Celebrate Nebraska Agriculture
Nebraska Governor Pete Ricketts
It is National Ag Week in Nebraska, and we are celebrating our state’s number one industry. This week, the Department of Agriculture and I will be visiting with some of the farm families and ranchers who are building opportunity in communities across our state and growing the food that helps feed the world.
Nebraska’s dominance in agriculture is reflected in our national rankings. We are number one for cattle on feed, popcorn, and Great Northern Beans. Number two in cattle and calves, ethanol production, and hay production. Number three in corn for grain production and cash receipts from all livestock and products as well as fourth in cash receipts generated from all farm commodities. And we are fifth for soybean production.
This past year, ag-related projects helped bring home Nebraska’s third consecutive award for the most economic development projects per capita in the nation. For example, Michael Foods invested $150 million at their poultry operation in Bloomfield. Veramaris is investing $200 million in Blair to produce algae oil for other biotechnology projects.
These are just a few examples of how dominant agriculture is in Nebraska’s economy. You will often hear me say that to grow Nebraska we must grow agriculture. To that end, my team is working on three major priorities: Cutting property taxes, expanding trade, and increasing value-added livestock production.
Cutting property taxes is my top priority. Over the last four years, the Legislature and I have worked together to increase the amount of direct property tax relief by 60 percent. This year, I have three proposals: The first would increase direct property tax relief to $275 million annually, or almost double when I started as Governor. Second, I have recommended setting a minimum floor of $275 million in law for the Property Tax Credit Relief Fund. Third, I have proposed a cap to limit how much property taxes can go up each year. Since 1980, property taxes have gone up five percent annually. If this cap had been in place, property taxes would be roughly half of what they are today.
As we work on cutting taxes, it is important that we bring rural and urban Nebraska together to control spending. Some Senators have suggested raising the sales tax, putting new sales taxes in place, or giving more money to local government. These ideas will not ultimately solve the problem. These approaches incentivize more spending that has fueled high property taxes for decades. To solve the problem, the Legislature will need to cap property tax increases, provide direct relief, and incentivize fiscal responsibility.
International trade missions are also key to growing agriculture. With 95 percent of the world’s population living outside the United States, international trade missions are key to opening markets for Nebraska’s quality products. Over the last four years, I have led trade missions to Japan twice, China twice, Mexico twice, Canada, and the European Union. I will be leading two more trade missions this year. The results of Nebraska’s work to promote our products can be seen in the numbers. For example, between 2016 and 2018, beef exports from Nebraska grew 27 percent and pork exports from Nebraska grew 17 percent. Furthermore, we will be pushing for approval of the United States-Canada-Mexico Agreement and the new trade deal President Trump has secured with South Korea.
Finally, we must continue to expand value-added agriculture. Livestock development adds value to the billions of bushels of quality grains our farmers produce each year. In 2018, we added six Livestock Friendly Counties, showing the public that these counties support livestock development and are open for business. Additionally, Hall County joined Dodge and Merrick Counties as the third county in the state to adopt the Livestock Siting Assessment Matrix to bring greater predictability to decisions on livestock siting applications. These programs help attract great opportunities like the Costco poultry project. Costco investment is helping 125 farm families put up poultry barns, creating opportunity for the next generation of farmers.
Biofuels also play a critical role in the state’s agriculture industry. Nebraska is the second-largest producer of ethanol in the country. The synergistic relationship between corn, ethanol, and livestock encourages the success of all three industries. We are looking forward to a rule from the Environmental Protection Agency by the summer driving season to allow for year-round sales of E15. This will give Nebraska ethanol producers more opportunities to produce and sell this cheaper and cleaner fuel.
As we continue to grow Nebraska, we will work to grow Nebraska agriculture by cutting property taxes, increasing international trade, and expanding opportunities in value-added agriculture. If you have ideas on how to grow agriculture, I hope you will email me at pete.ricketts@nebraska.gov or call 402-471-2244. We look forward to hearing from you!
West Point Chamber of Commerce Ag Appreciation is March 19
The annual Ag Appreciation dinner hosted by the West Point Chamber of Commerce will be held on Tuesday March 19th at the Nielsen Community Center in West Point. Social hour begins at 6p, dinner at 7p. R.P. Smith will be the entertainment. Tickets will be available from the event sponsors, including:
KTIC/107.9 The Bull
Advanced Consulting Engineering Services
BankFirst
CharterWest Bank
Citizens State Bank
Cuming County Economic Development
Cuming County Farm Bureau
Cuming County Public Power District
F&M Bank
Farm Credit Services of America
Franciscan Care Services
Grain States Soya
Graybeal’s Foods
Harry Knobbe Feedyards & Livestock Sales
Hugo Plumbing & Heating
INSPRO Insurance
Kaup Seed & Fertilizer
Lincoln Street Market
Nebraska Veterinary Services
Northeast Community College
Prinz Grain & Feed
Producers Livestock
Sapp Brothers Petroleum
Seed Enterprises
State Farm Insurance
Valmont Coatings-West Point Galvanizing
Wells Fargo Bank
West Point Implement & Design
West Point News
Nebraska’s Pork Industry Represented at National Meeting
Producer delegates from across the country were in Orlando last week for the annual National Pork Industry Forum. This business meeting allows directors and staff of the National Pork Board to hear directly. Pork Act delegates are appointed by the U.S. Secretary of Agriculture. Representing Nebraska were Duane Miller of Davenport, Darin Uhlir of St. Paul and Aaron Reichmuth of Humphrey, Nebraska.
