Wednesday May 20 Ag News

USDA Seeks Sanitizer from Nebraska-Based Operation

A vision between two ethanol advocates to use excess ethanol to make hand sanitizer for Nebraskans has now became a nationwide effort. Nearly 7,000 gallons of Nebraska-made sanitizer has been donated and shipped to Maryland and dispersed throughout the country to United States Department of Agriculture (USDA) Food Safety Inspection Service (FSIS) employees responsible for ensuring the safety of meat, poultry, and egg products. There are 6,500 FSIS field offices across the nation.

The USDA's initial request included 6,500 gallons of hand sanitizer but deliveries have continued as the need remains – now totaling 6,700 gallons. An additional 6,500 gallons is planned to also be donated. Hunter Flodman, PhD., assistant professor of practice in chemical and biomolecular engineering at the University of Nebraska-Lincoln (UNL), says this will be no problem. Thanks, largely, to a very generous donation of food grade (FCC) alcohol from Green Plains Inc (NASDAQ:GPRE). Green Plains has been a huge champion, donating 81,000 gallons of FCC grade alcohol since the temporary hand sanitizer production facility began in early April. When the request came in from the USDA, they did not hesitate.

“Green Plains and our employees remain committed to providing high quality, FDA approved, FCC grade alcohol for the use in production of hand sanitizer,” said Todd Becker, president and CEO of Green Plains. “We are happy to be able to fill a need for the USDA Food Safety Inspection Service employees, as they work hard to keep America’s food supply chain safe.”

Green Plains, which operates 13 biorefineries across the United States, has donated more than 6,800 gallons of FCC grade alcohol for the USDA project. The donated product comes from Green Plains Inc’s York, Nebraska, facility. FCC Grade alcohol is higher in purity and quality than traditional fuel grade ethanol. Green Plains does not sell any fuel grade alcohol for use in disinfectants or sanitizers.

“I cannot say enough about the incredible generosity of our partners in the ethanol industry during an economically challenging time,” Flodman said. “In this case, Green Plains is helping ensure that consumers get a safe product, whether they buy meat at a supermarket or a meat locker in their community.”
Other organizations, including BASF, Cargill, Johnson Matthey, Lee Containers, Phillips 66 Co., the State of Nebraska, and Syngenta have also contributed.

"When production started initially, we thought we'd donate about 4,000 gallons for essential businesses around Nebraska. That ended up happening in just the first two days," Dr. Flodman said. "The whole operation came together very quickly so we didn't have a plan for how much and how long. However, the need hasn't been met. There is still a shortage of hand sanitizer. More than 25 companies have stepped up to donate the raw materials, and the University [of Nebraska-Lincoln] continues to give us the resources we need so we can continue to donate hand sanitizer to reduce the spread of COVID-19."

The hand sanitizer production facility has a home in the parking lot of Nebraska Innovation Campus' (NIC) Food Processing Center (FPC). Volunteers have mixed more than 60,000 gallons of hand sanitizer   – all from donated raw materials – since the operation began April 5.

Dr. Flodman, who is also the technical advisor for the Nebraska Ethanol Board (NEB), and Jan tenBensel, NEB Chairman, have spearheaded the project. They started brainstorming ideas on April 1, and by April 6 the team was in full production mode. Currently, the team consists of just a handful of people who have undergone safety training. They have worked tirelessly for the past several weeks to recruit supplies and fulfill requests. These volunteers include Dr. Flodman; tenBensel; Dr. Terry Howell Jr., FPC executive director; Russell Parde, FPC pilot plant manager; and additional FPC and UNL Engineering staff, including Heather Newell; Julie Reiling: Leonard Akert; Pete Hilsabeck; Sarah Herzinger; and Tom Dobesh. UNL Environmental Health and Safety has contributed time and resources to the project including full time volunteer TJ Bond. The Nebraska Forest Service, through Lewis Sieber, has handled raw material transport and logistics. 

“These USDA inspectors provide critical support to our food supply chain and also the livestock industry here in our state,” Howell said. “It’s been a privilege for the Food Processing Center and its faculty and staff to contribute to this important project. It’s humbling to be able to make a difference during this health care crisis.”

