Wednesday February 6 Ag News

2013 Beef Feedlot Roundtables at Three Locations in February

Beef feedlot managers, owners, employees and supporting industry personnel will learn the latest in feedlot health, nutrition, environment and economics at the 2013 Beef Feedlot Roundtables Feb. 19-21 in Gering, Holdrege and West Point, with remote connections to locations in Iowa.

The University of Nebraska-Lincoln Extension Roundtables will be offered Feb. 19 at the Gering Civic Center in Gering, Feb. 20 at the Phelps County Extension Building in Holdrege, and Feb. 21 at the Nielsen Community Center in West Point. Attendees should note that the western and central events are being held in different locations this year than in previous years.

Registration is from 7:45-8:15 a.m. local time, with introduction and welcome at 8:15 by local extension personnel.

University and industry representatives will speak on feedlot economics, animal health, nutrition and management which include a producer panel on adapting to the current environment, and a research update.

The Nebraska Beef Council will give an update on new beef products and sponsor lunch.

Feedlot economics and research topics include feeding options with more expensive inputs, issues related to formula pricing, animal welfare in the feedlot and current animal health issues. The program will conclude with a research update and adjourn by 3:30 p.m.

Preregistration is available by phone, fax, e-mail or mail, and requested by Feb. 14. Cost is $30 for those who preregister, and will be accepted at the door. Cost for those who have not preregistered will be $40. For more information or a registration form contact Matt Luebbe at the Panhandle Research and Extension Center, 4502 Ave. I, Scottsbluff, NE 69361, phone 308-632-1260, fax 308-632-1365 or e-mail mluebbe2@unl.edu.

A downloadable and printable brochure with registration form also can be accessed on the World Wide Web at panhandle.unl.edu.

The Beef Feedlot Roundtable is sponsored by UNL Extension, ISU Extension and the Nebraska Beef Council.

Morning topics will cover feedlot economics and environment with the following presentations: market outlook and key issues related to formula pricing, Jim Robb, Livestock Marketing Information Center; offsetting high priced grain, Galen Erickson, UNL Extension; cow confinement, Terry Klopfenstein and Karla Jenkins, UNL Extension; producer panel on adapting to the current environment, local producers and industry; and Beef Council update, Adam Wegner, Nebraska Beef Council.

Afternoon sessions will cover feedlot health and nutrition with the following presentations: animal welfare challenges facing the beef feedlot industry, Temple Grandin, Colorado State University; generic vs brand name parasite control, Dale Grotelueschen, Pfizer Animal Health; UNL feedlot research update, Matt Luebbe, UNL Extension.



Cornhusker Economics Outlook Meetings Coming Across Nebraska in Late February

The 8th annual Cornhusker Economics Outlook meeting series will focus on the ag outlook and management decisions for farmers and ranchers at eight locations across the state in late February. The annual meeting series is offered by University of Nebraska-Lincoln Extension and the Department of Agricultural Economics and is available free to participants with grant support from the Nebraska Corn Board and the generous sponsorship of Great Western Bank.

The outlook meetings are scheduled for a concise, fast-paced discussion of crop, livestock, and policy outlook:

Paul Burgener, Market Analyst and writer for Farm Futures Magazine and Farm Progress Companies, will provide the crop outlook for corn, soybean, and wheat producers. Paul writes his marketing columns from Scottsbluff and travels the country to share his marketing expertise. Making crop production and marketing decisions in 2013 will require balancing lingering drought concerns and production risks with market opportunities. Burgener’s insight will help pave the way for making sound production, marketing, and risk management decisions.

Kate Brooks, Extension Livestock Economist will provide outlook and analysis for the beef and pork producers. Kate is a new specialist at UNL with a Central Kansas background and experiences in Oklahoma and Texas before coming to UNL in January. Brooks will digest the emerging livestock market fundamentals of shrinking herds, meat supplies, and meat demand along with grain supplies and feed prices to assess producer profit potential and sound marketing and production decisions in 2013.

Brad Lubben, UNL Extension Policy Specialist will provide perspectives on the policy environment in Washington and the implications for ag policy and the farm bill. With seemingly ever-growing fiscal challenges in Washington, the road ahead could be even more challenging to get the farm bill done again before the current extension expires in September. In the meantime, producers will need to recall the existing safety net programs of ACRE and DCP for 2013 program participation decisions. Lubben will discuss the policy outlook and program alternatives to help producers effectively combine farm programs, crop insurance, and marketing strategies for success.