The National Pork Board (NPB) has responsibility for Checkoff-funded research, promotion and consumer information projects and for communicating with pork producers and the public. Through a legislative national Pork Checkoff, pork producers invest $0.40 for each $100 value of hogs sold. The most recent cost-benefit study showed that U.S. pig farmers receive a 25:1 return on their Checkoff investment, the highest return on investment (ROI) of any checkoff in the agriculture industry.
Delegates for the National Pork Producers Council (NPPC) were also in Orlando last week. NPPC is the global voice for the U.S. pork industry, protecting the livelihoods of America's 60,000 pork producers, who abide by ethical principles in caring for their animals, in protecting the environment and public health and in providing safe, wholesome, nutritious pork products to consumers worldwide. NPPC delegates representing Nebraska were Bill Luckey, Columbus; Russ Vering, Howells; Leo Hanson, Fremont; Dave Harrington, St Paul; Mike Wisnieski, Omaha and Shana Beattie, Sumner, Nebraska.
Russ Vering, Past President of the Nebraska Pork Producers Association and owner of Central Plains Milling with locations in Columbus and Howells, was elected as a new member of the 15 member NPPC Board of Directors. Russ will serve a three-year term.
Offering his congratulations, Al Juhnke, Executive Director for NePPA said, “Russ Vering will be a strong team members guiding the National Pork Producers Council to continue the work of protecting the livelihoods of America’s pork producers.”
NSDA Announces 2019 Officers and New Board Members
The Nebraska State Dairy Association met on February 27, 2019 in Columbus, Neb. During this meeting the 2019 NSDA officers were voted upon and approved.
President - Bill Thiele, Clearwater
Vice President - Mike Guenther, Beemer
Secretary/Treasurer - Roger Sprakel, Crofton
New members to the NSDA board include
Heath Snodgrass - Royal, replacing Linda Hodorff of Broken Bow
Bob Larson - Creston replacing Rick Larson of Creston
Other NSDA board members include
Dwaine Junck, Carroll
Jason Nuttelman, Stromsburg
Brooke Engelman, Jansen
Erin Marotz, UNL/Wahoo
Ex-officio members include
Kim Clark, Nebraska Dairy Extension
Paul Kononoff, UNL Animal Science
Dairy Farmers Travel to Washington D.C. to Discuss Industry Priorities
Twenty-four meetings in 48 hours is what six dairy farmers from Midwestern dairy State Trade Associations of Iowa, South Dakota and Nebraska accomplished on an annual joint trip to Washington, D.C. on March 6-7. The purpose of the trip was to build relationships, advocate for legislation on behalf of dairy farmers and ensure proper implementation of federal government programs.
Dairy farmers met with Senate Ag Committee staff, Farm Service Agency, congressmen/women, senators and more. The top issues discussed included Farm Bill implementation, trade, whole milk in schools, and workforce development, labor and immigration.
“We spent two days discussing our current issues in dairy and agriculture,” said Bill Thiele, a Nebraska Dairy Farmer. “It was a very enjoyable experience and the representatives were receptive. It was great to bring a unified voice to Washington on behalf of dairy farmers across the Midwest.”
Dairy farmers in attendance included Robert Horst and Lee Maassen, Iowa; Bob & Kelsey Larson and Bill Thele, Nebraska; and Marv Post, South Dakota.
Secretary Perdue Announces Middle List For ERS and NIFA Relocation
U.S. Secretary of Agriculture Sonny Perdue today announced the initial down-select list of 136 Expressions of Interest received from parties in 35 states vying to become the new homes of the U.S. Department of Agriculture (USDA) Economic Research Service (ERS) and National Institute of Food and Agriculture (NIFA). USDA is following a rigorous site selection process to identify the new locations with involvement from USDA, ERS, and NIFA leadership.
“The announcement of this middle list shows that we are committed to the important missions of these agencies and transparency in our selection process. USDA will make the best choice for our employees and customers,” Perdue said. “Relocation will help ensure that USDA is the most effective, most efficient, and most customer-focused agency in the federal government, allowing us to be closer to our stakeholders and move our resources closer to our customers.”
For this initial down-select, USDA applied a set of guiding principles against the Expressions of Interest locations including USDA travel requirements, labor force statistics, work hours most compatible with all USDA office schedules. Sixty-seven Expressions of Interest remain under consideration.
Editors Note: Two Nebraska locations made the middle list... Lincoln and Omaha. Five locations in Iowa were also included in the middle list released today by USDA. They include two in Ankeny and one each in Ames, Des Moines, and Council Bluffs.