The partnership with the FPC is key because it is U.S. Federal Drug Administration (FDA)-approved facility for the production of food. The FPC had to register with the FDA as an over-the-counter drug manufacturer for the process of producing hand sanitizer. Without them, the project couldn't have even begun. Now, with the FDA tightening restrictions on who can and cannot provide ethanol for hand sanitizer, the partnership with Green Plains is integral.

"At first the FDA relaxed restrictions which allowed many ethanol plants to step up in this time of need. Now, we fear these tightened restrictions on fuel-grade ethanol will worsen sanitizer shortages," tenBensel said. "We are very encouraged that Green Plains continues to support these efforts and will continue to forge ahead, but we feel this is quite a blow to the plants who invested in equipment for hand-sanitizer production to offset this slump in fuel demand. Safety is, of course, our No. 1 priority and the very reason we began this project, so we understand the FDA's caution."

So far, the hand sanitizer made at NIC has been delivered to first responders, hospitals, nursing homes, and other essential businesses and organizations throughout Nebraska and now to Maryland. Fulfilling the USDA's order requires multiple deliveries because of transportation restrictions. Once dropped off, the USDA manages distribution to its employees.

Production will continue as long as resources allow, tenBensel said. So far, every single gallon of product has been provided to these organizations at no cost. For more information about the project, visit handsanitizer.unl.edu.



USDA MEATPACKING INSPECTORS RECEIVE HAND SANITIZER MADE AT NEBRASKA U

Food safety inspectors employed by the USDA’s Food Safety and Inspection Service are receiving a supply of hand sanitizer thanks to an innovative partnership between Nebraska’s ethanol industry and the University of Nebraska–Lincoln.              

The hand sanitizer will be used by the men and women responsible for inspecting more than 6,500 meat-processing facilities across the country, ranging from “mom-and-pop” facilities that handle only a few animals at a time to the giant beef, poultry and pork plants that employ thousands of people.

“Food Safety and Inspection Service inspectors provide critical support to our food supply chain and also to the livestock industry across our nation,” Chancellor Ronnie Green said. “Thanks to our UNL ingenuity and the generosity of our Nebraska ethanol industry, we are pleased to get hand sanitizer into their possession so they can stay safe at their jobs.”

Hunter Flodman, an engineering professor of practice at Nebraska who has helped spearhead the project, said more than 6,800 gallons of hand sanitizer has been shipped to the USDA, with the possibility of significantly more gallons being supplied in coming weeks.

Flodman serves as technical adviser to the Nebraska Ethanol Board. Terry Howell, executive director of the Food Processing Center at Nebraska Innovation Campus, also leads the project on behalf of the university.

“This project represents the true grit of Nebraskans and the innovative ways the agriculture community joins together to take care of one another,” said Nebraska Department of Agriculture Director Steve Wellman. “We appreciate the dedication and donations that the ethanol industry, hard hit by this virus themselves, has made to see this project through, as well as the perseverance of the Food Processing Center staff to create a product that will help slow the spread of COVID-19.”

Green Plains Inc., which operates 13 biorefineries across the United States, has donated a significant amount of FCC Grade alcohol to the project from its York, Nebraska, facility. The alcohol is higher in purity and quality than traditional fuel-grade ethanol. Green Plains does not sell any fuel-grade alcohol for use in disinfectants or sanitizers.

“During this health emergency, Green Plains and its employees feel a deep responsibility to do our part to help address this crisis in communities nationwide,” said Todd Becker, president and CEO of Green Plains. “We are pleased to donate high-quality, FDA approved, FCC Grade alcohol for the USDA’s Food Safety and Inspection Service team.”

Other supplies have been contributed by BASF, Cargill, Syngenta, Phillips 66 and the State of Nebraska, among others. Faculty and staff affiliated with the Food Processing Center, College of Engineering, Environmental Health and Safety, and Nebraska Forest Service handle production.

“I cannot say enough about the incredible generosity of our partners in the ethanol industry during an economically challenging time,” Flodman said. “In this case, Green Plains is helping ensure that consumers get a safe product, whether they buy meat at a supermarket or a meat locker in their community.”

Thus far, the improvised factory at Nebraska Innovation Campus has manufactured more than 60,000 gallons of the highly needed product. The hand sanitizer has been distributed at no cost through state government and local public health districts to more than 500 organizations and facilities across Nebraska, including frontline health care providers and first responders.

