Wednesday June 6 Ag News

NCGA, Interns Both Benefit from Nebraska Program

With the generous support of the Nebraska Corn Board, two college students from the Cornhusker State are joining the National Corn Growers Association as interns this summer to learn more about the industry and provide valuable support to NCGA.

NCGA's headquarters office in suburban St. Louis is hosting Sandra Kavan of Wahoo, Neb., as its first summer intern supported by a partnership between NCB and NCGA. Kavan will be a senior in agribusiness at the University of Nebraska - Lincoln, and is assisting NCGA with membership and communication programs, as well as participating in committee meetings. She started with NCGA on May 14.

Starting this week, the NCGA Washington office is hosting David Bresel of Lincoln, Neb., as its summer intern. Bresel is a student in at the University of Nebraska College of Law, and will be involved with a variety of issues related to environmental regulations, transportation, free trade agreements, biotechnology, ethanol and energy.

"Nebraska has generously provided interns for our Washington office for some time, and we're happy to have one in St. Louis also this year," said NCGA Chief Executive Officer Rick Tolman. "We have always appreciated the intelligence, professionalism and dedication of these young men and women, and we are grateful to see this program expanded. These students get valuable experience in the field, and we benefit greatly from their time and perspective."



IFB Webinar to Discuss Energy, Fertilizer Issues

Energy costs are on the minds of most Americans as they watch the pumps while filling their gas tanks this summer. But, farmers are also worried about how rising energy costs, from fuel to fertilizer, can impact their businesses. On June 20, at 1 p.m., the Iowa Farm Bureau's Margin Management Webinar Series will offer a session discussing the implications of energy prices and ethanol margins for Iowa farmers.

The webinar will feature Matt Erickson, an economist with the American Farm Bureau Federation. Erickson specializes in the energy/fuel markets, as well as farm diesel and fertilizer price trends.

"The webinar will discuss a variety of energy-related issues, including the current crude oil and natural gas markets, price forecast, trends, inventories and energy consumption," said Ed Kordick, commodity services manager with the Iowa Farm Bureau Federation. "These factors definitely have an impact on a farm's profitability."

Participants can access the free webinar at www.iowafarmbureau.com and look for the link on the main rotating banner. Registration is encouraged. To register, please contact Kordick at ekordick@ifbf.org. While the webinar is open to the public, the program will be archived, with access limited to Farm Bureau members only.



Survey Shows Few Sows In Open Housing

Results of a survey issued today at the World Pork Expo, the annual trade show of the National Pork Producers Council, show that the overwhelming majority of the U.S. sow herd spends some time in individual housing, known as gestation stalls. The findings confirm NPPC’s concerns about recent pronouncements by food companies that they will use only pork from operations that are gestation-stall free.

The survey, conducted by University of Missouri extension economist Ron Plain, found that currently only 17.3 percent of sows spend a portion of gestation in open pens. Plain surveyed pork operations with 1,000 or more sows. He received responses from 70 operations, which combined own about 3.6 million of the nation’s 5.7 million sows.

“Today’s survey shows that these food companies obviously haven’t thought through the complexities, logistics or implications of their requests,” said NPPC President R.C. Hunt, a pork producer from Wilson, N.C. “Simply making an announcement without understanding the entire supply chain’s ability to meet these requests or the challenges involved is utterly befuddling. We feel it is important to have this first-hand information available to our customers.”

The Plain survey found that 20.2 percent of sows on operations of 1,000-9,999 sows, 18.9 percent on operations of 10,000-99,999 and 16.4 percent on operations of more than 100,000 are in open pens for some portion of gestation. When asked about plans to put more sows in open pens, the largest operations indicated that 23.8 percent of their sows would be in them in two years, operations of 10,000-99,999 sows would have 21.3 of their pigs in such pens and operations of 1,000-9,999 would have 20.7 percent.

But it is important to note, said NPPC, that an operation may use both individual and open pen, or group, housing and that sows on some operations may spend time in both systems.

“Given that few sows always are in open housing and that producers may use both individual and group housing, it would be extremely difficult and costly for the pork supply chain to sort, segregate and trace product to meet the requirements of these food companies,” Hunt said. “Regardless, this issue is about giving animals the best care possible, and hog farmers like me know through years of experience that individual housing provides that best care.”



NCGA Applauds Senate Movement on Farm Bill

National Corn Growers Association President Garry Niemeyer released the following statement in response to Senate Majority Leader Harry Reid filing for cloture on the 2012 farm bill:

"The National Corn Growers Association appreciates the actions taken today by Senate Majority Leader Harry Reid to move forward with Senate consideration of the 2012 farm bill this week.  We support this action and look forward to working with members of the Senate to pass this important legislation and urge action before the July 4th congressional recess."



