Tuesday January 5 Ag News

Will Seasonality Patterns for Beef Export Sales and Commitments Hold in 2021?
Elliott Dennis, Livestock Extension Economist, University of Nebraska - Lincoln

Trade occurs when price differences between the two locations are large enough after accounting for transportation cost, exchange rates, tariffs, etc. Exports vary throughout the year since prices reflect current and future supply and demand situations. Seasonality in cattle production, meat demand, and market disruptions are some examples of why wholesale beef prices increase and decrease within a year.

The inability to market cattle in the second quarter of 2020 and increased demand for retail beef products due to government gathering restrictions in restaurants caused wholesale beef prices to rise to historical levels. Beef wholesalers can choose to market beef to the domestic market (retail or food service) or the export market. So how did higher domestic wholesale beef prices impact beef export sales and commitments in 2020? Likewise, knowing how the market worked through supply and demand disruptions in 2020, what can we reasonably expect from export sales and commitments in 2021? These questions can be partially answered by looking at historical seasonal export sales and commitment patterns and comparing 2020 to years with large trade disruptions.

Year-ending Beef Export Sales
One way to monitor beef exports is through USDA-FAS’s weekly export sales report. This report shows the number of beef exports, the cumulative exports in the current marketing year, previous sales that have not shipped during the current marketing year, previous sales planned for current marketing year but were cancelled, and sales scheduled to ship in future marketing years. Beef export data is reported weekly nationally and by each beef export partner. Table 1 displays the 2020 year ending beef export sales report for the top 10 trading countries. These countries accounted for 96% of all beef exports. Japan and Korea accounted for nearly 60% of all exports that were shipped. There can be a delay between when beef is purchased and shipped. The difference is classified as outstanding sales. On average across all countries, 11% of total commitments (i.e. shipped exports + outstanding sales) are outstanding sales. The People’s Republic of China and Hong Kong have abnormally large outstanding sales, approximately 35% of total commitments.

Seasonal Patterns in Beef Exports
From the weekly USDA-FAS data, one can aggregate to monthly averages and calculate beef export sales seasonal indices. These are useful in making pricing decisions, specifically forecasting prices, assessing pricing alternatives, and evaluating current market conditions. Higher indices indicate that quantities are relatively higher in that month compared to other months, and vis-versa. Variation in the index across years but within a month indicates how historically (in)consistent the index is. The standard deviation is one way to quantify this variation. A range of expected quantities can then be obtained by adding or subtracting one standard deviation from the seasonal index. This represents, in part, a historically reliable range of prices or quantities around the average price index in each month. Historically, the first quarter has seasonally lower and more inconsistent export quantities than other quarters. Export quantities are the highest and most consistent in the second quarter. Local, domestic, and international changes in slaughter rates, supplies of substitute meat products, and consumer beef preferences all influence the domestic wholesale beef price and eventually each country’s desire to import US beef.

Comparing Export Seasonality Across Market Events: COVID-19 vs. BSE
At the beginning of 2020, there was a large number of cattle that were set to be harvested in the first and second quarters. When meatpacking plants closed at the beginning of the second quarter there were a large number of cattle ready to be harvested in preparation for summer grilling. These closures caused a shortage of wholesale beef raising prices. Wholesale beef prices continued to rise with increased consumer retail meat purchases and the difficulty in repurposing meat destined for food service. Combined these events lowered export sales by approximately 40% in May and June compared to the 10-year average. The beef market was eventually able to sort through the supply and demand issues and prices, and subsequently, export sales, seasonally normalized. At the end of 2020, beef export commitments were the largest ever and actual exports were the second-largest behind 2018.

           Comparing the case of BSE in December of 2003 to COVID-19 shows how quickly the export market normalized to the effects of the pandemic. In the first quarter of 2004, export sales were near zero as countries implemented trade restrictions. As more information emerged about the severity and spread of BSE export sales seasonally increased. Nominally, export sales fell from 64,000 to 11,500 between 2003 and 2004. The beef export sales did not reach pre-BSE levels until 2018, 15 years post-incident. Compare this to COVID-19 in 2020 where export sales only dipped in May and June and then rebounded. All remaining months in 2020 were within one standard deviation of the 10-year average. In other words, the variation in export sales after June was statistically normal.

