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Candidate Positions on Ethanol

Presidential candidates Barack Obama and John McCain spoke to the American Farm Bureau Federation’s Council of Presidents meeting in Washington DC last week by teleconference about various issues of importance to agriculture, including it’s role in America’s energy needs.

McCain ObamaMcCain heralded his “Lexington Project” to make America energy independent which includes alternative fuels, ethanol, nuclear and offshore drilling. The plan includes calling on automakers “to make a more rapid and complete switch” to flex-fuel vehicles, as well as increase support for second generation ethanol, that would involve eliminating “mandates, subsidies, tariffs and price supports that focus exclusively on corn-based ethanol and prevent the development of market-based solutions which would provide us with better options for our fuel needs.”

Obama stated that his goal would be to phase in a 2 billion gallon cellulosic ethanol renewable fuel standard into the nation’s fuel supply by 2013.

“I am not interested in rolling back the renewable fuel standard. I think it is something that is critically important to supporting the agricultural sector and rural America, and I think that the use of ethanol as a scapegoat for rising fuel prices is misplaced. If we don’t invest in American grown biofuels and advanced technologies, our nation is never going to be energy independent. And that is why I am proud to have been a consistent supporter of biofuels and I will continue to be so in the future.”

Iowa Corn Growers Optimistic

Iowa Corn GrowersAt the Iowa Speedway yesterday, the Iowa Corn Growers Association held an outdoor press conference. They used it to help educate media about corn usage by placing banners on the side of a grain trailer showing the relative percentages of corn used for different purposes like livestock feed and ethanol.

I did a short interview with Gary Edwards, ICGA board member. Ken Root, WHO, also participated. Gary farms in Animosa, IA which is in one of the most flood impacted areas of the state. He says that although corn growth is behind schedule and there is a lot of land impacted, he expects that the state will still have a good crop. He wants people to keep in mind that last year they had a record corn crop and this year still has the potential to be one of the biggest. He says the water levels have gone down significantly already and he expects that a lot of those fields will dry out and be re-planted. He has no doubt that they’ll be able to provide all the corn needed for both food and fuel again this year.

You can listen to my interview with Gary here: iowa-08-edwards.mp3

Iowa Corn Indy 250 Photo Album

Ethanol Industry Stands up for Farmers

ICMThe ethanol industry is mad and they’re not going to take it anymore.

That’s how BBI International president Mike Bryan summed up his feelings about the attacks on ethanol during the opening general session of the 2008 International Fuel Ethanol Workshop on Tuesday in Nashville.

“What bothers me most is the abuse that agriculture is taking,” Bryan said. “We cannot allow that to stand. We can take the heat in the ethanol industry, but by God, we should not stand by and let agriculture be vilified for finally being able to make a living like everyone else on Main Street.”

Bryan and his wife Kathy started the Fuel Ethanol Workshop 24 years ago and have been pioneers in the ethanol industry on a global scale. Kathy is missing the conference this year for the very first time as she is battling cancer, but she was keeping track of the proceedings from home and Renewable Fuels Association president Bob Dinneen led the crowd this morning in a special greeting to Kathy with best wishes for a speedy recovery.

Listen to Mike Bryan’s opening address to the 2008 FEW here:
few08-bryan-open.mp3

Listen to an interview with Mike here:
few08-bbi-bryan.mp3

2008 Fuel Ethanol Workshop Photo Album

Ethanol Talk at Pork Expo

Ethanol production as it relates to high feed costs was a major topic of discussion at the World Pork Expo in Des Moines last week, but pork producers understand that there are other factors impacting their input costs.

World Pork Expo 2008 Bryan Black“This is not specifically an ethanol problem,” said National Pork Producers Council president Bryan Black. “The world demand for grain, the total energy price crisis and shortages of grain across the world have led to this situation and we are not pointing the finger at any one particular one.”

The NPPC has created a brand new task force to look at new feed alternatives to help them deal with the rising cost of corn and soybean meal, which have been the primary source of feed for hogs.

