Corn Commentary

The Littlest Ethanol Lobbyist

ace14-dc-ethan1Wearing a tie and sporting a “Don’t Mess with the RFS” button, 10-year-old Ethan Fagen was the youngest of the grassroots lobbyists at the recent American Coalition for Ethanol (ACE) Biofuels Beltway March on Capitol Hill.

Ethan came along with his grandfather, Ron Fagen of Fagen, Inc., and he was right in the trenches with him handing out materials and talking about the benefits of ethanol, like how good it is for the environment compared to fossil fuels. “Think in 200 years if you run ethanol there will be cleaner air for the next generation,” said Ethan, who is part of that next generation.

ace14-dc-fagensSitting in the front as the ACE Fly-in participants heard from government officials, Ethan caught the attention of Secretary of Agriculture Tom Vilsack, who thought it was “pretty cool” he was there for the event.

In my interview with Ethan, he told me that he would like to be a farmer someday and grow corn and have cattle. It’s interesting that if you add two letters to Ethan’s name, it becomes ethanol. That could be intentional, considering his grandfather is a pioneer in the ethanol industry! Interview with Ethan Fagen, ACE Fly-in Participant


2014 ACE Biofuels Beltway March photo album

Talking with Lawmakers on Capitol Hill

capitol-snowDuring National Agriculture Day and American Coalition for Ethanol Fly-in activities just two weeks ago, I was able to interview three farm-state lawmakers from the Midwest about issues important to agriculture.

All three are strong supporters for farmers and ranchers and all serve on their agriculture committees. I asked all of them about the Renewable Fuel Standard and we discussed several other issues like WRRDA, over-regulation, and rail delays.

Rep. Rodney Davis of Illinois discusses ethanol and the RFS, his experience working on the farm bill, and the water resources development bill.
Freshman Lawmaker Learns & Teaches on Farm BillInterview with Rep. Rodney Davis (R-IL)

Sen. John Thune (R-SD) talked about ethanol and the RFS, rail delays, farm bill implementation and livestock disaster aid.
Sen. Thune Talks Rail Delays and Livestock AidInterview with Senator John Thune (R-SD)

Retiring Senator Mike Johanns (R-NE) talks about the Renewable Fuel Standard (RFS), the problem farmer face with over regulation, and what his vision is for the future of agriculture.
Conversation with Sen. Mike JohannsInterview with Senator Mike Johanns (R-NE)

2014 ACE Biofuels Beltway March photo album

Energy Independence No Greased Pig Fantasy

There is an old saying…”make hay while the sun is shining.” Dating back to at least 1546 this traditional farmer logic translates into grab opportunity while you can. This has never been truer regarding the nation’s energy situation. A new report by the Energy Information Administration makes that abundantly clear. EIA says the greased pig fantasy of energy independence in the US is real.

We’ve reduced our dependence on foreign oil from 60 percent to 45 percent in the last few years. This is real, quantifiable progress brought on by smaller, high mileage vehicles, less driving due to a sagging economy, 15 billion gallons of ethanol capacity and domestic oil production on steroids.

Net oil imports to the U.S. could fall to zero by 2037 because of robust production in areas including North Dakota’s Bakken field and Texas’s Eagle Ford formation, according to this Department of Energy projection released this week.

Most days I am just numb about government studies and gasoline prices. I pull up to the pump, try to ignore the price and move on about my day. But there are other days too when I am angry about being held hostage by oil companies, and especially about their cavalier approach to crushing any real competition.

And that is exactly that they are trying to do with ethanol today.  So, here is a novel thought. Let’s take this time of energy abundance to think big and invest in a more sustainable energy future rather than waiting until the wolf is at the door. Because, rest assured petroleum remains finite and the next generation will wonder why we squandered this brief respite from oil piracy.