Export Sales and Commitments into 2021
The beef industry is once again entering into 2021 with a near-record number of cattle on feed and marketings below a year ago. Both these indicate a large amount of meat will come to market in the first quarter of 2021. Historically, the number of beef export sales has been seasonally lower in the first quarter. Since 2002, 2020 was the only time export sales were seasonally higher in the first quarter. Even correcting for lower export sales in May and June by setting them to their 10-year averages shows that 2020 first-quarter export sales had never seasonally occurred before. The domestic market likely needs to be the driver of working through wholesale meat supplies in the first quarter. Drawing from 2020, the market's ability to do so could be hindered by meatpacking plant shutdowns (recent example in Guelph, Canada) and government restrictions on social gatherings (increased restrictions in New York State). A positive is that the US-JPN, US-KOR, US-CHN, and USMCA trade deals are still in place for the time being. Whether we enter round 2 of the US-CHN trade deal and whether China exports already committed beef is more uncertain given the anticipated change in presidency this coming month.



FENCING
– Ben Beckman, NE Extension Educator
 
Fence is useful in keeping animals where we want and establishing a border along adjacent pieces of land.  However, when it comes time to replace or repair a property division fence, who gets to foot the bill?
 
First off, I am not a lawyer, and if you have a specific situation or question, contact a legal professional.  In general however, Nebraska law currently dictates that fence cost and upkeep is split 50/50 by adjoining landowners.  When both parties are able to negotiate and agree upon a fence style, whatever mutual agreement reached is fine.
 
However, when one landowner wants a fence, but the other does not, the 50/50 rule still holds true.  Nebraska law then defines 6 fence types that can be built so the installer is legally entitled to reimbursement for half of the labor and materials.  While some of these like board and rail fences are uncommon, a wire fence is legally defined as consisting of at least 4 wires with posts no greater distance than one rod (16.5 ft.) apart.
 
Fence in disrepair that one neighbor refuses to mend require a written notice and legal action to ensure compensation for repairs.  At that point, get professional advice before you do anything.
 
For those producers with sheep or hogs, you know that a standard 4 wire fence doesn’t quite do the trick.  If both landowners run these animals, the 50/50 rule holds true, but if only one does, only a basic 4 wire fence is required and the person with sheep or hogs will have to cover the extra cost.
 
Fencing woes can be tricky, but an agreed upon solution with those involved is the easiest way forward.  If things aren’t solvable that way, remember the 50/50 rule, build a fence that meets legal definitions, and get professional legal advice.



STUDY: RANCHERS WITH DROUGHT PLANS MAKE SOME PIVOTAL MOVES SOONER

Once a drought develops, ranchers must make decisions in rapid succession to prevent problems from compounding. Do you cull cows or send home contracted grazers from other operations? Do you purchase more feed to make up for the herd’s lack of grazing options? Do you graze fall or winter pastures earlier than you previously planned?

To manage not only the operation, but the stress of running it when water is lacking, many ranchers are developing drought plans in advance. Based on research by Tonya Haigh, a rural sociologist with the National Drought Mitigation Center, those plans allow ranchers to make decisions based on specific “if-then” circumstances and triggers. The journal Rangeland and Ecological Management recently published an article by Haigh detailing the results of a survey of ranchers. She led a team that surveyed a collection of Northern Plains ranchers who endured a 2016 flash drought that significantly altered forage production in the area. Some had drought plans on file. Others did not.

Haigh said that while the drought center and other drought-preparedness agencies stress the importance of developing plans for drought, there is not much data that quantifies the difference between having one and not. This survey, the final piece of Haigh’s dissertation research, was an opportunity to examine the differences in an isolated area, western South Dakota, following a localized drought event. The survey was part of a project funded by the National Oceanic and Atmospheric Administration’s Sectoral Applications Research Program, designed to improve agricultural drought early warning capabilities in the Missouri River Basin.