World Pork Expo 2008 Chuck ConnerDuring a speech to pork producers at the expo, Deputy Agriculture Secretary Chuck Conner admitted that ethanol is a factor in the higher prices. “Ethanol is a new demand factor in the corn market, to the tune of about a third of our production going forward,” Conner said. “Fortunately, we did produce 13 billion bushels of corn and so despite large quantities going to ethanol, we actually did feed more corn to livestock than in previous years, so we managed to grow that market for both feed and ethanol.”

“We do recognize that there is some hurt out there in the livestock sector and with 70 percent of the cost of pork production going to feed, we know that you are first in line to get clipped,” said Conner. That is why USDA is buying pork for food assistance programs, which is helping the pork industry while at the same time helping the needy.

Conner said that USDA is also opening up some Conservation Reserve Program acreage to haying and grazing, which is primarily a direct benefit for cattle producers but it indirectly benefits hog farmers by increasing the amount of feed available to the livestock industry.

NE Corn Fights Anti-Ethanol Campaigns

Nebraska Corn Growers Assn.Nebraska Corn BoardThe Nebraska Corn Board and Nebraska Corn Growers Association (NeCGA) announced today that they applaud the bipartisan group of Senators who have spoken out against the misinformation campaign that targets corn producers and the corn ethanol industry as being behind a rise in food prices.

The group of six Senators, organized by Iowa Senator Chuck Grassley (R), met in Washington D.C. to discuss many of the issues raised by ethanol critics and to help set the record straight on the benefits of biofuels. This is in response to the reported anti-ethanol campaign being brought about by the Grocery Manufacturers Association (GMA).

“Study after study has demonstrated that high fuel and energy prices are a major factor in higher food prices. If you take away ethanol, fuel prices will increase even more and food prices will follow,” said Jon Holzfaster, a corn and cattle producer from Paxton and chairman of the Nebraska Corn Board. “That is one of the important points the Senators made, and we couldn’t agree more.”

Randy Uhrmacher, president of NeCGA and a corn producer from Juniata, said that attempts to mislead the American public are unfortunate because they create turmoil in a food supply system that provides the safest and cheapest food in the world. “Food companies and farmers would be better off working together to find solutions to the real cause of higher food prices – our reliance on oil,” he said.

NeCGA and the Corn Board said they will continue providing the facts about food and fuel on their internet sites, www.NebraskaCorn.org and www.NeCGA.org, and in other communication efforts.

Evidence that Ethanol Works

IndyCar Driver Jeff SimmonsThe ethanol industry in Brazil has been developing some major traction. Marcos Jank, President of UNICA, says the demand for ethanol in Brazil is now matching that of the demand for gasoline. He says ethanol is gaining ground and Brazil “won’t move back to gas.”

Marcos was one of seven speakers at today’s Ethanol Summit held at the Indianapolis Motor Speedway today. General Motors sponsored the event. The object of the Summit was to explore Brazil’s strong and sustained success with ethanol while also taking a look at where and how the U.S. ethanol industry has room to grow.

Marcos and Indy racing legend Emerson Fittipaldi – a Brazilian ethanol producer – highlighted a number of milestones the Brazilian ethanol industry has already attained:

  • All fuel sold in Brazil contains a 20 to 25 percent blend of ethanol
  • The unsubsidized ethanol industry offers a fuel that is on average one dollar below the price of gasoline
  • Virtually all 33,000 gas pumps offer E100
  • Just one percent of the 40 percent of arable land in Brazil is being used to produce sugarcane ethanol
  • Forty-five percent of fuel for cars is from sugarcane
  • Sugarcane ethanol production is 100 percent self-sufficient
  • The food industry is growing faster than the ethanol industry
  • Ninety percent of all new automobiles sold are flex-fuel automobiles
  • One-hundred percent of GM vehicles produced in Brazil are flex-fuel
  • Twenty percent of all cars are flex-fuel vehicles today
  • Fifty percent of all cars will be flex-fuel vehicles by 2012
  • Three percent of electricity is from sugarcane
  • Honda and Yamaha are introducing flex-fuel motorcycles this year


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Indiana Corn Goes Mobile with Ethanol Education

Indiana Corn Marketing Council Mobile Marketing UnitThe 2008 Indy Pace Car corvette wasn’t the only shiny new toy to check out at the giveaway this morning. The Indiana Corn Marketing Council debuted its new interactive mobile marketing unit complete with videos detailing the production of ethanol and a database of local fuel retailers that offer E10 and E85 fuel blends. Visitors can even print off a list of local stations.

