NEBRASKA CROP PROGRESS AND CONDITION
For the week ending October 25, 2020, there were 5.2 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 27% very short, 46% short, 27% adequate, and 0% surplus. Subsoil moisture supplies rated 28% very short, 41% short, 30% adequate, and 1% surplus.
Field Crops Report:
Corn harvested was 76%, well ahead of 40% last year and 46% for the five-year average.
Soybeans harvested was 97%, ahead of 78% both last year and average.
Winter wheat condition rated 5% very poor, 16% poor, 36% fair, 40% good, and 3% excellent. Winter wheat planted was 98%, near 99% last year, and equal to average. Emerged was 84%, behind 90% last year and 89% average.
Sorghum harvested was 82%, well ahead of 36% last year and 51% average.
Pasture and Range Report:
Pasture and range conditions rated 18% very poor, 22% poor, 27% fair, 32% good, and 1% excellent.
IOWA CROP PROGRESS & CONDITION
Measurable snowfall and rain limited Iowa farmers to 3.8 days suitable for fieldwork during the week ending October 25, 2020, according to the USDA, National Agricultural Statistics Service. Although fieldwork was limited, activities reported included baling corn stalks, applying fertilizer and manure, and fall tillage.
Topsoil moisture condition rated 11% very short, 29% short, 56% adequate and 4% surplus. Subsoil moisture condition rated 18% very short, 35% short, 45% adequate and 2% surplus.
Over three-quarters of Iowa’s corn for grain has been harvested, more than 3 weeks ahead of last year and 2 weeks ahead of average. Statewide, the moisture content of field corn being harvested for grain remained at 16%. Farmers in northwest Iowa have only 8% of their corn for grain remaining to be harvested while farmers in south central Iowa still have over 50% to be harvested.
Only 6% of Iowa’s soybean crop remains to be harvested, 3 weeks ahead of last year and just over 2 weeks ahead of average. Farmers in northwest, north central, west central, and central Iowa have 3% or less of their soybeans remaining to be harvested. In contrast, farmers in the southern one-third of the state have at least 14% of their soybeans yet to be harvested.
Pasture condition rated 18% good to excellent, down 2 percentage points from last week. Cattle producers continue to supplement hay and water supplies. Some cows are grazing on corn stalks.
USDA: Corn 72% Harvested; Soybeans 83% Harvested
Precipitation in parts of the country slowed the nation's row-crop harvest last week, but progress for both the corn and soybean harvest remained ahead of normal, according to the USDA NASS weekly Crop Progress report released on Monday.
Corn harvest moved ahead 12 percentage points to reach 72% complete as of Sunday, Oct. 25, putting this year's progress 16 percentage points ahead of the five-year average of 56%.
Soybean harvest also slowed considerably last week, moving ahead just 8 percentage points to reach 83% complete as of Sunday. That puts this year's harvest progress 10 percentage points ahead of the five-year average of 73%.
Winter wheat planting also slowed somewhat last week, moving ahead 8 percentage points from 77% the previous week to 85% as of Sunday. That is 5 percentage points ahead of the five-year average of 80%. An estimated 62% of winter wheat had emerged, 2 percentage points ahead of the five-year average of 60%. In its first rating of the 2020-21 winter wheat crop, NASS estimated that 41% of the crop was in good-to-excellent condition, down from 56% a year ago.
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AFAN Announces Hiring of New Director of Livestock Development
AFAN has announced the hiring of Kris Bousquet of Lincoln, Neb., as its new Director of Livestock Development. His appointment is effective as of October 26.
AFAN (The Alliance for the Future of Agriculture in Nebraska) is a non-profit organization formed by leading agricultural membership groups in Nebraska to encourage the development of environmentally responsible and economically viable livestock production in the state.
Bousquet’s responsibilities at AFAN include taking the lead in building relationships with our partners, working one-on-one with producers interested in adding or expanding livestock operations, and work to expand opportunities that add value to our grain commodities and livestock species throughout Nebraska.
