Wednesday January 12 USDA Reports + Ag News

 NEBRASKA 2021 ANNUAL CROP PRODUCTION SUMMARY
 
Corn for grain production in Nebraska based on year-end surveys is estimated at 1.85 billion bushels, up 4% from 2020, according to the USDA's National Agricultural Statistics Service. Yield of 194 bushels per acre is up 14 bushels from last year. Farmers harvested 9.56 million acres of corn for grain, down 3% from 2020. Corn for silage production is 5.07 million tons, up 3% from last year. Silage yield of 19.5 tons per acre is up 1 ton from last year. Corn for silage harvested acreage of 260,000 acres is unchanged from last year. Corn acreage planted for all purposes is 9.90 million acres, down 3% from last year.  
 
Soybean production for 2021 totaled 351 million bushels, up 17% from 2020. Yield, at  63.0 bushels per acre, is up 5.0 bushels from a year earlier. Area for harvest, at 5.57 million acres, is up 8% from 2020. Planted acreage totaled 5.60 million acres, up 8% from last year.
 
Sorghum for grain production in 2021 is estimated at 19.8 million bushels, up 45% from 2020. Yield, at 86.0 bushels per acre, is down 5.0 bushels from a year earlier. Area harvested for grain, at 230,000 acres, is up 53% from 2020. Sorghum for silage production is 450,000 tons, up 150% from last year. Silage yield of 14.5 tons per acre is up 2.5 tons from last year. Sorghum for silage harvested acreage of 31,000 acres is up 16,000 acres from last year. Sorghum acreage planted for all purposes is 320,000 acres, up 125,000 acres from last year.  
 
Alfalfa hay production, at 3.73 million tons, is up 14% from a year earlier. The average yield, at 4.10 tons per acre, is up 0.30 ton per acre from 2020. Area harvested, at 910,000 acres, is up 6% from 2020. Alfalfa haylage and greenchop production, at 105,000 tons, is down 55% from last year. Average yield, at 4.20 tons per acre, is down 2.40 tons per acre from last year. Area harvested, at 25,000 acres, is down 10,000 acres from last year. Seedings of alfalfa during 2021 totaled 90,000 acres, down 10,000 acres from a year earlier.  
 
All other hay production, at 2.56 million tons, is down 18% from last year. The average yield, at 1.55 tons per acre, is down 0.10 ton per acre from last year. Area harvested, at 1.65 million acres, is down 12% from 2020. All other haylage and greenchop production, at 220,000 tons, is up 80% from last year. Average yield, at 8.80 tons per acre, is up 2.70 tons per acre from last year. Area harvested, at 25,000 acres, is up 5,000 acres from last year.  
 
Proso millet production in 2021 is estimated at 3.84 million bushels, up 28% from last year's production. Yield, at 24.0 bushels per acre, is unchanged from a year earlier. Area harvested for grain, at 160,000 acres, is up 28% from 2020. Area planted, at 165,000 acres, is up 27% from last year.
 
Oil sunflower production in 2021 is 28.1 million pounds, down 32% from last year. Yield, at 850 pounds per acre, is down 200 pounds from a year earlier. Area harvested, at 33,000 acres, is down 15% from 2020. Area planted, at 35,000 acres, is down 13% from last year. Non-oil sunflower production of 6.50 million pounds is down 51% from last year. Yield, at  1,000 pounds per acre, is down 470 pounds from a year earlier. Area harvested, at 6,500 acres, is down 2,500 acres from 2020. Area planted, at 6,500 acres, is down 35% from last year.  
 
Sugarbeet production is estimated at 1.40 million tons, down 1% from last year. Yield is estimated at 31.9 tons per acre, up 0.9 ton from the previous year. Acres harvested are estimated at 43,800 acres, down 4% from the previous year. Area planted, at 44,400 acres, is down 1,800 acres from last year.
 
