Domestic Fuel

The House Agriculture Committee passed the Federal Agriculture Reform and Risk Management Act (FARRM) of 2013 by a vote of 36 to 10 late Wednesday night. While the bill does contain an energy title, an amendment to make funding of energy programs mandatory was defeated.

“We thank the entire committee for reauthorizing the programs, but mandatory funding is vital to their continued success. We look forward to working with all Congressmembers and Senators to ensure that a Farm Bill gets enacted this year that includes mandatory funding for these important programs,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

The Senate version does contain mandatory funding for renewable energy and energy efficiency programs. “We thank the members of the Senate Agriculture Committee, especially Senator Amy Klobuchar for increasing the funding for the Renewable Energy for America Program, and Senators Joe Donnelly and Pat Roberts for a bipartisan proposal to improve risk management options for biomass crops,” said Lloyd Ritter, co-director of the Agriculture Energy Coalition. “We look forward to working with them to ensure the continued success of Farm Bill energy programs.”

“Funded farm and energy policy is better: it puts those benefits into action. On that score, we’re concerned the House bill missed the mark,” Adam Monroe, Americas Regional President of Novozymes, said of the committee bills. “While we appreciate the House Agriculture Committee reauthorizing the biomass programs, we urge them to follow the Senate committee’s lead and support a strong, fully-funded energy title.”

The Senate bill is expected to go to the floor next week while the House bill is slated for next month.

Progress on a new farm bill is all well and good but defending the Renewable Fuel Standard remains the top priority for the ethanol industry.

“The attack on the Renewable Fuel Standard is first and foremost and coupled with it is the blend wall,” said Growth Energy CEO Tom Buis st the National Association of Farm Broadcasting annual Washington Watch issues forum this week. “Oil has never been a fan of the RFS and they knew this day was coming. As we’re up against the 10% blend wall, rather than doing what the law allows and blending higher blends or helping to build out the infrastructure for higher blends to give consumers choice at the pump, they’ve decided they just want to eliminate it and eliminate competition.”

Buis notes that, despite weather challenges this year, corn growers will continue to grow enough corn to meet all needs.

Listen to an interview with Buis here: Interview with Tom Buis, Growth Energy

By a 15-5 vote, the Senate Agriculture Committee sent the Agriculture Reform, Food and Jobs Act of 2013 and its commitment to renewable energy to the full Senate, which could take it up next week. The National Biodiesel Board (NBB) welcomed the move, especially the part that funds the Biodiesel Fuel Education Program to the tune of $1 million a year through 2018, with another $1 million a year in discretionary funding for that same time.

During an interview with Chuck at the National Association of Farm Broadcasters (NAFB) Washington Watch, Anne Steckel vice president of federal affairs for the NBB said she is also hopeful Congress preserves the Renewable Fuels Standard (RFS).

“The RFS is really the backbone of the biodiesel industry,” she said. “It’s been incredibly successful for our industry, and it’s been very beneficial for consumers in general. We’re supporting over 50,000 jobs. We’re diversifying off foreign oil, and we’re helping better the environment.”

Steckel went to say that biodiesel enjoys a broad base of bipartisan support in Washington, and she is optimistic that support will continue and help that green fuel sector grow.

“The biodiesel industry is going to continue in its steady growth pattern, [producing] 1.3 billion gallons this year,” and the support of the RFS and biodiesel federal tax credit will help the industry and consumers as well.

Listen to Chuck’s interview with Anne here: Anne Steckel, NBB

2013 NAFB Washington Watch Photo Album

The Senate Agriculture Committee voted 15-5 today to approve the Agriculture Reform, Food and Jobs Act of 2013, which includes cuts to reduce the deficit by $23 billion dollars but still offers a commitment to renewable energy.

The bill includes an energy title that helps to advance “bio-energy production, supporting advanced biomass energy production such as cellulosic ethanol and pellets from woody biomass for power.”

The bill also provides support for blender pumps and higher ethanol blends, which was welcomed by the ethanol industry. “The American Coalition for Ethanol (ACE) thanks Chairwoman Stabenow and members of the Senate Agriculture Committee for adopting a Farm Bill which provides $800 million in mandatory funding for critical Energy Title initiatives, particularly $241 million in mandatory funding for the Rural Energy for America Program (REAP),” said ACE Executive Vice President Brian Jennings. “REAP provides vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol. Today’s action highlights strong bipartisan support for market access to E15 and midlevel blends, such as E30 or E85. We encourage the U.S. Senate to take action soon to enact the Farm Bill.”

