What was the second biggest policy story of the year in eyes of the petroleum industry? According to a recent membership survey by the American Petroleum Institute reconsidering biofuel (ethanol) blending. What was the second biggest transportation, storage and refining story of the year? The battle over biofuels blending. And what was listed 2nd on oil’s list of things they most want to see happen in 2014? Yep, reduction in EPA blending requirements.
Most of the public are too focused on their jobs, raising families and just paying the bills to have a deep understanding of the growing role of biofuels and renewable ethanol in our nation. However, years of education by supporters of the domestic fuel have generated a basic awareness of ethanol’s benefits such as job creation, reducing greenhouse gas, and providing a fuel choice that makes us less reliant on imported petroleum.
Because of this hard fought and well deserved perception that ethanol is good, many of my friends have been asking me lately what the heck is going on with the rash of negative information related to ethanol. How did proven ethanol suddenly become a bad idea over night? Most recently, the Environmental Protection Agency’s proposal to reduce the amount of ethanol to be blended in our fuel supply has been getting a lot of media attention.
Put simply, the oil industry has always been ok with ethanol as long as the market share didn’t get too large. In fact they need a certain amount of ethanol because it allows them to provide a high octane product at less cost…meaning more margin for them. Without ethanol they would be forced to do more extensive and costly refining in order to produce a product that won’t leave your car sputtering curbside.
But in today’s market things have changed. Increasing domestic oil production, more fuel efficient vehicles and a soft economy have shrunk the volume of fuel needed. Thus big oil finds themselves looking at the bigger market slice on ethanol’s plate and thinks “hey we want some of that back.”
The unspoken part of the previous statement is “and yes we will pay nicely to get it.” And they have done so in recent years. Their most recent onslaught has been sustained by millions of dollars of lobbying, advertising and poor pseudo-journalism.
You might be inclined to think the family farmers and independent businessmen that make up the ethanol industry are just paranoid but given the aforementioned high priority petroleum has placed on this issue, “it ain’t paranoia if they’re really out to get ya.”
If you happen to be an ethanol proponent and you get asked by friends over the holiday what all the hub-bub is about related to the Environmental Protection Agency and their recent ethanol snub, just tell them to follow the money.
You see the stock values of four of the five biggest oil companies surged by a combined $23 billion in a single day after the Obama administration proposed to scale back the biofuel blending requirements, according to Americans United for Change.
“Big Oil hit the jackpot, but we are risking a huge slowdown in the development of next generation biofuels that are our best hope for reducing America’s dangerous dependence on foreign oil,” said Brad Woodhouse, the group’s president.
It almost appears that the administration is succumbing to the pressure and millions of dollars spent by big oil to slander ethanol in order to avoid another self-inflicted political wound, said one Washington insider. “Obamacare is too white hot for them to risk another hot potato and the petroleum industry made a lot of noise in Congress. The only way to overturn this EPA proposed action is to make them equally uncomfortable.”
In the interim one unavoidable fact remains in the favor of ethanol proponents…the Renewable Fuels Standard was designed by Congress to reduce our dependence on foreign oil and give consumers a fuel choice. It has done that nicely and created jobs and saved consumers money in the process.
It has honestly been awhile since the nation’s family farmers who grow corn have been in a political gunfight of this magnitude, but this is a fight worth winning. Corn prices below the cost of production should provide a powerful incentive. Stay tuned in the weeks ahead and be prepared to take action when the time comes.
They call it black gold and Texas Tea but I prefer to call it environmental anathema; that rare combination of disgrace and abomination. Better that than using the words that I would like to use that got my mouth washed out with soap as a child.
Ok, Thanksgiving is almost upon us so I want to purge a little bile so I will enjoy the day a little more. What better target than Big Oil?
You know, those heavily subsidized global scale polluters who control…I mean contribute to every politician to make sure they have their bases covered. Well after an announcement today, I guess we will see how well their “investment” pays off.
It seems gas and oil are almost singlehandedly responsible for the bulk of all the man-made global warming emissions since the dawn of the industrial revolution. Chevron, Exxon and BP are among the companies most responsible for climate change since dawn of industrial age, according to a new analysis.
