Wednesday June 21 Ag News

Don’t miss UNL’s Haskell Ag Lab Soil Health School

Plan to attend the Haskell Ag Lab’s Soil Health School August 1-2 in Concord, NE.

The Haskell Ag Lab Soil Health School is a collaborative event with Nebraska Extension, North Central Region’s Soil Health Nexus, and the Nebraska NRCS. It will cover many aspects of the science related to soil health, including foundational soil health principles, the evaluation of soil health management practices, and many hands-on soil health investigations and demonstrations.

The two-day long event is filled with speakers, hands-on demonstrations and activities, and student poster presentations. Both full days are free to attend and include a full lunch and refreshments. The first day, August 1, will be 8 am to 5 pm, and the second day, August 2, will be 8 am to 4 pm.

Topics include:
Live soil health demonstrations
Observing life in the soil
Lysimeters
Cover crops
Economics
Manure
Biological product research
Rainfall simulator
Methods for showing root growth
Livestock integration
Importance of legumes in rotation

The full agenda and registration are available at: go.unl.edu/hal-shs
A full lunch and refreshments will be provided both full days.
11 Certified Crop Advisor Continuing Education Units have been requested.
There is no fee to attend.
Pre-register by July 15.

For more information or questions, email Leslie Johnson at leslie.johnson@unl.edu or Katja Koehler-Cole at kkoehlercole2@unl.edu.



MANAGING SEEDING YEAR ALFALFA
– Ben Beckman, NE Extension

Alfalfa seeded this spring is ready, or soon will be ready, to cut.  Proper care and management now could have big impacts on cuttings later this year. Use the following harvest guidelines to get the most from your first-year alfalfa.

Seeding year alfalfa is different from established stands.  Stems are spindly, roots are small and shorter, and growth is a little slower.

You can harvest seeding year alfalfa as early as 40 days after seedlings emerge. Again, this is 40 days after emergence, not planting.  Alfalfa takes about 40 days to develop the ability to regrow from the crown after cutting.  Plants cut before this point need at least one set of leaves remaining to regrow.  So, if you need to cut early for something like weed or insect control, cut high.

Although alfalfa seedlings can be harvested 40 days after emerging, I think it’s better to wait until around 60 days after emergence, at late bud to early bloom stage, before the first cutting.  Yield will be a little higher and plants will withstand weather stress easier with a little extra growth. This extra time also allows increased root development, helping avoid problems from soil compaction or surface soil dryness.

After the first cutting, regrowth of seedling alfalfa will become more similar to established alfalfa, giving you the opportunity for two or three cuts the first year.

One last point – while it may seem like a long way off, never cut seeding year alfalfa during the four-week period before a killing freeze.  Winter injury can be severe due to reduced winterhardiness of new plants. Look ahead at the calendar now to plan when future cuts might be taken to avoid cutting during this sensitive time.

First year alfalfa can be productive, just manage it right.



BBQ & Brew to raise money for Iowa food banks
    
Calling all barbecue and beer lovers! Fill your bellies while helping those in need fill theirs.

The inaugural BBQ & Brew at the Ballpark—hosted by the Iowa Pork Producers Association (IPPA), the Iowa Cubs, and Cactus Cares—is set for noon to 4 p.m. Saturday, July 15, at Principal Park in Des Moines. Attendees can sample delicious Iowa pork from 30 different backyard barbeque experts and 15 craft beers from Iowa’s top breweries.

Full-price BBQ & Brew tickets cost $25, with $5 from every ticket purchase supporting local hunger relief. Those interested in the barbecue experience without the brew can attend for $15. Kids ages 5 and younger are admitted free of charge. Purchase tickets and learn more at IowaPork.org.

The event not only offers high-quality Iowa pork and Iowa-brewed beers, but it’s also a chance to raise funds to help food banks statewide. According to the Iowa Food Bank Association, 7.3% of Iowans are struggling with hunger. That translates to nearly 229,500 Iowans, including 80,190 children.

“Iowa pig farmers care about the people of this state and the animals we raise,” said Trish Cook, a pig farmer in Winthrop and IPPA president. “This fun event will provide some delicious pork not only for attendees, but also for food-insecure Iowans in our communities.”

One of the highlights of the event is a Backyard BBQ Competition. More than $10,000 in cash prizes are available and attendees can help determine the winners of the charity competition. All 30 slots the Backyard BBQ Competition are full. The meat for the competition will be provided by Berkwood Farms and the Iowa Pork Producers Association. Fareway Stores will be providing numerous resources for BBQ and Brew at the Ballpark.