Of the 250 ranchers who responded to a mail-in survey, 59% reported having an if-then plan for drought. Haigh said there was no education or experience-based discrepancy between those who had a plan on file and those who did not, but ranchers with drought plans tended to run larger-scale operations. The survey, Haigh wrote, found that having a drought plan increased the likelihood that ranchers took some actions during drought, but not others.

“Ranchers with drought plans were more likely than others to destock through some means due to drought conditions in 2016, controlling for operational factors, drought severity and any type of use of drought early warning information,” Haigh wrote. “However, ranchers with a drought plan were no more or less likely than others to purchase supplemental feed, early graze fall/winter pastures or cull their breeding herds because of the drought.”

Haigh said the survey results also showed that having a drought plan was linked with keeping a watchful eye on drought conditions. Ranchers with drought plans reported increased use and influence of on-farm rain gauges, National Weather Service reports and their own assessments of conditions on the land.

Having a drought plan in place, and monitoring for conditions that would lead them to utilize if-then strategies, led many ranchers with drought plans to destock early enough to take advantage of better market prices or secure more forage for their core herds.

“As ranchers in the region contemplate current dry conditions and wonder what 2021 will bring, this study shows that it would be worthwhile to spend time putting together or updating their plan for drought,” Haigh said. “And it also suggests that by monitoring drought and the conditions on the ranch over the winter and into the spring, ranchers can be ready to implement their plans if needed and not be caught unprepared.”

The study was led by Haigh. Co-authors included Michael Hayes of the School of Natural Resources, Jolene Smyth of the Department of Sociology, Charles Francis of the Department of Agronomy and Horticulture, Mark Burbach of the Conservation and Survey Division in the School of Natural Resources and Linda Prokopy of the Department of Forestry and Natural Resources at Purdue University.

To learn more about the development of drought plans on ranches, visit the National Drought Mitigation Center’s collection of rancher case studies at https://drought.unl.edu/droughtplanning.



NE Farmer Finds Success with AgriGold HY+Q Soybean Variety

An AgriGold® soybean variety recognized by the Illinois Soybean Association (ISA) High Yield PLUS Quality (HY+Q) program for high livestock feed value set a new world yield record for non-irrigated soybeans in 2020 on a Nebraska farm. The variety, G3520RX, yielded 148.8 bu/A.

Rulo, Nebraska, soybean producer Jimmy Frederick achieved the yield record on a five-acre block within a 204-acre field that overall averaged more than 90 bu/A. This was the first time that Frederick had ever planted an AgriGold variety, and he did so based on a recommendation from friend and fellow farmer Greg McClure, who farms near St. Francisville, Illinois. The two farmers are both moving their operations towards a regenerative farming system that emphasizes soil health, and they became friends while attending meetings and seminars on this subject.

Not surprisingly, Frederick plans to plant more G3520RX in 2021. “I like the plant architecture of this variety –- the leaves are narrower and triangular, which lets more sunlight into the bottom of the canopy,” he says. “Plants are about waist high, with 5-7 lateral branches producing 400-500 pods per plant with 4-bean pods on both top and bottom branches.”

“I thought that G3520RX would be a very good fit for Jimmy’s farm environment,” says McClure. “This variety has a top-end extra gear that responds well to high-yield management practices. It handles stress very well, and I knew Jimmy would do the variety justice.”



U.S. Custom Harvesters to Host In-Person Annual Convention

U.S. Custom Harvesters (USCHI) will host its 37th annual convention in Des Moines, Iowa, January 21-23, 2021. The convention will be an in-person event and will follow local health ordinances for the safety of attending members. 

“Things will look differently this year, but we are excited we still get to host the annual convention in-person in January,” said Mandi Sieren, USCHI’s Operations Manager. “Our priority is to keep everyone safe, so we will be following the health guidance of the City of Des Moines and the guidelines from the Iowa Events Center.”

USCHI is an association of professional custom harvesters. Since 1984, USCHI has hosted an annual event to convene members and partners to learn about new equipment, harvesting techniques and to network.  For the first time in five years, the annual convention will feature the four main U.S. forage harvester companies. Krone, CLAAS, New Holland and John Deere will be showcasing their newest equipment to USCHI members at the convention.  