“It’s been a privilege for the Food Processing Center and its faculty and staff to contribute to this important project,” Howell said. “It’s humbling to be able to make a difference during this health care crisis.”

The USDA is among the entities experiencing difficulties because of the critically short supply of hand sanitizer during the COVID-19 crisis. Meanwhile some of Nebraska’s 25 ethanol plants have idled because of storage problems and the economics of the energy market right now. Several Nebraska ethanol producers have donated their products nationally to hand sanitizer manufacturing efforts.

Flodman worked with Jan tenBensel, a Cambridge, Nebraska, farmer and board chairman for the Nebraska Ethanol Board, to identify facilities and procure donated supplies for the project. Mark Riley, associate dean for research at the Nebraska College of Engineering, contacted Terry Howell about mobilizing the Food Processing Center for the project, which required the center to register with the FDA as an over-the-counter drug production facility, among other requirements. Flodman and the Nebraska Ethanol Board worked with the federal Food and Drug Administration to relax regulations so that fuel ethanol producers could provide their product to create hand sanitizer.



OCM Calls for Moratorium on Beef Imports

Today, Lincoln, Nebraska-based Organization for Competitive Markets (OCM) sent a letter to United States Secretary of Agriculture Sonny Perdue, calling on him to follow President Trump’s suggestion yesterday to terminate the importation of cattle into the United States.

“While we agree with that strategy, we feel it does not go far enough,” said Ben Gotschall, OCM Interim Executive Director.  “The U.S. must also ban beef imports, especially beef imported from Brazil.  The February 2020 lift of the ban on Brazilian beef imports, which we opposed, was a mistake, and needs to be reversed.”

For two years the U.S. had closed its border to Brazilian beef after numerous concerns were raised about its safety. In 2017, JBS was caught bribing meat inspectors and exporting adulterated rotten meat worldwide. Because the U.S. no longer requires mandatory Country-of-Origin Labeling on beef, and the USDA allows imported meat to be falsely labeled “Product of U.S.A.,” consumers are not able to distinguish between U.S. beef and the new imports.

OCM’s call for a ban comes after reports of beef shortages at the same time that producers are struggling to find markets for their cattle.  Also during this time, Brazil-based JBS, the world’s largest meatpacking company, has announced that it is poised to flood the American market with its imported beef.

“The market disruption caused by Covid-19 has left cattle producers hurting across the country.  Low prices, processing bottlenecks and drought have put unprecedented pressure on American farmers and ranchers,” said Gotschall. “In the absence of Country of Origin Labeling, to continue to allow imported cattle and foreign beef to unfairly compete with domestic producers and products is kicking American ranchers while they are down.”

OCM’s letter also stated that the group is working proactively with its members and stakeholders to develop policy recommendations for a transition to a more decentralized food system and reiterated its call for a breakup of the “Big Four” meatpacking companies.

 

Ranch Group Provides President Trump with Additional Justification for Halting Cattle Imports

Last night R-CALF USA sent a letter to President Donald J. Trump commending his suggestion that the United States should consider halting imports of cattle from countries that have not treated American ranchers fairly.

The letter offers additional justification for Trump’s suggestion, stating that U.S. cattle ranchers have been particularly harmed by the influx of cheaper live cattle imports that produce undifferentiated beef, which effectively displaces American ranchers’ access to their own domestic market.

R-CALF USA stated that during the ongoing COVID-19 crisis, importers have been displacing American ranchers’ access to their own market with tens of thousands of imported live cattle each week. The group stated this was unconscionable given that American ranchers have cattle to sell but because of the crisis, they have no market to sell into.

The group wrote that for many years live cattle imports have undercut domestic cattle prices, thus depriving American cattle ranchers the opportunity to earn a competitive income from the marketplace.

To substantiate this claim, the group pointed to testimony by both the meatpackers and the National Cattlemen’s Beef Association (NCBA) before the U.S. International Trade Commission disclosing that 282K cattle are imported into the Northwest each year for the purpose of helping their feedlots and packing facilities run at optimal levels.

But R-CALF USA states that the data show that these 282K live cattle imports each year has resulted in a 34% decline in the number of Northwest cattle ranchers and a decline of 12% of the beef cows in that region.

“Thus, the facts show that the 282,000 annual live cattle imports (fat cattle and feeder cattle) from Canada effectively displaced about 180,000 head of beef cows and 18,831 cattle ranches, and that was just in the Northwest,” wrote R-CALF USA.