In addition, a free pork barbecue bootcamp will be led by Speed “The Sauceman” Herrig, of Iowa-based Cookies Food Products, and Joe Osbrink, from the Iowa Barbecue Society. They will offer tips for prepping, seasoning, and cooking the perfect pork.

Music, food vendors, door prizes, and other entertainment are also planned for this family friendly event. Emceeing the festivities is Jackie Schmillen, a former Des Moines-area television personality who is now the director of public affairs for the Iowa National Guard and promoter of all great things happening in Central Iowa.

While no baseball game is scheduled at Principal Park that day, the stadium will be open for the event.  

“We love when the ballpark can be a gathering place in the community for fun events that everyone can enjoy,” said Randy Wehofer, assistant general manager of the Iowa Cubs. “We appreciate the partnership with the Iowa Pork Producers Association and Cactus Cares to create something that combines great food, great fun, and great service to our community.”

To get more information about BBQ & Brew at the Ballpark, visit IowaPork.org.



May Milk Production in the United States up 0.6 Percent

Milk production in the United States during May totaled 19.9 billion pounds, up 0.6 percent from May 2022. Production per cow in the United States averaged 2,108 pounds for May, 10 pounds above May 2022. The number of milk cows on farms in the United States was 9.43 million head, 13,000 head more than May 2022, but unchanged from April 2023.

Iowa: Milk production in Iowa during May 2023 totaled 510 million pounds, up 3 percent from the previous May according to the latest USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during May, at 239,000 head, was unchanged from last month but up 5,000 from May 2022. Monthly production per cow averaged 2,135 pounds, up 10 pounds from last May.



NPPC Statement on California Proposition 12 Implementation Modification
National Pork Producers Council CEO Bryan Humphreys
 
“It is welcome news to America’s pig farmers and consumers that California recognized the challenging situation the July 1 Proposition 12 implementation date will have on our industry and food supply. Granting six months of additional relief for products in the supply chain allows grocery stores to remain stocked so the 40 million Californians have uninterrupted access to affordable, safe and nutritious pork products, especially with rising food prices.
 
“We appreciate Governor Newsom, Attorney General Bonta, and the California Department of Food and Agriculture for their efforts over the past month to find a solution to achieve a smoother transition for the entire pork value chain, including our foreign trading partners.
 
“While this temporary solution does not solve the challenges and uncertainty California Proposition 12 brings to our industry, NPPC looks forward to working with Congress to find a permanent solution to this problem.”



EPA Finalizes New Renewable Fuel Standards to Strengthen U.S. Energy Security, Support U.S. Rural Economy, and Expand Production of Low-Carbon Fuels

Today, the U.S. Environmental Protection Agency (EPA) issued a final rule under the Renewable Fuel Standard (RFS) program that establishes the biofuel volume requirements for 2023 to 2025. This final rule builds on the RFS program’s progress over the previous two years and reflects the Biden-Harris Administration’s commitment to strengthen the nation’s energy independence, advance low-carbon fuels, and support agricultural communities.

The final rule strengthens U.S. energy security by reducing reliance on foreign sources of oil by roughly 130,000 to 140,000 barrels of oil per day over the time frame of the final rule, 2023–2025. The final rule also discusses EPA’s intent to monitor the ongoing implementation of the RFS program and its impacts on domestic refineries, which have a critical role to play in our energy security.

“From day one, EPA has been committed to the growth of renewable fuels that play a critical role in diversifying our country’s energy mix and combatting climate change, all while providing good paying jobs and economic benefits to communities across the country,” said EPA Administrator Michael S. Regan. “Today’s final rule reflects our efforts to ensure stability of the program for years to come, protect consumers from high fuel costs, strengthen the rural economy, support domestic production of cleaner fuels, and help reduce greenhouse gas emissions.”

The Set Rule establishes the biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2023–2025. It also completes EPA’s response to a court remand of the 2016 annual rule by establishing a supplemental volume requirement of 250 million gallons of renewable fuel for 2023. The final volume targets are as follows:

Volume Targets (billion RINs)
                                            2023       2024        2025
Cellulosic biofuel                0.84        1.09        1.38
Biomass-based diesel         2.82        3.04        3.35      BBD is given in billion gallons
Advanced biofuel               5.94        6.54        7.33
Renewable fuel                  20.94      21.54      22.33
Supplemental standard        0.25       n/a           n/a  .

The Set Rule includes steady growth of biofuels for use in the nation’s fuel supply for 2023, 2024, and 2025. The Energy Independence and Security Act (EISA) of 2007 does not specify statutory volumes after 2022, and EPA in this rule is establishing final biofuel volume targets for all categories under the “set” authority provided by the Clean Air Act. When determining biofuel volumes for years after 2022, EPA must consider a variety of factors specified in the statute, including costs, air quality, climate change, implementation of the program to date, energy security, infrastructure issues, commodity prices, water quality, and supply.

