The Renewable Fuels Association last week released the results of an economic analysis conducted by John Urbanchuk of LECG, LLC, a global expert services consulting firm. The report focused on the impact of the U.S. ethanol industry in 2007.
The analysis determined that the “increase in economic activity resulting from ongoing production and construction of new capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 jobs in America’s manufacturing sector — American jobs making ethanol from grain produced by American farmers.” The goods and services required to produce the estimated 6.5 billion gallons in 2007 added $47.6 billion to the Gross Domestic Product and raised household incomes by $12.3 billion.
NCGA President Ron Litterer got to share the stage with his counterparts in soybeans and wheat at the Commodity Classic in Nashville. They’re pictured as follows: John Hoffman, American Soybean Association, Ron Litterer, NCGA and John Thaemert, National Association of Wheat Growers.
The three took part in an annual discussion led by this year’s moderator John Phipps, U.S. Farm Report.
John starts out wondering how in the world these three guys got so lucky as to be President this year when we’ve got such fantastic market prices. It’s a lively discussion which I hope you’ll enjoy.
New Secretary of Agriculture Ed Schafer made his first appearance before corn, soybean and wheat growers at Commodity Classic on Friday.
Schafer talked about the farm bill of course and expressed optimism that we’re getting closer to an agreement. We can only hope!
You can listen to Secretary Schafer’s speech here:
USDA released a document (Word doc) “developed from Administration analysis of impacts to current USDA programs – in the absence of enactment of a new farm bill or an extension of the 2002 farm bill past March 15, 2008.”
Before attending Commodity Classic in Nashville, NCGA’s CEO Rick Tolman spoke to the National Ethanol Conference in Orlando, FL. Like many of the speakers he dealt with the irresponsible reporting in the media about ethanol head on with plenty of facts and figures. In fact, I think Rick gave the most comprehensive look at the reality of this segment of the biofuels industry in terms that even a slow witted journalist can understand.
You can listen to Rick’s speech here:
Rick used some great graphics to help make his points.
I really liked this one showing how far we’ve come in this country at increasing the number of bushels grown per acre. It shows that in 1944 we got 2.8 billion bushels of corn off of 85 million acres while just last year we got 13.1 billion bushels off the same number of acres. His point being that we’re getting more efficient in corn production. He also pointed out that companies like Monsanto are projecting that we’ll double the number of bushels harvested per acre in the near future as technology continues to develop. At the same time the amount of inputs like chemicals and fertilizer is decreasing.
I especially love his analysis of water use for growing corn. It’s too bad that when people try to use that topic as a negative they neglect to mention that the majority of it is rain that falls on the ground regardless of what’s being grown on it. I’ve heard Rick speak many times and I think this is one of the best presentations I’ve heard him give. It’s worth a listen which is why I have it recorded for you
This week I paid a visit to the world headquarters of the National Corn Growers Association to meet with Mimi Ricketts and newcomer Jennifer Crichton. I got to see Rick’s new ride in person and took my own picture.
While I was there I recorded a short discussion with them about the whole Corn Commentary project. I think you’ll find it especially interesting in you work in communications at a company or other ag organization. For example, we talked about why Corn Commentary was created and if it’s accomplishing the objective. As Mimi says, it has allowed NCGA to write about some topics that wouldn’t fit on the NCGA.com website.
Another great feature is commenting. Many people have left comments here. That really helps make this an interactive website and that’s the intent.
If you’d like to hear our conversation, feel free:
When President Bush signed the Energy Bill last week, he noted that it will take the biofuels industry beyond corn.
New technologies will bring about a new era of energy. So I appreciate the fact that Congress, in the omnibus spending bill that I’m going to sign later on, recognizes that new technologies will help usher in a better quality of life for our citizens. And so we’re going to spend money on new research for alternative feedstocks for ethanol. I mean, we understand the hog growers are getting nervous because the price of corn is up. But we also believe strongly that research will enable us to use wood chips and switchgrass and biomass to be able to develop the ethanol necessary to help us realize the vision outlined in this bill.