Dry edible bean production of 2.78 million cwt is down 23% from a year ago. Yield, at  2,440 pounds per acre, is up 180 pounds from a year earlier. Area harvested, at 114,000 acres, is down 28% from 2020. Area planted, at 120,000 acres, is down 27% from last year. Beginning in 2019, chickpeas are excluded from the dry edible bean estimates.  
 
Dry edible pea production is estimated at 354,000 cwt, down 2% from 2020. Yield is estimated at 1,310 pounds per acre, up 180 pounds from last year. Acres harvested are estimated at 27,000, down 16% from a year ago. Total acreage planted is 29,000 acres, down 19% from last year.
 
Potato production is 9.17 million cwt, down slightly from 2020. Yield, at 485 cwt per acre, is down 5 cwt from a year earlier. Area harvested, at 18,900 acres, is up 100 acres from 2020. Area planted, at 19,000 acres, is unchanged from last year.
 
Principal crop area planted totaled 19.8 million acres, up slightly from 2020. Area harvested, at 19.5 million acres, is down slightly from last year. Nebraska principal crop acres include corn, sorghum, oats, rye, winter wheat, soybeans, sunflower, dry edible beans, potatoes, proso millet, sugarbeets, and all hay. Double cropped acres and unharvested small grains planted as cover crops are also included.



IOWA CROP PRODUCTION TOTALS

Corn  for  grain  production  in  Iowa  for  2021  was  estimated  at  2.55 billion  bushels,  according  to  the  USDA,  National Agricultural  Statistics  Service  -  Crop  Production  2021  Summary.  Current  year  production  was  up  12 percent  from  the previous year's 2.28 billion bushels. Iowa's corn for grain yield was estimated at 205.0 bushels per acre, setting a new state record.  Area  harvested  for  grain  was  estimated  at  12.5 million  acres,  450,000 acres  below  2020.  Corn  planted  for  all purposes in 2021 was estimated at 12.9 million acres.
 
Corn for silage production was estimated at 7.14 million tons, up 34 percent from 2020. The silage yield estimate of 21.0 tons per acre was up 0.5 ton per acre from 2020. Producers harvested 340,000 acres of corn for silage, up 31  percent from 2020.  
 
Soybean production  was  estimated  at  622 million bushels in 2021.  This  was  up  23 percent  from last year's  506 million bushels.  The  Iowa  soybean  crop  yielded  62.0  bushels  per  acre  in  2021.  The  harvested  acreage  of  10.0  million  was  up 660,000 acres from 2020. Soybean planted acreage, at 10.1 million, was up 650,000 acres from 2020.    
 
All hay production for the state was estimated at 4.13 million tons, up 12 percent from the 3.70 million tons produced in 2020. Producers averaged 3.28 tons per acre, up 0.09 ton per acre from 2020. All hay harvested acres were estimated at 1.26 million acres, up 100,000 acres from 2020.
 
Alfalfa and alfalfa mixtures for hay production was estimated at 3.19 million tons, up 10 percent from 2020. Producers averaged 3.50 tons per acre, unchanged from 2020. Harvested acres were up 80,000 from last year, to 910,000 acres. Iowa producers seeded 65,000 acres of alfalfa and alfalfa mixtures in 2021, down 48 percent from 2020.
 
Other hay production was estimated at 945,000 tons, up 19 percent from 2020. Producers averaged 2.70 tons per acre, up 0.30 ton from the 2020 yield. Harvested acres of other hay, at 350,000, were up 20,000 acres from 2020.



Crop Production 2021 Summary

Corn for grain production in 2021 was estimated at 15.1 billion bushels, up 7 percent from the 2020 estimate. The average yield in the United States was estimated at a record high 177.0 bushels per acre, 5.6 bushels above the 2020 yield of 171.4 bushels per acre. Area harvested for grain was estimated at 85.4 million acres, up 4 percent from the 2020 estimate.