This final rule increases U.S. energy security by reducing U.S. oil imports by roughly 130,000 to 140,000 barrels of oil per day over the time frame of the final rule, 2023–2025. The anticipated value of the energy security benefits to the US economy ranges from $173-$192 million per year over the time frame of the final rule.

In addition to setting the volume requirements, EPA is finalizing several regulatory changes intended to expand the use of biogas under the program while, at the same time, putting in place provisions that will improve the operation of the RFS program.

The final rule follows a robust engagement strategy and reflects comments from a diverse set of stakeholders on the potential economic impacts of the program. EPA is committed to successful implementation of the program and intends to use all available data and tools to monitor the implementation of the RFS program and its impacts. For example, EPA will within 45 days meet with the Commodity Futures Trading Commission (CFTC) to make sure existing agreements between EPA and CFTC are sufficient to monitor renewable identification numbers (RINs) trades for potential market manipulation. In addition, EPA has identified a clear set of market indicators – from the costs to consumers of transportation fuel to the stability of fuel supplies and domestic refining assets – that it will continue to monitor in real time to ensure successful implementation.

EPA continues to assess the comments received on proposed regulations governing the generation of Renewable Identification Numbers (RINs), which are RFS compliance credits, for electricity made from renewable biomass that is used for transportation fuel (eRINs). The EPA will continue to work on potential paths forward for the eRIN program, while further reviewing the comments received on the proposal and seeking additional input from stakeholders to inform potential next steps on the eRIN program.



Ricketts Comments on New Renewable Fuel Standard Set Rule

Today, U.S. Senator Pete Ricketts (R-NE) released the following statement in response to the Environmental Protection Agency’s (EPA) Renewable Fuel Standard (RFS) Set Rule:

“The Administration knew this was a garbage rule, which is why they chose to brief only Democratic lawmakers and staff before its release. Joe Biden has clearly given up on farmers in midwestern states by making this bipartisan issue a partisan one.”



NE Ethanol Board on RFS 2023-2025 Final Set Rule Issued by EPA
 
The U.S. Environmental Protection Agency (EPA) has issued the final set rule of the Renewable Fuel Standard (RFS). The rule sets renewable volume obligations (RVOs) for the next three calendar years. The total renewable fuel RVOs in the final rule are 20.94 billion gallons for 2023, 21.54 billion gallons for 2024, and 22.33 billion gallons for 2025. The conventional renewable fuel RVO, which includes corn ethanol, is set at 15 billion gallons for 2023, 2024, and 2025 each year. Overall, the RVOs in the final rule include lower volumes for advanced, cellulosic, and conventional biofuels and higher volumes for biomass-based diesel than the originally proposed rule published Dec. 30, 2022.
 
“While we are encouraged that EPA continues to call for higher volumes of renewable fuels year over year, we are disappointed that the final RVOs are significantly lower than originally proposed for conventional and cellulosic biofuels,” said Reid Wagner, executive director of the Nebraska Ethanol Board (NEB). “Our current ethanol infrastructure has the capacity today to easily meet the originally-proposed 15.25 billion gallon conventional biofuel requirement, and a growing number of ethanol producers are deploying technologies for processing corn kernel fiber into ethanol, which will contribute significant volumes of cellulosic biofuel soon. Ensuring adequate RVOs aids in market development as the ethanol industry works to expand access to its products. By sidelining these low-carbon biofuels options, EPA is effectively leaving tools in the box that could be used to accomplish their decarbonization goals.”
 
The final rule also includes a cumulative 550-million-gallon increase in the biomass-based diesel RVO, from the originally proposed rule. “In sectors that are more difficult to electrify, namely heavy-duty transport, renewable diesel and biodiesel will continue to play a key role in decarbonization efforts,” Wagner said. “The final biomass-based diesel RVO is certainly trending in the right direction, but still may not be sufficient to capture the rapid growth in capacity of renewable diesel and biodiesel production.”
 
The final set rule also did not include provisions related to RINs generated from renewable electricity (eRINs), as it did when it was first proposed.



EPA Misses Decarbonization Opportunities with Final Renewable Fuel Volumes

The Iowa Soybean Association (ISA) and Iowa Biodiesel Board (IBB) today expressed frustration in the amount of biodiesel that oil refiners will be required to blend into their petroleum diesel products nationally. The Environmental Protection Agency (EPA) finalized modest increases in the biomass-based diesel and non-cellulosic advanced volumes for the federal Renewable Fuel Standards for 2023, 2024 and 2025, the groups said.
 