ASA Calls on Lucas, Peterson to Include FFAR in House Farm Bill

In a letter to House Agriculture Committee Chairman Frank Lucas (R-Okla.) and Ranking Member Collin Peterson (D-Minn.) this week, the American Soybean Association (ASA) joined counterparts from across the agriculture industry in urging the House Agriculture Committee to include a provision establishing a Foundation for Food and Agriculture Research (FFAR) in its version of the upcoming farm bill. ASA and its partner groups are urging the House Agriculture Committee to take action comparable to the FFAR provision included in the Senate Agriculture Committee’s recently-approved Agriculture Reform, Food and Jobs Act of 2012.

“An FFAR would complement and add to USDA’s portfolio of intramural and extramural research programs that help solve current and future challenges facing agriculture, develop new opportunities for American agriculture, and bring innovative technology from laboratory to marketplace,” wrote the more than 70 groups in the letter. “With an ever expanding global population and increasing demands for food and other agricultural products, increased investments in food and agricultural research are essential to maintaining our nation’s food, economic and national security.”

“Agricultural research holds innumerable benefits for the soybean industry, and our farmers depend on a robust research framework to continue the stream of innovative products and processes that enable the industry to be as productive as it can be,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb.

The groups noted that research is currently only a small portion of USDA’s budget, and that an FFAR would generate outside funding sources through the development of public-private partnerships. “Despite the importance of such research, current funding for food and agricultural research is less than 2.5 percent of USDA’s budget,” wrote the groups. “Establishing an FFAR will generate new sources of funding for food and agricultural research.  It will provide a structure for new public/private partnerships and investments that will further USDA’s research mission.”

As written in the Senate version of the farm bill, the FFAR would supplement the research efforts of USDA by accepting tax-deductible donations to fund agricultural research. Through the FFAR, those donations would be matched by $100 million in Commodity Credit Corporation (CCC) funds, which would then be used to support grants for collaborative public/private partnerships with scientists and entities including USDA, academia, non-profits, and the private sector. 



Export Success Fuels USMEF Partnership with FAS

The time-tested relationship between the United States’ Foreign Agricultural Service (FAS) and the U.S. Meat Export Federation (USMEF) has been built on collaboration in a shared mission of expanding agriculture exports, and the “bright spot” that FAS sees in the form of increased red meat exports and jobs creation is an important measurement of success, according to FAS Administrator Suzanne Heinen.

“FAS and USMEF have a strong partnership, and a partnership that works,” said Heinen in her address to USMEF’s membership recently at the organization’s Board of Directors meeting in New Orleans. “Our success is measured by the level of growth of exports and the barriers (to trade) eliminated.”

Heinen noted that a 65 percent increase in red meat exports over the past five years is not only an excellent return on investment for the USDA’s Market Access Program (MAP) and Foreign Market Development (FMD) program funds provided through FAS to USMEF, but a “positive sign for the grain industry as well, since what we export in meat is just grain turned into another product. It’s good for the American economy since we’re adding value and holding jobs here at home.”

Beyond USMEF’s role in the marketing and promotion of U.S. beef, pork and lamb, Heinen noted that USMEF and the other cooperators in the MAP and FMD programs provide valuable on-the-ground intelligence in markets around the world.

“We really rely on USMEF for policy guidance on a daily basis,” Heinen said. “We need critical thinking when we negotiate with these governments…we need the expertise of you in the industry.”

The FAS administrator cited the recent global reaction - an overall positive one - to the April finding of the United States’ fourth BSE (bovine spongiform encephalopathy) case – an “atypical” case that is unrelated to the consumption of cattle feed.

“A great example of our (FAS and USMEF’s) partnership at work is the fact that only two markets of nearly 100 where we export have taken action (to restrict U.S. beef imports),” said Heinen. “That measured response is a direct result of our joint efforts to provide education and reassure our trading partners that U.S. beef is safe.”

She also cited USMEF’s work with FAS to provide information to the international Codex Alimentarius Commission to get scientific support for maximum residue levels (MRLs) for safe and effective agriculture enhancing products that support efficient and sustainable growth of U.S. agricultural products.

In tight economic times where all government-funded programs are being scrutinized for their economic impact, Heinen noted that USMEF’s track record of providing a rationale for its program activities, documenting them and evaluating them gives “us the results we can take to Congress to prove to them that the money they give us is moving the needle on exports and moving the needle on jobs.”

"When you get into overseas markets, beef is not competing against pork or pork against chicken,” she said. “We’re competing against Brazil, the EU and other countries.”

Heinen noted that USDA’s market development programs have a long history of helping farmers, ranchers, and businesses of all sizes build and maintain commercial markets for U.S. food and agricultural products around the world, and that those programs “show results,” adding that independent studies have documented the return on investment for MAP and FMD. Those studies show that for every dollar that government and industry invest in market development programs and activities, agricultural exports increase by $35.



