Tuesday May 10 Ag News

 MITA’s 2022 World Trade Conference -- Global Recovery Amidst Turbulence

On Wednesday, May 18, 2022, the Midwest International Trade Association (MITA) will host its annual World Trade Conference.  The conference features expert speakers and panelists addressing themes of importance to our regional economy: a panel discussion about the agricultural sector, and Nebraska’s leading role in ag production and trade; presentations on overcoming the supply chain backlog after COVID-19; economic projections for the region; and views from the Department of Commerce on how to compete and win in global procurement opportunities. Governor Pete Ricketts has been invited to offer concluding remarks regarding Nebraska and its trade exports. Join MITA as we celebrate the importance of international trade on the region's economy and network together to share collective expertise on expanding your business.

Pete Ricketts, Governor of Nebraska (invited)

Shari Stout
Commercial Officer
Regional Manager - Middle East and Asia
U.S. Commercial Service - Advocacy Center
Topics:
    An introduction to the Advocacy Center, the process and highlighted case study.
    The U.S. Department of Commerce’s Advocacy Center is responsible for connecting the American business community to international procurement opportunities and advocating for U.S. business interests.
    In 2021, the Advocacy Center supported U.S. businesses in securing international contracts valued over $16 billion dollars!  

Dr. Chris Decker
Economist
University of Nebraska at Omaha
Topics:
    Which Nebraska export markets are likely to perform well and which markets might struggle given current global economic conditions and forecasts?
    Labor force issues for Nebraska: Why are vacancy rates so high? What is driving labor force behavior? How do vacancy rates vary from place to place and why?

The Importance of the Ag Sector to Nebraska and the World:
Mike Jung
Chief Executive Officer and President, Burlington Capital International
Managing Director, Burlington Capital Ag-Venture
and
Ben Williamson
Managing Director, Burlington Capital Ag-Venture
Principal & General Counsel, Invest Nebraska Corporation
Topics:
    The Burlington Capital Ag-Venture Fund is a new seed fund endeavoring to make the Midwest the global AgTech Hub.
    Tremendous momentum in the middle of the country with entrepreneurs building innovation and technology for the future of agriculture based on a deep understanding of the real problems and realities existing in agriculture. The Burlington Capital Ag-Venture Fund is perfectly situated to facilitate and capitalize all of this momentum.

Bradley D. Lubben, PhD.
Extension Policy Specialist and Director
North Central Extension Risk Management Education Center
Topics:
    Agriculture is a leading driver of economic activity across Nebraska and the region, with more than 1 in 5 dollars of state GDP in Nebraska coming from production agriculture and related agribusiness activities.
    While production agriculture is a relatively small share of total GDP in the United States and even in midwestern states, it is a linchpin of a broader agricultural production complex from ag inputs to production to processing and manufacturing that is a major economic engine for the region.

Greg Ibach
USDA Under Secretary in Residence
Office of Vice Pres/Vice Chancellor
University of Nebraska–Lincoln
Topics:
    Amid emerging concerns about climate, consumers' food purchases could be influenced by climate footprint scores that could further complicate the export marketplace.
    How might America and more importantly, Nebraska position our agricultural production to compete in this new paradigm?

Dr. Mitchel Herian
Project Director
UNL Bureau of Business Research
Topics:
    The Nebraska Thriving Index, a benchmarking tool designed to allow rural areas of the state to assess their performance across nine dimensions of economic and social well-being.
    A brief overview of the methodology behind the tool, plus a demonstration of the online dashboard that accompanies the full report.


Transportation Panel -- Lessons Learned by Supply Chain Backlog and Covid:
Chris Adderton, Vice President, Council of Supply Chain Management Professionals (CSCMP)
    Unprecedented challenges were created by a global pandemic, political and social disruption, and military war on the European continent. These challenges have proven to be catalysts for accelerated change and innovation. The need to integrate talent and technology has never been greater.
Dennis Grady, Vice President of Ocean Product, Ascent International
    Overview of the Air and Ocean market, and what we may see as we move through 2022; the latest update on the ILWU contract talks.
Kent Grisham, President & CEO, Nebraska Trucking Association
    Current trucking issues, fuel and impacts of the war in Ukraine, and what we have learned and what we can change to avoid supply chain backlogs.

