Wednesday May 18 Ag News

Chemigation permits are due June 1st
Farmers planning to chemigate during the 2016 growing season must renew chemigation permits by June 1 to meet state deadline requirements, according to Josh Schnitzler, Field Technician for the Lower Elkhorn Natural Resources District (LENRD).

Chemigation is the application of any chemical, fertilizer or pesticide through an irrigation system. To legally chemigate in Nebraska, an operator must be certified to apply chemicals and obtain a chemigation permit from their local NRD.

     "Farmers holding chemigation permits, even if they are uncertain whether they will chemigate later this year, should consider renewing their permits by June 1," Schnitzler said.  Schnitzler is encouraging area producers to reapply by the state-required deadline to avoid the increased cost and possible delays of an inspection.

     An irrigation system that has not been renewed prior to the June 1 deadline cannot apply chemicals through the system until a new permit is obtained.  Chemigation renewal permits cost $20.  New chemigation permits cost $50, and the applicant cannot use the system until it passes a mandatory inspection.  All permits must be submitted to the LENRD office at 601 East Benjamin Avenue in Norfolk.

     By renewing a permit by June 1, a producer may proceed with chemigation. An inspection does not have to be performed prior to chemigation for a renewal application, Schnitzler said.  However, a random chemigation inspection may be necessary later in the season as part of the LENRD's routine summer inspections as required by state law.

     Applicants must have the signature of a certified applicator on their application form.  Schnitzler stated, “In order to be certified, a person must complete a chemigation safety course and pass an exam once every four years.”

     If chemigating is necessary, on short notice, emergency permits can be obtained at a cost of $250.  Irrigation systems meeting chemigation law standards will then be allowed to operate within 72 hours.

     Approximately 1,961 chemigation permits were approved by the LENRD in 2015.  For more information on renewing or obtaining chemigation permits, call the Lower Elkhorn NRD at 371-7313.



No-Till Whirlwind Expo - Winside, NE
Tuesday, June 21, 2016

How healthy are your soils? See how continuous no-till production helps boost soil health and what it means for your bottom line. Get equipment setup tips, hear how to integrate livestock onto your no-till operation, view our soil pit and rainfall simulator, and learn from no-till experts.

Cost $30 for non-members, $15 for members.

8:00 a.m. Registration at the Heinemann Farms, 1/8 mile east of the intersection of 571 Ave 849 Road.  3 miles east and 3 miles south of Winside, NE.

8:30 a.m. Welcome
On-Farm Demonstrations
- Dan Gillespie, No-till Specialist - NRCS, Norfolk, NE -         Rainfall Simulator presentation & soil demonstrations
- Dr. Ray Ward, President - Ward Laboratories, Kearney, NE - See soil quality, structure and health in the horizons in the soil pit
- Paul Jasa, Extension Engineer - NE Extension, Lincoln, NE - No-till planting equipment and system management

12:00 p.m. Lunch - Winside Auditorium - 424 Main St. Winside, NE 68790
   
Afternoon Presentations
- Keith Berns - Green Cover Seed, Bladen, NE - Carbonomics-The economy of the soil
- Scott Heinemann - Continuous no-till producer, Winside, NE - Getting started with no-till and cover crops in northeast Nebraska
- Dan Stelling - Continuous no-till and livestock producer, Pierce, NE - Integrating livestock into a no-till cropping operation

4:00 p.m. Interactive Q & A

Funded in part by the Nebraska Environmental Trust, USDA NRCS and Nebraska Extension. Sponsored by Green Cover Seed, Arrow Seed/Soil Builder Cover Crops and the Nebraska Environmental Trust.



Engler Agribusiness Entrepreneurship Program Visits Amarillo

Fifty representatives from the Engler Agribusiness Entrepreneurship Program at the University of Nebraska--Lincoln traveled to Amarillo, Texas, to visit a number of business entities including the West Texas Enterprise Center, Cactus Feeders, Micro Beef Technologies and Sage Oil Vac.

In addition to experiencing the innovative companies in and around Amarillo, the students worked with Snack Pak 4 Kids to enhance the community garden located next to the organization's warehouse facility. The students invested sweat equity and some $1,300 in materials that were raised as part of their annual activities. Community leadership is a central theme of the Engler program and the students are enthused to be able to invest their energy in a project important to the Amarillo community.