Corn Experts Focus on Technology for Utilization

At the 2012 Corn Utilization and Technology Conference, which began Monday evening in Indianapolis, researchers from around the country are talking about the versatility of corn and the importance of technology to make the most of our country's No. 1 commodity crop.

"There's a tremendous opportunity to hear about some of the new technology coming on board," said National Corn Growers Association President Garry Niemeyer. "Innovation and technology have led us from a culture of scarcity to one of abundance. We need to share that with the world, and to do that, we need research."

Kicking off the event with a keynote address was Dr. Michael Ladisch, director of the Laboratory of Renewable Resources Engineering and Distinguished Professor of Agricultural and Biological Engineering at Purdue University, where he and his colleagues address topics in bioprocess engineering as they apply to bioenergy, bioproducts, biorecovery and bionanotechnology. Ladisch has authored 150 journal and proceedings papers and has issued and applied for 14 patents.

Ladisch said some of the most exciting things happening in research right now are advances in cellulose conversion and understanding how enzymes and micro-organisms are able to convert things like corn stalks to things like ethanol and sugars. "What we're now doing is applying this to corn. As a consequence it will make corn processing more efficient but also open up avenues for making new products, high value products, from the corn kernel."

Tuesday's sessions looked at enzymatic technology, advanced biofuels, aflatoxin biological control, biorefineries, new uses for starch, new processing technology, aflatoxin genetics, corn genetics, new products from dry grind and aflatoxin cultural controls. On Wednesday, participants will dive into biopolymers, water usage, aflatoxin mitigation, government regulations, new uses, mycotoxin research and more.

The 2012 Corn Utilization and Technology Conference concludes Wednesday afternoon. 



On-the-Farm Conservation Stories Wanted

U.S. soybean farmers are invited to tell the story of conservation on their farms by entering the 2012-2013 Conservation Legacy Awards. Winning entries will help tell the story to the public about how soybean farmers are committed to protecting the soil, water and air through outstanding environmental and conservation practices while continuing to farm profitably.

The 2012-2013 Conservation Legacy Awards program is sponsored by the American Soybean Association (ASA), BASF, Monsanto, United Soybean Board and Corn & Soybean Digest magazine.

Conservation Legacy Award winners from three regions (Midwest, Northeast and South) will each receive an expense-paid trip for two to the 2013 Commodity Classic convention and trade show, Feb. 28–March 2 in Kissimmee, Fla. Regional winners will also be showcased in video features focusing on their winning conservation practices. In addition, the regional winners will be featured in a special insert in Corn & Soybean Digest magazine.

One National Conservation Legacy Award winner will be chosen from the three regional winners and announced at the ASA Awards Banquet held during Commodity Classic.

All U.S. soybean farmers are eligible to enter. Applications must be submitted online by Aug. 6. Applications will be judged in five areas: soil management, water management, input management, farmstead protection, and conservation and environmental management.

To learn more about the Conservation Legacy Awards program and to access the online application visit www.soygrowers.com/clap.



Japanese Consumers A-Twitter Over U.S. Beef

While Americans are being cautioned not to text while they drive, or even while they walk, Japanese diners are being encouraged to “Tweet While You Eat” to share their excitement about U.S. beef.

Japanese consumers are accustomed to following bloggers and visiting mobile websites to learn more about U.S. beef, but Twitter is a relative newcomer to Japan. As the number of Twitter fans in Japan recently topped 15 million, USMEF launched a multi-phase Twitter campaign to engage and motivate consumers to digitally share their interest in U.S. beef and win tasty prizes. Funding for the campaign is provided through the USDA Market Access Program (MAP) and the Beef Checkoff Program.

The first initiative is the selection of four American Beef Ambassadors from the nearly 5,000 Twitter followers USMEF-Japan has amassed. Over the next six months, these individuals will promote themselves as American Beef Ambassadors, utilizing the “#usbeef” hashtag at the end of each tweet. This hashtag will make their tweets searchable to other fans as they write about home cooking or restaurant dining experiences with U.S. beef.

“As Twitter gains new followers by the day in Japan, we are confident that this campaign will significantly expand the visibility of U.S. beef among a critical audience – the young adults who have built this technology into their daily lifestyles,” said Tazuko Hijikata USMEF-Japan senior manager of consumer affairs.

“Beef Now”
In the Japanese Twitter culture, “now” is the operative word. Many tweets end with “now” to create the sense of timeliness and urgency. USMEF is riding this wave with its “American Beef Now” initiative designed to demonstrate the popularity of U.S. beef among Twitter users. Consumers will tweet “American Beef Now” and the location of the restaurant where they are dining on U.S. beef, helping to drive other consumers to these destinations.

