Tuesday June 26 Ag News

Pender Implement to join AgriVision

AgriVision Equipment announced Pender Implement will join AgriVision Equipment in late August 2018. Pending Deere and Company approval.

AgriVision Equipment and Pender Implement have a long and successful heritage of serving customers. This new partnership strengthens their commitment to helping customers succeed by providing them access to first class service, technology, support and innovation.

“For the last 6 years or so, we have actively searched for other organizations that we felt were worthy partners to help us continue the level of customer service and support that our customers deserve. I am happy to announce that we have found that partner in AgriVision Equipment.” says Reed Allen, President & CEO of Pender Implement.

AgriVision Equipment brings an innovative partner approach to the business, assisting customers in solutions far beyond equipment and technology. “Customers are the foundation of our mutual success and AgriVision Equipment takes pride in knowing our customers on a personal and professional level. We strive to help customers and their communities find comprehensive solutions to their challenges and opportunities,” says Jeremy Ostrander, CEO of AgriVision Equipment.

The AgriVision Equipment team is eager to add the Pender location into our family of stores. The transition is expected in late August, 2018.

Rooted in 100+ years of Midwestern farm heritage, AgriVision Equipment will now have 17
convenient locations serving customers throughout Iowa, Nebraska, Missouri and South
Dakota.



New Farm/Ranch Employee Intake
Larry Howard, NE Extension Educator, Cuming County

When bringing in a new employee into a farm or ranch, it is a good practice to follow a Standard Operating Procedure (SOP) for the new employee orientation.  Robert Tigner, Nebraska Extension
Agricultural Systems Economist, recently shared a suggested SOP for new employees.

1) Background and overview of the farm or ranch: The new employee can benefit from an understanding of the full operation of the farm or ranch. The layout of the farm or ranch, the introduction of the new employee to current employees and all the management. This is a good time to discuss the history and goals of the farm or ranch. In the future an employee can then make suggestions for changes or improvements to the farm or ranch based on their understanding of the goals of the farm or ranch.

2) Employment policies: All farms and ranches can benefit from an employee policy document. The process of developing one forces the farm or ranch to think through issues they may have to deal with at some time. The policies document also assures that all employees are treated equitably. Intake or orientation is the time to introduce the new employee to the farm policies.

3) Introductions: Introduce the new employee to current employees and suppliers. During these introductions, the current employees should be told what responsibilities that the new employee will have and what the chain of command will be. This helps everyone understand the roles and responsibilities of all the employees and eases the new employee into the farm operations. An organizational chart helps here.

4) Job Duties: During the hiring process, the new employee will certainly have a basic understanding of what the new job will entail. But now is the time for the employer to get into more specifics of the job responsibilities. But also this can be the time when more extensive training can begin. Even though the new employee will likely have a number of the skills the employer sought, he or she won’t know the specific way your operation does something. This training period will set the employee up for success and contribute to the farm or ranch operation.

Mentoring should also be considered as part of the intake process for a new employee. The men
tor provides training and a sounding board for the new employee. The mentor can also be the person who helps the employee become part of the work and social network at the farm or ranch. That networking can improve job efficiency and effectiveness.

New employee orientation should be consistent. This means the same person should conduct orientation of all employees and should follow a standard procedure. Write down the process to assure all of the aspects of orientation take place. The procedure development should include key farm and ranch personnel thus providing buy-in on the orientation process. If any documents are to be given to the new employee, have them ready for the new employee when he or she arrives for their first day of the new job. This presents a professional image to the new employee and starts the new job off on the right foot.



 Bipartisan Group of Senators Introduce Proposal to Provide Greater Flexibility to Agriculture Transporters

A bipartisan group of 24 senators today filed an amendment to the farm bill that would provide an hours of service exemption for certain agriculture transporters, including livestock haulers, which would provide greater flexibility to operators throughout the country.

The amendment, led by U.S. Sens. John Thune (R-S.D.), chairman of the Senate Commerce Committee and a longtime member of the Senate Agriculture Committee, Bill Nelson (D-Fla.), ranking member of the Senate Commerce Committee, and Deb Fischer (R-Neb.), a member of the Senate Commerce Committee and Senate Agriculture Committee, would ensure that the exemption for operations within a 150 air-mile radius from the source of an agricultural commodity applies year-round and does not vary from one state to another for certain months of the year. The exemption currently applies to the planting and harvesting period, as determined by each state. It would also provide an additional 150 air-mile exemption on the back end of a trip, as it currently exists on the front end.

“This proposal takes into consideration the unique and often challenging requirements that exist in the agriculture community, particularly the hurdles of getting products from one location to another in a safe and timely manner,” said Thune. “As a member of both relevant committees, I’m glad that we were able to work together to craft this additional flexibility for producers throughout South Dakota. It’s a good, common-sense amendment, and I hope it’s adopted without delay.”

“This is a reasonable approach that should provide some relief for farmers and ranchers who worry about getting their livestock safely to market,” said Nelson.

“In Nebraska, ag commodity and livestock haulers are concerned,” said Fischer. “They know how difficult and stressful it would be to stop midway through a haul and unload livestock. That’s why I’m introducing this bipartisan amendment today with Senators Thune and Nelson that builds on my past efforts bringing further flexibility to hours of service rules for our ag and livestock haulers.”