This outlook agenda is packaged into a 2 ½ hour format to provide producers the best available information and send them home to ready to make 2013 management and marketing decisions. The series runs from February 25 through February 28 and varies in time by location. Review the following list for exact locations, dates, and times. Contact the local Extension office and educator to register for the meetings. Although there is no cost to participants, pre-registration is encouraged to plan for facilities, refreshments, and materials.

Falls City: Mon., Feb. 25, 9:00 AM - 11:30 AM CST
Konstantino's Pizza
117 E 17th Street
Contact: Lindsay Chichester, Richardson County Ext.
Office: 402-245-4324, E-mail: lindsay.chichester@unl.edu

Geneva: Mon., Feb. 25, 2:30 - 5:00 PM CST
Fillmore County Fairgrounds
5th and K Streets
Contact: Brandy VanDeWalle, Fillmore County Extension
Office: 402-759-3712, E-mail: brandy.vandewalle@unl.edu

Kearney: Tues., Feb. 26, 9:00 - 11:30 AM CST
Buffalo County Extension Office
1400 E. 34th Street
Contact: Brent Plugge, Buffalo County Extension
Office: 308-236-1235, E-mail: brent.plugge@unl.edu

Curtis: Tues., Feb. 26, 6:30 - 9:00 PM CST
Ag Industry Education Center
Nebraska College of Technical Agriculture
Contact: Barb Scharf, Frontier County Extension
Office: 308-367-4424, E-mail: barbara.scharf@unl.edu

Scottsbluff: Wed., Feb. 27, 9:00 - 11:30 AM MST
Panhandle Research and Extension Center
4502 Avenue I
Contact: Tom Holman, Scotts Bluff County Extension
Office: 308-632-1480, E-mail: tholman1@unl.edu

Whitman: Wed., Feb. 27, 3:00 - 5:30 PM MST
Gudmundsen Sandhills Laboratory
45089 Gudmundsen Road
Contact: Bethany Johnston, Central Sandhills Extension
Office: 308-645-2267, E-mail: bjohnston3@unl.edu

Norfolk: Thurs., Feb. 28, 9:00 - 11:30 AM CST
Lifelong Learning Center
601 East Benjamin Avenue
Contact: Tim Lemmons, Northeast Res. & Ext. Center
Office: 402-370-4061, tlemmons2@unl.edu

Lincoln: Thurs., Feb. 28, 6:30 - 9:00 PM CST
University of Nebraska East Campus Union
Campus visitor parking available at 37th and Fair Streets
Contact: Brad Lubben, UNL Agricultural Economics
Office: 402-472-2235, blubben2@unl.edu

More information and details on the meetings are available on the web at the Department of Agricultural Economics homepage at http://agecon.unl.edu or directly at the webpage with meeting information at http://agecon.unl.edu/ceo. Register by contacting the local Extension office listed for each location. You can also contact Lubben at 402-472-2235 or any one of the Extension Educators listed with the meeting locations for additional information.



Rural Group Voices Opposition to Tax Plan

Today, the Center for Rural Affairs provided testimony to the Revenue Committee of the Nebraska Legislature in opposition to LB 405 - a proposal to eliminate the state income tax and shift revenue burdens to additional sales taxes.

“LB 405 is harmful to rural Nebraska. It is estimated LB 405 will cause 80 percent of Nebraskans to pay higher taxes, especially those earning incomes less than $60,000 annually,” said Jon Bailey, Director of Rural Research and Analysis at the Center for Rural Affairs. “With average incomes significantly lower in rural Nebraska, many of those paying higher taxes as a result of LB 405 will be residents of rural Nebraska.”

According to Bailey’s testimony, LB 405 will also directly hit the pocketbooks of Nebraska’s farmers and ranchers, who would pay taxes on seed, machinery, chemicals, water for irrigation and energy – items that have been exempt from sales tax for decades. From Nebraska Department of Revenue data, placing a sales tax on those items would result in nearly $300 million taken in increased taxes from our agricultural operations and our farm and ranch families.

“LB 405 will also harm healthcare in rural Nebraska,” Bailey continued. “Over $140 million will be taken from Nebraskans in new sales taxes for prescription drugs, medical equipment and hospital rooms. As a result, the elderly, the middle class, those without health insurance or with inadequate health insurance and people with disabilities will be hit with a new “sick tax” that is imposed only because someone needs medical care.”

