Corn Growers: Not the Time to Cut RFS

ncga-logo-newTwo record corn crops and low prices for the grain – that’s not the time the U.S. should be cutting the amount of ethanol to be mixed into the nation’s fuel supply. That’s the message coming from the National Corn Growers Association, as the group laments the fact that altering the Renewable Fuel Standard (RFS) couldn’t come at a worse time.

“Corn ending stocks – the amount above and beyond current demand – are estimated at nearly 2 billion bushels this year, thanks to two back-to-back record harvests,” said NCGA President Chip Bowling, a corn farmer in Maryland. “And with corn selling at low prices, any legislative attempt to cut one of our key markets will drive prices even further below cost of production. We have a policy that works well not just for the environment and energy security – but for the rural economy. We need to support farmers, not bankrupt them.”

NCGA also shot back at an attempt in the U.S. Senate to attach an anti-ethanol amendment to the Keystone XL pipeline legislation, pointing out the many benefits ethanol brings and why it’s an important part of the fuel supply.

“Corn ethanol is better for the environment than fossil fuels and has historically lowered the cost of filling our tanks by nearly a dollar,” said NCGA Director of Public Policy Beth Elliott. “It has been proven that ethanol does not have an impact on the price of food. The Renewable Fuel Standard is working – creating clean, renewable, American-grown energy and good American jobs.”

NCGA says it wants to work with the new Congress to support the RFS.

Retailers Expand E15 Availability

sheetzPennsylvania-based convenience store and gas station chain Sheetz has announced that 60 of its locations in North Carolina will offer 15% ethanol blended fuel (E15) by the spring of 2016.

Growth Energy CEO Tom Buis says the company has over 400 locations across Pennsylvania, Maryland, Virginia, West Virginia, Ohio and North Carolina. “Sheetz is a well-known leader in the fuel retail business and their decision to offer E15 shows they are in tune with an ever changing marketplace where consumers are demanding higher performance, lower cost renewable fuels grown right here at home,” said Buis.

“This is great news for the nation’s corn farmers who have been promoting the benefits of ethanol blended fuel for more than 30 years,” said National Corn Growers Association president Chip Bowling, a farmer from Maryland. “This is a fantastic development for the rural economy and consumers who want a real choice in fuel.”

Renewable Fuels Association president and CEO Bob Dinneen notes
that the announcement comes on the heels of E15’s expansion into 15 states. “It’s invigorating to see a major North Carolina retailer like Sheetz actively decide to do what is best for their consumers by giving drivers access to additional fuel options,” said Dinneen. “Sheetz clearly sees the benefits of E15 and it is my hope that all other retailers in North Carolina will follow Sheetz’s exemplary example.”

Also, Miami-based CR Caraf Oil is opening the first E15 pump in South Florida this week, working in partnership with Protec Fuel.

Corn Growers Consider Growth Options for Ethanol

ncga-logo-newThe Ethanol Committee of the National Corn Growers Association met in St. Louis recently to discuss options to continue increasing demand for corn-based fuel.

“Ethanol has been a huge success story for agriculture and rural America because of the economic stimulus it has created through increased corn demand and new jobs. For the general public it provides reduced greenhouse gas emissions, better performance and fuel choice,” said Committee Chair Jeff Sandborn, a farmer from Michigan. “Despite all of our success educationally and legislatively, what we have created is a great start not final destination. We have 10% ethanol in virtually every gallon of fuel sold today but it will take a multidimensional approach to continue to grow the market for ethanol.”

The Ethanol Committee is investigating options to grow the ethanol market on many fronts including integrating higher ethanol blend compatibility into plans to update the nation’s aging fuel infrastructure; continuing to expand public acceptance and support for ethanol outside the corn belt; and evaluating the benefits of a national ethanol brand to aid in consumer identification at the pump.

“Fuel access is a high priority issue for the ethanol industry and corn farmers,” Sandborn said. “If we are going to continue to grow ethanol markets and realize the economic benefits of our ability to produce corn we will need to redouble our efforts to bring higher ethanol blends like E15 and E85 to the marketplace.”