Soybean production in 2021 totaled a record 4.44 billion bushels, up 5 percent from 2020. The average yield per acre was estimated at 51.4 bushels, up 0.4 bushel from 2020. Harvested area was up 5 percent from 2020 to 86.3 million acres.

Sorghum: Grain production in 2021 was estimated at 448 million bushels, up 20 percent from the 2020 total. Planted area for 2021 was estimated at 7.31 million acres, up 24 percent from the previous year. Area harvested for grain, at 6.49 million acres, was up 27 percent from 2020. Grain yield was estimated at 69.0 bushels per acre, down 4.2 bushels from 2020.

All cotton production is estimated at 17.6 million 480-pound bales, up 21 percent from 2020. The United States yield is estimated at 849 pounds per acre, up 2 pounds from last year. Harvested area, at 9.97 million acres, is up 20 percent from last year.



NEBRASKA DECEMBER 1, 2021 GRAIN AND HAY STOCKS
 
Nebraska corn stocks in all positions on December 1, 2021 totaled 1.46 billion bushels, up 11% from 2020, according to the USDA's National Agricultural Statistics Service. Of the total, 930 million bushels are stored on farms, up 15% from a year ago. Off-farm stocks, at 529 million bushels, are up 5% from last year.  
 
Soybeans stored in all positions totaled 225 million bushels, up 9% from last year. On-farm stocks of 67.0 million bushels are up 10% from a year ago, while off-farm stocks, at 158 million bushels, are up 9% from 2020.  
 
Wheat stored in all positions totaled 36.0 million bushels, down 24% from a year ago. On-farm stocks of 1.50 million bushels are down 25% from 2020, and off-farm stocks of 34.5 million bushels are down 24% from last year.  
 
Sorghum stored in all positions totaled 14.0 million bushels, up 93% from last year. On-farm stocks of 1.25 million bushels are up 79% and off farm holdings of 12.8 million bushels are up 94% from last year.
 
Oats stored in all positions totaled 1.06 million bushels, down 20% from last year. On-farm oats totaled 580,000 bushels, up 9% from 2020, and off-farm stocks totaled 479,000 bushels, down 39% from a year ago.
 
Barley stored off-farm totaled 149,000 bushels, down 27% from last year.
 
Hay stocks on Nebraska farms totaled 4.65 million tons, up 11% from last year.
 
Grain storage capacity in Nebraska totaled 2.19 billion bushels, unchanged from December 1, 2020. Total grain storage capacity is comprised of 1.20 billion bushels of on-farm storage, unchanged from last year, and 990 million bushels of off-farm storage, unchanged from last year.



IOWA GRAIN STOCKS

Corn stored in all positions in Iowa on December 1, 2021, totaled 2.08 billion bushels, up 11 percent from December 1, 2020,  according  to  the  latest  USDA,  National  Agricultural  Statistics  Service  –  Grain  Stocks  report.  Of  the  total  stocks, 60 percent were stored on-farm. The September–November indicated disappearance totaled 725 million bushels, 7 percent below the 780 million bushels from the same quarter the previous year.  
 
Soybeans stored in all positions in Iowa on December 1, 2021, totaled 532 million bushels, up 31 percent from December 1, 2020.  Of  the  total  stocks,  42 percent  were  stored  on-farm.  Indicated  disappearance  for  September–November  2021  was 131 million bushels, 35 percent below the 202 million bushels from the same quarter the previous year.  
 
Oats stored on-farm in Iowa on December 1, 2021, totaled 1.35 million bushels, up 4 percent from December 1, 2020.

Iowa  on-farm  storage  capacity  on  December  1,  2021,  was  2.05 billion  bushels,  unchanged  from  December 1,  2020, according to the latest USDA, National Agricultural Statistics Service  - Grain Stocks report. Iowa's 840 off-farm storage facilities had a storage capacity of 1.52 billion bushels, unchanged from the previous year. As of December 1, 2021, Iowa had a total of 3.57 billion bushels of storage capacity.



