Corn Commentary

Happy Anniversary to the RFS

rfs-7Friday marks the seventh anniversary of the signing into law of the Energy Independence and Security Act of 2007 (EISA) which expanded the Renewable Fuel Standard (RFS) as we know it today.

The Renewable Fuels Association (RFA) has compiled a report that examines the successful impact of the RFS over the past seven years on the economy, job creation, agriculture, the environment, fuel prices, petroleum import dependence, and food prices.

Among its findings, the report notes that “Renewable fuel production and consumption have grown dramatically. Dependence on petroleum—particularly imports—is down significantly. Greenhouse gas emissions from the transportation sector have fallen. The value of agricultural products is up appreciably. And communities across the country have benefited from the job creation, increased tax revenue, and heightened household income that stem from the construction and operation of a biorefinery.”

Renewable Fuels Association (RFA) president and CEO Bob Dinneen remembers that day seven years ago and talks about its accomplishments so far and how EPA needs to move ahead with the law as written. Ethanol Report on RFS Anniversary

Partisan Report on RFS

bpcThe Bipartisan Policy Center (BPC) appears to be a bit partisan in a new report released this week on “Options for Reforming the Renewable Fuel Standard.”

The report was produced after several meetings during the year with an advisory group that consisted of 23 members, seven of which were oil companies representatives. Only five members of the group represented agriculture (2) or biofuels (3). The rest were a mix of academia (2), big business (4) with two of those representing Toyota, environmental groups (2), and policy organizations (3).

Both of the agriculture representatives were from the National Farmers Union (NFU), president Roger Johnson and vice president of programs Chandler Goule. “It was very important that agriculture that supports the renewable fuels industry be present at the table,” said Goule, who notes that while the meetings were held in a very professional manner, “they were heavily skewed toward big oil.”

Goule says NFU has major objections to two of the policy recommendations made in the report. “The flattening of the total renewable fuel mandate at its current level going forward, but continuing to increase the three advanced categories, we have significant concerns about what that would to do ethanol and biodiesel,” he said. “Even more concerning was removing the total renewable fuel mandate and only mandating the three advanced categories. Basically what they are doing is giving in to Big Oil’s conclusion that a blend wall exists, which it does not.”

Chandler talks more about the BPC report in this interview: Interview with Chandler Goule, NFU

One Economist’s Outlook for Corn

asta-css-14-basseAgResource Company president Dan Basse giving his economic outlook for the year at the ASTA CSS 2014 and Seed Expo last week.

Basse says the protein side of the plate is doing very well right now, dairy and beef in particular, “so we call it the Year of the Cow” and while grain farmers will likely struggle for the next few years, “they’ve had a very good 5-7 years behind them.”

Basse notes that this crop year is historic in that it’s the first time we’ve seen record world production for corn, wheat and soybeans and global stocks are also record high. “It should give us pause as agricultural producers that unless we start making some cuts or unless something happens in the world climatically speaking, we’re going to keep piling on those big stocks and it’s going to create issues going forward,” he said.

With the biofuels market reaching maturity, Basse says that means more stagnant demand for corn use to make ethanol. “We have an EPA that can’t even make a decision on what the mandate should have been for 2014 and surely can’t make one for 2015,” he said. “We’ll still see corn demand for ethanol somewhere in the vicinity of five billion bushels, but there’s not that growth engine we’ve had in the last five years.”

Basse expects U.S. corn demand to remain about 13.5 billion bushels for the foreseeable future as export demand is also slowing with China producing more corn than it needs with strong incentives for farmers. “China has produced eight consecutive record corn crops … it’s swimming in corn,” he said. “So the Chinese are doing what they can to keep world corn out of the market and that’s what this GMO issue with MIR 162 is all about and it’s not likely to change anytime soon.”

So, as far as demand for corn, Basse says, “We’re really looking at the livestock sector and maybe we’ll build herds or get meat exports going.”

Lots more in this interview with Basse here – a condensed version of his one hour breakfast presentation at CSS. Interview with Dan Basse, Ag Resources


2014 ASTA CSS & Seed Expo photo album

New Study Disputes Indirect Land Use Models

CARD LogoA new analysis of real-world land use data by Iowa State University raises serious concerns about the accuracy of models used by regulatory agencies regarding “indirect land use changes” (ILUC) attributed to biofuels production.

