Deere Provides Look at Ethanol in 2015

John Deere SessionOne of the most well attended learning sessions at the 2008 Commodity Classic in Nashville was “Starch and Cellulose as Ethanol Feedstocks” sponsored by John Deere.

Deere’s principal scientist for renewable energy John Hickman told the crowd that by the year 2015, most ethanol will still come from starch - or corn - but the growth to cellulosic ethanol will include some intermediary steps.

John HickmanAccording to their calculations, Hickman says the United States could produce a 15.6 billion bushel corn crop seven years from now. “If we grow as much corn as we did in 2007 and the yield increases go from where they have in the last ten years, that would be possible in 2015,” he said. “That could then produce 19 billion gallons of ethanol and still provide exports and other uses for corn.”

Down the road, as cellulosic technology improves, Hickman says growers may have to make different planting decisions. “They have a period of time yet. The first cellulosic plants will be rolling on board in 2010, 2011. We’re going to learn a lot from those first plants. That will give growers much better signals than they have today.”

Veteran farm broadcaster Stewart Doan of Little Rock, Arkansas interviewed Hickman after his presentation. Listen to that interview here:

Ethanol Baby

Baby EthanolThere were lots of babies at the 2008 Commodity Classic but this one really caught our attention.

Her name is Danica - after Indy race car driver Danica Patrick - and her little onesie featured the IRL logo on the front and on back it said the “Smell of Ethanol.” How cute is that! Her parents were letting her pose on top of the ethanol display in the Pioneer booth, prompting oohs and ahs from the passers-by.

Baby EthanolThe E85 sticker on her shoulder was supplied by the National Ethanol Vehicle Coalition.

Attendance at this year’s Commodity Classic in Music City was record-breaking, according to the final numbers:

4,534 Total Registration (record)
145 Total Media (record)
847 Trade Show Booths (record)

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

John Deere Ethanol Risk Protection

John Deere Risk Protection has introduced the industry’s first-ever Ethanol Policy by providing coverage to corn producers who have delivery contracts for the purpose of ethanol production.

John DeereThe policy was officially introduced at the end of January and Deere has been talking with growers at events during the last month, including the Farm Machinery Show and last week’s Commodity Classic.

Deere held a press conference at Classic where Dennis Daggett, Director of Marketing for John Deere Risk Protection, explained the policy to the ag media.

Dennis DaggettVery simply, the policy insures yield shortfalls below contracted volumes in the event the price to replace the corn rises above the federal crop insurance coverage. The policy is being offered in Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. “We offered it where the majority of the active ethanol plants are in existence today,” Daggett says.

Since they introduced the policy, Daggett says there has been a lot of buzz in the industry. “We have fairly modest expectations on the product itself because we know that there is a very specific type of farmer who would be interested in this product, a farmer who actually contracts more than 50 percent.”

Daggett says the policy is beneficial for the ethanol plants because it allows them to actually work with the farmer in case there is a shortfall on their delivery contract. “We think this is a win for the ethanol plants because it stabilizes their input of grain and stabilizes their relationship with the farmer.”

Listen to an interview with Dennis about the ethanol policy here:

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Deere Running on Biofuels

John Deere SessionJohn Deere sponsored one of the most popular and well attended Learning Center sessions at the 2008 Commodity Classic in Nashville this week.

“Starch and Cellulose as Ethanol Feedstocks” discussed the importance of starch as today’s primary ethanol feedstock, harvesting challenges for increased corn yields as well as cellulose, and how to increase demand for biofuels.

Don Borgman, director of Agricultural Industry Relations led the discussion on issues for future production and distribution of ethanol, looking out to the year 2015. “Mostly what we are concerned about it keeping our eye on that demand ball,” said Borgman.

Don BorgmanHe says there are two critical issues - making sure we increase the number of E85 pumps nationwide and increasing the number of flex-fuel vehicles on the road. “If we get those two things done, we ought to be able to keep up fairly well with the supply,” he said.

Borgman says John Deere has an interest in helping the biofuels industry not just because of their customer base, but also from an energy security standpoint and an environmental standpoint. They are helping by promoting the use of biodiesel blends in their equipment and by looking towards the future for cellulosic ethanol and developing equipment to harvest the next generation of dedicated energy crops.

Listen to an interview with Borgman here:

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Ag Secretary on RFS

Secretary of Agriculture Ed Schafer has only been on the job officially for about a month but he has been busy making the rounds of farm meetings. During his appearance at the 2008 Commodity Classic on Friday, Schafer expressed great optimism for agriculture - record prices, record farm income, record exports and the blending of energy and agriculture.

Ed SchaferDuring a press conference following his appearance at the general session, Schafer fielded questions from farm media about biofuels and ethanol in particular. Asked if there was any chance that there might be a delay in implementing the new Renewable Fuels Standard because of recent reports claiming that biofuels are bad for the environment, Schafer said no.

“I don’t because no matter what happens it’s not going to have an effect this year,” Schafer said. “We are getting to the point of topping out on ethanol production, not because of production capacity, but because of our ability to deliver it in the current infrastructure.”