Bousquet was born and raised on a dairy, diversified row crop, and beef farm in South Sioux City, Nebraska where his passion for agriculture grew. He has also been active in the Nebraska Air National Guard since 2009 where he currently holds the rank of Technical Sergeant and works as an aircraft mechanic. He is a graduate of the University of Nebraska-Lincoln with a Bachelor of Applied Science and is currently pursuing his master’s in animal Welfare and Behavior at UNL. Until joining AFAN, Bousquet was the Farmer Relations Manager in Nebraska for Midwest Dairy and the Executive Director of Nebraska State Dairy Association. Bousquet will continue as the Executive Director with NSDA as he transitions into his new role with AFAN.
“I am very excited to have Kris join our team,” said AFAN Executive Director Steve Martin. “His skills, experience and network will be tremendous assets to help expand AFAN’s reach in working with producers and other partners to grow the livestock industry in Nebraska. Agriculture in our number one industry and growing the livestock sector supports rural economic vitality. The AFAN team is fully staffed and ready to help grow Nebraska agriculture.”
Income from Grazing Corn Stalks
Keith Glewen, NE Extension Educator, Saunders County
Are you looking for additional income from your corn acres? Grazing corn residue is a low-cost winter feed source for cattle and a source of additional income for farmers without negative effects on the cropland.
Many crop producers are concerned that trampling from cattle grazing corn residue negatively affects crop yields. But when grazed at proper stocking rates, small but positive effects on crop production after grazing have been observed.
Research conducted at the University of Nebraska has shown that grazing corn residue at the recommended stocking rate does not reduce corn or soybean yields in irrigated fields the following growing season.
In fact, a long-term study in eastern Nebraska at the Eastern Research and Extension Center showed 2 to 3 bushel per acre improvements for soybean production following grazed corn residue in a corn-soybean rotation. This result was the same whether cattle grazed in the fall from November through January or spring from February through April.
A five-year study in western Nebraska measured corn yields from continuous corn after cattle grazing in the fall and found no negative effects on corn yields the following year.
It must be noted that minor surface compaction can result from grazing during wet weather. However, this compaction often disappears through the natural wetting and drying and freezing and thawing processes. And the compaction level for restricting root growth and does not carry over into the following growing season.
Grazing corn residue benefits both cattle and crop producers. Corn residue should be viewed as an economical source of winter roughage for cattle that can provide an extra source of income from corn production that does not affect next year's crop production.
If you are interested in listing crop residue fields available for winter grazing and connecting with livestock producers, sign up at https://cropresidueexchange.unl.edu/.
Field to Fuel Student Video Contest Open for Entries
The Nebraska Ethanol Board presents the 6th annual Field to Fuel video contest, which encourages Nebraska high school students to explore the importance and value of ethanol.
With a focus on educating the public about renewable fuels, students are asked to research, film and edit a two-minute video for a chance to one of three prizes, including a $1,000 grand prize for their school or organization. Eligible videos must be received and/or postmarked no later than Jan. 31, 2021. More information and requirements can be found at ethanol.nebraska.gov/ag-in-the-classroom/fieldtofuel/.
“The ethanol industry plays a significant role in Nebraska’s economy and is very important to our state’s agriculture,” said Jonathan Anderson, agriculture teacher at Norfolk High School. “Teaching about biofuels can be a blast and also ensures this generation understands the impact of biofuels now and in the future. The Field to Fuel contest is a fun, alternative way to learn and show off student learning. Last year, this video contest, and a field trip to our local ethanol plant, sparked two students to do an experiment creating ethanol production from Apple Cider Wastes that has made it all the way to the top three at the National FFA AgriScience Contest. It has been a joy to watch.”
This contest is open to all Nebraska high school students in grades 9-12th grade and can explore any aspect of ethanol, including agriculture, science, sustainability, and renewable fuels’ impact in improving the environment and Nebraska’s economy.. Teachers who would like more information about how to introduce ethanol into their curriculum (all ages) can explore the Ethanol in the Classroom tab at ethanol.nebraska.gov.
Land management webinar to address trends in cash rent, USDA farm programs, closing out land leases
The University of Nebraska-Lincoln’s Department of Agricultural Economics will continue its live webinar series, “Land Management Quarterly,” on Nov. 16, at noon Central time.