In the final rule, EPA increases RFS volumes for biodiesel and renewable diesel by only 60 million gallons in 2023, 220 million gallons in 2024, and 310 million gallons in 2025. Although the outyears had more significant increases in this category from the initial proposal, the agency did not listen to industry concerns and left 2023 at the original proposal level of 2.82 billion gallons.
 
Grant Kimberley, executive director of IBB and senior director of market development at ISA, issued the following statement:
 
“We’re disappointed that in this rule, EPA fails to recognize the valuable role fuels like biodiesel can play right now in meeting ambitious carbon reduction goals. Despite an earlier pledge of an ‘upward trajectory’ for biomass-based diesel, EPA has instead provided only nominal growth. That sends mixed signals to our biodiesel producers, domestic crush industry and the farm economy. This could have a chilling effect on future investments in low-carbon domestic fuel production, which would run contrary to the administration’s goals.
 
“EPA must follow established methods for overdue rules and consider the fuel gallons already available to meet the volumes. EPA’s own data show a rapid rise in production already for 2023 - and their low volumes will have a negative effect on the renewable fuel market. While we welcome other technologies that could be brought to scale to aid long-term climate goals decades in the future, it appears the obvious here-and-now solution continues to be overlooked. Rather than encouraging a diverse supply of clean energy, the administration chooses to placate oil refineries and help them minimize their compliance with investing in renewable fuels.”
 
Randy Miller, ISA president and soybean farmer near Lacona, issued the following statement:
 
“The biomass-based diesel volumes set by EPA are behind the times, failing to consider the increase in U.S. production of biodiesel, renewable diesel and sustainable aviation fuel we’ve seen. They are also out of touch with the growing domestic availability of low-carbon feedstocks for the production of these fuels, such as soybean oil.
 
“The administration’s Sustainable Aviation Fuel Grand Challenge sets a goal for 3 billion gallons of SAF. Anything less than substantial growth in biomass-based diesel fuels each year under the RFS is inconsistent with signals from administration and congressional priorities. Now is the time for EPA to throw its full support behind the production of renewable fuels. This would help meet ambitious climate goals while expanding agriculture markets and supporting rural economies.”



ICGA Disappointed in EPA’s RFS Announcement

Today, the EPA announced the Renewable Fuel Standard (RFS) volumes for 2023 through 2025, bringing down the number of conventional gallons of ethanol resulting in a decrease of corn grind for the Iowa farmer.

“Iowa corn farmers are extremely disappointed to hear that EPA is reducing the RFS volumes. This proposal fails on all fronts in promoting sustainable fuel options available to American consumers,” said Denny Friest, Iowa Corn Growers Association President from Radcliffe, Iowa. “The EPA needs to stop disgracing Iowa farmers and their renewable homegrown, more affordable, clean-burning fuels that are readily available today. Its time the EPA is held to a higher standard and restore the intent and strength of the RFS.”



Secretary Naig Comments on EPA’s RFS Volumes

Iowa Secretary of Agriculture Mike Naig released the following statement today after the Biden Administration released the Renewable Fuel Standard (RFS) volumes for 2023, 2024, and 2025 via a final rule:

“The EPA’s final RFS volumes fail to meaningfully expand access to homegrown, domestic sources of energy like ethanol and biodiesel. While the increased blend levels for biodiesel and renewable diesel in this final rule are a slight improvement, the targets are still below production and usage levels. Additionally, the Biden Administration chose to do so at the expense of ethanol, therefore pitting one biofuel against another. Biofuels reduce costs at the pump for consumers, are cleaner burning for our environment, support our rural communities and move our country closer to energy independence. It’s unfortunate that the Biden administration fails to fully support these significant and widespread benefits for both farmers and consumers.”



Clean Fuels Slams EPA’s Final RFS Biomass-based Diesel Volumes

Today, Clean Fuels Alliance America expressed extreme disappointment with the Environmental Protection Agency’s final Renewable Fuel Standards for 2023, 2024 and 2025. EPA finalized moderate increases in the biomass-based diesel and non-cellulosic advanced volumes each year but did not increase the overall renewable fuel market. EPA failed to change biomass-based diesel volumes for 2023 despite the rapid increase in U.S. production of biodiesel, renewable diesel and sustainable aviation fuel during the first months of the year.

“EPA is undercutting the certainty that our industry hoped for from a three-year RFS rule,” said Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “U.S. clean fuel producers, oilseed processors, fuel distributors and marketers have all made significant investments to grow the industry rapidly over the next several years. The industry responded to signals from the Biden administration and Congress aiming to rapidly decarbonize U.S. fuel markets, particularly aviation, marine, and heavy-duty transport, and make clean fuels available to more consumers. The volumes EPA finalized today are not high enough to support those goals.”

