Posted By Cindy February 27, 2012
Agriculture Secretary Tom Vilsack gave a rousing show of support and gratitude for the ethanol industry at the National Ethanol Conference on Friday, thanking producers for all they do to help the nation.
“We owe ethanol producers in this country a debt of gratitude because we’re paying less at the pump because of what you do,” Vilsack said, noting that prices are about $1 less than they would be without ethanol.
Vilsack also thanked ethanol producers for providing jobs, contributing to a record trade surplus in agriculture and helping to increase net farm income. “In 2011, net farm income for the first time exceeded $100 billion,” he said. “Even adjusted for inflation, this is the best farm economy we’ve seen in four decades and one of the principal reasons is because you all have figured out this new value-added opportunity called renewable fuels.”
Vilsack said getting 15% ethanol in the marketplace will do even more for our national economy and energy security. “If we’re worried about the Straits of Hormuz, if we’re worried about Iran, one way we can be less stressed about this is getting E15 in the tanks of cars across this country,” he said.
The secretary did caution producers that they need to do all they can to protect the Renewable Fuel Standard. “Make no mistake about this. Just because it’s in the law doesn’t mean it will always be in the law.” Vilsack says the success of the ethanol industry has gotten the attention of the oil industry which is trying to modify or eliminate the RFS. “We need to make sure we maintain the Renewable Fuel Standard. It is important to the security of this country that we move toward that 36 billion gallon mark.”
Listen to or download Vilsack’s great speech here: Secretary Tom Vilsack at 2012 National Ethanol Conference
Looking forward to seeing the Secretary again later this week at the Commodity Classic in Nashville.
Posted By Cindy February 22, 2012
The 59th Speaker of the House, a farm boy from Illinois, served as one of the nation’s leaders during a pivotal time in the history of this country – smack in the middle of 9/11. It was a time that helped Denny Hastert realize the importance of national energy security.
“If we’re going to be a dynamic progressive, productive country we have to have our own source of energy at a reasonable price,” Hastert said during an appearance at a GROWMARK, FS System event in East Peoria this week. “Whether it comes from Iran or Iraq or Saudi Arabia or Nigeria or Venezuela – those are countries that we don’t necessarily have the ability to trust.”
Hastert is adamant about the importance of renewable fuels and ethanol in particular. “We need to use ethanol,” he said. “I fought for ethanol from the time that I was in Congress for 15 years and finally got through the Ways and Means Committee along with a guy named Nussle from Iowa and we got ethanol with the tax credits so it could be a viable product. If we sit back and don’t do anything about it, we’re going to lose it.”
Listen to Speaker Hastert’s comments about ethanol during his address: Speaker of the House Dennis Hastert
I also had the opportunity to interview Hastert after his address and he expanded on his comments about the importance of domestic energy production to agriculture. “I always believed that farmers were best off when they sold more than a commodity, if they could sell something that has value-added,” he said. “When you look across our corn fields in the Midwest and see one out of every four rows of corn that goes to ethanol, you know that you’re securing a price that farmers can put a crop in the field and make a living.”
That ties in with what the former speaker thinks will happen in the next farm bill. “I think you’ll see some of the subsidies that farmers have grown to rely on are going to be gone just because of the shortage in the budget,” Hastert said, noting that he has two farms himself. “What we need to do in the farm community is to make sure we keep those markets for our products that we have and can be independent of government subsidies.”
Hastert served as Speaker of the House from 1998 to 2007, the longest-serving Republican Speaker in history.
Listen to the interview here: Dennis Hastert Interview
Posted By Cindy February 9, 2012
Energy issues relating to the production of corn and soybeans are more complex than some would like to think.
That’s the basic conclusion of a recent paper issued by the Council for Agricultural Science and Technology (CAST).
“Quantifying energy issues associated with agricultural systems, even for a two-crop corn (Zea mays L.) and soybean (Glycine max [L.] Merr.) rotation, is not a simple task,” reads the abstract of the paper. “It becomes even more complicated if the goal is to include all aspects of sustainability (i.e., economic, environmental and social).”
That’s why the whole issue of lifecycle assessment and related indirect land use change is so difficult. In fact, the authors of the paper choose to say indirect land use change might be nearly impossible to evaluate with any degree of certainty, explaining that “because of the uncertainties involved, it may not be possible to reliably model the indirect effects of biofuels outside of the country in which they are produced.”
The relatively brief paper considers many key agricultural sustainability issues, including nitrogen management, economic viability, market prices and public policy. The authors ultimately make suggestions that might address some concerns, including:
- quantify real versus perceived effects of no-tillage on C sequestration and the associated GHG mitigation value;
- find ways to decrease adoption barriers for energy-conserving practices;
- develop integrated usage of renewable fuels and co-products; and
- develop consistent federal, state, and local policies for bioenergy development to provide guidance for private and public investment.
Interesting reading. The full text of www.cast-science.org”>’Energy Issues Affecting Corn/Soybean Systems: Challenges for Sustainable Production” may be downloaded free of charge on the CAST website at www.cast-science.org/publications, along with many of CAST’s other scientific publications. The paper also is available in hard copy for a shipping/handling fee.
