Posted By Cathryn March 6, 2014
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.
Posted By Cindy March 4, 2014
The 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.
The 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
Posted By Cindy March 4, 2014
As 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
Posted By Cindy March 1, 2014
The man directly responsible for the EPA proposal to lower the 2014 volume obligations under the Renewable Fuel Standard (RFS) last week addressed members of the ethanol industry directly impacted by that plan.
“I really wanted to provide you with some context and what our thinking was behind our 2014 RVO proposal,” said Chris Grundler, EPA Director of the Office of Transportation and Air Quality for the U.S. Environmental Protection Agency speaking at the National Ethanol Conference. “And it is a proposal,” he stressed several times.
First off, Grundler wanted to make it clear that EPA does support biofuels. “The most disappointing thing I heard in the reporting is that EPA no longer supports the development of biofuels, and I’m hear to tell you that’s wrong,” he said. “We know that if we’re going to achieve what science is telling us we must achieve in terms of greenhouse gas reduction … biofuels has got to be part of that solution set.”
Gundler says they came up with the proposal to address marketplace realities for biofuels. “Our overriding goal with this 2014 RVO proposal is to put the RFS in what we call a manageable trajectory while continuing to support the growth of renewable fuels in our transportation supply,” he said. “We have to address some of the practical realities that we see today in the marketplace.” Comments by Chris Grundler, EPA at National Ethanol Conference
During a brief press availability after his remarks, Grundler defined manageable trajectory as “steady growth in overall biofuels space … where the market is able to move those fuels and people use them.”
Grundler also said specifically that the EPA can definitely change the proposal Grundler stressed that the proposal is just that and it could be changed. He also noted that EPA received over 100,000 written comments during the comment period with 6,000 “unique” comments, and that the hearing held in early December was a record. He added that they do intend to try and meet the goal of finalizing the rule by the end of spring. Press Avail Chris Grundler, EPA
Posted By Cindy February 19, 2014
Now that the farm bill is a done deal, National Corn Growers Association Public Policy Vice President Jon Doggett says his organization has three main priorities for this year in Washington – protect the RFS, and protect the RFS, and protect the RFS.
That may seem redundant, but that’s just how important the Renewable Fuel Standard is for corn growers.
Doggett sat on a panel with one of his best lobbyist friends at the National Ethanol Conference this week – Bob Greco of the American Petroleum Institute.
Well, maybe not BEST friends, but Jon says they are friends, although they do disagree on important issues, like the Renewable Fuel Standard (RFS). “I like Bob Greco, I have friends at API, but if any person in this room doesn’t think that they will leap at the chance to get rid of the RFS between now and the election or during the lame duck session – you’re crazy!” said Jon during the panel session, warning the ethanol industry sternly, “Don’t be complacent.”
Besides Greco, Jon shared the annual Washington Insiders panel at NEC with Aaron Whitesel of DuPont, Kris Kiser with the Outdoor Power Equipment Institute, and Shane Karr from the Alliance of Automobile Manufacturers.
Listen to the whole conversation between them, moderated by Renewable Fuels Association president Bob Dinneen: NEC Washington Insiders Panel
Listen to my interview with Jon from the NEC where he talks about the importance of the RFS, next week’s Commodity Classic, and what NCGA likes best about the new farm bill: Interview with Jon Doggett, NCGA
2014 National Ethanol Conference Photo Album
Posted By Cindy February 10, 2014
U.S. exports of the ethanol co-product distillers grains set a new record last year with China continuing to lead the demand.
According to the latest government statistics, exports of distillers dried grains with solubles (DDGS) totaled a record 9.7 million metric tons (mmt) last year, up 31% from 2012 and well above the previous record of 9.0 mmt set in 2010. China was responsible for nearly half of the total – 46%, with Mexico and Canada a distant second and third.
Credit for driving the demand for DDGS exports can be given to the U.S. Grains Council and the Renewable Fuels Association, which sponsor the Export Exchange every two years to bring buyers and sellers of coarse grains and ethanol co-products together. The event this year will be held October 20-22 in Seattle.