Mike Shuter President of the Indiana Corn Marketing CouncilI caught up with Indiana Corn’s Mark Walters again, as well as ICMC’s Mike Shuter (pictured), the council’s President and a Frankton, IN farmer. We talked about the new mobile marketing unit, the truth about ethanol as they see it and how IN corn fits into the ethanol industry. You can listen to my interview with Mark and Mike here: shuter-walters-indy.mp3


2008 Indy 500 Photo Album

USDA Expects Enough Corn for Ethanol

The latest U.S. Department of Agriculture forecast calls for enough corn and soybeans to meet both food and fuel needs.

The May supply and demand report released on Friday based predictions for the 2008-09 marketing year on an expected corn crop of 12.1 billion bushels, down 7 percent from last year’s record crop.

USDAUSDA is expecting total U.S. corn use in 2008-09 to be 2 percent lower than the current marketing year, which ends in August. The report calls for reductions in feed and residual use and exports to more than offset a continued expansion in ethanol production.

Feed and residual use is projected down 14 percent as corn feeding declines with increased production of distillers grains, higher corn prices, and reduced red meat production. Corn exports are projected down 16 percent as U.S. supplies face increased world competition with increased foreign production and a sharp drop in EU-27 imports. Ethanol use is projected at 4 billion bushels, up 33 percent from 2007/08. The slowing pace of plant construction and expansion, and lower capacity utilization are expected to modestly dampen growth in ethanol corn use. With total corn use expected to exceed production by 635 million bushels, ending stocks are projected down 45 percent. At 763 million bushels, ending stocks would be the lowest since 1995/96.

Meanwhile, on the soybean side, production is expected to be up by 520 million bushels this year, but biodiesel production is expected to be only slightly higher in the coming marketing year. USDA is projecting biodiesel will use 15 percent of total soybean oil production in 2008-09, compared with 14 percent this year.

Ceres First to Brand Seeds for Bioengery Crops

ceres.pngAs technology unleashes more and more energy possibilities from more and more crops, it can get a little confusing as to which plants can do what. Ceres, Inc. plans to clarify bio-friendly seeds with its new bioenergy seed brand.

Energy crop company Ceres, Inc. plans to market its agricultural seeds and traits under the trade name Blade Energy Crops in the United States. Company president and CEO Richard Hamilton unveiled the new brand at the BIO World Congress on Industrial Biotechnology in Chicago earlier today.

“Blade will be the first multi-crop seed brand supplying the new market for non-food, low-carbon biofuel feedstocks,” Hamilton said. These biomass-dense crops will be grown as raw materials for next-generation biofuels and biopower. One of the great appeals of energy crops is that they can thrive on agricultural lands that are ill-suited to food production.

“Supported by the latest technology in genomics-based breeding, trait development and compositional analysis, we are positioning Blade as a premium seed brand for biofuel and biopower feedstocks. For growers, that means high yields and greater yield stability. Downstream, it means easier processing, and ultimately, more energy per ton of biomass,” said Hamilton. “From both an economic and environmental perspective, if we are going to turn plant matter into fuel, we should use feedstocks that give us the maximum fuel yield per acre.”

The company says the Blade name was inspired by its first crops, switchgrass, sorghum and canes, which are from a category of closely related grass species, known as C4 grasses. C4 grasses are the natural world’s most efficient engines of photosynthesis, the process by which plants store solar energy in the form of carbohydrates. New technologies have made it possible to convert the most abundant form of these energy-rich molecules, called cellulose, into renewable fuels.

Alternative Wine

Parducci Wine Cellars is harnessing all sorts of alternative energy to produce its wine. The carbon neutral vintner now uses solar power, wind power and biodiesel tractors.

