Domestic Fuel

When the cars, trucks, tractors, combines and other equipment at the 2011 Farm Progress Show in Decatur, Illinois needed fueling up, GROWMARK FS was there on-site to serve up home-grown fuel.

Mark Dehner, GROWMARK marketing manager for refined and renewable fuels, says they have been the official Farm Progress Show fuel supplier for many years. “It takes a lot of fuel. The demonstrations for tillage, for harvest, the main fuel is diesel fuel for the heavy equipment. That’s our Dieselex Gold proprietary diesel fuel with a biodiesel blend,” Dehner says. “We also have a ten percent ethanol blend gasoline for the gasoline-powered units.”

Dehner says the GROWMARK FS system started marketing ethanol back in the late 70s and they started field trials with biodiesel in the 90s and started selling it in the year 2000. “So biodiesel and ethanol have been a part of our Farm Progress Show for some time,” he said.

They have a fuel truck that stays out on the demo fields throughout the show to provide free fuel for all the equipment whenever necessary.

Listen to or download Chuck Zimmerman’s interview with Mark Dehner at FPS here: GROWMARK's Mark Dehner at Farm Progress Show

At their annual meeting last week in Chicago, the GROWMARK system reported record sales of $8.5 billion for 2010-2011, with the 2nd highest net income ever at $182 million..

Chairman of the board Dan Kelley, an Illinois grain farmer, says it has been a very good year for GROWMARK and agriculture in general. “Agriculture has been one of the stellar industries in this economic downturn over the last 2-3 years,” he said. “We have now recorded our best seven years in the history of the GROWMARK system, which is 84 years.”

Kelley says they have a long term commitment to homegrown fuels, like ethanol. “We were one of the pioneers in ethanol, probably over 30 years now since we pumped the first gallons of ethanol,” said Kelley, noting that they market rather than produce the fuel.

Listen to my interview with Dan Kelley here. GROWMARK President Dan Kelley

Renewable Fuels Association board member Ray Defenbaugh of Big River Resources West Burlington was at the annual meeting last week, as a director on the Riverland FS board in Illinois.

Defenbaugh says GROWMARK really demonstrates how well the cooperative system works. “A lot of our ethanol plants are cooperatives, GROWMARK’s a cooperative and we work well together. They recognize the importance of (ethanol) to agriculture,” he said, adding that ethanol helps support grain prices allowing farmers to afford the rising costs of fertilizer, equipment and other inputs.

Listen to or download the my interview with Ray here. Ray Defenbaugh, Big River Resources

2011 GROWMARK Annual Meeting Photos

GROWMARK is providing more homegrown fuels for members and area businesses around central Illinois.

The regional agricultural supply company bought the Menard Terminal from Magellan Midstream Partners in 2008 and today it handles gasoline, diesel, ethanol and biodiesel for FS members within a 120 mile radius, in addition to non-member companies like Casey’s and Thornton’s.

Terminal Manager Pete Nance says their market for renewable fuels continues to grow. “Right now we probably sell between 60-70 percent soy (diesel) and all of the gasoline that goes out is with alcohol,” he said during a recent tour of the facility, which is one of only two that GROWMARK owns.

GROWMARK has expanded into other areas of business besides agriculture to help their member companies continue to have the opportunity to grow. Lincoln Land FS Energy Marketing Manager Scott Long says they provide fuel for construction sites, asphalt companies and other non-agricultural clients to use their equipment and their people as efficiently as possible. “During the farming season we’re really busy, but during the other times of the year we need other income streams to support the farmers,” said Long. “We’ve grown about 70 percent in the last five years and most of that has been on the commercial side.”

Long notes that GROWMARK is one of the largest distributors of biodiesel in the nation and B11, or 11% biodiesel, is their most popular blend, for good reason. “In the state of Illinois, if you use an 11% blend, there’s no sales tax,” he said. “So it’s cost advantageous to the customers and it’s also a pretty good product to use to support our crops industry also.”

Listen to or download back to back interviews with Pete Nance and Scott Long of GROWMARK: Pete Nance and Scott Long

GROWMARK FS cooperatives promote a platform of homegrown fuels.

That was the message Kevin DeGoey of the GROWMARK FS cooperative New Century in Iowa gave at the recent Iowa Renewable Fuel Association summit in Des Moines during a panel presentation by retailers and fuel distributors on how the approval of 15 percent ethanol blends can bring more fuel choices to Iowa.

"Homegrown fuels gives us better performance, better for the environment, reduces our dependence on foreign oil," DeGoey said, noting that New Century has eight retail fuel locations and six tank wagon routes in all or part of nine Iowa counties. New Century just installed an ethanol blender pump at its Vinton, IA location last October. Currently, 87% of New Century's gasoline sales are E10 and two percent are E85.

DeGoey discussed the opportunities for ethanol under the E15 waiver by the Environmental Protection Agency and the need for increased use of blender pumps. "E15 moves the blend wall forward, better economics for the consumer, keeps our ethanol industry strong, it's good for Iowa," he summarized.

When it comes to biodiesel, DeGoey said that about four percent of their diesel sales are currently B2-B20 blends and they are committed to the biodiesel quality assurance program. "GROWMARK and New Century pride themselves in not only meeting standards, but we also like to exceed them, if possible," he said.

Check out DeGoey's power point presentation from IRFA's website and listen to or download his remarks at the summit here: "Kevin