“The market for ethanol has grown exponentially over the past decade, thus utilizing an abundance of corn to meet the already-present need for a renewable, domestic biofuel,” said Chad Willis, a Minnesota corn grower who serves as chairman of the committee. “Now, we face a myriad of challenges and opportunities as those in the industry continue to innovate while some outside of it continue attempts to deny ethanol’s incredible value to our nation.”

“After years of hearing rehashed iterations of the food-and-fuel debate, we found the tour of LifeLIne to be both interesting and inspiring,” Willis said. “Companies such as this demonstrate that, through a mixture of creative thought and hard work, we can find new ways to use corn even more productively and solve an array of societal needs.”

The committee of farmer leaders from around the Corn Belt also had the opportunity to meet the NCGA’s new Director of Biofuel Programs and Business Development Pam Keck, who is a scientist and educator with more than 20 years of experience in the agricultural and biofuels industry, academia and not-for-profit research.

Keck most recently contracted with Monsanto, coordinating an outreach program that brought together schools and scientists. She has previously taught chemistry at Southern Illinois University, Edwardsville and at Lewis and Clark Community College. She has also served as assistant director of workforce development and scientific projects at the National Corn-to-Ethanol Research Center.

Steve Pittman, Director of the Indiana Ethanol Producers Association and General Manager of POET-Portland, is especially excited about the future of the cellulosic ethanol industry. “We see corn ethanol still stay as the basis of what we do and then we’ll see growth in cellulosic over the next ten years,” Steve said. “We don’t see corn going away. The concept is to reap the corn stover off the same fields we’re harvesting corn off of. We’ll have another opportunity for farmers to sell another product without having to grow another crop.”

Listen to an interview with Pittman here: Steve Pittman interview

Right now, infrastructure is important to expanding consumer choice, according to Rosalind Leeck, Director of Biofuels for Indiana Corn Marketing Council (ICMC). “Our farmers believe that expanding infrastructure to allow consumers more access to ethanol-blended fuel is crucial to the success and growth of the industry,” said Leeck, adding that ICMC is funding a program to encourage fuel retailers to add flex fuel pumps that offer mid-level blends, like E30, in addition to E85 to drivers of Flex Fuel Vehicles. “Through this program, 14 flex fuel pumps will be added to fuel stations across the state over the next several months.”

Listen to an interview with Rosalind Leeck here: Rosalind Leeck interview

Growth Energy CEO Tom Buis agrees that building infrastructure is critical to the increasing consumer choice. Buis told Gary Truitt of the Hoosier Ag Today (HAT) that he is optimistic about the future of ethanol in Indiana and nationwide. “Unlike Big Oil, ethanol is not stuck in the past, we’re focused on moving forward. With the introduction of E15 into the marketplace and increased build out of Flex Fuel pumps, American consumers will finally have choice when they fill up at the pump,” Buis says. “We know we can do more, we know it’s good for America.”

Listen to Truitt’s interview with Buis here: Tom Buis interview

Indiana produces 1.1 billion gallons of ethanol every year in 13 different ethanol plants across the state. Thanks to Gary Truitt of HAT for attending the Indiana ethanol forum and provided the photos and audio interviews.

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

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

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.

The panel also included Randy Ives, director of ethanol services for the commodity management firm Gavilon Group.

Listen to or download the entire panel discussion here: Ethanol and Livestock panel

Photos from 2012 Iowa Renewable Fuels Summit

“We applaud the President’s announcement that he is going to push for homemade, U.S.-energy after 40 years of being addicted to foreign oil,” said Tom Buis, CEO of Growth Energy. “We have to move ahead with American ethanol as part of that solution.”

“The U.S. biodiesel industry is proving that we can accomplish the president’s goals of creating jobs while building a clean-energy economy,” said Anne Steckel with the National Biodiesel Board. “That’s why we’re calling on the Administration to quickly finalize the delayed EPA rule for boosting biodiesel use under the Renewable Fuel Standard in 2013.”

National Corn Growers Association Chairman Bart Schott said they were pleased to hear President Obama’s continued commitment to the nation’s energy independence. “As family corn farmers have risen to the challenge to meet our nation’s energy needs, we are hopeful the direction the President outlined offers similar opportunities for others to expand our energy independence,” he said.

