Domestic Fuel

Those high-powered tractors that scream down the track will have even more sternum-rumbling power as they’ll soon be running on 100 percent biodiesel. This United Soybean Board news release says the National Tractor Pullers Association (NTPA) will allow for the pure green fuel in all of their diesel pulling classes this season. It’s good news for the pullers, who will see a 4 percent increase in torque and horsepower, according to a study conducted by the United Pullers of Minnesota paid for by the state soy checkoff board in Minnesota:

“Performance results like these are an added bonus to the environmental and economic benefits of using biodiesel,” says Larry Marek, soy checkoff farmer-leader and a soybean farmer from Riverside, Iowa. “If NTPA pullers can get these kinds of results on the track, we can certainly get great results using B100 on the farm.”

“B100 performs well, and is dependable even in the most excruciating tests,” says Gregg Randall, NTPA office general manager. “Pullers will definitely want to take advantage of the fuel this pulling season.”

Check out the entire 2013 NTPA competition schedule here so you can experience first-hand the rumble and thunder of your favorite tractor pullers… now using B100.

Soybean growers are getting more for their beans because of biodiesel, but consumers aren’t being pinched by higher food prices at the grocery stores. According to the United Soybean Board, a new study done for soybean checkoffs in Minnesota, Nebraska and the Dakotas show that biodiesel production has pushed U.S. soy oil prices higher than they were before the green fuel, increasing soy-oil revenues by $15 billion between 2006 and 2012 while pushing up the price of a bushel of soybeans by $0.74 a bushel:

It appears that biodiesel demand also helped offset the effects of a drop in food applications.

“When trans-fat labeling decreased the use of soy oil for food applications, specifically cooking oils, it created a huge drag on the soy-oil price due to surplus,” said Lewis Bainbridge, United Soybean Board (USB) secretary and a soybean farmer from Ethan, S.D. “We generated a huge stockpile, and that’s when the demand for biodiesel started, which helped decrease the glut of soy oil.”

Meanwhile, all those soybeans processed for biodiesel production are also being turned into more soy meal, lowering the cost of feed poultry and livestock farmers. The study says biodiesel production lowers soy meal prices by as much as $25 per ton.

Biodiesel made from soybeans is a clean fuel for many gas tanks, including the buses that haul kids to school. Now those same children hauled by the green fuel can also get a lesson in chemistry from it. The Indiana Soybean Alliance is offering a Soy Biodiesel Chemistry Kit, touted as a valuable educational science lab for high school students, free of charge to teachers in Indiana and just $225 to out-of-state teachers:

Developed by Purdue University researchers and public school teachers, the kit is an engaging way to apply the basic skills and principles of chemistry. It’s also useful for showing high schoolers real-world chemistry applications and the growing importance of the alternative fuel industry, which is primarily derived from renewable natural resources like soybean oil.

“The lessons offered in the kit are aligned with the National Science Education Standards, and we think that it is an important component to encourage teachers to incorporate these lessons into their classrooms,” said Don Wyss, chairman of ISA’s biofuels committee and a farmer from Ossian, Ind.

The kits have enough supplies for 20 students working in pairs to perform each of each of the six hands-on exercises and experiments. More information is available here.

The Illinois Soybean Association’s checkoff-funded campaign touting the benefits of biodiesel is getting ready to make its next stop at a major petroleum tradeshow. Started in early February, ISA’s “Get Pumped Up!” On Biodiesel campaign goes to Indianapolis, Ind., for the Midwest Petroleum and Convenience Tradeshow (M-PACT), April 16-18th:

“A strong and growing biodiesel industry strengthens the Illinois soybean industry and the state’s economy,” says Lyle Wessel, soybean farmer from Waterloo, Ill., and ISA director. “Biodiesel’s environmental and cost benefits are central to ISA’s effort to get diesel drivers excited to fill up with this accessible, renewable fuel.”