Oil imports have fallen to about 5 million barrels a day from a peak of almost 13 million barrels in 2006, thanks in part to advances in techniques such as hydraulic fracturing and horizontal drilling in shale rock. Despite this, we continue to spend $1 billion a day protecting our assets in foreign oil. And there is no getting around that gasoline is bad for our health and the environment.

make-hayNow would be a great time to call your Congressman and Senator and ask them to show some vision regarding biofuels and our energy future. The rapid growth in ethanol production has shown us the promise of a bio-based fuel future. It’s time to make hay!

 

 

 

Corn Farmers March for Biofuels in the Beltway

ace14-dc-alversonThere were over 25 battalions of ethanol troops on Capitol Hill last week as part of the American Coalition for Ethanol (ACE) sixth annual Biofuels Beltway March

ACE president Ron Alverson, a South Dakota farmer and board member for Dakota Ethanol, says the teams had appointments with the offices of more than 130 senators and representatives, and he thought they were well received, even in enemy territory. “We went into what we thought were going to be some pretty hard places – representatives from Alabama, Pennsylvania, Rhode Island,” he said. “They were very cordial and they listened well … we were really pleased.”

Their main weapon against ethanol foes was good information to defend against some of the more popular arguments against ethanol, such as food versus fuel and engine issues with higher blends. “We’ve got some really good arguments and good data…all we can do is go out and tell our story,” said Alverson.Interview with Ron Alverson, ACE president

ace14-dc-corn-teamOver 80 people turned out for the ACE event this year, the most ever, and the diverse group included ethanol producers, retailers, bankers, truckers, cattle ranchers, students – and a whole bunch of corn farmers. The team here consisted of (LtoR) Missouri farmer Gary Porter, Missouri Corn Growers public policy director Shane Kinne, and Minnesota farmers on the board of Chippewa Valley Ethanol Dale Tolifson and Dave Thompson.

I caught up with them as they were heading out of the Capitol after making their rounds and asked them each to give a brief impression of their visits. Interview with Biofuels March team


2014 ACE Biofuels Beltway March photo album

The Future’s so Bright…

classic14-martin-shadesMartin’s got to wear shades.

That was National Corn Growers Association president Martin Barbre looking like a rock star at the final Corn Congress session of Commodity Classic. Not by choice, he actually broke his regular glasses the night before and had to wear his prescription shades to read.

But, Martin really does think the future is bright for corn farmers and agriculture in general, especially now that we finally have a finished farm bill and NCGA has reached a new membership record of 40,287 as of the end of February.

Two initiatives Martin is especially excited about right now are the Coalition for Safe Affordable Food (CFSAF) and the Soil Health Partnership.

“There’s no doubt that GMOs have become a hot button issue in recent years,” he said of the CFSAF, which advocates a federal solution that would establish standards for the safety and labeling of food and beverage products made with genetically modified ingredients. “We’re just getting the coalition together and getting a game plan together and when we do we’ll start moving forward.”

The Soil Health Partnership has the support of Monsanto and the Walton Family Foundation and relies on a science advisory council made up of government and university experts as well as environmental groups. “These are just examples of the coalitions we’ve been able to work on.”

Martin is even optimistic about the number one policy issue facing NCGA this year – protecting the Renewable Fuel Standard (RFS). “We’re proud of the grassroots action we saw on the part of our nation’s corn farmers” to get thousands of comments in to the EPA on the proposal and thousands of calls to the White House. “We don’t know when the decision will come down or what it will be but we know we’ve done our part and we’ll continue to keep pressure on the administration.”

Martin talked about these issues and others in the following audio segments:

Interview with Martin Barbre, NCGA president
NCGA president on the Classic stage
NCGA Press Conference with Martin Barbre


2014 Commodity Classic Photos

CARB Serves Up Murky Alphabet Soup

soupThe iLUC analysis by CARB for the LCFS was based, in part, on EWG recommendations and included GTAP, AEZ-EF, and GREET models, input from EPA and USDA, consideration of RFS2, and also looked at contribution of DDGS and significance of YPE.