“Working with the President, we can help America become less dependent on foreign oil and a smarter consumer of energy,” Adam Monroe, President of Novozymes North America, said. “Innovations like advanced biofuels can play a major role in the President’s vision but we need steady policies like the Renewable Fuel Standard – and we look forward to working Congress to preserve them.”

During the NASCAR Preview fan event in Charlotte, N.C. this weekend, American Ethanol announced that it will continue relationships with Richard Childress Racing and RAB Racing for the 2012 season. This is the second year for the racing partnership between NASCAR, Growth Energy and the National Corn Growers Association (NCGA).

“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.

Austin Dillon, 2011 NASCAR Camping World Truck Series Champion, will drive the No. 3 Chevrolet during the 2012 NASCAR Nationwide Series season with American Ethanol serving as the primary sponsor for six races as well as one race in the NASCAR Sprint Cup Series in 2012.

Dillon, pictured here with team owner (and grandfather) Richard Childress, is looking forward to representing the ethanol industry. “I’m proud to carry the American Ethanol colors in NASCAR,” he said. American Ethanol will also be an associate sponsor for the entire RCR family of drivers.

Kenny Wallace, a driver who has been a strong promoter of corn growers and ethanol over the past year, will drive the No. 09 Toyota Camry in the NASCAR Nationwide Series for RAB Racing. American Ethanol will partner with Wallace for the Sprint Cup Series Daytona 500, as well as five races in the Nationwide Series.

“I’m honored to represent American Ethanol. 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 interview with Wallace)

“Through our partnerships with Austin Dillon and Kenny Wallace, we are telling NASCAR and its fans that American Ethanol is committed to the sport,” said Growth Energy CEO Tom Buis. “These drivers are ideal ambassadors for the American Ethanol team and will help tell the story of how American-made ethanol creates jobs, cleans our air and fosters energy independence.”

Representing a wide array of ethanol supporters, from farmers to bio-engineering firms, American Ethanol was established by Growth Energy and NCGA with NASCAR starting with the 2011 racing season, the same year that NASCAR switched its fuel to Sunoco Green E15.

Listen to prior interviews with Childress, Growth Energy and NCGA.

The U.S. Department of Agriculture has approved a conditional commitment for a $25 million guaranteed loan under the Biorefinery Assistance Program for Fiberight to build a biorefinery in Blairstown, Iowa.

The loan will be used to construct a 55,000 square foot facility that will produce cellulosic ethanol by converting municipal solid waste and other industrial pulps into advanced biofuels, as well as using conventional renewable biofuel derived from seed corn waste. When operational, the facility is expected to produce approximately 3.6 million gallons of cellulosic ethanol per year. The process will use a cellulosic microbe to produce up to 15 percent more ethanol than traditional fermentation technology, and reduce energy inputs in the fermentation and distillation process. Fiberight estimates the project will create 38 jobs and save 16 jobs.

”Advanced Biofuels are going commercial – and the innovation behind turning trash into biofuels demonstrates how our industry can create jobs and solve our nation’s energy needs,” says Adam Monroe, President of Novozymes North America. ”Novozymes is proud to be a partner to this project, supplying the enzymes to turn household and office waste into advanced biofuels. We applaud the federal government for its leadership in helping bring biofuels to market.”

Biotech company Novozymes is one of Fiberight’s partners in the project. ”Advanced Biofuels are going commercial – and the innovation behind turning trash into biofuels demonstrates how our industry can create jobs and solve our nation’s energy needs,” says Adam Monroe, President of Novozymes North America.

Under the conditional commitment, Fiberight must meet specified conditions before the loan guarantee can be completed. Other funding comes from the State of Iowa. Fiberight also received a $2.5 million grant from the Iowa Power Fund in 2010. The company will work with the Benton County landfill to supply a portion of the feedstock for the project. The total project cost is estimated at $59.5 million. Fiberight, LLC was incorporated in 2007 for the purpose of converting an existing ethanol facility into a cellulosic ethanol facility in Blairstown.