Based on their number of followers and influence displayed, USMEF-Japan will periodically select tweeters to receive one kilogram (2.2 pounds) of American beef as a prize.

To support the campaign, USMEF-Japan is running a list of restaurants that serve U.S. beef on its website to serve as a resource for interested tweeters.

“‘American Beef Now’ will encourage diners to try U.S. beef,” said Hijikata. “And when their friends read the tweets, they will see that someone they trust is enjoying and publicly announcing that they are eating it, which supports both the image of U.S. beef and the restaurant offering it on its menu.”

“American Beef Go! Go!” Campaign
USMEF is not putting all of its new media eggs in the Twitter basket. To help drive traffic to its website, USMEF-Japan recently conducted the “American Beef Go! Go!” campaign to provide education about U.S. beef in an entertaining format. More than 10,000 consumers participated in the campaign.

Visitors to the USMEF website can acquire basic knowledge about American beef and earn “stamps” as they demonstrate knowledge about the safety, flavor and other positive attributes of the product. Participants will be eligible for prize drawings including one kilogram packages of U.S. beef and popular cooking utensils.

Through the first three months of 2012, U.S. beef exports to Japan were up 10 percent in value ($194 million) compared to 2011, while volume dipped 7 percent to 29,695 metric tons (65.5 million pounds).



Informa Raises Forecasts for US Winter Wheat Output

Private analytical firm Informa Economics on Wednesday raised its forecast for the U.S. winter wheat harvests amid faster-than-normal crop development and well-above-average government condition ratings.  Informa pegged the U.S. winter wheat harvest at 1.676 billion bushels, up 1.2% from its May forecast, but down 1.1% from the U.S. Department of Agriculture's latest forecast, traders said.

Production of hard red winter wheat was projected at 1.014 billion bushels, up 1.3% from the firm's May forecasts, but down from 18 million bushels from USDA's May estimate. Production of soft red winter wheat was seen at 426 million bushels, up 1.2% from the firm's prior estimate, but down three million from USDA's May forecast.

The government is slated to update its production forecasts next week.

SOUTH AMERICAN CROPS
Informa forecast Brazil's 2011/12 soybean production at 66.4 million tons, above USDA's latest estimate of 65 million.  The firm pegged Brazil's corn crop at 67.5 million metric tons, above USDA's May estimate of 67 million.

For Argentina, Informa estimated 2011-12 soybean production at 40 million metric tons, below USDA's May estimate of 42.5 million. Informa estimated the Argentine corn crop at 20 million tons, below the USDA's latest forecast of 21.5 million.



Brazil Likely to Have Short Soybean Supplies for Export After July

Brazil could soon run out of soybeans to export this year after producers frontloaded their shipments more than normal to cash in on high international prices and a favorable exchange rate.

The world's No. 2 supplier of the oilseed shipped out 18.53 million metric tons of soybeans in January to May, up 37% from a year earlier and a record for the period, preliminary data from Brazil's trade ministry show. The increase came even as a drought in southern regions of the country reduced the size of the 2012 crop by about 12% from last year to 66.37 million tons, according to government crop agency Conab.

Because the Southern Hemisphere's planting schedule is opposite that of the U.S., the top soybean producer and exporter, Brazilian farmers usually get most of their exports to the market by midyear. The strategy allows farmers to earn a premium on the product ahead of the U.S. harvest and to avoid storing it for long periods at high local interest rates.

A combination of factors has exaggerated that tendency in 2012. The weak crop in key South American exporters and robust demand from China squeezed the international soybean market, which broke a trend from other, slumping commodities to hit a four-year high in early May.

Meanwhile, Brazilian authorities, facing a second straight year of subpar economic growth, undertook a series of measures in the first quarter to weaken the local currency in a bid to help manufacturers and exporters. The real's losses steepened in April when the European debt crisis deteriorated, and the currency set a three-year low against the dollar in May, making soybean exports even more lucrative.

"Brazil at this moment has taken advantage of the market conditions and will need to adjust over the rest of the year," said Fabio Trigueirinho, president of soy-industry association Abiove. "This will be reflected across the industry, which will export less soymeal and less soyoil, will crush less and will mainly export less raw product."

Leonardo Menezes, a soy analyst at local consultancy Celeres, said Brazil probably doesn't have more than 12 million to 13 million tons of soybeans available for export over the remainder of this year. Most of the volume should be concentrated in June and July, after which it will dry up quickly, he said.



June is Dairy Month, and Producers are Challenged

June is the month that celebrates dairy production, dairy farmers, and dairy products, said Michael Hutjens, a University of Illinois professor emeritus of animal sciences.  "The dairy industry is big business in the United States with farm cash receipts totaling 31.4 billion dollars in 2010. This represented 10.2 percent of all farm cash receipts," he said.  But June is not kind to U.S. dairy managers as milk prices have dropped 20 percent, and feed prices remain high, leading to a loss of $1 to $3 per 100 pounds of milk produced, depending on the region of the U.S., herd size, and level of milk production, he said.