Bailey explained further that rural healthcare facilities that are facing economic pressure will be damaged by having to pay increased sales taxes and from patients struggling to pay increased healthcare costs.

“The consequences and added taxes of LB 405 lead to the conclusion that LB 405 is simply a tax shift to selected sectors of our state’s economy and to lower- and middle-income Nebraskans,” concluded Bailey. “Nebraskans do not need a new ‘sick tax,’ nor will they benefit from higher property taxes. And the potential damage to farming, ranching, rural health care facilities, students, the elderly, the disabled and hard-working, middle-class families make this proposal a bad deal for rural Nebraska.”



Floyd Herman Receives Seventh Generation Award

The Center for Rural Affairs is pleased to announce that Floyd Herman, a 100 year old retired farmer from Wilbur, NE, has been chosen to receive the 2012 Seventh Generation Award. He will be honored for his integrity and leadership at a special awards banquet February 11 at the Nielsen Community Center in West Point, Nebraska.

The Seventh Generation Award is a lifetime service award presented to an individual who has made major contributions to improving rural life and protecting our land and water.

According to Chuck Hassebrook, Center for Rural Affairs Executive Director, Herman has been a long-time Center for Rural Affairs supporter, Initiative 300 veteran and major contributor to the Center for Rural Affairs Granary endowment fund.

“We worked very hard for Initiative 300,” said Herman. “And we proved that when farmers get together and work together, they can out-do the big companies. When Marty Strange came and started the Center For Rural Affairs, we made a big jump as far as farmers working together.  I have followed that work ever since.  Keep it up.”

Floyd was a national farm cooperative leader.  In his early years, he performed on vaudeville, served in the military and represented the US in the world-wide Sokol slet (Olympic-type competition) in 1932 in Prague, Czechoslovakia.  There, he was selected to carry the American flag into the stadium at the opening ceremonies. He has also been a long time Farmers Union member.

“Floyd is salt of the earth and an inspiration to anyone lucky enough to visit him,” added Hassebrook.




Nearly Third of Nebraska's Ethanol Plants Closed

A few weeks ago, it was announced that the Abengoa Bioenergy ethanol plant near York would be temporarily closing.  Since that time other plants have also closed, leaving more than one third of the state's ethanol plants not in production.  Last Friday's closure of the Ag Processing cooperative plant near Hastings took the number of closed ethanol plants to seven. There are 24 ethanol plants in Nebraska.

Nebraska Ethanol Board administrator Todd Sneller said a number of ethanol plants nationwide have been idled because of high corn prices and dwindling profit margins.  But he said many of the plants that remain open are maxing out production to help meet demand. Sneller said ethanol plants can better withstand high corn prices if there is strong demand for their distiller's grain as feed in the area.



Green Plains Reports Fourth Quarter and Full-Year 2012 Financial Results

Omaha-based Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today its financial results for the fourth quarter and full year ended December 31, 2012. Net income attributable to Green Plains for the full year of 2012 was $11.8 million, or $0.39 per diluted share, compared to net income of $38.4 million, or $1.01 per diluted share, in 2011. Revenues were $3.5 billion for 2012 compared to $3.6 billion in 2011.

For the quarter ended December 31, 2012, net income attributable to Green Plains was $33.0 million, or $0.94 per diluted share, compared to $13.3 million, or $0.36 per diluted share, for the same period in 2011. Revenues were $883.7 million for the fourth quarter of 2012 compared to $922.8 million during the same period in 2011.

"All of our business segments reported positive operating income during both the fourth quarter and the last half of 2012. We believe this demonstrates the effectiveness of our low-cost platform and our ability to manage risk. For the fourth year in a row, our business was profitable and, with the sale of the 12 grain elevators, we continue to focus on creating value for our shareholders," stated Todd Becker, President and Chief Executive Officer. "We ended 2012 with $280 million in cash and the lowest ethanol plant debt in our history. This positions us for the future to take advantage of growth and diversification opportunities and to continue to withstand the cyclicality of our business."

"The forward curve for ethanol margins has not given our team a reason to execute significant amounts of forward hedges. Recently, nearby margins have recovered somewhat but remain below historical levels. With that said, our growth in non-ethanol operating income over the last two years will continue to cushion the effect of a compressed margin structure," said Becker. "We expect to generate over $60 million of non-ethanol operating income this year, even considering the recent sale of certain agribusiness assets."

