Tuesday October 9 Ag News

Administration Implements Smith Proposal to Expand Availability of E15 Year-Round

Congressman Adrian Smith (R-NE) praised President Trump’s decision to allow the year-round sale of E15 in accordance with legislation introduced by Smith. In a White House announcement today, the president directed the EPA to begin rulemaking to allow E15 to be sold during the summer months.

“The year-round availability of higher ethanol blends such as E15 is a simple, common sense measure which I have long championed for its benefits to producers, refiners, and consumers across America. In addition to introducing legislation requiring the EPA to allow the sale of E15 throughout the year, I have sent multiple letters and consulted administration officials on numerous occasions to this end. President Trump has long stated his support for renewable fuels, and I appreciate him following through on this commitment.”



Fischer Joins President Trump at the White House for Announcement Year-Round Sale of E-15

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee and the Senate Agriculture Committee, today joined President Donald Trump at the White House to announce that he has directed the EPA to initiate a rulemaking allowing for E-15 to be sold year-round. Fischer released the following statement after today’s announcement:

“The sale of E-15 year round is a big deal for Nebraska farmers, renewable fuel producers, and rural communities. This announcement combined with the USMCA, the South Korea trade agreement, and the start of trade talks with Japan are all signs that we are moving in the right direction. I thank President Trump for his efforts on behalf of our producers.”

Senator Fischer has long advocated for the sale of E-15 year-round. In 2017, she joined Senators Joe Donnelly (D-Ind.), and Chuck Grassley (R-Iowa) in introducing the Consumer and Fuel Retailer Choice Act. The bill would have extended the Reid vapor pressure (RVP) waiver to ethanol blends above 10 percent. This would increase market access opportunities for higher blends of ethanol and allow retailers across the country to sell E-15 and other higher ethanol-gasoline fuel blends year-round.

Nebraska ranks second in the nation in biofuel production. The states has 25 operating ethanol plants, which produce more than 2 billion gallons of renewable fuel annually and have created more than 1,300 good paying jobs in Nebraska’s rural communities.

Also, Nebraska ranks first in the nation for a number of cattle on feed, a direct result of the ethanol byproduct, distillers grains.



Renewable Fuels Nebraska on the White House Announcement on E15
Troy Bredenkamp, RFN Executive Director

“Nebraska’s ethanol industry is pleased that the President has engaged personally and taken a lead on this issue by directing the EPA to initiate rulemaking to allow for the year-around sales of E15.”

“E15 is higher octane, better for the environment, cost less than conventional fuel and is made with Nebraska-grown ethanol. Removing this EPA regulatory hurdle and allowing year-around E15 sales sends the correct market signals to retailers to invest in E15 infrastructure, while bolstering the economic condition of the ethanol industry and the American corn farmer at just the right time.”

From Ted Free, RFN President and General Manager at Bridgeport Ethanol
“Today’s announcement is a win, win, win. It’s a win for Nebraska’s ethanol producers, a win for Nebraska’s farmers and a win for the Nebraska consumers, for now they will have the choice to use E15 year-around and that is a great thing.”

“In addition to President Trump’s leadership, it is important to point out other ethanol champions like Governor Ricketts, along with Senator Fischer and Representative Smith in particular. Without their leadership and stalwart support of Nebraska’s ethanol industry on this issue, today’s announcement might not have taken place.”



Nebraska Ethanol Board hopeful for E15 rule change

Today, President Donald Trump voiced support again for E15 by directing the U.S. Environmental Protection Agency (EPA) to begin the rulemaking process to allow the fuel to be sold nationwide year round. E15 is approved for use in 2001 and newer light-duty vehicles.

Due to an antiquated regulation from 1990, the federal government holds E15, a blend of 15 percent ethanol and 85 percent gasoline, to tougher standards than other fuels during the summer. Between June 1 and Sept. 15, E15 is limited for use in flex fuel vehicles only due to federal Reid Vapor Pressure (RVP) requirements.

“We are grateful to the President for taking this crucial step toward year-round E15 sales,” said Nebraska Ethanol Board Administrator Sarah Caswell. “We are hopeful this long overdue federal waiver will be finalized and effective before the summer driving season.”

