*20142016*20182020*

Effective Corn Consumption by the Ethanol Industry

Mill

ion

Bush

els

17

Objectives• Promote in Congress and the Administration an expansion of ethanol production and use, and increased infrastructure

through higher blends

• Foster farmer ownership opportunities

• Engage and support research designed to improve the efficiency and profitability of farmer‑owned value added businesses

• Establish a national research priority to enable the U.S. to transition from a petroleum‑based economy to a plant‑based economy

• Increase exploration and production of domestic energy resources

• Support successful implementation and execution of the Renewable Fuels Standard

• Expand definition of corn ethanol into an advanced biofuel

Partners• 25x25

• American Coalition for Ethanol

• Agriculture Energy Alliance

• Corn Refiners Association

• Distillers Grains Industry

• Farm Bureau

• Fertilizer Industry

• Growth Energy

• Renewable Fuels Association

18

EXPORTS

U.S. corn is the leading coarse grain traded around the world. The global corn trade provides a valuable outlet for U.S. production, supporting domestic corn prices and enriching America’s balance of trade.

Table 7: Corn Exports Projections


*** NCGA Corn Board


• The U.S. will remain committed to be a reliable supplier to meet world corn demand

• Global meat consumption will continue to grow, and many countries will attempt to meet this increased demand through domestic production

• Corn will remain competitively‑priced relative to other feedstuffs

• Global market privatization and liberalization will increase agricultural trade

• The Japanese market will continue to hold at its current import levels of 600‑625 million bushels

• The Mexican market will continue to grow slowly in out years as per capita meat consumption begins to equalize relative to U.S. and Canadian levels

• Middle Eastern imports will continue to expand with production of local poultry markets

• Brazilian corn exports will peak at 10‑12 MMT (394 ‑470 mil bushels). Major increases in Brazilian production will be absorbed by growing domestic livestock industry

• China will become a net corn importer over time. Increases in per capita income will continue to drive meat, milk, and egg demand. China will attempt to meet a significant portion of this demand through domestic production

• Korean livestock feeders will become more reliant on corn imports, especially U.S. corn, as more European feed wheat is diverted into biofuels

1995-96* 2000-01* 2005-06* 2007-08* 2015** 2020***

Exports (Grain Only) (mil bushels)

2,228 1,941 2,134 2,500 2,500 2,760

19

Figure 10


• World Trade Organization (WTO) and bilateral trade agreements

• Global acceptance of biotechnology

• U.S. transportation infrastructure to support rising global trade

• Competition between global suppliers of carbohydrates, protein, and energy

• Strengthening of the U.S. dollar

NCGA Goals• Influence trade policies that promote market access and fair and open trade

• Assure infrastructure for competitive grain handling, storage, and transportation

• Assist Livestock Partners with trade policies that promote corn exports through livestock and livestock products

• Promote reauthorization of trade promotion authority

Direct ResponsibilityJoint Trade Policy A‑Team

Public Policy Action Team

Production and Stewardship Action Team

Biotechnology Working Group

China and Exported Corn Dynamic

0123456789

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

2018/19

2019/20

2020/21

billi

on b

ushe

ls

U.S. Exports Chinese Consumption

20

Objectives• Support a WTO agreement based on increased market access, reduction of trade distorting domestic policies and

elimination of export subsidies

• Promote Free Trade Agreements that open markets to trade of U.S. corn and corn co‑products

• Lobby for legislative policies and programs that promote competitive balance between rail, truck and river systems

• Advocate funding levels that keep the river system functional and efficient until new construction is complete

• Secure Congressional appropriations for construction on seven Locks and Dams on the Mississippi and Illinois Rivers

• Monitor WTO cases filed against U.S. commodities, if corn is included, and cases impacting U.S. ethanol

Partners• Ag Trade Coalition

• Waterways Council, Inc.

• U.S. Grains Council

• U.S. Meat Export Federation

21

NEW USE MARKET DEVELOPMENT

Diversification of products made from corn creates new markets, increased rural development opportunities and increased stability in demand. It also allows producers to benefit from higher value markets.