Texas Corn Producers Board member Wesley Spurlock of Stratford has been speaking to groups across the Midwest explaining how U.S. corn farmers continue to grow a crop abundant enough to meet all growing demands and he has gained attention from industry publications looking to find the truth behind the headlines.

“To put it simply, growth in demand from the ethanol industry has mirrored an increase in productivity that yields larger corn crops,” Spurlock said. “We are still supplying the livestock industry with the corn that they need for feed, but we now have a market that utilizes an increasingly abundant resource to help solve our energy problems also.”

Listen to an interview with Sprulock in the National Corn Growers Association’s podcast series “Off the Cob” discussing how corn farmers are growing a larger crop on the land already in production while decreasing inputs used. During this interview, he also discusses the innovations facilitating increased yield trends, how the Texas drought plays a major role in recent cattle industry shifts, and the amazing story of modern American agriculture.

“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. “Corn farmers are good stewards and advocates for thoughtful, fair strategies that will improve our environment through the advancement of biofuels. We hope that this ruling will lead to an inclusive discussion where regulators join other stakeholders to find effective renewable energy solutions.”

The judge ruled that the LCFS discriminates against out-of-state corn-derived ethanol and impermissibly regulates extraterritorial conduct and that the California Air Resources Board (CARB) failed to establish that there are no alternative methods to advance its goals of reducing GHG emissions to combat global warming.

Our new ZimmPoll is now live. We’re asking the question, “What is your Christmas/Holiday entree?” The holidays are almost here and I’ll be you’ve got plans made already. We sure hope you have a happy holiday time with family and friends.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

JW Grain holds 1.9 million bushels of state-licensed grain storage and is located approximately 40 miles from the GPRE’s Central City, Nebraska ethanol production facility.

“We continue to seek out opportunities to expand our agribusiness segment that can bring additional scale to our operations,” stated Todd Becker, President and Chief Executive Officer. “Acquiring facilities to increase our grain storage and merchandising capabilities is an important part of our diversification strategy going forward. Once this acquisition and expansion is completed, Green Plains will have 40 million bushels of grain storage capacity at 15 elevator locations in Iowa, Missouri, Nebraska and Tennessee.”

The acquisition is expected to be completed within 30 days. Green Plains plans to expand the on-site grain storage capacity by up to one million bushels before the 2012 harvest.

“The day-long sessions were designed to provide an exchange of comprehensive DDGS market information, including discussions and analysis of the value of U.S. DDGS,” said Alvaro Cordero, USGC manager of DDGS.

Cordero says they had 200 to 250 people, including buyers and USGC member companies. “This created a good opportunity for buyers and sellers to make connections,” he said.

The conferences, organized in cooperation with FoodChina Company, included presentations on DDGS use in swine, poultry and dairy rations, in addition to quality control, DDGS supply and demand, and pricing.

The United States continues to export a good volume of DDGS to China, despite an anti-dumping case initiated by the Chinese government last winter. U.S. shipments in the January-to-September period were down 49 percent from the previous year but still totaled almost one million metric tons, making China the number two export market for distillers grains.

The latest World Agricultural Supply Demand report estimates the U.S. crop was down 3.5 million tons this year compared to last year, but foreign corn production is expected to be 43.4 million tons higher, with China alone up 7.3 million tons this month based on the recently released government estimates. USDA is now predicting the 2011/12 season-average farm price for corn will be about 30 cents lower than previous estimates at $5.90 to $6.90 per bushel.

On the demand side, corn for food, seed, and industrial use was lowered 5 million bushels and projected corn ending stocks were increased by 5 million bushels to 848 million. Corn for ethanol use remains unchanged at 5 billion bushels, which is slightly lower than last year, despite the fact that ethanol production this year is on pace to possibly be as much as a billion gallons more than 2010.

As we head into 2012, ethanol is like to be the wild card in the corn demand situation with the expiration of the Volumetric Ethanol Excise Tax Credit (VEETC) at the end of this year. “That could potentially change how much ethanol is blended into gasoline,” said USDA chief economist Joe Glauber. “There are mandates in terms of overall production that has to be blended into gasoline, the issue is how much gets produced above and beyond the mandates.” However, industry analysts expect ethanol prices are expected to drop 30-40 cents per gallon at the wholesale level after the blenders tax credit expires, which should serve as an incentive to blend as much if not more.