The bill is expected to move to the Senate floor next week.

As the Senate and House Agriculture Committees begin to mark up a new farm bill this week, big changes are expected in the next farm bill when it comes to farm programs and ethanol is helping to make that happen.

At the annual National Association of Farm Broadcasting Washington Watch issues forum on Monday, Renewable Fuels Association president and CEO Bob Dinneen said the dramatic changes in farm programs expected are actually being made possible by the increased use of biofuels that has taken place under the Renewable Fuel Standard (RFS). “It used to be that the price of corn was far less than the cost of production and it was government farm programs that would make up the difference,” said Dinneen. “And one of the things that Congress intended with the value-added ethanol industry was creating a value for farmers that would allow them to reduce farm program costs and it has done exactly that.”

Dinneen said the Senate farm bill proposal, which is being marked up this morning in committee, does include an energy title, the farm bill is not a real focus for them but they do hope that the farm bill will include funds for USDA to support blender pump installation and the development of advanced biofuels.

It’s time for National Association of Farm Broadcasting members to gather in Washington, DC for their annual Washington Watch program.

Activities this afternoon with the Issues Forum, sponsored by the Renewable Fuels Association. Among the topics sure to be discussed will be what a new farm bill may hold for renewable energy and the latest on attacks to the Renewable Fuel Standard (RFS).

Tomorrow morning the farm broadcasters meet up at USDA and will be speaking with a number of department heads including Secretary of Agriculture Tom Vilsack. It looks like Wednesday morning will be all about the Farm Bill with input from various members of the Senate and House where their versions of the new legislation are going through mark ups this week.

Legislation to reauthorize the Farm Bill energy title was introduced in the Senate Monday.

Senators Tom Harkin (D-IA) and Al Franken (D-MN) introduced the Rural Energy Investment Act to “help farmers, ranchers, and rural communities by encouraging the growth of agricultural energy technologies, including advanced biofuels, biogas, biomass, and renewable energies.”

“These energy programs are essential for expanding clean energy supplies, which also spur rural economic development and job creation,” said Harkin. “The tradition of providing strong support for an energy title in a farm bill must continue today, so for that reason I am hopeful that this measure will serve as a marker as the 2013 bill moves through the U.S. Senate.”

“Advancing our agricultural energy technologies is good for our farmers and economy, and it improves our overall energy independence and security,” added Franken. “This legislation will create jobs and play a critical role in cutting costs for our farmers and producers and will help them with the adoption of energy efficiency and renewable energy technologies.”

The Agriculture Energy Coalition supports the legislation and thanked the senators for introducing it. Last week, the coalition joined more than 100 national, state and regional organizations in a letter to the leaders of the House and Senate Agriculture Committees, urging them to adopt a new Farm Bill with robust mandatory funding for renewable energy and energy efficiency programs.

Eight term Iowa congressman Leonard Boswell is continuing to support renewable fuels in his state despite losing his re-election bid in re-districting last year to Tom Latham.

Boswell attended the Iowa Renewable Fuels Summit last month because it is something he says he cares deeply about. “I am so wound up in things like renewable fuels, it’s just one of my passions,” he said during an interview at the summit. “I will participate somehow.”

The former Democratic congressman, who is a farmer, was disappointed that Congress was unable to get a farm bill passed last year. “We need a farm bill, you can’t plan if you don’t know the rules,” said Boswell, who believes the House did have the votes to pass the bill that came out of the agriculture committee but they were never given the chance.

Listen to interview with Boswell here: Former Congressman Leonard Boswell

IRFA Renewable Fuels Summit Photo Album

The Agriculture Energy Coalition (AgEC) today urged Congress to begin work on a new five-year Farm Bill with strong mandatory funding for energy programs.

The coalition notes that programs included in the farm bill Energy Title including the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP), Biorefinery Assistance Program (BAP) and Biobased Markets Program (Biopreferred) have helped create jobs and economic growth in rural America, develop new agricultural markets, and improve farmers’ and ranchers’ energy self-sufficiency.