In December 2012, Green Plains completed the previously-announced sale of 12 grain elevators located in northwestern Iowa and western Tennessee. The sale resulted in an after-tax gain of $26.3 million which is included in fourth quarter 2012 results. Excluding the gain on the sale of agribusiness assets, net income attributable to Green Plains was $6.7 million, or $0.21 per diluted share, for the fourth quarter.

"Over the next two years, we plan to realign our agribusiness investment," stated Becker. "We plan to add between five and ten million bushels of grain storage capacity per year. These assets will be located around our ethanol plants to take advantage of our current infrastructure and enhance our corn origination and trading capabilities. Redefining our agribusiness strategy in this way should allow us to leverage our seven million ton processing capacity to aggressively compete for first-handle grain margins. This minimal investment per bushel should provide solid long-term returns for our shareholders."

Full-year 2012 EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $115.5 million compared to $148.6 million in 2011. Green Plains had $280.1 million in total cash and equivalents and $121.4 million available under committed loan agreements at subsidiaries (subject to satisfaction of specified lending conditions and covenants) at December 31, 2012.



Cattle Industry Brings 'Boots on the Bay' at Annual Convention and NCBA Trade Show in Tampa

More than 5,000 cattlemen and women are registered to attend the 2013 Cattle Industry Convention and National Cattlemen’s Beef Association (NCBA) Trade Show, which kicked off today at the Tampa Convention Center. The convention is the largest annual gathering of the beef industry and runs through Feb. 9.

The Opening General Session on Feb. 6 officially started the convention and featured a keynote address from Sean and Leigh Anne Tuohy. Their lives were first chronicled in the bestselling book, “The Blind Side” and then went on to become a Hollywood blockbuster film. “The Blind Side” tells the story of Michael Oher, a homeless teenager turned first round draft pick NFL football player, with the support and love of an unlikely adoptive family, the Tuohys. Oher now plays for Super Bowl XLVII champions the Baltimore Ravens. During their speech this afternoon, the Tuohys shared their message of love, hope and the power of cheerful giving.

Tomorrow morning, cattlemen and women will hear from Stuart Varney during General Session II. Varney, the host of “Varney & Company” on FOX Business Channel, is a veteran business and financial journalist. He will offer a positive take on the current economic situation and describes, with up-to-the-minute detail, what it means for you, your family and your business.

This year’s convention participants will hear from industry leaders, gather insight on industry trends, meet with their fellow cattlemen and women, and enjoy Tampa’s Gasparilla Pirate Fest, a night full of lively pirates, sounds from the Caribbean Chillers and plenty of local eats. The convention will close with the Cattlemen’s Beach Bash featuring the Beach Boys. NCBA President and Nebraska rancher J.D. Alexander said the convention is a must for all cattlemen and women.

“We’re here in Tampa to highlight some of the successes of the cattle industry in the past year while also setting goals and priorities for what lies ahead,” said Alexander. “Convention attendees will be able to share valuable insights, help shape the future of the cattle industry, learn how to sustain and improve their operations and also enjoy warm Florida weather.”

 After learning about the latest trends and technologies in the industry and attending the NCBA Trade Show, convention goers will have the opportunity to attend committee meetings and take part in NCBA’s grassroots policy process.

“The grassroots policy process is the backbone and the strength of NCBA. Cattlemen come together to discuss policy priorities and then chart the course forward for the organization,” said Alexander. “From cattle health and the environment, to marketing and tax policy issues, there will be many critical issues addressed this week.”



Beef Sustainability Assessment Documents Industry Progress

Participants at the 2013 Cattle Industry Convention gathered today to hear the results of the first-ever Beef Industry Sustainability Assessment. The assessment, which was funded by the Beef Checkoff Program, marks the first time any industry has ever measured the sustainability of its entire supply chain. This important work positions the beef industry to lead the conversations about industry sustainability.

“Sustainability is, in fact, a journey. This particular journey started two years ago when the Beef Promotion Operating Committee decided to fund the sustainability assessment project,” said Richard Gebhart, an Oklahoma cattleman and vice chairman of the checkoff's Producer Communications Working Group. “Raising cattle in a sustainable way has been important to the cattle industry for a long time, but this is the first opportunity we have had to use science to tell that story.”

The Beef Sustainability Assessment was conducted by the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff Program. BASF Corporation and the U.S. Department of Agriculture’s Agricultural Research Service (ARS) played integral roles as subcontractors to assemble and interpret the data required to conduct the assessment.