Corn Stocks Up 3 Percent from December 2020
Soybean Stocks Up 7 Percent
All Wheat Stocks Down 18 Percent

Corn stored in all positions on December 1, 2021 totaled 11.6 billion bushels, up 3 percent from December 1, 2020. Of the total stocks, 7.23 billion bushels are stored on farms, up 3 percent from a year earlier. Off-farm stocks, at 4.41 billion bushels, are up 4 percent from a year ago. The September - November 2021 indicated disappearance is 4.70 billion bushels, compared with 4.74 billion bushels during the same period last year.

Soybeans stored in all positions on December 1, 2021 totaled 3.15 billion bushels, up 7 percent from December 1, 2020. Soybean stocks stored on farms totaled 1.52 billion bushels, up 16 percent from a year ago. Off-farm stocks, at 1.63 billion bushels, are down 1 percent from last December. Indicated disappearance for September - November 2021 totaled 1.54 billion bushels, down 14 percent from the same period a year earlier.

All wheat stored in all positions on December 1, 2021 totaled 1.39 billion bushels, down 18 percent from a year ago. On-farm stocks are estimated at 273 million bushels, down 43 percent from last December. Off-farm stocks, at 1.12 billion bushels, are down 8 percent from a year ago. The September - November 2021 indicated disappearance is 384 million bushels, 16 percent below the same period a year earlier.



NEBRASKA WINTER WHEAT SEEDINGS
 
Winter wheat seeded area for 2022 is estimated at 930,000 acres, up from last year's seeded area of 920,000 acres, according to the USDA's National Agricultural Statistics Service.

US Winter Wheat Planted Acres Up 2 Percent
Winter wheat seeded area for 2022 is expected to total 34.4 million acres, up 2 percent from 2021. Approximate class acreage breakdowns are: Hard Red Winter, 23.8 million; Soft Red Winter, 7.07 million; and White Winter, 3.56 million.

Winter wheat: Planted area for harvest in 2022 is estimated at 34.4 million acres, up 2 percent from 2021 and up 13 percent from 2020. Seeding of the 2022 acreage was underway in early-September and began the month ahead of the 5-year average pace. Throughout the much of the season, planting progressed on pace with the 5-year average and reached 96 percent complete by November 21. Emergence was near or lagged slightly behind the 5-year average pace for most of the season.

Hard Red Winter (HRW) wheat seeded area is expected to total 23.8 million acres, up 1 percent from 2021. Planted acreage is up from last year across most of the growing region. The largest increases in planted acreage are estimated in Kansas and Texas, while the largest decreases are estimated in Colorado and New Mexico.



CVA HOSTS WINTER GRAIN MEETINGS

Central Valley Ag Winter Grain Meetings begin today! Join the CVA Grain Team for a Market Outlook Discussion. We’ll address some key questions for 2022, including:
  - What price potential is reasonable for old crop bushels?
  - Input prices are up – how does this impact my 2022 marketing playbook?
  - What strategies are appropriate in the current price environment?

Meeting Dates:
    January 12, 2022 -     Humphrey Nebraska Scale House @ 5:00 PM
    January 19, 2022 -     Elgin Nebraska KC Hall @ 5:00 PM
    January 20, 2022 -     St. Ed Nebraska Community Center @ 10:30 AM
    January 25, 2022 -     Tamora Nebraska Fire Hall @ 5:00 PM
    January 26, 2022 -     Oakland NE East Hub Basement @ 10:30 AM
    February 1, 2022 -     Hinton Iowa Community Center @ 10:30 AM
    February 2, 2022 -     Laurel Nebraska Vets Club @ 10:30 AM
    February 8, 2022 -     Royal Nebraska Hub Basement @ 5:00 PM
    February 16, 2022 -     York Nebraska Country Club @ 10:30 AM
    February 16, 2022 -     Stromsburg Nebraska Legion Club @ 5:00 PM

Contact your local Grain Sales Specialist to RSVP for an event near you, or go to www.cvacoop.com/wgm.