U.S. Sens. Roy Blunt (R-Mo.), Heidi Heitkamp (D-N.D.), Jim Inhofe (R-Okla.), Tina Smith (D-Minn.), Cory Gardner (R-Colo.), Joe Donnelly (D-Ind.), Jerry Moran (R-Kan.), Doug Jones (D-Ala.), Steve Daines (R-Mont.), Amy Klobuchar (D-Minn.), Ron Johnson (R-Wis.), Jon Tester (D-Mont.), John Boozman (R-Ark.), Claire McCaskill (D-Mo.), John Hoeven (R-N.D.), Tammy Duckworth (D-Ill.), John Barrasso (R-Wyo.), Tom Cotton (R-Ark.), Mike Rounds (R-S.D.), Jim Risch (R-Idaho), and Orrin Hatch (R-Utah) joined Thune, Nelson, and Fischer on the measure.

The National Cattlemen’s Beef Association, National Pork Producers Council, Livestock Marketing Association, American Farm Bureau Federation, American Horse Council, American Honey Producers, American Sheep Industry Association, National Aquaculture Association, and Bee Federation all support the amendment.



Nebraska Soybean Board to Hold July Meeting

The Nebraska Soybean Board (NSB) will hold its board of directors meeting July 9–10 at Pheasant Bonanza Lodge in Tekamah. Much of the meeting will be spent hearing and discussing project proposals for the 2019 fiscal year.

The first day’s session will also include strategic planning, informational reports and committee meetings.

Day two includes committee reports, strategic plan review and a presentation from Susan Green of Northeast Community College’s Agriculture & Water Center of Excellence. A full agenda can be found at NebraskaSoybeans.org.



Agricultural Economic and Technology Summit Focuses on Agriculture’s Economic Outlook, Technology, Trade, Cattle Markets, and More

Trade disputes, dwindling returns, changing technologies, fickle consumer tastes, global economics . . . the challenges and opportunities in agriculture change daily. The 2018 Agricultural Economic and Technology Summit offers up the best opportunity to stay on top of the changes in agriculture, mingle with agriculture’s leading players, and discuss issues facing agriculture. The Agricultural Economic and Technology Summit, to be held at the Kearney Holiday Inn, July 17-18, is a partnership between Nebraska Farm Bureau, the University of Nebraska-Lincoln Agricultural Economics and Biological Systems Engineering Departments and KRVN Rural Radio Network.

“We know farmers and ranchers are terribly busy right now trying to stay up with their growing crops and livestock. The summit offers them the opportunity to get away from the day-to-day grind, learn about long-term trends affecting their operations, and get the latest happenings in the world of agriculture. Plus, those attending can compare notes with fellow producers and others involved in agriculture from across the state on how the year is going so far,” said Jay Rempe, Nebraska Farm Bureau senior economist.

The summit is recommended to producers, ag-business professionals, and consultants and is packed with leading national experts like: Jason Henderson of Purdue University, offering his big picture outlook for the agricultural economy; Brian Watkins of Cropzilla, on Ag Technology; Dick Wittman of Wittman Consulting, on farm and ranch transitions; and Brian Kuehl of Farmers for Free Trade, on the trade roller coaster and how that impacts farmers/ranchers and the agriculture economy.

The Agricultural Economic and Technology Summit will also feature a series of breakout sessions to dig deeper into a range of subjects important to agriculture today. Topics include; what successful farms are doing right, UNL-Testing Ag Performance Solutions program, economics of technology applications, big data = better beef, farm policy updates, and data intensive farm management.

"These breakouts will give the summit participants the ability to focus on the topics that are most interesting and critical to the health of their farms and ranches," Rempe said.

Information on the summit, including an online registration form and agenda, can be found at www.nefb.org/agecontech or contact Whittney Kelley at (402) 421-4760 or via email at whittneyk@nefb.org.



MANAGING WINDROW DISEASE IN ALFALFA
Bruce Anderson, NE Extension Forage Specialist

               Rained-on hay plagues all of us eventually.  This year maybe more than usual.  The 'windrow disease' that often follows presents lingering problems.

               Windrow disease — that’s the name I give to the striped appearance in fields where alfalfa windrows remained so long that regrowth was delayed.  Usually it’s due to rained on hay and sometimes, insects.

               Windrow disease presents special challenges.  Weeds often invade, requiring spraying to maintain quality and protect stands.  During the next growth period, plants that were not smothered regrow rapidly, while plants underneath the windrow suffer delays.  Part of the field often will begin to bloom while windrow-stressed plants are still short and tender.  So when do you harvest?  When the first plants begin to bloom or do you wait until injured plants are ready?

               I suggest using two factors to tell you when you should cut — the health and vigor of your stand and the nutrient needs of your livestock.  For example, is your alfalfa stand young, healthy and regrowing well?  If not, wait to cut until stunted plants begin to bloom so you can avoid weakening them even more.

               But, if your alfalfa is in good shape, then cut when it will best meet the needs of your animals.  Dairy cows need alfalfa that is cut early, so harvest when the first plants reach bud to early bloom stage.  Regrowth of injured plants may be slow after cutting, but this sacrifice is needed for profitable milk production.  Beef cows, though, do not need such rich hay.  So if the hay will be fed to beef cattle, let stunted plants recover, and then cut when they are ready to bloom.