Since 2019, this online series has addressed common management problems for Nebraska landowners, agricultural operators and related stakeholders interested in the latest insight on trends in real estate, managing agricultural land and solutions for addressing challenges in the upcoming growing season.
The November webinar will cover recent findings from the 2020 USDA-National Agricultural Statistics Service county-level cash rent survey and trends in farm programs influencing operations across the state. The presentation will also include a special segment on communication issues arising from closing out 2020 leases while reviewing considerations for 2021. The session will conclude with an “Ask the Experts” session, offering participants the chance to get live answers to their land or lease questions.
The webinar will be led by Jim Jansen and Allan Vyhnalek, who are both in the Department of Agricultural Economics. Jansen focuses on agricultural finance and land economics, along with leading Nebraska Extension’s statewide land management outreach efforts. Vyhnalek is a farm succession and farmland management extension educator working throughout Nebraska.
“As 2020 comes to a close, we have seen an unprecedented level of uncertainty due to COVID-19 and growing concerns of extensive drought across Nebraska,” Jansen said. “The November webinar will cover recent trends in the land industry and farm programs involving Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC), along with addressing common communication issues arising as we end one year and look forward to the next growing season.”
The webinars are free to attend. Register and submit questions at agecon.unl.edu/landmanagement.
Recordings can be viewed the day after each session, along with recordings from the entire series. The next Agricultural Land Management Quarterly webinar will be Feb. 15, 2021.
Don’t Discount the Need for Vitamin A and E in Beef Cows During Winter
Steve Niemeyer – NE Extension Educator
Poor quality of forage fed to cows in late gestation can present health challenges not only for the cows but for the calves they’re about to give birth to. Drought conditions or poor haying conditions during the previous growing season can lower quantities of those forage’s essential nutrients, such as Vitamin A and Vitamin E. The ability of producers to provide supplemental Vitamin A and E for their animals can also be affected by manufacturing or other supply problems that change the way mineral manufacturers include such vitamins in their products.
Regardless of the previous year’s growing conditions, forage vitamin levels are not something cattle producers should take for granted. Supplying sufficient Vitamin A and Vitamin E to cows in late gestation is important every year, and the price of the supplement should not be a limiting factor.
Both Vitamins A and E are plentiful in green forages, but tend to be much lower in hay and winter range and continues to decline as the fall and winter progress. While textbooks will point out the dramatic effects of Vitamin A and E deficiencies in cattle (congenital eye problems, white muscle disease in calves), these overt problems are not as common as the more ambiguous effects on calf vigor and immunity. Marginal Vitamin A deficiencies in calves cause lower responsiveness of immune cells in the body and a breakdown of the protective functions in the gut and lungs. Likewise, Vitamin E is important in protecting body cells from damage (e.g. from infections) and also plays a role in maintaining immunity. The result of deficiencies in these vitamins can show up as decreased vigor and an increased susceptibility to illness.
The importance of these vitamins to the newborn calf is contrasted by the fact these vitamins do not cross the placenta in high enough amounts to meet their requirements. Calves must obtain sufficient levels through colostrum right after they’re born. This means producers should focus on the vitamin status of the cow prior to calving to ensure sufficient levels in the colostrum.
Cows’ livers can store about a 4-month supply of Vitamin A, which can be depleted if green forage is not available. Vitamin E is not sufficiently stored in the body, although there is some disparity among experts and the literature on this point. If cows are supplemented with these vitamins continually during the non-grazing season, body storage becomes a less-important issue.
Pregnant cows and heifers should be supplemented with 30,000-100,000 IU/head/day of Vitamin A and 50-100 IU/head/day of Vitamin E when green forage is not available. Even high-quality stored forage should not be depended upon to supply sufficient Vitamin A or E. Some studies indicate benefits to using higher levels of supplementation, while others do not. Higher vitamin supplementation rates do not appear to be risky from a toxicologic standpoint.
Cattle producers and veterinarians sometimes rely on injections of Vitamin A to help increase levels in the liver. An injection of 1,000,000-1,500,000 IU per head can boost liver levels, but may need to be given monthly if other supplementation is not provided. A single injection two weeks prior to calving has been recommended to help the cow overcome a drop in the body reserves of these vitamins around the time of calving. If cows are not deficient in these vitamins, injections do not appear to be useful. Reports of adverse reactions (abortions, shock) have been reported in late-gestation cows receiving vitamin injections in conjunction with vaccines such as scour shots. Producers should consult their veterinarians regarding specific products and the timing of their use.