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 26, 2012
Earlier this week, the federal district court judge who ruled California’s Low Carbon Fuel Standard (LCFS) to be unconstitutional denied a motion to continue implementation of the law.
In response, the California Air Resources Board (CARB) decided to appeal to a new court in the 9th Circuit in hopes of a different outcome.
You may remember that the district court last month ruled that the LCFS “discriminates against out-of-state corn-derived ethanol and impermissibly regulates extraterritorial conduct” and that the CARB failed to establish that there are no alternative methods to advance its goals of reducing GHG emissions to combat global warming.
To make an analogy, the California LCFS is like Iowa deciding to ban California wine because they determined through some model that it has a higher carbon footprint than wines produced in Italy or France or Spain, which are the three countries that rank higher than California in wine production. (The United States ranks fourth in terms of countries, but California produces 90% of U.S. wine)
No doubt California would be up in arms if that were to happen.
The ethanol industry has led the challenge against the California LCFS, but it has an unlikely ally in a diverse multi-state coalition that is primarily concerned with the rule’s impact on oil and gas. The Consumer Energy Alliance (CEA), a coalition of over 170 energy consumer groups and 300,000 individual members across the United States, is also one of the plaintiffs opposing the regulation.
“Not only is an LCFS unconstitutional, but it would also hurt the California economy, farmers, consumers and truckers by raising fuel prices sharply and burdening consumers,” said CEA Executive Vice President Michael Whatley. The CEA’s main concern about the California LCFS is the potential for it to be used to prevent certain sources of petroleum from being converted into fuels such as gasoline, diesel fuel, kerosene and heating oil and that it could adopted nationwide, resulting in lost jobs and declining household revenue.
“The decision by CARB to appeal the decision by the District Court is disappointing, but unfortunately not surprising. We look forward to a decision by the Ninth Circuit upholding the District Court and confirming the unconstitutional nature of California’s low carbon fuel standard,” said Whatley, urging CARB to “scrap this faulty program” instead of appealing the decision.
We concur.
Posted By Cindy January 25, 2012
I was sitting at the airport Tuesday night, waiting on a delayed flight back from the Iowa Renewable Fuels Summit in Des Moines and desperately trying to ignore the tired and whiny two-year-old at the gate, as well as the live broadcast of the State of the Union address on the TV monitor.
When President Obama mentioned clean energy, however, I started paying attention to him, in spite of the 2-year-old. “We have subsidized oil companies for a century. That’s long enough,” the president said. “It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising.”
My jaw hit the ground. It was a theme I had heard repeatedly at the summit during the day, starting with the opening address by Iowa Renewable Fuels Association (IRFA) executive director Monte Shaw. “Today the oil industry enjoys billions of dollars in tax subsidies while the renewable fuels industry has none,” said Shaw, proceeding to name off all of the subsides unique to the oil industry.
It’s a long list that requires a high-price accountant to understand – not a problem for the oil industry! Percentage depletion allowance, marginal oil well incentives, enhanced oil recovery credits, intangible drilling costs expensing, deduction for tertiary injectants, exception from passive loss limitations for oil and gas, etc. According to a DTN analysis, the total comes to about $17.9 billion a year.
All of it goes back to the inception of the tax code in 1913. What that means is simply that these subsidies, unlike the meager tax credit that helped the ethanol industry for a fraction of that time, are EMBEDDED in our tax code. They are never going to expire.
So, that begs the question of whether Congress will ever do anything to get rid of those subsidies. It will not be an easy process. But, like the president said, a century is long enough. If the ethanol industry is now mature enough after about 20 years to stand on its own, surely the oil industry can do so.
Posted By Cindy January 23, 2012
Big plans have been announced for American Ethanol‘s second NASCAR season.
The announcements were made at the NASCAR Preview 2012 event over the weekend in Charlotte, N.C. First of all, American Ethanol announced that it will continue relationships with Richard Childress Racing (RCR) and RAB Racing for the 2012 season. Pictured here are the American Ethanol drivers for the teams. Kenny Wallace (left) will drive the No. 09 Toyota Camry in the NASCAR Nationwide Series for RAB Racing. Austin Dillon, 2011 NASCAR Camping World Truck Series Champion, will drive the No. 3 Chevrolet during the 2012 NASCAR Nationwide Series season for RCR.
That No. 3 Chevrolet is the same one that carried Dale Earnhardt Jr. to four NASCAR Nationwide series championships and it will feature a new American Ethanol paint scheme that was unveiled during the preview event. American Ethanol will serve as the primary sponsor for six Nationwide series races as well as one race in the NASCAR Sprint Cup Series in 2012.
Both drivers are excited about being able to represent homegrown fuel in the NASCAR races. “I’m proud to carry the American Ethanol colors in NASCAR,” said Dillon, who is one of team owner Richard Childress’ grandsons. “I am looking forward to representing American Ethanol, Growth Energy and the National Corn Growers Association.”