"Milk prices have dropped as world milk prices have declined due to economic downturns in such European countries as France, Italy, Greece, and Portugal, high milk production in New Zealand with abundant rain producing high levels of pasture, and milk production up in the United States as dairy farms recover from a disastrous 2009 and 2010. A mild winter in 2012 also allowed cows to respond with more milk," Hutjens said.

Feed prices are high because soybean prices, used to produce soybean meal for dairy cattle, have increased as China increased purchases and dry weather in Argentina reduced yield, drought conditions in Texas and Oklahoma raised hay and forage prices in 2011, and corn prices remain high as 40 percent of U.S. corn is used for ethanol production, he added.

"Solutions for dairy managers to remain profitable include higher milk yield per cow (lowest the cost per 100 pounds of milk due to improved feed efficiency, high milk fat and milk protein content in milk (increases the milk price received), high-quality milk production (milk processors pay a bonus for quality milk), and the use of by-product feeds such as corn distillers' grain and corn gluten feed, which reduces feed costs," he said.

The U.S. efficiency story is impressive with milk yield per cow continuing to increase to 21,345 pounds per cow. That's nearly 85,000 glasses of milk annually. The U.S. record high-producing cow produced over 72,000 of milk in one year.

In 2011, 51,481 dairy farms produced 196.2 billion pounds of milk with an average herd size of 179 cows. California continues to be the number one dairy state with 1.77 million cows producing 41.5 billion pounds of milk. New Mexico has the highest herd size with 2,350 cows per herd, he said.

"Milk prices are predicted to improve in the fall of 2012, but that depends on the summer growing season, which affects feed yields and costs, along with high cull cow prices that encourage removal of cows from the milking herd. Dairy managers need either lower feed prices and/or higher milk prices to return to profitable levels," he said.



Weekly Ethanol Production for 6/1/2012

Domestic ethanol inventories were drawn down 320,000 barrels (bbl), or 1.5%, to 21.188 million bbl during the week-ended June 1, falling after two straight weeks of stock builds, according to fresh data from the Energy Information Administration released Wednesday morning.

Despite the drawdown, total ethanol supply now stands at 7.9% above the level seen a year ago.

Meantime, ethanol production from domestic plants inched up last week after falling for the prior week. Production rose 2,000 barrels per day (bpd) to 904,000 bpd last week while down 1.2% from a year-ago level.

Implied demand, as measured by refiner and blender net inputs, tumbled 41,000, or 4.8%, to 816,000 bpd for the week-ended June 1 from the prior week while down 4.8% from a year ago level.

Elsewhere, the EIA reported that implied demand for motor gasoline fell last week after rising in the prior week, down 283,000 bpd to 8.648 million bpd for the week-ended June 1. Four-week average gasoline demand at just under 8.8 million bpd was down 4.0% from the level seen a year ago.

On the co-products side, ethanol producers were using 13.707 million bushels of corn to produce ethanol and 101,744 metric tons of livestock feed, 91,794 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.16 million pounds of corn oil daily.



NASCAR Truck Series to Include American Ethanol 225

The National Corn Growers Association hopes that members and ethanol agvocates alike will join in the festivities as the Illinois Corn Marketing Board partners with Growth Energy to promote awareness of American Ethanol at the newly announced American Ethanol 225.  This race, which will be held at the Chicagoland Speedway on Saturday, July 21, is part of the 2012 NASCAR Camping World Truck Series and represents the return of summer night racing to the track.

"NASCAR has become an important way in which our state and national corn organizations reach out to consumers with tangible proof of ethanol's performance and viability," said NCGA NASCAR Advisory Council Chair Martin Barbre, an Illinois corn grower.  "It is exciting to see Illinois, and many other states, working to reinforce the message that the best drivers using the best machinery in some of the most competitive races in the world trust their engines, and in a way their safety, to E15.  I know, personally, that if it works in a NASCAR, it can work for my car too."

The race, which will highlight the American Ethanol partnership, builds upon efforts launched last season to promote ethanol through NASCAR.  Representing a wide array of ethanol supporters, from farmers to bio-engineering firms, American Ethanol was established by NCGA, in partnership with GE and others.

Illinois Corn farmers and American Ethanol will also join forces in sponsoring driver and fan favorite Kenny Wallace in the No. 99 Family Farmer car that races in the July 22 Nationwide Series race, which also will feature a large exhibit area for fans.

In 2011, the Daytona 500 race brought a major change for NASCAR who, through the NASCAR Green initiative, switched to fueling every car or truck in every race with Sunoco Green E15, which includes 15 percent ethanol.

