Tuesday December 7 Ag News

 CHS Inc. Owners Elect Five Board Members During Annual Meeting

CHS Inc. owners elected five board members to three-year terms during the cooperative's 2021 annual meeting held Dec. 2 and 3 in Minneapolis, Minnesota. CHS Inc. is the nation's largest cooperative and a leading global agribusiness company owned by farmers, ranchers and cooperatives across the United States.

Reelected to three-year terms are:
    David Beckman, who raises irrigated corn and soybeans and operates a custom hog-feeding operation near Elgin, Neb., representing Region 8 (Nebraska, Kansas, Colorado, New Mexico, Oklahoma, Texas)
    David Kayser, who raises corn, soybeans and hay and operates a cow-calf and feeder-calf business near Alexandria, S.D., representing Region 4 (South Dakota)
    David Johnsrud, who farms with his brother and nephew near Starbuck, Minn., representing Region 1 (Minnesota)
    Steve Fritel, who raises cash grain, including spring wheat, barley, soybeans, edible beans, corn and canola on his family farm near Rugby, N.D., representing Region 3 (North Dakota)
    Russ Kehl, who raises a variety of crops and owns a cow-calf herd, a dry bean processing facility, a custom farming business and a trucking and logistics company in Quincy, Wash., representing Region 6 (Washington, Oregon, Idaho, Utah, Arizona, California, Hawaii, Nevada, Alaska)

The following CHS Board members were elected to one-year officer terms:
    Dan Schurr, LeClaire, Iowa, reelected chair
    C.J. Blew, Castleton, Kan., reelected first vice chair
    Jon Erickson, Minot, N.D., reelected second vice chair
    Russ Kehl, Quincy, Wash., reelected secretary-treasurer
    Alan Holm, Sleepy Eye, Minn., elected assistant secretary-treasurer

Amendments passed
CHS owners voted to approve amendments to the CHS Articles of Incorporation and CHS Bylaws. The amendments remove obsolete language and confirm the option of employing the practice of voting electronically for CHS annual meetings and special meetings.



REMOVING NET WRAP AND TWINE
– Jerry Volesky, NE Extension
 
Is twine or net wrap good feed?  Obviously not, but it can cause health problems if animals eat too much of it.
 
Feeding hay is work.  To lighten the work load feeding hay, we often take short cuts and leave some twine or net wrap on the bales.  And whether we want them to or not, animals eat some of that twine.
 
There is the potential for twine to accumulate in the rumen of cattle and cause obstruction.  Research at North Dakota State University has confirmed this risk and provided further information on what happens to twine when cattle eat it.
 
In a series of experiments, the North Dakota research first showed that neither plastic net wrap nor biodegradable twine get digested by rumen microbes.  The old fashioned sisal twine, however, does get digested, although quite a bit more slowly than hay.
 
In another study net wrap was included in the ration fed to steers for an extended period of time.  Then, 14 days before the steers were harvested, the net wrap was removed from the feed to learn if the net wrap eaten earlier might get cleared out of the rumen and digestive system.  Turns out it was still in the rumen even after 14 days.
 
So what should you do?  First, remember that it doesn’t appear to be a health concern very often.  And cows obviously are more at risk than feedlot animals.  So, it might be wise to remove as much twine, especially plastic twine, as can be removed easily from bales before feeding.  Twine in ground hay may be less of a problem since more of it is likely to pass completely through the animal.
 
Think about how shortcuts and work-reducing actions you take this winter might affect your animals.  Then act accordingly.



Green Plains Releases Inaugural Sustainability Report

Omaha-based Green Plains Inc. (NASDAQ:GPRE) today released its inaugural sustainability report, outlining environmental, social and governance (ESG) priorities, progress and targets. The report details a number of significant goals, including a commitment to carbon neutrality in operational emissions by 2050. In addition, Green Plains has achieved its goal of increasing diversity on the Board of Directors and has completed a significant Board refreshment initiative.

“Sustainability has always been foundational to Green Plains,” said Todd Becker, president and chief executive officer. “Our first sustainability report demonstrates our continued commitment to being a good global citizen, highlighting our achievements and initiatives that expand on our ESG story.”

The report details the following actions and goals:
    50% carbon reduction by 2030 and carbon neutrality by 2050
    Expansion of community involvement initiatives  
    Board of Directors refreshment initiative to increase diversity in governance and enhance shareholder rights

Green Plains has also committed to enhancing safety protocols, improving energy and water usage, and expanding land stewardship initiatives.



Brady Revels Takes Home Nebraska Farm Bureau’s Excellence in Agriculture Award

Brady Revels of Valley was named the recipient of the 2021 Young Farmers and Ranchers Excellence in Agriculture award. The award was announced Dec. 7, at the “We Love our Members” luncheon during Nebraska Farm Bureau’s 104th Annual Meeting and Convention in Kearney, Neb.

Revels, is a Douglas County Farm Bureau member, was recognized for his ongoing involvement and commitment to agriculture. Candidates for the award are judged on their involvement in agriculture, leadership ability, and involvement and participation in Farm Bureau and other civic, service, and community organizations.

Revels grew up on his maternal grandfather’s diversified farming operation growing vegetables and raising cattle near Bushnell, Florida. His love for agriculture started at an early age. He was involved in 4-H and FFA and raised replacement dairy heifers, developing his own small herd of registered Brown Swiss dairy cattle. After college, he couldn’t go back to his family’s Florida farm, so he went to work for an animal pharmaceutical company, which led him to the Midwest where he met his wife, Katie. He then began a new career working with dairy farmers to help manage their feed portfolio. He currently is an account manager with Cargill Corn Milling. Katie grew up on a farm in Northeast Nebraska and is now a chiropractor in Valley.

