The world’s population will grow by 33 percent by the year 2040, but the amount of farmland to feed and fuel that growing demand won’t have to grow by that same one-third… that’s what attendees at the Farm Foundation‘s Food and Agriculture Policy Summit in Washington, D.C. heard this week from Greg Webb of Archer Daniels Midland.
Webb from Archer Daniels Midland told the group increasing efficiencies in production agriculture would help meet the growing demands while adding only a disproportional smaller amount of land to the production mix.
“Agriculture’s role is not one of conflict between food or fuel,” Webb said. “It is one that is quite compatible. Producing more food results in more fuel being produced as well.”
Webb says more efficient practices will give farmers, who are already are being pretty efficient compared to just recent history, an even greater opportunity to produce both the food and fuel the world demands, as long policies don’t get in the way.
Listen to an interview with Greg Webb by reporter John Davis with DomesticFuel:
A hearing is the place to be heard and corn growers are pleased that they at least had their input during the bankruptcy hearing this week for VeraSun, even if the outcome was not favorable.
As expected, bankruptcy law and the ruling will allow VeraSun to reject any contracts that are economically disadvantageous to VeraSun, including corn growers’ contracts.
National Corn Growers Association (NCGA) Chairman Ron Litterer of Iowa says at least they tried. “It was doubtful that we could influence the courts to require VeraSun to pay the contracted price for our corn,” Litterer said. “We believe we did influence other issues of concern to growers.”
“We will continue to advocate for the interests of all corn suppliers and play a role to help make the best of a bad situation,” said Litterer. “As providers of corn to VeraSun, corn growers want fair payment under fair terms for their corn, as well as a positive conclusion that allows VeraSun to stay viable as a long-term customer for our corn.”
NCGA will continue to monitor the VeraSun situation and keep growers informed.
The Indiana Corn Marketing Board is calling for action over the Indy Racing League decision to partner with Brazil for ethanol to fuel the Indy Car Series.
“It is unfortunate that the IRL has chosen to promote imported ethanol at a time when we, as a country, are working hard to lessen our dependence on foreign sources of energy and have an industry that has the capacity to meet all U.S. ethanol needs,” said Mike Shuter, president of the Indiana Corn Marketing Council (ICMC). “The U.S. ethanol industry and U.S. corn farmers have been strong supporters of the IRL – not only promoting the series as it moved towards ethanol but also pumping funds into it.”
Shuter added that the ICMC, which is the state’s corn checkoff organization, will continue working hard to promote domestically-made corn ethanol which supports the creation of jobs and boosts local economies.
“We encourage the citizens of Indiana to make your opinion known to the IRL if you feel this decision was a mistake and not in the best interest of our country, Indiana farmers, and the local economies that benefit from the growing ethanol industry in our state,” said Shuter.
Hoosier Ag Today did an interview with Shuter, which farm broadcaster Gary Truitt was kind enough to share with Corn Commentary.
The Indy Racing League is taking a lot of flack for signing a contract with APEX-Brasil — a trade promotion agency that will be the official ethanol supplier to the series beginning in 2009.
Last week, IRL officials met with the Iowa Corn Growers Association, Indiana Corn Marketing Council and National Corn Growers Association to discuss the arrangement. After the meeting, the IRL issued a statement explaining the deal, noting that the Brazilian Sugarcane Industry Association UNICA “will look to partner with a U.S. company to supply the IndyCar Series with American-produced corn-based ethanol.”
Terry Angstadt, president of the commercial division of the Indy Racing League, provided more explanation. “For the last three years, ethanol has been the official fuel as a result of a sponsorship agreement with the ethanol producers and EPIC, the Ethanol Promotion and Information Council,” he said. “The ethanol producers recently notified the IndyCar Series that it would not be renewing the agreement for 2009 and beyond and EPIC is ceasing operation. No one from any other part of the American-based ethanol community stepped forward with a substantial proposal.”
Now this requires a bit of explanation. First, regarding EPIC “ceasing operation.” The organization is becoming part of the new Growth Energy group announced earlier this month. Growth Energy was started by the same major players who started EPIC almost four years ago – POET, ICM and Fagan – and now they are going in a different direction with the organization.
Also, reports are that several American ethanol producers did come forward to offer their services as a supplier during last week’s meetings but IRL officials are concerned that independent American suppliers would have difficulty matching the resources of APEX-Brasil for promotion and marketing. Still, at least for 2009, the Indy Car Series will be fueled with American ethanol through the Brazilian partnership.
Webb from Archer Daniels Midland told the group increasing efficiencies in production agriculture would help meet the growing demands while adding only a disproportional smaller amount of land to the production mix.
As expected, bankruptcy law and the ruling will allow VeraSun to reject any contracts that are economically disadvantageous to VeraSun, including corn growers’ contracts.
“It is unfortunate that the IRL has chosen to promote imported ethanol at a time when we, as a country, are working hard to lessen our dependence on foreign sources of energy and have an industry that has the capacity to meet all U.S. ethanol needs,” said Mike Shuter, president of the Indiana Corn Marketing Council (ICMC). “The U.S. ethanol industry and U.S. corn farmers have been strong supporters of the IRL – not only promoting the series as it moved towards ethanol but also pumping funds into it.”
Terry Angstadt, president of the commercial division of the Indy Racing League, provided more explanation. “For the last three years, ethanol has been the official fuel as a result of a sponsorship agreement with the ethanol producers and EPIC, the Ethanol Promotion and Information Council,” he said. “The ethanol producers recently notified the IndyCar Series that it would not be renewing the agreement for 2009 and beyond and EPIC is ceasing operation. No one from any other part of the American-based ethanol community stepped forward with a substantial proposal.”