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CORN GROWERS REACT TO ARP ANNOUNCEMENT AND CALL FOR INCREASED MARKET SUPPORT

 WASHINGTON, Oct. 1 /PRNewswire/ -- Following USDA's announcement late yesterday of a 5 percent Acreage Reduction Program (ARP), the National Corn Growers Association (NCGA) called on the Administration to aggressively find markets for the expected corn production.
 "If we are going to grow it, we have to have a market because we don't intend to store it," said Pete Wenstrand, corn farmer from Essex, IA and president of NCGA. NCGA had called for a 7.5 percent ARP, which would allow production to meet estimated demand.
 To increase demand, NCGA specifically wants the Administration to:
 --Ensure a role for corn-based ethanol in the Reformulated Gasoline Program (RFG). NCGA estimates this home-grown alternative fuel could use 800 million bushels of corn if allowed to participate in RFG.
 --Zealously work for the ratification of the North American Free Trade Agreement (NAFTA). "Each year we see our corn market to Mexico erode. We must ratify NAFTA to secure one of our most promising markets," Wenstrand said. "Corn exports are projected to increase to 240 million bushels under NAFTA, the equivalent 1992 production of Michigan.
 --Aggressively pursue other trade opportunities. USDA recently decreased its estimated export demand for corn by 75 million bushels.
 --Support research and market development for new industrial uses for corn. Industry sources estimate with increased focus on new products by government, industrial usage could climb to 2.4 billion bushels by the year 2001.
 "Farmers cannot profitably compete at today's low corn prices and cannot afford to produce surplus corn which has a price-depressing impact," Wenstrand said.
 NCGA is a national commodity organization with more than 27,700 members in 47 states and 23 state affiliated associations.
 -0- 10/1/93
 /CONTACT: Pete Wenstrand, 712-586-4541, or Debbie Rudin, 314-275-9915, or Susan Keith, 202-546-7611, all of NCGA/


CO: National Corn Growers Association ST: District of Columbia IN: SU:

MP -- NY075 -- 7879 10/01/93 14:59 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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