According to Growth Energy, a national ethanol trade association, allowing year-round sales of E15 by granting the RVP waiver could boost domestic ethanol demand by 1.3 billion gallons within five years.

“We should see an increase in fuel retailers across the state and nation offering E15 when the red tape and regulatory barriers are removed,” said Randy Gard, Nebraska Ethanol Board petroleum representative and chief operations officer for Bosselman Enterprises. “The waiver takes the perceived risk out of the market for fuel retailers, which will stimulate ethanol markets. E15 gives consumers another renewable, low-cost option at the pump.”

The E15 change will not be immediate, as it requires a formal rule-making process with the EPA. The EPA is expected to publish a proposed rule in the coming weeks, followed by a public comment period.

“Allowing E15 and higher blends of ethanol year round provides a boost for industry stakeholders including farmers, ethanol producers, fuel retailers, consumers and local communities,” said Caswell. “We look forward to working with all our ethanol champions in government to make this a reality.”

Caswell noted that Nebraska state fleet vehicles have been running on E15 for more than two years, saving the state money while using a homegrown product. Nebraska continues that forward thinking by recently seeking and receiving EPA approval to evaluate the use of E30 in conventional vehicles owned by the state.

“The focus remains on bringing high-octane, low-carbon fuels to the market to meet vehicle standards,” said Caswell. “We’ll continue our work with automakers and policymakers on retail infrastructure, removing market barriers, reducing cost and ensuring availability.”



Statement by Steve Nelson, President, NE Farm Bureau, Regarding Year-Round Sale of E15 Ethanol

“We appreciate President Trump’s actions today to direct the Environmental Protection Agency to implement the year-round sale of E15 Ethanol. Nebraska is not only a major corn producing state, but a major ethanol producer. Nebraska Farm Bureau continues to support all opportunities that expand markets for our Nebraska grown grains, in both the domestic and international marketplace. Expanded sale of E15 ethanol will not only benefit Nebraska farmers, but our state’s economy, and consumers looking for greater access to cleaner burning, homegrown biofuels.”



NCGA Welcomes Year-Round E15

National Corn Growers Association President Lynn Chrisp today praised an announcement from President Trump, setting the necessary regulatory steps in motion to allow for year-round sales of E15.

“Corn farmers across the country have been advocating for year-round sales of higher ethanol blends like E15 to help grow demand, provide consumers with more options at the pump and improve economic conditions across rural America,” said Chrisp. “We thank President Trump for following through on his commitment to America’s farmers.”

Outdated regulations currently require retailers in many areas of the country to stop selling E15, a blend of gasoline and 15 percent ethanol approved for all vehicles 2001 and newer, during the summer months. Updating this regulation will give consumers year-round access to a fuel choice that can save them between three and 10 cents per gallon.

“Earlier this year, the President correctly described this barrier as ‘unnecessary’ and ‘ridiculous’,” said Chrisp. “The President also faced pressure to fix this regulatory problem through a bad deal that would have been harmful to farmers. He made the right decision to move this common-sense regulatory relief on its own, and farmers are very grateful.”

Updating this regulation, which was issued before the EPA approved E15 in 2011, will also further environmental policy goals because E15 and other higher blends produce lower evaporative and tailpipe emissions.

“With nine out of ten vehicles on the road today approved to use E15, consumers should have this lower-cost option year-round,” said Chrisp. “NCGA will be taking an active role in the regulatory process, urging EPA to move forward with making the President’s commitment a reality by next summer.”

Chrisp also thanked USDA Secretary Sonny Perdue and Iowa Senators Grassley and Ernst for their steadfast support of ethanol and corn farmers.



Secretary Perdue Statement on President Trump’s Ethanol Announcement

U.S. Secretary of Agriculture Sonny Perdue today hailed President Trump’s directive to the Environmental Protection Agency (EPA) to begin a rulemaking process to expand the sale of corn ethanol, to include E15 year-round.  Perdue issued the following statement:

“This is another case of ‘Promises Made, Promises Kept’ for President Trump.  Expanding the sale of E15 year-round is sound policy for a variety of reasons.  Consumers will have more choices when they fill up at the pump, including environmentally friendly fuel with decreased emissions.  It is also an excellent way to use our high corn productivity and improved yields.  Year-round sale of E15 will increase demand for corn, which is obviously good for growers. This has been a years-long fight and is another victory for our farm and rural economies.  Along with E15 expansion, we also welcome much-needed reforms to the RIN market, which will also increase transparency.