Ricketts, University Comment on USDA Announcement
Today, Governor Pete Ricketts and University of Nebraska-Lincoln (UNL) Chancellor Ronnie Green issued statements following an announcement from the U.S. Department of Agriculture (USDA). Governor Ricketts and former USDA Secretary Mike Johanns have been leading a consortium of organizations to attract USDA jobs to Nebraska. This morning, the USDA announced that two Nebraska locations moved to the next round of consideration.
“We are excited to see that the USDA has named Nebraska as a potential location for programs and jobs set for relocation,” said Governor Ricketts. “Nebraska Innovation Campus is the best location for these programs because of the synergies they will find in ag-related research and business. We have submitted an outstanding application and invite Secretary Perdue to name Nebraska as the destination for these great programs.”
“Locating these USDA agencies in Nebraska, the agricultural heartland of America, just makes sense," Chancellor Green said. "We plan to work aggressively with our Nebraska partners to make Nebraska Innovation Campus the new home to one or both of these agencies.”
The USDA is looking for new homes for two of its programs: The Economic Research Service and the National Institute of Food and Agriculture. The USDA announced they had received 136 Expressions of Interest, and have moved 67, including two Nebraska locations, to the next round of consideration. The application from the consortium led by Governor Ricketts and Secretary Johanns recommends Nebraska Innovation Campus in Lincoln as the destination for the programs.
Nebraska Advances in Process to House Two USDA Agencies
Today, U.S. Senator Deb Fischer (R-Neb.), a member of Senate Agriculture Committee, released the following statement after the United States Department of Agriculture (USDA) announced Nebraska is among the list of potential sites to house two of its agencies:
“I’m excited to see a Nebraska consortium make the list of 67 potential sites for the new home of two important USDA agencies. As Nebraskans know well, our state is a leader in ag and business-related research and it’s a wonderful place to live and work. All of these factors make Nebraska the perfect fit for the National Institute of Food and Agriculture and the Economic Research Service. I’m pleased to see Nebraska advance in this process and lend my full support to bringing these agencies to The Good Life.”
After hearing that USDA was planning to relocate these agencies, Senator Fischer joined the Nebraska delegation in a letter to Agriculture Secretary Sonny Perdue urging him to seriously consider the consortium to house these agencies.
NBB Urges Lawmakers to Quickly Extend the Biodiesel Tax Incentive
Today, Kurt Kovarik, Vice President of Federal Affairs for the National Biodiesel Board (NBB), submitted written testimony to the House Ways and Means Select Revenue Measures Subcommittee for a hearing titled, “Temporary Policy in the Internal Revenue Code.” NBB’s testimony emphasizes that the industry urgently needs an immediate extension of the biodiesel and renewable diesel tax incentive to end the current climate of policy uncertainty.
In the testimony, Kovarik writes, “While a long-term extension would provide the necessary policy certainty, our industry urgently needs an immediate extension of the biodiesel tax incentive for 2018 and 2019, at least, to end the current climate of uncertainty surrounding the industry.”
“The biodiesel and renewable diesel industry cannot reach its full potential with on-again, off-again tax policy,” Kovarik says in the testimony. “Biodiesel and renewable diesel producers and blenders have been operating for as many as 14 months with the expectation that they will eventually be able to claim credits for 2018 and amend their financial statements. Individual NBB members are already being forced to put projects on hold and reduce investments, due to uncertainty about renewal of the tax incentive. That uncertainty will affect future growth.”
EPA Proposes Rule to Allow E15 Waiver and to Improve RIN Market Transparency
Today, the U.S. Environmental Protection Agency (EPA) proposed regulatory changes to allow gasoline blended with up to 15 percent ethanol (E15) to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver for the summer months that has historically been applied only to E10. EPA is also proposing regulatory changes to modify elements of the renewable identification number (RIN) compliance system under the Renewable Fuel Standard (RFS) program to enhance transparency in the market and deter price manipulation.
“Consistent with President Trump’s direction, EPA is working to propose and finalize these changes by the summer driving season,” said Administrator Andrew Wheeler. “We will be holding a public hearing at the end of this month to gather important feedback.”
Under the proposed expansion, E15 would be allowed to be sold year-round without additional RVP control, rather than just eight months of the year.
Proposed reforms to RIN markets include:
- Prohibiting certain parties from being able to purchase separated RINs;
- Requiring public disclosure when RIN holdings exceed specified thresholds;
- Limiting the length of time a non-obligated party can hold RINs; and
- Increasing the compliance frequency of the program from once annually to quarterly.
EPA welcomes public comment on the proposal and intends to hold a public hearing on March 29. Additional details on the comment period and public hearing will be available shortly.
NCGA Statement on E15 Proposed Rule
National Corn Growers Association President Lynn Chrisp made the below statement today following the Environmental Protection Agency’s (EPA) release of a proposed rule to allow for year-round sales of E15.