The letter also asserts that Canada and Mexico, the two countries from which the U.S. imports about 170K of live cattle each month, have treated the American rancher unfairly by their trade practices that persistently create a trade surplus for them at the expense of American ranchers; and by depriving American consumers of their right to know where their beef comes from by exploiting the dysfunctional World Trade Organization to undermine the U.S. Mandatory Country-of-Origin Labeling (M-COOL) law even after the law was upheld by a U.S. appellate court as being in compliance with the U.S. Constitution.

The letter concludes by stating, “Ending live cattle imports will help reverse the ongoing contraction of America’s ranching industry.”



Naig Signs Cooperative Interstate Shipment Agreement with USDA FSIS

Iowa Secretary of Agriculture Mike Naig finalized a Cooperative Interstate Shipment (CIS) agreement with the United States Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS) today. This means state-inspected meat and poultry processors in Iowa are one step closer to being able to sell their products across state lines. Eligible processors can apply for admission to the CIS program now.

“The COVID-19 pandemic has highlighted the important role that local community meat lockers play in the food supply chain,” said Secretary Naig. “I am excited for these meat processors to have the opportunity to grow their businesses, move more products and access new markets. It also gives consumers more access to Iowa-raised and processed meat.”

State-inspected meat processors are smaller than their federally-inspected counterparts but are held to equal standards. To qualify for the CIS program, a meat processor must have fewer than 25 full-time employees and comply with all federal food safety, sanitation and facility regulations. Individual livestock producers can not apply to the CIS program but they can sell their meat and poultry products across state lines if they are processed at a CIS facility.

State of Iowa meat inspectors visit state-inspected facilities every day they process products that bear the mark of inspection. State meat inspectors examine the livestock, quality of the meat, facility sanitation and record-keeping so consumers can have confidence in the meat and poultry products they buy.  CIS facilities will also receive periodic visits from USDA FSIS officials to ensure they are operating in compliance with federal guidelines.

Iowa is the seventh state to enter into a CIS agreement with the USDA FSIS. To date, there are 68 official, state-inspected facilities in Iowa who are eligible to apply to the CIS program. Meat processors who are interested in applying for the CIS program should visit iowaagriculture.gov or call 515-281-3338.

A complete list of approved CIS establishments is available on the USDA FSIS website. Iowa plants will be added to this list as they apply and are accepted into the CIS program.



Ranch Group Applauds USDA Effort to Begin Allowing State Inspected Beef Plants to Sell Across State Lines

In mid-March R-CALF USA sent a letter to President Donald J. Trump urging seven specific actions to combat the COVID-19 crisis for American ranchers and American consumers.  Included in those actions was the request to eliminate the red tape that prevents state-inspected beef plants from selling beef across state lines. The group stated this action was needed to increase competition for domestic cattle and eliminate the current bottleneck in beef distribution to consumers.

Today, Iowa Secretary of Agriculture Mike Naig issued a news release revealing that Iowa had finalized a Cooperative Interstate Shipment (CIS) agreement with the U.S. Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS) to provide state-inspected meat and poultry processors in Iowa the opportunity to sell their products across state lines.

The Iowa news release states that State-inspected meat plants, while smaller than their federally-inspected counterparts are nevertheless held to equal standards.

R-CALF USA encourages all states to immediately begin applying for the CIS program administered by the FSIS so they too can begin alleviating the serious bottleneck that has occurred in the beef supply chain, a bottleneck marked by the hundreds of thousands of slaughter-ready cattle that are sitting in U.S. feedlots with no market to sell into.

R-CALF USA CEO Bill Bullard said the cattle industry is in a race with the clock to utilize all available resources to begin easing the live cattle bottleneck, including giving State-inspected meat plants the ability to expand their marketing reach.

“We applaud both the USDA and the state of Iowa for acting swiftly to help meet the U.S. cattle industry’s serious challenge as well as to help ensure that all Americans can access the best beef in the world, which is beef produced by American ranchers,” Bullard said.



April Milk Production in the United States up 1.4 Percent

Milk production in the United States during April totaled 18.7 billion pounds, up 1.4 percent from April 2019.  Production per cow in the United States averaged 1,993 pounds for April, 18 pounds above April 2019. The number of milk cows on farms in the United States was 9.38 million head, 49,000 head more than April 2019, but 4,000 head less than March 2020.