Funding Available for Farmers to Establish Soil Health Demonstration Projects

The U.S. Department of Agriculture’s Natural Resources Conservation Service  is continuing an effort to enhance the adoption of soil health practices through the establishment of Soil Health Management Demonstration Projects. Landowners interested in applying for funding to establish a soil health demonstration project should submit their application to NRCS by Feb. 18, 2022.

According to NRCS, the purpose of this initiative is to demonstrate and validate soil health management systems applicable across Nebraska. The goal is to support the adoption and continued application of the NRCS Soil Health Principles; 1.) Use plant diversity to increase diversity in the soil. 2.) Manage soils more by disturbing them less. 3.) Keep plants growing throughout the year to feed the soil. 4.) Keep the soil covered as much as possible.

NRCS’s Environmental Quality Incentives Program (EQIP) will be used to fund this initiative. Producers selected can receive EQIP funding for 3-5 years. Funding will compensate producers for conducting strip trials of cover crops vs. no cover crops within a diverse crop rotation using no-till planting and other soil health management techniques. Producers will receive $1,800 per treatment comparison unit, up to a maximum of $7,500 per year, to conduct these strip trials, develop case studies, and host field days.

For more information on Soil Health Management Demonstration Projects, contact NRCS at the local USDA Service Center.



Farm Transitions Conference Will Help Farmers Plan for Change

Every farm operation will face transitions at some point, whether it’s a new beginning, an expansion, retirement or farm exit.

In order to help farmers prepare for these kinds of transitions, Iowa State University Extension and Outreach and the Beginning Farmer Center at Iowa State are providing a two-day educational event Feb. 10-11 in Ames.

“Farm Transitions: Entering, Expanding or Exiting the Business” will be held at the Gateway Hotel and Conference Center, and will feature presentations and discussion from nearly 20 experts from across the state. The sessions will be packed with information, encouragement and networking opportunities.

The event includes a welcome address by Mike Naig, secretary of the Iowa Department of Agriculture and Land Stewardship. Session topics will equip participants to better evaluate opportunities by reviewing farmland value data, cash rent trends, farm loan options, and crop and livestock outlooks. Experts will also teach participants to write effective business plans and better understand the tax and legal consequences of transition decisions.

“This two-day conference is designed to educate current farmers and landowners, students, individuals interested in starting their own farm operation, as well as retiring farmers, on the tools necessary for a successful farm transition,” said Kitt Tovar Jensen, staff attorney and Beginning Farmer Center Coordinator. “We are excited to also offer a virtual option for anyone is not able to travel to Ames.”

Those attending in person will have opportunities for networking, and all attendees (in person or online) may interact with speakers and ask questions throughout both days. All attendees will receive a Farm Transitions manual.

The program is intended for individuals wishing to begin or expand a farming business, as well as family members, students, parents and grandparents, farmers and non-farming heirs who may be involved in the transition of a farming business.

Through presentations and discussions, participants will take a collective and individual look at their values, visions, missions, goals, strategies and tactics.