               Hopefully, by next cut, growth will be more uniform, plants healthy, and production back to normal.

FORAGE FOLLOWING WHEAT
               Once your wheat is gone, how do you plan to use that ground after harvest?  With good moisture and lots of growing season left this year there are many forage possibilities.

               Wheat harvest soon will be here.  Afterwards, there will be lots of growing season remaining for producing forage.

               For example, with good moisture an early maturing corn is one possibility for silage if you plant it thick.  A better dryland choice might be a high grain producing forage sorghum if chinch bugs and other insects are not a problem.  Sunflowers can be a surprisingly good choice for a short-season silage.  They survive light frost and yield well under many conditions.

               If hay is preferred, plant sorghum-sudan hybrids, teff, or pearl or foxtail millet when chinch bugs aren't a problem.  A hay crop exceeding two tons per acre can be grown easily if planted soon after harvest and rain is timely.  Another hay or silage alternative is solid-seeded soybeans.  A couple tons of good forage can be grown from taller, full season varieties planted after wheat.  Oats planted in early August is another option.  Yields over two tons are common when moisture is good, fertility high, and your hard freeze comes a little late.

               Definitely consider turnips, as well as oats, for fall pasture planted into wheat stubble in late July or early August.  With a few timely rains in August and September, both oats and turnips produce much high quality feed in a short time.  And, they are relatively inexpensive to plant.

               Don't automatically let your wheat ground sit idle the rest of the year, especially if you could use more forage.  When moisture is available, there are many forage options.  One might be right for you.



USDA FUNDING AVAILABLE TO HELP CONTROL EROSION ON CROPLAND.

Farmers know when they lose soil, they lose profits. Preventing soil erosion is good for the environment and for producers’ bottom line.

The USDA Natural Resources Conservation Service (NRCS) has funding available to help Nebraska’s farmers control erosion on their cropland. This funding is available through a special Ephemeral Gully Control Initiative under the Environmental Quality Incentives Program. Eligible producers have until July 20 to apply.

Controlling erosion is especially important for recipients of USDA program benefits – like federal crop insurance subsidies and conservation program payments. USDA program participants are required to control erosion on all cropland determined to be highly erodible. The funding available through this special initiative can help farmers meet that requirement.

Nebraska State Conservationist Craig Derickson said, “Conservation practices such as cover crops and grassed waterways are good solutions for controlling ephemeral gullies, which is required by conservation compliance provisions. Conservation buffers are effective in controlling erosion from both water and wind and help protect the soil, improve air and water quality, enhance fish and wildlife habitat, and beautify the landscape.”

According to NRCS, over the last couple of decades, there has been a continual decrease in grassed waterways due largely to the adoption of large-scale farming equipment and conservation cropping systems that rely heavily on herbicides to control weeds. On some fields, this has led to increased erosion and ephemeral gullies.

Derickson said, “Ephemeral gullies are those rough spots where water concentrates and causes soil to wash away, creating small ditches. While the damage to cropland appears to be small, if not controlled, the negative impacts like loss of inputs, decreased soil health and yields can be significant. Plus, it can cause farmers to be out of compliance with USDA’s Food Security Act requirements.”

For more information, and to apply for funding through this special initiative, visit NRCS at a local USDA Service Center before July 20.



Minnesota Pig Farmers to Attend Latin American Product Showcase

Minnesota pig farmers Randy Spronk and John Schwartz will travel to the Dominican Republic to attend the 2018 Latin American Product Showcase this week. The two farmers will participate in a market tour, marketing sessions and networking activities designed to highlight U.S. pork to importers in the rapidly growing Latin American export market.

“The Pork Checkoff has worked hard to promote pork globally, with the assistance of USMEF,” said Randy Spronk, a pig farmer from Edgerton, Minnesota. “This showcase is a great example of that effort, and I’m excited to learn about the many opportunities that U.S. pork will have in this market in the future and see our investment at work firsthand.”

This will be the eighth annual showcase held by the U.S. Meat Export Federation (USMEF) and is expected to be the largest to date with roughly 60 exporting companies and 200 meat buyers from across Central America, South America and the Caribbean in attendance. This event provides U.S. exporters and farmers with an opportunity to visit one-on-one with numerous potential buyers in a single location.

A vital part of the showcase is a market tour where the farmers will visit Mercado de Los Mina, a small food market; Pricesmart Store San Isidro, a store similar to a U.S. grocery store; and Supermarket Store La Sirena San Isidro, a store similar to a U.S. supermarket or big box store.

“As a farmer, it will be beneficial to see the similarities and differences in the retail space here in the Dominican Republic compared to our grocery options in the United States,” said John Schwartz, a pig farmer from Sleepy Eye, Minnesota. “I hope to walk away with a better understanding of how pork is being marketed directly to consumers, by retailers, so that we can better supply these customers with the type of products that they want.”

The farmers also will learn about the buying habits of millennials in Latin America and discuss strategies for meat marketing, including price expectations, specific cut opportunities and future menu trends during educational sessions.

Pork Checkoff staff also will attend the Showcase. Craig Morris, vice president of international marketing for the National Pork Board,  will join Spronk and Schwartz in the Dominican Republic for the week. 

“Our NPB International Marketing Committee has highlighted the Latin American market as one of paramount importance for our marketing efforts,” Morris said. “Attending the Latin American Product Showcase is an incredible opportunity to see how we can continue to invest and hone our strategy in this region. I’m excited to hear from our farmers in attendance and get their thoughts on what we are doing well, with an eye on the future.”