Revels also works with an outside technology vendor who helps his customers collect, analyze, and use data in their operations. He manages the relationship between his customers and the vendor, provides support to other staff, and recently started working with the University of Nebraska-Lincoln to translate the data into information that can help farmers make more meaningful decisions on their operations.

As an active Douglas County Farm Bureau member, Ravels is working with Douglas County Extension and the Omaha Home for Boys on Ag Fest, a program that connects elementary students with the knowledge that their food originally starts on a farm. Douglas County Farm Bureau has sponsored this program for the past six years, and it has already reached approximately 10,000 third graders who have little to no knowledge of agriculture.

Revels will continue to grow his leadership with Farm Bureau and wants to inspire more young people to be a part of Nebraska Farm Bureau. He will also continue to work on policy development, advocating for agriculture, and supporting agricultural education.

Farm Bureau members between the ages of 18 and 35 can apply for the Young Farmers and Ranchers Excellence in Agriculture award. As the Nebraska winner, Revels will receive $500 and an all-expenses paid trip to the 2022 American Farm Bureau Annual Convention in Atlanta, Georgia in January to compete with other state winners at the national level.



Lance Atwater Takes Home Nebraska Farm Bureau’s Discussion Meet Competition

Adams/Webster County Farm Bureau member, Lance Atwater of Ayr is the winner of the 2021 Young Farmers and Ranchers (YF&R) Discussion Meet competition. The award was announced Dec. 7, at the “We Love Our Members” luncheon during Nebraska Farm Bureau’s (NEFB) 104th Annual Convention held Dec. 5-7 in Kearney.

Atwater received the top score of the contestants who advanced to the final round of the Discussion Meet contest. Rather than debating, contestants work to develop a solution to a problem being discussed, building on each other’s contributions. Competitors in the annual contest must be prepared to speak on several current agricultural related topics; the selected question is announced a short time prior to the contest round.

Atwater serves on the NEFB Board of Directors as the Youth At-Large representative. He grows yellow corn, popcorn, soybeans, and non-GMO white corn. Atwater lives on the family farm with his wife, Krystal, and son Ryker.  

Atwater competed with three other contestants, Sean Krebs of Clearwater, Erin Norman of Crawford, and Clay Patton of Lexington. Krebs is an Antelope County Farm Bureau member and a recent graduate of the University of Nebraska-Lincoln, majoring in Agriculture Engineering. He grows popcorn, field corn, and soybeans, and raises cow/calf pairs on his family farm. Norman is a Dawes County Farm Bureau member and serves on the YF&R Committee. She is a teacher at Chadron State College and is a registered dietician. Norman lives on the family ranch with her husband, Luke, and their five children, Ada, Ben, Claire, Axel, and Ethan. Patton is a Dawson County Farm Bureau member. He is the Market Anchor for the Rural Radio Network at KRVN, and his wife, Janell, is a vet tech in their community. They live on a small acreage where they raise hay and goats.

Farm Bureau members between the ages of 18 and 35 can participate in the Young Farmers and Ranchers Discussion Meet competition. As a Nebraska winner, Atwater will receive $500 and an all-expenses paid trip to the American Farm Bureau Annual Convention in Atlanta, Georgia in January to compete in the contest at the national level. For more information, visit www.nefb.org/yfr.



Nebraska Farm Bureau Names 2022 Leadership Academy Class

Eleven farmers, ranchers, and agribusiness professionals from across Nebraska have been selected for Nebraska Farm Bureau’s 2022 Leadership Academy. They will begin a year-long program starting Jan. 20-21 in Kearney.

“The goal of the Nebraska Farm Bureau Leadership Academy is to cultivate the talents and strengths of our members and connect their passion for agriculture to opportunities of service within the Farm Bureau organization. Great leaders have a clearly defined purpose, purpose fuels passion and work ethic. By developing leadership skills, academy members can develop their passions and positively impact their local communities and the state of Nebraska.” said Phil Erdman, facilitator of the 2022 Leadership Academy.

Erdman works with Audrey Schipporeit, Nebraska Farm Bureau’s director of generational engagement, to help facilitate the program. Erdman also serves as the vice president of membership for Nebraska Farm Bureau.

“We congratulate this group of diverse individuals and thank them for their willingness to step out of their comfort zone to learn more about how they can influence their community, state, and world for the better,” said Schipporeit.

The 2022 Nebraska Farm Bureau Leadership Academy members are:
Amy Musgrave, a member of Clay County Farm Bureau, lives in Ong. Born and raised in Nebraska, she also spent some years in Oklahoma and Missouri studying agriculture at land grant universities. She and her husband operate a diversified livestock operation. Amy currently serves as the President of Clay County Farm Bureau.

Robert Miller, a member of Boone County Farm Bureau, lives in Petersburg. Robert and his wife Donna, along their children Robbie and Lacie, reside on a ranch west of Petersburg where they raise a show herd of Nigerian Dwarf Dairy Goats. Robert is a Boone County Farm Bureau Board Member.

Scott Sorensen, a member of Hall County Farm Bureau, lives in Cairo. Born and raised in small-town Nebraska, he enjoys working with local producers through his agribusiness, focusing on seed/chemical solutions. Scott currently serves as a member of the Hall County Board of Commissioners.