With more than two million miles already run on NASCAR tracks around the country using E15, the performance of ethanol has raced into the spotlight while American Ethanol and NASCAR have worked together to also highlight the environmental benefits of ethanol.  The groups understand this is important as ethanol represents the most commercially-viable alternative to 100 percent petroleum-based fuel that America currently holds, and corn ethanol reduces emissions by 59 percent.

"As we kick off our 2012 race season this July we are thrilled to welcome an entitlement partner as involved in the sport as American Ethanol," said Scott Paddock, president of Chicagoland Speedway. "Their proactive commitment to reducing emissions has been a vital aspect of NASCAR's Green Clean Air initiative, and American Ethanol has proven to be a tremendous partner not only for Chicagoland Speedway, but for NASCAR's teams, fans and the industry as a whole."

In Illinois, the buzz surrounding the race has already begun to build.  Join in the excitement and help amplify the message that America's family farmers have the ability to help reduce our dependence on foreign fuels while improving our environment and economy.

"We can't wait to spend some time getting to know more racing fans at the American Ethanol 225," said Bill Christ, a family farmer from Metamora, Ill., who is chairman of the Illinois Corn Marketing Board. "Illinois family farmers had a ball interacting with the racing community in our exhibits in the Speedway's Champions Park display area last year, and we plan to do the same this year. Fans and drivers alike have committed to supporting the farmers that grow the corn to make ethanol, and we're glad to return the favor with this elevated partnership."



"Wolves are at the door" of US ethanol industry

Addressing a gathering of thousands of leading ethanol industry pioneers at the Fuel Ethanol Workshop (FEW) yesterday, Renewable Fuels Association (RFA) President and CEO Bob Dinneen made clear those “that are quite comfortable with our use of oil and want to see cheap corn” are mounting a full assault on the policies that have helped make ethanol 10 percent of the nation’s fuel supply, specifically focusing on the Renewable Fuel Standard (RFS) and the march toward E15 ethanol blends.

“The RFS is under attack in Washington, DC, today,” Dinneen said in an interview with DomesticFuel.com.  “I don’t see for a moment that it will be unraveled this year.  They will continue to next year and they will continue to fight in the courts.  I think it’s really important for the industry to know that the wolves are at the door.”

Dinneen was referring to the reported efforts of Senator Jim Inhofe (R-OK) and Senator Christopher Coons (D-DE) to “reform” the RFS.  Speaking to the National Journal on this issue, Sen. Inhofe made his intentions clear stating, “’I’ve had problems with ethanol for as long as I can remember, and I’m going to be doing what I can to relieve that and do away with the mandate, actually.’”

In his keynote remarks, Dinneen noted that he was confident that ethanol could stand up to the scrutiny provided that oil and other fuels were given equal and honest examination as well.  “If you are going to do a ‘seed-to-wheels’ analysis of ethanol, that is fair enough.  How about the war-to-wheels analysis of oil?  We need to put this debate back into perspective.”

The Senate effort led by Sens. Inhofe and Coons is occurring at the same time a familiar group of industry lobbies are preparing a multi-million dollar, multi-year campaign to eliminate the RFS.  This group is reportedly to include industry lobbies like the American Petroleum Institute, Grocery Manufacturers Association, and National Chicken Council along with environmental activists like Friends of the Earth.

Many will remember the effort by GMA from 2008 led by the public relations agency the Glover Park Group.  In its response to GMA’s Request for Proposals, GPG stated that the two most important objectives were:
-    First, we must obliterate whatever intellectual justification might still exist for corn-based ethanol among policy elites.
-    Second, we must demonstrate to policy makers at the state and federal level that there is a political price to allowing ethanol policy to drive up the cost of food.

Dinneen preemptively struck back at the likely tactics of this latest campaign, stating “We will not be misled, nor will we allow the American people to be misled by their misinformation.  We are going to come together, we are going to defend the RFS [renewable fuel standard], we are going to ensure that this industry continues to grow and evolve because of the innovation that you will show at the plant and because of the passion that we will bring to Washington, D.C., to remind them of the importance of this industry, the importance of the RFS and the importance of the continued evolution of this industry.”

Dinneen, addressing the ongoing effort by the petroleum industry to prevent any expansion in the market for ethanol, noted that the oil industry will do everything possible to stop E15 from becoming a reality. “It’s going to be up to all of us to explain to people how E15 can’t hurt your radiator and how one fill up can’t hurt your fuel pump. Brace yourselves. It will be brutal. We are going to have to be vigilant for when this occurs.”