Injections of Vitamin E and A to newborn calves can also be considered; however, this should not be considered a substitute for proper vitamin supplementation in the cow’s diet, nor for ensuring timely and sufficient colostrum consumption in the calf.
Even in years when forage growing conditions are good, producers should not plan on skimping on vitamin supplementation for their cows during this – or any other – winter.
October Pork Webinar: CME Contract Overview and Market Update
The National Pork Board will host a free webinar tomorrow, Oct. 27, 2020, for pork producers. The webinar will provide attendees with an update on the new CME Pork Cutout Futures and Options contract and a market outlook. Panelists include:
Tim Andriesen, Managing Director – Agricultural Products, CME Group
Steve Meyer, Economist, Partners for Production Agriculture
Dr. Lee Schulz, Associate Professor, Iowa State University
October Pork Webinar: CME Pork Cutout Futures and Options and Market Updates
Tuesday, Oct. 27 at 1:30 p.m. CDT.
Register Here: http://go.pork.org/producerwebinar.
USDA Announces Early Release of Select Commodity Tables for USDA’s Agricultural Projections to 2030
On November 6, 2020 at 3:00 p.m. EST, the U.S. Department of Agriculture (USDA) will release select tables prepared for the upcoming USDA Agricultural Projections to 2030 report. USDA will post online tables containing long-term supply, use, and price projections to 2030 for major U.S. crops and livestock products, as well as supporting U.S. and international macroeconomic assumptions. The short-term projections from the October 9, 2020 World Agricultural Supply and Demand Estimates report are used as the starting point.
Those tables will be posted in MS Excel format simultaneously to the Office of the Chief Economist’s (OCE) website and to the Economic Research Service’s (ERS) website. Additional data visualizations and supporting content will be available at the ERS Agricultural Baseline Database.
The complete USDA Agricultural Projections to 2030 report will be released in February 2021 and will include a full discussion of the commodity supply and use projections, and projections for farm income and global commodity trade.
USDA’s long-term agricultural projections represent a departmental consensus on a ten-year representative scenario for the agricultural sector. They are a composite of model results and judgment-based analyses, prepared from August 2020 through February 2021. The projections do not represent USDA forecasts, but rather reflect a conditional long-run scenario based upon specific assumptions about macroeconomic conditions, policy, weather, and international developments, with no domestic or external shocks to global agricultural markets. The Agricultural Act of 2018 is assumed to remain in effect through the projection period.
More than $7 Billion Paid in Second Round of USDA Coronavirus Food Assistance Program
U.S. Secretary of Agriculture Sonny Perdue today announced that in the first month of the application period, the USDA Farm Service Agency (FSA) approved more than $7 billion in payments to producers in the second round of the Coronavirus Food Assistance Program. CFAP 2 provides agricultural producers with financial assistance to help absorb some of the increased marketing costs associated with the COVID-19 pandemic.
“America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic. These payments directed by President Trump will continue to help this critical industry recoup some of their losses from ongoing market disruptions and associated costs,” said Secretary Perdue. “This program builds upon the over $10 billion disbursed under the first round of CFAP. Agricultural producers who have been impacted by the pandemic since April 2020 are encouraged to apply for assistance.”
Since CFAP 2 enrollment began on September 21, FSA has approved more than 443,000 applications. The top five states for payments are Iowa, Nebraska, Minnesota, Illinois and Kansas. USDA has released a data dashboard on application progress and program payments and will release further updates each Monday at 2:00 p.m. ET. The report can be viewed at farmers.gov/cfap.
Through CFAP 2, USDA is making available up to $14 billion for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. CFAP 2 is a separate program from the first iteration of CFAP (CFAP 1). Farmers and ranchers who participated in CFAP 1 will not be automatically enrolled and must complete a new application for CFAP 2. FSA will accept CFAP 2 applications through December 11, 2020.