Steven Fuxa, a member of Butler County Farm Bureau, lives in David City. A Lifelong resident of Butler County, he operates Railside Farms LLC, a diversified farm and livestock operation.

Dylan Vock, a member of Lancaster County Farm Bureau, lives in Lincoln. He grew up on a row-crop farm and a cow/calf operation in Nebraska City. Dylan currently works with cattle producers throughout the Midwest.

Cory Johnson, a member of Loup County Farm Bureau, lives in Burwell. He is a fourth-generation diversified farmer and livestock producer, and fifth-generation custom harvester. Cory currently serves as the President of Loup County Farm Bureau.

Cierra Fischer, a member of Polk County Farm Bureau, lives in Osceola. She was raised on her family farm growing up around poultry, cattle, horses, and swine. She currently assists with the management and operation of her family’s poultry broiler houses.

Jaden Melnick, a member of Adams/Webster County Farm Bureau, lives in Ayr. She grew up on a dairy farm in Northwest Iowa. She currently works in swine genetics and, along with her husband, raises registered goats.

Lisa Griess, a member of Clay County Farm Bureau, lives in Sutton. She has been involved in agricultural opportunities for many years and currently works at a community bank. Lisa serves as the Secretary/Treasurer of the Clay County Farm Bureau.

Jill England, a member of Hall County Farm Bureau, lives in Doniphan. She grew up on a family farm and feedlot near Pender. She is currently involved with her husband's family farm where they raise corn and soybeans.

Wilson Alber, a member of Adams/Webster County Farm Bureau, lives in Guide Rock. He owns and operates Windmill Livestock and works at a neighboring livestock operation.

Academy members will participate in sessions focused on leadership development, understanding the county, state, and national structure of Farm Bureau and its grassroots network, policy work on agricultural issues, and the importance of agricultural literacy. The group will also travel to the Capitols in Lincoln and Washington, D.C. to visit with elected officials and agency representatives.



Three-State Beef Conference Returns as In-Person Program

 The Three-State Beef Conference returns as an in-person program with sessions scheduled for Jan. 11-13, 2022, with locations in Iowa, Missouri and Nebraska. The Iowa session will take place Tuesday, Jan. 11, at the Warren Cultural Center Auditorium in Greenfield, with Missouri and Nebraska sessions scheduled for Jan. 12 and 13, respectively.

Iowa State University Extension and Outreach beef specialist Chris Clark said the program offers area beef producers the opportunity to visit with a forum of specialists focusing on improving profitability through implementation of some next-level management strategies for beef cow-calf operations. Topics include beef bull development and longevity, marketing and risk management options and strategies, and matching cows to your environment.

"As before, we have used evaluation results and suggestions from previous attendees to develop the program," Clark said. "This year’s topics and speakers will address selecting and developing both bulls and females that will remain in your herd for years to come as well as some strategies to help cow-calf producers implement risk management and marketing protection. I’m excited about our program this year. These are topics that should be of value to anyone in the cow-calf business."

Presentations include:
    Beef bull development and longevity — Carl Dahlen, associate professor, animal sciences, North Dakota State University.
    Marketing and risk management options and strategies for beef cattle producers — Elliott Dennis, assistant professor, agricultural economics, University of Nebraska.
    Do your cows fit your environment? — Kacie McCarthy, beef cow-calf specialist, University of Nebraska.

Registration will open at 5:30 p.m., with the program beginning at 6 p.m. The registration fee is $25 per person and includes the evening meal and copy of the proceedings. Preregistrations are appreciated by Jan. 7, to help with meal planning and reducing costs.

The conference brochure has agenda information and a registration form. Preregistrations for the Iowa site at Greenfield can be directed to the ISU Extension and Outreach Adair County office by calling 641-743-8412 or emailing krohrig@iastate.edu.

Prior to the conference in Greenfield, a Beef Quality Assurance meeting will be held beginning at 4 p.m. in the Green Room of the Warren Cultural Center. The BQA session is free, and producers are invited to attend either or both of the meetings. Registration for the BQA meeting can also be directed to ISU Extension and Outreach Adair County by calling 641-743-8412 or emailing krohrig@iastate.edu.    

Nebraska Meeting
January 13—Eastern Nebraska Research & Extension Center, 1071 County Road G, Ithaca
Space is limited; pre-registration & masks required.  
Contact Connor Biehler or Cheyenne Chromy
Nebraska Extension – Saunders County
Call 402-624-8030 or email cbiehler2@unl.edu



Benchmarks for Iowa Feedlot Cattle Detailed in New Publication

Benchmarking is best used to track cattle and financial performance within a feedlot, but can also be used to monitor trends within the industry. Although industry-wide benchmarking programs exist, the values reported may not be reflective of Iowa climate and input costs.

Realizing this, Iowa Beef Center specialists collaborated on summarizing closeout data from more than 171,000 head of yearling steers and heifers enrolled in the Iowa Feedlot Monitoring program for the years of 2017 through 2020. These results are reported in a new publication, “Benchmarking the Performance of Iowa Feedlot Cattle.”

Iowa State University extension beef specialist Beth Doran led the project.

“Averages are reported for each year and overall for the four-year time period for both steers and heifers,” she said.  “Also, performance and financial data were summarized for almost 99,000 head of cattle finished in four types of facilities – windbreaks, outdoor lots with shelter, open lot and confinement.”

