Corn Commentary

Motor Club Finds No Ethanol-Related Claims

acmcAAA has been an outspoken critic of the move to 15% ethanol blended fuel but there are other motor clubs that don’t tow that line.

Gene Hammond with Association Motor Club Marketing and Travelers Motor Club, which represent 50 years in the business and over 20 million members, says they studied their claims over the past several years to see if there were any related to ethanol. “And what we discovered is that we have not had one ethanol-related claim where we’ve had to go out and tow,” said Hammond. “In fact, the opposite is true.”

Hammond explains that claims related to gasoline freeze used to be common in the northern part of the country, “but that’s gone away, we don’t have that anymore with ethanol.”

Hammond was pleased to join ethanol supporters
in Washington last week for the American Coalition for Ethanol (ACE) Fly-in to tell members of Congress and their staff his experiences with ethanol from both an automotive and a personal standpoint. “I’m from rural America and we told the story about how ethanol has really made a difference,” he said. Interview with Gene Hammond, AMCM and Travelers Motor Club

Putting Agriculture in the Political Spotlight

iowa-summitNine potential Republican presidential candidates were asked their opinions on various agricultural issues at the Iowa Ag Summit in Des Moines on Saturday.

Comments made by at the event by former Florida Gov. Jeb Bush, Texas Sen. Ted Cruz, New Jersey Gov. Chris Christie, former Arkansas Gov. Mike Huckabee, South Carolina Sen. Lindsey Graham, former New York Gov. George Pataki, former Texas Gov. Rick Perry, former Pennsylvania Sen. Rick Santorum, and Wisconsin Governor Scott Walker are still generating stories from major national news sources.

Over 270 journalists who attended the event, representing most if not all of the major news outlets nationwide, heard about some of the top issues for agriculture including trade, regulations, conservation, food safety, biotechnology, renewable fuels, and immigration as each taking candidate sat down on a stage with agribusiness entrepreneur Bruce Rastetter for about 20 minutes.

The main focus of the event was to get the potential candidates to take a stand on the Renewable Fuel Standard (RFS). Six of the nine expressed at least conditional support, including Wisconsin Governor Walker who recently had been criticized by biofuel producers in his state for not taking a stand on the law. Three of the candidates – Cruz, Pataki, and Perry – came out firmly against the RFS, while at the same time saying they supported ethanol and other renewable fuels.

couser-cruzThe summit was organized with the support of America’s Renewable Future, a quasi-political campaign for the RFS introduced earlier this year. Co-chair Bill Couser, pictured here with Sen. Cruz, says their goal is to educate potential presidential candidates.

“Show them why we do this, how we do this, and say what do you think?” said Couser, an Iowa cattle producer and ethanol advocate. “I can say, let’s go look at a corn field, let’s go look at a feedlot, let’s go look at some windmills, let’s go look at Lincolnway Energy, and then let’s go to the DuPont plant right next door and I’ll show you what we’re doing with the whole plant and being sustainable.”

Couser says they plan to approach all potential presidential candidates individually and invite them to visit and learn more about agriculture and renewable energy, including Hillary Clinton. “Wouldn’t that be something if she showed up?” he said.

Listen to my interview with Bill at the recent National Ethanol Conference here: Interview with Bill Couser, America's Renewable Future Co-Chair

Leno Anti-Ethanol Rant Smells Like BO

leno-e85-corvetteThis picture from an April 2008 Popular Mechanics article written by former Tonight Show host Jay Leno shows him with a 2006 Corvette Z06 that he said “has a top speed of 208 mph and runs on a homegrown alternative to gasoline – cleaner burning E85 ethanol.”

In this interview with DomesticFuel in 2007, Leno talks about biodiesel specifically but all renewable fuels in general about being good for America and agriculture. “We try to support companies that make products here in America,” he said. “To me, it’s a great thing to see people no longer losing their farms because they can’t make a crop that’s viable anymore …you support the farmers, they watch my TV show, I buy their products.” 2007 Interview with Jay Leno on Renewable Fuels

Leno is a car enthusiast who has always supported renewable fuels, so his full-out attack monologue on ethanol this week in AutoWeek has to leave one wondering what inspired him to write it, since it has the distinctive smell of B.O. – that would be Big Oil.

