Domestic Fuel

The National Corn Growers Association recently submitted comments on the impact of the Renewable Fuel Standard to the House Committee on Energy and Commerce in response to their second white paper, “Agricultural Sector Impacts.” In these comments, NCGA addressed how the RFS affects commodity products including corn, agricultural output and economics, RFS flexibility, food prices, cellulosic feedstock and global impacts.

The comments began by noting that corn farmers have responded to the increased demand of ethanol from the Renewable Fuel Standard by producing more corn and doing so in a more environmentally friendly manner. “In the last 30 years, corn production has improved on all measures of resource efficiency, by decreasing per bushel: land use by 30 percent, soil erosion by 67 percent, irrigation by 53 percent, energy use by 43 percent and greenhouse gas emissions by 36 percent.”

The remainder of the comments directly addressed questions posed by the House Committee on Energy and Commerce about impacts of the RFS. Topics of particular interest included impacts attributable to the RFS on corn prices, food prices, job creation, economic growth and land use change. NCGA comments provided a detailed look at the myriad of factors involved in each area that are often overlooked in discussions about this standard including: the impact of export demand for soy from China; the direct impact of the drought on beef production; alternative models and theories concerning the idea of indirect land use change; the impact of rising global labor and diesel costs on food cost; and the inherent flexibility of the standard.

In honor of Earth Day, racing is shifting gears this month to focus attention on environmental awareness with the NASCAR RACE TO GREEN™ campaign and American Ethanol is part of the effort.

The campaign is hosting a National Tree Planting initiative this month encouraging racing teams, tracks, drivers, partners and fans to pledge to plant some trees today – Earth Day – to help offset carbon emissions produced over the three national series over the season. Through the course of one mature tree’s lifetime, it absorbs about one metric ton of carbon dioxide – the same amount of carbon dioxide emitted by a NASCAR Sprint Cup™ car driving 500 miles.

American Ethanol has pledged to plant a tree for every mile raced in April. With almost 4,000 miles fuels by Sunoco Green E15 over the month, the 4,000 trees planted will be enough to offset the carbon emissions of all the miles driven on American-made ethanol in practices and qualifying laps.

“American Ethanol shares the commitment of NASCAR to operate sustainably and do our part to protect and preserve the environment,” said National Corn Growers Association board member Jon Holzfaster of Nebraska. “Farmers manage their farms every day with the tandem goals of making a profit but doing it in a way that is better for the environment. So we are proud to expand our commitment to NASCAR Green.”

NASCAR has also released a 30-second TV ad featuring Roush Fenway driver Greg Biffle and spotlighting the use of ethanol. “So, wanna be eco-friendly?” the announcer asks Biffle, who answers “Of course.”

ANNCR: “Ok, got corn?”
BIFFLE: “We got that.”
ANNCR: “Got some of it blended into fuel?”
BIFFLE: “Got it.”
ANNCR: “Got a car to use that fuel?”
BIFFLE: “Sure do.”

Watch it here:

The National Corn Growers Association (NCGA) has developed a comparison of the environmental impacts of ethanol and petroleum as transportation fuels. Using scientific data, the side-by-side comparison examines a wide array of environmental factors. Most know today that petroleum, made from oil, is not “renewable”. Created over millions of years, it will takes thousands of years for more oil to be developed. However, ethanol made from corn is renewable, with each new crop, a new crop of ethanol can be produced.

Here are some other key highlights of NCGA’s comparison:

• Ethanol is a tiny single substance that is non-toxic. Petroleum is a mixture of hundreds of different molecules and is toxic to biological organisms.
• Corn used for ethanol in the United States is grown on approximately five percent of our nation’s cropland. For perspective, ethanol production uses less than three percent of all grain crops grown over the entire world. Petroleum is mined across the entire globe and must be extracted from deep underground. In order to collect petroleum, landscape fragmentation and the generation of toxic, hazardous and potentially radioactive waste streams often occurs.
• Most corn-to-ethanol production facilities are located within 15 miles of the farms where the crop was produced. Since petroleum extraction happens across the globe wherever deposits can be found, it must be shipped to a facility where it can be refined.
• Based on the results of scientific testing, the EPA considers corn starch ethanol as producing 23 percent less greenhouse gas emissions compared to making and burning gasoline from petroleum. Recent evidence shows multiple ways of producing ethanol with 50 percent or less GHG compared to gasoline production.
• The U.S. oil and gas industry generates more solid and liquid waste than municipal, agricultural, mining and other sources combined.