Aside from the economic value of production, the campaign touts biodiesel’s reliability, cost-efficiency and sustainability. Compared to petroleum diesel, biodiesel reduces greenhouse gases by more than 50 percent. Biodiesel blends are approved by most modern OEM automakers.

ISA points out that its state sells more biodiesel than any other state. Check out the YouTube video below.

As I noted in the most recent Domestic Fuel Cast, neither President Barack Obama or former Governor Mitt Romney get too specific when talking about renewable energy (ethanol was mentioned just once by name during their three debates in October, and biodiesel seemed to be just about as absent). But that doesn’t mean they won’t mention these things when directly asked. So, the American Soybean Association decided to pose the question directly to them about the renewable energy source most near and dear to its heart, biodiesel.

Pointing out the rising cost of foreign oil, monetarily and national security-wise, and the fact that biodiesel, made from soybeans reduces the need for oil while also producing animal feedstock and putting more Americans back to work in biodiesel refineries, the ASA asked each candidate: How would your administration protect the ability of the biodiesel industry to remain viable?

President Obama: We must invest in a clean energy economy that will lead to new jobs, new businesses, and reduce our dependence on foreign oil. I recently announced a new goal of cutting oil imports in half by the end of the decade. Developing the next generation of biofuels will help us achieve this goal, and reducing our dependence on foreign oil will help create millions of new jobs that can’t be outsourced. We are already making progress. U.S. biofuel production is at its highest level in history. Last year, rural America produced enough renewable fuels to meet roughly 8 percent of our needs, helping us increase our energy independence to its highest level in 20 years. And a higher renewable fuel standard is boosting an industry that supports 39,000 jobs and ensuring its continued growth.

Governor Romney: I have a plan to achieve North American energy independence by 2020, and biofuels will play a role in enabling us to achieve that goal. I believe that all of our energy resources are and should continue to be a source of long-term competitive advantage for ournation. My policies broadly aim to ensure that all of our energy industries can sustainably become competitive, innovative and efficient. I support biofuels, as well as the RFS and would seek to eliminate the regulatory barriers to a diversification of our fuel system.

Read the rest of their responses to other questions ASA posed here.

Grain buyers from around the world in attendance at the 2012 Export Exchange had the opportunity to embrace the US producers perspective on the 2012 crop through a producer panel during the opening general session. Key panelists were Ron Gray, Illinois farmer and Secretary/Treasurer of the US Grains Council, and John Mages, Minnesota farmer and Chairman of the Minnesota Corn Research & Promotion Council.

They shared their personal experiences overcoming the 2012 drought and assured buyers of their fight and passion to raise a consistent and quality product.

Listen to the entire Producers Panel here: Producer Panel at Export Exchange

Following the opening session I took the time to talk with Ron Gray, where he summed up the 2012 corn crop and how farming for him is more than a job, its a personal endeavor.

“For us the 2012 crop started out with all the hope of an extraordinary crop. We planted early, the crop went in very well, emergence was good. Then it didn’t rain. Beginning the second week of May through the first week of August we only had about three inches of total rainfall and because of that our corn crop was severely reduced in production. Our farm probably averaged 50 bushels an acre, which is approximately 1/3 of our normal production. The rainfall did come later and the soybean crop is a fairly good crop, but the corn crop was devastated.”

Listen to my interview with Ron here: Ron Gray Interview

Beyond simply listening to producers, international grain buyers had the opportunity to visit farms across the United States. The goal was to gain information, assess the current US corn crop, explore the availability of other grains such as sorghum and barley, and build relationships leading to future sales.

Many participants expressed a preference for buying US grains due to the consistency and quality of the grain. They also appreciate the transparency and reliability of the US marketing and delivery systems. Clearly price and availability hindered US exports this year, but buyers are looking forward to a better crop next year.

You can find photos from this years Export Exchange here: 2012 Export Exchange

To kick off the 2012 Export Exchange attendees heard from keynote speaker Carl Casale, President and CEO of CHS, Inc., on the outlook for global grains and renewable energy.

