Posted By Cindy February 1, 2012
It is possible for ethanol and livestock to live and work and play nicely together in the same state – and the main reason is the ethanol livestock feed co-product of distillers grains (DDGS).
A great discussion at the 6th Annual Iowa Renewable Fuels Summit featured corn and cattle organizations on the same panel talking about the “Synergies of Livestock and Ethanol.”
Moderator Iowa Agriculture Secretary Bill Northey opened the discussion by noting that sales of crops and livestock have risen as ethanol production has increased from $12 billion in 2002 – 6 billion in crop and 6 billion in livestock – to $24 billion in 2010, and 2011 is expected to be about $30 billion with at least $13 billion of that for livestock. “$13 billion on the livestock side versus $6 billion nine years ago,” Northey said. “Has ethanol been good for livestock agriculture in Iowa? I think very clearly.”
Listen to a brief interview with Secretary Northey here: Iowa Agriculture Secretary Bill Northey
The livestock industry has traditionally been the most important market for corn, noted Iowa Corn Growers CEO Craig Floss, although use for ethanol has increased significantly in the past decade. “But a third of every one of those bushels that goes into an ethanol plant goes into DDGS,” he said, noting that Iowa corn farmers will continue to meet the growing demand for all markets – feed, fuel, food and exports.
Listen to Craig’s part of the panel discussion here: Craig Floss on IRFA panel
Iowa Cattlemen’s Association Executive Director Matt Deppe says it’s easy to see the benefits that distillers grains (DDGS) have brought to especially cattle feeders. “We look at it as a corn replacement,” Deppe says about DDGS. “It means that they (feedlot operators) have another option that’s cost effective to put into their rations.”
Listen to an interview with Matt Deppe here: Matt Deppe Interview
Photos from 2012 Iowa Renewable Fuels Summit
Posted By Cindy January 12, 2012
Closing offices with no employees, consolidating cell phone plans and allowing positions to be eliminated as employees retire are some of the budget cutting plans announced for USDA this week by Agriculture Secretary Tom Vilsack during an address to the American Farm Bureau Federation.
Calling the overall plan a Blueprint for Stronger Service, Vilsack said it was born out of necessity.
“Since 2010, Congress has reduced our discretionary operating budget by more than $3 billion – a roughly 12% cut,” said Vilsack. “We understood this day of reduced budgets was coming and we have been proactive.”
Part of the plan includes closing 259 domestic offices, facilities and labs across the country, as well as seven foreign offices and consolidating over 130 county Farm Service Agency offices in 32 states. “Of the 131 offices on the list, 35 currently have no employees,” Vilsack said. “Our choice was either to maintain these offices or reduce our effort at improved technology to better serve producers and furlough workers, disrupting service to many, many people. We’ve invested millions of dollars and thousands of hours in an effort to get technology that should allow us to better serve producers with reduced staff.”
Overall, it should save about $150 million a year, which is really just a fraction of USDA’s $145 billion per year budget, but in an atmosphere of increasing spending all the time, it is at least a start.
So far, there seems to be surprisingly little grumbling out in the countryside about the office closings, although the national media has been trying hard to find people willing to complain about it. Of course there will be some people who are inconvenienced initially by the changes, but ideally using technology (internet, cell phones, etc.) will result in way better, more flexible and more efficient service in the long run.
Listen to Vilsack’s comments to AFBF annual meeting here: Ag Secretary Tom Vilsack at AFBF annual meeting
Posted By Cindy January 3, 2012
2011 was a wild year for farm market prices and ag economists generally expect that to continue into 2012.
“We had a lot of things that came together and pushed prices up for a wide variety of products the last couple of years,” said Patrick Westhoff, Director of the Food and Agricultural Policy Research Institute (FAPRI) during a visit at the St. Louis Agribusiness Club. “We expect a lot of volatility in the year ahead.”
One of the main reasons is an “ordinary garden variety one” – the weather. “People tend to forget that sometimes,” said Westhoff. On top of that, the biggest factors to consider are land markets and what Congress will decide to do with farm policy. No surprises there!