“Domestically, it will depend on the profitability of ethanol price versus gasoline and whether or not it pays to blend above the mandates,” said Glauber.

It was one year ago last week at the NASCAR Champions Week in Las Vegas that American Ethanol was announced, a partnership that includes Growth Energy and the National Corn Growers Association.

Throughout the 2011 NASCAR season, every race car and truck in the Sprint, Nationwide and Camping World Truck series ran on Sunoco Green E15 as part of the American Ethanol partnership. And every race weekend, NASCAR’s newest special award, the American Ethanol Green Flag Restart Award was given to the participating driver who recorded the fastest average speed on restarts and who finished the race on the lead lap – a reminder of American Ethanol’s dedication to NASCAR’s green initiatives.

At this year’s Champions Week in Las Vegas, Growth Energy CEO Tom Buis gave an overall award to No. 17 driver Matt Kenseth for winning the Green Flag the most times in the 2011 season.

“I appreciate American Ethanol and Growth Energy and Sunoco for making such a great fuel this year,” Kenseth said when he accepted the award. “It worked great, it’s been good for the environment, it’s been good for NASCAR and we appreciated being a part of it.”

According to NASCAR officials and drivers, the E15 fuel blend has met and surpassed expectations – providing increased horsepower with minimal decrease in mileage. In fact, NASCAR’s 2011 Million Mile Report, proved that NASCAR racing vehicles accumulated more than a million miles of practice, qualifying and racing laps on E15 without any problems.

POET has been selling Voilà corn oil for biodiesel and feed markets since January. With its patent-pending technology expanding to a total of six plants, POET has increased its capacity.

POET Biorefining in Hudson, South Dakota, was the first to produce Voilà. Since then, the technology has been installed in five more POET plants, with more on the way in 2012. Plants that are producing corn oil today are POET Biorefining – Emmetsburg, Gowrie, Jewell and Hanlontown in Iowa. POET Biorefining – Laddonia, Mo., will be coming online next week. The six plants’s combined capacity is about 100 million pounds of corn oil per year.

“Voilà has been a very strong part of POET’s business this year, and I’m excited to see more plants getting this technology,” POET founder and CEO Jeff Broin said. “The more we can diversify into new profitable products, the more successful our plants will be.”

Voilà is just another item on POET’s growing list of products created at its plants. In addition to ethanol, POET produced quality products for animal feed including Dakota Gold distillers dried grains. POET also captures carbon dioxide at seven of its plants for sale to beverage producers, and the company last year unveiled Inviz, a zein product used to replace petroleum-based films and coatings.

See more on Voilà from POET in the following video:

Back in August, the Green Scissors Project identified ways the federal government could shave $380 billion from the federal budget over five years. But their $380 billion in proposed cuts included a major error that accounts for more that 10 percent of their suggested cuts – $38.8 billion that they argued the Volumetric Ethanol Excise Tax Credit would otherwise cost between 2012 and 2016. They conveniently ignored the important fact that there will be no VEETC between those years. VEETC expires about a month from now, and corn growers and the ethanol industry have long agreed to let it expire and have since stopped fighting for its renewal.

Let the record show that NCGA and our allies in the ethanol industry have left the playing field on this issue long ago and moved on. Those who continue to play are only showing their own foolishness by not realizing that there is no opponent still on the field and the game was called long ago. It’s time to work together on smart energy policies that promote our domestic economy and energy security.

The highest overall grade went to Newt Gingrich, who scored straight As on every single policy issue. Second in the class was Rick Santorum, who received straight As on energy policies, but faltered under farm programs in the areas of crop insurance and conservation. President Obama received a grade of B, as did Mitt Romney, but the rest of the four major Republican candidates got no more than a C minus. Rick Perry received that grade, while Michelle Bachmann was close behind with a D+ and both Herman Cain and Ron Paul got Ds. Cain in particular failed miserably in the energy policy category and farm programs – getting straight Fs in all those areas. The energy category included three specific areas – Ethanol and Energy Policy Generally; Renewable Fuels Standard; and Ethanol Infrastructure.