NCGA says that looking at how the production of these fuels compares side-by-side, it becomes evident that ethanol is truly renewable and produced in a greener manner than its fossil fuel counterparts. Where petroleum creates reliance upon a fuel pulled from the ground and imported from abroad, ethanol improves our environment while increasing our national and energy security. Click here for the full comparison.

According to the USDA 2013 Prospective Plantings report, farmers intend to plant a little more corn and a little less soybeans this year, for a total of 174.4 million acres.

“This will be the highest total amount of acres for those two crops that we have on record,” said USDA chief economist Joe Glauber.

Corn growers intend to plant 97.3 million acres of corn for all purposes in 2013, up slightly from last year and 6 percent higher than in 2011. If realized, this will represent the highest planted acreage in the United States since 1936 when an estimated 102 million acres were planted. “While farmers struggled with drought last year, they remain resilient and dedicated to producing an abundant corn crop in 2013,” National Corn Growers Association First Vice President Martin Barbre said. “This report shows that the innovative American farmer understands the increasing global demands of corn for food, feed, fuel and fiber and that they see the importance of meetings those needs.”

The majority of acres gained lie outside of the traditional Corn Belt, with only Minnesota, North Dakota and Ohio projecting increased acreage planted to corn within that area. Acres planted to corn outside of the Corn Belt made gains in Arkansas, Georgia, Texas and Mississippi. Final planting projections remained close to last year’s acreage as Colorado, Illinois, Indiana, Kansas, Missouri, Nebraska and South Dakota all project planting at least 100,000 fewer acres than in 2012, with Illinois projecting acres planted to corn will drop by 600,000 acres from 2012. The actual number of planted acres will be released in USDA’s June 28 report.

Soybean acres are estimated at 77.1 million acres, down slightly from last year but the fourth highest on record.

Ethanol was high on the priority list for delegates to the National Corn Growers Association Corn Congress policy meeting last week during the 2013 Commodity Classic.

NCGA President Pam Johnson said they will continue to fight the attacks on both the Renewable Fuel Standard and the approval of E15 in the marketplace. “We will not let these attacks stand,” said Johnson. “We know our potential to produce is very great and we know that we need to continue to build that demand.”

NCGA notes that even with last year’s record drought, more corn growers than ever before had yields of 300 or higher on the National Corn Yield Contest, demonstrating the ability for farmers to meet the demand for corn in all markets, including both livestock feed and ethanol production.

Johnson says growers have been hit with demand destruction because of the drought but “we hope to plant a really great corn crop this year and get some of that back.”

Of course, getting a comprehensive five year farm bill passed this year after being delayed is really the top priority for corn farmers and NCGA supports fundamental changes to farm programs that include effective and affordable federal crop insurance that will provide assistance to growers only when it is most needed.

Listen to Pam Johnson summarize issues important to corn growers at the 2013 Commodity Classic: NCGA President Pam Johnson

2013 Commodity Classic Photo Album

American Ethanol will be continuing its partnership with Richard Childress Racing and driver Austin Dillon, who won Rookie of the Year last year, for the 2013 NASCAR season. Dillon will race the No. 33 American Ethanol Chevrolet in the NASCAR Sprint Cup Series at Michigan International Speedway on June 16 and will drive a RCR-fielded entry in the NASCAR Camping World Truck Series at Eldora Speedway on July 24 with an American Ethanol paint scheme.

“We want to show the people coast-to-coast there is a great alternative to imported oil and our association with NASCAR and RCR is doing that extremely well,” said Jon Holzfaster, a Paxton, NE farmer and chairman of the National Corn Growers Association’s NASCAR Advisory Committee. “Ethanol is also responsible for bringing a rural renaissance from Main Street to the family farm.”