Watching a webcast of a California Air Resources Board (CARB) workshop this past week detailing preliminary staff results on Indirect Land Use Change (iLUC) models and analysis for the state’s Low Carbon Fuel Standard (LCFS) was sometimes like reading teen text messages. OMG, like, I was LOL and SMH at these PPL wondering WTH?

carb-14-2The 84 slide presentation of details on how CARB arrived at the values they are now proposing for corn ethanol, sugarcane ethanol, soy biodiesel, canola biodiesel and sorghum ethanol was interspersed with dozens of questions from stakeholders and scientists present or listening in on the webcast. An overriding theme of the entire four hours was “uncertainty” – which pretty well sums up the whole concept of indirect land use change. Nearly a quarter of the presentation was devoted to “Evaluation of Uncertainty” and “Why Results Vary Between Studies.” Many times points were made that there is no scientific consensus on certain values, or that some variables may not be taken into account.

I thought it was interesting and had to wonder why they decided to represent indirect Land Use Change with a little i for indirect. Maybe it’s supposed to be like iPhone or iPad. But there was even uncertainty on how to pronounce it as a word by those at the workshop – i-Luck, i-Look or i-Luke.

CARB is asking for feedback on the preliminary presentation by the end of March and plans to schedule one or two additional workshops in the coming months before completing an Independent Academic Review and presenting final report to the board in the fall. “Thank you for attending the LCFS opening ceremonies,” said CARB Transportation Fuels Branch Chief Michael Waugh at the conclusion of the workshop.

It would be funny if what CARB ultimately decides about iLUC would not have such an important impact on the use of corn ethanol in the state that uses the most motor fuel nationwide. I’m no scientist, but in IMHO, it’s just NAGI.

Smithsonian Wants Iconic Corn Ads

classic14-tolmanNational Corn Growers Association (NCGA) CEO Rick Tolman had bushels of great corn farmer news to share at the recent Commodity Classic about what the organization has done in the past year and what is happening now. We have since learned that this was the last Commodity Classic for Rick, as he has announced that he will be retiring at the end of September to enjoy more family time. He will surely be missed after 14 years of service to NCGA, but his retirement is well-deserved.

One exciting bit of news Rick announced at the NCGA banquet was that the Smithsonian Institution wants to put the Corn Farmers Coalition DC metro campaign ads in a new exhibit. “Those ads have been very iconic,” he said. “The Smithsonian Institution is doing a new exhibition called “American Enterprise” and they contacted us and said they really liked them because they’re about education, not about selling.”

cfc-20The ads have been featured in the Corn Farmers Coalition annual campaign which takes over every ad space in a single DC metro station for two weeks, a campaign that has been running for five years now.

The Smithsonian will include the ads in a new permanent exhibit scheduled to open next year in the Museum of American History. “It will last for 20 years and we anticipate about 90 million people seeing it,” Rick said.

In this interview on the final day of Classic, Rick also talks about the great corn grower response last year to commenting on the EPA proposal to gut the Renewable Fuel Standard (RFS) and how NCGA plans to keep that momentum going. Interview with Rick Tolman, NCGA CEO

Missouri to Make States with E15 Availability a Baker’s Dozen within Months

This summer, Missouri drivers could be saving money as E15 provides a new option at gas pumps across the state. This action, which would ease the pain of rising gas prices and bring money back to rural America, now awaits publication by the Missouri Department of Agriculture of the proposed rule which would provide Missouri drivers with this environmentally, economically sensible option. If the Department of Ag acts quickly, E15 could become a reality for drivers by May 30.

In a recent article by the Kansas City Star, Missouri Governor Jay Nixon, who championed the rule spoke in support of allowing Missouri drivers choices that have been approved by the U.S. Environmental Protection Agency for cars built in model year 2001 or later.

“Expanding the use of renewable fuels like E15 is a proven strategy for boosting our nation’s energy independence and bringing more dollars back to farming communities across Missouri,” Nixon said.