“This comprehensive analysis will provide a roadmap for the journey toward a more sustainable beef industry,” said NCBA Director of Sustainability Kim Stackhouse-Lawson. “The U.S. beef industry is one of the most complex biological, economic and social supply chains in the world. As such, measuring these complex, interrelated systems is difficult but critically important to the future stability and profitability of the industry.”

A sustainable beef industry is critically important as we work toward the goal of feeding 9 billion people by the year 2050, a global population explosion that experts estimate will require at least 70 percent more food with few additional resources.

“For the beef industry, sustainability has been defined as the process of meeting beef demand by balancing environmental responsibility, economic opportunity and social diligence throughout the supply chain,” said Stackhouse-Lawson. “By ensuring that these three pillars of beef production are balanced, the industry will be well positioned to continue future growth.”

According to Stackhouse-Lawson, the beef industry has made significant improvement toward a more sustainable future over time. Despite the current rate of progress, the beef industry’s path toward continuous progress is never-ending.

“Sustainability is a journey and there’s really no end-point to this work,” she explained. “We can always be more sustainable than we are today. That’s what we’re working toward, that continuous improvement that will make us better over time.”



NCBA's Cattlemen's College® Celebrates 20th Year Anniversary at Cattle Industry Convention

Now in its 20th year, the National Cattlemen’s Beef Association’s (NCBA) Cattlemen’s College® has established a reputation as one of the most thorough cattle producer education programs in the nation. Sponsored by Zoetis Animal Health, the 2013 edition of Cattlemen’s College® began last night with participants being treated to great Florida hospitality and an exciting ranch horse competition at the Florida State Fairgrounds. Today, Cattlemen’s College® students heard from an outstanding lineup of industry experts.

Cattlemen’s College® offers a wide range of informative, one of a kind hands-on workshops designed for cattle operations of every size and sector. Class began bright and early today with a keynote address by internationally respected futurist Dr. Lowell Catlett, who spoke about the resiliency of the beef industry and the people who work in it. Catlett also provided his predictions for the long range outlook for the agricultural industry, along with factors that influence profitability and sustainability of beef cattle production.

“No matter what is thrown at us, we just get up in the morning and go to work,” said Catlett. “The resiliency of the human spirit is amazing. People matter, and the beef industry needs to be ready for tremendous changes to come.”

Today’s sessions included a cattle market update presented by CattleFax, along with sessions on preserving family relations on the ranch, weather predictions for 2013 and beyond, consumer attitudes toward beef and beef production, how to cope with drought and high feed prices, animal welfare issues and how to identify risk factors that affect cattle producers’ bottom line.

Allen Moczygemba, director of the beef segment of the U.S. Cattle and Equine Team with Zoetis Animal Health, said that the company saw a need for more educational programs for cattle producers.

“Twenty years ago, cattle producers needed access to information they didn’t have,” said Moczygemba. “Years later there is still a hunger and desire for more information. U.S. beef producers want to become better at what they do, and they are constantly striving to improve. Cattlemen’s College provides them with the tools to achieve that.”



Boehringer Ingelheim Vetmedica, Inc. Becomes Sponsoring Partner for BQA Certification

The National Cattlemen’s Beef Association (NCBA) is pleased to announce that Boehringer Ingelheim Vetmedica, Inc. is partnering with the Beef Quality Assurance (BQA) program, and will be sponsoring the cost of BQA certification for American cattlemen and cattlewomen this spring.

The cost of BQA certification is normally $25-$50; however, between Feb. 11, 2013 and March 15, 2013, Boehringer Ingelheim Vetmedica, Inc. will defray the cost of the certification, making it free for producers.

“BQA provides cattlemen with the tools they need to produce the safest, highest quality beef in the world while also looking at ways to make their operations more efficient and productive,” said BQA Senior Director Ryan Ruppert.

Ruppert notes that BQA is the gold standard of livestock handling and animal welfare programs, and that Boehringer Ingelheim Vetmedica Inc.’s support of BQA certification demonstrates the company’s commitment to improving the industry and telling consumers about the sound production practices most cattlemen use every day. Boehringer Ingelheim Vetmedica, Inc. has also placed emphasis on managing herd health before problems arise to prevent issues and keep operations running efficiently.

BQA has customized programs specific to cow/calf, stocker, feedlot or dairy operations. These easy to use modules teach sound management techniques they can apply to their operation. The cattle industry has embraced BQA because it is the right thing to do; but certified producers also report improvements in efficiency and increased profitability. It also helps cattle operations tell their story to consumers who might not understand all of the safety measures cattlemen take in producing the food on the table.