He notes that tight stocks will continue to keep corn prices particularly volatile. “Every little piece of news, either positive or negative, can make the market move around a lot,” Westhoff added.
Westhoff believes that the spending cuts presented to the “super committee” by the House and Senate agriculture leadership should help start the conversation for a new farm bill in 2012, “but it certainly won’t be the end of that conversation.”
Listen to Chuck Zimmerman’s interview with Patrick Westhoff here: Patrick Westhoff Interview
Posted By Cindy December 22, 2011
There’s a hot new craze called the “Ethanol Shuffle” sweeping seaports from Sao Paulo to Los Angeles as tankers carrying Brazilian sugarcane ethanol bound for California pass those carrying corn ethanol bound for Brazil.
Renewable Fuels Association (RFA) Vice President of Research and Analysis Geoff Cooper wrote about the “Ethanol Shuffle” last week on the RFA E-xchange Blog. Basically, we are shuffling sugarcane ethanol from Brazil to California to meet that state’s Low Carbon Fuels Standard (LCFS) – while at the same time, Brazil is importing lower priced corn ethanol from the United States to make up for not only the ethanol it is exporting to California, but the shortfall that country has experienced in ethanol production recently.
So, that’s how the “Ethanol Shuffle” works. California imports sugarcane ethanol from Brazil rather than corn ethanol from Nebraska or Kansas; and in turn, corn ethanol from the Midwest travels to Houston or Galveston via rail, then is shipped to Brazil via tanker to “backfill” the volumes they sent to the U.S. Picture the irony of a tanker full of U.S. corn ethanol bound for Brazil passing a tanker full of cane ethanol bound for Los Angeles or Miami along a Caribbean shipping route.
This is more than ironic, it’s just plain ignorant. First of all, sugarcane ethanol costs more than corn ethanol. According to Cooper, the ethanol California has been importing from Brazil has been an average of $1.56 per gallon MORE than corn ethanol from the Midwest. “As far as E10 goes, that’s about a 16 cent per gallon differential,” said Cooper.
The reason California prefers sugarcane ethanol over corn is because they claim it is better for the environment, a claim which can be disputed, depending on how the life cycle analysis is determined (see previous post). But, even if sugarcane ethanol actually does have a better carbon footprint than corn ethanol, that advantage is lost in the transportation shuffle. “If we were serving the California market with corn ethanol from Nebraska and the Brazilians were satisfying their own demands with their own fuel, the emissions related with moving that fuel are about half of what we’re seeing with this shuffling dynamic,” said Cooper.
Listen to an interview with Cooper about the Ethanol Shuffle here: Geoff Cooper on the Ethanol Shuffle
Posted By Chuck December 13, 2011
Today the St. Louis Agribusiness Club presented its annual Agribusiness Leader of the Year Award to Rick Tolman, CEO, National Corn Growers Association. Here’s Rick with his award which was presented by past St. Louis Ag Club President Stephanie Regagnon, Solutia, Inc.
I spoke with Rick right after he received his award. He says that he’s “very moved and surprised and it’s a great honor.” He also says that it’s a tribute to the National Corn Growers because I have a great group of volunteer leaders that I work with and a staff that I work with and they make me look good and make the organization look good. But it’s a real honor for our association to be recognized.”
I asked him about the 2012 Commodity Classic since registration just recently opened. He says it’s going to be a good one with a record number of exhibitors already signed up. He also talks about priorities in the coming year for NCGA.
You can listen to my interview with Rick here: Rick Tolman Interview
You can find more photos from the meeting here: St. Louis Agribusiness Club Meeting Photo Album
Posted By Cindy December 9, 2011
You can call them aerial applicators, or crop dusters, or ag aviators – or you can call them the unsung heroes of agriculture. They are the folks who sometimes risk their lives flying low to the ground to protect countless acres of our nation’s corn, soybeans, wheat, rice, cotton, sugar beets and pastures.
