Monday March 8 Ag News

 Ricketts, Ethanol Board Showcase UNL Research Demonstrating the Safety and Efficiency of E30 Biofuel

Today, Governor Pete Ricketts announced the results of a E30 demonstration project conducted by the University of Nebraska-Lincoln (UNL) with support from the State’s Department of Administrative Services (DAS).  The ground-breaking research clearly demonstrates that E30, gasoline blended with 30% ethanol, is safe for long-term use in non flex fuel vehicles (FFVs).  A summary of the research is available by clicking here.

“The research partnership between the State and the University clearly demonstrates that E30 is a safe and reliable fuel for vehicles,” said Governor Ricketts.  “Ethanol saves drivers money at the pump, is good for air quality, and creates opportunities for our farm families.  This study will be a great aid as we advocate for growing the volume of E30 in our nation’s fuel supply.  In turn, raising demand for E30 biofuel will benefit Nebraska’s corn growers who supply 35% of their crop to our state’s ethanol industry.”

A team at the UNL Engineering Department—led by Dr. Rajib Saha, Assistant Professor of Chemical and Bimolecular Engineering—completed a summary of the E30 demonstration and reported the safety of using the fuel in non-FFVs.  The team reached its conclusion after a yearlong demonstration, permitted by the U.S. Environmental Protection Agency (EPA), compared various data points among a fleet of state-owned, non-FFVs.  The full results of the demonstration will be released after being peer reviewed.

“There has been inconsistent messaging that using higher blends of ethanol reduces the fuel efficiency or wears down parts,” said Adil Alsiyabi, the primary UNL researcher of the E30 demonstration.  “But what the results show is that none of that is true.  By going through rigorous testing, we’ve proven that higher ethanol blends do not decrease efficiency or compromise engine performance.  Our goal was to find out if the vehicles on the road today can use ethanol blends up to E30 with no loss in fuel mileage and no mechanical issues.”

The demonstration captured data using On-Board Diagnostics (OBD) devices on approximately 50 vehicles through both warm and cold seasons.  When the engine was started, the device captured millions of data points, giving UNL researchers an opportunity to monitor fuel efficiency, vehicle performance, emissions control systems, and many more systems.  Additionally, drivers kept a log each time they filled up and provided their experience in regards to maintenance and efficiency.

“We were not surprised by the results,” said Roger Berry, administrator for the Nebraska Ethanol Board.  “I am encouraged that we now have hard facts that show E30 can safely be used in vehicles other than flex fuels.  Our next step will be to demonstrate this to the EPA and auto manufacturers and to change their recommendations.  I personally have been a long-time user of higher ethanol blends in my conventional vehicles and have had no issues.  Ethanol is a widely studied fuel.  More people will start to see ethanol’s benefits as we continue to provide the facts through projects like this.”

Under U.S. EPA current guidelines, only FFVs can use blends higher than E15.  This demonstration confirms that today’s conventional vehicles can safely and economically use E30.  Since ethanol is made locally from Nebraska corn, it is often cheaper than other gasoline options.  Ethanol also replaces toxic chemicals found in gasoline with renewable octane—making it a healthier, cleaner fuel.

Making E30 more widely available will also help the ethanol industry stay competitive among transportation innovations as the country works to reduce its carbon footprint.  Traffic is one of the highest contributors to carbon pollution which has been linked to cancer, heart disease, and increased respiratory issues.  By using fuels blended with ethanol, drivers reduce greenhouse gases by 46 percent.  According to Growth Energy, a national ethanol organization, if the U.S. transitioned from E10 to E15, greenhouse gas emissions (GHG) would be lowered by 17.62 million tons per year, which is the equivalent of removing approximately 3.85 million vehicles from the road.  Increasing the amount of ethanol in the blend will continue to decrease harmful emissions.