The report demonstrates that cattle characteristics, facility type and extraneous factors, such as weather, commodity prices and marketing disruptions, greatly affect benchmarking values, Doran said.

“Those variabilities are why we encourage Iowa cattle producers to use benchmarking as a tool to monitor progress within their own operation over time,” Doran said. “It’s also important for them to be cautious in comparing their feedlot with other feedlots at a specified point in time.”

To learn more about the ISU Feedlot Monitoring Program, see information on the Iowa Beef Center website https://www.iowabeefcenter.org/feedlotmonitor.html.

For more information, contact Doran at doranb@iastate.edu or 712-737-4230, or your ISU Extension and Outreach beef specialist.



EPA Proposes Comprehensive Set of Biofuels Program Updates and Improvements

Today, to strengthen the role of the Renewable Fuel Standard (RFS) in advancing greater use of low-carbon renewable fuels, the Environmental Protection Agency (EPA) proposed a package of actions setting biofuels volumes for years 2022, 2021, and 2020, and introducing regulatory changes intended to enhance the program’s objectives. In addition, EPA is seeking public comment on a proposed decision to deny petitions to exempt small refineries from their obligations under the RFS on the grounds that petitioners failed to show that EPA has a basis under the Clean Air Act (CAA) and recent federal case law to approve them. Together, these actions reflect the Biden Administration’s commitment to reset and strengthen the RFS program following years of mismanagement by the previous administration and disruptions to the fuels market stemming from the COVID-19 pandemic.

“Despite multiple challenging dynamics affecting the RFS program in recent years, EPA remains committed to the growth of biofuels in America as a critical strategy to secure a clean, zero-carbon energy future,” said EPA Administrator Michael S. Regan. “This package of actions will enable us to get the RFS program back in growth mode by setting ambitious levels for 2022, and by reinforcing the foundation of the program so that it’s rooted in science and the law.”

For 2022, EPA is proposing the highest total volumes in history, putting the program on a stable trajectory that provides for significant growth. The proposed volumes for 2022 are over 3.5 billion gallons higher than the volume of renewable fuel used in 2020. The proposed volume of advanced biofuel for 2022 is over 1 billion gallons greater than the volume used in 2020. EPA is also proposing to add a 250-million-gallon “supplemental obligation” to the volumes proposed for 2022 and stating its intent to add another 250 million gallons in 2023. This would address the remand of the 2014-2016 annual rule by the DC Circuit Court of Appeals in Americans for Clean Energy v. EPA. Spreading this obligation over two years would provide the market time to respond to this supplemental obligation. The last Administration failed to act on the Agency’s outstanding obligation to address the court’s remand.

EPA is proposing 2021 volumes at the level that it projects the market will use by the end of the year. EPA is proposing to revise the 2020 standards to account for challenges the program and the market faced that year, including from the COVID-19 pandemic.

Proposed Volume Requirements for 2020-2022 (billion gallons)
Category                           2020      2021     2022
Cellulosic Biofuel              0.51      0.62      0.77  
Biomass-Based Diesel       2.43     2.43       2.76
Advanced Biofuel              4.63      5.20      5.77
Total Renewable Fuel       17.13    18.52    20.77
Supplemental Standard      n/a         n/a       0.25
*All values are ethanol-equivalent on an energy consult basis, except for BBD which is biodiesel-equivalent  

To promote efficiency and opportunity in producing biofuels, this action also proposes a regulatory framework to allow biointermediates to be included in the RFS program, while ensuring environmental and programmatic safeguards are in place. Biointermediates are feedstocks that have been partially converted at one facility but are then sent to a separate facility for final processing into an RFS-qualified biofuel.  Providing a way for producers to utilize biointermediates could reduce biofuel production costs in some cases, and potentially expand opportunities for more cost-effective biomass-based diesel, and advanced, and cellulosic biofuels.

Small Refinery Exemptions
Today’s proposed action denying 65 pending applications for small refinery exemptions (SREs) responds to the decision from the U.S. Court of Appeals for the Tenth Circuit in Renewable Fuels Association et al. v. EPA. This decision, issued in 2020, narrowed the situations in which EPA can grant SREs. EPA is sharing a proposed adjudication of pending SRE petitions that presents EPA’s approach in applying the direction from the Court. The proposed decision document articulates the Agency’s updated interpretation of its CAA statutory authority to grant SREs, and our analysis of the available data on RFS costs and market dynamics that compel the proposed denial.

Because today’s proposed SRE action is highly consequential to impacted parties, reflects an updated interpretation of the CAA, and is a change from previous EPA practice, we are implementing a public notice-and-comment process and seeking input from stakeholders, the public, and from individual petitioning refineries. We encourage all interested parties to share information, data, and legal interpretations.

USDA Actions
Simultaneous with EPA’s announcement today, the U.S. Department of Agriculture (USDA) is announcing $800 million to support biofuel producers and infrastructure.  This includes up to $700 million to provide economic relief to biofuel producers and restore renewable fuel markets affected by the pandemic. In the coming months, the Department will also make an additional $100 million available to increase significantly the sales and use of higher blends of bioethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.  Each agency’s actions align with President Biden’s commitment to promoting and advancing biofuels to help rural America and our nation’s farmers, and to honor the leadership role American agriculture plays in our fight against climate change.