"We're proud to partner with BQA to bring this important certification program to more American cattlemen and dairy producers," said David Korbelik, director of cattle marketing for Boehringer Ingelheim Vetmedica, Inc. "Much like our Prevention Works approach to animal health, BQA is about monitoring and making incremental improvements throughout the life cycle to prevent disease and ensure a quality end product. We will also be working with the BQA to allow access to the training and certification program for animal health and veterinary students.”

Those interested in taking advantage of this BQA certification opportunity can go to www.BIVI-BQA.com. “It’s clear that Boehringer Ingelheim Vetmedica, Inc. is committed to helping consumers understand that beef is produced in a safe and humane manner,” said Ruppert. “This partnership will help producers learn about the latest industry advancements and demonstrate the ways they continue to provide a top-quality food product.”

For more information, please contact: Rene Ward, 816-236-8276, Associate Director, Public Relations and Internal CommunicationsBoehringer Ingelheim Vetmedica, Inc. rene.ward@boehringer-ingelheim.com or Ryan Ruppert, 303-653-6905, Senior Director, Beef Quality Assurance, National Cattlemen’s Beef Association rrupert@beef.org.

Further information on the BQA program can be found at www.BQA.org. To complete the BQA certification process, visit www.BQA.org/team.



Farmers Come Together to Gain Insight, Formulate Recommendations

Grower leaders from across the country gathered in St. Louis this week to explore a variety of issues that will affect corn farmers in the upcoming year and to determine a course for National Corn Growers Association activities to support them. For three days, members of five of NCGA's issue-focused action teams and committees listened to reports from industry experts and discussed programs to guide NCGA staff as they work on behalf of growers.

"These meetings play an important role in that they allow specialized teams to focus on their area of expertise and guide programs with a comprehensive, detailed understanding of the issues," said NCGA President Pam Johnson. "It is inspiring to see the passion these volunteer leaders bring to their duties and to converse with such knowledgeable industry experts. As a farmer, I feel confident that they will lead us in the right direction."

With industry leaders including representatives from a variety of seed technology and grain trade companies, subject area experts from ethanol and research groups and government officials providing information, team members asked thoughtful, pointed questions. They will use this information to develop a team perspective on upcoming issues including promotion of biofuels, investment in scientific research and the furthering of efforts to coordinate communications across the value chain.

The teams participating in these meetings included the Ethanol Committee, the Grower Services Action Team, the Production and Stewardship Action Team, the Research and Business Development Action Team and the Trade Policy and Biotechnology Action Team. Members of the Public Policy Action Team are concurrently meeting in Washington.



Weekly Ethanol Production for 2/01/2013

According to EIA data, ethanol production averaged 774,000 barrels per day (b/d) — or 32.50 million gallons daily. That is up 4,000 b/d from the week before. The four-week average for ethanol production stood at 780,000 b/d for an annualized rate of 11.96 billion gallons.

Stocks of ethanol stood at 20.1 million barrels. That is a 2.2% decrease from last week.

Imports of ethanol showed zero b/d.

Gasoline demand for the week averaged 353.4 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.20%.

On the co-products side, ethanol producers were using 11.736 million bushels of corn to produce ethanol and 86,381 metric tons of livestock feed, 77,009 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.03 million pounds of corn oil daily.



RFA Chief Says American Ethanol Is “Under Siege — and Fighting Back”

Addressing 1,100 participants in the National Ethanol Conference in Las Vegas today, Renewable Fuels Association (RFA) President and CEO Bob Dinneen will declare, “The state of the ethanol industry can be summed up in five words: under siege and fighting back.”

Explaining in his prepared remarks that “American ethanol is engaged in a Battle for the Barrel. The stakes are high; our adversaries are well-funded; and our challenges are legion,” Dinneen will say that the industry is fighting on three fronts:
· Defending the major federal program for ethanol production, the Renewable Fuel Standard (RFS);
· Promoting motor fuels consisting of 15 percent blends of ethanol with gasoline (E15); and
· Opening new markets for American ethanol overseas, while opposing protectionist policies in Brazil and the European Union (EU).

Warning that the RFS is under attack by “the angry birds at the National Chicken Council, the mad cows at the American Meat Institute, and the big spending oil companies,” Dinneen will declare that “Our adversaries are not dedicated to destroying the RFS because it has failed. Our adversaries are dedicated to destroying the RFS because it is succeeding.”