“Using E30 is just as effective in eliminating carbon emissions as electric vehicles (EVs) when you compare ‘well to wheel’ emissions of the two types of vehicles,” said Jan tenBensel, chairmen of the Nebraska Ethanol Board.  “That puts ethanol in a good position to help achieve our climate goals as a nation.”

“DAS is proud to have been a part of this successful E-30 pilot study,”  said DAS Director Jason Jackson.  “Our team with Transportation Services Bureau has done a great job working along side state and federal partners to deliver accurate and reliable data for the study.”

Berry said the Nebraska Ethanol Board plans to work with industry partners and the EPA to continue E30 demonstrations, which have gained interest from other state governors.



REPLACING THIN ALFLAFA
– Ben Beckman, NE Extension Educator

Planting new fields of alfalfa is expensive.  So many of us put off tearing up old fields and planting new ones.  But is this smart?

Alfalfa stands usually reach peak production by year two or three.  After this, yields tend to decline each year.  By year four or five, yields are often much lower than their peak years, especially for dryland fields, because the subsurface moisture that plants were using during the early years is all gone.  This is most noticeable during drought years when regrowth is almost zero after the first or second cut. Yield decline in irrigated fields is slower but usually is a ton or more lower by year five or six.  In addition, thin stands with densities of less than 50 stems per square foot can open the door for weed encroachment.

So, should you try to squeeze another year out of your alfalfa stand? Calculate the costs. First, and most obvious, how will the lower yield of your old field compare to yields from a younger field.  A second loss, is the lost rotation benefit received by crops like corn that follow alfalfa in the rotation.  Not only will alfalfa reduce your nitrogen fertilizer needs by one hundred to one hundred fifty pounds over the next couple years, much research has shown that corn after alfalfa often yields ten to twenty bushels more per acre than it will even with extra fertilizer.

This rotation benefit could be especially valuable this year if corn prices stay high.  So, if you have alfalfa fields that are past their prime, or maybe show winter damage this spring, this might be an excellent time to rotate those fields to a different crop and plant some new, higher yielding acres to alfalfa.

Both your alfalfa crop and the rotated crop could benefit.



Scott, Thompson Announce House Agriculture Subcommittee Rosters for the 117th Congress

House Agriculture Committee Chairman David Scott of Georgia and Ranking Member Glenn ‘GT’ Thompson of Pennsylvania announced the rosters for the six subcommittees of the House Agriculture Committee today in Washington.

Commodity Exchanges, Energy, and Credit
Democratic Members include:
Chair Antonio Delgado (NY-19)
Sean Patrick Maloney (NY-18)
Stacey Plaskett (US-VI)
Ro Khanna (CA-17)
Cindy Axne (IA-03)
Bobby Rush (IL-01)
Angie Craig (MN-02)
Annie Kuster (NH-02)
Cheri Bustos (IL-17)
Republican Members include:
Ranking Member Michelle Fischbach (MN-07)
Austin Scott (GA-08)
Doug LaMalfa (CA-01)
Rodney Davis (IL-13)
Chris Jacobs (NY-27)
Troy Balderson (OH-12)
Michael Cloud (TX-27)
Randy Feenstra (IA-04)
Kat Cammack (FL-03)
 
Livestock and Foreign Agriculture
Democratic Members include:
Chair Jim Costa (CA-16)
Abigail Spanberger (VA-07)
Jahana Hayes (CT-05)
Lou Correa (CA-46)
Josh Harder (CA-10)
Ro Khanna (CA-17)
Cindy Axne (IA-03)
Bobby Rush (IL-01)
Stacey Plaskett (US-VI)
Angie Craig (MN-02)
Sanford Bishop (GA-02)
Republican Members include:
Ranking Member Dusty Johnson (SD-AL)
Scott DesJarlais (TN-04)
Vicky Hartzler (MO-04)
David Rouzer (NC-07)
Trent Kelly (MS-01)
Don Bacon (NE-02)
Jim Baird (IN-04)
Jim Hagedorn (MN-01)
Tracey Mann (KS-01)
Randy Feenstra (IA-04)
Barry Moore (AL-02)
 