 Fischer: EPA’s RVOs Are a Betrayal of Rural America
        
U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement after the EPA announced Renewable Volume Obligations (RVOs) for 2020 retroactively, 2021, and 2022:

“The Biden administration claims to care about addressing climate change but is giving big oil a huge break at the expense of the farmers in the Heartland who produce cleaner fuel. That doesn’t add up. Retroactively lowering the 2020 RVOs and setting low 2021 RVOs is a betrayal of the hardworking men and women of rural America.

“To pile on, the administration is trying to conceal this bad news by taking credit for biofuels COVID-19 assistance I fought for that Congress passed and President Trump approved in 2020. The administration held this assistance back for three extra months and is releasing it now to distract Americans from its actions. Further, it appears the administration has intentionally delayed denying 65 small refinery exemptions until today, instead of letting the biofuel industry know sooner and providing certainty.

“The administration has broken its promises. I will continue to work with my colleagues on both sides of the aisle to fight for fairness and certainty for our ethanol producers.”

During the 2020 presidential campaign, then candidate Joe Biden said: “The Renewable Fuel Standard marks our bond with our farmers and our commitment to a thriving rural economy.”



Ricketts: EPA’s Actions Undercut Ethanol Producers and Farm Families

Today, Governor Pete Ricketts issued a statement following news that the Environmental Protection Agency (EPA) has proposed to retroactively reduce the Renewable Volume Obligation (RVO) for 2020.  The EPA also announced 2021 and 2022 RVOs.

“President Biden claims to be committed to cleaner air, but his actions show that he’s simply playing favorites with his energy policies,” said Gov. Ricketts.  “He needs to stop the hypocrisy and support cleaner burning, renewable fuels produced in America’s Heartland.  The EPA’s blatant disregard for statutory RVO levels further undermines the Biden-Harris Administration’s credibility with rural America.  By dragging its feet on RVOs, the EPA has caused uncertainty in the biofuels industry.  Now, it has undercut ethanol producers and farmers by slashing 2020 RVOs after the fact and cutting 2021 RVO targets.  Nebraska’s biofuel producers and farm families deserve better from their federal government.”



Growth Energy: EPA Proposal a Mixed Bag for Biofuels Industry

Today, Growth Energy CEO Emily Skor offered a mixed review of the U.S. Environmental Protection Agency’s (EPA) proposed rulemaking regarding domestic biofuels blending requirements under the Renewable Fuel Standard (RFS). The agency’s proposed Renewable Volume Obligations (RVOs) would undercut blending requirements for renewable, low-carbon biofuel in 2021, and would retroactively waive 2.96 billion gallons from 2020 RVOs set almost two years ago. Under the proposal, 2022 volumes return to statutory levels and the administration pledges to deny all improper small refinery exemptions (SREs).

“EPA’s projection of strong biofuel blending requirements in 2022, commitment to halt illegal refinery exemptions, and long-awaited progress toward complying with a 2017 court order on lost gallons represent a welcome step forward. These forward-looking plans underscore the critical role biofuels play in mitigating climate change and lowering prices at the pump. However, we are extremely disappointed EPA has proposed rolling back requirements for 2020 and lowering volumes for 2021.  
 
“Retroactive cuts to 2020 blending requirements impact the entire fuel supply chain, including the farmers, producers, blenders, retailers, and responsible refiners who based business decisions on final requirements in place for some time.  

“This unprecedented move not only exceeds EPA’s legal authority under the RFS, it fails to recognize the law’s built-in mechanism that adjusts requirements when fuel demand differs from original projections. At face value, the EPA’s plan for 2020 gallons serves as a giveaway to petroleum companies at the expense of rural families and future investment in low-carbon energy.  

“On the campaign trail, President Biden committed to strengthening the rural economy and addressing climate change with a strong RFS and we hope to see the president’s promises fully reflected in the final rule. We look forward to engaging with the EPA during the comment period to get the RFS fully back on track.
 
“The Biden Administration simply cannot meet its climate goals while retroactively rolling back low-carbon biofuel blending requirements to help oil refiners.”
 
The agency’s draft rule would lower conventional ethanol volume to 12.5 billion gallons for 2020, advanced biofuel at 4.63 billion, and cellulosic at 510 million. In addition, it would set conventional ethanol at 13.32 billion gallons in 2021 and 15 billion gallons in 2022, while advanced biofuels would be set at 5.2 billion gallons in 2021 and 7.7 billion gallons in 2022, including 620 million gallons of cellulosic biofuel in 2021 and 770 million gallons of cellulosic biofuel in 2022. Biodiesel blending requirements. The proposal also adds a supplemental 250 million gallons in 2022 and 250 million gallons in 2023, deny the 65 pending small refinery exemption requests before the agency, and provide important guidance to limit the abuse of small refinery exemptions in the future.   



NBB Welcomes Overdue Proposed RFS Volumes

Today, the National Biodiesel Board welcomed the Environmental Protection Agency's proposed Renewable Fuel Standard rule and the USDA's announcement of COVID relief for biofuel producers and funds for the Higher Blend Infrastructure Incentive Program. EPA's proposal would increase 2022 advanced volumes and restore improperly waived volumes from prior years.

Kurt Kovarik, NBB's Vice President of Federal Affairs, stated, "During the past two years' economic challenges, our industry worked hard to meet growing U.S. demand for cleaner, better fuels. We are confident that we can continue to grow and innovate to meet additional market needs. EPA's rule provides some growth for advanced biofuels in 2022 and we hope puts an end to the demand destruction that resulted from unwarranted small refinery exemptions. We look forward to working with the agency to getting the RFS back on track. And we greatly appreciate the economic relief and incentives for infrastructure that USDA is announcing.