In addition to the races mentioned above, American Ethanol, a program that seeks to expand consumer awareness of the benefits of ethanol and E15, will be an associate sponsor of Dillon’s No. 3 AdvoCare Chevrolet in the NASCAR Nationwide Series race on Saturday, Feb. 23, and Honey Nut Cheerios No. 33 car in the Sprint Cup Series this weekend at Daytona International Speedway.

“American Ethanol is extremely pleased to once again partner with Austin Dillon, Richard Childress and the entire RCR team to help promote a sustainable homegrown American fuel that is better for our environment, reduces our dependence on foreign oil and creates jobs right here in the U.S., while revitalizing rural economies across America,” said Tom Buis, CEO of Growth Energy.

As part of the sponsorship, Dillon has become and official spokesperson for American Ethanol. “It feels good to be able to help spread the news about American Ethanol and encourage every American to run the fuel of the future, American Ethanol, in their personal vehicles,” said Dillon. “If American Ethanol can withstand the rigors of NASCAR, it can withstand everyday driving. Homegrown biofuels like American Ethanol have stepped up to help our nation’s economy, and are proving to be a better fuel. I am proud to wear the American Ethanol colors in NASCAR and I hope I can bring them to Victory Lane in the NASCAR Sprint Cup Series and the NASCAR Camping World Truck Series in 2013.”

Representatives from corn growers, the oil industry, advanced ethanol and the investment community addressed the future of the Renewable Fuel Standard (RFS) during the 18th National Ethanol Conference.

The panel moderated by Geoff Cooper with the Renewable Fuels Association included National Corn Growers Association CEO Rick Tolman, John Reese with Shell Oil Products, Advanced Ethanol Council executive director Brooke Coleman, and Mark McMinimy with Guggenheim Securities.

Listen to the discussion here: NEC Future of RFS panel

NCGA’s Tolman told the audience that the corn growers believe the RFS has been a huge success but he does believe there are implementation challenges going forward and one he noted was the language that restricts corn from being considered an advanced biofuel. “The industry has a petition at EPA right now to see if we can have a pathway approved for corn fiber from the kernel as an advanced biofuel,” said Tolman, and in the future they hope to address the arbitrary restriction on corn starch as an advanced biofuel.

Tolman says the RFS will be a topic of discussion with corn growers at the upcoming Commodity Classic in Orlando later this month.

Listen to an interview with Rick here: NCGA CEO Rick Tolman

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

According to a new study performed by the U.S. Department of Agriculture, corn grown using no-till methods may sequester larger amounts of carbon than previously believed. The study was published in BioEnergy Research and showed that corn grown over a 10-year period using no-till practices sequesters carbon in the soil to depths as far as 59 inches under the surface. Previous studies only looked at depths of 11 inches and did not take into account carbon sequestration below tillage depths. These past studies arguably missed more than 50 percent of the increase in soil organic carbon below this depth.

With this new information, models used to calculate and predict the environmental benefits or liabilities of corn production will be able to better reflect the actual impact. As the study shows an average annual increase in soil carbon of approximately 1.2 tons of carbon per acre, new models will likely show more accurately how corn-based ethanol offers a tremendous greenhouse gas emissions reduction when compared to petro-fuels. Soil organic carbon and its sequestration are important, because they affect both soil fertility and greenhouse gas fluxes.

“The findings of this study are important in that they demonstrate a previously overlooked environmental benefit of corn production in general and of corn-based ethanol in specific,” said National Corn Growers Association Corn Board member Keith Alverson. “Estimates of the greenhouse gas savings corn offers over petro-fuels will undoubtedly show a more significant savings once data of this nature is factored into the overall analysis. Farmers are working harder every day to produce food, fuel and fiber sustainably as they actually improve the land through their growing practices. As scientists expand the pool of data, the positive impact of the biofuels produced from their crops becomes clearer also.”

The study, also looked at switchgrass, and was the longest on-going effort to look at carbon sequestration by these two crops.