The Garden 4 Kids serves as an outreach to the San Jacinto neighborhood surrounding the SP4K warehouse. Through the G4K, fresh produce is made available to those in the area free of charge. 100 percent of all donations made to SP4K are used to purchase food for the program, and 100 percent of all donations made to the G4K are invested directly into the garden.

The Engler Agribusiness Entrepreneurship Program is a unique program designed to empower enterprise builders. Approximately 100 students at UNL are pursuing development of their entrepreneurial skills and capacity in the program. For more information, visit http://engler.unl.edu.



EPA Proposes Increase in Renewable Fuel Levels

The U.S. Environmental Protection Agency (EPA) today proposed increases in renewable fuel volume requirements across all types of biofuels under the Renewable Fuel Standard (RFS) program. The proposed increases would boost renewable fuel production and provide for ambitious yet achievable growth.

“The Renewable Fuel Standards program is a success story that has driven biofuel production and use in the U.S. to levels higher than any other nation,” said Janet McCabe, acting assistant administrator for EPA’s Office of Air and Radiation. “This administration is committed to keeping the RFS program on track, spurring continued growth in biofuel production and use, and achieving the climate and energy independence benefits that Congress envisioned from this program.”

The proposed volumes would represent growth over historic levels:
-    Total renewable fuel volumes would grow by nearly 700 million gallons between 2016 and 2017.
-    Advanced renewable fuel — which requires 50 percent lifecycle carbon emissions reductions — would grow by nearly 400 million gallons between 2016 and 2017.
-    The non-advanced or “conventional” fuels portion of total renewable fuels — which requires a minimum of 20 percent lifecycle carbon emissions reductions — would increase by 300 million gallons between 2016 and 2017 and achieve 99 percent of the Congressional target of 15 billion gallons.
-    Biomass-based biodiesel — which must achieve at least 50 percent lifecycle emissions reductions — would grow by 100 million gallons between 2017 and 2018.
-    Cellulosic biofuel — which requires 60 percent lifecycle carbon emissions reductions — would grow by 82 million gallons, or 35 percent, between 2016 and 2017.

Renewable Fuel Volume Requirements for 2014-2018
                                                     2014 -  2015  - 2016  - 2017 -  2018
Cellulosic biofuel (mil gal)           33    -  123  -   230   -  312* -  n/a
Biomass-based diesel (bil gal)     1.63  -  1.73  -  1.9    -  2.0    -   2.1*
Advanced biofuel (bil gal)           2.67  -  2.88  -  3.61   -  4.0*  -  n/a
Renewable fuel (bil gals)           16.28 -  16.93 - 18.11  - 18.8* -  n/a
*Proposed Volume Requirements

The Clean Air Act requires EPA to set annual RFS volume requirements for four categories of biofuels. By displacing fossil fuels, biofuels help reduce greenhouse gas emissions and help strengthen energy security. EPA is proposing to use the tools provided by Congress to adjust the standards below the statutory targets, but the steadily increasing volumes in the proposal continue to support Congress’s intent to grow the volumes of these important fuels that are part of the nation’s overall strategy to enhance energy security and address climate change. EPA implements the program in consultation with the U.S. Department of Agriculture and the U.S. Department of Energy.

EPA will hold a public hearing on this proposal on June 9, 2016, in Kansas City, Mo. The period for public input and comment will open until July 11.

For more information on today’s announcement, go to: http://www.epa.gov/renewable-fuel-standard-program/proposed-renewable-fuel-standards-2017-and-biomass-based-diesel.



Northey, on RFS proposal

Iowa Secretary of Agriculture Bill Northey issued the following statement on the EPA’s release of the proposed 2017 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS). RVOs are set annually by EPA to dictate the amount of renewable fuel that is blended into the motor fuel supply.  The EPA’s full proposal can be found at https://www.epa.gov/renewable-fuel-standard-program/proposed-renewable-fuel-standards-2017-and-biomass-based-diesel.

“While the RVO numbers released today allow for some growth in the renewable fuels levels included in our nation’s fuel supply, unfortunately they don’t meet the levels passed with bipartisan support in Congress and continue to use questionable justifications for not meeting those required levels. The EPA’s proposal starts another comment period, so it is important that Iowans take advantage of that opportunity and voice their support for the renewable fuels industry that is so important to our state.”