Meanwhile, U.S. exports of ethanol were down a bit from the previous year, but at 621.5 million that’s still the third-highest annual total on record. Canada was by far the leading export market for the year, receiving 52% of the total. The Philippines ranked second, followed by Brazil, the United Arab Emirates, and Mexico. Meanwhile, U.S. ethanol imports were down 27% from 2012, making the United States a net exporter of 226.3 mg in 2013, roughly a 24% increase over 2012 net exports.
Exports of both DDGS and ethanol from the United States are expected to continue to increase to meet demand, which could make up the difference if the EPA follows through on its proposal to lower the RFS.
Posted By Mark February 7, 2014
It’s tax time again. You know that short window during the year when it’s ok to complain about being taxed. Given the number of people who remain unemployed it really is kind of bad form to complain the rest of the year.
So as you belly up to do your part to keep the skids of government greased here is a whopper of a tax tale to help you really get the bile out and make your complaining count. I am guessing that it will come as no shock to you that each year the average American pays more than 20 percent of their income in federal taxes. This does not include state and local taxes.
So this begs the question; shouldn’t an industry that makes $175,000 per minute pay at least that much? This is a real number reflecting the profits of the five largest oil companies. Together they earn more in one minute than 95 percent of Americans earn in a year.
However, Reuters news service estimates that Chevron, ConocoPhillips, and ExxonMobil pays effective federal tax rates of 19 percent, 18 percent, and 13 percent, respectively. Reuters noted that this is “a far cry from the 35 percent top corporate tax rate.” Likewise the tax bracket for the most successful Americans is 35%.
The petrol industry has prospered over the past decade, thanks to high oil and gasoline prices. The five largest companies — BP, Chevron, ConocoPhillips, ExxonMobil, and Shell — earned more than $1 trillion during this time. In the first nine months of 2013, these five companies realized a combined $71 billion in profits. Certainly, these companies can prosper without $2.4 billion in annual special tax breaks.
The Congressional Joint Committee on Taxation estimated that three tax preferences provide $24 billion per decade in annual benefits to these five companies. The “limitation on Section 199 deduction,” designed to encourage domestic manufacturing to remain on shore, costs the Treasury $14.4 billion per decade for these five companies. The foreign tax credit deduction saves the big three domestic oil companies $7.5 billion per decade. The “intangible drilling costs” deduction saved the five companies another $2 billion, according to the Wall Street Journal.
It also seems the oil and gas industry has been the largest beneficiary of federal financial support in the entire energy sector benefitting from nearly 60 percent of all federal energy support since 1950. Shouldn’t the lion’s share of these dollars be spent on new, alternative, renewable sources to make us less dependent on something as finite and as devastating to the environment as oil?
Big Oil will argue that these breaks are critical to job creation, but recent data from the Bureau of Labor Statistics shows oil industry employment is off 10 percent. This is not nearly as bleak as it sounds given that nearly half of the direct jobs touted by big oil are service station positions.
Simply put, it’s time to end special tax breaks for BP, Chevron, ConocoPhillips, ExxonMobil, and Shell.
Posted By Cindy January 24, 2014
The turnout was huge in Des Moines Thursday for a “Hearing in the Heartland” to support the Renewable Fuel Standard (RFS).
The event was hosted by Iowa Governor Terry Branstad and included comments from dozens of lawmakers, government officials, farmers, biofuel producers, and other interested parties from seven states – as well as a crowd of hundreds.