Cattle on Feed Grows Again
David P. Anderson, Extension Economist, Texas A&M AgriLife Extension Service
The number of cattle on feed hit an October record in 2020, at 11.7 million head. Placements and marketings were up over a year ago, as well. Digging into USDA’s report a little deeper reveals some more interesting directions for the cattle market in coming months.
Marketings were up 6.2 percent over September 2019. Given one more working day in the month that means daily average marketings were above a year ago for the second month in row. The ability to slaughter more cattle per day, on average, than a year is welcome data considering all the adjustments forced on the industry this year. In terms of absolute numbers, marketings trend lower in the second half of the year, and that trend is holding this year, as well.
Placements were above a year ago also, up 5.9 percent. Larger placements might be seen in the light of sharply lower placements in March and April as response to corona virus effects. Kansas and Nebraska, two of the big three feeding states, had placements up 12.6 and 13.2 percent, respectively, over a year ago. Placements were lower in Texas, down 3.2 percent. Eighty-four percent, 104,000 out of 124,000, of the increase in placements were in the heaviest categories, over 700 pounds. The largest share of heavier feeder placements went to Nebraska followed by Kansas. Texas placed fewer cattle in every weight category except the lightest, under 600 pounds. More heavier cattle placed likely indicates some pressure on marketings and slaughter late this year into early next year. For the year, feeders have placed 510,000 fewer (3 percent) head on feed this year than last year.
The combination of placements and marketings left cattle on feed a record large, for October 1, 11.717 million head. That was 429,000 head more than last year. Within the state data, Texas had 70,000 more on feed in the drought year of 2011. Nebraska had 20,000 more on feed in 2018. October on feed numbers appear to be historically large in states like California and Colorado.
Nationwide, placements tend to peak in October. Drought conditions will likely play an important part of placements this year. Difficult wheat pasture establishment and development may force more to feedlots. Drought in the West and Texas may force some more placements. More feeder cattle continue to come from Mexico adding to available supplies for placement.
U.S. Dairy Advances Journey to Net Zero Carbon Emissions by 2050
Signaling bold climate change action, the Innovation Center for U.S. Dairy today unveiled the Net Zero Initiative, an industry-wide effort that will help U.S. dairy farms of all sizes and geographies implement new technologies and adopt economically viable practices. The initiative is a critical component of U.S. dairy’s environmental stewardship goals, endorsed by dairy industry leaders and farmers, to achieve carbon neutrality, optimized water usage and improved water quality by 2050.
“The U.S. dairy community has been working together to provide the world with responsibly-produced, nutritious dairy foods,” said Mike Haddad, chairman, Innovation Center for U.S. Dairy. “With the entire dairy community at the table – from farmers and cooperatives to processors, household brands and retailers – we’re leveraging U.S. dairy’s innovation, diversity and scale to drive continued environmental progress and create a more sustainable planet for future generations.”
The Innovation Center for U.S. Dairy also announced a key milestone on its journey toward carbon neutrality – an up to $10 million commitment and multi-year partnership with Nestlé to support the Net Zero Initiative and scale access to environmental practices and resources on farms across the country.
“Supporting and enabling farmers through the Net Zero Initiative has the potential to transform the dairy industry,” said Jim Wells, chief supply chain officer for Nestlé USA. “Scaling up climate-smart agricultural initiatives is key to Nestlé’s ambition to achieve net zero greenhouse gas emissions by 2050 and will help reduce the carbon footprint of many of our brands. We are excited to collaborate with U.S. dairy and our suppliers to contribute to an even more sustainable dairy supply chain.”
2050 Environmental Stewardship Goals
The Innovation Center for U.S. Dairy – a forum that convenes dairy farmers and industry stakeholders across the value chain to align on shared social responsibility priorities – built on a decades-long commitment to responsible dairy production in developing the 2050 Environmental Stewardship Goals. Leveraging a rigorous, third-party reviewed materiality assessment, the industry prioritized the most pressing areas of environmental sustainability as the foundation for its goals:
1. Become carbon neutral or better;
2. Optimize water use while maximizing recycling;
3. Improve water quality by optimizing utilization of manure and nutrients.
In 2008, U.S. dairy was the first agricultural sector to commission a life cycle assessment on fluid milk, which showed that dairy accounts for 2% of total GHG emissions in the U.S.