The study, conducted by Prof. Bruce Babcock and Zabid Iqbal at ISU’s Center for Agricultural and Rural Development (CARD), examined actual observed global land use changes in the period spanning from 2004 to 2012 and was compared to predictions from the economic models used by the California Air Resources Board (CARB) and Environmental Protection Agency (EPA) to develop ILUC penalty factors for regulated biofuels. The report concluded that farmers around the world have responded to higher crop prices in the past decade by using available land resources more efficiently rather than expanding the amount of land brought into production.

“There hasn’t been much land use change in terms of converting non-agricultural land into crop land,” said Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper of the report results. “We’ve seen more double-cropping, we’ve seen triple-cropping in some parts of the world. And, very interestingly, we’ve seen an increase in the amount of planted acres that are harvested.”

Cooper says the study, which was funded in part by RFA, comes at a time when the California ARB is in the process of re-adopting its low carbon fuel standard, which includes revisiting their land use analysis. “So this paper, we hope, should inform that debate and bring some clarity and commonsense,” said Cooper. More importantly, this new analysis can provide input to states like Oregon and Washington which are currently working on developing low carbon fuel standards.

Cooper explains more in this interview: Interview with Geoff Cooper, RFA

Get Pumped!

This weekend, movie goers in select markets across the country will have a chance to find out more about America’s oil addiction and how it can be ended with cleaner, cheaper, American-made fuels as the movie PUMP hits theaters. An all-inclusive look at alternative fuels, PUMP draws consumer attention to both the problem and offers real, immediate solutions.

The documentary film aims to change attitudes about fuel forever. Narrated by Jason Bateman, PUMP tells the story of America’s addiction to oil, from its corporate conspiracy beginnings to its current monopoly today, and explains clearly how Americans can end it – and finally win real choice and competition at the pump.

To watch the PUMP trailer, click here.

The film presents the stark reality that every time consumers fill up their tank there is only one option – gasoline. Since the days of John D. Rockefeller, it has been rigged, and America has been taken for a ride.  With a stranglehold on our fuel system that is absolute, most people have no idea there are alternatives.

PUMP presents a sharply focused look at all of the domestically produced, alternative paths to a very different fuel future – where multiple fuels can be used and blended, where the oil monopoly is ended, and where our nation no longer depends on foreign oil.  PUMP concentrates on the specific pathway where ethanol, methanol, biofuels, gasoline, natural gas and electric all share the same platform at gas stations across the country, where there is choice and competition.  The solution presented is not based on unproven future technologies or wishful thinking.  PUMP presents a practical and achievable vision that could be realized in the near term – beginning now.

While the film represents many viewpoints that may not be completely in line with those advocated by groups like the National Corn Growers Association, it shines an important spotlight on the common problem all alternative fuels face. The documentary advocates for consumer choice and an end to Big Oil’s monopoly- a point which America’s farmers can certainly get behind even if they would advocate for an alternative approach.

So learn more about it. This independently-produced film has the potential to highlight an issue of vital importance to both farmers and consumers, which is certainly a step in the right direction.

Find a location playing PUMP or learn more about the movie by clicking here.

Whether Drilled Abroad or Fracked at Home, Oil Causes Problems, Okay?

Americans used to rally together around the idea of extracting our military from the Middle East by decreasing our dependence upon foreign oil. As we saw military involvement increase and climate change claims on the upswing, Congress even passed an act mandating biofuels.

Then came fracking.

Suddenly, despite the finite and insufficient increase in domestic oil production, America sunk back into the comfortable couch that is inertia. Arguing that oil can now be created within our borders, the movement toward renewable, domestic biofuels lost some steam.

Clicking on the front page of Bloomberg.com today makes one wonder why.

From stories highlighting the role oil money plays in the ascendance of ISIS to reports fracking may be harming our health, the multitude of reasons an oil-fueled, oil-rigged system harms our country seem apparent. The need for another answer does too.

The answer is actually simple. Return to the RFS. Grow our nation’s independence and health by growing our biofuels industry.

Big oil can create a barrage of bogus barricades to change. This time, let’s fight inertia. The problem will always come back, whether it be overseas or at home. Join Fuels America today and find out more about how to lead the way.

Oxygenate from Ethanol and Corn

xfxF Technologies Inc. is an advanced biofuel company that has developed a chemical process to convert corn or biomass plus alcohol (especially ethanol or methanol) into an oxygenate that can be blended with gasoline and diesel.

cutc-14-rob-randle“It’s a completely chemical process – no enzymes, no bacteria, no fermentation,” said Bob Randle of xF Technologies, who spoke at the recent Corn Utilization and Technology Conference. The end products are furoates – from either ethanol, methanol or butanol – that can then be used as oxygenates for fuel transportation to improve mileage, reduce emissions, increase lubricity, and more.