“Clean Fuels appreciates the bipartisan support of Representatives, Senators and Governors who asked EPA to ensure that final volumes supported achievable, aggressive growth of advanced biofuel volumes,” Kovarik added. “It is a shame that EPA failed to fully consider the data provided by other federal agencies and industry experts demonstrating the upward trajectory of our industry.”

“Worst of all, EPA ignores the hundreds of millions of gallons of biodiesel, renewable diesel and sustainable aviation fuel generated in the first half of 2023,” Kovarik continued. “In past years when EPA set RFS volumes after the statutory deadline and after the compliance year is nearly half over, the agency properly accounted for available gallons and RINs.”

EPA’s Public Data for the Renewable Fuel Standard shows that qualifying biomass-based diesel production increased by more than 30% -- or 400 million gallons – in the first five months of 2023, compared to the same period in 2022. The Energy Information Administration’s Short Term Energy Outlook for June 2023 projects increases in U.S. production of biodiesel and renewable diesel of more than 800 million gallons in 2023 and 900 million gallons in 2024. In the final rule released today, EPA increases RFS volumes for these fuels by only 590 million gallons over the three-year period: 60 million gallons in 2023, 220 million gallons in 2024, and 310 million gallons in 2025.



RFA: Final RVO Rule Fails to Deliver on Promise of Original Proposal

The 2023-2025 Renewable Fuel Standard volumes finalized today by the Environmental Protection Agency mark an unfortunate step backward from the volumes that were originally proposed, according to the Renewable Fuels Association.

EPA’s final rule includes conventional renewable fuel requirements of 15 billion gallons for both 2024 and 2025, down from the proposed volumes of 15.25 billion for both years. RFA called the reductions “inexplicable and unwarranted.”

“The RFS was intended to drive continual growth in all categories of renewable fuels well beyond 2022; instead, today’s final rule flatlines conventional renewable fuels at 15 billion gallons and misses a valuable opportunity to accelerate the energy sector’s transition to low- and zero-carbon fuels,” said RFA President and CEO Geoff Cooper. “By removing half a billion gallons of lower-carbon, lower-cost fuel, today’s rule needlessly forfeits an opportunity to further enhance U.S. energy security and provide more affordable options at the pump for American drivers.”

Despite the rule’s failure to finalize the strong proposed conventional renewable fuel volumes, the action “includes solid volumes for other renewable fuel categories and brings some stability and predictability to the marketplace for the next two and a half years,” Cooper said. “Despite the disappointing reduction in conventional renewable fuel numbers, we appreciate the fact that President Biden and EPA Administrator Michael Regan have continued to prioritize renewable fuels in our nation’s energy and climate strategy.”

EPA’s final rule includes a total volume obligation of 20.94 billion gallons for 2023, of which 15 billion gallons will come from conventional renewable fuels like corn ethanol. The rule also includes a supplemental volume requirement for 250 million gallons in 2023 to make up for illegally waived volumes in 2016. EPA finalized total volumes of 21.54 billion and 22.33 billion gallons in 2024 and 2025, respectively, with conventional renewable fuel requirements of 15 billion gallons for each of those two years.

RFA also welcomed EPA’s announcement that it would not implement RINs for electricity (eRINs) as part of today’s final rule. As the organization noted in oral testimony and written comments to EPA, the agency’s initial proposal for incorporating eRINs into the RFS was overly complex and inconsistent with RIN generation provisions for all other renewable fuels. RFA joined several other stakeholder groups in encouraging EPA to reconsider its eRIN proposal and take more time to get it right.

“We appreciate that EPA was responsive to the many questions and concerns raised by numerous stakeholders regarding eRINs, and we believe the agency did the right thing by calling a timeout on implementation of those provisions,” Cooper said. “We look forward to continuing to engage with EPA on the best methods for bringing renewable electricity into the RFS program.”



Growth Energy: EPA's Final RFS Rule Undermines Low-Carbon Biofuel Growth Potential

Growth Energy CEO Emily Skor issued the following statement after the U.S. Environmental Protection Agency (EPA) released its final renewable volume obligations (RVOs) for 2023-2025 under the Renewable Fuel Standard (RFS), also known as the Set.

“The RFS remains one of America’s most successful clean energy policies, but, yet again, its full potential as a climate solution remains untapped. EPA’s decision to lower its ambitions for conventional biofuels runs counter to the direction set by Congress and will needlessly slow progress toward this administration’s climate goals.

“We should be expanding market opportunities for higher blends like E15, not leaving carbon reductions on the table.
 