Read the president’s full remarks during the bill signing here.
Members of Congress and representatives from a variety of organizations held a media event Wednesday morning in support of an increased Renewable Fuels Standard (RFS) in the Energy Bill.
House Ag Committee Chairman Collin Peterson (D-MN) says House Speaker Nancy Pelosi (D-CA) is in full support of the RFS.
“The speaker understands that this is critical for this industry,” Peterson said. “She gets it and she understands what the problem is and she understands why this needs to be done.”
Congressman Eliot Engel (D-NY) described his conversion to being an ethanol supporter. “As a member of the Energy and Commerce Committee for many years I voted against the ethanol mandate,” Engel said. “I changed my position 180 degrees, and I changed my position because it’s good for America.”
All of the speakers noted the importance of the RFS to cellulosic ethanol development, which is still in its infancy. In the meantime, Congresswoman Stephanie Herseth Sandlin (D-SD) said, “Conventional corn ethanol is the bridge we need to move forward.”
It was a long press conference, which got underway late, and the lawmakers had to leave by the time the supporting organizations got to give their statements. National Corn Growers Association President Ken McCauley “batted cleanup” and wrapped up the event.
“We looked into our crystal ball and actually saw that we could do 15 billion gallons of ethanol from corn and still have enough left to provide food, feed, fuel and exports to feed the rest of the world,” McCauley said.
At last week’s National Association of Farm Broadcasting convention, NCGA President Ron Litterer did a number of interviews including one with me about the farm bill.
In the picture Ron’s being interviewed by one of the many farm broadcasters that came by the NCGA booth.
I asked Ron where things stand from a corn grower perspective. It was really dark in the room so I apologize for the quality of the video but it works. I’m also posting the audio of the interview separately for you.
Listen to Ron Litterer Interview here:
Ron says he feels good that the Senate ag committee has put forward a revenue based proposal but that it would have been nice to see crop insurance integration included. Ron mentions the cloture vote that failed last week so it looks like it’s time for some more debate after the holiday.
I don’t know what you think of the United Nations but I can tell you what I think of their “independent expert on the right to food” Jean Ziegler, which is not very much. The guy’s got some serious explaining to about some outrageous statements he made public. The big one is his claim that food crops for biofuels are a “crime against humanity.” Okay Bud what are you thinking? Here’s a link to the story on AP.
NCGA is rightly incensed by this and their CEO, Rick Tolman has some words on the issue.
“Genocide is crime against humanity. War crimes are a crime against humanity. Any act of persecution to a large scale of people is a crime against humanity. Finding solutions to a global energy problem while continuing to provide food to the world is not a crime against humanity,” said NCGA CEO Rick Tolman. Ziegler is calling for a five-year moratorium on biofuels production, although the price of oil is near $94 a barrel.
Tolman said if Ziegler were citing facts on biofuels and corn he would know the United States is harvesting 13.3 billion bushels of corn — more than enough to help meet the needs of global hunger, offset petroleum use, provide a nutritious feed for livestock and have more than an adequate corn supply on hand.
“It is a travesty when an official makes public statements that are so irresponsible, so inaccurate and so inappropriately damning,” he added. “The statements ‘crime against humanity’ and ‘catastrophe of the massacre (by) hunger in the world’ are not to be used lightly or in such an irresponsible manner. If this is an example of how Mr. Ziegler carries out his responsibilities, he should resign his post immediately. Hunger is not something to trifle with and those in positions of responsibility need to be accountable in their statements.”
Well said Rick. If you’d like to listen to the story in the United Nations own words then here you go:
It was an interesting debate and worth a listen. Tom held his own well and responded appropriately to the arguments, starting off with the subsidy issue. Bryce started by citing statistics about how much money was spent in corn price supports from 1995 to 2005. Tom responded by noting that price supports paid to farmers went down by $8 billion in 2006 because ethanol increased the price of corn.
Marty was a very good moderator in the debate and Bryce came off as totally supporting the oil industry, whether he would admit it or not.