Randle says the technology offers co-location and add-on opportunities for ethanol and corn wet milling plants. “Because our primary feedstocks are corn and ethanol, or biomass and ethanol,” he said. “We can also be co-located with a cellulosic ethanol plant as well.”

Learn more in this interview: Interview with Bob Randle, xF Technologies

2014 CUTC Photo Album

HuffPost Blog Provides Clarity on Cleaner Fuels

In a media landscape that often seizes upon sensationalism, The Huffington Post took a balanced, thoughtful approach to ethanol issues today in publishing a piece written in support of E15 by researchers at Argonne National Laboratory.

The city of Chicago is considering a proposed ordinance that would require most gas stations to offer E15. The measure would help reduce greenhouse gas emissions and provide consumers a domestic, sustainable choice for fuel. In their post, the researchers provide a clear, supported argument as to why this is a step in the right direction for America.

To read the post, click here.

In offering actual information to the public, HuffPost and the scientists alike elevate the conversation. The fact that Big Oil has waged an ongoing war against biofuels for years is no secret. One invented argument after the next, the proponents of petroleum have repeatedly tried to cloud the conversation with misinformation and thus maintain a stranglehold on America’s fuel supply and Americans pocketbooks. Sadly, some of the rouses have garnered airtime and slowed the advance toward a fuel supply that offers consumers real choice.

Chicago may gain actual options. These options could both help clean the air and reduce dependence upon a finite and often foreign fuel supply. The prospects for freedom from oil’s monopoly look a bit brighter. The Drs. Michael Wang and Jennifer Dunn and The Huffington Post Blog deserve a round of applause for bringing the conversation to consumers in the clear manner worthy of such a weighty issue.

Father of Ethanol Award

ace14-merle-collinThe American Coalition for Ethanol meeting in Minneapolis last week honored Congressman Collin Peterson of Minnesota with its highest award for supporters of ethanol, the Merle Anderson Award.

Anderson, a co-founder of ACE and known to many as the “Father of Ethanol,” proudly presented the award to his congressman. “Farmers have probably tripled their net worth in the last ten years,” said Anderson, giving credit to Peterson for getting farm bills passed. “I don’t think you’d have had a farm bill the last two farm bills if you wouldn’t have had Collin Peterson.”

Merle Anderson Presents Award to Rep. Collin Peterson

Peterson helped to pass the energy bill with the Renewable Fuel Standard and remains a strong supporter of ethanol in Congress. “It’s just been a tremendous success story in agriculture because it’s changed the marketplace so farmers can get a decent price for their corn,” he said. “We do have our opponents and they are still working to undermine things,” he continued.”They want to go back to $1.85 corn and I tell them if they are successful they will rue the day because nobody can grow corn for $1.85.” Peterson says the only way farmers survived when prices were $1.85 a bushel was because of the government subsidy “and that’s gone.”

Peterson remains hopeful that the EPA will eventually come out with a better final rule on the 2014 volume obligations for the RFS. “I think the fact that they delayed this for now a third time shows they are listening,” he said. “It appears to me that they realize they made a mistake here and they’re trying to figure out how to undo it.” He thinks it could be next year before the rule is final, but “a delayed decision is better than a bad decision.”

In this interview, Peterson also comments on WOTUS, farm bill implementation, immigration, and more. Interview with Rep. Collin Peterson (D-MN) at ACE Conference

27th Annual Ethanol Conference photo album

Increasing Ethanol Yield

cutc-14-novozymesOne way enzyme technology can help ethanol plants is by yielding more ethanol per bushel of corn.

At the recent Corn Utilization and Technology Conference, Nathan Kreel with Novozymes talked about Olexa, a unique enzyme designed for oil recovery. “We developed it mainly to enhance corn oil extraction for the customer, but we are seeing there are a lot of other benefits,” he said. That includes an increase in ethanol yield, better yeast health, and more efficient fermentation.

“The most important thing is that we see back end process improvements with an average of 13% oil increase,” Kreel said. “It’s a simple drop-in product that is added right to the fermentation and you can see improvements right when it’s used.”

Learn more in this interview: Interview with Nathan Kreel, Novozymes

2014 CUTC Photo Album



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