IOWA: Milk production in Iowa during April 2020 totaled 449 million pounds, up 2% from the previous April according to the latest USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during April, at 219,000 head, was the same as both last month and last year. Monthly production per cow averaged 2,050 pounds, up 30 pounds from last April.



March Margin Triggers Dairy Margin Coverage Program Payment

The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced this week that the March 2020 income over feed cost margin was $9.15 per hundredweight (cwt.), triggering the first payment of 2020 for dairy producers who purchased the appropriate level of coverage under the Dairy Margin Coverage (DMC) program.

“This payment comes at a critical time for many dairy producers,” said FSA Administrator Richard Fordyce. “It is the first triggered DMC payment for 2020, and the first payment to dairy producers in seven months.”

Current projections indicate that a DMC payment is likely to trigger every month for the remainder of 2020, a different expectation from last July when some market models had forecast no program payments for 18 months.

Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. Over 13,000 operations enrolled in the program for the 2020 calendar year.

Although DMC enrollment for 2020 coverage has closed, dairy producers should look for FSA to open sign up for 2021 coverage in July.

USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.



Weekly Ethanol Production for 5/15/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending May 15, ethanol production accelerated by 7.5%, or 46,000 barrels per day (b/d), to 663,000 b/d—equivalent to 27.85 million gallons daily and a six-week high. However, production remains tempered due to COVID-19 disruptions, coming in 38.1% below the same week in 2019. The four-week average ethanol production rate increased 4.3% to 604,000 b/d, equivalent to an annualized rate of 9.26 billion gallons.

Ethanol stocks shrank 2.3% to 23.6 million barrels, the lowest volume since January. Inventories thinned across all regions except the Gulf Coast (PADD 3), where stocks popped 10.1% higher. Total reserves are just 0.9% above year-ago volumes.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, slipped 8.2% to 6.790 million b/d (104.09 bg annualized) following five consecutive weeks of expansion. As a result, gasoline demand was 28.0% lower than a year ago.

Conversely, refiner/blender net inputs of ethanol rose 2.1% to 680,000 b/d, equivalent to 10.42 bg annualized but 28.5% below the year-earlier level.

There were no imports of ethanol recorded for the tenth straight week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of March 2020.)



 ACE calls on EPA to ensure RFS blending obligations are upheld amid drop in biofuel demand, unjustified waiver requests

The American Coalition for Ethanol (ACE) CEO Brian Jennings calls recent requests for the Environmental Protection Agency (EPA) to waive or significantly reduce the Renewable Fuel Standard (RFS) Renewable Volume Obligations (RVOs) unjustified, including a letter sent yesterday from 15 Republican Senators and similar requests from a handful of governors and attorneys general. Jennings released the following statement in response to the multiple attempts to blame the RFS and renewable fuels for the recent economic downturn:

“None of the requests from governors, senators, and attorneys general for EPA to waive the RFS this year have been accompanied by the evidence, which is required by the law and previous precedent, showing how the RFS is the cause of ‘severe economic harm’ because such evidence does not exist.

“More importantly, oil refiners and the politicians beholden to them who keep calling on EPA to reduce RFS blending obligations for 2020 due to the coronavirus pandemic are disingenuously ignoring the fact that ethanol blending is already falling below statutorily-required levels this year with no action by EPA because COVID-19 has cut U.S. motor fuel use by approximately 50 percent in recent months. If EPA were to cave in to requests for an unjustifiable RFS waiver, it would amount to a dual cut to renewable fuel use, giving refiners further license to escape their legal responsibility to blend and inflicting gratuitous pain on ethanol producers and farmers.

“The ongoing freefall in ethanol use as a result of the economic fallout of COVID-19 is what prompted ACE to write Administrator Wheeler on April 3, pressing EPA to increase blending obligations for 2020 to avoid violation with the statute which instructs the Agency to set the RFS at a level that ‘ensures the requirements’ of the RFS are met. We have called on EPA to issue an interim final rule by July 1 to increase the 2020 RVO to ensure the full 20.09 billion gallons required by law are used. In addition, our April 3 letter asks EPA to restore the 500 million gallons of remanded volume as ordered by the D.C. Circuit Court in 2017 and comply with the recent Tenth Circuit Court decision to limit existing and future small refinery exemptions under the RFS.”