NCGA Statement on EPA’s Proposed 2017 Renewable Volume Obligation

The following is a statement from Maryland farmer Chip Bowling, president of the National Corn Growers Association, in response to today’s announcement by the U.S. Environmental Protection Agency (EPA) of the proposed renewable volume obligations under the Renewable Fuel Standard.

“EPA has moved in a better direction, but we are disappointed that they set the ethanol number below statute. The Renewable Fuel Standard is working for America. It has made our air cleaner. It has spurred investment in rural communities and created high-tech jobs. It has given drivers more choices at the gas pump. And it has reduced our dependency on foreign oil. Any reduction in the statutory amount takes America backward – destabilizing our environment, our economy, and our energy security.

“In the past, the EPA has cited a lack of fuel infrastructure as one reason for failing to follow statute. Our corn farmers and the ethanol industry have responded. Over the past year, we’ve invested millions of dollars along with the U.S. Department of Agriculture’s Biofuel Infrastructure Partnership to accelerate public and private investment in new ethanol pumps and fuel infrastructure. The fact is, today’s driver has more access than ever to renewable fuel choices.

“America’s corn farmers and the ethanol industry have done their job. NCGA will continue fighting to hold the government accountable for its promises. We call on the EPA to follow the law, and raise the ethanol volume to statute.

“In the coming weeks, the EPA needs to hear from all of us: farmers, neighbors, community leaders and anyone who cares about stability for our rural economy. If you want clean air, a strong economy and vibrant rural communities, and energy independence, we need you to help stand up for the Renewable Fuel Standard. Ask the EPA to raise the RVO to statute.”



EPA Proposal: Moves RFS Forward, Improvement Still Needed

Today the Environmental Protection Agency (EPA) released proposed 2017 Renewable Volume Obligations (RVOs) for the Renewable Fuel Standard (RFS). The conventional biofuel amount of 14.8 billion gallons is an increase from 14.5 billion gallons in 2016, but falls short of the RFS law. In response Emily Skor, CEO of Growth Energy, issued the following statement:

“We are encouraged that the EPA proposal takes a step forward, signaling the critical importance of cleaner burning, less expensive biofuels, like ethanol. However it still falls short of the goals of the Renewable Fuel Standard. Ethanol producers, retailers and the current auto fleet are fully capable of providing consumers with a true choice at the pump.

“The Renewable Fuel Standard is our country’s most successful climate and energy policy. It continues to inject much needed competition and consumer choice into the vehicle fuels marketplace. It enables greater consumer use of cleaner biofuels that displace toxic emissions and reduce our carbon footprint, while creating American jobs, revitalizing rural America and lowering the price at the pump.

“Growth Energy is reviewing this proposal and will actively encourage our members and consumers to engage throughout the public comment period. The administration invested $100 million in biofuels infrastructure this past year and we look forward to working with EPA and the administration to finalize a rule with higher renewable fuel levels to ensure an open and fair fuel marketplace.



EPA Proposes Modest Biodiesel Growth under Renewable Fuel Standard

The National Biodiesel Board (NBB) called for the Obama Administration to strengthen an EPA proposal released Wednesday that would raise the biodiesel volume requirement under the Renewable Fuel Standard by only 100 million gallons in 2018.  

NBB Vice President of Federal Affairs Anne Steckel said that without stronger growth in the final rule, the administration would be missing an opportunity to reduce carbon emissions while helping to reshape America’s transportation sector.

“We appreciate the EPA’s timeliness in releasing these volumes and its support for growing biodiesel use under the RFS, but this proposal significantly understates the amount of biodiesel this industry can sustainably deliver to the market,” Steckel said of the proposal for 2.1 billion gallons of biodiesel. “We have plenty of feedstock and production capacity to exceed 2.5 billion gallons today, and can certainly do so in 2018.”

Biodiesel – made from a diverse mix of resources such as recycled cooking oil, soybean oil and animal fats – is the first and only EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. It has made up the vast majority of Advanced Biofuel production under the RFS to date, and according to the EPA, reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel.