“Farm energy programs have paid a tremendous return for rural Americans, in terms of new jobs, investments in new energy efficiency and bioenergy technology, and new biobased products,” said Lloyd Ritter, Agriculture Energy Coalition co-director. “Economic growth and job opportunities in rural America are at risk without a renewal of funding for these effective programs.”

The American Taxpayer Relief Act of 2012 extended the 2008 Farm Bill without funding for energy title programs. Senate Majority Leader Harry Reid (D-NV) re-introduced the five-year farm bill passed by the Senate last year, calling it a “revolutionary piece of legislation.” The House failed to pass a farm bill last year.

Secretary of Agriculture Tom Vilsack says the future success of biofuels in this country is also tied to successfully getting a new five-year farm bill passed. Speaking to delegates of the American Farm Bureau Federation at their annual meeting in Nashville, Tenn., Vilsack expressed his disappointment that a new farm bill was not passed … reserving some of his stronger language for maybe a smaller gathering. But he says the impacts of a new farm bill will be on more than just the mainstream renewable fuels, ethanol and biodiesel. It is for the overall bio-based economy.

“I’ve seen the ability to use corncobs and switch grass and algae and a wide variety of things that are grown and raised or could be produced in rural areas, converted into plastics, into chemicals, into fabrics, into fibers, into fuel, into energy. It is an unlimited future. But we require support and assistance and help and a commitment through a five-year bill,” Vilsack explained.

Vilsack reminded his audience who knows full well that rural America is providing the feed stock for most of the energy and most of the fuel that’s consumed and used across the country, while providing millions of jobs, many of those in the renewable energy sector. And he said that rural economy, booming with renewable energy, will attract young folks back to the heartland.

“If I were talking to a young person, I would say, you’re concerned about our overreliance on foreign oil, you can solve that problem in rural America.”

Vilsack also announced that he plans to serve another term as Secretary of Agriculture … a move applauded by Tom Buis, CEO of Growth Energy:

“Secretary Vilsack has been a tireless advocate for the renewable fuels industry, and I commend President Obama for his reappointment to the Department of Agriculture. I am confident that Secretary Vilsack will build upon his excellent service record supporting renewable fuels and economic growth across rural America. I know that during his tenure he will continue his strong advocacy for biofuels increased market access for higher ethanol blends such as E15.

You can listen to or download Sec. Vilsack’s speech here: Sec. Vilsack Speech

And his press conference after the closing session here: Sec. Vilsack Press Conference

With the 112th Congress unable to come to terms and pass a new Farm Bill, the current bill was extended for nine months while the 113th Congress works to pass a 2013 Farm Bill. Although the bill is extended as part of the American Taxpayer Relief of 2012, it was extended without energy title funding that includes programs such as the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP) Biorefinery Assistance Program (BAP) and the Biobased Markets Program (Biopreffered). The news was not greeted with enthusiasm by the agricultural and renewable energy industries.

“We are deeply disappointed that Congress ignored the bipartisan bill drafted by House and Senate Ag Committee leaders,” said Lloyd Ritter, Ag Energy Coalition co-director. “By eliminating mandatory funding for energy title programs, the agreement cuts short vitally important job creation and economic growth in rural America.”

According to Ritter, these programs have helped to revitalize rural America, develop new agricultural markets, and reduce the need for direct payments to farmers. In addition, says Ritter, these programs have unlocked private capital for construction of the nation’s first cellulosic and advanced biofuel biorefineries. As part of this movement, more than 150,000 acres of underutilized, such as marginal land, in more than 150 countries.

Last year, the U.S. Senate passed a version of a five-year Farm Bill that set mandatory levels each year for renewable energy and energy efficiency programs. A slightly different version of a five-year Farm Bill was passed by the House Agriculture Committee that provided discretionary funding for these programs. Draft legislation for a one-year extension of the current Farm Bill agreed to by the House and Senate Ag Committee leaders and released at the end of December 2012 set mandatory funding levels for 2013. However, the extension did not pass with these funding levels included and will ultimately cause harm to the momentum of agriculture’s role in renewable energy.

A new poll of farmers and ranchers out today finds that a vast majority say they will vote Romney for president and believe continuation of the Renewable Fuel Standard (RFS) is important.