EPA Proposes Biofuel Requirements for 2019; On Track to Meet Congressional Deadline

Today, the U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt issued a proposed rule under the Renewable Fuel Standards (RFS) program that would set the minimum amount of renewable fuels that must be supplied to the market in calendar year 2019, as well as the biomass based diesel volume standard for calendar year 2020. 

“I’ve traveled to numerous states and heard firsthand about the importance of the RFS to farmers and local communities across the country,” said EPA Administrator Scott Pruitt. “Issuing the proposed rule on time meets Congress’s statutory deadlines, which the previous administration failed to do, and provides regulatory certainty to all impacted stakeholders.”

Some key elements of today’s action:
-     “Conventional” renewable fuel volumes, primarily met by corn ethanol, would be maintained at the implied 15-billion gallon target set by Congress for 2019.
-    The advanced biofuel standard for 2019 would be increased by almost 600 million gallons over the 2018 standard.
-    The cellulosic biofuel standard for 2019 would be increased by almost 100 million gallons over the 2018 standard.
-    The biomass-based diesel standard for 2020 would be increased by 330 million gallons as compared to the standard for 2019. 
-    Consistent with the Agency’s commitment to improve the program’s implementation, EPA is also taking comment on a host of ways to improve market transparency, including by limiting who can participate in the Renewable Identification Number (RIN) market and the length of time a RIN can be held.

The biomass-based diesel standard for 2019 was set at 2.1 billion gallons in 2018 and cannot be changed.

​The Clean Air Act requires EPA to set annual RFS volumes of biofuels that must be used for transportation fuel for four categories of biofuels: total, advanced, cellulosic, and biomass-based diesel. EPA is using the tools provided by Congress to adjust the standards below the statutory targets based on current market realities. EPA implements the RFS program in consultation with the U.S. Department of Agriculture and the U.S. Department of Energy.



Fischer on EPA’s Proposed 2019 Renewable Volume Obligations

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee and the Senate Environment and Public Works Committee, released the following statement today after the Environmental Protection Agency (EPA) announced the proposed 2019 Renewable Volume Obligations (RVO) at 19.88 billion under the Renewable Fuel Standard (RFS):

“Nebraska is a national leader in ethanol production, and the Renewable Fuel Standard is critical to supporting the state’s economy. I welcome the EPA’s announcement of this proposal, which sets conventional ethanol at 15 billion gallons and increases advanced biofuel gallons. While the renewable fuel volumes proposed are a step in the right direction, continued oversight, especially in regards to small refinery exemption waivers, is needed to ensure the integrity of the RFS and that the law is not compromised.

The EPA is required by law to finalize the upcoming year’s mandates for conventional ethanol and most advanced biofuels by November 30 of the previous year. Following the release of these proposed obligation, a public comment period is open.

With 25 ethanol plants producing more than 2 billion gallons, Nebraska is the second largest ethanol producing state in the nation. Today, ethanol contributes $5 billion to Nebraska’s economy every year.



Ricketts, Ethanol Board Comment on EPA RFS Volumes Proposal

Today, Governor Pete Ricketts, who is a past chair of the Governors’ Biofuels Coalition, issued the following statement on the Environmental Protection Agency’s (EPA) announcement of the proposed renewable volume obligations (RVOs) for 2019 under the Renewable Fuel Standard (RFS).

“Nebraska appreciates the EPA’s continued commitment to the timely release of renewable volume obligations required by the RFS and maintaining conventional biofuel requirements at 15 billion gallons.  We are also pleased to see that cellulosic and biodiesel are going up.  While timely release helps create predictability for producers, the EPA’s practice of granting small refinery waivers erodes producer confidence in the market.  During a recent meeting in Nebraska, Administrator Pruitt talked about reforming the method for reallocating waived gallons.  Producers need predictability from the EPA, and we would like to see his proposal on how to go about doing that as quickly as possible,” said Governor Ricketts.

During the meeting with the Administrator, Governor Ricketts also highlighted the need for robust biofuel targets as an integral part of sustaining domestic demand for biofuels, especially in a challenging trade environment and a time of low commodity prices.

“The 2019 Renewable Volume Obligation announced by the EPA helps get biofuel demand back on track.  However, ethanol producers are wary of the potential to again undermine the requirements via EPA issuance of ‘small refiner’ waivers.  EPA waivers have reduced biofuel demand by an estimated 1.5 billion gallons.  Biofuel producers continue to seek reliable market signals that stimulate investment in production and fuel infrastructure,” said Todd Sneller, Administrator of the Nebraska Ethanol Board. 



STATEMENT FROM IA CORN PRESIDENT MARK RECKER ON EPA’S PROPOSED 2019 RENEWABLE VOLUME OBLIGATIONS

The U.S. Environmental Protection Agency (EPA) announced today the proposed Renewable Volume Obligations (RVO) for the 2019 conventional biofuels requirement at the statutory level of 15 billion gallons under the Renewable Fuel Standard (RFS) and in doing so, failed to reallocate the gallons of ethanol exempted through the small refinery process. Considering the EPA’s decision, we will fight to protect the rights of Iowa’s farmers and consumers and hold the EPA accountable.