The ethanol by-product and livestock feed known as distillers dried grains with solubles (DDGS) is now officially recognized as a non-hazardous cargo by the International Maritime Organization (IMO).

The official IMO classification became final and mandatory under the code of the International Maritime Organization on Jan. 1, 2013, after action by the U.S. Grains Council on behalf of its member organizations like the National Corn Growers Association (NCGA).

“While DDGS have effectively been shipped as a non-hazardous cargo for years now, the final classification by the IMO is an important success which will benefit corn farmers across the country,” said NCGA President Pam Johnson. “This status provides additional assurance that DDGS buyers and producers can access the lower freight rates assessed for non-hazardous cargo. U.S. farmers work diligently to ensure at every point in the process that we continue to provide the stable, consistent, quality product that our export markets expect.”

The classification provides savings in the form of lower freight costs which, in turn, increase the return to ethanol plants producing the high quality feed ingredient. Exports of DDGS from the United States have increased tremendously in recent years.

The National Corn Growers Association has created a simple website that offers just the facts about ethanol.

The website EthanolFacts.com offers information about E15, food versus fuel, energy security, jobs in rural America and more. There is a lot of discussion about ethanol these days, and plenty of need for a look at the facts. That’s why the National Corn Growers Association has created the EthanolFacts.com website as a simple place to get the facts and links to a lot more information about our favorite domestic renewable fuel.

“For years, NCGA has been at the forefront of promoting ethanol as an important choice for today’s drivers, who are demanding fuels that are not only cleaner-burning, but powerful and made right here in the United States,” said Chad Willis, a Minnesota corn farmer who serves as chairman of NCGA’s Ethanol Committee. “EthanolFacts.com provides the key information to people who want to know the simple truth about a very complex subject so they can continue the conversation about how farmers are not only helping feed the world, but fuel it, too.”

EthanolFacts.com was designed for simplicity and clarity on a number of platforms, especially mobile platforms such as tablets and smartphones – and NCGA also has print versions available.

American Ethanol sponsored driver Austin Dillion has won the 2012 NASCAR Nationwide Series Sunoco Rookie of the Year award. The ethanol industry has congratulated him and now fans have an opportunity to congratulate Dillion during the American Ethanol live Twitter chat that he will host Monday, December 10, 2012 from 10:30 am to 11:30 am CST.

Dillon was officially named the 2012 NASCAR Nationwide Series Sunoco Rookie of the Year at Homestead-Miami Speedway. He joins his younger brother, Ty Dillon, as a 2012 Sunoco Rookie of the Year. The younger Dillon clinched the NASCAR Camping World Truck Series version of the award on Friday evening.

“All of the American Ethanol partners are so excited for Austin,” said National Corn Growers Association NASCAR Advisory Committee Chairman Jon Holzfaster. “Rookie of the Year is a big win both for him personally and for farmers across the country. With all eyes on Austin, NASCAR fans also get to see the performance and benefits another homegrown winner offers when E15 fuels the race. Every car in every series races to the finish with E15 in the tank, but we are particularly proud that such a talented young driver speaks on our behalf.”

Austin Dillon, who drives the No. 3 car for Richard Childress Racing, culminated his first full season in NASCAR’s No. 2 tour with two race wins, sweeping both Kentucky Speedway events, along with 16 top-five finishes, 27-top-10s and 3 pole awards. Dillon finished third in the championship point standings and was formally honored for his 2012 accolades at the NASCAR Nationwide Series and Camping World Truck Series championship awards banquet.

Since their stock and trade is the biggest feedstock for ethanol production, it only seems natural that the National Corn Growers Association has joined the Urban Air Initiative, an organization that promotes the human health and environmental benefits of ethanol. The group is a coalition that supports government standards to lower harmful automobile emissions.

“Joining UAI will benefit corn farmers by involving NCGA in important conversations about how ethanol can help our nation achieve important health and environmental goals,” said NCGA Ethanol Committee Chair Chad Willis. “Additionally, joining UAI builds relationships with a variety of influential groups, such as those representing asthma interests, with whom we share common interests but have not previously collaborated. Conversations about reducing the harmful effects modern traffic has upon our respiratory health and the health of our planet play a major role in the formation of public policy. It is imperative that we join in and make sure farmer voices are heard.”