USDA to Interview Farmers and Ranchers for Core Seasonal Surveys

USDA’s National Agricultural Statistics Service (NASS) is currently contacting farmers and ranchers across the country to gather information for some of its most important surveys of the year. During the first two weeks of June, NASS is gathering information about U.S. crops and livestock through three simultaneous surveys focusing on agricultural acreage, crops produced and stored, and hog inventory.

“The comprehensive crop, livestock, and economic data collected benefit farmers and others in the agricultural industry,” said Bob Bass, Director of NASS’s National Operations Center. “The information contributes to a stable economic climate; creates an accurate, up-to-date picture of U.S. agriculture; helps producers make marketing decisions; and reduces risk. Because it is equally available to producers, agri-businesses, commodities markets, researchers, and other interested parties, it creates a more level playing field.”

Trained NASS enumerators will personally interview producers to collect information about the 42,000 tracts of farmland they operate. In addition, tens of thousands of respondents have already received surveys in the mail and can fill out the questionnaire using NASS’s easy and secure online system or mail it back. NASS representatives will also contact farmers and ranchers who have not yet responded to the survey to help them provide responses over the telephone.

 “While we recognize that this is a busy time for the producers, we hope all farmers and ranchers recognize the value of the information to their businesses, communities and industries that they will take the time to respond to these surveys,” added Bass. “By responding to enumerators and participating in the survey, farm and ranch operators can help ensure the data are complete and accurate.”

As with all NASS surveys, the information collected in the June surveys is kept strictly confidential, as required by federal law. NASS will not publish any individual’s information. Survey results are available in aggregate form only. For more information about these surveys, visit www.nass.usda.gov/Surveys.



Vilsack Announces Proposed Designation of Twelve New Biobased Product Categories

Agriculture Secretary Tom Vilsack today announced the proposed addition of 12 biobased product categories to become eligible for Federal procurement preference. Once the proposed rule is finalized, more than 2,300 additional biobased products will be offered for preferred purchasing consideration by all Federal government agencies and contractors. Today's proposed rule is published in the Federal Register.

"President Obama has directed the federal government to take decisive steps to dramatically increase the purchase of biobased products over the next two years, which will create jobs and drive innovation where biobased products are grown and manufactured," said Vilsack. "With these 12 additional categories, more than 2,300 biobased products will be available for government procurement and USDA will have increased the number of designated categories by 39 percent overall since the issuance of the President's memorandum. When procuring agencies buy biobased products they are helping their organizations increase energy security and independence, spur economic development, and improve our environment."

Today's proposed rule designates the following biobased products for preferred Federal procurement:
-    agricultural spray adjuvants
-    animal cleaning products
-    deodorants
-    dethatcher products
-    fuel conditioners
-    leather, vinyl, and rubber care products
-    lotions and moisturizers
-    shaving Products
-    specialty precision cleaners and solvents
-    sun care products
-    wastewater systems coatings
-    water clarifying agents

The proposed rule will be out for public comment for 60 days and can be read at http://www.gpo.gov/fdsys/pkg/FR-2012-06-05/pdf/2012-13340.pdf. Comments will be considered and incorporated, and a final rule will be publicized shortly thereafter.

Biobased products are composed wholly or significantly of biological ingredients – renewable plant, animal, marine or forestry materials. A BioPreferred designated item is one that meets or exceeds USDA-established minimum biobased content requirements.

BioPreferred is comprised of a preferred procurement program for Federal agencies and a voluntary labeling program for the broad scale marketing of biobased products (under development). Please contact biopreferred@usda.gov for more information about the Round 9 final rule or the BioPreferred program.

A complete list and detailed description of each BioPreferred designated item, and items for future designation, can be found at www.biopreferred.gov. 



American Corn
Sally Jane Herrin, Ph.D., American Corn Growers Institute for Public Policy

Over the past couple decades, a gradual smear campaign has developed regarding one of the oldest and most generous friends and benefactors to the human race. I am positively staggered. I grew up crouching under a flimsy grade school desk for nuclear attack drills, sirens barking off the wall like dogs of war, so I frankly in my lifetime expect the worst.

But I was not prepared to live to see the demon propaganda turned against…wait for it…corn? I don't recall which came first, the flap over corn-based sweetener or the insinuation that somehow more energy was expended growing corn than could be available from any ethanol produced.  The last is false, according to my scientist friend from Oak Ridge National Labs.

The matter of high-fructose sweeteners (from any source) is easily managed. In this country we get to vote with our food dollars. Don't like high fructose products? Don't buy them. If it costs you more, then you'll have to do your own math. Corn farmers, and corn itself, must be held harmless. This one lies entirely at the processors' door.

The truth is that corn is so deeply vital to the society of the Americas, the long view might say the story of America is in many ways the story of corn.