"The long delay in setting 2021 volumes is a missed opportunity," Kovarik continued. "Moreover, EPA is setting a bad precedent by recalculating the 2020 obligations. The retroactive lowering of volumes creates uncertainty about future growth."

In 2020, the U.S. biodiesel and renewable diesel market grew to 3 billion gallons -- its highest volume ever -- and generated more than 4.5 billion advanced biofuel credits (Renewable Identification Numbers or RINs). Through the first ten months of 2021, the industry maintained a sustainable production rate comparable to 2020. EPA is proposing sustainable growth opportunities consistent with industry expectations along with a statutorily required increase of 500 million gallons in the overall advanced biofuel category.



ASA Pleased by SRE Denials, Optimistic for Brighter RVO Future

The much-anticipated Environmental Protection Agency (EPA) announcement on Renewable Volume Obligations (RVOs) brings with it a mixed bag of reactions ranging from thankful to slightly frustrated. EPA’s volumes for 2020 and 2021 are down, but the future looks bright with a 2022 volume that’s the highest ever announced by the agency.

In another twist, the agency’s interpretation of the Supreme Court’s guidance on small refinery exemptions (SREs) has resulted in the agency announcing a proposed rule recommending it deny all 65 pending requests. EPA will open a 30-day public comment period to make a final determination on those denials and has shared its intent on evaluating how to reconcile future exemption requests.

Kevin Scott, soybean farmer from Valley Springs, South Dakota, and American Soybean Association (ASA) president said, “We are appreciative that EPA has released its decision on these numbers that are critical to implementation of the Renewable Fuel Standard (RFS), but of course we would have liked to have seen higher retroactive numbers for 2020 and 2021. And, we would like to have the 2023 volume announcement that was due the end of November. We are heartened, however, by the 2022 RVO and hope 2023 remains on that upward trajectory.”

Another positive for the industry is USDA’s corresponding announcement of $800-million in pandemic assistance for the biofuels sector, an answer that had been pending for some time.

ASA has vocally supported both increased annual blending requirements and the denial of waivers, or SREs, which erode the integrity of the RFS. Biodiesel is a key market for soy that uses soy oil at the same time soy meal can be used for protein-packed animal feed, and it is a clean-burning fuel alternative that likewise demonstrates soy growers’ commitment to using their U.S.-grown beans in more places more sustainably.



AFBF Welcomes EPA Action on Biofuels

American Farm Bureau Federation President Zippy Duvall welcomes EPA’s announcement regarding the Renewable Fuel Standard (RFS).

“The American Farm Bureau Federation appreciates the administration’s recognition that renewable fuels produced by America’s farmers have an important role in America’s future.

“President Biden promised his administration would ‘honor the critical role the renewable fuel industry plays in supporting the rural economy and the leadership role American agriculture will play in our fight against climate change.’

“Today’s EPA announcement upholds the integrity of the RFS by setting a positive target for 2022 Renewable Volume Obligations (RVOs) of 20.77 billion gallons of blending and saying no to all 65 pending small refinery exemptions, which have undermined renewable fuel production in the past. We’re also pleased USDA will finally be allocating $700 million in pandemic assistance for losses related to biofuel production.

“The use of ethanol and biodiesel have reduced greenhouse gas emissions the equivalent of taking 18 million cars off the road per year. Support for biofuels simply makes sense. We look forward to working with EPA and USDA as they carry out today’s announcements and in future efforts to support biofuels and their benefits for all Americans.”



ACE Reaction to Several Long-Awaited RFS Announcements

Today, the U.S. Environmental Protection Agency (EPA) issued a package of actions, including proposed Renewable Volume Obligations (RVOs) for the 2021 and 2022 Renewable Fuel Standard (RFS) compliance years and retrospective volumes for 2020, a plan to implement the 500 million gallons in remanded volumes by the DC Circuit Court in 2017, as well as how the Agency plans to move forward on RFS small refinery exemption (SRE) waiver requests.

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty issued the following reaction to EPA’s package of proposals:

“Despite being one of the most important tools available to replace petroleum with low carbon alternatives such as ethanol, today’s proposed rule misses an important opportunity to meet the Biden Administration’s decarbonization goals for the transportation sector. Instead of insisting on renewable fuel volumes required under the law, EPA’s novel approach to its authority results in the foot being taken off the decarbonization accelerator to let petroleum companies determine how much ethanol they wanted to blend in 2020 and 2021. This is not the way to drive low carbon transportation fuel alternatives quickly.

“Further, while we appreciate that EPA is proposing to return corn ethanol blending levels to 15 billion gallons in 2022 as well as proposing a path forward to restore the 500 million gallons of remanded volume as ordered by the DC Circuit Court in 2017, and rein-in the abusive use of SRE waivers pioneered under the last Administration, the proposal falls short of deploying the RFS in a manner that fully takes advantage of expanding the use of low carbon ethanol, which according to the latest lifecycle science reduces greenhouse gas emissions on average by approximately 50 percent compared to gasoline.

“The RFS is an exceptionally well-written law with provisions written into it to deal with even the devastating volume loss experienced in 2020 and 2021. Each year’s volume is converted to a percentage, so renewable fuel volumes automatically rise or fall based on actual fuel sales. By reducing the 2020 percentage and 2021 volumes EPA is essentially shifting more of the pandemic burden from refiners to ethanol producers and farmers, and allowing gallons already sold to be counted against 2022 volumes, extending the pain into another year. EPA is missing the mark on using the RFS to the fullest extent.