“President Trump has again made it abundantly clear that he is unleashing the full potential of American energy production as we retake our rightful place as the world’s leader.  I thank President Trump for his steadfast support of E15 expansion, while also acknowledging the close working relationship we’ve developed with Acting EPA Administrator Andrew Wheeler.  I look forward to working with the EPA to see rulemaking and year-round E15 completed by the driving season of 2019.”



ACE applauds President Trump's E15 year-round announcement

The American Coalition for Ethanol (ACE) CEO Brian Jennings released the following statement in response to President Donald Trump’s decision to extend Reid vapor pressure (RVP) relief to E15 by instructing the Environmental Protection Agency (EPA) to initiate a rulemaking process:

“We are sincerely grateful the President is making good on his promise to require EPA to issue a rule allowing E15 access to the market year-round. We also enormously appreciate the leadership of Iowa Senators Joni Ernst and Chuck Grassley for their unwavering support of the farmers, retailers, and biofuel producers who have pushed for this common-sense change for many years. Once a final rule is in place and retailers can sell E15 year-round, it will help create additional demand for farmers who are suffering from oversupplies and low crop prices.

“E15 is a low-cost, high-octane fuel EPA-approved as safe to use in 90 percent of all vehicles on the road today, so the beneficiaries of this positive step go beyond farmers and retailers to consumers who would have the opportunity to save money every time they fill up at the pump.

“The President’s decision will not prevent Big Oil from stonewalling year-round E15, so we encourage Acting EPA Administrator Andrew Wheeler to expeditiously publish a legally-defensible approach for extending RVP relief to E15 in the Federal Register for public comment and to finalize the rule before the 2019 low-RVP season kicks-in.

“We also look forward to working with EPA as they continue to explore ways to make the Renewable Identification Number (RIN) market more transparent and effective.”



Growth Energy Welcomes President Trump’s Announcement on E15

Growth Energy CEO Emily Skor today applauded President Trump’s announcement of plans to lift restrictions on E15, a fuel blend with 15 percent ethanol approved for 9 out of 10 cars on the road. Currently, retailers throughout most of the country are prohibited from offering E15 to drivers during the summer months, costing consumers an opportunity to save up to 10 cents per gallon. In addition, fuel retailers must pay to retool and relabel their product offerings each year, creating confusion among drivers and holding back other retailers from embracing new options at the pump.

“We thank President Trump for delivering on his promise to rural America by lifting the summer restriction on E15 sales,” said Skor. “He answered the call from American farmers by removing the single most important barrier to growth in higher biofuel blends. This announcement is great news for farmers, biofuel workers, retailers and consumers everywhere who want to enjoy cleaner, more affordable options at the fuel pump. This is a critical step toward giving American motorists higher-octane options at a lower cost all year long.

“We sincerely appreciate President Trump’s steadfast commitment to rural America. Nationwide E15 sales promise to drive demand for two billion bushels of American corn and help restore growth in rural communities hit hardest by the downturn in farm income. America’s farmers and rural workers are eager to see the President’s agenda for rural growth succeed, and today was a critical part of completing that mission.

“Over the last few months alone, we’ve heard from countless farmers who rallied behind Growth Energy’s E15 Now campaign because they cannot afford to be locked out of this key market for another season. We’re deeply grateful to USDA Secretary Sonny Perdue, our rural champions in Congress, and governors across the Midwest for working with the president and pressing the EPA to tear down outdated regulatory barriers against competition. It’s vital that EPA regulators work quickly to implement the president’s plan, and we look forward to lending our expertise to that process immediately.”





White House Announces E15 Waiver, RIN Transparency

President Donald Trump today announced the administration’s intentions to allow the use of E15 gasoline in summer months and bring greater transparency to the trading of biofuel credits, known as Renewable Identification Numbers (RINs). The announcement is an attempt to mitigate a bitter battle between U.S. biofuel and oil industries over the Renewable Fuel Standard (RFS), the nation’s premier biofuel policy.

National Farmers Union (NFU) President Roger Johnson said family farmers are encouraged by the move that will allow for increased use of higher blends of ethanol, but that the compromise is a “net loss” in demand for farm products at a time when family farmers are going out of business because of low farm prices.