“World Trade Conference is our region’s premier event of the year and we’re excited that it will be back in person this year.” said Karen Pinkall, President of the Midwest International Trade Association (MITA).  “As the world continues to evolve post pandemic, our mission is to ensure we bring in top leading industry experts to learn more about global trade issues and policies.  Attendees will gain insight in how to navigate what the possible future holds for the many aspects of international business.  We are incredibly excited to have Governor Ricketts speak again this year and share his thoughts regarding important international trade issues impacting Nebraska.”

Sponsors of this year’s event are:  Able Transport, AIT Worldwide Logistics/Cargo Zone LLC, Ascent Global Logistics, Behlen Mfg. Co., Commerce Bank, Consulate General of Canada in Minneapolis, Dvorak Law Group, EXIM, First National Bank of Omaha, Husch Blackwell, Leo A. Daly, LI-COR Biosciences, Lyncstream, US Bank and USDOC.

The World Trade Conference will be held at Embassy Suites Omaha-LaVista, Hotel and Conference Center, 12520 Westport Parkway, LaVista.  



The ACE Conference to Explore Key Industry Issues August 10-12

The American Coalition for Ethanol (ACE) 35th annual conference coming up August 10-12 in Omaha is slated to cover a range of topics to inform ethanol producers and the broader industry about the current market and policy dynamics at play, as well as to equip producers with practical insights they can implement to improve their operations.

“The ACE conference is designed to make good use of the attendee’s time by incorporating a variety of general sessions and breakouts in a condensed day-and-a-half agenda,” said Katie Muckenhirn, ACE Vice President of Public Affairs. “I was pleased with the feedback from biofuel professionals offering to share their technical expertise and insight at this year’s event and we’re working on incorporating many of those ideas into an agenda that provides resourceful takeaways.”

This year’s general session coverage will feature new uses and markets for ethanol, farm-to-biofuel carbon market opportunities, trade developments, and an energy market outlook, as well as insight on the ethanol retail marketplace and future demand opportunities. Further, more intimate breakout sessions will cover the latest in technology updates, strategic planning advice, and ways for ethanol plants to lower their carbon score and raise their profitability.

More specifically, sessions will include information on sustainable aviation fuel and hydrogen market potential, carbon capture and storage, getting the most out of your coproducts — like distillers corn oil, carbon intensity scoring, hiring practices and labor challenges, IT security, driving value to agriculture through low carbon solutions, tax credits in new project investments, and more. ACE has also invited key officials at the Environmental Protection Agency and the U.S. Department of Agriculture to speak during the event.

“Central to the discussions we plan to host this year is how can we position the industry up for success to continue playing an integral role in the climate conversation and evolving to take advantage of new technologies and markets,” Muckenhirn added. “The 35th anniversary event theme ‘intensity’ encompasses this focus; we encourage you to turn it down for carbon and turn it up for us by joining ACE this summer in Omaha.”

More on the agenda will be released over the coming months. Online event registration is open and reduced rate reservations are available at the event hotel: the Marriott Downtown at the Capitol District. ACE welcomes supporters to reserve an event sponsorship. All conference details can be found at ethanol.org/events/conference.



PSC DENIES MOTION FOR RECONSIDERATION IN SOUTH DAKOTA GRAIN DEALER COMPLAINT

On Tuesday, May 10, the Nebraska Public Service Commission (PSC) issued an Order (GDC-446) Denying a Motion For Reconsideration of a civil penalty assessed to Banghart Properties, LLC, a.k.a. Fearless Grain Marketing Storage & Arbitrage, a.k.a. Fearless Grain Marketing, a.k.a. Fearless Grain of Gettysburg, South Dakota.