Table 8: New Industrial Uses


*** NCGA Corn Board


• Significant corn market growth will come from both traditional and non‑traditional uses

• Consumption of biofuels for non‑fuel uses will increase, including the use of ethanol as a feedstock for higher‑value industrial chemicals

• Advances in biotechnology will increase the utilization of competitively priced corn‑based carbohydrates

• Uses of corn in fermentation and other industrial applications will continue to grow

• Innovative producers will participate and invest in new business relationships

• Increasingly research dollars will be used in areas related to large volume uses of corn

• Public and private research expenditures will be important to the industry

• New market outlets will be created to ease price tension during events of ethanol overproduction

• Distillers grains will be used beyond current feed uses

98-99* 01-02* 05-06* 07-08* 15-16* 20-21*

Food & Industrial Total (mil bushels) 1,271 1,282 1,127 1,365 1,441 1,975

‑ New Uses, Industrial, Starch (mil bushels)

251 256 272 270 435 725

Ethanol(mil bushels) 553 743 1,648 2,129 5,481 6,150

22

Figure 11

Example: Per gallon of ethanol converted to ethylene, an additional $.40 of value could be added. So a 100 million gallon plant can convert 5% production to ethylene and generate an additional $2 million in revenue. ($2.80 ethanol base)

Figure 12


• High costs of biobased products

• Low awareness of bioproduct development and opportunities in rural processing facilities

• Public funding for biobased product development

Historical Look at Prices Along the Ethylene Chain (USA)

Ethane (left)LDPE (right)Ethylene Glycol (right)

Ethylene (right)LLDPE (right)

HDPE (right)PVC (right)

Source: Chemical Market Reporter, Chemical Week Associates, Haver Analytics

$0.00

$0.10

$0.20

$0.90

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.00

$0.10

$0.20

$0.70

$0.30

$0.40

$0.50

$0.60

99 00 01 02 03 04 05

$/Gallon $/Pound

Historic Ethanol vs. Gasoline Pricing

Chicago Ethanol less VEETC

0

50

100

150

200

250

300

350

Jan-03

Apr-03

Jul-03Oct-03

Jan-04

Apr-04

Jul-04Oct-04

Jan-05

Apr-05

Jul-05Oct-05

Jan-06

Apr-06

Jul-06Oct-06

Jan-07

Apr-07

Jul-07Oct-07

Jan-08

Apr-08

Jul-08Oct-08

Cen

ts/g

al

Gasoline, Conv Reg, NY Harbor

Sources: Chicago Mercantile Exchange, DOE EIA

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NCGA Goals• Support funding and research for developing new products from corn including biobased products derived from current

and future energy products

• Foster a steady pipeline of new product and use concepts

• Stimulate investment in rural business

• License and market NCGA‑owned technical intellectual property

Direct Responsibility• Research and Business Development Action Team

• Public Policy Action Team

Objectives• Identify, screen and pursue new applications for corn and corn co‑products

• Create owner/equity business opportunities for NCGA as an association and for the corn grower member

• Establish a national research priority to enable the U.S. to transition from a petroleum‑based economy to a plant‑based economy

Partners

• Abengoa

• ADM

• Cargill

• Chromatin

• Divergence

• Donald Danforth Plant Science Center

• Dow AgroSciences

• DuPont/Pioneer

• Land Grant Universities

• Monsanto

• National Corn‑to‑Ethanol Research Center

• Syngenta

• U.S. Department of Agriculture

• U.S. Department of Energy

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GUIDING PRINCIPLES

Guiding Principles are the operational parameters by which the organization functions. They are a set of standards that describe the practical values by which the organization conducts its day-to-day operations.

ASSOCIATION

MembershipNCGA has maintained a steady membership growth in recent years, counter to trends in other organizations and agriculture in general. NCGA’s goal is to maintain an active and growing membership. Specifically, our objective is to move from our current base of approximately 35,000 members to more than 40,000 by 2020. This will be working against the demographics of a declining and aging farm population and as such will require innovative programs and non‑traditional services. An incentive‑based membership recruitment and retention program and dedicated grassroots recruiters and staff members are vitally important to meet organizational objectives. Responsibility for membership programs is with the Grower Services Action Team.