Climate Expert to Discuss Drought and Other Potential Challenges for 2021

Livestock producers and agribusiness professionals are invited to a webinar discussing climate and weather predictions for the 2021 growing season. The webinar, set for Wednesday, Jan. 20, from noon to 1 p.m., features Dennis Todey, director of the United States Department of Agriculture's Climate Hub in Ames.

Beth Doran, beef specialist with Iowa State University Extension and Outreach, said Todey will bring accurate and important information for those who work with livestock and crop production agriculture.

“Dennis Todey is known nationally for his knowledge and experience in weather forecasting and comes with distinction as the former president of the American Association of State Climatologists,” Doran said. “This is a timely presentation, given that currently more than half of Iowa is experiencing drought conditions ranging from abnormally dry to severe drought.”  

The webinar is offered by the ISU Extension and Outreach Dairy Team as part of its monthly webinar series. Anyone interested in learning about the weather predictions for 2021 can attend the webinar at https://iastate.zoom.us/my/dairyteamfredprogram. Use this link to connect directly to the webinar on Jan. 20 at at the noon start time.

No preregistration is required and there is no fee to attend.

For more information, contact Fred Hall, ISU Extension and Outreach dairy specialist in northwest Iowa, by email at fredhall@iastate.edu or Doran by email at doranb@iastate.edu. Both may also be reached at 712-737-4230.



"Fill Your Freezer" contest to win $200 meat gift card in all Iowa Fareway stores

The Iowa Farm Bureau Federation (IFBF) and Fareway launched their second “Fill Your Freezer” sweepstakes today to give Iowans a chance to win a $200 gift card for meat at each of Fareway’s 106 Iowa locations.

Iowans who want a chance to fill their freezers with $200 in meat can visit www.iowafarmbureau.com/fillyourfreezer and select their local Fareway store. The contest runs through January 31, and one winner from each Fareway location in Iowa will be announced in February.

“Iowa carries a proud agricultural heritage, but it’s not just centered around how much farmers produce—but how. Family farmers put animal care and environmental sustainability as top priorities while also producing the healthy, real meat products people continue to enjoy. That’s why farmers continually seek out the best practices and research to nurture the healthiest animals they can to provide the quality, nutritional value and taste of real meat proteins Iowans have come to expect and savor,” says IFBF President and longtime livestock farmer, Craig Hill.

The 2020 Iowa Farm Bureau Food and Farm Index® shows 95 percent of Iowa grocery shoppers eat meat at least weekly, and 97 percent consume cheese or dairy products at least once a week. With nearly 9 in 10 shoppers looking to purchase foods that support their immune health, 70 percent said they were likely to increase their meat consumption after learning meat and poultry provide the majority of zinc—responsible for helping the body fight off infections—in the American diet.

“Animal proteins— meat, milk and eggs— are ‘complete’ proteins which means they contain all the required amino acids needed for humans. These foods are also great sources of nutrients that maintain and enhance the immune system such as vitamin B12, iron and zinc which are not as well absorbed from plant-based foods,” says Ruth MacDonald, RD, PhD, Iowa State University professor and chair of the Department of Food Science and Human Nutrition. “Having a well-balanced diet is always important, but during high stress times, it’s even more important to ensure the foods we eat are rich in vitamins, minerals and proteins that support and strengthen our immune system.”

The IFBF Food and Farm Index® also revealed 90 percent of Iowans trust the safety of their food and the farmers who produce it. Knowing that 85 percent of Iowa grocery shoppers have the confidence that Iowa’s family farmers are caring for animals responsibly is a source of pride for both farmers and those who serve as a point of sale for the products they raise.

“Iowa Farm Bureau and Fareway are aligned in recognizing high quality meat comes from farms that put an emphasis on animal wellbeing, and it’s incredible to learn about the innovative ways Iowa farmers continue to improve and maintain the health of their livestock,” said Fareway Vice President of Market Operations Jeff Cook. “Fareway is long known for the quality of our meat counters, and we know the integrity of those products would not be as well regarded if not for the hardworking farmers in our state.”



