Domestic Fuel

I’m attending the 2007 Alltech International Feed Industry Symposium and covering it primarily on Domestic Fuel sister site, AgWired. I thought you might enjoy hearing an interview I conducted with Dr. Pearse Lyons, founder of Alltech. This is a company that produces animal feed additives. The theme of their Symposium is “The New Energy Crisis: Food, Feed, or Fuel?” Right away I was intrigued to see what his take would be on the price of corn and the mandate for ethanol production.

He says that it’s ironic that back in 1980 when he founded his company they were involved in brewing and making alcohol. From there though the company branched out into the animal feed additives arena. Now he feels like things are coming full circle since the challenge in producing ethanol is how to make the process more efficient while developing processes using new biomass products instead of corn. He sees a really bright future for Alltech as a leader in this business.

I also like his comments about our government and the decisions that are driving the development of ethanol production. As he says, it doesn’t matter where you stand on certain issues, the government isn’t stupid. The mandate to increase production of biofuels like ethanol is forcing companies like his to increase the pace at which they’re developing products and processes to meet the mandate. It’s not only good for business but it means we’ll become less reliant on dwindling supplies of oil and other traditional energy sources much faster. That’s also good for our environment and our country.

You can listen to my interview with Dr. Pearse Lyons here: alltech-symposium-07-lyons.mp3

If you’re interested I’m putting all my photos at the Alltech Symposium in the Alltech 2007 International Feed Industry Symposium Photo Album.

Podcast: Play in new window | Download (4.3MB)

There’s been a lot of talk lately about how the increased demand for ethanol and biodiesel will affect farmers and ranchers using the same stocks for feed for their animals. The National Institute of Animal Agriculture plans to make the topic a top priority at its annual meeting, April 2-5 in Sacramento, California. From the group’s press release:

“With all of the emphasis on BioFuels, what impact will that have on animal agriculture?” questions Jim Fraley, chair of the Annual Meeting Planning Committee. “Will it mean higher feed costs? If so, how will we pass those costs along? These will be the questions we’ll be examining at the annual meeting” Fraley says.

Organizers plan to talk about this subject from day one and strongly encourage anyone interested to register early and plan to get there for the opening session. More information is available at the NIAA website: www.animalagriculture.org.

St. Louis-based Farmergy… a provider of technology to help farmers and ranchers “get off the grid”… has bought Missouri Valley Renewable Energy, a company touted as a leader in Missouri for renewable energy sources. MOVRE was founded in 2000 by Henry Rentz, after an extended power outage left his farm and home without the capability to pump water or provide refrigeration. According to a Farmergy press release, Rentz, the former CEO of MOVRE, now will join Farmergy as a part of its management team:

“A critical component of our success at Farmergy will be our ability to effectively install a vast array of clean energy solutions for farmers and ranchers across the country,” says Mark Green, Farmergy president and chief executive officer. “Henry’s intimate knowledge of both agriculture and the renewable energy industry will be invaluable to us as he designs and implements our national certified installer program.”

The release goes on to say that Farmergy-certified installers will make sure that customers get the best installation for whatever energy source they choose.

It seems like everywhere I go I find 25X’25. No one was home here in this booth at the combined International Poultry Expo and International Feed Expo going on in Atlanta, GA but I got a picture anyway.

I’m here for reasons other than renewable fuel but you can’t escape it. For poultry producers what’s happening in the renewable fuels business has some concerns as you’ll hear in my next post with an economist.

I’ll be here for a couple days so I’m sure I’ll find something more of interest. For example, I know there’s a seminar on the schedule specifically on ethanol. I’m going to try to attend.

Despite a dry summer in many parts of the country, there’s still plenty of corn to go around.

USDA’s National Agricultural Statistics Service September crop report calls for an 11.114 billion bushel corn crop for the current marketing year, which would be the second-largest crop on record.

The forecast is one percent higher than last month report and up just a tick from 2005′s 11.112 billion bushel crop. 2004 was the record at 11.8 billion bushels.

National Corn Growers Association President Gerald Tumbleson says, “With last year’s carry over and this year’s projected second-largest crop on record, it is clear that corn producers will produce more than enough corn to supply all markets this year.”

One of the big announcements here at the Farm Progress Show on opening day was from Bunge and Dupont who have a biotech alliance. Basically they’ve created a new brand, “Treus.” This is being done to “reflect their expansion of the companies’ soy collaboration beyond food and nutrition products to include industrial applications, biofuels and other opportunities.”

