St. Louis, Missouri
November 4, 2004
The National Corn Growers
Association (NCGA) today entered a licensing agreement with
Pioneer Hi-Bred International,
Inc., a DuPont subsidiary, that will allow NCGA to use
Pioneer's high total fermentable (HTF) near infrared (NIR) rapid
assay technology. NCGA plans to utilize the Pioneer technology
and other industry resources to conduct research that will
eventually lead to an industry-wide standard for measuring the
fermentation characteristics and ethanol yield potential of
corn.
NCGA President Leon Corzine
said a single industry standard that measures the ethanol yield
potential of corn grown from all types of seed is important to
corn growers. Therefore, NCGA is working with interested seed
companies to involve them in the development of the final
calibration product.
"We foresee a situation where
two elevators just a few miles apart might be using different
calibration systems," Corzine said. "And because of those two
different systems, the same bushel of corn receives two
different measurements. One standardized platform would be a key
step toward making the process more consistent for farmers,
while at the same time optimizing the efficiency of ethanol
plants. We see a need for uniformity in this process."
Corzine said NCGA is uniquely
situated to serve as a catalyst for establishing a standardized
calibration tool. "NCGA is in a position to help ensure growers,
ethanol producers and seed companies are all on the same page
when it comes to quantifying the ethanol yield potential of
corn," he said. "As more corn is used for ethanol each year,
this is an issue that will certainly affect corn producers in
the future, and it just makes sense that NCGA serves as the lead
entity in establishing a standard."
Under the agreement signed
today, Pioneer will provide NCGA a royalty-free license for
North America to the company's HTF calibration and related data.
NCGA will coordinate all activities related to establishing a
single grain assay standard that is accurate and fair for corn
growers and the ethanol industry. The technology, which quickly
quantifies the ethanol yield potential of corn grain in the
dry-grind process, will allow corn growers to provide grain that
could improve the efficiency of ethanol plants and also will
allow the seed industry access to a single standardized
calibration.
"We at Pioneer believe a
standard calibration will contribute to the growth of the
dry-grind ethanol industry as it moves into its next stage,"
said Pat Hilliard, account manager - ethanol industry, Pioneer.
"This industry's development holds great benefits for U.S. corn
growers by expanding the marketplace for their products. Pioneer
is very excited about working with NCGA to provide new
technology to the industry."
NCGA, which signed a letter of
intent with Pioneer in June, also will oversee relationships
with research and testing laboratories and will establish a
technical oversight committee to review all calibration
upgrades.
Once the standard calibration
product is established by NCGA and its industry partners,
dry-grind ethanol plants would be able to license it from NCGA
for measurement of grain with HTF technology. This measurement
would allow ethanol plants to source grain with a higher
potential ethanol yield, improving the efficiency and
profitability of these plants. Grain elevators would also be
able to license the calibration from NCGA, allowing the elevator
to source grain that has potential to provide improved ethanol
yield to the ethanol plants those elevators serve.
"Our intent is to improve the
profitability and efficiency of corn growers, the seed industry
and ethanol producers by accelerating the acceptance of a
standard that is accurate and fair," Corzine said. "This
initiative is a positive step forward for both U.S. corn growers
and the ethanol industry."
The National Corn Growers
Association mission is to create and increase opportunities for
corn growers. NCGA represents more than 33,000 members, 26
affiliated state corn grower organizations and hundreds of
thousands of growers who contribute to state checkoff programs. |