“While the final rule offers a modest improvement in advanced volumes, EPA inexplicably failed to extend that recognition to conventional biofuels. The bioethanol industry has more than adequate supply to meet the higher volumes that were originally proposed in December 2022. Choosing not to put that supply to good use in decarbonizing the transportation sector runs counter to this administration's previously-stated commitments and undermines the goal of reaching net-zero by 2050."



EPA Sets Final Renewable Fuel Volumes for 2023-2025

The U.S. Environmental Protection Agency today released final volume requirements under the Renewable Fuel Standard for 2023, 2024 and 2025, providing for annual growth in total renewable fuel volumes, although with lower conventional biofuel volumes than EPA had proposed.

For 2023, EPA set an implied 15.25-billion-gallon requirement for conventional ethanol, which includes a supplemental 250 million gallons a prior court decision required EPA to restore to the RFS. For 2024 and 2025, EPA holds the implied conventional volume level at 15 billion gallons, despite proposing 15.25 billion gallons for those two years.

“Today’s final RFS volumes came in below levels EPA proposed for conventional biofuels for 2024 and 2025, holding ethanol volumes steady at 15 billion gallons,” said NCGA President Tom Haag. “A multi-year RFS volume rule offers stability and certainty for renewable fuels. However, when it comes to addressing pressing energy, environmental and economic challenges, EPA’s final rule falls short of the emission reductions and cost-saving benefits the higher proposed ethanol volumes would have provided.”

Separate from the volumes, Haag noted corn growers appreciate that EPA did not finalize a proposal to create a new program to generate RFS credits from automakers for electricity from renewable biomass, referred to as e-RINS.

“NCGA and its members strongly urged EPA to separate its e-RIN proposal from the RFS volumes because the proposal was wholly inconsistent with the way the RFS functions for other fuels and created an unlevel playing field across the RFS,” said Haag.

The RFS requires annual volumes of renewable fuels, such as ethanol, be used in the fuel supply to reduce emissions, expand and diversify the supply, improve energy security and lower costs.

The 2023-2025 volume is EPA’s first RFS rule based on qualitative environmental, economic and agricultural factors listed in the statute, rather than specific volumes in law. The new process allows EPA greater latitude, which the agency used to build on the strong baseline of the 2022 RFS volumes.



Soy Growers to EPA: Final RVOs Severely Undercut Rapid Growth, Potential of the Biofuels Industry

The Environmental Protection Agency released its final Renewable Volume Obligations for 2023, 2024, and 2025, which sets annual biofuel blending targets under the Renewable Fuel Standard. Soy growers are expressing disappointment, as the rule does not accurately reflect the growth expected in the industry and falls far below the industry’s current production.

The 2023 finalized rule made zero increases to the 2023 volumes compared to the draft rule. For 2024 and 2025, EPA made modest increases compared to the draft rule.

The total volumes for 2025 represent just over a 20% growth over the 2022 biomass-based diesel RVOs previously set by EPA. However, these totals match current production levels and do not actually account for growth in the industry. The Energy Information Administration predicts an increase in BBD production of over 800 million gallons in 2023 alone. The final rule offers RFS volume increases of just 590 million gallons over the course of three years.

“This announcement is a letdown for soy growers. It threatens the success of the biomass-based diesel industry by significantly dialing back annual increases in volume obligations and failing to account for the progress being made in biofuels investment and growth,” said American Soybean Association President Daryl Cates, a soybean grower from Illinois. “Farmers and biomass-based diesel producers face real, concerning consequences from low RFS volumes that do not reflect current production and demand, and we’re disappointed in this lack of support for the industry."

ASA has steadily called on EPA and the administration to raise volumes to a level that will continue to support growth of the biofuels industry.

Biomass-based diesel is a vital domestic market for soybean farmers. The RFS has reduced U.S. dependence on foreign oil, reduced greenhouse gas emissions, and added value by increasing demand for soybeans and corn. Billions of dollars are being invested in biodiesel, renewable diesel, soybean crushing plants and other infrastructure to be able to produce more BBD.

The expanded crush capacity companies have announced for the next three years would increase soybean oil supplies by about 5.5 billion pounds. This translates into about 700 million gallons of renewable diesel, far above EPA’s three-year RVO growth of only about 590 million gallons. Adding growth from other feedstocks to the announced crush expansion creates a feedstock-abundant situation.

“EPA’s final rule undercuts these investments, and the market may not be able to absorb the expected future production,” Cates said. “It’s also a huge, missed opportunity for a low-carbon fuel to reduce greenhouse gas emissions and scale back the country’s reliance on imported oil.”