Casale started off stated that the outlook simply depends on lots of different things and we have to focus on what we do know. He left attendees with one question: Do we have a strategy to survive, or even thrive in a volatile world?

Listen to Carl’s entire presentation here: Carl Casale at Export Exchange

While interviewing him after his presentation, he discussed the long term goals for global grain production and what we should expect production wise in the next year.

“The first thing you need to do is just take a step back and look at what the global demand is going to be over the long term. We have talked about 9 billion people on the planet, that’s going to require a 50% increase in grain production. As importantly, the 9 billion people are going to eat meat so there is another 50% increase in grain production to be able to feed livestock around the world. I have not seen anything that says that that’s not probably where we are going to be in the long term.”

“If you look at the market signals, it’s telling farmers that we want more corn acres in the US coming off a bit of a short corp that we had this year. Farmers are very well capitalized. I don’t think that will be an issue interms of getting hte corn produced. I think probably the biggest physical challenge we are going to have right now is we typically apply a lot of fertilizer for corn in the fall. It was so dry this year we just didn’t have the opportunity to do it. So, that will put al lote more pressure on supply chains in the spring.”

Listen to my interview with Carl here: Carl Casale Interview

You can find photos from this years Export Exchange here: 2012 Export Exchange

The National Tractor Pullers Association (NTPA) is going to help promote biodiesel to its fans with the help of the United Soybean Board (USB). Beginning next season, all tractors will use B100 (100 percent biodiesel) in all pulling classes. The goal of the program is to increase biodiesel use among farmers, truck drivers and other diesel users who are a large component of the sport’s fan base.

“The NTPA has been a good partner with the soy checkoff,” says United Soybean Board (USB) Director Jim Willers, a soybean farmer from Beaver Creek, Minn. “We are pleased that tractor pullers will be able to use B100 and show off what biodiesel can do for their engines.”

A recent study by the Minnesota Soybean Research & Promotion Council (MSR&PC) and the United Pullers of Minnesota (UPM) found that using B100 in a pulling tractor can add up to 4 percent more horsepower and torque compared with traditional diesel. Prior to testing of B100 and this partnership, NTPA fuel regulations limited the use of biodiesel to lower blends.

“We now have a reliable test to make sure it’s B100, so pullers can use it right out of the pump,” says Gregg Randall, NTPA office general manager. “The biggest thing is that this will be the ultimate proof that biodiesel performs well, which is what our partnership with the soy checkoff is all about.”

The United Soybean Board has partnered with the NTPA for the past six years to help increase biodiesel availability and use among pulling fans. And for the third year in a row, the checkoff sponsored the NTPA’s “Powered by Biodiesel” Light Pro Stock class, in which all competitors use biodiesel blends.

Paseo Biofuels is making plans to expand their biodiesel facility located in Kansas City, Missouri by 40 percent. The plant uses soybean oil as its primary feedstock and currently produces 40 million gallons of biodiesel and 30 million pounds of glycerin each year. The expansion is expected to be completed by March 2013.

“Our partnership with Paseo has gone very well over last four years. Together, we have built an excellent operation that serves many of the major petroleum retailers in the U.S.,” said Cargill Grain and Oilseed Supply Chain North America Business Unit Leader, Mark Stonacek.

The plant went into operations in 2008, and more than 650 agricultural producers have shares in the facility. Paseo Biofuels also has a joint venture with Cargill.

Dale R. Ludwig, the executive director and CEO of Missouri Soybean Associated said the business model is ideal. Having a biodiesel plant co-located with a soybean crushing facility reduces costs and saves time and money.

“I am pleased to see Missouri businesses and our agricultural producers coming together to make a significant capital investment to create new opportunities in the Show-Me State,” said Governor Nixon about the expansion announcement. “This is a partnership that is growing by expanding markets for our farmers and farm families and making renewable, North American energy more accessible. We are glad to have them grow in Missouri.”