“Today’s proposed rule is great progress to getting the rulemaking completed by the start of the summer driving season, June 1. NCGA appreciates EPA’s efforts to meet this deadline and we look forward to fully reviewing the content of the proposed rule. We will be providing comments to EPA and urging our membership to provide input during the comment process as well.
“Allowing year-round sales of higher blends of ethanol not only grows a domestic market for farmers, but E15 gives consumers more choice at the pump, a lower price option and greater environmental benefits from a cleaner fuel. It’s time to remove the barrier to all of these benefits.”
NeFB Supports Year-Round Sale of E15 Proposal
Steve Nelson, President, NE Farm Bureau
“Nebraska Farm Bureau is pleased that the Environmental Protection Agency’s (EPA) proposed rule moving forward in fulfilling the administration’s promise to support year-round E15 ethanol sales. Ethanol has become a vital component of Nebraska’s economy that is dependent on a thriving agriculture base. This rule would be both positive to farmers who are struggling as well as to the state’s economy as a whole.”
“As we see lower farm income and a poor long-term outlook in the agricultural economy, opening up markets to ethanol helps create new demand that farmers badly need. We look forward to working with the EPA to successfully implement year-round E15 ethanol sales.”
Ricketts, Ethanol Board Comment on Proposed E15 Rule
Today, Governor Pete Ricketts, the Nebraska Ethanol Board, and the Nebraska Corn Board commented on a proposed rule from the U.S. Environmental Protection Agency (EPA) that would provide Reid Vapor Pressure (RVP) relief, allowing for the year-round sale of E15 throughout the United States. This follows direction to the EPA from President Donald J. Trump on October 9, 2018 to begin the rulemaking process.
“Thank you to President Trump and Administrator Wheeler for moving us closer to year-round E15,” said Governor Ricketts. “As the second largest ethanol-producing state in the nation, we are excited because the change will help add even more value to the billions of bushels of quality grains Nebraska’s family farmers produce every year. We look forward to participating in the comment period and helping ensure all retailers offering E15 are included.”
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 1st and September 15th, federal rules limit E15 for use in flex fuel vehicles only due to RVP requirements.
“We are thankful the Trump Administration continues to move forward with the promise of year-round E15,” said Sarah Caswell, Nebraska Ethanol Board Administrator. “I am hopeful that, despite the tight timeline, the proposal will be finalized in time for the 2019 summer driving season and will enable all retailers equipped to offer E15 the ability to sell that fuel for use in light-duty vehicles 2001 and newer. We look forward to working with industry stakeholders and all our ethanol champions in government to make year-round E15 a reality.”
“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.”
“E15 is the most widely tested fuel ever,” said David Bruntz, chairman of the Nebraska Corn Board and farmer from Friend. “Not only do higher blends of ethanol benefit motorists through cost savings, cleaner air and increased vehicle performance, but they also help rural America. E15 is a win for consumers, a win for farmers, and a win for Nebraska’s economy.”
The EPA’s proposed rule is open for public comment until April 29, 2019. Nebraskans are encouraged to submit comments online at www.regulations.gov.
Iowa Farmers Praise the Release of the Proposed E15 Rule
The Environmental Protection Agency (EPA) released today the proposed rule for allowing E15 to be sold to 2001 and newer vehicles year-round across the country. If finalized, the rule will allow motorists to have uninterrupted access to the cleanest, lowest cost fuel for most vehicles on the road today.
“The Iowa Corn Growers Association® (ICGA) is excited to hear the EPA released the proposed rule of permitting year-around sales of E15,” says Curt Mether, President of ICGA. “This moves the rule in the right direction in hopes it is ready by the summer driving season beginning June 1. Year-round E15 sales would be a win for Iowa corn farmers and Iowa drivers.”
“We need to better understand the language included about Renewable Identification Numbers (RINS) and the impact that it would have to our farmers. We will review the details and will be asking our leaders and ICGA members to engage on the rule making,” Mether shared.
E15 is a fuel blend containing 15 percent ethanol and is approved for use in all 2001 and newer vehicles, making up roughly 90 percent of the vehicles on the road today. Currently, outdated Reid Vapor Pressure (RVP) regulations force fuel retailers to restrict sales of E15 to flex fuel vehicles (FFV) only from June 1 to September 15, the peak driving season. Today’s proposed rule puts steps in motion to allow year-round sales of E15.
Naig Applauds Proposed Rule Allowing Year-Around Sales of E15
Iowa Secretary of Agriculture Mike Naig issued the following statement today applauding the Environmental Protection Agency Administrator on the issuance of a proposed rule allowing the year-round sale of 15-percent ethanol blends. The proposal reverses a thirty-year old rule limiting the sale of E15 to June 1 to September 15. The proposal could be implemented in time for the summer driving season.
"Administrator Wheeler’s follow through on President Trump’s directive to allow the market to access E15 year-around is welcome news for our farmers during these challenging times. The renewable fuels industry provides value to Iowa farmers, our rural communities and the environment. The proposed rule is an important step towards fulfilling the country’s increasing demand for cleaner fuels,” said Naig. “With just 80 days left until the summer driving season, it is imperative that the EPA completes this process by June 1. We’ll continue to review the proposed RINS reform provisions to ensure the resulting rules support the RFS and promote investments in higher blends of renewable fuels.”