Researchers Announce Successful Production and Multistate Industry Use of Vaccine to Combat Anaplasmosis in Cattle

University Products, LLC officially announced the creation of a vaccine (http://www.anaplasmosisvaccine.com/) successfully used to treat bovine anaplasmosis since 2000. Developed at the Agriculture Center of Veterinary Science at Louisiana State University, and USDA-approved for experimental use, the vaccine has already been widely deployed with no side effects or adverse reactions reported. Anaplasmosis is a parasite-carried blood disease that infects red blood cells and causes severe anemia and death in cattle, representing a significant annual financial loss to both farmers and the beef industry. A detailed description of the vaccine and its method of administration is publicly available for PDF download.

For two decades now, the vaccine has been a highly effective treatment. So far, more than two dozen states and Puerto Rico have approved the vaccine's use. Reports are overwhelmingly positive, and we're now looking to spread the word so that other beef farmers and producers across the nation are aware of the treatment.

Working to Solve the Anaplasmosis Problem
The vaccine does not prevent infection, but when properly used, significantly reduces clinical signs in at-risk animals. The vaccine requires two doses in the first year, with one annual booster each year thereafter. The treatment is safe to use in any stage of bovine pregnancy, and there has never been a reported case of Neonatal Isoerythrolysis (NI) in calves of vaccinated cows. It is also safe to use with animals suspected of incubating anaplasmosis, and can be used in tandem with tetracycline treatments during an outbreak.

Historically, Anaplasmosis has been notoriously difficult to combat, with most measures relying upon screening, biosecurity practices, and administration of low doses of tetracycline in feed or mineral supplements over the course of several months. The endemic spread of anaplasmosis has profound and serious effects for the entire beef industry. Published data on the exact losses suggests that the precise scope is difficult to narrow down, but conservative estimates place the clinical costs at roughly $400 per animal. And with upwards of a 3.6% reduction in calf crop, a 30% increase in cull rate, and a 30% mortality rate in infected adults, that represents approximately $1 Billion loss for the industry per year.



USDA Announces Quality Loss Assistance Now Available for Eligible Producers Affected by 2018, 2019 Natural Disasters

The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) today announced that signup for the Quality Loss Adjustment (QLA) Program will begin Wednesday, Jan. 6, 2021. Funded by the Further Consolidated Appropriations Act of 2020, this new program provides assistance to producers who suffered eligible crop quality losses due to natural disasters occurring in 2018 and 2019. The deadline to apply for QLA is Friday, March 5, 2021.

“Farmers and livestock producers nationwide experienced crop quality losses due to natural disasters in 2018 and 2019,” said. Bill Northey, USDA Under Secretary for Farm Production and Conservation. “We have worked diligently over the past couple of years to roll out meaningful disaster assistance programs to help alleviate the substantial financial loss experienced by so many agricultural producers and are pleased to offer quality loss assistance as added relief. Many of the eligible producers have already received compensation for quantity losses.”

Eligible Crops
Eligible crops include those for which federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage is available, except for grazed crops and value loss crops, such as honey, maple sap, aquaculture, floriculture, mushrooms, ginseng root, ornamental nursery, Christmas trees, and turfgrass sod.

Additionally, crops that were sold or fed to livestock or that are in storage may be eligible; however, crops that were destroyed before harvest are not eligible. Crop quality losses occurring after harvest, due to deterioration in storage, or that could have been mitigated, are also not eligible.

Assistance is based on a producer’s harvested affected production of an eligible crop, which must have had at least a 5% quality loss reflected through a quality discount; or for forage crops, a nutrient loss, such as total digestible nutrients.

Qualifying Disaster Events
Losses must have been a result of a qualifying disaster event (hurricane, excessive moisture, flood, qualifying drought, tornado, typhoon, volcanic activity, snowstorm, or wildfire) or related condition that occurred in calendar years 2018 and/or 2019.