On March 15, the PSC assessed a civil penalty of $290,000 against the Banghart Properties, LLC (and its various aliases), for operating as a grain dealer in Nebraska without a license.

Banghart Properties, LLC, filed a Motion for Reconsideration with the Commission March 25.  Commissioners heard oral arguments on the Motion to Reconsider on May 2.  The company, should it choose has 30 days to file a court appeal regarding the Commission’s decision.



PSC ISSUES SHOW CAUSE ORDER AND SCHEDULES HEARING FOR UNION GRAIN COMPANY

The Nebraska Public Service Commission (PSC) filed a Complaint seeking an Order (GW-340/GWC-447) assessing civil penalties to Union Grain Company, of Saint Libory.

The PSC grain department complaint alleges that Union Grain Company violated the Grain Warehouse Act, Neb. Rev. Stat. §88-543, which prohibits warehouse licensees from operating with less grain in the warehouse than outstanding receipts issued for grain stored by valid owners, depositors, or storers of grain in the licensed warehouse. Two audits conducted by the PSC grain department found Union Grain Company oversold in corn on several occasions.

Per the Order (GW-340/GWC-447) a show cause hearing has been scheduled for 9:00 a.m., Wednesday, June 29, at which time Union Grain Company will need to show cause as to why it should not be assessed civil penalties in accordance with Neb. Rev. Stat § 75-156.

Grain warehouses are generally regulated by the PSC pursuant to the Grain Warehouse Act, Neb. Rev. Stat. § 88-525 through 88-552, and Neb. Admin. Code Title 291, Chapter 8 of the Commission’s Rules and Regulations.



RFA Welcomes Mikayla McKenna to the Communications Team
    
The Renewable Fuels Association today announced that Mikayla McKenna has joined the organization’s staff as its new Communications Manager. McKenna’s experience includes interning with the National Association of State Departments of Agriculture, Sen. Joni Ernst (R-IA), the American Feed Industry Association and the Iowa Corn Growers Association.

”We’re pleased to have Mikayla join the team at RFA,” said RFA President and CEO Geoff Cooper. “As someone who was raised on a farm, excelled at her university studies in agriculture and has shown herself to be an excellent communicator, Mikayla brings a valuable background to the organization as we deal with the many opportunities and challenges facing the industry. We know Mikayla will hit the ground running and look forward to the many contributions she has to offer.”

McKenna earned an undergraduate degree in Agricultural Communications and International Agriculture at Iowa State University, where she was involved in the College of Agriculture and Life Sciences Student Council, the Dean’s Student Advisory Committee, Sigma Alpha Professional Sorority, the Iowa Corn Collegiate Advisory Team, the Agriculture Communicators of Tomorrow Club, and taught as an agricultural communications peer mentor. McKenna’s outstanding involvement and leadership led her to receive the Fall 2021 Iowa State CALS Council Outstanding Ambassador of Agriculture and Life Sciences senior award. She is currently pursuing her master’s degree from Oklahoma State University in International Agriculture, focusing on international trade and agricultural policy.

“I loved all my internship opportunities and am thankful to finally have found the right job to utilize my skills and diverse experiences,” McKenna said. “I have always had a passion for the corn and ethanol industry and am excited to join the RFA team where I can further my passion for the agriculture industry and those commodities.”



EverAg Acquires Partners for Production Agriculture

EverAg, a leading agtech provider dedicated to empowering agriculture, food, and beverage supply chains to feed a growing world, has acquired Partners for Production Agriculture (PFPAg), a premier provider of agricultural risk management solutions for the swine and cattle sectors. The addition of the PFPAg services to the EverAg portfolio will provide customers in the livestock industry with even more access to risk-mitigation expertise and technology.

"As we continue to expand, we are thrilled to add PFPAg's livestock risk management, market intelligence and insights," said EverAg CEO Scott Sexton. "It's another example of our commitment to bringing the right team and right technology solutions to our clients and the industries we serve."