“Aerial application is vital to American agriculture,” says National Agricultural Aviation Association (NAAA) executive director Andrew Moore, noting that about 20 percent of all crop protection is applied by air and that is likely to continue to increase as farming operations get larger.
NAAA currently represents more than 1,500 members in 46 states, and just like the rest of agriculture, ag aviators are facing increasing regulations that threaten to ground them.
At the NAAA convention this week, one of the primary topics of discussion was the National Pollutant Discharge Elimination System (NPDES) permit program, which Moore says just went into effect on Halloween. “It’s kind of a scary regulation,” he said about the regulation which impacts pesticide application near water. “The problem is that it’s duplicative of everything that already exists to protect the environment in regard to pesticide regulation.”
Moore says the NPDES would require a great deal of paper work on the part of applicators. “FIFRA already regulates the safety of pesticides to water, so this is a completely unnecessary burdensome rule.” In addition, Andrew says they are very considered about lawsuits under the new regulation.
One thing that NAAA is urging its members to do is to contact their senators regarding pending legislation that would exempt pesticide applications over water for FIFRA approved pesticides. The measure has been passed by the House and has gone through the Senate Agriculture Committee. “We believe we have the votes in the Senate but it’s not being brought to the floor for a vote,” said Moore.
It’s important to note that this could impact all of agriculture, including both farmers and ranchers as well as the crop protection product companies, because if aerial applicators are grounded as a result of this regulation, it will hurt everyone. So, find out more and contact your Senator today.
Listen to my interview with Andrew Moore here: NAAA executive director Andrew Moore
Posted By Cindy November 22, 2011
The end of the Volumetric Ethanol Excise Tax Credit (VEETC) is coming and the ethanol industry is prepared.
“The market place has changed,” says Renewable Fuels Association president and CEO Bob Dinneen. “We’re now looking at $85-100 a barrel oil on a sustained basis so it’s difficult to go to the taxpayer and ask them to provide an incentive when the marketplace is already providing the incentive. We’re the lowest cost liquid transportation fuel in the world today.”
In addition, Dinneen says the ethanol industry itself has changed. “it’s not your father’s ethanol industry anymore. We are more efficient, we are utilizing new technology,” he said. “It’s an exciting time to be in the ethanol industry.”
However, Dinneen would like to see the oil industry sacrifice its tax incentives as well. “They are hanging on to their subsidies to their dying breath,” he said. “I hope at some point Congress takes a look at all the energy tax subsidies and decides to level the playing field.” Dinneen notes that, unlike the ethanol tax credit which is temporary, oil subsidies are imbedded in the tax code and “will go on for all eternity until somebody steps up and rips them out.”
Listen to an interview with Bob Dinneen here: RFA CEO Bob Dinneen
As the VEETC goes away, however, fuel retailers are concerned about what that means for the future of E85 so the recently-formed Coalition for E85 is working to have 85 percent ethanol designated as an alternative fuel under the tax code.
“E85 as an alternative fuel is defined everywhere in the U.S. code, except for the Internal Revenue code,” explains tax code specialist Jeff Trinca, who is working with the coalition. That was because of the VEETC, to avoid “double dipping” in tax credits. “Now VEETC’s going away and what we’re basically saying is we would like E85 to be included in the definition of alternative fuels with propane, natural gas and others so there’s a level playing field,” Trinca says, noting that the coalition is only looking for a five year bridge to get the infrastructure in to be competitive with gasoline.
Trinca says they are working on getting a bill introduced in Congress to address the issue before the end of the year.
Listen to my interview with Trinca here: Jeff Trinca, Coalition for E85
Posted By Cindy November 17, 2011
One of the busiest booths at the National Association of Farm Broadcasting Trade Talk last week was the National Corn Growers Association (NCGA), where president Garry Niemeyer of Illinois and first vice president Pam Johnson of Iowa spent the day doing interviews with broadcasters from all over the country.