Speaker list
    John R. Baker, attorney with the Iowa Concern Hotline at Iowa State University Extension and Outreach.
    Steve Ferguson, ag development program specialist with Iowa Finance Authority.
    Jennifer Harrington, staff attorney, Center for Agricultural Law and Taxation, Iowa State University.
    Chad Hart, professor of economics and crop markets specialist, Center for Agricultural and Rural Development at Iowa State.
    Christa Hartsook, small farms program coordinator with ISU Extension and Outreach.
    Erin Herbold-Swalwell, senior counsel for advanced markets with Farm Bureau Financial Services.
    Kiley Fleming, executive director, Iowa Mediation Services.
    Katie Kramer, agriculture program specialist, Farm Service Agency.
    Kelvin Leibold, farm and ag business management specialist with ISU Extension and Outreach.
    Eldon McAfee, shareholder with Brick Gentry P.C.
    Kevin McClure, chief agriculture program specialist, Farm Service Agency.
    Leslie Miller, former V.P, Marion County Bank.
    Iowa Secretary of Agriculture Mike Naig, Iowa Department of Agriculture and Land Stewardship.
    Melissa O’Rourke, farm and ag business management specialist with ISU Extension and Outreach.
    Alejandro Plastina, associate professor with the Center for Agricultural and Rural Development at Iowa State.
    Lee Schulz, associate professor with the Center for Agricultural and Rural Development at Iowa State.
    Dustin Svoboda, farm loan specialist, Farm Service Agency.
    Brian Tapp, enterprise development team project manager at Iowa State.
    Kristine Tidgren, director of the Center for Agricultural Law and Taxation at Iowa State.
    Kitt Tovar Jensen, Beginning Farmer Center coordinator, Center for Agricultural Law and Taxation at Iowa State.
    Wendong Zhang, associate professor with the Center for Agricultural and Rural Development at Iowa State.

In-person registration is $175 per person, or $100 for university or college students. Webinar-only registration is $150 and includes two links for joining the conference virtually. Registration information is available online at https://www.calt.iastate.edu/seminar/2022-02-10/farm-transitions-entering-expanding-or-exiting-business.

Hotel rooms for the conference are available at $114 per night. Reserve your room at the Gateway Hotel & Conference Center or call 515-292-8600. This rate expires Jan. 20.



Iowa Soybean Association Lauds Gov. Reynolds for Biofuels Proposal
Robb Ewoldt, Iowa Soybean Association President

“Gov. Kim Reynolds’ calls today to prioritize Iowa's homegrown energy and provide tax relief for farmers and all Iowans bode well for the state’s 38,000 soybean producers.

“The Iowa Soybean Association (ISA) strongly supports Gov. Reynolds’ call for building on Iowa’s leadership in renewable energy. We look forward to working with her and the Iowa legislature on modernizing Iowa’s renewable fuels infrastructure and increasing the production and use of biodiesel. We’ll also continue ISA’s nationally recognized efforts advancing carbon capturing solutions that improve the environment while offering new revenue options for farmers. Indeed, America’s energy is growing right here in Iowa’s farm fields.

“Iowa farmers recent completion of an estimated 610-million-bushel soybean harvest highlights the important role Iowa farmers play in providing the food, fiber and fuel used around the world. The sustainable and profitable production of high-quality soy remains key to ensuring producer success and rural vitality.

“To secure Iowa's status as the nation’s leading producer of soy and corn, investments to improve agricultural productivity, enhance infrastructure, and protect recreational amenities are needed to meet the challenges of farmers.

“ISA supports Gov. Reynolds' continued leadership in fostering profit opportunities for Iowa farmers, promoting critical infrastructure projects, and ensuring the protection of our natural resources.”



New Economic Analysis Has Farmers Raising Concerns about Looming Tariffs on Nitrogen Fertilizers

A new economic analysis released today by researchers at Texas A&M University has corn growers raising concerns that pending tariffs on nitrogen fertilizers will create shortages and cause prices to increase even more for farmers, according to the National Corn Growers Association.

“As part of this study, we conducted an historical analysis going back to 1980 and found that fertilizer costs tend to go up when corn revenues increase,” lead researcher Joe Outlaw, Ph.D., noted. “Notably, these prices tend to go up exponentially even after accounting for natural gas prices and higher demand.”

The study notes that the price of one type of nitrogen fertilizer, called anhydrous ammonia, increased by $688 per ton – $86,000 for a 1,000-acre farm – from the end of 2020 through the end of October 2021.