EPA Administrator Scott Pruitt has handed out an unprecedented number of exemptions to small refineries across the country, effectively destroying more than 1.5 billion gallons of ethanol demand and slashing market access for America’s corn farmers. Farmers expect the EPA to uphold the RFS as President Trump and Administrator Pruitt promised to do. EPA’s actions have thoroughly undermined that commitment while providing little transparency regarding how they are administering the small refinery waiver program.

Iowa’s farmers deserve greater honesty and transparency from the EPA as their actions have created a back door that allows oil companies to sidestep their blending obligations costing farmers and ethanol $5.3 billion in lost markets.

This decision will deny consumers greater access to cleaner-burning, lower-cost fueling options at the pump, and will stifle progress made in increasing our nation’s energy security and improving air quality. While today’s announcement is just a proposal, throughout this comment period we will continue to work with farmers across the nation and our leaders in Congress to strengthen our commitment to renewable fuels and ensure we are not taking a step backward.

RVOs are set annually by EPA to dictate the amount of renewable fuel that is blended into the motor fuel supply. The RFS is a federal law that requires domestic, renewable, cleaner-burning fuels to be blended into the nation’s fuel supply. It has been one of America’s most successful energy policies.
Under federal law, the EPA has until Nov. 30 to finalize the annual biofuel targets for the upcoming year. The RFS is the number one priority for ICGA as it builds demand for corn and corn-products. ICGA will be activating our members in the coming weeks to engage during the public comment period and make our voices heard to maintain a strong RFS. Farmers and everyone who supports farmers should take this opportunity to tell EPA that we want to count on the 15 billion gallons of corn ethanol to be blended into our fuel supply. By neglecting to reallocate the gallons, farmers are faced with demand destruction.



Proposed Renewable Fuels Standard (RFS) levels

Iowa Secretary of Agriculture Mike Naig issued the following statement regarding the U.S. Environmental Protection Agency (EPA) releasing a draft rule proposing Renewable Fuel Standard (RFS) levels for conventional, advanced and cellulosic biofuels for 2019 and biodiesel for 2020. More detail on the EPA’s proposal can be found at https://www.epa.gov/renewable-fuel-standard-program/proposed-volume-standards-2019-and-biomass-based-diesel-volume-2020.

Naig’s statement follows here:
“While in general the numbers included in the EPA proposal look positive, the concern remains about how the EPA and Administrator Pruitt will enforce the requirements. The granting of small refinery waivers undermines the law and has reduced demand for ethanol by more than 2 billion gallons. I also continue to advocate for year round sales of E15 as a way to reduce costs and give customers additional choices at the pump. A strong and effective RFS is critically important to Iowa. Iowa farmers have faced five straight years of declining farm income and need the EPA to follow through on President Trump’s commitment to support the renewable fuels industry.”



Growth Energy: Proposed 2019 RVOs Can’t Undo Damage from RFS Waivers

Today, the Environmental Protection Agency (EPA) released proposed 2019 Renewable Volume Obligations (RVOs) for the Renewable Fuel Standard (RFS). The total renewable fuel volume is proposed to be 19.88 billion gallons, while the proposed conventional biofuel amount of 15 billion gallons maintains the level set in the final RVOs for 2018. The proposal also calls for 4.88 billion gallons of advanced biofuel, including 381 million gallons of cellulosic biofuel and 2.43 billion gallons of biodiesel for 2020.

In response, Growth Energy CEO Emily Skor issued the following statement:

"The EPA proposed 15 billion gallons for conventional biofuels, but that still isn’t a real number we can count on. This plan fails to ensure those gallons will, in fact, be blended. By neglecting to reallocate gallons lost to waivers, the EPA is doubling down on another year of an estimated 1.5 billion gallons in demand destruction.

“The same holds true for advanced and cellulosic biofuels, which are rapidly delivering new economic opportunities for rural communities and driving America’s leadership in clean energy. The targets proposed today promise growth, but those investments can’t move ahead unless the EPA makes it clear that goals set by Congress will be enforced.

“The proposed RVOs also fail to restore the volumes lost to waivers for 2016, despite a court ruling last July that requires EPA to restore 500 million gallons of biofuel demand. The EPA cannot continue to enrich the largest oil companies and refiners at the expense of struggling U.S. farmers.

“Keeping the RFS on track is the right thing to do – not only for America’s farmers but for the future of clean energy. Americans are breathing cleaner air every day, thanks to the RFS. As a nation, we must not lose sight of what the RFS was designed to do, and we urge the EPA to follow through on the president’s pledge for year-round sales of E15 and to restore the gallons that have been lost due to refinery exemptions.”

 

Proposed RFS Growth Sends Hopeful Signal to Biodiesel Industry

The National Biodiesel Board (NBB) today expressed appreciation that the U.S. Environmental Protection Agency (EPA) proposed an increase in the biomass-based diesel and advanced biofuel categories under the Renewable Fuel Standard (RFS). While the proposed increase sends a very positive signal to the industry, EPA’s granting of dozens of retroactive small refinery hardship exemptions undercut prior year volumes and could still have a negative impact on future year standards.