Low linolenic soybean oil produced from Pioneer® brand soybean varieties, and previously marketed as NUTRIUM Low Linolenic Soybean Oil, will now be marketed as TREUS™ Low Linolenic Soybean Oil.

DuPont has a significant effort to deliver new technologies to the growing biofuels market, which includes improving biofuel production through improved seed and crop protection products; developing new technologies to allow conversion of cellulose to biofuels; and developing next generation biofuels, including biobutanol. In addition to developing corn hybrids for ethanol, DuPont subsidiary Pioneer Hi-Bred International, Inc., is characterizing Pioneer® brand soybean varieties for oil content to determine impact on biodiesel production.

I interviewed Troy Hobbs, Business Manager, Bunge/Dupont Biotech Alliance. He describes the changes in more detail and what this means for producers. Troy is pictured on the left of the Treus sign. On the right is Jason Klootwyk, Bunge, Asst. Commercial Manager, Grain Division.

You can listen to my interview with Troy here: Troy Hobbs Interview (3 min MP3) Note: I wasn’t using my regular recorder but the audio is acceptable.

Full Release

Podcast: Play in new window | Download (2.0MB)

The American Agriculture Movement is organizing a “Drive for American Bio-Energy for Jobs, Family Farms, and National Security.”

According to the AAM, a “small group of patriotic family farm advocates, business people, and concerned citizens” will travel east from Kansas City to Washington, D.C. in antique tractors and cars “in an effort to raise public awareness about the contribution agriculture can make to help bring energy security to the American people.” They plan to converge on the Mall in DC on October 5.

AAM is supporting the Declaration of Independence from Foreign Energy, which reads:

When in the course of human events, it becomes necessary for one people to dissolve their dependence on foreign energy which has connected them to others, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and commerce demand requires that the Congress of the United States of America declare a policy that ensures this energy independence. Only then can Life, Liberty and the Pursuit of happiness be assured to future generations! We hold these truths to be self-evident that all energy sources are not created equal; that some are endowed by their creators with certain unalienable characteristics; that among these are abundance, renewability, and environmental compatibility and that, to secure these characteristics the federal government must provide support for renewable biomass resources. For America to have secure and affordable energy the supply must be diverse, decentralized, domestic and renewable and provide non-monopolistic marketing systems to assure energy Independence for the people. To this end we the undersigned demand the passage of the American Renewable Biomass Energy Security Tax-credit!

Hello from the Farm Progress Show in Amana Colonies, IA. This is one of the biggest farm shows in the United States. Over 460 companies are on display out here in the middle of a corn field. The weather is not cooperating yet. It’s raining and muddy but I’m sure it will clear up over the next day or so.

I’m covering the event on our AgWired website and my coverage is sponsored by Monsanto. Before things got kicked off this morning I met Steve Peterson, Monsanto business manager for their Processor Preferred program. Steve’s pictured here during an interview with WITY in the media tent. In my interview with Steve he describes how this program has developed about 90 varieties of corn that are yielding up to 2 to 4 percent more ethanol per bushel than conventional hybrids. He says this helps corn growers get a premium for their crops.

You can listen to my interview with Steve here: Steve Peterson Interview (4 min MP3)

Podcast: Play in new window | Download (1.8MB)

Wayne Teddy is the President of Cargill’s Grain & Oilseed Crush Supply unit for North America. He was on hand this morning at the Paseo Biofuels announcement.

I got to interview Wayne after his presentation. We moved into the shade because it was another very hot day in Missouri. Wayne says that while the equity drive is taking place for the new company there will be some negotiating of the final details of the joint venture and expects a groundbreaking by the fall. He says the proposed joint venture facility will mean more jobs, more demand for Missouri soybeans and be a flagship facility for Cargill.

I also asked him about whether there is a food vs. fuel concern on the part of Cargill. He says the supply of feedstocks is currently sufficient to meet the demands of both. He acknowledged that some people perceive Cargill as fueling this debate but that although it is something that should be discussed, Cargill is investing very heavily in biofuels and that it’s not an issue of Cargill being anti-biofuels but that agriculture view the whole issue of biofuels from a reasonable perspective.