The study has farmers raising concerns about a petition by CF Industries, one of the country’s major nitrogen producers, with U.S. International Trade Commission to impose tariffs on nitrogen fertilizers imported from Trinidad & Tobago and Russia. The U.S. Department of Commerce has since released a preliminary finding recommending tariffs, despite strong outcry from farm groups.

“The proposed tariffs will create shortages and drive our costs up even higher,” Iowa farmer and National Corn Growers Association President Chris Edgington said. “They will add insult to injury and impose a financial hardship on family farms.”

This academic study verifies that nitrogen prices erode profitability for family farms, Edgington said.

“Our request is simple,” he said. “We’re just asking that these companies keep us out of their trade disputes, and they do everything possible to keep their products available and affordable for family farms.”

The study was commissioned by state corn organizations in Texas, Missouri, Colorado, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, Ohio, South Carolina, South Dakota, Tennessee and Wisconsin.



Weekly Ethanol Production for 1/7/2022

According to EIA data analyzed by the Renewable Fuels Association for the week ending January 7, ethanol production scaled back by 42,000 barrels per day (b/d), or 4.0%, to 1.006 million b/d, equivalent to 42.25 million gallons daily. Production was 6.9% above the same week last year, which was affected by the pandemic, but 8.1% less than the same week two years ago. The four-week average ethanol production volume decreased 1.9% to 1.041 million b/d, equivalent to an annualized rate of 15.96 billion gallons (bg).

Ethanol stocks jumped 7.3% to a 47-week high of 22.9 million barrels. However, stocks were 3.3% below the year-ago level and 0.4% less than the same week two years ago. Inventories built across all regions, with reserves in the Midwest (PADD 2) reaching a record high.
                                                                                                              
The volume of gasoline supplied to the U.S. market, a measure of implied demand, declined 3.3% to 7.91 million b/d (121.20 bg annualized) and the lowest volume since mid-February. Gasoline demand registered 5.0% higher than a year ago but 7.6% lower than the same week two years ago.

Refiner/blender net inputs of ethanol pared back 3.5% to 755,000 b/d, equivalent to 11.57 bg annualized and a 46-week low. Net inputs were 0.9% more than a year ago but 11.6% less than the same week two years ago.

There were zero imports of ethanol recorded for the eleventh consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of November 2021.)



RFA to House Ag Committee: Ethanol Can Jumpstart Transition to Net-Zero Emissions

Both electric vehicles and the increased production and use of renewable fuels like ethanol will be necessary to achieve a national goal of net-zero carbon emissions by 2050, Renewable Fuels Association President and CEO Geoff Cooper told the House Agriculture Committee today.

“While increased deployment of electric vehicles will indeed play a vital role in reducing GHG emissions from transportation, other complementary solutions will also be required to truly decarbonize the sector by mid-century,” Cooper said in his submitted testimony. “That’s where agriculture comes in. Through the increased production and use of low-carbon renewable fuels like ethanol, the U.S. agriculture sector offers an effective and immediate solution for further reducing carbon emissions from liquid fuels across all segments of the transportation sector.”

An increased role for low-carbon biofuels is especially important in the near term, given the relatively small number of electric vehicles and barriers to EV adoption, Cooper said. The U.S. Energy Information Administration forecasts that roughly 80 percent of new light-duty vehicles sold in the U.S. in 2050 will be powered by an internal combustion engine. “Even with increased electric vehicle sales expected in the years ahead, it would take decades to entirely turn over the fleet. As such, hundreds of billions of gallons of liquid fuel will continue to be used in ICE vehicles for many years to come. To achieve true carbon neutrality in the U.S. transportation system by mid-century, strategies focused on decarbonizing those liquid fuels will need to be undertaken.”