Parducci effectively transferred all of its energy needs to non-polluting, renewable sources by supplementing its on-site solar power with Green-E(R) certified wind energy purchased from the Bonneville Environmental Foundation. The annual positive environmental impact of the winery’s 100% green power use is equivalent to:

— removing 172 cars from the road for a year, or
— planting 242 acres of trees, or
— not driving a passenger vehicle 2,171,450 miles.

The oldest family-owned winery in Northern California’s Mendocino County, Parducci Wine Cellars is committed to responsible land stewardship, sustainable viticulture and green business practices that yield superior wines while protecting the environment.

In 2007 Parducci received the Governor’s Environmental and Economic Leadership Award, California’s highest environmental honor, for the company’s efforts to combat climate change. In addition to buying grapes from local family farmers, Parducci uses sustainable farming practices including bio-diesel tractors in the vineyards and 100% green power as well as earth friendly packaging at the winery. Parducci’s respect for the land yields quality wines as evident by recent 90+ point scores in several national wine publications.

Biodiesel from Tropical Paradise

'AbundantAmericans might soon be fueling up with biodiesel from the Phillipines. Abundant Biofuels Corporation has received the green light for developing 300 million gallons of biodiesel fuel from the island of Mindanao each year.

The Supreme Council of Datus Alimaong has reached agreement with Monterey, CA-based Abundant Biofuels Corporation to develop more than 1.2 million acres of ancestral domain for production of biodiesel from Jatropha curcas in underused Lumad lands on the island of Mindanao.

Dr. Rene Q. Lacsina, president of Abundant Biofuels Philippines, Inc. and an agronomist-scientist, sees this jatropha or tubatuba global venture as a golden opportunity for indigenous Filipinos to show the rest of the nation " … the way to be productive citizens contributing to genuine freedom essential for restoring the nation into justice, righteousness and peace while participating in the lucrative global biofuel industry."

Abundant Biofuels CEO Dr. Charles Fishel stated, "Jatropha is the only biodiesel feedstock that does not divert agricultural land from food production. It has the added advantage of producing 20 times more energy than the energy required to produce it." Fishel adds that, "Most other feedstock consumes almost as much energy in production as the energy it is supposed to supply as fuel."

Under its groundbreaking agreement, Abundant Biofuels will deploy part of its profits for infrastructure development on the island of Mindanao, including improved housing, medical care programs, better schoolroom facilities and resources for people to affirm cultural identities such as music, dance, food, attire and drama.

Analysis: Technical challenges facing the Immigration and Naturalization Service

NPR Morning Edition December 11, 2001 | SUSAN STAMBERG 00-00-0000 Analysis: Technical challenges facing the Immigration and Naturalization Service Host: SUSAN STAMBERG Time: 10:00-11:00 AM SUSAN STAMBERG, host: immigrationandnaturalizationnow.net immigration and naturalization

The Immigration and Naturalization Service is on the front line in the fight against terrorism. The agency’s been ordered to keep much closer watch on the nation’s borders and on the millions of visitors to this country every year, but to do that, the INS will have to overcome some major technical challenges. NPR’s Larry Abramson reports.

LARRY ABRAMSON reporting:

The United States is a modern nation in the midst of an historic globalization process, so having a world-class computer system for tracking immigrants might seem like a given. But it’s not. Former INS agents, like Jim Dorsey, say the agency’s information infrastructure is, basically, pretty ancient.

Mr. JIM DORSEY (Former INS Agent): The INS has not kept up with modern technology. They’re using a system that never really worked very well and that works even less well today.

ABRAMSON: Take the I-94 form, the little slips of paper that visitors drop off as they enter the country. Those sheets of paper are boxed up and then shipped to data entry facilities, where the information is laboriously keypunched in. Dorsey says, as a result, the information is sometimes months old before it’s available.

Mr. DORSEY: They’re always behind in putting the information in, and it takes time to get the information down to them, and by the time the information is loaded into the computer system, it is very old and virtually useless.

ABRAMSON: That means that, for example, the INS has no reliable way to track down the estimated two million illegal immigrants who stayed in the US longer than their visas allow. Of the 19 hijackers on September 11th, three had overstayed their visas.