“We welcome the Administration’s proposal to grow the biodiesel volumes, following two flatlined years. This is a positive signal for our industry and we’re pleased the EPA has acknowledged our ability to produce higher volumes. We’ve consistently demonstrated that we can do much more,” said Kurt Kovarik, vice president of federal affairs at NBB. “The fact remains, though, instability in the RFS program caused by the EPA has done significant damage that can only be rectified for biodiesel through consistent and predictable growth in volumes.”

Kovarik pointed to decisions by the EPA Administrator to provide numerous waivers to petroleum refiners that release them from their obligations under the RFS, effectively reducing the overall volumes under the program in 2016 and 2017. Those exemptions have effectively reduced current obligations for biodiesel by 100 million gallons in 2016 and 275 million gallons in 2017.

“As a candidate on the campaign trail, Donald Trump pledged he would support biofuels and protect the RFS,” Kovarik said. “While this is just a proposal, we hope the Administration is serious about growing biodiesel volumes and will fulfill the president’s promise to support and grow the RFS.”

The EPA proposed the Renewable Volume Obligations (RVO) for the biomass-based diesel category would increase from 2.1 billion gallons in 2019 to 2.43 billion gallons in 2020. The advanced biofuel category, for which biodiesel also qualifies, would also increase slightly from 4.29 billion gallons in 2018 to 4.88 billion gallons in 2019, under the EPA’s proposal.

The RFS, passed by a bipartisan Congress and signed into law by President George W. Bush, requires the EPA to gradually grow the volume of advanced biofuels like biodiesel delivered to consumers. Since taking office, President Trump’s EPA has recommended zero growth for the biomass-based diesel category.

The Trump Administration’s actions on the RFS before this proposal have been disappointing for both the biodiesel industry and farmers in the Midwest, who have seen commodity prices of their crops plummet as a result of international trade and other market dynamics. Farming income has dropped more than 50 percent and sits at its lowest level in more than a decade. Recent polling by NBB shows Midwestern states were not happy with EPA Administrator Pruitt’s previous decisions on the RFS, which they view as broken promises of support for local agriculture and renewable fuels industries.

Approximately 50 percent of biodiesel is produced from soybean oil, a byproduct of processing soybeans for protein in food products. This added value provides another source of income for soybean farmers; the added value for soybean oil means they’re able to make the protein for the food supply available at lower prices.



ACE comments on proposed 2019 RVOs

American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement on the Environmental Protection Agency’s (EPA) proposed Renewable Volume Obligations (RVOs) for the 2019 Renewable Fuel Standard (RFS):

“While EPA says it is proposing to maintain the 15-billion-gallon conventional blending target for 2019, in reality Administrator Pruitt’s ongoing actions will reduce ethanol blending far below 15 billion gallons. This is a missed opportunity to reallocate the 1.5 billion gallons Administrator Pruitt has waived through Small Refinery Exemptions and to restore the 500 million gallon shortfall the D.C. Circuit Court ordered EPA to deal with following the Americans for Clean Energy et al v. EPA lawsuit.

“Administrator Pruitt continues to disregard President Trump’s campaign promise that ‘the EPA should ensure that biofuel blend levels match the statutory level set by Congress under the RFS.’ The 2019 proposed RVOs reinforce our decision to challenge certain Small Refinery Exemptions in Court and to petition EPA to account for lost volumes of renewable fuel resulting from the unprecedented number of retroactive Small Refinery Exemptions granted by the agency.

“The proposal to modestly increase cellulosic and advanced RVOs for 2019 is welcome but EPA’s waivers and exemptions have collapsed RIN prices across-the-board discouraging investment in the production and use of cellulosic and advanced biofuels.

“A strong rural economy depends upon growing the use of renewable fuels. The President needs to direct Administrator Pruitt to discard EPA’s refiner win-at-all-costs mentality and carry out another of his promises to allow E15 and higher blends market access year-round.

“Finally, we will carefully consider EPA’s proposals regarding the transparency of the RIN market. The Commodity Futures Trading Commission (CFTC) has authority to investigate claims of RIN price manipulation. In March of 2016, EPA signed a Memorandum of Understanding with CFTC to investigate and identify any market abuse by RIN traders.  It might make sense to disclose more information about the RIN market but we would oppose prohibiting blenders and wholesalers from handling RINs because those parties have used RIN proceeds to reduce pump prices and pay for higher blend infrastructure.”



Proposed Volume Obligations are Promising, but Not Enough

The U.S. Environmental Protection Agency (EPA) today proposed increasing the renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) by 3 percent in 2019, from 19.29 billion gallons to 19.88 billion gallons.  The proposal would maintain the current 15-million-gallon target for corn ethanol and increase cellulosic and advanced biofuel requirements by 100 million gallons and 600 million gallons, respectively.

Rob Larew, National Farmers Union (NFU) Senior Vice President of Public Policy and Communications, was encouraged by the volume increase but expressed concern about the fact that it does not address the misappropriation of “hardship waivers,” which has reduced the volume of renewable fuels in the transportation sector by as much as 1.6 billion gallons.

Larew issued the following statement in response to the proposal:
"It is promising that the EPA is planning to increase the volume of American grown and produced fuels in our transportation sector. However, the proposal does not do enough to account for the demand destruction of over a billion gallons of renewable fuels. The EPA should cease granting these waivers to prevent additional harm to the RFS. The agency must also find ways to reallocate gallons lost to the waivers or account for those gallons in the finalized RVOs in order to make up for harm already done.