In fact, due to innovative practices in cow health, improved feed and genetics, and modern management practices, the environmental impact of producing a gallon of milk in 2017 has shrunk significantly from 2007, requiring 30% less water, 21% less land and a 19% smaller carbon footprint.
Bringing Net Zero to Life
The Net Zero Initiative is a collaboration of dairy organizations and represents a critical pathway on U.S. dairy’s sustainability journey. Many of the practices and technologies needed to reach the industry’s goals largely exist but require further research and development and overall greater accessibility across farms of all sizes and geographies. Through foundational science, on-farm pilots and development of new product markets, the Net Zero Initiative aims to knock down barriers and create incentives for farmers that will lead to economic viability and positive environmental impact.
“As part of a fifth-generation dairy farming family, we pride ourselves on sustaining our land, caring for our animals and preserving our business for the next generation,” said Tara Vander Dussen, a New Mexico dairy farmer. “We want to be at the table, testing new practices and accessing innovative technology to go further, faster. Because in the end, we all want the same thing – a healthy planet for our families and our children.”
Nestlé is the first of what the U.S. dairy community hopes will be many partners joining the Net Zero Initiative, contributing funding and expertise to help propel the entire industry’s progress toward a more sustainable future. With brands like Carnation®, Stouffer’s® and DiGiorno®, Nestlé brings a wealth of knowledge and industry leadership to the table, and an earnest commitment to supporting U.S. dairy farmers in environmental advancements and technology adoption.
Dairy companies and farms in every state already are contributing to the goals in individual ways and each year a select number are recognized for their positive impact with the U.S. Dairy Sustainability Awards.
The dairy community will continue to demonstrate its progress in the environment, animal care, food safety/traceability and community contributions through the U.S. Dairy Stewardship Commitment. As of October 2020, 27 dairy companies representing 70 percent of the nation’s milk production have voluntarily adopted the U.S. Dairy Stewardship Commitment and contribute to U.S. dairy’s ability to track, aggregate and report on progress.
“We know a lot more is possible – proven science and evidence from dairy’s existing best practices tells us we can get to net zero. This is not only good for dairy farmers, it’s also good for all businesses that serve dairy, the communities where we farm and the millions of people who enjoy dairy every day,” added Haddad.
For more information on U.S. dairy’s sustainability journey, please visit USDairy.com/Sustainability.
NCGA to EPA: Remove Barriers to Increase Ethanol Demand
The National Corn Growers Association (NCGA) today, along with 14 state affiliate associations, urged the Environmental Protection Agency (EPA) to provide more certainty and use forward-looking data analysis to update policy that will lead to greater flex-fuel vehicle (FFV) production and increased demand for higher blends of ethanol.
The associations submitted comments in response to EPA’s request for input on data sources and analytical approaches on which to base an updated weighting factor (F-factor) for E85 FFVs for model year 2021 and later.
“As the producers of the primary feedstock for ethanol, corn farmers support a forward-looking, consistent, long-term F-factor that provides automakers with greater certainty in compliance crediting for planning vehicle production,” the associations wrote.
“Corn farmers have responded to the demand for clean, renewable fuel with increased productivity. Corn production has improved on all measures of resource efficiency, including higher crop yields per acre, resulting in greater corn production using less land and fewer inputs, further fortifying ethanol as a sustainable, low-carbon renewable fuel,” they added.
NCGA and State Corn Grower Associations made the following recommendations:
We support EPA maintaining the current F-factor of 0.14 unless and until EPA adopts an updated, forward-looking, higher F-factor determination.
Any future F-factor determination should remain current guidance until EPA adopts a new determination to avoid gaps in the F-factor and prevent a default to zero, supporting certainty for manufacturer decision making.
We agree with the automotive industry that a five-year advance notice requirement, plus three years of a production safe harbor for FFV models, will provide greater regulatory predictability and encourage automaker planning and innovation in FFV production.
We believe it is inappropriate for EPA to determine a new F-factor based only on backward-looking data or limited historical data. The use of updated and forward-looking growth in station numbers and per station E85 throughput, however, supports an F-factor of 0.2.