“I urge President Obama, Administrator McCarthy and the EPA to listen to the people of Iowa and the Midwest, and continue to support a robust and strong Renewable Fuel Standard — as they have in the past,” said Branstad. Governor Brandstad comments
Among the speakers at the event were Congressmen Tom Latham and Steve King, both Republicans from Iowa who signed a letter this week from U.S. House representatives asking the EPA to revise its proposal for 2014 biofuel volume obligations under the RFS. “It’s good for the environment, it’s good for the economy, it’s 45,000 jobs,” said King. “The RFS is market access, market access, market access – that’s all it is.” Rep. King comments
Rep. Latham urged those present at the hearing to comment on the proposal if they have not done so already. “It’s up to those of you who are most dramatically and directly impacted by this fundamental shift in policy against biofuel to tell your stories and make your views heard,” said Latham. Rep. Latham comments
The comment period on the EPA proposal to lower volume requirements for biofuels under the renewable fuel standard is just days away now and it appears evident that they are being deluged with comments opposing the plan. Nebraska Corn Board executive director Don Hutchens reports that they received over 5,000 letters expressing opposition to the proposal. “This is the greatest grassroots response in the history of the corn checkoff program since its implementation in 1978,” said Hutchens. Earlier this month, the state group had sent farmers letters to the EPA that they could sign and return. These letters will be forwarded to EPA before the comment period deadline of January 28.
Imagine that! Over 5,000 letters from farmers in just ONE STATE! If you have not done so yet, please send in your comments today.
RFS: Hearing in the Heartland photo album
Posted By Cindy January 22, 2014
During the American Farm Bureau Federation (AFBF) annual meeting this week in San Antonio, delegates voted to reaffirm support for the renewable fuels standard and approved a policy “supporting renewable fuels tax incentives for the production of biodiesel and cellulosic ethanol and installation of blender pumps.”
New Illinois Farm Bureau President Richard Guebert says maintaining a strong RFS for ethanol and biodiesel production remains the top priority for farmers in his state and the region.
“Midwest farmers have worked so hard and so long to get those standards where they are today,” he said. “It’s just difficult for us to understand why we’re being forced to rollback those standards.” He says he can’t understand how the EPA could propose a policy that most experts agree will hurt biofuel producers and markets, especially in the rural economy, considering how the president has repeated his dedication to green energy, including biofuels, time and time again.
Listen to an interview with Richard here: Interview with Illinois Farm Bureau President Richard Guebert
Just a reminder, if you have not yet submitted comments to the EPA regarding the proposal to scale back volume requirements under the RFS, you have until January 28 to do so. Shout it out and make your voices heard!!!
Posted By Mark January 17, 2014
A true David and Goliath battle is under way between the nation’s family farmers and Big Oil in the form of the American Petroleum Institute (API). And farmers in recent weeks bounced a big rock off the head of the petroleum behemoth. At issue is American ethanol.
For months the oil industry has been involved in a well-funded campaign of both public and covert efforts to undermine the growing role of sustainable biofuel like ethanol. They capped this massive misinformation campaign by leaning on the White House and EPA to propose a change to the Renewable Fuels Standard (RFS) that would reduce ethanol use by 1.4 billion gallons this year.
The bad news is the most recent slap in the face, if successful, has the potential to hammer farmers and the rural economy to the tune of more than 10 billion dollars.
Before this recommendation can be accepted EPA’s proposal must go through a formal public comment period. Thousands of corn farmers across the country have responded with a vengeance submitting comments urging the U.S. Environmental Protection Agency to retract its proposed 10 percent cut in the amount of corn ethanol in the 2014 Renewable Fuel Standard.
The volume of supportive comments coming from farmers as well as equipment dealers, bankers, school administrators and consumers who favor a fuel choice has been incredible so thanks to everyone who has taken the time to register your opinion.
The response has been so terrific that it tweaked API and in response they have launched yet another effort to remove any competition from the fuel marketplace. It takes the form of an annoying and deceptive “robo-call.”
On the pre-recorded action request API refers to those supporting ethanol as both a “special interest group” and as “extremists.” Since most those making the calls are farmers, I guess that means you. They also use the same old hackneyed and debunked arguments saying ethanol leads to higher food prices and damages car engines.
If being called an extremist makes you a little angry fight back. If having one of the world’s most prosperous industries try to increase their profits at your expense….fight back.
Corn growers: Click here to send a public comment to the EPA.
Non-farmers: Click here to customize and send a public comment to the EPA.
I wish it was a real person calling rather than some digital dweeb called Tom, because I would tell him to quit bugging hard working Americans and get back to cleaning up the their latest oil spill.
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