LeadershipAn important NCGA goal is to develop qualified, loyal and dedicated farmer‑leaders. The Growers Services Action Team reviews plans regularly to keep leadership training programs dynamic, viable and relevant. Many graduates of NCGA leadership programs become NCGA action team and committee chairmen, corn board members and officers, and which is a testament to the importance of these programs. NCGA conducts a Leadership At Its Best Training Program as well as an Advanced Leadership Program.

ServicesAnother key area of responsibility and goal for the Grower Services Action Team is to develop and provide services and support to state affiliates and corn growers. As a part of this mission, GSAT and others screen services for growers and states that may provide tangible benefits. NCGA and state affiliates must continually seek to maximize the investment of farmer‑members and checkoff contributors.

RESOURCES

The corn sector growth that NCGA envisions will require a dynamic, well‑funded NCGA in order to achieve the vision. NCGA historically receives approximately 70% of its revenues from corn checkoff investment; 7% from membership dues; 10% from industry investment; 10% from meetings and events revenue and 3% from other sources.

Checkoff RevenueNCGA has received approximately $5.5 million in checkoff revenues in recent years, or approximately 17 percent of net check‑off collections by state affiliates. Our goal is to earn an increased investment from affiliated states by providing valuable programs and services.

Membership RevenueAs NCGA grows in membership to more than 40,000, revenue should experience incremental growth as well, estimated at about 10%. As mentioned earlier, growth in membership and membership revenue will be working against the demographics of a declining and aging farm sector population and as such will require innovative programs and non‑traditional services. Industry InvestmentIndustry consolidation is a reality. There are fewer individual companies involved in the corn sector as mergers and acquisitions occur. This trend will likely continue through 2020. As corn continues to become a more important and significant crop in the domestic crop production mix, corn will continue to be a growing focus for industry investment. As the NCGA budget grows, there should be proportional growth in investment by our industry partners.

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Grant RevenueNCGA has modest success in applying for and receiving private sector and government grant funds for investment in NCGA programs and activities. This is an area that is targeted for relative growth in this plan. Grants do not come without cost and investment. With appropriate resource investment, we believe that NCGA can double grant revenue by 2020.

Meetings and Events RevenueNCGA receives approximately $1 million in revenues from meetings and events. Much of this is offset by direct expense and so the net is less. We anticipate modest opportunity to increase revenues from meetings and events through 2020.

Technology Licensing RevenueNCGA continues to invest in the development of new technologies and uses for corn. These investments are expected to provide a significant revenue stream in the future. We have achieved modest revenue streams from previous investments and anticipate those growing over time.

FINANCIALS

NCGA is a membership organization and a federation of states. NCGA is organized to address the issues that need to be addressed on a national basis for corn producers, state associations, and state checkoff boards.

NCGA communicates financial status throughout the fiscal year:

• NCGA will have a flexible budget and a reserve fund, to allow for emerging issues that arise during the fiscal year

• NCGA will operate with a three year budget. A three year budget will allow the association to forecast NCGA’s commitments and funding needs. It will also assist the states in knowing what the longer‑term funding needs are for a specific program

• Cash reserves shall remain sufficient to cover current obligations (deferred revenues) at all times

• The target for equity reserve is set equal to approximately 20% of the current budget

• Checkoff funds will not be used for lobbying or political activity expenses

COMMUNICATIONS

OverviewNCGA communications inform, educate, and promote the activities of the association, its grower leaders and teams, committees, working groups and states. The communications department promotes the priorities of the association and its member states.

ToolsCommunications utilizes a variety of tools to reach a broad array of audiences. Print, web, broadcast and electronic newsletters and emails are among the many tools utilized. Communications works closely with agriculture and mainstream media to ensure the association’s messages are delivered in a timely and effective manner and reach both internal and external audiences.