Soy farmers were encouraged by EPA’s 2022 volume target—which included the highest-ever number for total renewable fuels and specifically for biomass-based diesel since the renewable fuel standard was created—and were hopeful EPA would continue its support of the RFS. However, EPA’s final rule will limit growth in soy-based biofuels over the next three years and leaves farmers and biofuels industry partners reeling.



ACE Statement on EPA’s Final RFS Ruling for 2023–2025 Volumes

Today, the U.S. Environmental Protection Agency (EPA) finalized Renewable Volume Obligations (RVOs) for the 2023-2025 Renewable Fuel Standard (RFS) compliance years, including restoring the final 250 million gallons in remanded volume by the DC Circuit Court in 2017. American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following reaction to EPA’s final rule:
 
“If EPA’s goal with the Renewable Fuel Standard is to maximize reductions in greenhouse gas (GHG) emissions from the transportation sector, today’s final rule falls short by arbitrarily limiting conventional biofuel use to 15 billion gallons in 2024 and 2025 compared to the Agency’s proposal of 15.25 billion gallons for each of those years. Higher blending targets would enable fuels such as E15 and E85 to quickly displace carbon pollution from gasoline, but EPA’s proposal will rein in those opportunities.
 
“We are supportive of finalizing the 250-million-gallon remedy as a supplemental requirement for 2023 and agree with removing the controversial eRIN proposal from the final rule.
 
“ACE’s experience with EPA’s oversight of the RFS over time requires us to remain vigilant to ensure mismanagement or unwarranted waivers are not used to undermine the physical blending of ethanol that has required litigation to rectify in previous years. We will also continue to press the Agency to once and for all update its antiquated greenhouse gas (GHG) model assumptions about corn ethanol. We continue to urge EPA to follow the science and adopt the latest GREET model for its lifecycle modeling, consistent with what Congress required of Treasury in the Inflation Reduction Act 45Z clean fuel production tax credit.”



NFU Statement on EPA Blending Volumes for Renewable Fuels

Today, the Environmental Protection Agency (EPA) announced biofuel blending volumes for 2023, 2024, and 2025 that included volumes for advanced biofuels like biodiesel, renewable diesel, and corn ethanol.  

“Today’s modest increase in advanced volumes is a step in the right direction for family farmers and the biofuels economy, but also a missed opportunity to further incentivize carbon reductions,” said NFU President Rob Larew. “Unfortunately, EPA did lower the conventional corn-based ethanol volumes and in doing so overlooked the benefits to consumers for lower priced, cleaner burning fuel.   

NFU continues to be a strong supporter of higher-level blends of ethanol, which can contribute to a green energy transition and provide economic opportunities to rural communities.



Anhydrous, UAN32 Lead Fertilizer Prices Lower

Retail fertilizer prices tracked by DTN for the second week of June 2023 continued the trend of moving lower compared to a month ago. This trend has been in place since the beginning of 2023. Six of the eight major fertilizers were less expensive compared to last month. Only two fertilizers were considerably less expensive. DTN designates a significant move as anything 5% or more.

Anhydrous was 13% lower compared to the prior month, and the nitrogen fertilizer had an average price of $781 per ton. UAN32 was 8% less expensive than last month with an average price of $476/ton. Four other fertilizers were slightly lower compared to last month. DAP had an average price of $823/ton, potash $621/ton, 10-34-0 $737/ton and UAN28 $406/ton.

Just two fertilizers were slightly more expensive compared to a month ago. MAP had an average price of $823/ton, while urea was at $624/ton.

On a price per pound of nitrogen basis, the average urea price was $0.68/lb.N, anhydrous $0.48/lb.N, UAN28 $0.73/lb.N and UAN32 $0.74/lb.N.

All fertilizers are now lower by double digits compared to one year ago. 10-34-0 is 19% less expensive, DAP is 21% lower, MAP is 23% less expensive, potash is 29% lower, both urea and UAN32 are 35% less expensive, UAN28 is 36% lower and anhydrous is 49% lower compared to a year prior.



USDA Reminds Producers to File Crop Acreage Reports by July 17, Use New Online Map Features on Farmers.gov

Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local U.S. Department of Agriculture (USDA) office before the applicable deadline, which for many places and crops is July 17. USDA’s Farm Service Agency (FSA) also reminds producers with login access to farmers.gov of several features that can help expedite acreage reporting, such as the ability to view, print and label maps.

“Regardless of the size of your operation or its location – rural or urban – filing an accurate and timely crop acreage report is an important step in receiving USDA program benefits, including safety net, conservation, and disaster assistance support,” said FSA Administrator Zach Ducheneaux. “Once you’re finished planting, please call your FSA county office to make an appointment to report your acres. While you’re there, you can also check with your local FSA staff to see if there are any other program applications that can be completed during the same office visit. Additionally, if you have a farmers.gov profile or if you’d like to create one, log in to prepare your maps to save time.”      