Leno’s attack is not only blatantly false, but mean-spirited.

I just don’t see the need for ethanol. I understand the theory—these giant agri-business companies can process corn, add the resulting blend to gasoline and we’ll be using and importing less gasoline. But they say this diversion of the corn supply is negatively affecting food prices, and the ethanol-spiked gas we’re forced to buy is really awful.

The big growers of corn have sold us a bill of goods. Some people are making a lot of money because of ethanol. But as they divert production from food to fuel, food prices inevitably will rise. Now, if you don’t mind paying $10 for a tortilla …

Say it ain’t so, Leno. You seem like a basically nice guy we wouldn’t normally think would stoop to criticizing farmers. So, what gives?

Since the thrust of the article is contacting Congress to reform or eliminate the Renewable Fuel Standard, it’s a good guess that there is some big money behind it.

Syndicated car show host and technician Bobby Likis also thinks Leno’s article seems uncharacteristic. “I cannot believe “what Jay said” is “what Jay really believes.” His words smack of otherwise invested horse-whisperers who use personal agendas to sway vulnerable-for-whatever-reason people towards their way,” says Likis in an editorial for the E-xchange Blog refuting all of Leno’s claims.

I love the title to Bobby’s counter article. With Leno’s article titled “Can’t we Just Get Rid of Ethanol,” Bobby responded, “Can’t We Just Get Rid of Ethanol Ignorance?” Can’t we?

#Classic15 Memorable Moments

classic15-knife-cuttingRibbon Cutting by Pocket Knife

The Commodity Classic trade show ribbon cutters were having a hard time with some dull scissors so it came down to a pocketknife to start the show. Good reason to pack it in your suitcase or drive to an event – you never know when that pocketknife can come in handy!

Record Crowd

Once again, Commodity Classic set new records for both the trade show and attendance. The trade show featured 355 booths and attendance broke the record on the first day with 7759 registered and more expected in the final numbers.

classic15-recordSecretary Makes 6th Classic Appearance

Agriculture Secretary Tom Vilsack has now attended more than one quarter of the 20 Commodity Classics, with his sixth appearance last week. Vilsack said he felt “in the presence of greatness” at the event, and spent much of his address talking about the importance of Trade Promotion Authority for the president in achieving new trade agreements. Vilsack Addresses Commodity Classic

classic15-vilsack-tradeVilsack Visits Trade Show

After spending the whole morning visiting with farmer leaders, addressing attendees, and meeting the press, Secretary Vilsack took a quick stroll through part of the Commodity Classic trade show before heading out. He visited each of the commodity organization booths, all of the USDA booths, and a few others along the way, like the Renewable Fuels Association.

2015 Commodity Classic Photo Album

EPA Official Apologizes to Ethanol Industry

nec15-grundlerLast year at the National Ethanol Conference in Orlando, EPA’s Director of the Office of Transportation and Air Quality told the ethanol industry that the agency intended to finalize the volume requirements for the Renewable Fuel Standard (RFS) by the end of spring 2014.

As everyone knows that never happened and at the 2015 National Ethanol Conference in Dallas last week, EPA’s Chris Grundler began his remarks to the industry with an apology. “I wanted to come to Texas and personally tell you all how sorry I am that we did not get our work done,” he said. “We did not finalize a standard in 2014 that I promised we would when I appeared before all of you in Orlando.”

Gundler offered no excuses but pledged to get the RFS back on track with a three year standard for 2014, 2015 and 2016 that they hope to have done by the end of this spring. “Obviously implementing the RFS has been very challenging for us,” he said, noting that finalizing annual rules has been a “tall order.”

Listen to all of Grundler’s remarks here: EPA's Chris Grundler at NEC 15

Grundler was the first person on the NEC program last week, following the traditional “State of the Industry” speech by Renewable Fuels Association (RFA) president Bob Dinneen, who criticized EPA on several issues, including holding back expansion of 15% ethanol fuel (E15).