According to the Agri-Pulse Farm and Rural Poll, 78 percent of farmers polled are voting for Mitt Romney in the presidential election, and 76% said continuation of the RFS is very or somewhat important to the future profitability of agriculture in the U.S. Only 12 percent indicated the RFS was “not very important” or “not at all important,” while 12 percent said they are “not sure.” Significantly, half of those surveyed who raise only livestock answered that continuing the RFS is “very important.”

On November 1, 2012, Pulse Opinion Research conducted a telephone survey of 319 farmers and ranchers who are likely voters. Questions covered the presidential election, farm bill priorities, Secretary of Agriculture Tom Vilsack’s job performance rating, the Renewable Fuels Standard, and other topics.

The telephone survey found that 71 percent of respondents strongly disapprove of President Obama’s job performance while 12 percent strongly approve. Of all farmers polled, 51 percent labeled themselves Republican, 26 percent Democrat.

Poll results available here.

Congress left town last week without even considering a new farm bill in the House, leaving the current bill to expire at the end of this month. House Speaker John Boehner (R-OH) said they would deal with a farm bill after the election because he did not believe there were 218 votes to pass either an extension or new legislation.

“It just didn’t have to be,” said a frustrated Secretary of Agriculture Tom Vilsack on Friday. “They would have had 218 votes if they had worked it. It’s really unfortunate.”

Vilsack believes this is a set back to a thriving rural economy. “Rural America has great momentum that’s been built with record exports, record conservation acres, record expansion in biofuels and biobased products,” he said. “We want to add to that momentum and what we’re doing now is creating this uncertainty which creates a real problem for momentum to continue.”

Vilsack fears that Congress will not pass a new farm bill during the lame duck session, meaning the measure would have to wait until the new Congress, which means the already passed Senate bill would be dead and they would have to start from scratch.

The 2012 Farm Bill has been big news this week as the agricultural industry, along with dozens of other groups, call for Congress to pass the bill before it sunsets on September 30, 2012.  Earlier this week the Farm Bill Now coalition held a rally in Washington, D.C. that included participation of all Iowa legislators.  The Agriculture Energy Coalition (AgEC) participated in the rally calling on Congress to pass the five-year Farm Bill that includes mandatory funding for a strong Energy Title.

To date, the Senate has passed a version of the bill and the House Agriculture Committee has also passed its a version of the Bill. Yet Congress is not taking action. Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) participated in the Farm Bill Now rally urging Congress to pass the 2012 Farm Bill.

Lloyd Ritter, co-director of the AgEC, said, “Both the House and Senate Agriculture Committees have worked hard this year to move forward with fiscally responsible Farm Bills, and final passage is within reach. Passage of a five-year Farm Bill will provide necessary economic stability and confidence to agricultural producers and rural communities across the country. Inclusion of a strong Energy Title with mandatory funding will increase the economic opportunities in those rural communities.”

Ritter continued, “Farm Bill energy programs have helped the renewable energy industry create thousands of jobs across the country in rural communities where they are very much needed. They have also helped farmers put more than 160,000 acres of underutilized farmland across 12 states back into production. And they have helped hundreds of new American businesses generate 100,000 jobs producing home-grown biobased products. These effective programs are a vital part of the overall Farm Bill.”

A growing coalition of organizations is calling on Congress to pass a five-year, comprehensive farm bill before the current legislation expires on September 30.

A rally today on Capitol Hill will feature representatives from many of the Farm Bill Now coalition groups, and many others will be there in support, including Growth Energy. CEO Tom Buis says members of Growth Energy have been meeting with members of Congress and the administration this week to discuss maintaining the Renewable Fuel Standard (RFS) and farm policy has been a part of those discussions.

“Every meeting that I was in, the farm bill came up,” Buis said during a press conference this morning in Washington DC. “Although most of the comments from the lawmakers indicated that it probably is not going to happen before September 30.”

Buis says they are supportive of the Senate passed version of the legislation, which does contain an energy title and is adequately funded. “We would hope they would pass it,” he said, noting that not having a farm bill creates uncertainty for agriculture. “Not knowing what the programs are going to be makes it very difficult for people to operate.”

Buis formerly served as president of the National Farmers Union before taking over as CEO of Growth Energy in 2009.

Tom Buis audio comment here: Growth Energy CEO Tom Buis