Today’s corn ethanol already reduces greenhouse gas emissions by roughly half, on average, compared to gasoline, Cooper told the lawmakers. According to the Department of Energy’s Argonne National Laboratory, typical corn ethanol provides a 44-52 percent GHG savings compared to gasoline. “With the rapid emergence of new technologies and more efficient practices, even greater GHG reductions are coming to the corn ethanol sector,” Cooper said, noting that RFA’s board of directors last summer adopted a commitment to reach net-zero carbon emissions, on average, by 2050 or sooner. Cooper said this requires, in addition to a level playing for lifecycle GHG analysis, “certain policy and regulatory actions … to fully leverage the potential of agriculture and biofuels to decarbonize transportation.” These include:
    The removal of EPA’s arcane fuel volatility barrier, which would facilitate the rapid expansion of E15 in the marketplace.
    Implementation of strong Renewable Fuel Standard volume requirements in 2023 and beyond to ensure low-carbon biofuels have access to a growing market.
    Incentives that encourage automakers to increase production and deployment of flex-fuel vehicles.
    Additional public and private investment in the infrastructure necessary to distribute higher ethanol blends like E15 and flex fuels like E85.
    Future decarbonization policies that take a technology-neutral, performance-based approach to focus on reducing carbon emissions and increasing fuel efficiency without dictating the use of specific fuels or vehicles.




Growth Energy Announces 2022 Policy Priorities

Today, Growth Energy CEO Emily Skor outlined the top federal priorities of the U.S. biofuel industry, highlighting critical steps policymakers must take to achieve the nation’s energy and climate goals.  

“If we want to decarbonize the transportation sector, we must use all the tools in the toolbox – including plant-based biofuels like ethanol, which reduce carbon emissions by 46 percent compared to gasoline,” said Skor.

“Affordable for drivers, earth-friendly, and engine smart,” she noted, “biofuels are the most abundant and readily available climate solution to immediately reduce carbon emissions for cars on the road today.

“The research shows that our climate goals cannot be realized without harnessing the power of homegrown energy,” she added. “That’s why it is critical that policymakers ensure that our farmers and rural producers remain at the forefront of the nation’s efforts to accelerate our transition to a healthier, zero-emission, 100% renewable energy future.”  

Specifically, Skor highlighted the association’s key priorities, focusing on opportunities for regulators and policymakers to promote cleaner fuel choices, reduce carbon emissions, and protect the environment. These include:  

Restore Certainty to the Renewable Fuels Standard (RFS):
    Finalize strong Renewable Volume Obligations (RVOs) for 2021 and 2022
    Reject improper and illegal retroactive cuts to the already finalized 2020 RVOs
    Reject all pending and improperly granted small refinery exemptions (SREs)
    Restore the 500 million gallons remanded by the courts in 2017
    Set forward-leaning biofuel targets for 2023 and beyond that recognize the contributions of low-carbon ethanol in achieving climate goals
    Update EPA’s outdated lifecycle carbon assessment model
    Approve pending registrations for cellulosic biofuel from kernel fiber  

Eliminate Barriers to Higher Blends of Low-Carbon Ethanol:
    Restore unrestricted access to E15 year-round
    Clarify rules around the use of existing fuel storage and dispensing equipment for E15
    Finalize EPA's proposal to simplify onerous labeling requirements at fuel pumps
    Expand infrastructure for higher biofuel blends through legislative or administrative action  

Utilize Biofuels as a Low-Cost Pathway to Achieve Climate Goals:
    Promote new uses for biofuels, including in aviation, marine, and heavy-duty applications
    Enact new and expand existing incentives to encourage ethanol producers to further reduce their carbon footprint through carbon capture, utilization, and storage, as well as innovation in biotechnology and sustainable agriculture
    Break down trade barriers to low-carbon ethanol in markets like Brazil, India, and China
    Utilize opportunities to decarbonize our nation’s transportation sector through the use of high octane, low-carbon fuels

“To build on the zero-carbon momentum driven by the Biden administration’s emphasis on climate change, addressing these priorities and utilizing biofuels is critical. We look forward to working with Congress and the White House to take these key steps toward a low-carbon future,” Skor said.