AudienceNCGA is committed to serving our members as well as the hundreds of thousands of corn growers who contribute to corn checkoff programs. We do this, in large part, by communicating our work and servicing the needs of our Core Audience. That Core Audience includes the:

• NCGA Corn Board

• NCGA Action Teams, Committees and Working Groups

• NCGA Corn Congress Delegates and Alternates

• State Checkoff Board and Staff Members

• State Association Board and Staff Members

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PlanNCGA Communications works as an extension to the action team leads to help formulate and implement programs that communicate the goals and actions of the various teams and the organization as a whole. NCGA annually develops and implements a formal Strategic Communications Plan.

ResultsNCGA is considered the authority on corn and corn grower issues in much of the mainstream media and in agricultural media. As such our grower leaders are sought out for interviews on a regular basis by print and broadcast media and our programs receive frequent mention.

MEETINGS

NCGA conducts the following meetings and events:

• Corn Congress (2)

• Corn Board Meetings (5)

• Action Team and Committee Meetings (3)

• Leadership Training (2)—Grower Services Action Team

• Advanced Leadership Training (2)—Grower Services Action Team

• Priority and Policy Conference—Association Relations Committee

• State Staff meetings (2)—State Executive Coordinating Committee

• Commodity Classic—Commodity Classic Joint Venture Committee

• Corn Utilization Technical Conference (Biannual)—Research and Business Development Action Team

• Corn Yield Contest Breakfast—Joint Sub‑committee of PSAT and GSAT

STRATEGIC PLANNING

The NCGA Strategic Plan will be an active working document that serves to give NCGA direction and strategic guidance. Direct responsibility for the strategic plan rests with the Corn Board, as is directed by the NCGA Operating Procedures. The Corn Board can and will seek additional and outside guidance and input for the strategic planning process as needed.

The Strategic Plan will be reviewed and updated by the Corn Board each year, and will be presented to the Corn Congress for ratification.

A major strategic plan review/update should take place every three to five years.

The NCGA Business Plans will flow from the Strategic Plan. They will be based on 36 months and will be updated in 12 month increments annually.

The NCGA Business Plans will be focused on accountability.

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APPENDIX

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Use Segment Current % Supply

Vision % Supply

Current Trend

Forecast Trend

Compound Average Annual Growth Rate

to Reach Vision2006 - 2015

Feed Domestic (plus DDG credit) 47% 40% Flat Slight Up .65%

Grain Exports 17 14 Slight Up Slight Up .10%

Food/Industrial-non ethanol 10 10 Flat Up 2.5%

Ethanol 15 25 Up Up 6%

NCGA Vision 2020Use Segment Trend Comparison – Current and Vision

Table 9: NCGA Vision 2020

Source: NCGA Corn Board

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History of Original Approvalsand Amendments to the Strategic Plan

HISTORY

Strategic Plan approved December 1996 by motion to accept the Strategic Plan document as presented. (Reference minutes from the December 11-13, 1996, NCGA/NCDF Board of Directors Meeting, St. Louis, MO.)

AMENDMENTS

Strategic Plan updated pending final approval and ratification, March 2003 by motion to accept the Strategic Plan, Second Edition, March 2003, as written, to include updates to the Charge & Mission Statements. (Reference minutes from the March 19-21, 2003, NCGA Corn Board Meeting, St. Louis, MO.) [For Corn Board review/approval, June 18-20, 2003.]

Strategic Plan updated pending final approval and ratification, June 2003 by motion to include additional language in Goal 1, Be Unified in Support of an Agreed National Agenda, Objectives “5. Encourage and facilitate state strategic planning,” and by motion to eliminate language in Budget Strategy “the minimum threshold is set at 10% of the current budget.”

Strategic Plan approved pending final approval and ratification, June 2003 by motion to approve the NCGA Strategic Plan. (Reference minutes from the June 18-20, 2003, NCGA Corn Board Meeting, Lansing, MI). [For Corn Congress ratification, July 14-15, 2003.]

Strategic Plan updated pending final approval and ratification, July 10, 2003, by motion to reinstate language originally eliminated in the NCGA Strategic Plan, Budget Strategy “the minimum threshold is set a 10% of the current budget. (Reference minutes from the July 10, 2003, NCGA Corn Board Conference Call).