“The research dollars are going in to move from ethanol to the cellulosic generation,” Schafer continued. “While we are playing catch up on non-price distorting feedstocks for ethanol, which is going to take some time, we do think we are arriving at the levels this year where we are going to see a leveling off of (commodity) prices.”

Listen to Schafer’s comments here:

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

Ethanol is a Classic Hit

You can’t turn a corner at the 2008 Commodity Classic trade show without seeing something about ethanol. A record crowd is attending the Classic this year - more than 4450 people and over 140 media are in Nashville and the corn-fed enthusiasm is driven in a large part by the ethanol buzz.

Everybody who is anybody in the ethanol industry is here - the Ethanol Promotion and Information Council, Renewable Fuels Association, American Coalition for Ethanol, National Ethanol Vehicle Coalition, 25 by ‘25 and more. Not to mention that ag input dealers from machinery to seed are touting products to help growers produce more corn per acre for both food and fuel.

But its only just begun. Friday will feature Secretary of Agriculture Ed Schafer during the general session followed up by a John Deere Learning Center Session on Starch and Cellulose as Ethanol Feedstocks. And Saturday night everybody will be “Corn Fed” with a concert featuring the lovely and talented Shannon Brown.

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

2008 Commodity Classic Photo Album

Biofuels Focus at Classic

The 2008 Commodity Classic is getting underway here in Nashville at the Opryland.

Farm Bill and biofuels are the main topics of discussion at this meeting of corn, soybean and wheat growers. Today is mainly commodity group delegate meetings and tours for those not involved in the business sessions. Activities really get rolling Thursday afternoon with the opening of the huge trade show.

After Friday’s general session, John Deere will be holding a Learning Center on “Starch and Cellulose as Ethanol Feedstocks.” The session includes “a realistic timetable for cellulosic development and the importance of starch as today’s primary ethanol feedstock.” Should be a popular and interesting session.

There will also be a Learning Center on Wind Energy as Another Cash Crop, sponsored by the National Renewable Energy Laboratory.

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

2008 Commodity Classic Photo Album

Classic Commodity Conference

The 2008 Commodity Classic kicks off this week in Nashville at the Opryland.

Biofuels will be in the spotlight throughout the conference and the yet-to-be-completed Farm Bill will likely be a major topic of conversation as new agriculture secretary Ed Schafer will address the crowd on Friday during the general session.

Saturday night’s entertainment at the Grand Ole Opry featuring “Corn Fed” Shannon Brown - sponsored by VeraSun following up on her appearance at the National Ethanol Conference in Orlando - along with John Conlee, Joe Diffie, Carolina Rain and The Steeldrivers.

The Commodity Classic is the combined convention and trade show of the American Soybean Association, the National Corn Growers Association, and the National Association of Wheat Growers. Next year it will be even bigger when the National Sorghum Producers join the show.

Domestic Fuel coverage of the 2008 Commodity Classic
is sponsored by: John Deere

25 x ‘25 Action Plan

25x25 Leaders from a broad alliance of agricultural, energy, environmental, business and labor groups recently rolled out a set of specific recommendations for reaching an ambitious renewable energy goal: 25 percent of the nation’s energy supply from renewable sources by 2025. Members of the 25x’25 Alliance were at the recent Commodity Classic to answer questions and discuss goals with members of the agriculture industry.

The 25x’25 Action Plan: Charting America’s Energy Future was written by the 28-member 25x’25 Steering Committee based on the consensus reviews and policy recommendations of the more than 400 organizations that have endorsed the 25x’25 vision.

25x25 logoThe Action Plan, which was presented to Congressional leaders, contains 35 specific recommendations that “would cost just five percent of what America spent on imported oil in 2006 and would result in a dramatic increase in new jobs and economic activity, along with significant reductions in oil consumption and global warming emissions.”

The recommendations include expanded research and development for cellulosic biofuels and long-term incentives for renewable electricity generation; new infrastructure for expanding delivery of renewable fuels and renewable energy; new program to ensure increased availability of flex-fueled cars; a new requirement for use of renewable energy by the federal government; new mechanisms for renewable energy credit trading among states, and new funding for renewable energy systems.

Let the Market Sort it Out

Cindy and Dean To anyone concerned about high grain prices, the impact of biofuels on the livestock industry, or whether we will have enough corn to meet all needs, Dean Kleckner has just one message: “Let the market sort it out.”

Kleckner is the chairman of Truth About Trade & Technology, an industry group that is pro-trade and pro-biotechnology. He is also a hog and grain farmer from Iowa who served for 14 years as president of the country’s largest farm organization, the American Farm Bureau Federation. During an interview at the 2007 Commodity Classic, he said his biggest concern about the biofuels boom and competition for corn is the government.

“Will there be enough corn?” he asks. “My short answer is yes, if the darn government just stays out of it.” In other words, let the market sort it out. “The market will make the decisions if we let it.”

He expects the next few years to be tough for livestock producers with higher grain prices. As a hog farmer, Kleckner says “I’m concerned about it,” but he believes it will all work out in the long run.

Listen to an interview with Dean here: Listen to MP3 File Dean Kleckner Interview (12 min MP3)

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