Author Archives: Cindy Zimmerman

About Cindy Zimmerman

Cindy has been reporting about agricultural topics since 1980 when she graduated with a degree in broadcasting from the University of Florida. She is an emeritus member of the National Association of Farm Broadcasters and 1991 Oscar in Agriculture winner. She and her husband Chuck started ZimmComm New Media in 2003. They have three beautiful daughters and live near white sand beaches of Pensacola, Florida.

Ag Secretary Reacts to EPA Administrator Resignation

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Agriculture Secretary Tom Vilsack has had a good working relationship with EPA Administrator Lisa Jackson on various issues important to farmers, ranchers and renewable energy and he is sorry to hear about her resignation from the Obama cabinet.

jackson-vilsack-reg“Lisa Jackson has served our country well as she balanced improving the environment and the health of the American people – while ensuring our country’s economic competitiveness – because they are intrinsically linked,” said Vilsack in a statement today. “Throughout her tenure, she listened to stakeholders, including farmers and ranchers, and took their concerns into account while considering policies that impacted rural America. She was a friend to me and to those who live and work in rural America and her leadership will be missed.”

Vilsack and Jackson met with representatives of the ethanol industry and toured Renewable Energy Group (REG) biodiesel plant in Newton, Iowa last year. Jackson was instrumental in deciding in favor of a waiver allowing the use of 15% ethanol and against a waiver of the Renewable Fuel Standard requested this year.

Ethanol Year in Review – 2012

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Ethanol Report PodcastIn this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen provides his naughty and nice list for Santa, talks about a new progress report on cellulosic biofuels, and promises 2013 will bring one of the biggest fights for the future of energy policy.

Dinneen says those who deserve coal include industries that have continued to relentlessly attack ethanol this year, while he puts the Obama administration on the nice list for upholding the Renewable Fuel Standard and finally allowing sales of 15% ethanol.

Listen to or download the Ethanol Report here: Ethanol Report on 2012 in Review

Subscribe to “The Ethanol Report” with this link.

Cellulosic Biofuels Progress Report

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RFA AECThe Advanced Ethanol Council has just released a detailed look at the progress made towards the commercial deployment of advanced cellulosic biofuels.

The Cellulosic Biofuels Industry Progress Report profiles production facilities and projects across the country and producing nations around the world. According to the report, all countries that were profiled are working toward developing production capacity in the U.S. to meet the Renewable Fuel Standard (RFS).

The new data includes each facility’s path to commercial deployment, capacity, feedstock and more, demonstrating that notwithstanding the global recession, the cellulosic biofuel industry is coming on line.

“It was just five years ago that Congress called for the aggressive deployment of cellulosic biofuels to reduce U.S. dependence on foreign oil. We are pleased to report that the industry is breaking through at commercial scale, and is well on its way to becoming a major player in the American fuel mix,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “This rapid progress is due to the Renewable Fuel Standard and to Secretary Vilsack’s and the Obama Administration’s leadership on the issue, ensuring the policy has remained stable and allowing investors to feel confident about committing the capital necessary to take the industry to scale.”

“Much has been made about the slow development of cellulosic ethanol,” added Bill Brady, CEO of Mascoma Corporation and Chairman of the AEC. “This report should put all that to rest. This is the cleanest, most innovative liquid fuel in the world, and the United States is poised to lead the development of this game-changing industry.”

The report points to the industry’s enormous potential. According to the Sandia National Lab, the U.S. could produce 75 billion gallons per year of cellulosic biofuels without displacing food and feed crops, or more than half of the 134 billion gallons of gasoline consumed by the U.S. in 2011. Continue reading →

World Corn Supply and Demand

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USDA’s World Agricultural Supply and Demand Estimate (WASDE) out this week left corn stocks unchanged but lowered the season average price estimate by 20 cents to $7.40 per bushel.

USDA maintained corn ending stocks in the U.S. for the marketing year at a tight 647 million bushels, which is about three weeks worth of supply. Globally, USDA slightly lowered the projection for corn ending stocks in the current marketing year to 117.6 million metric tons, which is down 13.4 million from last marketing year. However, global coarse grains production was actually increased 7.9 million metric tons, as China reported a corn crop four percent larger than the November estimate.

“The drought reduced production by four billion bushels from what we thought earlier this year,” said USDA Chief Economist Joe Glauber. “No question that’s rationed demand and we’ve seen a really tight stock situation.”

Glauber says margins for ethanol producers have been very tight this year. “If you look at ethanol production, it’s been below 13 billion gallons on an annualized basis, if you look at weekly production numbers, and that reflects the lower margins for sure,” he said. Corn use for ethanol is forecast at 4.5 billion bushels, 10% lower than last year.