The EPA proposal would establish a 2.1-billion-gallon Biomass-based Diesel requirement in 2018, up from the 2-billion-gallon requirement for 2017. NBB believes EPA can easily call for at least 2.5 billion gallons in 2018 after nearly 2.1 billion gallons of biodiesel were delivered under the RFS in 2015. There is substantial unused production and distribution capacity in the United States, and the U.S. industry has already diversified its feedstocks and expanded into renewable diesel to increase its production.

“We have made tremendous progress in cleaning up vehicle emissions but the fact remains that petroleum still accounts for about 90 percent of our transportation fuel,” Steckel said. “This is dangerous and unsustainable, and the RFS is the most effective policy we have for changing it.”

“Biodiesel specifically is the most successful Advanced Biofuel under the RFS,” Steckel added. “It is proving that Advanced Biofuels work. But we need meaningful RFS growth to continue making a real dent in our oil dependence and to continue driving investment. On the heels of the Paris climate accord, this is not the time for a piecemeal approach. We need bold action.”



Biodiesel Can Do More than the RFS Calls For

The U.S. Environmental Protection (EPA) Agency released today the Proposed Rule for the Renewable Fuel Standard (RFS) volume requirements, including the volume requirements for biomass-based diesel for 2018. The Proposed Rule calls for 2.1 billion gallons of biomass-based diesel in 2018.

The biomass-based diesel requirements for 2016 and 2017 are 1.9 billion and 2.0 billion gallons, respectively. The Proposed Rule continues to provide modest increases for biomass-based diesel, which according to the American Soybean Association (ASA) does not capitalize on the opportunity for greater growth, especially considering the existing production capacity, feedstock availability and price, and the growing volumes of imports. The biomass-based diesel utilization in the U.S. was approximately 2.1 billion gallons in 2015 and is expected to exceed that amount in 2016.

“The EPA Proposed Rule misses an opportunity to build on the success and benefits of this growing renewable domestic biodiesel industry,” said ASA President Richard Wilkins, a soybean farmer from Greenwood, Del. “While our differences with EPA regarding the appropriate biomass-based diesel volumes are relatively small, we are frustrated that the Administration does not embrace the many benefits this industry provides and take better advantage of these opportunities.”

The biodiesel industry provides a market outlet for surplus soybean oil as well as animal fats and other renewable agricultural feedstocks; a more diversified energy market; increased domestic energy production; reductions in greenhouse gas emissions; new jobs and economic development; expanded markets; and reduced soy meal feed costs.

“As we have said before, biodiesel provides significant economic and environmental benefits and we have the capacity to do more,” said Wilkins. “The Administration wants to address climate change and reduce greenhouse gas emissions and biodiesel can contribute more to that effort.”

Biodiesel is a domestically-produced, renewable fuel that is proven to achieve emissions reductions ranging from 57 to 86 percent and is the first and only Advanced Biofuel to reach commercial-scale production nationwide. Biodiesel has made up the vast majority of Advanced Biofuel production under the RFS to date. Accounting for approximately half of the feedstock used, soybean oil remains the largest source of oil for biodiesel production.

"As an industry we have always advocated for RFS volumes that are modest and achievable and the biodiesel industry has met or exceeded the targets each and every year that the program has been in place," Wilkins reiterated. “The American Soybean Association looks forward, once again, to providing comments to EPA to demonstrate and support the advancement of a more aggressive biomass-based diesel program in the Final Rule.”



EPA should increase 2017 RFS blending levels as gasoline use reaches record highs

Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE), issued the following statement after the U.S. Environmental Protection Agency (EPA) released proposed renewable volume obligations (RVOs) for the 2017 Renewable Fuel Standard (RFS).
 
“A top excuse EPA has used to rein-in the RFS is data from the U.S. Energy Information Administration (EIA) which indicate falling gasoline consumption.   EPA has claimed they can’t require oil companies to add more ethanol to a shrinking gasoline pool because of the so-called E10 blend wall,” said Jennings.   “Under that logic, EPA’s ethanol blending volumes for 2017 should increase to statutory levels because gasoline use is on a steady rise and will set a new record this year.”
 
According to EIA, gasoline use rose to 9.2 million barrels per day (bpd) in 2015 – just shy of the 2007 record of 9.29 million bpd.   In 2016, EIA predicts a new gasoline use record of 9.3 million bpd will be set and that trend will continue into 2017.
 