In addition to Nixon’s support, the Missouri Corn Growers Association has worked tirelessly to expand ethanol use in the state. MCGA’s educational efforts and ongoing support of E15 may provide a fuel option several cents a gallon cheaper than current fuel blends, resulting in an economic boon for drivers and for the many communities across the state dependent upon agriculture.

Following in the footsteps of a dozen other states, Missouri will join the movement toward increased biofuel availability. Drivers will have a choice. Pump E15 and thus pump money back into America. They can race into a future on biofuels that will help keep our air clean and our energy supply safe. Or, if they want, they can pump money back into big oil’s bloated bank accounts. Either way, at least they will have a choice.

Standing O for a Corn Industry Legend

classic14-jere-ovationThe National Corn Growers Association celebrated the long and productive career of a corn farmer, friend and industry legend last Saturday during the concluding Corn Congress at the Commodity Classic.

Jere White is retiring from the Kansas Corn Growers after leading that organization for a quarter of a century. During the Congress, he was presented with the Meritorious Service Award from NCGA and received a standing ovation from those present. Our friend had a serious motorcycle accident in September 2012, and while he has made a remarkable recovery from critical injuries, he recently decided it was time to pass the reins of the association on to someone else.

classic14-greg-jereThe new Kansas Corn CEO, pictured here with Jere, is Greg Krissek – who is both highly qualified for the job and a long-time friend. In his career, Greg has served as Assistant Secretary at the Kansas Department of Agriculture; Director of Operations at Kansas Corn and Kansas Grain Sorghum; Director of Government Affairs for ICM Inc. and, most recently was a manager at Kennedy and Coe, LLC. He has also served on many ethanol and agricultural association boards and on seven ethanol plant boards of directors.

So, Jere leaves the Kansas Corn Growers in capable hands, although he will never be replaced. Greg’s a great guy and all – but I’m pretty sure we’re never going to see him on a motorcycle, or dressed up as Dorothy from the Wizard of Oz!


2014 Commodity Classic Photos

Secretary Vilsack at Commodity Classic

classic14-vilsack-stageAs long as he has been Secretary of Agriculture, Tom Vilsack has made it a priority to address the annual Commodity Classic, so for the fifth time he took the stage last week at the event in front of a record crowd of more than 7,000.

“It is awfully nice to come here today to talk about the PASSAGE of a farm bill, as opposed the need for a farm bill,” Vilsack began, adding that people don’t thank farmers enough for the work they do, especially considering how vital they are in the food, energy and economic security America enjoys. In return, the U.S. Department of Agriculture is charged with making sure the implementation of the Farm Bill translates into hope for all farmers, old and new alike. “Our Farm Bill, which you helped pass, for me creates a hopeful set of opportunities and rewards, and will invest in innovation.”

While he did not mention the Renewable Fuel Standard (RFS) specifically during his address, Vilsack did talk about the need to increase exports of ethanol. “We think the world is ready for American biofuel,” he said. Secretary Vilsack at Commodity Classic

The Secretary did meet with farmer leaders at the Classic and discussed the pending EPA proposal to lower the RFS volume obligations this year and he was asked about his discussions with EPA Administrator Gina McCarthy during a press conference following his address. “I have focused not simply on talking to her and repeating what she’s getting from comments about people’s attitudes about this, I’m looking for ways that we can help this industry regardless of what EPA does, because I think it’s critically important,” said Vilsack.

That includes not only promoting exports of ethanol to countries such as India, China and Japan, but also finding ways to add infrastructure. “Congress sort of closed one door by saying we no longer could use the REAP program for pumping systems… but there are other rural development programs so we’ll just be creative about using the other programs until Congress decides to shut that door,” he said.

Vilsack stressed that he will continue to do everything he can to help the biofuels industry and “trust that EPA at the end of the day makes the right set of decisions.”Vilsack Classic Press Conference


2014 Commodity Classic Photos



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