You can listen to my interview with Wayne here: Wayne Teddy Interview (5 min MP3)

Podcast: Play in new window | Download (2.4MB)

A Missouri-based company is getting ready to give away a new Ford F-150 flexible fuel truck. It’s MFA Oil Company and they’ll be announcing full details on Friday, May 26. Wish I could be there.

Basically, MFA Oil is partnering with Mid-Missouri Energy to help make corn-based E85 more affordable and accessible around the state. At the announcement event on Friday, MFA Oil President Jerry Taylor will explain “the numerous benefits of this project, including how it can potentially decrease Missourians dependence on foreign fuels, lower their prices at the pump, provide a boon to the corn farming industry and improve air quality.”
Read the rest of this post…

Small and limited resource farmers as well as any producers might be interested in USDA’s “Energy In Agriculture, Managing The Risk” conference in Kansas City, MO on June 27-28. You can register online for $90 before June 5. Here’s a draft agenda (pdf file). Some travel scholarships are available if applied for prior to May 30.
Read the rest of this post…

Biodiesel fans can cheer New Holland today. They are the first equipment manufacturer to fully approve B20, a 20 percent blend of biodiesel, in their tractors. The release I received came from the National Biodiesel Board which is appropriately happy.

Ed Hegland (pictured), a soybean grower in Appleton, Minn., has waited for this news for years. The maker of his tractor, New Holland, has approved the use of 20 percent biodiesel (B20) in all of its equipment using New Holland engines. It is the first Original Equipment Manufacturer (OEM) to announce full support of B20 in all of the diesel engines that it produces.

“I am elated that New Holland has taken this step to show support for biodiesel, a farmer-grown fuel,” Hegland said. “Their customers asked for it, and they listened. I truly hope others will follow suit soon.”
Read the rest of this post…

Since it's National Agriculture Day, we want to say thank you to all our farmers who are keeping us fed with the most abundant and safe food supply in the world. This is the day for the announcement of the winner of the New Holland "Down on the Farm" Classic iPod Keepsake Contest. Thanks to all the people who entered online or at the New Holland booth at Commodity Classic. The random drawing has taken place and . . .

The winner is Marcus Spotts, a corn/soybean farmer from Nora Springs, IA. Congratulations to Marcus.

I caught Marcus on his mobile phone at lunch time to give him the news. You can listen to a portion of my conversation with him here: Telling Marcus He Won (3 min MP3)

I want to thank New Holland and Michael Peterson for working with us on this project. It has been fun and we are looking forward to doing it again soon.

Please keep our video iPod keepsake idea in mind. It makes a great and truly unique giveaway item! Can we create one for you?

While Cindy is holding down the fort, I’m attending the Pioneer Hi-Bred, “Science of Solutions” media event in Johnston, IA. In the first interview I conducted ethanol came up. I was speaking with Bill Kuhn, Pioneer Research Director. Bill mentioned ethanol and I asked him how Pioneer is developing corn varieties that have traits that would increase ethanol production on a per bushel basis.

You can hear an excerpt of my interview with Bill here: Bill Kuhn Interview Excerpt (2:01 MP3 File)

Podcast: Play in new window | Download (946.7KB)

If you’ve wanted to own an Apple video iPod then here’s your chance. It’s the New Holland “Down on the Farm” Classic iPod Keepsake Contest. One lucky winner will be drawn to win a new 30GB video iPod. The contest starts now and will run through March 15 with the winner being announced here and on all ZimmComm blogs on March 20, National Agriculture Day.

In case you’re not familiar with the Commodity Classic, it’s the combined annual meeting and trade show of the National Corn Growers Association and American Soybean Association. Both organizations with a stake in the renewable fuels industry. I’m sure there will be some news of interest for you there and I’ll be blogging the conference.

All the pictures I take and video and audio I record at Classic will be pre-loaded onto the iPod. One of those things will be country music star Michael Peterson’s performance that’s being sponsored by New Holland. Once we know who the winner is Michael will record a personal message which we’ll also load onto the iPod. And, there’s more. We’ll also load Michael’s newest CD, “Down on the Farm,” which you can currently only purchase from your local New Holland dealer. It won’t be out in stores until later this spring.

So, here’s how you enter. We’ve got an online form that you’ll need to fill out and just click on the submit button when done. There’s only a few questions. It’s fast and then you’re entered. You’ll get a confirmation email so that you know you’ve been entered. Or, if you’re at Classic, you can stop by the New Holland booth and enter there.