“Our purpose wasn’t to endorse any candidate, but instead to give farmers a tool that they could take with them to the caucuses in January,” said Iowa Corn Growers senior policy advisor Amanda Taylor. The survey for candidates was developed in conjunction with the National Corn Growers Association (NCGA) to include ten questions directly related to agricultural issues.

ICGA president Kevin Ross noted that only half of candidates responded to the survey, so the Corn Caucus used other methods to determine the grades. “We tracked interviews, speeches, media quotes and all things related to agriculture, including voting records of candidates who held office,” he said. The candidates who did return the survey were Obama, Cain, Gingrich and Santorum.

Find out more about the Corn Caucus project results from the ICGA website, and listen to a press conference this morning about it here: Iowa Corn Caucus Results

Some 100 farmers are waiting for word on the status of the Biomass Crop Assistance Program (BCAP) in the 2012 federal budget before delivering the bales to POET’s 22-acre biomass storage site in Emmetsburg, where the commercial cellulosic ethanol biorefinery is being constructed.

The biomass harvest is 5,000 tons more than last year and represents an additional 15 contracts with area farmers. POET has a target of 285,000 tons of biomass per year for Project LIBERTY to produce 25 million gallons of cellulosic ethanol per year starting in 2013.

“Biomass harvesting is moving along as planned, and I’m confident we’ll have a large and consistent supply of corn cobs and light stover once Project LIBERTY is running,” POET founder and CEO Jeff Broin said. “Both the farmers and POET Biomass personnel have learned a lot in the last few years about best practices in biomass harvesting, and that experience will pay dividends.”

The goal of these early harvests is to streamline the process for harvest, storage and delivery of biomass to Project LIBERTY. Approximately 300-400 bales will be part of ongoing biomass storage research, and up to 1,500 bales could be used for additional research.

The initiative created a beef cattle advisory committee to work with University of Nebraska researchers to identify research projects that would benefit cattle producers and the Nebraska Corn Board then provided funding for the projects.

“We were very pleased with how everything came together, as it allowed the corn checkoff to fund key research and more quickly advance the understanding of feeding distillers grains to cattle,” said Kelly Brunkhorst, director of research for the Nebraska Corn Board. “While this initiative has ended, the Nebraska Corn Board continues to fund research and further expand our knowledge and understanding of feeding distillers grains to cattle. We believe distillers grains, which are produced by ethanol plants, give Nebraska cattle producers a tremendous advantage in the marketplace, so the more we know the better.”

Studies involved both feedlot cattle and forage cattle. Among the findings for feedlot cattle is the drying distillers grains increases production costs and greenhouse gas emissions and has a less positive an impact on cattle performance compared to using wet distillers grains. Modified distillers grains, meanwhile, is intermediate to wet and dry distillers grains. Understanding this has huge implications for Nebraska as Nebraska cattle producers can utilize wet distillers grains due to the proximity of corn, cattle and ethanol plants. “The research provided excellent results on comparing these types of distillers grains,” said Galen Erickson, a beef feedlot specialist with the University of Nebraska.

For cattle on forage, the study found that the energy value of distillers grains in forage based-diets was a major need by the industry. “Thanks to research conducted through the initiative, this is now known and is well established,” said Aaron Stalker, a beef range specialist with the university. The comparison was also made to other major energy supplements in forage diets, such as corn.

Brunkhorst said continued research is necessary as ethanol production technology continues to advance and new techniques like extracting corn oil for other uses results in changes to the make-up of the distillers grains.

Once again, the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA) are teaming up for the Export Exchange 2012, an international trade conference focused on the export of U.S. coarse grains and co-products, including distiller’s dried grains with solubles (DDGS) and corn gluten. The last such event was held last year about this time in Chicago.

“Export Exchange 2010 was a huge success,” said Wendell Shauman, USGC chairman. “People from all around the world gathered in one central location to make deals and get information regarding these vital commodities. Business contacts made during the conference are still being used today.”

