Domestic Fuel

Ethanol related issues top the list of concerns for members of the National Corn Growers Association (NCGA) preparing for their annual policy meeting ti be held this week in Anaheim as part of the 2010 Commodity Classic.

NCGA president Darrin Ihnen, a corn grower from South Dakota, says among those concerns are the use of indirect land use change in making regulations for low carbon fuels and increasing the allowable blend level for ethanol in gasoline to 15 percent. “The other thing that is looming is tax policy when it comes to the ethanol industry – VEET (volumetric ethanol excise tax credit) and the import tariff,” Ihnen said on a visit last week to the Missouri Corn Growers Association annual meeting. “Those will definitely bring a lot of discussion in our resolution sessions and our policy decision making.”

Corn growers are also concerned about the threat posed to animal agriculture in individual states by activist groups, which affects them on two levels. “Number one, the livestock industry is our largest user of corn,” Ihnen says. “The second thing is that we supply a lot of corn to the ethanol industry, which produces DDGs, which comes back to the livestock industry.”

Ihnen sees the animal activist threat as a unifying issue for the agriculture industry, which is sometimes divided when it comes to ethanol. “We can’t be separated when it comes to agriculture,” he said. “We need to work together.”

Listen to or download my interview with Darrin Ihnen here.

Podcast: Play in new window | Download (2.5MB)

When it comes to approval of biodiesel in farm machinery, New Holland is outstanding in the field.

In both North America and Europe, New Holland has been a leader in recognizing the importance of biodiesel as a fuel source for agricultural equipment. The company was first to approve the use of biodiesel blends back in 2006 and has since moved to allow biodiesel in all equipment with New Holland manufactured diesel engines, including electronic injection engines with common rail technology.

At the recent National Farm Machinery Show in Louisville, most of the New Holland equipment on display proudly displayed soybean biodiesel signage, and company representatives wore buttons proclaiming their support for the domestically-produced fuel. “New Holland has a strong commitment to not only be a part of biodiesel, but also to be a leader in the industry as far as future fuel usage is concerned,” New Holland regional service manager Phil Cobb said at the farm show. He says it was natural for their company to take the lead. “Mainly because our customers are in the soybean areas and grow soybeans,” said Cobb. “Not only does it support farming, we also use the fuel. It’s important for the ag industry to be on the leading edge.”

Cobb says all New Holland equipment is approved for a minimum of five percent biodiesel, with the large combines approved for 100 percent and many of the tractors approved for up to 20 percent.

Listen to my interview with Phil Cobb from the National Farm Machinery Show here:

Podcast: Play in new window | Download (1.2MB)

There may still be corn left standing in the snow, but USDA says the 2009 corn crop was a record setter.

In today’s crop production summary report, USDA projects U.S. corn production at a record 13.2 billion bushels, up from 12.9 billion bushels projected in USDA’s December forecast and 1 percent above the previous record of 13.0 billion bushels set in 2007. The corn yield is estimated at a record 165.2 bushels per acre in 2009, 2.3 bushels higher than the December forecast and 4.9 bushels above the previous record of 160.3 bushels per acre set in 2004.

The Renewable Fuels Association (RFA) says this proves the amazing productivity of the American farmer. “The unparalleled productivity of America’s farmers continues to amaze even the most skeptical of critics,” said RFA president Bob Dinneen. “Despite unfavorable weather conditions from start to finish, farmers produced considerably more corn than the food, feed, and fuel markets are demanding. Such gains in productivity undermine any claims that U.S. biofuel production will require new lands in other nations to come into production. There can be no question that American farmers have both the capability and the can-do attitude to feed the world while simultaneously helping reduce our nation’s reliance on imported oil.”

For calendar year 2009, the U.S. is expected to produce 10.6 billion gallons of ethanol and more than 30 million metric tons of livestock feed from 3.8 billion bushels of corn.

Food, feed, fiber and fuel – American farmers do it all and today is a day to give a Thanksgiving tweet for all they do.

On Twitter, many agriculture advocates are taking part in tweeting the hashtag #thankafarmer today from 10 am to 12 pm CST. Twitter users are also expressing their gratitude with a #thankafarmer twibbon.

The twitter efforts are just a small way to recognize and thank American farmers for their great productivity in providing not only safe, affordable and abundant food – but also fuel in the form of ethanol from corn, wheat and sorghum and biodiesel from soybeans – as well as the many other feedstocks that can be used for fuel, like switchgrass and jatropha. The hard work of people in agriculture have given our nation food security and decreased our dependence on foreign oil.

If you are a Twitter user and unable to tweet because of previous commitments, please sign yourself into Twuffer, a twitter service where you can time your tweets. This document contains links to different websites that are advocating for US Farmers and some tweets to get you started.

The American Farm Bureau Federation (AFBF) is pleased with a decision by Senate leadership last week to delay consideration of climate change legislation until the spring of 2010.

During a recent interview before the delay was announced, AFBF president Bob Stallman said the agricultural organization opposed the climate change bill that was passed by the House, despite provisions included that were beneficial to agriculture. “That bill we believe will downsize American agriculture by at least 20 percent,” he said. “Long term it reduces our ability to produce food.”