According to the Renewable Fuels Association, the U.S. ethanol industry is projected to use 78.9 million metric tons of grain (net distillers grains) or less than three percent of the world grain supply – the lowest rate in five years. “Further, more grain will be available for non-ethanol use than any other time in history with the single exception of last year,” said RFA Vice President, Research and Analysis Geoff Cooper. “In fact, grain available for non-ethanol use in 2012/13 will be 15% higher than 10 years ago in 2003/04. Meanwhile global population grew 9.8% during this period.”

Just the Ethanol Facts

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The National Corn Growers Association has created a simple website that offers just the facts about ethanol.

The website EthanolFacts.com offers information about E15, food versus fuel, energy security, jobs in rural America and more. There is a lot of discussion about ethanol these days, and plenty of need for a look at the facts. That’s why the National Corn Growers Association has created the EthanolFacts.com website as a simple place to get the facts and links to a lot more information about our favorite domestic renewable fuel.

“For years, NCGA has been at the forefront of promoting ethanol as an important choice for today’s drivers, who are demanding fuels that are not only cleaner-burning, but powerful and made right here in the United States,” said Chad Willis, a Minnesota corn farmer who serves as chairman of NCGA’s Ethanol Committee. “EthanolFacts.com provides the key information to people who want to know the simple truth about a very complex subject so they can continue the conversation about how farmers are not only helping feed the world, but fuel it, too.”

EthanolFacts.com was designed for simplicity and clarity on a number of platforms, especially mobile platforms such as tablets and smartphones – and NCGA also has print versions available.

Ethanol Groups Respond to EU Investigation

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The European Commission today issued a “general disclosure document” setting forth its proposed ruling in the anti-dumping investigation involving U.S. ethanol exports to Europe.

Growth Energy and the Renewable Fuels Association (RFA) issued a joint statement on the issue:

“We continue to cooperate with the Commission’s investigation. We are troubled by news that the Commission is recommending a 9.6 percent anti-dumping duty to its Member States. We remain convinced that if all the facts are considered, the European Union will decide not to impose any anti-dumping duties on imports of ethanol produced in the United States.”

Last year, the European Union (EU) initiated anti-dumping and countervailing duty investigations regarding U.S. exports of ethanol to Europe and current U.S. policies surrounding ethanol production and use, specifically the expiring volumetric ethanol excise tax credit, or VEETC, available to blenders of ethanol and gasoline. Allegations by EU ethanol producers suggested that U.S. ethanol exports to Europe were taking advantage of the tax incentive before export, thus lowering its price and harming EU ethanol producers. However, by August of this year it appeared the issue had been resolved and the EU would not be taking any action.

Car Clinic Host Baffled by AAA Ethanol Attitude

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Automotive service expert Bobby Likis nearly blew a gasket when he saw today that the AAA is calling for the sale of 15% ethanol blended fuel (E15) to be suspended “to protect motorists” from damaging their engines.

“To state that ethanol damages engines is a disservice to consumers…specifically to AAA members,” said Likis, who is the host of the syndicated Car Clinic Network and has been in the automotive service industry for over 40 years as technician, rear-engine dragster builder, and owner of an award-winning service shop. “The fact is there’s no proof that ethanol damages engines.”

Likis is a long time AAA member who also provides both of his out-of-state daughters with annual AAA road service cards and he speculates on what members might take away from the organization’s statements about ethanol. “Can you imagine a car owner reaching out to AAA in need of gas with the stipulation they would not accept ethanol-based fuel?” he questioned.

Likis says he is amazed when he hears people claim that ethanol ruins engines. “Technicians know that people ruin engines – neglect of ownership, lack of service, lack of following normal maintenance procedures,” said Likis, noting that car engines are perfectly capable of running on at least 15% ethanol. “Have been since 2001 and even cars prior to that, if the truth be known,” he added.

Listen to an interview with Likis about AAA statements: Car Clinic Host Bobby Likis

Ft. Dodge Terminal Great for GROWMARK Energy

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GROWMARK has made several changes since purchasing the Fort Dodge Fuel Terminal in Duncombe, Iowa two years ago – and the cooperative company continues to grow the facility which was originally built more than 40 years ago.

“GROWMARK has made a lot of improvements to get a good quality system where customers can depend on it to come and get fuel 24 hours a day,” said terminal manager Bill Fandel, who has been at the facility for nearly 40 years himself. “We’ve been in a constant state of construction.” Capacity has increased to over nine million gallons for fuel oil and about 3.5 million gallons for gasoline.

GROWMARK also added 76,000 gallon storage capacity for ethanol and 30,000 gallons for biodiesel. “We’re blessed with about eight ethanol plants in a 40 mile radius,” Fandel said, and at least two biodiesel plants within 40 miles. “It is all soy, no animal fat,” he added.