The new partnership will enable EverAg to bring its Vault software, a multifaceted platform that combines production information with hedging positions and market pricing, to the swine and cattle risk management space. Customers will also benefit from expanded access to EverAg's large network of grain and feed expertise. EverAg offers software, insights, and risk management solutions for all three of its key agribusiness verticals, livestock, dairy, and crops.

Both companies have historically embraced a business model that combines the use of technology with in-house industry expertise, including brokers who are experienced with the needs of producers, growers, and ranchers. EverAg has over 475 employees, 80 of whom are dedicated to supporting the risk management and market intelligence needs of thousands of farmers and producers and hundreds of commercial firms.

"As the market for livestock insurance grows, customers need world-class technology as well as deep expertise and insights," said PFPAg CEO Joe Kearns, "Vault by EverAg will be a huge benefit to both current and future customers. I am looking forward to partnering with our new team members to continue enthusiastically supporting their success."

"This is a thrilling time for EverAg as we are joining forces with one of the premier leaders in the hog industry," said Pete Turk, President, Commercial Division. "Joe Kerns and his team are passionate about managing risk for their customers, always looking for the edge to improve their operations."

Additional information on this announcement can be found at news.ever.ag/pfpag/.



AGCO Falls Victim to Ransomware Attack

Agricultural equipment maker AGCO says its business operations have been impacted after falling victim to a ransomware attack last week. The companyt designs, makes, and distributes agricultural machinery and precision technology, offering equipment under brands such as Challenger, Fendt, Massey Ferguson, and Valtra.

On Friday, the company announced that it fell victim to a ransomware attack that impacted some production facilities.

AGCO says it has launched an investigation into the incident and estimates that it might need at least several days before it could restore all operations to normal.

“AGCO is still investigating the extent of the attack, but it is anticipated that its business operations will be adversely affected for several days and potentially longer to fully resume all services depending upon how quickly the company is able to repair its systems,” AGCO said on Friday.

The company also noted that the recovery process involves reinstalling software and restoring IT operations at the affected facilities.



Cargill RegenConnectTM Expands Program Eligibility to 15 states for 2022-23 crop season

Enrollment opens this month for Cargill RegenConnect, a voluntary market-based regenerative agriculture program offering producers a simple, flexible, and transparent way to access the growing carbon marketplace. For the 2022-23 crop season Cargill has expanded grower eligibility to 15 states including: Illinois, Indiana, Ohio, Missouri, Tennessee, Arkansas, Minnesota, Michigan, Wisconsin, Nebraska, Kansas, Iowa, Kentucky, North Dakota, and South Dakota.
 
“In our first year, Cargill has received a tremendous response from growers about RegenConnect,” said Nathan Fries, program lead for Cargill RegenConnect. “It is our goal to deliver a best-in-class program that is economically viable for farmers and improves their profitability through the tools, resources and market access they need to make the shift to regenerative agriculture.”
 
Cargill will once again offer one-crop-year contracts to producer customers in eligible states to sequester carbon through implementation of new or expanded regenerative agriculture practices such as cover crops, no-till or reduced-till. Eligible acres must have a primary crop of corn, soy or wheat.  Farmers can choose the practices that are best suited to their operation’s unique growing conditions. For the 2022-23 enrollment, Cargill will offer a market competitive price of $25 per metric ton of carbon sequestered per acre.
 
Carbon sequestration achieved through RegenConnect will contribute to Cargill’s scope 3 climate commitment and also can help the company’s downstream customers achieve their voluntary carbon reduction goals.  Cargill aims to have 10 million acres enrolled in sustainable and regenerative farming programs by 2030.
 