Input from the committee will be relayed to the NCGA Corn Board for their consideration and for broader organizational discussion and policy development at Corn Congress in March.

New Corn Growers CEO Wants to Grow Demand

ncga-novakNew National Corn Growers Association (NCGA) CEO Chris Novak talked about challenges facing the corn industry as he visited with members of the agricultural media during the National Association of Farm Broadcasting convention last week in Kansas City.

“Lots of big challenges ahead for us,” said Novak, who just took over the CEO job for Rick Tolman who retired last month. “Looking at a record crop and lower prices than we’d like to see but that’s an opportunity as well.”

Novak sees increasing demand as the most important challenge and opportunity for the industry. “How do we ensure that with a second record crop in a row that we’ve got the demand that can keep our farmers profitable?” he said. The primary demand sectors – livestock, ethanol and exports – all offer new growth potential.

“Certainly EPA’s support and implementation of the renewable fuels law as passed by Congress is going to be important to us in the short term,” he added. “Longer term we’re looking to build consumer demand for a renewable fuel that increases our energy independence and helps reduce greenhouse gases.”

Chris Novak previously served many years as chief executive officer of the National Pork Board and prior to that, he was executive director of the Indiana Corn Marketing Council, the Indiana Corn Growers Association and the Indiana Soybean Alliance.

In this interview, Novak also talks about NCGA’s comments on the proposed Waters of the U.S. rule, and what he expects from the lame duck session of Congress and the new Congress in January. Interview with Chris Novak, NCGA CEO

2014 NAFB Convention Photos

NAFB Convention is sponsored by
NAFB Convention is sponsored by FMC

Ag Groups Urge President to Reject Biofuels Cuts

mess-rfsThe National Corn Growers Association (NCGA) and several other agricultural sent a letter to President Obama this week asking him to intervene with the Environmental Protection Agency regarding its proposed cuts in the 2014 volume obligations for the Renewable Fuel Standard.

“The blending targets and the methodology in your administration’s proposed rule are already causing significant harm to the biofuel sector,” the letter states. “These impacts are reverberating throughout the U.S. agriculture economy, and we expect this trend to continue if the targets and the methodology in the rule are not corrected.”

The letter discusses how the ag sector has met its responsibility in growing sufficient feedstock for biofuels, but is also working with the ethanol industry on infrastructure and advanced fuels. The letter concludes: “The EPA’s proposed policy decision is driving one of our key economic engines – the biofuel sector -¬‐ overseas. We have invested in response to the signals in the RFS and are poised to deliver the very low carbon fuels you have sought for so long. Instead of reaping the economic benefits of this investment with a build-¬‐out of a domestic biofuel industry, the methodology proposed by EPA is offshoring the industry – and our market. This is a decision we cannot afford in America’s heartland.”

In addition to NCGA, organizations sending the letter included the Agricultural Retailers Association, American Farm Bureau Federation, Association of Equipment Manufacturers, National Association of Wheat Growers, the National Farmers Union and National Sorghum Producers.

Promoting American Ethanol Texas Style

American-Ethanol-and-NASCAR-LogoThey say that everything is bigger in Texas so it’s appropriate that one of the largest E15 promotions of the year will be held this weekend about the benefits of American Ethanol for NASCAR fans at the Texas Motor Speedway.

“We have done 12 major promotions this year and have exposed millions of NASCAR fans to the performance and environmental benefits of Sunoco Green E15, but there is a lot of excitement surrounding this event,” said Jon Holzfaster, chairman of the National Corn Growers Association’s NASCAR Advisory Committee. “American Ethanol will be everywhere at this race, on the track, on the Midway, in the campgrounds and even on Big Hoss.”

big-hossBig Hoss is the world’s largest, high-definition LED video board, stands 218 feet wide by 94.5 feet tall and features 20,633.64 square feet of high-definition display. The 108 ton beast of a screen will be showing an American Ethanol video throughout the race.

American Ethanol partners Growth Energy and NCGA are joining forces with the Texas Corn Producers to make sure E15 fuel is prominently promoted at this high profile race.