“E15 will never realize its full potential until there is parity with regard to EPA volatility regulations for E10 and E15,” said Dinneen in his State of the Industry speech at the 20th annual ethanol conference. “To date, the Agency has rejected our efforts to secure parity, thereby ensuring that E15 is at best a seasonal fuel, a huge disincentive for marketers to adopt E15 at their stations.”

In an interview following his remarks, Grundler said, “That’s one of the areas that Bob and I have vigorous debates on, because I’m questioning how big a factor that is in terms of the slow uptake in E15.”

Grundler said parity is not an issue in regions where reformulated gasoline is required. “That accounts for between 30 and 40 percent of our fuel supply …. including places like Chicago,” he said, adding that governors have the ability to petition EPA to remove this one pound RVP waiver for their states but they “have received no such petitions.”

Listen to Grundler’s answers to my questions here: EPA's Chris Grundler press questions

2015 National Ethanol Conference Photo Album

NASCAR Starts Fifth Year on E15

american-ethanol-fuelFuel with 15 percent ethanol, known as E15, has been approved for sale by the Environmental Protection Agency since January 2011. Two months later Sunoco Green E15 debuted at the 2011 Daytona 500.

American Ethanol
celebrated the start of the fifth year of its partnership with NASCAR at the Great American Race this weekend. “They’ve put over six million hard-earned miles at high RPMs on these race cars,” said Tom Buis of Growth Energy at the race on Sunday. “They got better performance, they didn’t lose mileage and they haven’t had a single problem.”

Interview with Tom Buis, Growth Energy, at Daytona 500

NASCAR Chief Operating Officer Brent Dewar says the partnership with American Ethanol has been very positive for them. “What we love about ethanol is not only is it a great renewable but it’s a great racing fuel, higher octane so it’s great performance for the drivers,” he said. “It’s also great for the environment, reduces greenhouse gases, homemade here in America …. it’s a win-win-win and in car races we’re all about winning!”

Interview with Brent Dewar, NASCAR, at Daytona 500

Growth Energy, the National Corn Growers Association, New Holland and POET-DSM are partners in American Ethanol with NASCAR.

nh-daytona-dillonAmerican Ethanol NASCAR driver Austin Dillon says he really supports the efforts American Ethanol and is proud to be part of it. “It’s funny that you wouldn’t think NASCAR would be a “green” sport” but what we’ve done with American Ethanol has helped us be the leader in sports with green American Ethanol,” said Dillon.

Dillon drove the number 33 car in the Xfinity Series Alert Today Florida 300 race at Daytona Speedway on Saturday and the #3 car in the Daytona 500 race for Richard Childress Racing.

Interview with NASCAR driver Austin Dillon

Soil Health Hinges on Farmers

The first year of the Soil Health Partnership (SHP), introduced at the 2014 Commodity Classic, enrolled 20 farmers in six states to be demonstration sites for the effort and by the end of five years they expect to have 100. These farmers have agreed to basically be the “guinea pigs” to help other farmers learn from their experiments and innovations.

shps15-smithOne of those farmers is Tim Smith of Iowa who was one of the demonstration farmers on a panel at the Soil Health Summit in St. Louis last week. “I can see the soil conservation benefits and I can see the nutrient reduction benefits, but I think the soil health benefits are what’s going to help sell it to other farmers,” said Smith. His conservation efforts earned him the first National Corn Growers Association Good Steward award presented at last year’s Commodity Classic.

Smith believes that improving soil health is critical and just the right thing to do. “In the last 150 our average top soil (in Iowa) has gone from 14 inches down to eight inches,” he said. “We can’t continue that because it will run out if we don’t start taking care of it … any soil loss is not tolerable.” Listen to my interview with Tim here: Interview with Tim Smith, SHP farmer from Iowa

shps15-ncga-rossThe National Corn Growers Association is the administrator for the Soil Health Partnership and Corn Board member Kevin Ross believes it’s a very worthwhile initiative for farmers and all involved.

“I’m really pleased with the direction it’s heading,” said Ross during the summit last week. “It’s really good to see these groups on the same page with a common goal and that’s soil health.”