How to Enroll for 2022-23 Season
Farmers looking to unlock the profit potential of their farm through adoption of regenerative agriculture practices can enroll in the 2022-23 RegenConnect program starting mid-May by visiting www.cargillregenconnect.com or by connecting with their Cargill relationship manager. To support farmers during the upcoming enrollment period, Cargill has expanded its team of conservation agronomists to offer technical support in successfully implementing regenerative soil health best practices. Cargill has also added support to its grain origination team, dedicated to providing farmers with an unparalleled enrollment experience.
 
The program’s intuitive digital platform is powered by carbon measurement firm Regrow and uses the industry leading soil carbon model, DNDC (DeNitrification-DeComposition). The program incorporates weather, soil management and environmental conditions that allows farmers to easily model the soil’s response to practice changes and estimate quantified carbon outcomes. In addition, enrolled farmers can track management practices for each of their fields and crops. Management practices for each field can be imported from compatible farm management systems or identified with remote sensing technology. The Regrow platform was built to ensure secure data collection and provides transparent measurement and verification options for farmers.
 
For more information about RegenConnect, growers can visit www.cargillregenconnect.com.



Feeder Cattle Interest Rates and Grazing Land Values Pose Significant Competing Short- and Long-term Hurdles for Cattle Producers
Elliott Dennis, Extension Livestock Economist, University of Nebraska - Lincoln

This past week the U.S. Federal Reserve voted to raise a key interest rate by a half point. This has received a noticeable amount of attention because it is already the second rate hike this year and the largest one-time increase since 2000. Similarly, meeting notes suggested that additional rate hikes will be discussed at future meetings this year. The vote was unanimous. The growing sentiment seems to be that the current rates of inflation need to be more controlled, and that action is to occur primarily in the form of interest rate hikes and to a lesser extent buying back treasury notes.
 
When the U.S. Federal Reserve raises interest rates, the effects eventually trickle down to agriculture banks or lending, and the cattle market, through interest rates on operating loans and feeder livestock interest rates. The feeder livestock category is not specifically cattle, but it is the closest rate reported that includes loans used primarily to purchase feeder cattle, feeder pigs, or feeder lambs to be fattened for slaughter. Ultimately, the result of higher feeder cattle interest rates is that it makes it more expensive to raise cattle. Feeder livestock interest rates are primarily tracked by the Dallas and Kansas City Federal Reserve Districts. Interest rates in these two primary cattle feeding areas are different from each other and reflect different supply and demand of money and relative production risks in these two areas. In 2022:Q1, the Dallas Federal Reserve feeder cattle interest rates were 5.42%. This rate has been relatively unchanged since 2020:Q2 fluctuating between 5.23-5.42%. In 2022:Q1, the Kansas City Federal Reserve feeder cattle interest rates were 3.92%. This rate has been much more variable oscillating between 2.90-5.03% since 2020:Q2. Thus, while the interest rate is lower in the Kansas City Federal Reserve region interest rates are more stable in the Dallas Federal Reserve Region. Figure 1 shows how the quarterly feeder cattle interest rates have changed between 1990-2021.
 
Similarly, the average number of months before maturity on feeder cattle loans has been increasing. Between 2000-2009, the average number of months before maturity on feeder cattle loans was 8.82 months. Between 2010-2019, that increased to 10.74 months. Now, between 2020-present it has increased slightly to 10.92 months. At the same time, the average loan size and total feeder cattle loan volume have increased. The average loan size over the last 10 years has been about $80,000. This is all as we would expect – as the cost of money decreases the quantity demanded of money should increase (Kauffman and Kreitman, 2021). Moving forward, higher interest rates for feeder cattle are likely to be expected. This could be particularly problematic in market conditions if cattle prices remain low relative to input and output cattle prices. From the lending side, this higher demand for loans is not necessarily problematic. Agricultural banks have been reporting a higher amount of available funds for loans than in previous years. The burden more lies with cattle producers to use good judgment about the assumptions required to pay back loans.
 