Assistance is available for eligible producers in counties that received a qualifying Presidential Emergency Disaster Declaration or Secretarial Disaster Designation because of one or more of the qualifying disaster events or related conditions.

Lists of counties with Presidential Emergency Disaster Declarations and Secretarial Disaster Designations for all qualifying disaster events for 2018 and 2019 are available here. For drought, producers are eligible for QLA if the loss occurred in an area within a county rated by the U.S. Drought Monitor as having a D3 (extreme drought) or higher intensity level during 2018 or 2019.

Producers in counties that did not receive a qualifying declaration or designation may still apply but must also provide supporting documentation to establish that the crop was directly affected by a qualifying disaster event.

To determine QLA eligibility and payments, FSA considers the total quality loss caused by all qualifying natural disasters in cases where a crop was impacted by multiple events.

Applying for QLA
When applying, producers are asked to provide verifiable documentation to support claims of quality loss or nutrient loss in the case of forage crops. For crops that have been sold, grading must have been completed within 30 days of harvest, and for forage crops, a laboratory analysis must have been completed within 30 days of harvest.

Some acceptable forms of documentation include sales receipts from buyers, settlement sheets, truck or warehouse scale tickets, written sales contracts, similar records that represent actual and specific quality loss information, and forage tests for nutritional values.

Payments Calculations and Limitations
QLA payments are based on formulas for the type of crop (forage or non-forage) and loss documentation submitted. Based on this documentation FSA is calculating payments based on the producer’s own individual loss or based on the county average loss. More information on payments can be found on farmers.gov/quality-loss.

FSA will issue payments once the application period ends. If the total amount of calculated QLA payments exceeds available program funding, payments will be prorated.

For each crop year, 2018, 2019 and 2020, the maximum amount that a person or legal entity may receive, directly or indirectly, is $125,000. Payments made to a joint operation (including a general partnership or joint venture) will not exceed $125,000, multiplied by the number of persons and legal entities that comprise the ownership of the joint operation. A person or legal entity is ineligible for QLA payment if the person’s or legal entity’s average Adjusted Gross Income exceeds $900,000, unless at least 75% is derived from farming, ranching or forestry-related activities.

Future Insurance Coverage Requirements
All producers receiving QLA Program payments are required to purchase crop insurance or NAP coverage for the next two available crop years at the 60% coverage level or higher. If eligible, QLA participants may meet the insurance purchase requirement by purchasing Whole-Farm Revenue Protection coverage offered through USDA’s Risk Management Agency.

More Information
For more information, visit farmers.gov/quality-loss, or contact your local USDA Service Center.



Pulitzer Prize Winner, Energy Expert Daniel Yergin to Headline National Ethanol Conference
    
The Renewable Fuels Association is pleased to announce that Daniel Yergin, a highly respected authority on energy, international politics, and economics, will be a keynote speaker at the 26th annual National Ethanol Conference. Dr. Yergin will speak the morning of Wednesday, February 17, with a presentation titled, “The New Map: Energy and Geopolitics Coming Out of the Pandemic.”

“Daniel Yergin is one of the world’s most influential and insightful energy experts, and we are excited to welcome him to this year’s NEC,” said RFA President and CEO Geoff Cooper. “Dr. Yergin’s appearance at the NEC will be especially timely this year, as the geopolitical landscape continues to shift, climate policies are rapidly reshaping fuel markets, and the energy sector continues to recover from the devastating impacts of the COVID pandemic. Leaders in the ethanol industry will not want to miss this rare opportunity to hear from Dr. Yergin.”
    
As an exclusive benefit for participating in this year’s NEC, all registered attendees will receive a copy of Dr. Yergin’s newest book, 2020’s The New Map: Energy, Climate and the Clash of Nations. It has been selected as one of the Best Books of the Year by both USA Today and NPR, and The Book of the Year by Bloomberg Surveillance.

“I greatly welcome the opportunity to address RFA,” said Dr. Yergin. “So much change is afoot in the national and global energy industries, and in the larger political context, that it will be particularly timely to have this opportunity to discuss it with members of RFA.”
 