USDA is changing the release time of certain key statistical reports beginning in January 2013.

According to a USDA news release the National Agricultural Statistics Service (NASS) and World Agricultural Outlook Board (WAOB) will begin issuing several major USDA statistical reports at 12:00 p.m. EDT beginning in January 2013. The current USDA release time of 8:30 a.m. EDT will remain in effect until January 1, 2013. USDA statistical reports affected are: World Agricultural Supply and Demand Estimates, Acreage, Crop Production, Grain Stocks, Prospective Plantings, and Small Grains Summary. The time for livestock reports currently released at 3:00 p.m. will not change.

USDA officials made the decision about the release times after considering nearly 150 comments submitted by stakeholders during a 30 day comment period between June 8 and July 9, 2012. “USDA considered all comments and thanks everyone for their thoughtful suggestions,” said USDA Chief Economist Joseph W. Glauber. “The shift to a noon release allows for the greatest liquidity in the markets, provides the greatest access to the reports during working hours in the United States, and continues equal access to data among all parties.”

Tom Slunecka has been named the new executive director for the Minnesota Soybean Growers Association (MSGA) and Minnesota Soybean Research & Promotion Council. Prior to taking the helm of the soybean team on August 27, 2012, Slunecka was the vice president of marketing for PhibroChem where he focused on ethanol and animal agriculture. He also served as the executive director of the organization Ethanol Promotion and Information Council (EPIC).

“I am very happy to have the opportunity to work with these strong groups and look forward to the challenges and opportunities that agriculture will be faced with in the coming years,” said Slunecka, a long-time member of the biofuels and agricultural industry. “I am excited to help execute current and future research projects to bring new opportunities to Minnesota producers’ farm gate. Equally important is to continue to work with the strong leaders developing and implementing farm policies necessary to support soybean farmers’ profitability. I appreciate the opportunity to play a part in fulfilling the visions set forth by Minnesota Soybean.”

Slunecka is moving to Minnesota from Omaha and is a native of South Dakota. He holds a Bachelor of Science degree in Business Agriculture from South Dakota State University in Brookings and will bring his vast experience to the soybean industry.

“We are very happy to add a leader of the quality that Tom provides,” said MSGA President and Dodge County farmer Bruce Schmoll. “He is visionary and will help establish and achieve goals that will benefit soybean growers across Minnesota.”

During the 244th National Meeting & Exposition of the American Chemical Society a new integrated soybean biorefinery was revealed. The technology is designed to create a wider portfolio of products from soybeans.

“Mention soybeans to most people, and they immediately think of the oil,” said Ramani Narayan, Michigan State (MSU) University Distinguished Professor, who reported on the new biorefinery technology. “Soybean oil is the world’s most widely used edible oil. It’s in some margarines, shortenings, mayonnaise, salad dressings, frozen foods, baked goods and many other items. But soybeans are about more than oil. Soybeans are nuggets of green gold that can be a treasure trove of ingredients for other products, and our new biorefinery provides a glimpse of that potential.”

The biorefinery is a fairly new product, often times it is associated with second generation feedstocks such as corn stover, algae and agricultural waste that can produce biofuels, biomaterials and biochemicals. Until now, the mention of soybeans in this emerging environment was rare.

Narayan aid that soybeans pack similar potential as corn as a feedstock but until now, soybean processing facilities have typically focused on producing oils and meal for livestock feed. Switching to the biorefinery concept, the soybean can be transformed into a much wider array of valuable materials. For example, components of a soybean could be turned into polyurethanes, including rigid foam insulation, flexible foams for packaging, as well as coatings, adhesives and elastomers.

The soybean meal could be further processed to yield components used in polyester plastics for fabrics, ropes, car tires, plastic bottles, and LCD screens as well as used in Nylon and Kevlar for bulletproof vests and fire-resistant Nomex. Not enough? Soybeans could also be broken down and built back up as as an ingredient is formaldehyde, a toxic chemical used in a range of products from paint to clothing to children’s toys. And the list goes on.