The climate crisis of the 21st century has been caused largely by just 90 companies, which between them produced nearly two-thirds of the greenhouse gas emissions generated since the dawning of the industrial age, new research suggests.
I have always been a big fan of irony but this week takes the cake. It seemed bizarre that earlier this week EPA announced their proposal to significantly weaken the Renewable Fuel Standard, reducing the volume of renewable fuels like ethanol for 2014; thus making us even more dependent on oil.
Odd that an agency with “Environment” in their name would turn away from a program that has cut emissions of greenhouse gas by 110 million metric tons, making it one of the most successful programs in the EPA arsenal. This is the equivalent of taking more than 20 million vehicles off the road.
Now it will get even more interesting to see how this same administration that purports to be on a crusade to fight greenhouse gases will deal with Big Oil now that the emperor has no clothes.
In 36 years of being directly involved in agriculture and the issues that make it so…interesting, frustrating, rewarding, and painful…I have only seen one positive story written about the issues effecting the profession, especially ethanol, in the Chicago Tribune. I remain convinced to this day that it was a mistake that slipped by editors and that the cub reporter responsible is driving a cab in the Loop and speaking in tongues.
I think it is ok to say this Windy City pub never met a farm policy or ethanol issue they didn’t like to bash, facts aside. Apparently farmers are immune to the whims of business considerations like making enough to pay the bills and plant another crop. Why else would the Trib opine that farmers are getting more for their corn after a 25 year economic drought that saw farmers getting $2 to $2.50 a bushel regardless of real world cost or demand? (Let alone make such comments in the wake of prices just dropping 40 percent).
So, following their direction, I guess all of you farmers can get off your combines and retire. Apparently you have spent your entire life, not to mention several generations, involved in the most under appreciated hobby in history. No more production of food, feed, or fiber. No more ethanol fuel because we are just going to continue to depend on prickly and dangerous oil producing nations for their finite black gold.
On a more serious note, I think the Tribune needs to be called on the carpet for the sham they have been selling to the public for years that they have a pro-business/pro-jobs position.
Despite dozens of third party experts bringing them information backed by science that exposes the errors in their thinking the Trib, especially its editorial writers, remain steadfast in their spewing of misinformation and loathing of ethanol despite its emergence as a critical economic engine in much of the U.S. Are these folks not suspicious or troubled at all by the millions of dollars being spent by the petroleum industry in recent years to damage the reputation of ethanol. One of the tenants of good journalism is to follow the money in trying to understand societal issues. Clearly Goliath is trying to squash David and somebody should be asking why.
Here are a few of the factual perversions in their latest diatribe:
Farmers are not planting as much corn as possible. In fact we are 20 million acres shy of planting the acres we did in the 1920s.
The Trib notes we use 40% of the corn crop to make ethanol. Actually we use the equivalent of only 27% of the crop because only the starch from the corn kernel is used to make ethanol. The protein for livestock feed is concentrated, easier to transport and a high value product.
Blaming corn for higher meat prices is also off base. Declining domestic meat consumption and the outrageous cost of transportation of all food products to market – thank you big oil – has something to do with that.
Plant diseases and pests are nothing new. Farmers deal with them all the time and do so very well thank you. Goss’s wilt that you reference touches only 10% of the corn crop, and is far from being devastating, unless of course you fall in the 10%.
And did you actually criticize crop insurance in one breath while also intimating we should take away a farmer’s ability to choose what to plant? That will make the kids want to return to the farm business.
Fuels America launched a campaign to set the record straight on the real way to lower prices at the pump yesterday, releasing both a video and an op-ed that ran in Beltway must-read Politico. Using facts to combat the anti-ethanol hype being used in the current assault on the RFS, the multi-pronged push to provide real information is making a splash in the media and with those engaged in the online energy dialogue.
The video, “The Truth Behind High Gas Prices in 60 Seconds”, explains that:
“We can’t drill our way to cheaper gas, but we can get lower gas prices – by stopping the oil industry’s monopoly. First step? We need to fight for other options – like renewable fuel. Watch our video to learn the truth behind the price we pay for gas.”