An acreage report documents the crops grown and their intended uses. Filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planted acreage, is necessary to participate in many USDA programs. July 17 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop.

Producers should also report crop acreage they intended to plant but were unable to plant because of a natural disaster. Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date. Final planting dates are established by FSA and USDA’s Risk Management Agency (RMA) and vary by crop, planting period and county.

How to File a Report
Producers can contact their FSA county office for acreage reporting deadlines that are specific to their county.  

To file a crop acreage report, producers need to provide:
    Crop and crop type or variety;
    Intended use of the crop;
    Number of acres of the crop;
    Map with approximate boundaries for the crop;
    Planting date(s);
    Planting pattern, when applicable;
    Producer shares;
    Irrigation practice(s);
    Acreage prevented from planting, when applicable;
    Other information as required.

Acreage Reporting Exceptions
The following exceptions apply to acreage reporting dates:

    If the crop has not been planted by the acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed.

    If a producer acquires additional acreage after the acreage reporting date, then the acreage must be reported no later than 30 calendar days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office.

    Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP-covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins.

Farmers.gov Portal
Producers can access their FSA farm records, maps and common land units through the farmers.gov portal. Through a new mapping feature, producers can import and view other shapefiles, such as precision agriculture planting boundaries. This allows producers to view, save, print and label their own maps for acreage reporting purposes. To access mapping features and other helpful on-line tools, producers need level 2 eAuth access linked to their Business Partner customer record. Visit farmers.gov/account to learn how to create a farmers.gov account.  

In addition to mapping tools, a farmers.gov account offers a variety of self-service opportunities for FSA and Natural Resources Conservation Service (NRCS) customers, including managing FSA farm loans and NRCS conservation contracts.



Chairman Thompson, Ranking Member Scott Announce Bipartisan Working Group Tackling Agriculture Workforce Challenges

House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) and Ranking Member David Scott (GA-13) released the following joint statement after announcing the formation of the bipartisan Agricultural Labor Working Group, focusing on the workforce issues faced by the nation's agricultural producers:

“The Committee on Agriculture has heard loud and clear from producers across the nation that one of the biggest challenges confronting the agriculture industry is a lack of reliable labor. Though not directly in our committee’s jurisdiction, we have a responsibility to be a voice in Congress on the issues and policies impacting farmers and ranchers. This is a complex problem that deserves the focused attention of the Members who hear from producers every day rather than the partisan grandstanding that has plagued these efforts in the past.”

Members of the working group have been selected from current Committee members and aim to represent every sector and geographical region of American agriculture.

Congressmen Rick Crawford (AR-01) and Don Davis (NC-01) will co-chair the working group. The working group will:
    Seek input from stakeholders, employers, and workers, particularly emphasizing the H-2A visa program for nonimmigrant agricultural workers;
    Produce an interim report detailing the program's shortcomings and the impacts on food security, and;
    File a final report with recommendations to address the flaws within the program.

“A robust agriculture industry starts with a strong and healthy workforce. However, due to a labor shortage, American farmers are increasingly turning to overseas workers to fill positions on the farm. Unfortunately, this is not an easy process because our visa policies and regulations have become convoluted and burdensome. Reforms are desperately needed to address this pressing issue. I look forward to working with my colleagues on both sides of the aisle to find commonsense solutions that help our farmers and producers better staff the farm to help feed and clothe the world,” said Rep. Crawford.

“I hear from farmers and producers daily about their need for more workers to ensure they can grow the food that feeds all of us. I look forward to working with my fellow Co-Chair, Representative Rick Crawford, and the other Members of the Agriculture Labor Working Group to come together and craft bipartisan solutions to the labor issues that farmers and producers face. I thank Chairman Thompson and Ranking Member Scott for appointing me to serve as one of the Co-Chairs of the bipartisan Agriculture Labor Working Group," said Rep. Davis.

The final report of the working group will provide a suite of potential solutions that can inform and be utilized in subsequent legislative efforts.



Farmers Need Answers to Labor Challenges

American Farm Bureau Federation President Zippy Duvall commented today on the House Agriculture Committee formation of a bipartisan Agricultural Labor Working Group to address pressing issues facing farmers.

“AFBF appreciates Chairman GT Thompson and Ranking Member David Scott for coming together to investigate the labor challenges facing America’s farmers and ranchers. Labor is one of the biggest limiting factors facing agriculture, and farmers need a system that provides long-term stability. We are committed to engaging with the newly formed working group to address meaningful H-2A reform and a reasonable wage rate that enables farmers and their employees to continue meeting the needs of America’s families.”