The latest book follows two previous works focused on the global politics of energy. He won the Pulitzer Prize for General Nonfiction with his 1990 book, The Prize: The Epic Quest for Oil Money and Power. Another volume on energy, The Quest: Energy, Security, and the Remaking of the Modern World, came out in 2011. His other books include Commanding Heights: The Battle for the World Economy and Shattered Peace: Origins of the Cold War.

Currently the vice chairman of IHS Markit, one of the leading information and advisory firms in the world with 16,000 employees worldwide, Dr. Yergin has served on the U.S. Secretary of Energy’s Advisory Board under Presidents Clinton, Bush, Obama, and Trump. He is a director of the Council on Foreign Relations and a trustee of the Brookings Institution, serving also on the Energy Advisory Council of the Dallas Federal Reserve. Dr. Yergin holds a bachelor’s degree from Yale University and a Ph.D. from Cambridge University, where he was a Marshall Scholar.

Taking place digitally February 16-18, 2021, the National Ethanol Conference is the most widely attended executive-level conference for the ethanol industry, providing an unequaled opportunity to engage key decision-makers and industry executives about the latest opportunities and challenges affecting the industry today. Last year’s conference, which featured former President George W. Bush as a special guest, attracted approximately 1,000 industry professionals representing 39 states, the District of Columbia, and 18 countries. For more information, visit www.NationalEthanolConference.com.



RFA, Growth Energy Demand Transparency in Refinery Exemption Process

In a court filing today, the Renewable Fuels Association and Growth Energy continued to call on the U.S. Environmental Protection Agency and the Department of Energy to release the names and locations of refineries granted exemptions from their Renewable Fuel Standard obligations.

RFA President and CEO Geoff Cooper and Growth Energy CEO Emily Skor offered the following joint statement on the filing: “The public has a right to know which companies are receiving waivers from their Clean Air Act obligations and skirting requirements to blend cleaner, greener renewable fuels like ethanol. It is disingenuous for EPA to suggest that the names and locations of the exempted refineries constitute confidential business information, especially when the Agency itself has twice proposed to publicly disclose this information. We will not stop our efforts to bring transparency to this process until the shroud of secrecy has been lifted on the small refinery exemption program.”

The dispute centers on EPA’s refusal to provide certain basic information about refinery exemptions as requested by RFA and Growth Energy under the federal Freedom of Information Act. EPA incorrectly claims that even the names and locations of refineries receiving waivers are protected because they constitute "commercial or financial information obtained from a person [that is] privileged or confidential." But RFA and Growth Energy have simply requested the names and locations of the refineries petitioning for exemptions, not any commercial information or financial data that might otherwise be exempt from public disclosure under FOIA.

“Although EPA shares the aggregate number of exemptions it has decided to grant or deny, its withholding of the basic information regarding individual exemption decisions sought here has made it difficult or impossible for affected third parties (such as Plaintiffs) to challenge its exemption decisions,” RFA and Growth Energy state in the court filing. “EPA has relieved scores of refineries of their statutory compliance obligations without any public process, leaving Plaintiffs and other affected entities ‘without a viable avenue for judicial review.’”



China to Boost Corn Acreage in 2021

China will increase the area sown with corn in its main grain regions this year, the agriculture minister has said, reversing several years of declining acreage in response to a growing shortfall.

The expansion is part of a comprehensive plan to ensure food security, according to Tang Renjian, the newly appointed Minister of Agriculture and Rural Affairs, state media Xinhua news agency reported.

Authorities will focus on expanding corn acreage in the northeast as well as areas around the Yellow, Huai and Hai rivers, Tang said in an interview with Xinhua on Sunday.

According to Reuters, the pledge comes after China's corn prices soared to record levels after authorities nearly emptied once-mammoth temporary reserves at auctions. Importers have brought in record volumes of grain to plug the shortage.

China had been cutting down on corn acreage in the past few years to whittle down the state stockpiles and to boost output of other crops like soybeans.

Farmers planted 41.264 million hectares of corn in 2020, with output of the grain at 260.67 million tonnes.