ASA Pleased CFAP Offers Help to Soy—and to Livestock Producers

USDA has released the details of its Coronavirus Food Assistance Program (CFAP), the $16 billion COVID-19 relief package for agriculture and, upon reviewing those details, the American Soybean Association (ASA) is pleased that soybeans are included, as well as livestock, a top customer for soy.

ASA President Bill Gordon, soy grower from Worthington, MN, said, “We are very pleased that livestock producers are getting much-needed relief. Soybean farmers stand with our livestock producers, so this is both needed help for us and welcomed news for our friends in livestock.”

Payments will be available for eligible producers who have suffered a 5% or greater price decline from mid-January to mid-April 2020 because of the COVID-19 pandemic, and who are facing increased marketing costs for inventories. That assistance includes livestock producers who have an ownership interest in eligible livestock that have suffered a 5% or greater price decline as a result of the COVID-19 pandemic and face additional significant costs in marketing their inventories due to unexpected surplus and disrupted markets.

Producers of soybeans and other eligible commodities will be able to apply for assistance beginning May 26 through their local Farm Service Agency (FSA) Service Center.



IRFA Thanks Senator Grassley for Biofuels Relief Legislation

Today Senator Chuck Grassley introduced legislation to provided economic relief for U.S. biofuels producers in response to the COVID-19 pandemic.

In response, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:

“Grassley’s bill would provide much-needed relief for biofuels producers in the face of COVID-19 demand destruction. The pandemic hit Iowa’s biofuels industry hard and around 40 percent of the state’s ethanol production capacity remains offline. Without economic help many plants may lack the necessary resources to purchase corn and resume production, even as more Americans head back to work and demand begins its long, slow climb back to normal levels. We thank Senator Chuck Grassley for leading the effort to help renewable fuel producers during this difficult time. IRFA encourages Congress to act swiftly to provide producers with this vital relief.”



RFA Thanks Sens. Grassley, Klobuchar for Renewable Fuel Feedstock Reimbursement Act of 2020

The Renewable Fuels Association today thanked Sens. Chuck Grassley and Amy Klobuchar for introducing bipartisan legislation to provide much needed emergency relief to ethanol producers hard-hit by the COVID-19 pandemic. The new bill would reimburse renewable fuels producers for feedstocks they purchased during the first quarter of 2020.

As of today, only 60 of the nation’s 204 ethanol plants were running at normal output rates, with the remaining 144 either completely or partially idled. More than 40 percent of the county’s ethanol production capacity remains offline.

“The COVID-19 pandemic has had devastating effects on the U.S. ethanol industry,” RFA President and CEO Geoff Cooper said. “Tens of thousands of good jobs in rural communities are in jeopardy as fuel demand has plummeted and scores of ethanol plants have been forced to shut down. Fortunately, Sens. Grassley and Klobuchar are watching out for the 350,000 men and women whose jobs are supported by the ethanol industry. The legislation they introduced today would lend a vital helping hand and assist renewable fuel producers as they attempt to get back on their feet. We thank Sens. Grassley and Klobuchar for their support and dedication, and we look forward to the inclusion and expeditious passage of emergency relief measures for the ethanol industry in the next COVID-19 stimulus package.”

Last week, the House passed the HEROES Act, which includes the Renewable Fuel Reimbursement Program. This provision would provide direct assistance to renewable fuel producers impacted by the COVID-19 pandemic.



Growth Energy Lauds Introduction of Biofuels Relief Bill in Senate

Today, Growth Energy praised the introduction of legislation by U.S. Senators Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.) that would provide assistance to biofuel producers impacted by the COVID-19 pandemic. Specifically, the legislation would require the U.S. Department of Agriculture to reimburse biofuel producers for their feedstock purchases in the first quarter of 2020 through the Commodity Credit Corporation. Growth Energy CEO Emily Skor thanked the senators for their commitment to the recovery of the biofuels industry and rural America:

“Urgent, bipartisan calls to protect America’s biofuel sector continue to resonate across Capitol Hill, and we’re grateful to Senators Grassley and Klobuchar for outlining a solution that would deliver immediate relief for biofuel workers, our farm partners, and thousands of rural communities,” said Skor. “After the devastation created by COVID-19, it’s vital that Congress and the U.S. Department of Agriculture ensure that biofuel plants stand ready to restore production and reopen markets for America’s farmers. Unless Washington acts, we’ll be trying to rebuild the rural economy with one arm tied behind our back.”