Ross, who is a farmer from Minden, Iowa, says he thinks of soil as a living, breathing thing that needs care to maintain and improve its health. “It’s just like your personal health, you have to manage it and correct things if there’s an issue,” he said. Interview with Iowa corn grower Kevin Ross, NCGA Corn Board


2015 Soil Health Summit Photo Album

First Soil Health Partnership Summit Held

shps15-welcomeThe Soil Health Partnership (SHP) was officially launched at last year’s Commodity Classic so it will just be one year old in another month. But Nick Goeser with the National Corn Growers Association (NCGA) says the concept had a relatively long gestation period.

“The idea for the Soil Health Partnership started in 2011, so within three years we came to the point where we could launch it and it’s been great,” Goeser said during the first Soil Health Summit in St. Louis on Thursday which included farmers, agronomists, and organizations involved in the effort.

shps15-goeserThe farmers at the summit are among the 20 in six states that have made a five year commitment to the project. “The farmers are early adopters and innovators in the area of conservation management,” Goeser explained. “They agree to enroll a 20 to 80 acre field on their farm and allow us to collect soil samples to update our recommendations to farmers.” In addition, the demonstration farmers agree to host field days as part of the project.

NCGA is the administrating organization in the SHP, which was set up with funding from Monsanto and The Walton Foundation, but in the last year the partnership received a Conservation Innovation Grant from USDA-NRCS that has provided additional funds.

Listen to Nick explain more about the SHP in this interview: Interview with Nick Goeser, NCGA Soil Health and Sustainability Manager


2015 Soil Health Summit Photo Album

Ups and Downs, Highs and Lows

Corn growers have seen some pretty good prices over the past several years, but the downward trend this past year for a record crop is expected to be the norm for the next several, according to Patrick Westhoff, director of the Food and Agricultural Policy Research Institute (FAPRI).

afbf15-westhoffSpeaking at the American Farm Bureau meeting last week, Westhoff said that due to corn prices dropping to levels not seen in years, farmers will plant less corn in the next two years. More than 90 million acres were planted in 2014 and he expects less that 88 million acres will be planted this year. While Westhoff expects average corn prices to remain low by 2007-2012 standards, “but still well above the level we saw before 2007.”

The demand picture for corn is high on the livestock side, but low on the ethanol side. “We have global demand growth in the animal sectors, here and around the world,” said Westhoff. “But perhaps weaker growth, if any at all, in biofuels – depending on policy, oil prices and a lot of other things we can’t possibly know.”

On the export side, Westhoff says there is a lot more competition. “The high prices of the last several years kicked off lots of supply from Ukraine to Argentina and that’s not all going to go away over night,” he said. And while China is a huge source of demand growth, Westhoff says “the good news is it’s growth, but the bad news is it’s not as fast as it has been. They’re looking at 6.5 percent growth next year.”

Westhoff concludes that the ups and the downs are always dependent on factors beyond our control. “As always, weather, oil prices and other factors will drive annual swings in prices.”

Listen to Dr. Westhoff’s comments here: Presentation on crop outlook by Dr. Pat Westhoff, FAPRI

Ag Secretary Stresses Biofuels Support at AFBF

afbf15-vilsack-stallmanFarmers from around the country had a chance to ask Agriculture Secretary Tom Vilsack questions during an informal town hall-style meeting at the American Farm Bureau convention this week in San Diego.

The last question he took was from a South Dakota farmer who asked about continuation of strong biofuels policy in the United States. Vilsack detailed his continued support for the industry, particularly in the area of exports. “I am a firm believer in the future of the biofuels industry,” he said. “Ethanol production is at record levels…we’re now beginning to see great interest in the export market, not just for ethanol but also for dried distillers grains.”

Vilsack also noted the need to update the research on ethanol when it comes to indirect land use. “A lot of the push back to the industry is based on studies that took place 15 years ago, 10 years ago, and there have been enormous increases in productivity of American farmers, that basically suggest the indirect land use calculations are not as accurate as they need to be,” he said.

Listen to the secretary’s comments on biofuels here: Secretary Vilsack at AFBF on biofuels


2015 AFBF Convention photo album



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