“Our comments on this rule will reflect on EPA’s novel interpretations of its waiver authority and will encourage EPA to take a second look at this proposal to better support low carbon biofuels and take actions to help grow demand for biofuels that benefit rural America as well as the Administration’s decarbonization goals.”



ACE Thanks USDA for Plan to Distribute Pandemic Assistance to Biofuel Producers, Additional Biofuels Infrastructure Funding

The U.S. Department of Agriculture (USDA) provided more details surrounding the initiative announced in June, which designates $700 million in unspent pandemic relief for biofuel producers. USDA said it will announce the official application window for this program within the coming week. Additionally, USDA states that in the coming months, the Department will make $100 million available to support biofuel infrastructure. American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty issued the statement below following the announcement:

“While we sought for a higher level of funding to offset the damage done to ethanol producers from the unprecedented global pandemic, we’re appreciative of USDA Secretary Vilsack for following through and delivering on a process for biofuel producers to receive assistance and for the additional support for biofuel infrastructure.

“These limited funds will not cover the totality of economic loss suffered by ethanol producers from the pandemic, which reinforces our belief that USDA should not allow a disproportionate amount of funds to go to large conglomerates at the expense of farmer-owned and smaller ethanol producers and exacerbate consolidation in the industry.

“We look forward to informing our members about how to apply for assistance and helping them engage in the process to finally get some much-needed help as they continue to recover from the severe market disruption.”



RFA Thanks USDA for Rolling Out COVID-19 Relief Package, Additional Infrastructure Funds

The Renewable Fuels Association today thanked the U.S. Department of Agriculture for its announcement today of $700 million to provide COVID-19 pandemic aid for our nation’s biofuel producers. Originally announced in June, the aid package represents direct payments available for biofuel producers who faced unexpected market losses due to the pandemic, and USDA states it will announce the official application window for this program within the coming week. In addition, USDA announced $100 million in funds to support biofuel infrastructure.

“Ethanol producers are still struggling to recover from COVID-related market losses after what has been the most difficult and trying time in the industry’s history,” said RFA President and CEO Geoff Cooper. “At the peak of the pandemic, more than half of our nation’s ethanol capacity was idled. To this day, many plants remain offline or are operating at reduced output rates and the pandemic has cost the industry well over $5 billion in lost revenue. We are grateful to USDA Sec. Vilsack and the Biden administration for finalizing this relief package to help our industry recover, as well as the additional infrastructure funding.”

When it comes to COVID-19 relief and the infrastructure program, the Renewable Fuels Association stands ready to assist program beneficiaries to take all the steps needed to receive the aid they need.



Exports of U.S. Ethanol and DDGS Brighten in October
Ann Lewis, RFA Senior Analyst
    
U.S. ethanol exports in October jumped 38% to 104.74 million gallons (mg), bolstered by the largest volume of undenatured fuel ethanol exports since March. Canada remained the top destination for U.S. ethanol exports for the seventh consecutive month with imports of 37.3 mg, up 3%. This marks the largest monthly shipments to cross the border in over four years and accounts for more than a third of the October U.S. ethanol export market. India imported 14.0 mg, up from zero in September and representing a six-month high. Similarly, after being absent from the market in September, the Netherlands purchased the largest monthly volume of U.S. ethanol in a year (13.9 mg). Outside of lower shipments to South Korea (down 62% to 6.8 mg), the bulk of our larger customers boosted volumes: United Kingdom (6.5 mg, +58%), Colombia (5.4 mg, +316%), Mexico (5.4 mg, +12% to a 14-month high), Brazil (5.3 mg)—the first significant volumes since March, Nigeria (4.8 mg, up from zero), and the Philippines (2.7 mg, +43%). Shipments over the first ten months of the year were 976.9 mg, down 11% from the same period in 2020.

The U.S. logged ethanol imports for the fifth consecutive month, with 10.5 mg of undenatured ethanol arriving from Brazil in October. Year-to-date U.S. ethanol imports total 58.4 mg.
 
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—rebounded from September’s slump by 24% to 1.06 million metric tons (mt). Exports to Mexico, our top customer for more than a year, increased 7% to 171,325 mt (representing 16% of all shipments in October). U.S. DDGS sales to Vietnam beefed up by 26% to 146,844 mt, exports to Turkey more than tripled (up 266% to 104,369 mt), and Indonesia imported 82,185 mt (up 20%) for a nine-month high. However, U.S. DDGS exports moderated to Canada (83,161 mt, down 11%) and South Korea (73,206 mt, down 32%). Substantial volumes also landed in China (61,528 mt, +23% to the largest volume since Feb. 2017), Japan (49,144 mt, +272%), Thailand (43,022 mt, +165%), Colombia (34,132, +217%), Spain (28,412 mt, +47%), and Taiwan (24,223 mt, +69% to a 14-month high). Total DDGS exports through October were 8.59 million mt, which is 5% ahead of last year at this time.



EIA expects short-term crude oil prices to remain lower than the highs of 2021

The U.S. Energy Information Administration (EIA) forecasts that global oil production will increase more quickly than demand in 2022, pushing crude oil and petroleum product prices lower than in late 2021. Brent crude oil prices averaged $81 per barrel in November, but they closed the month at $70 per barrel.