The introduction of this legislation follows numerous appeals from Growth Energy and other farm and biofuel leaders, as well as calls from bipartisan champions in the House and Senate,  Midwest governors, and 70 mayors across 10 states for biofuels to be included in federal relief packages.



ACE thanks Senators Grassley, Klobuchar for introducing the Renewable Fuel Feedstock Reimbursement Act of 2020

The American Coalition for Ethanol (ACE) thanks Senators Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.) for putting forth bipartisan legislation that would reimburse biofuel producers for a share of feedstocks they purchased and processed into renewable fuel dating back to the first quarter of the year.

“ACE thanks Senators Grassley and Klobuchar for recognizing the importance of providing economic assistance to ethanol producers who have taken a direct hit from the sudden and severe drop in fuel demand as a result of COVID-19,” said ACE CEO Brian Jennings. “We need direct assistance to help the U.S. biofuel industry survive this catastrophic downturn, and their legislation would do that.”

“Momentum for direct assistance is building in Congress, so we thank ACE’s grassroots members for urging bipartisan and bicameral support for immediate aid, but we are far from the finish line as the Senate may not take up the next stimulus package until sometime in June,” Jennings added. “Our immediate priority is to keep mobilizing grassroots support until direct assistance is enacted into law.”



Ranch Group Applauds NCBA’s Efforts to Seek More Government Financial Assistance for America’s Ranchers

Today, R-CALF USA applauded the efforts by the National Cattlemen’s Beef Association (NCBA) to continue pushing Capitol Hill for additional financial recourses for cow-calf producers and backgrounders who may not sufficiently benefit from the Coronavirus Food Assistance Program (CFAP) in its current form. In a news release issued yesterday, the NCBA stated it was instrumental in securing financial relief for the nation’s cattle producers through the government’s CFAP and it stated that more needs to be done.

R-CALF USA CEO Bill Bullard said his organization agrees with the NCBA on that issue. He said America’s cattle ranchers and America’s consumers are being hurt by the market collapse aggravated by the COVID-19 crisis that is impacting the entire beef supply chain, resulting in empty beef cases at the same time that American cattle are being denied access to the beef packing market.

In a Facebook Live presentation held May 1, R-CALF USA reached out to the NCBA urging it to put political differences aside and to work with R-CALF USA to help meet the needs of America’s cattle ranchers during this time of crisis.

The NCBA did not respond to R-CALF USA’s offer but subsequently objected to R-CALF USA’s effort to protect the integrity of the cattle industry’s price discovery market by requiring packers to purchase at least 50% of their cattle-input needs from the industry’s spot (cash) market. A bipartisan bill was introduced in Congress last week by Senators Charles Grassley (R-IA) and Jon Tester (D-MT) to impose such a requirement on the packers.

“We fully understand that the NCBA owes a duty to their packer members and cannot support reforms that would interfere with their packer-members’ ability to continue maximizing their corporate profits. But that doesn’t mean the NCBA can’t continue working to provide temporary financial relief to actual cattle producers through their ongoing efforts to seek additional funding from the government,” Bullard said.

Bullard explained that R-CALF USA has not sought government price supports and its priority during the ongoing crisis is to achieve meaningful and lasting market structure reforms to ensure that when the crisis is over American ranchers have a fair and functioning market in which to earn a competitive income.

“In other words, R-CALF USA intends to continue fighting to achieve the needed market reforms while expressing gratitude to those who choose instead to seek temporary financial relief from the government,” said Bullard.

He said his group has sought loan forgiveness, extensions of loan payments, and low- or no-interest loans for producers but added that since the government has not implemented these measures, then the NCBA’s request for direct financial payments are the only remaining option to keep producers in business. 

“This is a colossal mess for both cattle ranchers and consumers and we know that only R-CALF USA is free from the packers’ resistance to any type of fundamental market reforms. Thus, with NCBA’s focus on needed temporary financial relief to help cattle producers through this mess, we hope that every American rancher can be sustained until such time that R-CALF USA succeeds in implementing the needed market structure reforms that NCBA cannot work on,” Bullard concluded.