Export Exchange 2012 will be held Oct. 22-24 at the Minneapolis Marriott City Center. Additional information will be posted at www.exportexchange.org as it develops.

A jury in the US District Court for the Western District of Wisconsin determined that Novozymes patent is valid and ordered Danisco to pay damages of more than $18 million for infringement. The jury also found Danisco’s infringement to be willful but the jury’s decision is still subject to the judge’s affirmation and possible appeals.

Novozymes’ patent covers certain alpha-amylase enzymes for use in the biofuel and starch industries. The infringing products have primarily been used to produce ethanol from corn starch in the United States. Novozymes filed the lawsuit against Danisco in May 2010. Danisco was acquired by DuPont earlier this year.

The No. 33 Richard Childress Racing Chevrolet race car will feature a special-edition American Ethanol paint scheme at the race and will be driven by American Ethanol spokesman and recent Talladega race winner Clint Bowyer. In addition, the American Ethanol brand will be featured on-track and accompanied with a broadcast in-car camera on Sunday.

“This branded race car design raises American Ethanol’s profile in a powerful way, especially coming off Clint Bowyer’s win last week in Talladega,” said Tom Buis, CEO of Growth Energy. American Ethanol is a partnership between NASCAR, Growth Energy, and the National Corn Growers Association.

National Corn Growers Association NASCAR Advisory Committee Chair Martin Barbre says they are excited about the high profile ethanol will have in the upcoming race. “Of course, we again congratulate our spokesman on his major victory last week. Now, tens of millions of fans across the country will be keyed into Clint as he again shows the incredible performance of E15 as it fuels him back into victory lane again.”

All NASCAR series races this year have been powered by 15% ethanol. “The transition to E15 has been seamless and overwhelmingly positive for myself and my team, and I am honored to have American Ethanol on the No. 33 Chevrolet this weekend,” said Bowyer. “I support American farmers as they strive to develop energy independence for our country and I look forward to representing American Ethanol both on and off the track this weekend at Martinsville.”

The Martinsville Speedway Sprint Cup Series race will be on ESPN beginning at 1:30 Eastern at Martinsville (Virginia) Speedway.

One report came from the non-profit organization Better Markets, which concluded, “Research analyzing commodity markets for the last 27 years shows that Wall Street’s speculative trading through commodity index funds is causing market disruptions, interfering with price discovery, increasing the costs for businesses to hedge, and needlessly pushing prices higher for all Americans.”

A second report from economic analysis firm Cardno Entrix had similar findings, concluding that commodity prices are “likely higher than justified purely by fundamentals and the commodity markets have become more volatile as the volume of trading by index funds and other non-commercial traders has increased sharply.”

In examining the activity of speculators in the corn futures market in the context of supply and demand fundamentals, the Cardno Entrix report found that “speculation is a major factor behind the recent sharp increase in both the level and volatility of corn prices.”

At this week’s CFTC meeting, federal regulators decided to cap the volume of futures trading for 28 different agricultural commodities, energy and metals in the hopes of limiting the impact of speculative trading on consumer prices.

Corn production is now forecast at 12.4 billion bushels, down 1 percent from the September forecast and down slightly from the 2010 production estimate, but still expected to be the fourth largest production total on record. Yields are expected to average 148.1 bushels per acre, the same as expected last month, which would be the lowest average yield since 2005.

Beginning stocks for 2011/12 are raised 208 million bushels from the previous projection based on the September 1 stocks estimate. USDA projected U.S. corn stockpiles at the end of the 2011-12 marketing year Aug. 31 at 866 million bushels, up 29 percent from a previous forecast but still the lowest since 1996. Corn supplies for 2011/12 are forecast 144 million bushels
higher.

The estimate of corn use for ethanol and by-products remained the same in the WASDE report at 5 billion bushels.

The organizations were reacting to a bill introduced by Representatives Bob Goodlatte (R-VA) and Jim Costa (D-CA) that would reduce or eliminate the volumes of renewable fuel use required by the Renewable Fuels Standard (RFS) based upon corn stocks-to-use ratios.