“Additionally, the administration should look for ways to implement higher level blends of ethanol, such as E30, which expand markets for family farmers, boost rural economies, improve air quality, and lower fuel prices for consumers.”



EPA Increases Proposed RFS Volumes

The American Soybean Association (ASA) is pleased with the proposed biodiesel and advanced biofuels volumes released today by the Environmental Protection Agency (EPA), which opens the door for the growth of future biodiesel volumes.

In the rule, EPA calls for biomass-based diesel (BBD) volumes within the Renewable Fuel Standard (RFS) of 2.4 billion gallons for 2020, a 300 million gallon increase over the 2019 levels.

ASA President John Heisdorffer, a soybean producer from Keota, Iowa, applauded EPA, saying, “This increase supports a valuable, growing market for soybean oil. We have an increased capacity on the domestic market to meet the demand for renewable fuels blended into the nation’s fuel supply.”

Yet, Heisdorffer pointed out that proposed future increases in BBD volumes could be negated by the unwarranted waivers of RFS volumes that EPA has recently granted some oil refiners.

“The waived volumes need to be reallocated to ensure the RFS remains whole and that proposed future increases are meaningful,” Heisdorffer explained. “The biodiesel industry has the potential to support agriculture by creating jobs, diversifying fuel sources, and reducing America’s dependence on foreign oil. We encourage the EPA to continue supporting growth by limiting waivers that water down the benefits of these increased levels.”



NCGA Statement: EPA Proposed Biofuel Requirements

The following is a statement from North Dakota farmer Kevin Skunes, president of the National Corn Growers Association (NCGA), on EPA’s Proposed Biofuel Requirements for 2019.

“For corn farmers, what’s not included in EPA’s proposed rule says more than what’s included.

“It is encouraging that EPA is following Congressional intent and proposing some growth in the RFS volumes and continuing to propose an implied 15-billion-gallon volume for conventional ethanol. However, by continuing to allow retroactive exemptions to refineries, EPA will undercut the volumes in this rule, rendering the proposed blending levels meaningless. Furthermore, the proposed rule states that EPA will not consider comments on how small refinery exemptions are accounted for.

“EPA also had an opportunity to propose a remedy for the 1.6 billion gallons the agency has retroactively waived from the 2016 and 2017 volume requirements over the past year. NCGA believes that if EPA is going to grant retroactive waivers to cut volume requirements for certain refineries, then EPA must also reallocate those gallons to others, so the obligation to blend renewable fuels is not lost.

“Every gallon of renewable fuel blending waived by EPA reduces the clean air benefits of the RFS and costs consumers choice and money at the pump, particularly today when ethanol is considerably less expensive than gasoline.  EPA is also missing an opportunity to propose the removal of the outdated regulatory barrier limiting year-round sales of ethanol blends greater than 10 percent, such as E15.

“America’s farmers are experiencing their lowest net farm incomes since 2006, along with the increasing threat of a trade war. The EPA can provide more certainty to farmers by addressing the gallons already exempted, spelling out how future exemptions will be handled to ensure waived gallons are reallocated and moving forward with a stronger RFS that supports America’s farmers and their rural communities.”



ACE reaction to news EPA ignored DOE RFS waiver recommendations

American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement following news reported by Reuters this morning that the Trump administration’s Environmental Protection Agency (EPA) has consistently ignored recommendations from the Department of Energy (DOE) to reject or limit waivers to oil refiners seeking exemptions from the Renewable Fuel Standard (RFS):

“Administrator Pruitt’s continued mischaracterizations of his rationale for using the hardship waivers as reported by Reuters today is causing even more harm in rural America. His less than truthful answers to farmers in South Dakota blaming the DOE for requiring EPA to hand out waivers like candy is the last straw. Disagreeing is one thing — lying to cover up something you did that impacts rural families’ livelihoods is another.

“Administrator Pruitt continues to disregard President Trump’s campaign promise that ‘the EPA should ensure that biofuel blend levels match the statutory level set by Congress under the RFS.’ This news only reinforces our decision to challenge certain Small Refinery Exemptions in Court and to petition EPA to account for lost volumes of renewable fuel resulting from the unprecedented number of retroactive Small Refinery Exemptions granted by the agency.

“A strong rural economy depends upon growing the use of renewable fuels. The President needs to direct Administrator Pruitt to discard EPA’s refiner win-at-all-costs mentality and carry out another of President Trump’s promises to allow E15 and higher blends market access year-round. More than two months ago, President Trump pledged to allow the use of E15 year-round, yet EPA to-date refuses to make good on that promise.  This is unacceptable.”



Growth Energy Issues Statement on Continued RFS Waiver Misuse at EPA

A report was issued today that the Environmental Protection Agency (EPA) “consistently ignored” direction from the Department of Energy (DOE) to restrict or reject economic waivers for oil refiners under the Renewable Fuel Standard (RFS). In response to the news, Growth Energy CEO Emily Skor issued the following statement:

“Administrator Pruitt just finished telling crowds of struggling farmers that the massive increase in EPA handouts wasn’t driven by his loyalty to a few wealthy refiners. But these companies aren’t small and they aren’t experiencing hardship – unlike farmers facing a five-year plunge in income. In fact, those waivers are at odds with everything we hear from the Department of Agriculture, President Trump, and now the Department of Energy.