The technology gap here not only makes it difficult to track immigrants, once they get here, it’s also difficult to run the kinds of background checks that might keep terrorists from coming here in the first place. Tom Fisher used to be director of the southeastern district of the United States for the INS, and he struggled to help automate this kind of information. He says such a system is exactly what officials and embassies around the world need when they hand out visas.

Mr. TOM FISHER (Former Director, Southeastern District, INS): That State Department official would have had the benefit of running one system that was tied into a multitude of different governmental systems and made a decision or, if any flags came up, could have called that person in for an interview for a more in-depth, let’s say, evaluation.

ABRAMSON: Right now, consular officials overseas must wrestle with a limited amount of information from different sources. For years, they have begged the FBI for access to the National Crime Information Center database, but the FBI resisted, saying that screening immigrants was not a law enforcement function. Now the recently passed anti-terrorism bill will finally grant that access. The INS also decided this week to include information about foreigners who are supposed to be deported. go to site immigration and naturalization

These efforts will help track people who have some sort of criminal record in the US, but information gathered by intelligence agencies has not been routinely shared among different agencies. Doris Meissner was INS commissioner under President Clinton.

Ms. DORIS MEISSNER (Former INS Commissioner): The intelligence agencies, which INS and State and Customs look to to post names and to give them names of the most sensitive, problematic cases, never shared and were as collaborative in that process as was needed. And it’s now been shown what a major flaw that has been.

ABRAMSON: These flaws are not news to members of Congress. Congress mandated automation in 1996 and again in 2000, but commercial pressures have helped slow the introduction of better systems. Businesses dependent on trade with Canada have opposed anything that would slow border crossings. Universities have battled a program that would force them to collect information on foreign students. But Senator Jon Kyl of Arizona says, in the end, the fault lies with the INS itself.

Senator JON KYL (Republican, Arizona): INS is supposed to keep track of people who leave as well as those who enter, so that we have some knowledge of those who are still here illegally–the entry-exit system. But they’ve never implemented that, despite the fact they’ve had a decade to do so. It’s not a law that they’re lacking. It’s just the will to do it.

ABRAMSON: Kyl has co-sponsored legislation that would try to force the INS to track foreign nationals more closely. But the push for better data management will not guarantee better security. Even if the agency does develop a computer system that can track everyone, the INS simply does not have the resources to go after every suspicious foreigner.

Until now, the enforcement of immigration laws has focused on people accused of actual criminal violations. The Immigration and Naturalization Service’s Scott Hastings says it makes more sense to stop suspicious visitors from coming here in the first place.

Mr. SCOTT HASTINGS (INS): The more warning that we can have, the more cross-checking that we can do before they ever hit the inspections booth, the better chance we can deter or intercept the bad guys. And so the question is to collect data on incoming people at the earliest point possible.

ABRAMSON: There is an alternative to the huge expenditures that will be needed to beef up the Immigration Service’s computer systems and to improve intelligence gathering. The United States could do what it’s done in the past: crack down on immigration, allow fewer people in and demand that they restrict their movements. That could bring a huge economic cost to the businesses that depend on open borders and seems to be a price few people are willing to pay. Larry Abramson, NPR News, Washington.

STAMBERG: The time is 19 minutes past the hour.

SUSAN STAMBERG

Ethanol Insurance For Farmers From John Deere

Dennis DaggettJohn Deere is now offering “ethanol insurance” through their John Deere Risk Protection division. It’s a policy for the grower who wants some extra coverage in case he can’t fulfill a delivery contract to an ethanol plant.

Dennis Daggett, Director of Marketing for John Deere Risk Protection, is on the scene here at the National Farm Machinery Show where I’ve been providing some coverage over on our AgWired site with them as the sponsor. Dennis has been involved in crop insurance for over 30 years. He says Deere offers standard policies like multi-peril and crop hail. But this year they’ve introduced a new ethanol policy.

The first thing a farmer needs to do though is have a multi-peril plan in place. Then they can purchase the extra coverage. Sounds like good timing as we hear about farmers continuing to work at meeting the needs for both fuel and food. The policy is available for this season in states in the grain belt area of the midwest only. You can find out all you want on their website.

You can hear Dennis talk about the new product here: nfms-08-daggett.mp3