Strategic Plan ratified July 14, 2003, by Corn Congress motion to ratify the Strategic Plan (Second Edition). Edits included the reinstatement of language to the Budget Strategy section (as shown above), and an additional bullet‑point under Assumptions About the Relevant Future Environment, D. International Markets and Trade. (Reference minutes from the July 14-15, 2003, NCGA Corn Congress Meeting).

Strategic Plan updated December 2003 to include clarifying language to the NCGA Corn Board Charge and Mission for the Grower Services Action Team.

Strategic Plan updated March 19, 2004, by motion to change the NCGA mission statement to read: “Create and increase opportunities for corn growers,” by motion to update the “specifics” section of the NCGA Corn Board Charge and Mission Statement for the Ethanol Committee, and an update to the calendar of events section.

Strategic Plan approved pending final approval and ratification, March 2004 by Corn Board motion to approve the NCGA Strategic Plan. (Reference minutes from the March 17-19, 2004 NCGA Corn Board Meeting). [For Corn Congress ratification July 13-14, 2004.]

Strategic Plan ratified July 13, 2004, by Corn Congress motion to ratify the Strategic Plan (Fourth Edition). Edits include a change to the NCGA mission statement, the Charge and Mission Statements for the Grower Services Action Team and the Ethanol Committee, and an update to the calendar of events section. (Reference minutes from the July 13-14, 2004, Corn Congress Meeting, Washington, DC).

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Strategic Plan ratified July 13, 2005, by Corn Congress motion to ratify the Strategic Plan (Fifth Edition). (Reference minutes from the July 13-14, 2005, Corn Congress Meeting, Washington, DC).

Strategic Plan approved pending final approval and ratification, January 10, 2006, by Corn Board motion to approve the Strategic Plan. (Reference minutes from the January 10-12, 2006 NCGA Corn Board Meeting.) [For Corn Congress ratification March 2006.]

Strategic Plan ratified March 2, 2006, by Corn Congress motion to ratify the Strategic Plan. (Reference minutes from the March 2 & 4, 2006, Corn Congress Meeting, Anaheim, CA).

Strategic Plan approved pending final approval and ratification, February 9, 2007, by Corn Board motion to approve the Strategic Plan. (Reference minutes from the February 9, 2007, NCGA Corn Board Conference Call.) [For Corn Congress ratification March 2007.]

Strategic Plan ratified March 1, 2007, by Corn Congress motion to ratify the Strategic Plan. (Reference minutes from the March 1 & 3, 2007, Corn Congress Meeting, Tampa, FL.)

Strategic Plan approved pending final approval and ratification, January 11, 2008, by Corn Board motion to approve the Strategic Plan (Reference minutes from the January 9-11, 2008 NCGA Corn Board Conference Call.) [For Corn Congress ratification February 2008.]

Strategic Plan ratified February 28, 2008, by Corn Congress motion to ratify the Strategic Plan. (Reference minutes from the February 28 & March 1, 2008, Corn Congress Meeting, Nashville, TN.)

Strategic Plan approved pending final approval and ratification, January 16, 2009 by Corn Board motion to approve the Strategic Plan (Reference minutes from the January 14-16, 2009 NCGA Corn Board Meeting.) [For Corn Congress ratification February 2009.]

Strategic Plan ratified February 26, 2009, by Corn Congress motion to ratify the Strategic Plan. (Reference minutes from the February 26 & 28, 2009, Corn Congress Meeting, Grapevine, TX.)

Strategic Plan approved pending final approval and ratification, January 15, 2010, by Corn Board motion to approve the Strategic Plan (Reference minutes from the January 12-15, 2010 NCGA Corn Board Meeting.) [For Corn Congress ratification March 2010.]

Strategic Plan ratified March 4, 2010, by Corn Congress motion to ratify the Strategic Plan. (Reference minutes from the March 4 & 6, 2010, Corn Congress Meeting, Anaheim, CA.)

NCGA National Office632 Cepi Drive

Chesterfield, MO 63005(636) 733-9004

Fax: (636) 733-9005

NCGA Washington Office122 C Street NW

Suite 510Washington, DC 20001-2109

(202) 628-7001Fax: (202) 628-1933

Documents

NCGA Strategic Plan