Johnson released the following statement in response to the President’s announcement:

“Allowing use of E15 gasoline year-round is an important step toward realizing a renewable energy future for transportation fuel sector, and we’re appreciative of the administration’s support for higher level blends of ethanol.

“At the same time, this ‘compromise’ does nothing to address the billions of gallons of ethanol demand that were lost as a result of the EPA’s RFS waiver handouts to oil refiners. Family farmers are in significant financial distress right now, and the administration’s surreptitious biofuel demand destruction has made matters worse. The bottom line here is that if the President wants to do right by his promises to support family farmers and American grown biofuels, his administration must support net increases in biofuel use. Even with an E15 waiver, family farmers are at a net loss in biofuel demand over the past two years.”



Seaboard Triumph Foods recognized with Growing Sioux City Award

A Growing Sioux City Award was presented to Seaboard Triumph Foods (“STF”) today at their sprawling 942,000 SF facility in Bridgeport Industrial Park. Iowa Governor Kim Reynolds provided remarks and Mayor Bob Scott presented the award that recognizes the company’s growth and investment in Sioux City. The Growing Sioux City Award was accepted by Seaboard Triumph Foods COO Mark Porter. Company officials received Sioux City wind breakers and a new tree was planted on the property signifying the company’s commitment to growing Sioux City.

The event also celebrated the one-year anniversary of the start of production at STF’s new Sioux City facility. The initial $260 million construction of the plant was completed in September 2017, with a second phase coming on line earlier this year bringing the total capital investment in the STF campus to over $330 million. The joint venture between Seaboard Foods and Triumph Foods created the most advanced and second largest pork facility in the world.

Already operational with its first shift, and currently hiring staff for its second shift, STF currently employs more than 1,800, and will eventually employ an estimated 2,400 people (including management and management support).  With the first shift the facility now processes upwards of 10,500 hogs per day, (more than 3 million annually), and that number will double upon total deployment of the second shift’s personnel.

One of the largest projects in Sioux City history, STF has boosted the overall economy of the region with a significant increase in regional job growth and overall earnings and industry sales in other sectors, such as transportation and warehousing, manufacturing, and shipping, as well as healthcare and retail. Many area businesses, including suppliers, cold storage facilities and trucking firms have already begun expansion projects.



Holding Time for Feedstuffs May Reduce Swine Disease Risk

The ongoing outbreaks of African swine fever (ASF) in China, Belgium and elsewhere, have crystallized the U.S. pork industry’s focus and collaboration on finding new ways to help protect the domestic herd from costly foreign animal diseases (FADs). One new practice designed to reduce disease transmission risk involves knowing exactly how long certain feed ingredients have been securely stored before allowing their use on pig farms.

As modelling in peer-reviewed research1 has made clear, it’s possible for swine disease viruses to survive in shipments of certain feed ingredients during transoceanic shipping to U.S. ports and even to inland points of feed manufacture. Based on this current research, a holding time of 78 days after the date of manufacture and bagging or sealing to prevent additional contamination (“born on date”) for amino acids, minerals or vitamins will degrade 99.99% of viral contamination. The holding time extends to 286 days for soybean meal to allow for similar viral degradation, once shipped to prevent additional contamination.

“Working with your feed supplier to get this type of information is yet another way to help protect your pigs from potential infection from a foreign animal disease,” said Dave Pyburn, DVM, senior vice president of science and technology for the National Pork Board. “It’s just one more tool in our arsenal against African swine fever and other diseases that we hope will offer U.S. producers more protection against this growing global threat.”

The feedstuffs studied that have shown the potential to support virus survival include: conventional soybean meal, DDGS, lysine hydrochloride, choline chloride, vitamin D, pork sausage casings, dry and moist dog food, organic soybean meal, soy oil cake, moist cat food, and porcine-based ingredients. There may be other feedstuffs that were not tested that could support survival of pathogenic viruses. Scientific study and proof-of-concept work in this area continues. To date, without an organized surveillance program, pathogenic swine viruses are not being identified in imported feedstuffs.