The renewable fuels industry accounts for more than $4.6 billion (about 3.5 percent) of Iowa’s GDP, generating $2.3 billion of income for Iowa households, and supporting more than 43,000 jobs throughout the state, according to the Iowa Renewable Fuels Association. Congress created the renewable fuel standard (RFS) program to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil.
NFU Applauds Release of E15 Waiver Proposal
In a move to expand use of higher level blends of ethanol, the U.S. Environmental Protection Agency (EPA) today issued a proposed rule to allow the year-round sale of E15, or gasoline blended with 15 percent ethanol. The timing of the proposed rule will hopefully allow EPA to issue a final rule by June 1, the start of the summer driving season. Sales of E15 gasoline are currently prohibited during the summer in many states.
National Farmers Union (NFU) President Roger Johnson issued the following statement in response to the release of the proposed rule:
“The move to expanded use of higher level blends of ethanol is absolutely vital at this moment in time. More E15 use means we can begin to dig into our massive oversupply of corn, lifting prices ever so slightly for all commodities. Farmers Union applauds EPA for releasing this proposed rule, and we look forward to helping the agency get this in effect by summertime.
“Moving forward, we need to build on this achievement by expanding use of E30 gasoline. The result would be a necessary boon for farm families stuck with low prices in a struggling farm economy and rural communities that are in need of economic rejuvenation. It would also lead to cheaper gasoline prices, better performing engines, and significant climate gains for consumers. NFU urges federal policymakers to remove barriers to higher level blends of ethanol and work to encourage the continued growth of the American biofuels industry.”
AFBF Supports Year-Round E15 Proposal
American Farm Bureau Federation President Zippy Duvall
“The Environmental Protection Agency’s proposed rule is one step closer to fulfilling the administration’s promise to support year-round E15 sales. As our country has worked to break our dependence on foreign oil, our farmers have played a major role in helping us become more energy independent. After years of declining farm income, opening up markets to additional fuel choices will help create new demand that farmers desperately need. We look forward to working with EPA to successfully implement year-round E15 sales.”
Peterson Cautiously Optimistic on new EPA rule on E15
House Agriculture Committee Chairman Collin Peterson of Minnesota released the following statement in response to the EPA’s proposed rule to allow E15 waiver and to improve RIN market transparency:
“I applaud the EPA’s release of this proposed rule. It is long overdue and the result of much hard work on the part of U.S. farmers, the ethanol industry, and the Congressional Biofuels Caucus.
The efforts to bring transparency to the RIN system are needed, but I’m afraid that connecting these two issues in one rule is going to bog down moving forward on both. This would affect the E15 timeline and I would want to make sure it’s done by summer driving season.
And while I applaud the efforts in this rulemaking, it doesn’t lessen the damage caused by the Administration’s misuse of the small refinery exemption.
I encourage the Administration to consider all options to advance the viability of our domestic biofuels industry, including a more efficient pathway process at EPA and ensuring access for biofuels in export markets.”
The EPA announcement follows years of advocacy work to allow E15 to be sold year-round by the biofuels industry, agriculture producers, and Congressional Members who support renewable fuels. The EPA regulates the Reid vapor pressure (RVP) of gasoline sold at retail stations between June 1 and September 15. During this timeframe, gasoline blends with 15% ethanol are not allowed to be sold at retail stations, causing inconsistent sales of E15. Long overdue, the EPA is beginning to remedy this issue with today’s proposed rule.
The agency has history of granting so-called small refinery exemptions to profitable refineries. These waivers allow refineries to avoid their blending requirements under the RFS, removing renewable fuel gallons from the marketplace. Since 2017, the EPA granted 48 waivers which allowed refineries to avoid blending 2.25 billion gallons of ethanol into the marketplace. Before major changes are proposed to the RIN marketplace, the EPA should address the overuse of these waivers.
ACE reaction to EPA’s proposed rule to allow E15 year-round
The American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement after the U.S. Environmental Protection Agency (EPA) released its proposed rulemaking to allow the sale of E15 year-round, as well as its reform proposals to the Renewable Identification Number (RIN) credit market:
“We’re pleased EPA has finally publicized its proposal to allow retailers to offer E15 to their customers year-round. With just 80 days to go until the start of the 2019 summer driving season, we will urge stakeholders to provide public comment to EPA, so a legally-defensible rule can be in place by June 1. Time is of the essence, particularly since EPA insists on saddling the E15 rulemaking with controversial RIN reforms that will need to be carefully reviewed to ensure they don’t undermine ethanol demand.
“Without a final rule in place by June 1, this year would mark the eighth time, since EPA originally approved a waiver for E15, that fuel marketers in many parts of the country have had to prohibit their customers from purchasing a lower-cost, higher-quality fuel option at the pump during the busy summer driving months.