The contest for the NASCAR Championship is now in its third round, and results in Texas and Phoenix will trim the field to only four drivers who will be eligible to win the Sprint Cup Trophy on November 16. As a result, tens of thousands of fans are expected to flock to the full weekend of races, with millions more tuning in on Sunday for the marquis Sprint Cup duel. Every car will be fueled with E15, and will sport the green American Ethanol fuel port as they have all season.

Dueling RFS Ads Have Same Tune

President Obama needs to overrule this misguided proposal from the EPA before it is too late and these new technologies move overseas. The fate of America’s advanced biofuel industry, along with the President’s clean energy legacy, are resting on his decision. Fuels America USA Today print ad

“Tell President Obama, stop playing politics – fix the RFS.”
American Petroleum Institute TV ad

fuels-americaBoth the American Petroleum Institute and Fuels America unveiled new media campaigns this week targeted at telling the White House what to do when it comes to volume obligations under the Renewable Fuel Standard (RFS). Both organizations held conference calls with reporters to announce the new campaigns.

The single, full page, USA Today ad that will run during Climate Week September 19-21 is a sharp contrast to the oil industry’s multi-million dollar television, radio, and online advertising campaign. “This has been a David and Goliath struggle all along,” said Brent Erickson with the Biotechnology Industry Organization on behalf of Fuels America. “The biofuels industry has been struggling against this Goliath oil industry that has spent millions and millions of dollars on ads.”

The biofuels industry ad stresses the opening of the first large, commercial-scale cellulosic ethanol plants this year and warns that “the companies and investors looking to deploy the next wave of cellulosic ethanol facilities have put U.S. investment on hold” until a decision on the future of the RFS is made. The API ad calls the RFS “Washington red tape” and blames ethanol for raising food prices and contributing to hunger, even though corn prices are lower than breakeven for farmers this year, according to National Corn Growers Association Vice President of Public Policy Jon Doggett. “We are selling corn today at about 35% of what we did just a couple of years ago, certainly below the cost of production for many of our growers,” he said.

API’s Bob Greco says they launched their campaign in part because of recent statements from EPA Administrator Gina McCarthy that the agency will raise ethanol requirements based on the latest gasoline demand figures for 2014. “Unfortunately, the administration seems to be playing politics with the RFS rule instead of doing what’s best for consumers,” Greco said. “You don’t have to be a political insider to see how the Iowa Senate race—and the White House fear of losing control of the Senate—plays into this decision.”

“Politics are being played on this issue by both sides,” said Doggett. “I don’t think anyone should be surprised.”

Fuels America is a “coalition of organizations committed to protecting America’s Renewable Fuel Standard and promoting the benefits of all types of renewable fuel already growing in America.” API is the “only national trade association that represents all aspects of America’s oil and natural gas industry.”

Listen to the Fuels America call, which also includes comments from POET-DSM’s Steve Hartig: Fuels America RFS Campaign call

American Ethanol a Winner for Corn Growers

fps14-ncga-robThe American Ethanol NASCAR program is in its fourth year now and the National Corn Growers Association (NCGA) considers it to be a big success.

NCGA incoming Vice President Rob Elliott of Illinois says American Ethanol began its partnership with NASCAR in 2011 supporting the transition to 15% ethanol. “NASCAR in its three levels has run over six million miles (on E15) which is the same number of miles EPA drove to prove E15 to be a good fuel,” Elliott said during an interview at Farm Progress Show this week. “The feedback we get is that 80% of NASCAR fans are now more likely to be very supportive of the use of ethanol in their own cars.”

The challenge still remains in getting more E15 into the market. “The ready availability of E15 at a broad number of stations, we’re just not there yet,” said Elliott, but he believes promoting through NASCAR is having an impact for the long term. “We’re moving the needle with 100 million NASCAR fans and we’ve seen the great benefit in the synergy created with NASCAR itself at a high level.”

American Ethanol is a partnership between NASCAR, NCGA, Growth Energy, New Holland with a number of individual ethanol producers and state corn grower groups.

Listen to an interview with Rob here: Interview with Rob Elliott, NCGA

2014 Farm Progress Show photo album

Corn Farmers Concerned About RFS and Low Prices

gps14-ncga-chipCorn farmers are concerned about the impact lower volume requirements under the Renewable Fuel Standard (RFS) could have on growers ready to harvest a record corn crop this year.