Lower interest rates cheapen the cost to raise feeder cattle. These lower costs create more economic incentives for (a) new producers to enter the market, (b) existing producers to increase the intensity of their operations, or (c) some combination of (a) and (b). Ultimately, this means that the demand for feeder cattle is passed down from feedlots to cow-calf/stocker producers who then expand by competing for a limited land base raising land prices. Over the last 40 years, the University of Nebraska Lincoln Department of Agricultural Economics has conducted an annual real estate report which summarizes reported land sales by type of land (see https://cap.unl.edu/realestate for more information). Tillable Grazing Land and Non-tillable Grazing Land are two reported land bases that are relevant to livestock production. The data is reported by Agricultural Statistics District, but for simplicity, the data reported here are the Nebraska state averages. Figure 2 shows the inverse relationship between the Kansas City Federal Reserve feeder cattle interest rates and the average pastureland value in Nebraska. As the cost to raise feeder cattle has decreased, the cost to own pastureland has increased. The relative rise in tillable grazing land has risen faster than non-tillable grazing land. This reflects the marginal productivity of the land which is driven primarily by corn and soybean prices. These prices significantly increased after the expansion of the ethanol industry between 2006-2009 creating a greater demand for corn. In the regional data, the rise in pastureland values is not as large in the western part of Nebraska relative in the eastern part of Nebraska. There are of course other factors that influence the exchange of land between two individuals. But prevailing long or short-term interest rates (feeder cattle interest rates) and the lands’ alternative uses are significant contributors to these decisions. The potential for higher interest rates this year could raises the cost of production in the short term for cattle producers by making debt more expensive. However, it does ease some of the longer-term pressure of rising land values which landowners capitalize into pasture rental rates.
 
Renting pasture is also a viable option for cattle producers who are unable or unwilling to purchase grazing land at the current market value but still want to expand production. There are many considerations when setting up these leasing arrangements of which price is one of them. One should always get a lease in writing and consult a lawyer before signing any agreement to ensure understanding for both parties. The Nebraska Real Estate Report also reports historical cash rental rates for different types of land by Agricultural Statistics District in Nebraska by cow-calf pair per month. A cow-calf pair is typically considered to be 1.25 to 1.30 animal units (animal unit being 1,000 lb. animal). However, this can vary depending on weight of cow and age of calf. On average across all Agricultural Statistics District, the average rental rate for one month of summer grazing is expected to be $57.64 per cow-calf pair. These rates have also significantly increased since 2007-08 at $25.70 per cow-calf pair. Using an average beef cow herd of 300 cow-calf pairs and a 5-month grazing season, total pasture costs would conservatively be $86,460 not including additional mineral supplements or additional feed.



Sharing the Story of the Path for Corn as an Industrial Feedstock

At the Advanced Bioeconomy Leadership Conference (ABLC) in Washington D.C., the National Corn Growers Association (NCGA) held a session on Corn-to-Chemicals, outlining the uses of corn as an industrial feedstock.

The panel was moderated by McKay, and participants included John Hannon, COO, Vertimass; Nathan Danielson, Principal, BioCognito; Erick Lutt, Senior Director, Biotechnology Innovation Organization and Jessica Bowman, Executive Director, Plant Based Products Council. The panel highlighted the evolution of the biotechnology industry and how each organization is working to overcome barriers to commercialization. Further, the panel had a robust Q&A session with the audience on programs and policies, including national incentives for biobased materials.

“U.S. corn farmers continue to produce an affordable, high quality and reliable crop each year,” said NCGA Market Development Director Sarah McKay. “That crop can be turned into more than just food, feed and fuel. The corn kernel can be utilized in so many ways, which is why we focus on new uses and corn as an industrial feedstock.”

Vertimass was a winner of NCGA’s first Consider Corn Challenge. If all 15 winners of the Consider Corn Challenge I, II and III were fully commercialized, it would approximate 3.4 billion bushels of added corn demand.