In an op-ed published in Politico, Growth Energy CEO Tom Bius and Renewable Fuels Association President and CEO Bob Dinneen looked at volatility in the RINs market, a cause of concern for many on the Hill as of late.
“The story here is simple. Opponents of renewable fuel, led by the oil industry, want to convince Capitol Hill that renewable identification numbers, or RINs, are the harbingers of doom for U.S. gas prices. Three facts every member of Congress should know about RINs: They are free, they are primarily traded by oil refiners to oil refiners, and they were created at the oil companies’ insistence. Early this year, the price of RINs rose dramatically, but since oil companies dominate the RINs market — and since ethanol supplies are increasing — we are hard-pressed to see a reason for that spike in prices.”
To read the editorial in opinion piece in Politico, click here.
Today, a second op-ed by Bius and Dinneen ran in Roll Call. Here, they called for the confirmation of Gina McCarthy as EPA administrator and Eric Munoz as secretary of Energy as these confirmations would help continue the successes already achieved by biofuels under the RFS.
“We’ve done our part: Foreign oil imports are down 10 percent. We’ve added $40 billion to America’s gross domestic product. We’re offering blends from E15 to E85 in some parts of the country. But, as energy analyst Daniel Dicker says, ‘[Oil] refiners don’t make ethanol, so they’re not really all that happy about making E15. What they want to do is make gasoline because that’s what they make money off of.’”
To read the editorial in opinion piece in Roll Call, click here.
The push to get the truth about America’s renewable, environmentally conscious energy source out is growing. To become part of this positive change, click here.
Without question, most Americans have probably wondered at one point or another where some members of the U.S. House of Representatives get their information. Prone to tossing about wildly inaccurate blanket statements, a segment of politicians aiming to bring down the Renewable Fuel Standard and our nation’s energy security are playing fast and loose with the truth.
And it seems like no one is watching.
Just today, CNN Money released a story about how the price for many consumer goods fell. Based upon information released by the Labor Department on changes during March to the Consumer Price Index, the story explained that one major factor contributing to the decreased CPI was a drop in food prices at the grocery store.
“Prices on whole milk, potatoes, lettuce and pork chops all declined during the month,” the article stated. “But food prices at restaurants and cafeterias rose slightly.”
Yet, only days ago, Rep. Bob Goodlatte (R-Va.) introduced legislation that would remove corn-based ethanol from the federal Renewable Fuels Standard in 2014. Calling the RFS an “unworkable federal policy”, Goodlatte even noted that he plans to introduce legislation which would eliminate the RFS entirely.
How do the bill’s supporters justify this attack?
Fellow sponsor Jim Costa (D-Calif.) explained, “We can’t afford to keep putting food in our fuel tanks. It’s no longer just about agriculture or energy. It’s about putting food on our families’ tables.”
With food prices at the grocery story, presumably the most common place to purchase affordable food for our families’ tables, actually falling and a lower percentage of our income going to food than any other developed nation, how does this justification make sense?
Simply, no one is taking time to connect the dots.
Allegations are thrown out and accepted as fact without any real evaluation. Looking at the news in its totality instead of as a series of unconnected sound bites shows the inherent fallacies in basis upon which these legislators are putting forth a bill that would have a massive impact on our nation’s energy supply.
An attack on the RFS is an attack on legislation that has successfully decreased our dependence on foreign oil while moving our nation toward a renewable, more environmentally friendly fuel. Make no mistake, a step in this direction will have consequences that every American feels in one way or another. Whether it is by paying more at the pump next year or by breathing in more harmful pollutants, handing back the gains made through the RFS will harm American families.
Good policy may be complex. It may not make a snappy sound bite. It is what Americans must protect to ensure a better future for their families.
Two strong advocates for agriculture in Congress are retiring after this term, leaving a void in the Senate that could make it even more challenging for farmers and ranchers to have their voices heard on the Hill in the future.
Senator Tom Harkin (D-IA) announced Saturday that he would not to seek reelection in 2014. “I’m 73 years old right now,” Harkin said in a statement. “When the current Congress is over, I will have served in the United States House of Representatives and the U.S. Senate for a total of 40 years. After 40 years, I just feel it’s somebody else’s turn.”