Listen to my interview with Bill here: Bill Fandel, Ft. Dodge Terminal

Demand for both ethanol and biodiesel are good at the Fort Dodge Terminal. “The majority of the gas going out of here has ethanol in it and a lot of our member companies are using the bio,” said Fandel. Customers select their blend at the terminal for both ethanol and diesel.

Facility operations manager Greg Eckhart says the Fort Dodge facility has been a great investment for GROWMARK. “It was a great asset sitting right in the middle of our territory already, it was a terminal we did use before and we saw potential and growth,” said Eckhart, who added that they have nearly doubled volume in two years.

Adding ethanol and biodiesel was good for them. “We’ve increased the gas loading here tremendously because of that,” Eckhart said.

Listen to my interview with Greg here: Greg Eckhart, GROWMARK

Senate Approves Military Biofuels Use

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The U.S. Senate has repealed a provision in the defense department budget that would have prevented the military from developing the use of biofuel alternatives.

A coalition of organizations representing military biofuels supporters welcomed the news that will allow the Department of Defense “to continue research and testing of fuels that provide U.S. forces with enhanced military capability.”

The Senate voted 62-37 to pass an amendment by Senator Mark Udall (D-CO) repealing section 313 of the FY2013 National Defense Authorization Act (NDAA), which prohibited DOD from procuring alternative fuels if they cost more than their conventional counterparts.

“Military leaders and security experts believe these initiatives are vital to our military’s energy security,” said Mike Breen, Executive Director of the Truman Project and spokesman for its clean energy campaign, Operation Free. “Our dependence on oil as a single source of transportation fuel endangers our national and economic security.”

The House of Representatives has included similar language in its defense appropriations bill.

Restaurant Owners Join Fight Against RFS

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The National Council of Chain Restaurants today joined the fight against the Renewable Fuel Standard (RFS) with the release of a new report on its impact on the chain restaurant industry, commodity prices and the food supply chain.

The study, which was conducted by PwC, “concluded that the RFS mandate could cost chain restaurants up to $3.2 billion annually, with quick-service restaurants witnessing cost increases upward of $2.5 billion, and full-service restaurants seeing increases upward of $691 million.”

Ethanol industry representatives called the study “flawed” and “misleading” and said it failed to take many factors into account. “The true culprit behind rising food prices is the cost of energy, and in particular oil,” said Growth Energy CEO Tom Buis. “Only 14 percent of the price of food is attributable to the cost of the commodity, while the rest can be attributed to energy costs and marketing. The processing, packaging, wrapping, storage, refrigeration and transportation costs are the true drivers in price increases.”

American Coalition for Ethanol Executive Vice President Brian Jennings says the council of chain restaurants is ‘out to lunch’ on the RFS. “Contrary to their claims, a recent fact-based analysis by the U.S. Department of Agriculture and EPA showed that the Renewable Fuel Standard (RFS) has virtually no impact on food prices, so we encourage the media to take this fast-food study with as much salt as you’d find in one of their meals,” said Jennings.

“They lost in their bid for a waiver of the RFS, so now they are resorting to super-sized myths about the impact of the RFS on food prices. Every reasonable analysis of the factors influencing food prices has concluded that the cost of diesel fuel, gasoline, and other energy inputs is the major driver. This study conveniently avoids that issue,” said Bob Dinneen, President of the Renewable Fuels Association.

Listen to Dinneen’s comments here: RFA president Bob Dinneen

Congressman Bob Goodlatte (R-VA) announced at the NCCR press conference this morning says the report supports his legislation “The Renewable Fuels Elimination Act” HR3098. “This is a bipartisan effort,” Goodlatte said, noting that a letter to EPA administrator Lisa Jackson encouraging a waiver of the RFS was signed by 156 members of the House. “That group provides a basis for moving forward with legislation that would do what unfortunately she chose not to do.”

Goodlatte says he is hopeful that the RFS will either be reformed or eliminated in the next Congress.

Listen to Goodlatte’s comments here: Congressman Bob Goodlatte

Ethanol Groups Not Surprised by Attack on RFS

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The ethanol industry is categorizing the latest attack on the Renewable Fuel Standard (RFS) by the American Petroleum Institute (API) as more of the same.

In response to API’s call this morning to eliminate the RFS “because it is not working well and because it will force higher concentrations of ethanol in gasoline that could harm vehicles,” Growth Energy CEO Tom Buis said, “This is a classic example of the fox guarding the chicken coop. Really? Special interests will stop at nothing to discredit the success of renewable fuels created right here at home to ensure their lock on the fuels market goes unchecked.”

Bob Dinneen, President and CEO of the Renewable Fuels Association, referred to the API position as the classic “dog bites man” journalism example. “API wants to repeal a highly successful program that has reduced gasoline imports and stimulated investment in renewable energy resources. API doesn’t like the RFS because it has taken ten percent of their barrel and reduced consumer costs. Americans like and support the RFS for exactly those reasons.”