Wallace has already been a strong promoter of corn growers and ethanol during the 2011 NASCAR season. “I not only talk about American Ethanol, I truly believe in it,” Wallace said. “I’ve been to the farms, I’ve met the families, I’ve been to the ethanol plants, and I’ve been in the hallways of the U.S. Senate in Washington, D.C., in support of it.” (Listen to a prior interviews with both Wallace and Richard Childress from Farm Progress Show.)
American Ethanol was established by National Corn Growers Association (NCGA) and Growth Energy with NASCAR starting with the 2011 racing season, the same year that NASCAR switched its fuel to Sunoco Green E15. “American Ethanol is getting a lot of positive attention because it’s a good fit for NASCAR’s green initiative, and because of the increased horsepower on the track,” said NCGA President Garry Niemeyer. “Our partnership with RCR and RAB Racing will assure continued success in letting the American public know that if ethanol can stand the stress these drivers put it through, it’s good for the family car, too.” Niemeyer says that research for the first year of American Ethanol found an amazing 71% acceptance rate for ethanol within NASCAR’s 75 million fans.
American Ethanol is looking forward to another big year with NASCAR!
Posted By Cindy January 20, 2012
A syndicated kid’s show that explores the outdoors will feature the life of a corn kernel in an episode airing this week.
An episode of the Into the Outdoors series titled, “Big Things from Small Stuff” will be shown this weekend, January 21-22, on local channels in Wisconsin, Iowa and Minnesota.
Wisconsin Farmers Mark Schroeder and Bill Hoffman and Cambria-based Didion Milling are featured as the episode follows the life of a corn kernel from planting to harvest. Production of corn kernels into products is displayed in the balance of the episode, which features Didion Milling’s innovative fractionation process at its dry corn mill and the company’s line of HarvestGold Family of Corn Products. The episode also features Didion Ethanol and their co-product dried distillers grains.
Find out more here.
Posted By Cindy January 4, 2012
Corn growers and the grain-based ethanol industry got a late Christmas present last week when a Federal District Court judge in Fresno, California sided with America’s ethanol industry in ruling that the State of California’s Low Carbon Fuel Standard (LCFS) violates the Commerce Clause of the U.S. Constitution and is therefore unconstitutional. The ruling is in response to a suit filed in December 2009 by the Renewable Fuels Association and Growth Energy asserting that the LCFS violates the Commerce Clause by seeking to regulate farming and ethanol production practices in other states.
“This ruling reaffirms our position that the state of California violated the U.S. Constitution when it created a low carbon fuel standard punitive to farmers and ethanol producers outside of the state’s border,” said National Corn Growers Association President Garry Niemeyer. “We hope that this ruling will lead to an inclusive discussion where regulators join other stakeholders to find effective renewable energy solutions.”
The Commerce Clause specifically forbids state laws that discriminate against out-of-state goods and that regulate out-of-state conduct. The original filing notes that “the LCFS imposes excessive burdens on the entire domestic ethanol industry while providing no benefit to Californians. In fact, in disadvantaging low-carbon, domestic ethanol, the LCFS denies the people of California a genuine opportunity to clean their air, create jobs, and strengthen their economic and national security. One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS.”
On this claim the Court found that the LCFS discriminates against out-of-state corn-derived ethanol and impermissibly regulates extraterritorial conduct. As a result, the Court issued an injunction. The judge also ruled that CARB failed to establish that there are no alternative methods to advance its goals of reducing GHG emissions to combat global warming.
The California Air Resources Board (CARB) is expected to automatically appeal the ruling to the U.S. Court of Appeals for the 9th Circuit and the industry is prepared to continue the fight to provide clean corn ethanol for all Americans.
Posted By Cindy January 4, 2012
The two Republican presidential candidates who topped the Iowa Caucus in a virtual dead heat Tuesday night are both considered to be supporters of ethanol, according to the Iowans Fueled with Pride Iowa Caucus Voters Guide.
Both former Governor Mitt Romney and former Senator Rick Santorum expressed their support for the federal renewable fuels standard while campaigning in Iowa. In addition, both candidates were 4-for-4 on other important ethanol issues, including a fair and equitable energy tax policy; the attempt to ban E15; and consumer fueling choice through programs to increase the number flexible fuel vehicles (FFVs)and blender pumps in the nation. The other two candidates who scored well in all those categories were Newt Gingrich and President Obama.
“Despite scant attention on agriculture issues by the national media, both Governor Romney and Senator Santorum prioritized rural and ag issues,” said Iowa Renewable Fuels Association Past President Walt Wendland, CEO of Golden Grain Energy near Mason City. “It came as no surprise to us that friends of ethanol fared well in the Iowa Caucus.”
Ron Paul, Michelle Bachman and Rick Perry all were opposed to the RFS and increasing FFVs and blender pumps, while only Rick Perry was against E15 and a “fair and equitable energy tax policy” that would “create a level playing field for energy taxes” by revising the permanent tax benefits enjoyed by the petroleum industry.
The voter guide was mailed to approximately 10,000 Iowa households with residents who are directly involved in Iowa ethanol refineries and was also promoted to all of Iowa’s 250,000 agricultural households via email, the Internet and social media. An electronic version of the guide can be viewed at: www.IowansFueledwithPride.com.