“It’s easy to understand why voters in the heartland view EPA as failing President Trump’s promises to rural America. Waivers have taken billions out of the pockets of farmers, while EPA continues to demand more handouts in exchange for the freedom to sell E15 – even after President Trump called for a fix.

“It’s vital the White House take action now to reverse a drain on farm income that threatens the entire rural economy by immediately restoring the demand that has been lost and providing year-round market access for higher biofuel blends.”



Anthrax Confirmed in South Dakota Cattle Herd

(AP) -- Officials say anthrax has been confirmed in South Dakota livestock for the first time year this year.  State Veterinarian Dustin Oedekoven has confirmed that eight cows died out of a herd of 87 unvaccinated cattle in Clark County.

The Animal Disease Research and Diagnostic Laboratory at South Dakota State University confirmed the disease from samples submitted over the weekend.

Anthrax can cause the rapid loss of a large number of animals in a short time. Infected livestock often are found dead with no illness detected.



American Farmers and Cheese Makers Ask President Trump to Suspend Tariffs on Mexican Products As NAFTA Talks Continue

More than 60 companies and organizations representing American dairy farmers and cheese makers commended President Donald Trump today for his efforts on equitable trade and for insisting that Canada halt its market-distorting dairy practices. At the same time, the companies urged the administration to reconsider its imposition of new tariffs on Mexico in light of that country’s constructive engagement in North American Free Trade Agreement (NAFTA) negotiations and the harm that Mexico’s retaliatory tariffs will have on U.S. dairy’s trade with its largest and most reliable market.

In retaliation for U.S. actions on steel and aluminum imports, Mexico recently added new tariffs – some of which will reach as high as 25 percent next month – on American-made cheeses, among other products. These tariffs will certainly diminish demand for high-quality dairy products that are produced across the United States. The production of cheese and other dairy products in the U.S. supports nearly 3 million American jobs. The additional Mexican duties also will allow the European Union, which recently signed a bilateral free trade agreement with Mexico, to take hard-earned market share from American dairy companies.

In their letter to President Trump, the companies asked the administration to work collaboratively with Mexico and suspend the steel and aluminum tariffs on Mexican products until the negotiations for a modernized NAFTA have been concluded.

“Our industry recognizes that the U.S. must be resolute in ensuring our trading partners uphold their end of the bargain with us,” they said. “We trust that your administration’s skilled staff can find a way to resolve this issue, given Mexico’s strong commitment to working with the U.S. to further improve U.S.-Mexican trade.”

Mexico has been a model for open dairy trade with the United States. Through investment and cooperation, the United States has become Mexico’s biggest dairy supplier, with cheese purchases last year totaling nearly $400 million. Today, Mexico accounts for about one-quarter of all U.S. dairy exports. Until the tariffs were imposed, all U.S. dairy products enjoyed duty-free access into the Mexican market.

Dairy Organizations Agree: Preserve Market Access
The dairy industry’s trade associations – the U.S. Dairy Export Council (USDEC), the International Dairy Foods Association (IDFA), and the National Milk Producers Federation (NMPF) – strongly support the goals set forth in the letter to President Trump.

“Our first four months of 2018 showed a strong expansion in the volume of U.S. dairy exports into Mexico,” said Tom Vilsack, president and CEO of USDEC. “But these tariffs have introduced uncertainty and concern. A renegotiated NAFTA 2.0 would go a long way toward restoring our industry’s momentum.”

“Maintaining dairy market access in Mexico is IDFA’s number one priority in the NAFTA modernization efforts, specifically because the duty-free access has allowed trade between our countries to flourish and Mexico to become our number 1 export market,” said Michael Dykes, D.V.M., president and CEO of IDFA. “We’re confident that the administration and U.S. negotiators will find a way to preserve this vital partnership, which allows the U.S. dairy industry to create more jobs and drive our economy.”

“After rising during the spring, dairy futures markets and the farm-level milk price outlook for the rest of 2018 have deteriorated significantly in recent weeks, in reaction to the prospects of lost dairy export sales,” said Jim Mulhern, president and CEO of NMPF. “No one wants to see lasting damage to our farmers result from lost access to our top foreign market. That’s why resumption of tariff-free trade between the U.S. and Mexico is so critical.”



House Committee Approves Bill to Help Improve Irrigation

A bill recently approved by the House Ways and Means Committee would help farmers and ranchers more efficiently operate mutual ditch, irrigation and water companies, according to the American Farm Bureau Federation.

The Water and Agriculture Tax Reform Act of 2017 (H.R. 519) would multiply the sources from which mutual ditch, irrigation and water companies can obtain capital to expand and improve their water systems. Current law requires mutual ditch, irrigation and water companies’ capital improvements be 85 percent shareholder financed, which can be limiting.

“Mutual ditch, irrigation and water companies are important to agriculture because they allow farmers, ranchers and others to form collaborative businesses to install and maintain vital infrastructure,” AFBF President Zippy Duvall said in a letter to the bill’s author, Rep. Ken Buck (R-Colo.). “The bill multiplies sources from which mutual ditch, irrigation and water companies can obtain capital to expand and improve their water systems.”

Specifically, the legislation would allow mutual water and storage delivery companies to retain their nonprofit status even if they receive more than 15 percent of their revenue from non-member sources. Additional non-member revenue raised must be used for maintenance, operations and infrastructure improvements.