NCGA continues work in the new uses and industrial feedstock space through the Consider Corn Challenge, a partnership with DigestData, continued conversations with government agencies like the Department of Energy’s (DOE) Bioenergy Technologies Office (BETO), and expanded focus on a potential national incentive program. Learn more about NCGA’s additional new uses programs and efforts at ncga.com/newuses.



Zoetis Reports Higher Revenues, Net Income

Zoetis Inc. reported its financial results for the first quarter of 2022 and updated its guidance for full year 2022 due to the negative impact of recent changes in foreign exchange rates. The updated guidance reflects the same operational growth rates for revenue and adjusted net income as stated in the company's previous guidance for 2022.

The company reported revenue of $2.0 billion for the first quarter of 2022, an increase of 6% compared with the first quarter of 2021. Net income for the first quarter of 2022 was $595 million, or $1.26 per diluted share, an increase of 6% and 8%, respectively, on a reported basis.

Adjusted net income1 for the first quarter of 2022 was $625 million, or $1.32 per diluted share, an increase of 4% and 5%, respectively, on a reported basis. Adjusted net income for the first quarter of 2022 excludes the net impact of $30 million for purchase accounting adjustments, acquisition-related costs and certain significant items.



53% of US Commercial Trucks are Powered by Near-Zero Emissions Advanced Diesel Technology

Research shows that for the first time, more than half of all diesel commercial vehicles on the road in the US are advanced diesel technology models. The Diesel Technology Forum (DTF) is breaking the news today based on IHS Markit data of vehicles in operation as of December 2021 that it commissioned.

The data examines the number of 2010+ model year diesel trucks operating today. They’re equipped with advanced diesel engines that minimize the production of emissions through efficient combustion, while controlling remaining emissions through advanced technologies including particulate filters, oxidation catalysts, and selective catalytic reduction systems. This enables new diesel trucks to achieve near-zero emissions with increasing fuel efficiency and lower CO2 emissions.

Diesel is the most energy-efficient internal combustion engine and the prime mover for key sectors of our global economy such as transportation, agriculture, and mining.

In previous research commissioned for DTF, AutoForecast Solutions found that increasing the numbers of advanced diesel technology trucks on the road will eliminate more than 1.3 billion tonnes of CO2 during this decade.

“This is great news for our environment and economy. It shows that our nation’s truckers, and commercial fleet owners, are choosing advanced diesel technology, up 4.2% over the previous year. That’s because of its solid track record of performance, reliability, and durability. Advanced diesel technology trucks will continue to dominate the market for these reasons, and many more, for years to come,” says DTF Executive Director Allen Schaeffer.

Schaeffer says he’s confident in diesel’s future dominance because those same advanced diesel engines, as well as older diesel engines, are capable of running on low-carbon renewable biofuels. Taken together, these elements make diesel technology part of the solution to reducing greenhouse gas (GHG) emissions. They lower GHG and other emissions 20-80% compared to conventional diesel fuel.

As he recently testified to the U.S. Environmental Protection Agency, the latest generation of advanced diesel technology is a success story. The technology, standard in commercial trucks on the road since 2011 and farm and construction equipment since 2014, has achieved more than 98% reduction in nitrogen oxides (NOx) and particulate matter (PM). Since 2011, this has translated into saving more than 20 billion gallons of fuel, along with associated emissions benefits (preventing 202 million metric tons of GHG emissions and 27 million metric tons of NOx emissions).

Commercial trucks aren’t the only vehicles increasingly utilizing advanced diesel technology. It’s a top choice for school and transit buses, too.

The IHS Markit data shows 58% of our country’s school buses utilize advanced diesel technology now, as well as 47% of transit buses.

“Even as manufacturers begin to develop zero emission technologies, there is a consensus that diesel technology will continue to dominate the heavy-duty commercial trucking sector for decades to come. The increasing adoption of this newest generation of diesel technology and transition away from older generations of technology is the fastest way to realize our national goals of cleaner air and lower greenhouse gas emissions,” says Schaeffer.