In its December Short-Term Energy Outlook (STEO), EIA forecast Brent crude oil prices will average $70 per barrel in 2022.

Responses to the new COVID-19 Omicron variant could lead to a decline in demand for petroleum products in the near term.

“This is a very complicated environment for the entire energy sector,” said EIA Acting Administrator Steve Nalley. “Our forecasts for petroleum and other energy prices, consumption, and production could change significantly as we learn more about how responses to the Omicron variant could affect oil demand and the broader economy.”

The STEO forecast also reports that the release of crude oil reserves by the United States and other countries may have contributed to the decrease in Brent crude oil prices in November, and that decrease could contribute to lower prices in 2022.

Other key takeaways from the latest STEO:

    U.S. gasoline prices averaged $3.39 per gallon (gal) in November, the highest monthly average since September 2014. EIA expects retail gasoline prices to average $3.13/gal in December and to average $2.88/gal in 2022. “Our forecast for increased crude oil production suggests some decrease in prices at the pump over the next year,” Nalley said.

    EIA forecasts U.S. coal production to reach nearly 621 million short tons in 2022, a 16% increase from 2020. Even with increased production, EIA expects U.S. coal inventories in the electric power sector to decrease by more than 50% from 2020 to 2022. “Demand for coal has grown significantly in the United States and globally this year as coal has become more competitive with natural gas for electricity generation,” Nalley said.



New data highlights strong yield results despite extreme weather challenges

Golden Harvest unveiled new data today from 2021 field trials, highlighting the brand’s leading traits and genetics when compared directly against competitors. The 2021 growing season brought extreme weather across the Corn Belt, with severe drought in the West and heavy rains in the East. Despite these challenges, Golden Harvest® corn and soybean products outperformed competitors in many Midwestern fields1, a testament to the Golden Harvest commitment to deliver solutions for each farmer’s unique agronomic challenges. As farmers begin 2022 seed plans, they can have confidence in the expanded 2022 Golden Harvest portfolio as well as the proven performance of corn hybrids and soybean varieties from this past season.

Game-changing corn performance
The game-changing Golden Harvest corn hybrids feature superior traits and strong genetics to deliver a broadly adapted corn portfolio that performs in diverse weather conditions. Results from recent trials1 show why farmers can have confidence in the Golden Harvest corn portfolio. For example:
    Golden Harvest corn G08R52-3220 E-Z Refuge® brand outyielded Pioneer® P0688Q™ by 2.8 bu/A in 44 comparisons.
    Golden Harvest corn G10D21-5332 E-Z Refuge brand outyielded DEKALB® DKC58-64 by 4.4 bu/A in 21 comparisons.
    Golden Harvest corn G10L16-5332A E-Z Refuge brand outyielded DEKALB® DKC59-81 by 6.5 bu/A in 118 comparisons.
    Golden Harvest corn G15J91-3220 E-Z Refuge brand outyielded DEKALB® DKC65-84 by 9.3 bu/A in 19 comparisons.

“As 2021 corn yield trials prove, Golden Harvest offers elite corn genetics and cutting-edge trait packages that outperform the competition when it comes to yield,” said Andy Ackley, Golden Harvest corn product manager. “By listening to farmers and providing strong corn hybrid seed options, we deliver custom seed solutions that farmers can count on when it counts most ― during harvest.”

Strong genetics and broad trait choice deliver maximized soybean yield potential
2021 trials1 showed that not only do Golden Harvest soybean seeds provide the industry’s broadest choice of soybean herbicide tolerance trait platforms, but they also deliver top yield performance. The Golden Harvest soybean portfolio beat key competitors across the Midwest, including:
    Golden Harvest soybean GH2292E3 brand outyielded Pioneer® P22T18E™ by 4.2 bu/A in 24 comparisons.
    Golden Harvest soybean GH2922E3 brand outyielded Asgrow® AG28XF1 by 3.1 bu/A in 27 comparisons.
    Golden Harvest soybean GH2722XF brand outyielded Asgrow® AG27XF2 by 2.4 bu/A in 15 comparisons.
    Golden Harvest soybean GH4222XF brand outyielded Asgrow® AG44XF1 by 3.0 bu/A in 9 comparisons.

“We’re proud to offer farmers soybean varieties with proven performance in addition to a wide choice of trait platforms,” said Stephanie Porter, Golden Harvest soybean product manager. “More choice means farmers have more ways to manage risk and diversify their operations. And we will offer farmers even more choice in 2022 ― this time with our genetics ― as we launch our Gold Series soybeans with elite genetics from Syngenta Seeds.”

2022 Golden Harvest new corn and soybean seed
To expand upon its broadly adapted and high-performing portfolio, Golden Harvest released 19 new corn hybrids in addition to 39 new soybean varieties for 2022 planting.

Backed by the speed, power and precision of Syngenta Seeds research and development, the 19 new Golden Harvest corn hybrids range in relative maturity from 90 to 117 days. Several new hybrids include Agrisure® trait options to protect genetic yield potential, and the expansion also includes five new Enogen® corn hybrids.

Also available for 2022 planting will be the first-ever Golden Harvest Gold Series, a line of soybeans that feature elite genetics and agronomic traits in high-demand trait platforms, including Enlist E3® soybeans and XtendFlex® soybeans. The 34 new Gold Series varieties range in relative maturity from 0.09 to 5.7. In addition to the 34 Gold Series soybean products, Golden Harvest will also offer five new Enlist E3 soybean varieties.