“E15 has lower evaporative emissions than E10 and straight gasoline and has been approved by EPA for use in 2001 and newer vehicles, 90 percent of the cars on the road today. Access to E15 all year will increase the fuel’s availability, reduce refiner RIN costs, and open much-needed market access for surplus corn.
“As pleased as we are with this important step in the process, the upside potential of E15 year-round will be blunted unless and until EPA returns sanity to the way it handles Small Refinery Exemptions under the Renewable Fuel Standard (RFS). EPA needs to restore the 2.25 billion gallons of biofuel blending obligations waived for large, profitable refineries.”
RFA Statement on EPA Proposal for Year-Round E15, RINs Reform
Renewable Fuels Association (RFA) President and CEO Geoff Cooper offered the following statement on EPA's Notice of Proposed Rulemaking to allow year-round sales of E15 in conventional gasoline markets and modify Renewable Identification Number (RIN) provisions under the RFS:
“Today’s proposed rule means EPA is one step closer to making good on President Trump’s promise to allow year-round sales of E15. With just 80 days left before the start of the summer driving season, finalizing and implementing the E15 regulatory fix remains a tall order. That is why we have urged EPA to separate the year-round E15 provisions from the RIN reform provisions, and move forward as quickly as possible to finalize a practical and defensible year-round E15 solution. With ethanol plants shutting down or idling and farmers experiencing the worst conditions in more than a decade, removing the summertime ban on E15 once and for all would send a desperately needed signal to the marketplace.
"We are carefully reviewing the details of the proposed rule and look forward to providing EPA with extensive technical and legal comments to support an expeditious and legally sound resolution of this decades-old red tape barrier. RFA and its member companies will also testify in support of year-round E15 at the upcoming public hearing."
Growth Energy Welcomes EPA's Move to Provide Uninterrupted Access to E15 Ethanol Blends
The U.S. Environmental Protection Agency (EPA) today released its proposed rule that would allow E15, a fuel blend with 15 percent ethanol, to be sold year-round. Growth Energy, the nation’s leading advocate for ethanol, welcomed the proposal as a critical step toward providing consumers with uninterrupted access to a cleaner, lower-cost option at the fuel pump, but also cautioned against any changes to the Renewable Identification Number (RIN) market that could undercut investment in delivering higher ethanol blends.
“This rule is a critical milestone for rural Americans who make renewable biofuels and for all American drivers, who may soon have a cleaner, more affordable, higher-octane fuel all year long,” said Growth Energy CEO Emily Skor. “We are still reviewing details of the proposal, and we look forward to working with the EPA to ensure that any changes – particularly in the RIN market – do not upend the marketplace, and continue to encourage investment in E15 and other higher ethanol blends. We appreciate the administration’s efforts to fulfill the president’s promise and will continue in our commitment to making the environmental and economic benefits of E15 available to consumers nationwide.”
The EPA announcement follows a decade of efforts by Growth Energy to expand consumer access to E15, most recently through the E15 Now campaign, which promoted the administration’s commitment to year-round sales of E15. The proposed rule would provide relief to over 1,700 retail stations across 30 states that now sell E15, often for only eight months out of the year, and remove a key regulatory barrier for other retailers seeking to offer a lower-cost, higher-octane option to customers.
The proposed rule would lift a nearly thirty-year-old limitation on E15, which restricts sales between June 1 and September 15, and today’s announcement from EPA marks the first step in the rulemaking process. The EPA has committed to completing the rulemaking process by June 1, 2019, the start of the summer driving season. Before finalizing the rule, the agency will now accept comments from biofuel producers, farmers, and numerous other stakeholders.
Terminal Availability of E15 Grows as EPA Prepares to Remove RVP Barrier
Renewable Fuels Assoc. VP of Industry Relations Robert White
When E15 (gasoline containing 15% ethanol) debuted in 2012, it was created at retail sites by using blender pumps to dilute E85 (fuel containing up to 85% denatured ethanol) with E10. Blender pump technology was not new; in fact, it had been used for decades to make midgrade gasoline, combining premium and regular unleaded. Many of the retailers that adopted E15 in subsequent years took the same approach to blending E15. Some of this is due to funding opportunities like USDA’s Biofuels Infrastructure Partnership (BIP) Program and the ethanol industry’s Prime the Pump initiative.
But many retailers were not able to make E15 onsite via blender pumps because of infrastructure limitations or other reasons, meaning they were missing out on the opportunity to offer lower-cost, higher-octane E15 to their customers. For the first several years after E15 was approved, there were no fuel terminals that offered pre-blended E15 as an option. Thankfully, that all started to change in 2016.
The HWRT Oil Company was the first to announce E15 availability at terminals in Illinois, Arkansas, and Indiana in 2016. A year later, Magellan announced E15 availability throughout its midcontinent terminal system, which includes more than 50 sites. GROWMARK Energy followed suit in 2018, announcing E15 in Iowa, Illinois, and Missouri and just last week, the company expanded its E15 footprint by adding 17 new terminals in Arkansas, Kansas, Illinois, Missouri, Nebraska, Oklahoma, and South Dakota.