“We’re keeping a close eye on corn prices and are greatly concerned about efforts in Washington that may reduce or stifle demand for corn and raise the cost of production,” said National Corn Growers Association First Vice President Chip Bowling during the Farm Progress Show in Boone, Iowa this week. “As thrilled as we are with a record crop, we know it has its challenges.”

Bowling says it will be detrimental if the EPA moves forward with its proposal to lower volume requirements for corn ethanol to be blended into the nation’s fuel supply. “Reducing the demand of corn for ethanol will significantly impact corn prices – at a time when prices are already too low,” said the corn farmer from Maryland. “We need stability and we need EPA to stick to the statutory amount of corn ethanol in the RFS.” Chip Bowling, NCGA comments on record corn crop
Interview with Chip Bowling, NCGA

2014 Farm Progress Show photo album

USDA Predicts Record Corn Crop

U.S. farmers are expected to produce more corn than last year, according to the latest USDA report out today.

The August Crop Production report finds that good growing conditions are expected to help growers bring in a record-high crop at 14.0 billion bushels of corn, up 1 percent from 2013 which was also a record at the time. Yields are expected to average 167.4 bushels per acre, which would be the highest yield ever for the United States. Objective yield data indicate the greatest number of ears on record for the ten largest corn producing states.

NCGA-LogoDue to the increased production, the average farm price was lowered a dime from its July estimate, to a range of $3.55 to $4.25 per bushel, which National Corn Growers Association President Martin Barbre says makes it important to keep demand moving forward. “Now is not the time for our federal policymakers to be cutting into the ethanol standard, imposing undue regulations or going slow on trade agreements,” said NCGA President Martin Barbre. “Our farmers are doing their part, working hard and smart on their farms to bring in a good crop. It’s time Washington removed obstacles and cleared a path so we can sell America’s biggest and most versatile crop at a good and fair price.”

growth-energy-logoThe new World Agricultural Supply and Demand Estimate projects ending corn stocks to be 1.808 billion bushels, up 7 million bushels from July and the highest level of carryover stocks since 2005. “It is clear from this report that the food versus fuel debate over the U.S. renewable fuel policy can be put to bed,” said Growth Energy CEO Tom Buis. “It is time to stop attacking a homegrown American industry that is creating jobs, improving our environment and mitigating climate change, all while decreasing out dependence on foreign oil and fossil fuels. It is time that the facts, not rhetoric drive the debate and today’s WASDE report should finally end these ridiculous claims. This report makes clear that the American farmer can fuel America and feed the world.”

American Ethanol Driver Picks Up Trophy at Pocono

dillon1Ethanol-powered engines and sponsorship helped a young NASCAR driver to a recent win and could propel him to rookie of the year honor’s in NASCAR’s top division. According to the National Corn Growers Association (NCGA), American Ethanol spokesman Austin Dillon picked up a trophy at Pocono in the Camping World Truck Series this past weekend and has himself racing for a slot in NASCAR’s Sprint Cup Championship.

The feat accomplished three things: it reminded people how the rising race star got to be the truck champion in 2010; the win in a Chevy truck ended Toyota’s 12-race winning streak in the series; and it showcased American Ethanol, which was displayed on the side of his truck. Dillon scored his sixth career Truck Series win by surviving a green-white-checkered finish.

Ethanol supporters behind American Ethanol hitched a ride with Dillon three years ago as we he was just emerging as a household name in the sport. The move has proven to be a good one, with Dillon moving through the ranks of NASCAR’s finest, first winning the truck series in 2010, capturing the intermediate Nationwide title last year, and now vying for Sprint Cup Rookie of the Year honors.

Some experts say this year’s competition has been the best in a decade, as Dillon and fellow rookie Kyle Larson have been battling for one of the 16 spots in the race for the chase where the Sprint Cup Champion will be determined.