On Friday, Sen. Saxby Chambliss (R-GA) announced he would be retiring after serving a combined 20 years in the House and Senate. His reasoning is different than Harkin’s. “Instead, this is about frustration, both at a lack of leadership from the White House and at the dearth of meaningful action from Congress, especially on issues that are the foundation of our nation’s economic health,” Chambliss said.
Both of these lawmakers have served in leadership positions on the agriculture committees in both the Senate and House and have helped shepherd several farm bills through Congress. Certainly both of their reasons for not seeking reelection are very good ones. There is definitely something to be said for limiting terms in Congress and no doubt a lack of action in Washington, but agriculture needs its friends on the Hill and they are getting fewer and harder to come by. We can only hope that they will be followed by others who see the importance of our nation’s food system.
Phone to the ear is the way National Corn Growers Vice President of Public Policy Jon Doggett spends most of his day, so doing interviews at the National Association of Farm Broadcasting just two days after the election was no different than any other. He just had to squeeze in that phone time between the interviews!
Broadcasters were most interested in what now after the election and Doggett told them that getting a farm bill done is a major priority for the upcoming lame duck session, but will they get it done? “I think the chances are excellent – IF there’s a commitment from the leadership that they will move forward, but if there’s not the commitment, I can guarantee what the result will be – it will be nothing,” said Doggett.
Congress will also have to deal with the “fiscal cliff” in the short lame duck session. “If we don’t make our decisions by the end of 2012, we’re gonna jump off a cliff,” said Doggett. “We’re not at the edge yet, but we’re kind of looking over the edge.”
Doggett also talked about other issues, like the RFS waiver and how important it is for farmers to make their voices heard in Washington.
With only days remaining before the election, the vast majority of Americans have already decided which candidate they will back when they cast their ballot. President Obama, Mitt Romney and both men’s proxies are running at a feverish pace back and forth between a hand full of “key” states trying everything short of giving away free puppies in an effort to woo the rare undecided voters.
Although it hardly competes with the precision-crafted media events that candidates call rallies, the National Corn Growers Association offers farmers something that seems to be in short supply this year. It offers concrete answers, in writing, on where the candidates stand on the issues that matter most in rural America.
Take a moment this weekend to take advantage of this incredible resource. Even decided voters should know exactly where future leaders stand on the unique issues that will impact their lives in a direct manner.
NCGA, non-partisan in its very nature, understands the grassroots power its members can wield. In providing this information, it hopes to help farmers take that power to the polls.
To access the candidate responses in their entirety, click here.
Republican presidential candidate Mitt Romney put his focus on agriculture and rural policy on Tuesday with the release of an agricultural policy white paper and a visit to an Iowa family farm.
Romney pledged to get a farm bill passed as president and blamed President Obama for the failure of Congress to do so yet, despite the fact that Republican leadership held up getting a bill to the House floor while Democratic leadership got one passed on the Senate side. “The president has to exert the kind of presidential leadership it takes to get the House and Senate together and actually pass a farm bill,” Romney said during his speech to over 1000 supporters at the Koch family farm near Van Meter, Iowa.
Romney’s “vision for a vibrant rural America” includes tax policies to support family farms, expanding agricultural trade, achieving energy independence by 2020, and creating a commonsense regulatory environment. “The regulatory burden under this administration has just gone crazy,” said Romney. “I’m going to put cap on regulation and any new major regulation will have to be approved by Congress.”
Under tax policy, the white paper says Romney will permanently eliminate the estate tax while his trade policy for agriculture includes completing the Trans-Pacific Partnership and pursuing new agreements, specifically in Latin America. His agenda for energy independence includes maintaining the Renewable Fuel Standard (RFS), “fulfilling the federal government’s commitment to biofuels growers and refiners and providing them the certainty they need to follow through on their investments in promising technologies.”
While Governor Romney failed to mention biofuels in his speech, he did tell a couple of Iowa Renewable Fuels Association (IRFA) members after his speech that he supported both the RFS and ethanol. The exchange between IRFA President Brad Albin with the Renewable Energy Group (REG) and past president Walt Wendland of Golden Grain Energy and Romney saying “I do support the RFS and ethanol” was captured on video which can be seen below.