The groups point to a recent analysis by economists at the University of Wisconsin and Iowa State University that found growth in ethanol production reduced gasoline prices by an average of $0.25 per gallon, or 16 percent, over the entire decade of 2000-2010. “In 2010, for example, the authors found that the use of ethanol reduced wholesale gasoline prices by an average of $0.89 per gallon,” the letter stated, adding that the result of an immediate reduction in ethanol output “would be a dramatic increase in U.S. gasoline prices and the resulting increase in U.S. gasoline imports would also cause world gasoline prices to increase in the short run.”

Speaking to concerns over high corn prices, the groups wrote, “Numerous studies have concluded that the RFS is a minor contributor to corn prices. The most recent study, a July 2011 analysis commissioned by the International Centre for Trade and Sustainable Development, found that corn prices would have been exactly the same in 2009/10 if both the RFS and Volumetric Ethanol Excise Tax Credit (VEETC) had not existed.”

The groups are the American Coalition for Ethanol (ACE), the American Farm Bureau Federation (AFBF), Growth Energy, the National Corn Growers Association (NCGA), the National Farmers Union (NFU), the National Sorghum Producers, and the Renewable Fuels Association (RFA).

More analysis on the issue can be found on the RFA E-xchange Blog.

The bill, sponsored by Reps. Bob Goodlatte (R-VA) and Jim Costa (D-CA), would allow Congress to reduce the RFS requirement for ethanol whenever corn stocks are tight.

Speaking on behalf of the National Cattlemen’s Beef Association (NCBA) during a press conference announcing the legislation, California beef cattle producer Kevin Kester said it would provide relief from tight corn supplies.

“Cattlemen are not opposed to ethanol and we’re not looking for cheap corn. We simply want the federal government to get out of the marketplace and allow the market to work,” Kester said.

Officials with the National Corn Growers Association (NCGA) say the measure would significantly weaken the RFS. “The U.S. ethanol industry is an integral part of job creation and economic opportunity throughout rural America,” NCGA President Garry Niemeyer, an Illinois corn grower, said. “This legislation would put progress made by the ethanol industry in jeopardy and we are asking members of Congress to oppose its passage.”

The RFS came into effect in 2005 and was reauthorized and expanded in 2007 to require the use of 12.6 billion gallons of corn ethanol this year and 13.2 billion gallons in 2012, topping out at 15 billion gallons in 2015.

The Goodlatte-Costa bill would require a reduction in the RFS when the stocks-to-use ratio drops below 10 percent, up to a 50 percent reduction if the ratio falls below 5 percent. Under the current corn supply, the reduction would be 15-25 percent.

The Flex Fuel Pump Program, unveiled during the Indiana Ethanol Forum in Indianapolis earlier this summer, awarded cost-share dollars to Indiana fuel retailers looking to install flex fuel pumps.

“Hoosier corn farmers believe consumers should have the opportunity to have choices at the gas pump when filling up their vehicles,” said David Howell, ICMC vice president and farmer from Middletown, Ind. “The Flex Fuel Pump Program allows consumers to select the type of ethanol blend they want to use in their flex fuel vehicle and take advantage of the potential cost benefits of using ethanol.”

Read more.

Nebraska Governor Dave Heineman joined state soybean board chair Lisa Lunz, NASCAR Nationwide driver Kenny Wallace and Alan Tiemann, chairman of the Nebraska Corn Board, in making the declaration. “Nebraska’s renewable fuels sector contributes to local communities by providing good paying jobs for thousands of Nebraskans,” said Gov. Heineman. “Renewable fuels are a critical component of becoming energy independent and by providing an alternative to imported oil. We are fortunate to have a strong biofuels industry with thousands of Nebraskans working to fuel America.”

The proclamation was coordinated through the Nebraska Corn Board and Nebraska Soybean Board, who hosted the event at Husker Harvest Days to recognize the contributions of Nebraska farmers and agribusinesses to the nation’s renewable fuel supply.

The latest crop forecast for corn was cut three percent in the August report, due to excessive summer heat that lowered average yields by almost five bushels an acre. The estimate for corn production this year is now 12.5 billion bushels, down 3 percent from the August forecast but would still be the third largest corn crop in history. Yields are expected to average just over 148 bushels/acre, the lowest yield in six years.