“It’s clear from the research that certain feed ingredients can support viral survival during conditions modeled after either trans-Atlantic or trans-Pacific shipping to U.S. ports,” said Paul Sundberg, DVM, director of the Swine Health Information Center. “Based on these findings, we think it’s prudent that the entire U.S. pork industry look at this research and consider taking action to help us prevent a FAD from entering this country through this route.”

In a related area of disease prevention, the National Pork Board, the National Pork Producers Council, the American Association of Swine Veterinarians and the Swine Health Information Center recommend that producers talk to their feed suppliers to get information about seven key areas.
-    Describe the facility’s biosecurity program to minimize the spread of pathogens from people, vehicles and ingredients.
-    Describe the facility’s employee training on feed safety.
-    Describe the facility’s pest control program.
-    Describe the facility’s traceability program.
-    Describe the facility’s supplier approval program.
-    Is the facility certified by a third-party certification body for food safety? Third-party certification programs may include the Feed Additives Manufacturers (FAMI-QS), the International Organization for Standardization (ISO), the Safe Quality Food (SQF), Safe Feed/Safe Food, etc.
-    Does the facility utilize ingredients that were manufactured or packaged outside of the United States?

To get a better handle on your particular farm’s risk of FAD transport via a feed ingredient, Sundberg advises producers to use the newly developed virus transport in feed ingredients decision tree matrix. “It was developed to help producers work with their feed suppliers to minimize risk from feed ingredients,” he said.

Aside from the specific feed-related ways reduce disease risk, Tom Burkgren, DVM, executive director for the AASV, advises producers to review their current on-farm biosecurity plan with their veterinarian. “While this is always a good thing to do periodically, it’s critically important now to find any potential weaknesses in your production practices so that you can take immediate steps to fix them to help protect your animals.”

The four swine groups continue to collectively reach out to USDA officials, including Chief Veterinary Officer Jack Shere, to see what can be done to enhance the protection of the domestic swine herd from ASF and all FADs.

“U.S. agriculture must bolster its defenses against the spread of animal disease as we face heightened risk,” said Liz Wagstrom, chief veterinarian for the National Pork Producers Council. “These measures should include private-sector efforts like those that have informed this feed directive as well as publicly funded programs to guard against disease outbreaks that would immediately close export markets and threaten prosperity in rural America.”



CWT Assists with 842,000 Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted nine offers of export assistance from CWT that helped them capture contracts to sell 709,889 pounds (322 metric tons) of Cheddar cheese and 132,277 pounds (60 metric tons) of whole milk powder. The product has been contracted for delivery in Asia and the Middle East for the period from October 2018 through January 2019.

CWT-assisted member cooperative 2018 export sales total 48.270 million pounds of American-type cheeses, 12.962 million pounds of butter (82% milkfat) and 52.188 million pounds of whole milk powder to 36 countries on five continents. These sales are the equivalent of 1.118 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Antelliq’s Allflex partners with Nestlé farms to monitor dairy cows’ wellbeing

Allflex Livestock Intelligence, an Antelliq company, is pleased to announce another major collaboration with Nestlé, the world’s largest food and beverage company. As part of Nestlé’s commitment on animal welfare, it is piloting Allflex’s SenseHub solution to monitor the overall wellbeing of cows, on dairy farms in several geographic regions.

This collaboration aims to provide Nestlé with full visibility into the wellbeing of individual cows and the herd according to a set of key performance indicators (KPIs). The SenseHub solution will in turn deliver actionable information on the reproductive, health, nutritional and wellbeing status of individual cows and groups. The system has the potential to drive continuous improvement on animal welfare, more efficient farm management and more productive dairy farm operations.

The SenseHub monitoring solution is already in operation on several Nestlé vendors’ farms.

A long-standing partnership, committed to improved dairy farming
This project builds on Allflex’s long-standing relationship with Nestlé, founded in 2014 when Allflex, was chosen to lead the cow monitoring and welfare aspects of the Dairy Farming Institute (DFI) in China.

“We are very pleased to expand our cooperation with Nestlé, a company that shares our belief in the importance of cow wellbeing as an element in responsible production of milk-based food products,” commented Dr. Stefan Weiskopf, CEO, Antelliq. “SenseHub enables multiple aspects of cow wellbeing to be measured, and we are excited to be sharing these abilities with Nestlé, to help consumers be better informed and confident in the food they feed their families.”