“The biorefinery can utilize essentially every component of the soybean in the production of bio-based ingredients for high-value products,” Narayan added. “It makes sense from a sustainability standpoint, in which we strive to reduce our dependence on petroleum as a feedstock. It also benefits the soybean farmers and raises the value of the local economy.”

The drought is certainly taking its toll on row crops, and that could be trouble for the nation’s biodiesel and ethanol makers. The latest USDA crop report out this morning shows that the corn harvest this year will be down 13 percent from last year’s numbers, with soybeans expected to be 12 percent lower than 2011.

Corn production is forecast at 10.8 billion bushels, down 13 percent from 2011 and the lowest production since 2006. Based on conditions as of August 1, yields are expected to average 123.4 bushels per acre, down 23.8 bushels from 2011. If realized, this will be the lowest average yield since 1995. Area harvested for grain is forecast at 87.4 million acres, down 2 percent from the June forecast but up 4 percent from 2011.

Soybean production is forecast at 2.69 billion bushels, down 12 percent from last year. Based on August 1 conditions, yields are expected to average 36.1 bushels per acre, down 5.4 bushels from last year. If realized, the average yield will be the lowest since 2003. Area for harvest is forecast at 74.6 million acres, down 1 percent from June but up 1 percent from 2011.

U.S. Secretary of Agriculture Tom Vilsack traveled back to Iowa today, praising biodiesel in his home state for driving and revitalizing rural America’s economy. In remarks during a meeting with Iowa biodiesel and farm industry representatives at the Soy Energy biodiesel production facility in Mason City, the USDA chief pointed to the green fuel as a demonstration of farmers bouncing back, according to this Iowa Biodiesel Board news release.

“This is the resilient face of agriculture we see here today,” Vilsack said, flanked by Soy Energy plant workers. “Biodiesel plants like this one are getting America back in the business of manufacturing. They are creating jobs and revitalizing the rural economy.”

“Iowa’s leadership in renewable energy production shows what we as a nation are capable of in building energy security and green jobs, and we’re equipped to do even more,” said Randy Olson, executive director of the Iowa Biodiesel Board.

Those meeting with Vilsack pressed for more gallons of biodiesel under the Renewable Fuel Standard-2 (RFS-2). The EPA wants to go from 1 billion gallons this year to 1.28 billion gallons in 2013, what the Iowa biodiesel industry sees as a modest increase from last year’s record nearly 1.1 billion gallons of production.

The Iowa Biodiesel Board points out that Soy Energy, LLC is a “multi-feedstock” plant, capable of producing biodiesel from many different fats and vegetable oils, including corn oil left over from ethanol production.

Soy-based biodiesel will once again be part of the National Tractor Pullers Association (NTPA) season this year, thanks to the sponsorship of the United Soybean Board (USB) and the soybean checkoff.

As part of a larger strategy to promote soy biodiesel’s benefits among diesel users, the checkoff will once again co-sponsor the NTPA season of approximately 80 tractor pulls across the United States. The checkoff partners with the NTPA to increase biodiesel availability and use among pulling fans, many of whom work in the agricultural and trucking sectors.

“Pulling tractors perform so well on biodiesel, it’s a perfect way to show farmers biodiesel’s benefits,” says USB Communications Chair Jimmy Sneed, a soybean farmer from Hernando, Miss. “It’s important to remind farmers that using soybean oil for biodiesel is one of the components that determines the value of each bushel we grow. It makes sense for soybean farmers to use their own products and promote biodiesel.”

Under the co-sponsorship, tractors in the NTPA’s Light Pro Stock division will run on biodiesel. So these pullers will put biodiesel to the test all season long. Check the NTPA schedule for Light Pro Stock “Powered by Biodiesel” event dates and locations.