Stallman says that AFBF is also opposed to the controversial concept of indirect land use change to determine the lifecycle greenhouse gas emissions of biofuels. “That issue is an attempt by the environmental community to remove the use of corn ethanol from the Renewable Fuel Standard,” Stallman said. “We’re opposed to that. Number one, there is no science, it’s pure speculation. And how you can say that an acre producing corn ethanol here is going to change a specific acre in a specific country is nonsense.”

Listen to an interview with Stallman here.

Podcast: Play in new window | Download (1.3MB)

Even though USDA lowered its forecast for 2009 corn production in the latest report out today due to lower yields, farmers are still expected to see record yields and production is still expected to be the second highest on record.

Corn production is forecast at 12.9 billion bushels, down 1 percent from last month but 7 percent higher than 2008. Based on conditions as of November 1, yields are expected to average 162.9 bushels per acre, down 1.3 bushels from October but 9.0 bushels above last year. Despite the drop in yield from October, this yield will be the highest on record if realized. Total production will be second highest on record, only behind 2007.

The harvest continues to be slow throughout the Corn Belt. According to USDA, just 37 percent of the corn had been combined as of Sunday, compared to 82 percent average and even well behind last year’s slow harvest which was 69 percent complete at this time in 2008. Meanwhile, despite moisture issues, corn quality remains strong, up one percent this week to rate 68 percent good to excellent.

While high moisture and low test weights are getting to be major concerns with the crop, ethanol plants are able to utilize the lower quality corn. Arlan Suderman with Farm Futures spoke with Dave Vander Griend, President and CEO of ethanol developer ICM, Inc. of Kansas about the situation last week.

“We can utilize the crop,” says Vander Griend. “A lot of people don’t want it, which means that it will be discounted. Many people in the industry haven’t been through this before, but I’ve been around long enough to have lived through it before and know that it can work. Ethanol plants can usually beat the price of the other discounts being offered and make use of it.”

Suderman notes that Vander Griend emphasized the importance of farmers talking to their local ethanol processor now about how to best care for and deliver lower quality corn.

A nationwide survey conducted for the National Corn Growers Association finds broad public respect and trust for family farmers and support for corn as food, feed and fuel.

Ninety-five percent of those polled agreed that farmers are trusted messengers on issues such as agriculture, corn products and ethanol – and ethanol itself was supported or strongly supported as a good fuel alternative by 65 percent.

Respondents also spoke out about what they saw as the top benefits of corn-based ethanol. Thirty-four percent mentioned reduced dependence on foreign oil, 19 percent mentioned the creation of new jobs and 16 percent liked it for its environmental benefits.

The survey of 1,000 U.S. voters nationwide was conducted in mid-September by David Binder Research and has a margin of error of 3.1 percent.

The U.S. Department of Agriculture increased the forecast for the nation’s corn crop by two percent in the September crop production report out Friday morning. The forecast is now an even 13 billion bushels, just 100 million bushels short of the 2007 record crop. The soybean crop, already expected to be the biggest ever, was boosted another one percent in the forecast to 3.25 billion bushels.

USDA is now saying yields are expected to average 161.9 bushels per acre, up 2.4 bushels from August and 8.0 bushels above last year. Yield forecasts increased from last month across the western Corn Belt and the northern half of the Great Plains as mild temperatures and adequate soil moisture supplies provided favorable growing conditions.

Some analysts believe the corn crop could ultimately be the largest ever. Even though both crop progress remains far behind normal, the weather forecast is calling for generally warm, mostly dry weather stretching into next week or so, which is great news for producers.

This edition of “The Ethanol Report” features an interview with Renewable Fuels Association President and CEO Bob Dinneen during a visit to the 2009 Farm Progress Show in Decatur, Illinois on September 2. Dinneen discusses the need to increase the amount of ethanol allowed in gasoline above the current 10 percent, the Environmental Protection Agency rulemaking on the expanded Renewable Fuels Standard and the issue of indirect land use, and the ability of American farmers to continue to produce enough corn to meet the demand for ethanol.

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

Podcast: Play in new window | Download (4.1MB)

The “World’s Largest Urban Farm and Research Test Facility” is studying a wide variety of new feedstocks that hold promise for future sources of both ethanol and biodiesel.

Agricenter International recently offered a closer look at the new crops being grown there by the Memphis Bioworks Foundation AgBioworks program and BioDimensions, Inc. Among the crops that were planted this season were sweet sorghum (pictured), switchgrass, castor, pearl millet and sunflowers.

“Our intent with hosting this new crops field day was to educate people on the opportunities for these crops in the region by inviting a range of speakers to talk about crops from the field to the factory and also showcase these crops in the field, “ says Hillary Spain, AgBioworks 25Farmer Network Coordinator.

Spain says about 50 farmers and other interested individuals from throughout the region attended the field day on August 15 to learn about each crop, ask questions and see the crop under actual growing conditions in the field.