Corn is a zea, a spiky grass native to Central America. With the intervention of human breeders, corn became the caloric foundation of great empires and thriving city-states from the Aztecs in Mexico to the Mississippi Valley mound cultures, which stretched through the southeastern US and even north into present day Canada. Large scale corn production created one of the first truly new things under the sun--a surplus. Surplus gave rise to trade. Sound familiar?

Corn production is a huge economic driver in the US agricultural, trade and energy economy. For more than a quarter century, only agricultural exports--enormously in corn--allowed the US to post a trade surplus and to promote globalization. Corn is a foundation of the Pan-American diet in breads, cereals and sweeteners, and in production of beef, pork and poultry. In truth, cornfed animal protein consumption is coming to virtually equate with upper mobility in rising Asia and around the world.

And for very good reason. Nothin' tastes better than corn. Are there picky eaters with souls so dead, they never to themselves have said, "Sweet corn? Pass me the butter!" Corn is the only major grain that in season in some varieties (like legumes, peas and beans) is also a glorious vegetable, and it is even eaten entire as baby corn. Corn is the only vegetable on which human beings are known to actually binge.The great native cuisines of the US and the Americas feature corn in all its delicious virtues, from cornmeal fritters and crusted fried fish, through grits and corn bread and cornmeal pancakes, chowders, corn casseroles, tortillas, tamales, enchiladas, Fritos, Cheetos and Doritos, corndogs, popcorn, corn nuts and crackerjack.

And of course there is the matter of the excellence of corn-finished beef--and pork and fowl. Argue all you like, there is no finer eating, most omnivores agree. Beyond kitchen, of course, has always been corn for the still. My people came through the Cumberland Gap in the deep long ago. Corn was their staple grain, and when the great disaster of the chestnut blight overtook the Eastern US, corn replaced the huge loss in the early 20th century of chestnut mast, a major food source for wildlife, humans and hogs. When Appalachian farmers couldn't get a price for the corn that they raised, they made whisky, the way their dads knew how from back in the old country--a better value and so much easier than a load of near worthless corn to carry down out of the hills.

Today, distillers use corn for ethanol to replace toxic MTBEs in the battle against smog. Ethanol--whether made from corn today or kelp tomorrow--is key to breaking our devil's deal with foreign oil. Every gallon of fuel we can grow at home is a barrel that doesn't get bought by volunteer blood from Phoenix or Detroit or Little Rock. And unlike fossil fuel, the growing corn absorbs carbon dioxide ethanol leaves behind.

A big part of the magic of corn, of course, corn shares with apples--the sugar. Michael Pollan is one of the best writers today on culture and agriculture. His early book, The Botany of Desire, explored relationships between humans and domesticated plants--apple, tulip, marijuana and potato. "He...links four fundamental human desires--sweetness, beauty, intoxication and control--with the plants that satisfy them." (www.michaelpollan.com) Pollan could as easily have used corn as apple, and the story would be equally compelling.

Corn satisfies three of Pollan's four fundamental human desires, and if you credit my culinary arguments, you might agree corn even satisfies the need for beauty, to our sense of taste. Or if you find beauty mostly in the visual sense, you could just look at the particular green that is new corn. It almost seems to produce its own light, as anyone who ever looked close can tell you. And it's April already--soon you can see for yourself.

Corn is sweet. Enough said. Corn produces a ready intoxicant, applying well-understood technology, which not incidentally applies also to the making of fuel. Corn is, and has been, and will foreseeably continue to be a high stakes venue for economic, political and environmental control. The sugar that moms worry about in their kids' popsicles is the chemical treasure that makes corn so very valuable. The futures traders figured it out, that calories are fuel, where corn is concerned. A century old adjustment in corn price has finally been made. God willing I'll never again see $2 corn, in actual dollars not adjusted for inflation, in 1998 the same as it was in 1918.

There is no such thing as a best grain. Nature, even in the hands of human breeders, doesn't operate that way. In the matter of growing anything, context is always everything. For example, growing corn can use a lot of water. So does rice. Both are shallow rooted grasses. Go figure. The domestication of corn has been a raging success for the human race, and the anti-corn message is a flea on the pelt of a buffalo.

When Europeans began arriving by the boatload in the late 15th century, corn had been worshipped as a god in our hemisphere for many many years. The actual worship of an individual grain is rare--there is an African rice god Bulul and a rice kami in Japan--but gods and goddesses of overarching fertility, planting and harvest are much more common. Corn, though, was an actual god to the Aztecs and Mississippi culture, and Zuni sacred artists still make fetishes to the maiden corn.

Europeans after Columbus famously hunted for cities of gold, which proved in time to be only dreams. Ironically, corn, the real gold of the Americas, was in the fields and garden patches growing everywhere.

Sally Jane Herrin, Ph.D., currently lives and works in Lincoln, Nebraska and is a board member of the American Corn Growers Institute for Public Policy.