Fuel marketers and retailers around these terminals can now take delivery of E15 just like they can with E10 regular unleaded, premium, and diesel. If you have available tanks, you may be able to offer E15 quickly. E15 does have a few extra regulatory requirements, but none that should deter a retailer from trying it. It is important to check your equipment for compatibility above E10, and RFA has assisted hundreds of retailers with these evaluations. Each station is different and requires careful analysis and inspection to determine if any upgrades or new equipment is needed or required. Most tanks are compatible with E15, as are most dispensers. In fact, all dispensers from Wayne Fueling Systems have been compatible with E15 since the early 2000s, and with E25 (gasoline containing 25% ethanol) for the past three years.
But terminal operators and position holders are just like any other businesses—they need certainty. That’s why it is crucially important for the U.S. Environmental Protection Agency (EPA) to expeditiously complete the regulatory fix necessary to allow year-round sales of E15 before commencement of the summer driving season. As recently underscored by GROWMARK, terminals will stop offering pre-blended E15 on May 1—unless there is a clear and compelling signal from EPA that the current summertime “ban” on E15 will be lifted before June 1.
Today, more than 1,600 stations in 30 states offer E15. While E15 sales stats vary per station, most are reporting that overall sales are climbing. These sales are attributable not just to returning customers who are choosing E15 instead of E10, but also to new customers visiting the stations for the first time because of lower prices and more options. New customers also mean increased sales inside the station too. These stations also have a new way to differentiate themselves from their competition when advertising locally or posting on their price sign.
Consumers remain on the hunt for a lower cost fuel option that is safe for their vehicles and E15 can provide that to them. E15 successfully completed more than 6 million miles’ worth of testing before EPA approved the fuel in 2012, and billions of hassle-free miles have been driven on E15 by the motoring public. There has not been one reported issue with E15 during fueling or when driving on E15. It also remains a lower cost, higher octane option for retailers and consumers. Thanks to these terminal companies, it also gets easier every year for more retailers to offer the fuel.
RFA stands ready to help more fuel terminals with the process, as well as fuel retailers considering a change to their fuel options. If you would like to learn more about the RFA, the ethanol industry, or higher blends, please visit: https://ethanolrfa.org/retailers/.
NGFA, agricultural groups, support Tarbert as CFTC chair
The National Grain and Feed Association (NGFA) this week urged Senate Agriculture Committee leaders to confirm Heath Tarbert as the next chairman of the Commodity Futures Trading Commission (CFTC).
“Dr. Tarbert would bring a deep background in financial regulation, along with experience holding important leadership posts in the private and public sector,” said the NGFA and 24 other agricultural groups in a March 1 letter to Senate Agriculture Committee Chairman Pat Roberts, R-Kan., and Ranking Member Debbie Stabenow, D-Mich. “He has earned a reputation as a leader known for his integrity, professionalism, fairness, expertise and collaboration, which are all important attributes to being a strong leader at the CFTC.”
The Senate overwhelmingly confirmed Tarbert in 2017 to serve as assistant secretary of the treasury for international markets. In this role, he worked extensively with the European Commission and Parliament to include language in their recently proposed legislation to strengthen financial stability while advancing home regulatory deference so that U.S. end-users are not subject to conflicting regimes, the letter noted.
While Tarbert’s background is primarily in the financial sector, the agricultural groups said he has committed to working with the agriculture sector. “Additionally, in our meetings with him, it is clear that Dr. Tarbert has made the effort to learn about agricultural markets and our use of futures and other derivatives products,” the letter noted.
Tarbert “will strike the right balance in providing input into CFTC’s oversight of the financial and commodity markets,” the NGFA and other agricultural groups wrote. “This includes providing for reduced systemic risk, ensuring market integrity and regulatory consistency, while also considering the important role these markets play in the ability of farmers, ranchers, and agribusinesses to hedge their risks efficiently and effectively.”
Tarbert’s nomination is scheduled to be considered by the Senate committee on March 13.
2018 Annual Milk Production up 1.0 Percent from 2017
The annual production of milk for the United States during 2018 was 218 billion pounds, 1.0 percent above 2017 according to USDA. Revisions to 2017 production increased the annual total 61 million pounds. Revised 2018 production was up 99 million pounds from last month's publication. Annual total milk production has increased 15.0 percent from 2009.
Production per cow in the United States averaged 23,149 pounds for 2018, 235 pounds above 2017. The average annual rate of milk production per cow has increased 12.6 percent from 2009.
The average number of milk cows on farms in the United States during 2018 was 9.40 million head, down 0.1 percent from 2017. The average number of milk cows was revised up 14,000 head for 2018. The average annual number of milk cows has increased 2.1 percent from 2009.