Iowa Renewable Fuels Association Executive Director Monte Shaw was equally blunt. “The reason API is so concerned now is that E15 is poised to become widely available. Without the RFS, Big Oil can continue to hide behind its Century of Subsidies and the federal petroleum mandate to ignore lower cost ethanol blends like E15.”

Brent Erickson, executive vice president of the Biotechnology Industry Organization’s Industrial & Environmental Section, says the oil industry continues its efforts to undermine the success of the RFS. “Since the inception of the RFS, API has used every regulatory and legal ploy available to delay and block implementation of the law. Since these efforts appear to have failed, they are now mounting a public relations effort to convince lawmakers to repeal the RFS. Congress should see right through this effort.”

Sweet Thanksgiving Wishes to All

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Of the many foods we have to be thankful for in this nation, I’ll bet there are lots of people who are thankful every day for the gift of chocolate! Oh yeah!

This is an image of our sweet Thanksgiving greetings sent this year to some of our clients. Hopefully most received them before leaving for the holiday, but if not, it will be waiting for you at your desk on Monday. Some other clients will be receiving a sweet bag of Florida citrus next week. We want you to know how much we appreciate not only your business, but your friendship as well.

We also are very grateful for the hundreds of other business associates and Domestic Fuel readers that we count as our friends. Wish we could send everyone a whole bushel of Florida citrus and sweet chocolate to let you know how much we appreciate you! You are all in our prayers of gratitude this holiday and we wish you the sweetest joys of the season!

Thankful for Ethanol at the Pump

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As motorists head over the roads to visit friends and family for the holiday, they can be thankful for ethanol helping to lower gas prices and make our nation less dependent on foreign oil.

The Renewable Fuels Association notes that ethanol is actually helping reduce the cost of the Thanksgiving holiday for the average American family. More than 39 million Americans will take to the road for their Thanksgiving holiday, traveling an average distance of 588 miles, according to AAA. That means the average American family traveling by automobile this holiday will save $29.13 on gasoline purchases because of ethanol. That deduction is based on recent economic analysis from Louisiana State University, the University of Wisconsin and Iowa State University

“Thanks to ethanol, hardworking American families will get a break as they drive to spend the Thanksgiving holiday with loved ones,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “The average American family will save $29.13 because ethanol helps lower the price of each and every gallon of gasoline. Ethanol and the Renewable Fuel Standard (RFS) are also helping to reduce this country’s dependence on foreign oil, thus creating a stronger country and a stronger economy. Ethanol is a product made by Americans for Americans and we are proud that on this most American of holidays that we can offer a solution to sky-high gas prices,”

In addition, Dinneen notes that while some livestock and poultry producers are claiming that ethanol is driving up the price of food, meat in particular, turkey prices overall are lower this year than the last two years, according to the Bureau of Labor Statistics – and the cost of the Thanksgiving day turkey this year is up less than four cents a pound compared to last year, according to the American Farm Bureau Federation. In fact, AFBF reports that this year’s Thanksgiving dinner feast – including a 16-pound turkey, mashed potatoes, cranberries, relish tray, and pumpkin pie – is $49.48 – up only one percent, or 28 cents, compared to last year.

Farm Bureau has been doing the Thanksgiving dinner survey since 1986, when the cost of the meal was $28.74. That’s an increase of 42% in 26 years. To put that in perspective, the average price for a new car in 1986 was $9255 – this year it was $30,274 – an increase of a whopping 227%. A great reason to be thankful for our food and our farmers this Thanksgiving!

ACE Elects Officers

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The American Coalition for Ethanol (ACE) Board of Directors has elected officers for 2013. Ron Alverson, Chairman of Dakota Ethanol LLC, was elected President, replacing Lars Herseth, who served as ACE President since 2010.

Alverson raises corn and soybeans with his son Keith and his brother Larry on their farm near Madison, SD. He is a founding member and past president of the South Dakota Corn Growers Association and served on the National Corn Growers Association board of directors in 1991 and 1992. Alverson was a founding member and chairman of Lake Area Corn Processors LLC, the owner entity of Dakota Ethanol LLC, and continues to serve as Chairman of LACP. Dakota Ethanol was the first farmer-owned ethanol plant in South Dakota.

“I’m thrilled to be the new Board President of ACE, I think it’s a great organization, and I am enthusiastic about working with ACE members and staff on a forward-looking action plan to expand market access for ethanol, win the battle over the RFS, and secure the profitable future for our industry,” said Alverson.

Other officers elected by the ACE board for 2013 include Brian Wilcox of the Nebraska Public Power District as Vice President, Duane Kristensen of Chief Ethanol Fuels as Secretary, and Owen Jones of Full Circle Ag, a farmer-owned cooperative, as Treasurer. The officers will be joined by Herseth and Scott Parsley of East River Electric Cooperative on the ACE Executive Committee.