Among the topics of interest were farm policy, this year’s crop, the American Ethanol partnership with NASCAR, USFRA, exports and atrazine. I hit on just about all of those subjects during my interview with Garry. Here’s some of his comments:
Farm Bill – “Passing farm bills usually takes about 15 months, and ironically, this one – if it happens – will be one of the quickest ever in history.”
Corn Crop – “All the adversity we’ve had, and here we are with the 4th largest corn crop. I’m thoroughly amazed.”
USFRA - “We’ve been laying a lot of the ground work here to get the message out to defend agriculture. We have everybody working together on the same page for the first time, telling our story.”
Trade – “These three free trade agreements give us the impetus to move forward to improve our infrastructure – locks and dams on the Mississippi and Illinois Rivers.”
American Ethanol – “We have been going back over the advertising and we’re at 71% acceptance, that’s with 75 million fans throughout the United States.”
Atrazine – “It’s been a stalwart, it works, it’s inexpensive, it keeps the price of food affordable for the American public.”
Listen to my interview with Garry here: NCGA president Garry Niemeyer
Posted By Cindy November 15, 2011
Farm broadcasters on radio and television were advocating for agriculture long before anyone ever even dreamed of inventing the word “agvocate.” Their numbers may have declined over the years, but the farm broadcast professionals who remain on the air every day talking about agriculture reach an enormous audience across the nation. They are literally on the front lines in the battle for the hearts and minds of the 98% who are not in the barns and fields providing food, fuel and fiber for the nation and the world.
At the annual meeting of the National Association of Farm Broadcasting (NAFB) last week, about 100 of the nation’s farm broadcasters were busy gathering interviews with representatives from agricultural companies and organizations that will fill the airwaves between now and Christmas, and by virtue of the medium, that information will be heard and seen by millions of non-farm listeners and viewers as well. Social media is a wonderful new tool to get up close and personal with the public, but farm broadcasters have been bringing the farm to the public since the first radio stations commenced operations in this country in 1920.
Back in the early days of radio, much of the airtime was devoted to agriculture, since a much larger percentage of the population was still directly involved in farming and ranching. Over time, that has gradually diminished to the point where even some of the most well-known powerhouses of farm radio – such as WGN in Chicago and WHO in Des Moines – have drastically cut back or even eliminated farm programming all together.
There has been renewed talk recently about the demise of local radio, with the nation’s largest radio station operator making drastic cuts in local talent on its 850 stations. This makes it more important than ever for the agriculture community – including companies, organizations and individuals – to show their support for farm broadcasting. Whether it is a local farm broadcaster or even a network, farm programming is often the target of cuts – even if it is a source of significant revenue. Still, money does talk loudest, so financial support is crucial, but taking the time to send a note or an email of thanks to your local radio station that carries farm programming could make a big difference when decisions are being made.
Don’t wait until the axe falls – send a note to the general manager of your local station today and just say thanks for keeping our advocates for agriculture on the air.
Posted By Cindy November 15, 2011
It has only been a year since the U.S. Farmers & Ranchers Alliance was officially announced, and what a year it has been for the coalition of agricultural organizations!
USFRA held its first annual meeting last week in Kansas City just prior to the NAMA Trends in Agriculture and the National Association of Farm Broadcasting annual meeting where board members like Vice Chairman Bart Schott (pictured), who is also chairman of the National Corn Growers Association (NCGA), had a chance to talk with dozens of broadcasters about the accomplishments and goals of USFRA.
NCGA CEO Rick Tolman says it’s amazing to see how much the organization has grown in the 12 short months since the first USFRA board meeting in 2010. “There were 12-15 of us sitting around the table putting this thing together and dreaming what it might be,” Rick said. Now there are more than 20 on the board and another 80 were in attendance. He says they raised over $10 million dollars in the first year and have a second year budget of $11.1 million. “So, it’s really exciting to think of where we came from and where we are in such a short period of time.”
Much of the first annual meeting dealt with plans for 2012 and you can hear all about it in this interview that Chuck Zimmerman did with Rick about the accomplishments and goals of USFRA: Rick Tolman Interview
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