We have serious concerns with the problematic changes made in federal energy outlook projections made in 2020 compared to 2019, including the treatment of RFS refinery waivers, which make the 2020 outlook unsuitable for F-factor determination without corrections.
Multiple data sources cited in our comments support an updated F-factor of at least 0.2.
We urge EPA to rely on these data sources when determining an F-factor for MY 2021 and later, and we believe the data justifies an F-factor of 0.2.
RFA Seeks Certainty and Consistency in EPA Treatment of Flex Fuel Vehicles
In comments submitted today to the U.S. Environmental Protection Agency regarding emissions standard compliance calculations for Flex Fuel vehicles (FFVs), the Renewable Fuels Association supported the EPA’s new approach to maintaining some level of certainty for automakers in the absence of future guidance. At the same time, however, RFA called on the agency to provide a long-term floor and “more robust” E85 usage factors for future model years, given expected growth and the many benefits provided by ethanol flex fuels.
“Based on our discussion with automakers, it is clear that manufacturers will hesitate to invest in certain technologies, like FFVs, unless there is some assurance that those vehicles technologies will help enable CAFE and GHG standard compliance over multiple model years,” wrote Kelly Davis, RFA Vice President for Regulatory Affairs. “Fuel blenders and retailers also need multi-year certainty regarding the likely mix of light-duty vehicles so that they may appropriately direct their investments in wholesale and retail fuel infrastructure.”
Davis noted that restoring a more meaningful E85 usage factor for FFV production can help to level the CAFE/GHG playing field that currently favors battery electric, plug-in hybrid electric, fuel cell and compressed natural gas vehicles. “While we agree with EPA that automakers should be encouraged to produce vehicles that reduce petroleum consumption to improve energy security, save the U.S. money, and reduce climate change impacts, we believe incentives to stimulate the production of such vehicles should be constructed fairly and consistently.”
As part of its comments, RFA submitted an analysis comparing the number of E85 stations listed on the association’s crowd-sourced database (www.E85prices.com) to the number of E85 stations listed by the Alternative Fuels Data Center. The former lists just over 5,000 stations known to sell E85 today, while AFDC’s database only contains roughly 3,600. This is important because EPA relies on the overly conservative AFDC database to inform its projections of future E85 availability and station growth. RFA encouraged EPA to use the E85price.com database to inform its future analyses.
Growth Energy Urges EPA to Provide Immediate Credit to Automakers to Produce Flex-Fuel Vehicles
Today, Growth Energy submitted comments on a notice from the Environmental Protection Agency that sets a weighting factor (F-factor) for flexible fuel vehicles for model year 2020 and would affect how the agency determines the F-factor for flexible fuel vehicles for model years 2021 and later.
“Recent trends in government and private investment in biofuels infrastructure and updated data on E85 availability all lead to growth in higher biofuel blends,” said Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley. “EPA should seize on that data to provide appropriate, immediate credit to automakers to continue to produce flex-fuel vehicles to run on these higher biofuel blends.”
In the organization’s written comments, Growth Energy offered a detailed technical analysis on the benefits of an updated F-factor, noting that any upward revision should take immediate effect so it continues to accelerate automaker investment and innovation. They recommend the following:
Maintaining an F-factor of 0.14 until it takes action for an upward revision
Providing, through immediately issued guidance, 5 years of F-factor continuity and an additional 3-year safe-harbor to automakers for automaker certainty
Applying the 10th Circuit decision to limit small refinery exemptions, as dictated by the Renewable Fuel Standard (RFS)
Working with Growth Energy, its retail partners, and the AFDC to appropriately update station data for higher ethanol blends that should be increased to reflect the higher number of stations currently offering E85
Using highlighted data and correcting for flaws, providing an updated F-factor of 0.2 for model year 2021 and thereafter
Despite inconsistencies in the agency’s estimates of E85 use and the modeling in AEO 2020, Growth Energy believes that upon addressing the flaws in AEO 2020 and consideration of projected growth in E85 stations and uptake, EPA will be justified in establishing a F-factor of 0.20 for model year 2021 moving forward.
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