Several of NCGA’s state affiliates have already been funding support for the UAI, including the Iowa Corn Growers Association, the Kansas Corn Growers Association, the Minnesota Corn Growers Association, the Nebraska Corn Growers Association and the North Dakota Corn Growers Association. NCGA will have three seats on the steering committee, to be filled by NCGA Ethanol Committee Vice Chair Paul Taylor, NCGA Director of Biofuels Pam Keck and a corn grower not yet selected.

High school senior Jason Girouard from Brimfield, Massachusetts has won the Ethanol Rocks video contest sponsored by the National Corn Growers Association. Girouard was awarded $1,500. Freshman Emily Yue from Gilford, Connecticut and senior Lewis Kloster of Minneapolis, Minnesota were both awarded second-place honor and $500 a piece.

“The purpose of the contest was to get youth interested in learning about renewable fuel while having fun,” said NCGA Ethanol Committee Chair Chad Willis. “However, I think we may have turned a few of the more inquisitive kids into ethanol evangelists. The enthusiasm about their learning experience was the biggest payoff of the project.”

Students from across the U.S. submitted entries and learned a bit more about ethanol along the way. Many focused on co-products produced during the ethanol production process such as distillers grains and CO2 used to carbonated beverages. Yet what judges found most intriguing was seeing the experiences of an urban American who walked into a corn field for the first time.

State corn associations across the country are working to bring more choice for consumers at the pump through the use of higher blends of ethanol, such as E15. Several programs are in place to help retailers install the infrastructure needed for consumers to take advantage of EPA’s decision to allow E15 to be used in vehicles 2001 and newer. In addition, the groups are working to install flex fuel pumps that dispense mid-level blends of ethanol such as E20 and E30 as well as E85, blends that can only be used in flex-fuel vehicles.

Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota all have efforts to increase the use of higher ethanol blends in their respective states by helping fund the installation of the necessary fuel pumps. From programs that completely support the installation of E85 pumps for retailers looking to convert multiple locations to programs that help cover the cost of signage highlighting ethanol options.

Today there are around 162,000 retail stations nationwide; yet, only 3,000 offer E85 and significantly less offer E15. But for most retailers who were early adopters of ethanol blends, they find a financial advantage to selling the higher ethanol blends in increased sales.

In addition to the various state programs, there are also two additional campaigns, the American Ethanol partnership with NASCAR® and the Blend Your Own program, to help increase infrastructure, awareness and adoption of higher ethanol blends. Retailers looking for more information on aid for the installation of infrastructure for higher blends of ethanol, visit the Blend Your Own Ethanol website.

Today is the last day to file comments with the Environmental Protection Agency on the Renewable Fuel Standard (RFS) waiver request and the National Corn Growers Association (NCGA) is urging farmers and other stakeholders to make their voices heard.

In comments submitted to EPA today, the NCGA expressed strong support for the RFS and noted that granting a waiver at this point would be premature.

“NCGA and our member associations have long supported the RFS2, including the waiver provision process,” wrote NCGA President Pam Johnson, an Iowa corn grower. In response to a 2008 waiver request, EPA had established that severe harm to the economy attributed to the RFS was one of only two grounds for granting a waiver. “We believe the burden of proof for severe harm to the economy falls on the petitioner,” Johnson said. “Since higher feed prices are only one piece of a complicated economic puzzle we believe the petitioners have failed to establish this proof.”

Although most livestock groups have lobbied for some waiver relief from the RFS, a large waiver may not be in their best long-term interest, NCGA’s comments state. Most notably, reducing the amount of corn processed for ethanol will cause a reduction in distillers grains. Several recent studies have analyzed potential impacts on the feed markets from reductions in the RFS. While a waiver may modestly lower corn prices, reduced distillers grains availability and increased soybean meal costs will negate a significant portion of the savings from reduced corn prices.

Read NCGA’s comments to EPA.