With tighter supplies and higher prices, the USDA supply/demand outlook now projects corn usage to be 400 million bushels lower. “Corn use for ethanol is projected 100 million bushels lower with higher expected corn prices and continued weakening in the outlook for U.S. gasoline consumption as forecast by the Energy Information Administration,” according to the report. “The season-average farm price is projected 30 cents per bushel higher on both ends of the range to a record $6.50 to $7.50 per bushel.”

In addition Richard Childress and the American Ethanol NASCAR Sprint Series car at the Growth Energy exhibit, over at the Illinois Corn Growers exhibit, the Illinois Family Farmers NASCAR Nationwide Series driver Kenny Wallace was signing autographs and doing interviews.

Wallace said he was “blown away” by the Farm Progress Show. “This is like our Daytona 500! I’ve never seen anything like it,” he said in an interview with Domestic Fuel’s Chuck Zimmerman. The Farm Progress Show is the biggest outdoor agricultural equipment show in the country, which rotates between permanent sites in Illinois and Iowa and boasts over 500 exhibitors.

Listen to Kenny Wallace interview from Farm Progress Show here. NASCAR driver Kenny Wallace

The next big races for Wallace and all of NASCAR are coming up Chicagoland on September 16-18. Speedway president Scott Paddock, who was also visiting Farm Progress Show last week, says that triple header NASCAR weekend is a the first race in the Chase for the NASCAR Sprint Cup – the first of ten ‘playoff’ style NASCAR Sprint Cup Series races in pursuit of the 2011 championship. “NASCAR was looking for a major media market and a big platform to kick off their playoffs and they chose Chicagoland and we’re honored to have that designation,” he said, noting that the corn growers will have a very visible presence at the races.

Paddock says the partnership between NASCAR, ethanol and the corn growers was a good move. “I think it’s a compliment to the (15%) ethanol fuel blend that NASCAR believes in it enough to want to put it in their race cars.”

Listen to interview with Scott Paddock here. Chicagoland Raceway president Scott Paddock

The Fast Five 225 truck series will kick off the weekend on Friday, September 16. The Dollar General 300 Nationwide series, Kenny’s race, will be Saturday, Sept. 17 and the three day weekend will conclude on Sunday, Sept. 18 with the GEICO 400 Chase for the NASCAR Sprint Cup.

2011 Farm Progress Show Photo Album

Pictured here with Growth Energy CEO Tom Buis, Childress said his team’s partnership with American Ethanol and the NASCAR series using a 15% ethanol blend this year is good for the country. “I’m a huge supporter of everything we do in America, from our farmers to our military,” he said. “This country has to quit depending on so much foreign energy and resources. We gotta do better.”

Childress says that NASCAR has had no problems making the transition to 15% ethanol fuel and next year they will go to fuel injection. “The fuel injection and the American Ethanol is really going to work out great,” he added.

Listen to or download interview with Richard Childress here: Richard Childress at Farm Progress Show

Buis says the partnership with the National Corn Growers Association to spotlight ethanol at NASCAR has been reaching a great audience. “We get a great reaction from the fans and people who watch it at home on television,” he said. “We couldn’t be happier. I think we’re getting our message out there.”

Listen to or download interview with Tom Buis here: Tom Buis at Farm Progress Show

Pam Johnson, an Iowa farmer who will become first vice president of National Corn Growers Association next month, says the partnership with NASCAR is exciting. “With NASCAR we’re reaching people outside the Midwest, all over the country from Richmond out to California,” Pam said at Farm Progress Show. “So we are getting the message out to a whole new group of people who need to hear the story told and we think NASCAR’s a great vehicle for that.”

Johnson added that the Illinois Corn Growers were also highlighting their partnership with NASCAR and driver Kenny Wallace. “When you get a driver out there talking about the speed and the extra power they get driving and then bringing it back to the consumer,” she said. “Hopefully we’ll all have access to E15 as those NASCAR drivers are putting in their vehicles.”

Listen to or download interview with Pam Johnson here: Pam Johnson with NCGA at Farm Progress Show

2011 Farm Progress Show Photo Album