In spite of obstacles in 2012 including “the worst drought in 50 years,” “falling gasoline demand,” “rising imports”, and “a host of regulatory and commercial barriers to E15,” Dinneen will report that the U.S. industry “produced 13.3 billion gallons of high-quality, high-octane biofuels, representing 9.7 percent of the nation’s motor fuel and marketed in every state, from coast to coast and border to border.”

U.S. ethanol production helps to free the nation from its dependence on imported oil, Dinneen will note. For instance, in 2012, ethanol displaced 485 million barrels of imported oil, lessening the nation’s dependence on imports from more than 60 percent in 2005 to only 41 percent in 2012.

Stressing the importance of national debates about federal energy policy, Dinneen will explain that last years’ experience demonstrated that the Renewable Fuel Standard (RFS) “is designed to give refiners and EPA multiple ways to meet the standards and administratively adjust the program to accommodate whatever market anomalies may arise.” During the years ahead, Dinneen will pledge, the U.S. ethanol industry will defend the federal standard, “…our mantra must be, ‘Don’t mess with the RFS!’”

Turning to efforts to promote E15, now approved by the EPA, Dinneen will report that the first E15 stations opened during 2012. Meanwhile, RFA has developed the only Model Mitigation Plan approved by the EPA, as well as a retail advisory handbook, to guide gasoline marketers across the country in the proper labeling, documentation, distribution, dispensing and sale of E15.

On the international front, Dinneen will discuss the RFA’s actions against “Europe’s foolish effort to limit ethanol produced from what they call ‘food feedstocks.’”

Warning that “Brazil promotes its own production with favorable tax treatment and subsidies for ethanol transportation, storage and export” while the EPA is weakening American ethanol’s position in U.S. markets by “assigning specious land use change penalties to U.S. production.” The result, Dinneen will explain, is that “Without Uncle Sam’s federal finger on the scales, U.S. produced ethanol is the lowest cost ethanol in the world. Without that RIN credit Brazilian ethanol could not compete. With it, Brazilian ethanol is cannibalizing our market and displacing U.S. product. The inevitable consequences are catastrophic: Our plants are shuttering. Our workers are losing their jobs. And the continued evolution of our industry is stymied. This must end. ”

“Ultimately, we’ll need to open new markets in the Pacific Rim, India, China and anywhere in the world consumers are looking for clean-burning, high-performance, renewable motor fuels,” Dinneen will declare.

In spite of all the challenges during 2012, the RFA leader will report, the U.S. ethanol industry supported 87,000 direct jobs and 295,000 indirect and induced jobs, while adding $43 billion to the GDP, providing $30 billion in household income to families, saving consumers between 78¢ and $1.09 per gallon, or about $1,200 per family, and reducing greenhouse gas emissions by 48 to 60 percent compared directly to gasoline.

Expressing optimism for the future of American biofuels, Dinneen will declare: “The nay-sayers keep writing obituaries for cellulosic ethanol. But the real news is that, in 2012, the first commercial cellulose plant was completed and several others began construction. Ineos in Florida is producing cellulosic ethanol today. From Abengoa in Kansas to ZeaChem in Oregon, the future of the ethanol industry can now be seen.”

In conclusion, Dinneen will say: “The real story of 2012 isn’t that, sometimes, we got knocked down. The real story is that we kept on bouncing back.”



Ethanol Industry Created More than 380,000 Jobs and $43 Billion in GDP in 2012

In a challenging year for America’s farm economy, domestic ethanol production reached an estimated 13.3 billion gallons — the second highest annual production level in history amidst the nation’s worst drought in 50 years.

According to analysis conducted by Cardno-ENTRIX and commissioned by the Renewable Fuels Association (RFA), the production of the estimated 13.3 billion gallons of ethanol directly employed 87,292 Americans. An additional 295,969 Americans found work in positions indirectly affiliated with or induced by ethanol production.

These 383,260 total jobs helped create $30.2 billion in household income and contributed $43.4 billion to the national Gross Domestic Product (GDP).

Last year’s second highest annual ethanol production also helped displace 465 million barrels of imported oil worth $47.2 billion.

“This past year, our nation’s ethanol industry has demonstrated its efficiency and resilience during one of the worst droughts in half a century. Despite the weather and declining gasoline consumption, our domestic, homegrown industry kept up production, continued to improve the environment, and helped reduce our dependence on foreign oil,” said RFA President and CEO Bob Dinneen.