“While we are pleased that EPA’s 2017 proposal increases ethanol blending levels from 2016, we remain disappointed that EPA falls back on the questionable E10 blend wall methodology which has disrupted implementation of the RFS for more than a year,” said Jennings.   “Our priority is to ensure EPA holds oil companies legally responsible under the RFS for making cleaner and less expensive fuel choices, such as E15 and flex fuels, available to consumers.   We will provide ACE members with a platform to once again submit comments to EPA so we can work to improve upon this proposal in advance of the final rule which will be issued on November 30.”
 
Infrastructure constraint excuses don’t hold water either.   In 2015 the U.S. Department of Energy’s National Renewable Energy Laboratory issued a report confirming that most retail infrastructure is already compatible with E15.   The majority of cars on the road today are approved to use E15.



NFU Statement on Proposed RFS Volume Targets

The U.S. Environmental Protection Agency (EPA) proposed today its Renewable Fuels Standard (RFS) renewable volume obligations (RVO) for 2017 at 18.8 billion gallons, which fall more than 5 billion gallons below the statutory volume levels set by Congress.

Pointing to the connection between reliable implementation of the RFS and achievement of the Administration’s climate goals, the National Farmers Union (NFU) released the following statement in response to today’s announcement:

“I’m deeply disappointed to see the EPA undermine the RFS once again by falling significantly short of the statute with their proposed volume obligations. This simply does not track with other admirable, important advances on climate this Administration has made.

“Farmers and ranchers understand the impacts that climate change has on our planet, our environmental resources, and our ability to feed a growing world population. The investments made in renewable fuels and advanced biofuels have helped bridge a divide between our current environmental impact and the climate goals set forth by the Administration – goals that we cannot meet without the participation of our family farmers and ranchers.

“The oil companies have had plenty of time to build out the distribution infrastructure to deliver more biofuels to the consumer and commercial markets that seek this environmentally-friendly energy source. They have simply refused to do so, and EPA’s negligence in adhering to the statutory levels has significantly undermined the plan laid out by Congress in 2007.

“Unfortunately, this action comes at a time when economic distress is increasing in farm country and this half-hearted proposal from EPA will add to that distress. It is time that the Administration stop placing the agenda of Big Oil above our own climate objectives.

“NFU urges the Administration to return the volume obligations to their statutory levels in the final rule.”



Fertilizer Prices Continue to Hold Steady

Average retail fertilizer prices continued to hold steady the second week of May 1016, according to fertilizer retailers surveyed by DTN. Retail fertilizer prices have been steady for five consecutive weeks now.

Prices of four fertilizers were lower while four were higher compared to last month, though moves in both directions were fairly minor. The four fertilizers with a slightly lower price were DAP with an average price of $476 per ton, MAP $502/ton, potash $366/ton and urea $385/ton.

The other four fertilizers with slightly higher prices were 10-34-0 with an average price of $561 per ton, anhydrous $588/ton, UAN28 $274/ton and UAN32 $321/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.36/lb.N, UAN28 $0.49/lb.N and UAN32 $0.50/lb.N.

With retail fertilizer moving lower in recent months, fertilizers are lower compared to a year earlier. All fertilizers are now double-digits lower.

UAN32 and 10-34-0 are both 14% lower while both MAP and urea are both 16% less expensive from a year previous. In addition, DAP, anhydrous and UAN28 are all 17% less expensive while potash is 26% lower.



EIA: Ethanol Stocks, Output Down

Ethanol inventories were drawn down last week to the lowest level this year, while domestic production declined and blending demand increased, according data released Wednesday, May 18, by the Energy Information Administration.

The data showed U.S. inventories declined 100,000 barrels (bbl), or 0.7%, to 21.1 million bbl for the week-ended May 13, with year-over-year surplus reduced to 700,000 bbl or 3.3%.

Plant production fell 14,000 barrels per day (bpd), or 1.5%, last week to 948,000 bpd while 1.2% lower year-over-year.

Blender inputs, a proxy for ethanol demand, rose by 28,000 bpd, or 3.1%, to 918,000 bpd for the week, while up 1.3% year-over-year.