Oxygenate from Ethanol and Corn

xfxF Technologies Inc. is an advanced biofuel company that has developed a chemical process to convert corn or biomass plus alcohol (especially ethanol or methanol) into an oxygenate that can be blended with gasoline and diesel.

cutc-14-rob-randle“It’s a completely chemical process – no enzymes, no bacteria, no fermentation,” said Bob Randle of xF Technologies, who spoke at the recent Corn Utilization and Technology Conference. The end products are furoates – from either ethanol, methanol or butanol – that can then be used as oxygenates for fuel transportation to improve mileage, reduce emissions, increase lubricity, and more.

Randle says the technology offers co-location and add-on opportunities for ethanol and corn wet milling plants. “Because our primary feedstocks are corn and ethanol, or biomass and ethanol,” he said. “We can also be co-located with a cellulosic ethanol plant as well.”

Learn more in this interview: Interview with Bob Randle, xF Technologies

2014 CUTC Photo Album

EPA Hears Corn Grower Concerns About RFS

Members of the National Corn Growers Association (NCGA) meeting in Washington DC were able to share their concerns about the delayed rule on 2014 volume obligations under the Renewable Fuel Standard with EPA Deputy Administrator Bob Perciasepe.

epa-ncga“The number needs to be out, it’s really ridiculous,” said NCGA president Martin Barbre, pictured here on the right with Perciasepe. “He said ‘we’re behind time frame’ and we had some delegates stand up and say ‘you’re not behind time frame, you’re way late.'” The final rule was expected by the end of June but EPA officials say it is being delayed because of the massive volume of comments that need to be studied in order to make a decision.

Barbre says while they appreciate the fact that EPA is taking the time to make sure they make the right decision, delaying it until almost the end of the year causes problems in the market. “Sort of what has created this issue with RINS and that run up in the RINS price is the lateness of the oil companies getting the numbers,” said Barbre. “They’re supposed to have these number in the spring, they get them in the fall, and by the end of the year they have got to have met their obligations. So it puts them in somewhat of a bind.”

“We’re not usually on the side of defending the oil companies, but in this case they just need to get the numbers faster so they can get themselves where they need to be,” Barbre added.

Listen to Barbre’s comments here: Interview with NCGA president Martin Barbre

Mudsummer Classic Features American Ethanol

dillon-ethanolAmerican Ethanol will be in the spotlight today as driver Austin Dillon will be defending his crown at Eldora Speedway for NASCAR’s Mudsummer Classic World Truck series race in Ohio.

Last year, Dillon won the historic race driving his American Ethanol branded truck, his first truck race since winning NASCAR’s Camping World Truck Series championship in 2011.

“Eldora is always an exciting race for NASCAR fans, but it is an exciting opportunity for corn farmers too,” said National Corn Growers Association (NCGA) NASCAR Advisory Committee Chair Jon Holzfaster. “With American Ethanol spokesman Austin Dillon firmly in the spotlight, Eldora provides a great platform to get our message about the environmental and economic benefits ethanol offers all Americans to a broader audience. The buzz continues to grow. Ethanol helps clean our air, improve our economic independence and benefits American consumers and farmers alike.”

American Ethanol is a partnership of Growth Energy and the National Corn Growers Association.

Corn Growers Keep Ethanol in Focus

Ethanol and the Renewable Fuel Standard (RFS) were big topics this week as members of the National Corn Growers Association met in Washington DC.

ncga-ethanolMichigan farmer Jeff Sandborn, chair of the Ethanol Committee, said they spent the week talking with administration officials and members of Congress after being updated on the issues. “Right now, Congress faces rapidly evolving issues crucial to our members. The information and understanding coming out of these meetings will help each of our delegations make the strongest case possible for farmers.”

During the Ethanol Committee meeting, staff from the U.S. Environmental Protection Agency’s Office of Transportation and Air Quality provided an update on the regulatory issues facing the ethanol industry. On Thursday, the entire NCGA delegation heard from EPA Deputy Administrator Bob Perciasepe about the status of the pending 2014 volume obligation rule under the RFS.

“We greatly appreciate the deputy administrator’s willingness to participate in an open, well-considered conversation,” said NCGA President Martin Barbre of Illinois. While Perciasepe mainly dealt with the proposed Waters of the United States rule, he also fielded questions from growers pertaining to both the reduction in volume, and the continued delays of final RFS rule.