The report, entitled “CONTRIBUTION OF THE ETHANOL INDUSTRY TO THE ECONOMY OF THE UNITED STATES,” was completed by Cardno-ENTRIX and can be downloaded here.

Key finding of the report include:
• 87,292 direct jobs
• 295,969 indirect and induced jobs
• $43.4 billion contribution to GDP
• $30.2 billion in household income
• 465 million barrels of imported oil displaced, valued at $47.2 billion in 2012
• $7.9 billion paid in federal, state and local taxes helping support local roads, schools, first responders



January Record Month for CWT Export Assistance

The 2013 Cooperatives Working Together (CWT) Export Assistance program got off to a record start in January, receiving 160 requests for assistance from 10 CWT member cooperatives. That total included 128 assistance requests for cheese, 28 for butter, and two each for whole milk powder (WMP) and anhydrous milkfat.

After doing a comprehensive economic review of the requests received each week, four were accepted by CWT at the level of support members had requested. For the remainder, CWT advised members that the level of assistance they asked for was too high, based on market fundamentals. CWT determined that assistance should not be necessary on two of the requests submitted.

Of the 154 counter offers CWT made to members, 66 cheese offers were accepted, bringing the total cheese sales assisted to 19.3 million pounds. Twenty butter offers were accepted, taking total sales to 9.8 million pounds, and two WMP offers totaling 88,185 pounds were accepted. This was the equivalent of 391 million pounds of milk, or the same as the annual production of 18,600 cows.

The product was destined for 23 countries on six continents and will be delivered from January through July.



CBP INSPECTS VALENTINE FLOWERS FOR HARMFUL BUGS

Each year, U.S. Customs and Border Protection agriculture specialists inspect millions of cut flower imports during the Valentine season because some of these flowers may carry hitchhiking pests and diseases that could harm the U.S. flower industry.

“Agriculture inspections are a crucial part of the inspection process for items entering into the country,” said Kevin Harriger, executive director for the CBP Agriculture Programs Trade and Liaison office.  “CBP works to identify a relatively small number of harmful hitchhiking pests amongst the millions of stems entering the country because even a single dangerous pest could cause millions of dollars of damage to our nation’s crops.”

One of the most serious diseases that can be introduced via imported flowers is chrysanthemum white rust. If established in the United States, the disease could decimate the U.S. chrysanthemum industry. Other agricultural pests and diseases capable of destroying our nation’s crops or forests include the Emerald ash borer, the Asian long-horned beetle, citrus canker, and the Khapra beetle.

During the 2012 Valentine’s season from Jan. 1 to Feb. 14, CBP processed 842.2 million cut flower stems. Most of the cut flower shipments are imported from South America, primarily Colombia, with 536.1 million stems or 67 percent, followed by Ecuador with 194 million stems or 23 percent.

Miami ranks first among U.S. ports of entry for shipments of cut flower imports, followed by Los Angeles. The quantity of imported cut flowers processed by both ports during the 2012 Valentine’s season increased 5.7 percent compared to the 2011 season.

During the 2012 Valentine’s season:
-    CBP in Miami processed approximately 716.7 million stems or 85.1 percent of the total imported cut flowers nationally.
-    Approximately 516 million of cut flower stems imported from Colombia were processed in Miami, where the top cut flower imports are roses, mixed bouquets, and dianthus.
-    The imported cut flowers inspection process resulted in a total of 2,439 pest interceptions nationally. Miami intercepted 1,394 pests, followed by Los Angeles with 371 pests.
-    838 pests (34.4 percent) were intercepted from Colombia and 903 (37 percent) were intercepted from Ecuador.
-    The most common type of insects intercepted in these cut flower imports are Tetranychus sp. (mites), Aphididae (Aphids), Agromyzidae (Miner Flies) and Noctuidae (moths).

The top 10 ports of entry, by volume (number of stems), that processed shipments of cut flower imports for the 2012 Valentine’s season are:

Location - Quantity in Stems
FL Miami Air Cargo CBP - 716,735,319
CA Los Angeles CBP - 35,011,039
CA Otay Mesa CBP - 19,449,954
NY JFK Air Cargo CBP - 19,444,566
TX Laredo CBP Colombia - 18,618,113
IL Chicago CBP - 6,201,306
MA Boston CBP - 3,587,766
PR San Juan Air CBP - 3,306,025
TX Laredo CBP - 3,114,610
PR Aguadilla CBP - 1,794,641