2018 Milk Production by State:
(milk cows - lbs./cow - 1,000 lbs. milk produced - % change from 2017)
Nebraska ....: 60,000 24,000 1,440.0 -0.3
Iowa ...........: 220,000 23,945 5,268.0 +1.7
January Milk Production up 1.3 Percent
Milk production in the 23 major States during January totaled 17.5 billion pounds, up 1.3 percent from January 2018. December revised production, at 17.1 billion pounds, was up 0.8 percent from December 2017. The December revision represented an increase of 2 million pounds or less than 0.1 percent from last month's preliminary production estimate.
Production per cow in the 23 major States averaged 2,011 pounds for January, 38 pounds above January 2018. This is the highest production per cow for the month of January since the 23 State series began in 2003.
The number of milk cows on farms in the 23 major States was 8.72 million head, 52,000 head less than January 2018, but 2,000 head more than December 2018.
IOWA: Milk production in Iowa during January 2019 totaled 457 million pounds, up 2 percent from the previous January according to the latest USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during January, at 220,000 head, was unchanged from last month and last year. Monthly production per cow averaged 2,075 pounds, up 40 pounds from last January.
Administration’s Budget Proposal Takes a Big Bite out of Bean Priorities
From crop insurance to conservation programs and transportation, President Trump’s proposed budget would significantly slash programs vital to the soybean industry.
Cuts to crop insurance and farm subsidies would be deep, totaling $28 billion over 10 years. This would directly impact soy growers in several ways: The majority of those savings would come from reducing the portion of farmers’ crop insurance premiums covered by taxpayers from 62 percent down to 48 percent. And, the President’s budget proposes to reduce the cap on Adjusted Gross Income (AGI) for recipients of Title I program payments from $900,000 to $500,000. This provision was included in the Senate version of the new Farm Bill and was not adopted by the Conference Committee.
ASA president and soybean farmer from Clinton, Kentucky, Davie Stephens said, “These cuts seem like a 180 from support we saw a few short months ago. President Trump praised the 2018 Farm Bill and the bipartisan majorities that passed it in both the House and the Senate at the signing ceremony on December 20. I and other farmers are confused as to why his budget proposal would include wholesale changes and spending cuts in Farm Bill programs.”
ASA is also very concerned the Trump Administration’s budget proposal includes reductions to U.S. Army Corps of Engineers programs that support inland waterways infrastructure. Cutting these programs would be contrary to President Trump’s pledge to invest in infrastructure, which is vital to improving the global competitiveness of U.S. soybeans and other commodities. Congress has rejected proposed cuts to these programs in the past, and ASA will continue to work with its coalition partners to significantly increase investments in inland waterways infrastructure.
Said Stephens, “Given the significant disruptions that we are experiencing in trade markets for soybeans, it is more important than ever to invest in infrastructure that will improve our future global competitiveness.”
Conservation program cuts, as proposed, would total nearly $9 billion over the next decade. The budget would eliminate the Conservation Stewardship Program, which encourages farmers to use long-term conservation practices. The White House also vowed to target enrollment and incentive payments for the Conservation Reserve Program.
Regarding trade, the Administration has again proposed ending the Food for Progress program, which donates U.S. commodities, including soy products, to developing nations. However, the White House proposal does call for an unspecified increase in funding for the Office of the U.S. Trade Representative to support the President’s trade agenda.
Syngenta scientists discover one-step genome-editing technique that accelerates seed breeding
Syngenta researchers recently published a paper in Nature Biotechnology, an international science journal, detailing their discovery of a genome-editing technique called haploid induction editing (HI-Edit™) technology, which ultimately reduces the time it takes to develop commercial crop varieties.
HI-Edit refers to the reproductive process of haploid induction (HI), which occurs naturally in wheat, corn, barley and tobacco, combined with a genome-editing technology such as CRISPR-Cas9. With HI-Edit, breeders can modify crops at various stages in the seeds research and development process without the substantial cost and time associated with introgression, the traditional method of transferring desirable genes from one crop variety into another, which can take up to seven years to fully complete.
“Few commercial crop varieties are responsive to direct genetic manipulation, so until now, we have had to use techniques that take several years and cost millions of dollars,” said Tim Kelliher, Ph.D., Syngenta fellow and lead author of the paper. “With this new method, we can harness the potential of advanced genome-editing technologies to make genetic improvements faster in the varieties growers want.”
While the research conducted to date has focused on field corn and sweet corn crops, there is evidence the technique could be applied to wheat. The team is also working on similar methods for the genus of plants related to cabbage, broccoli, cauliflower and kale that could eventually lead to breakthroughs in soybeans and tomatoes.
“Our investment in R&D, combined with the talent and curiosity of our researchers, is helping bring innovations like HI-Edit to life,” said Ian Jepson, Ph.D., head of trait research and developmental biology and RTP site business head at Syngenta. “Genome editing is an important tool in the plant breeding toolbox, and discoveries in this area of research are helping us deliver on our mission to help farmers grow more resilient, higher-yielding crops.”
This discovery aligns with Syngenta’s commitment to make crops more efficient, one of the tenets of The Good Growth Plan, Syngenta’s commitment to improve the sustainability of agriculture.
To read the abstract, please visit https://www.nature.com/articles/s41587-019-0038-x.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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