Nutrition, Oversight, and Department Operations
Democratic Members include:
Chair Jahana Hayes (CT-05)
Jim McGovern (MA-02)
Alma Adams (NC-12)
Bobby Rush (IL-01)
Gregorio Kilili Camacho Sablan (MP-AL)
Salud Carbajal (CA-24)
Al Lawson (FL-05)
Ann Kuster (NH-02)
Jimmy Panetta (CA-20)
Sean Patrick Maloney (NY-18)
Republican Members include:
Ranking Member Don Bacon (NE-02)
Rick Crawford (AR-01)
Scott DesJarlais (TN-04)
Vicky Hartzler (MO-04)
Jim Baird (IN-04)
Chris Jacobs (NY-27)
Michael Cloud (TX-27)
Kat Cammack (FL-03)
 
General Farm Commodities and Risk Management
Democratic Members include:
Chair Cheri Bustos (IL-17)
Angie Craig (MN-02)
Filemon Vela (TX-34)
Salud Carbajal (CA-24)
Tom O'Halleran (AZ-01)
Al Lawson (FL-05)
Sanford Bishop (GA-02)
Republican Members include:
Ranking Member Austin Scott (GA-08)
Rick Crawford (AR-01)
Rick Allen (GA-12)
David Rouzer (NC-07)
Tracey Mann (KS-01)
Mary Miller (IL-15)
 
Biotechnology, Horticulture, and Research
Democratic Members include:
Chair Stacey Plaskett (VI-AL)
Antonio Delgado (NY-19)
Kim Schrier (WA-08)
Jimmy Panetta (CA-20)
Chellie Pingree (ME-01)
Sean Patrick Maloney (NY-18)
Salud Carbajal (CA-24)
Al Lawson (FL-05)
Josh Harder (CA-10)
Lou Correa (CA-46)
Ann Kirkpatrick (AZ-02)
Republican Members include:
Ranking Member Jim Baird (IN-04)
Austin Scott (GA-08)
Rick Crawford (AR-01)
Rodney Davis (IL-13)
Don Bacon (NE-02)
Jim Hagedorn (MN-01)
Chris Jacobs (NY-27)
Troy Balderson (OH-12)
Michelle Fischbach (MN-07)
 
Conservation and Forestry
Democratic Members include:
Chair Abigail Spanberger (VA-07)
Filemon Vela (TX-34)
Chellie Pingree (ME-01)
Ann Kuster (NH-02)
Tom O'Halleran (AZ-01)
Jimmy Panetta (CA-20)
Lou Correa (CA-46)
Kim Schrier (WA-08)
Republican Members include:
Ranking Member Doug LaMalfa (CA-01)
Scott DesJarlais (TN-04)
Rick Allen (GA-12)
Trent Kelly (MS-01)
Dusty Johnson (SD-AL)
Mary Miller (IL-15)
Barry Moore (AL-02)

Additionally, Committee Chairman David Scott and Ranking Member Glenn ‘GT’ Thompson serve as ex officio members on all six subcommittees.



IFBF announces retirement of Executive Director, Secretary-Treasurer, and selection of successor

The Iowa Farm Bureau Federation (IFBF) announced today that Joe Johnson will retire on June 1, 2021, as Executive Director/Secretary-Treasurer of the IFBF.  He will be succeeded by Marty Schwager, IFBF’s current Field Service Director.

Johnson is concluding his 36-year career with IFBF after having served as Executive Director/ Secretary-Treasurer since 2018.  Prior to his current position, Johnson led the Field Service Division of the organization for 8 years, and previously served as a state policy advisor, and initially as a regional manager.

“Joe’s passion and dedication to IFBF and its members has immensely benefited the organization during his tenure,” noted IFBF President Craig Hill.  “While his leadership will be missed, he has more than earned his upcoming retirement, and the organization wishes him and Karen the best in retirement.”

Effective June 1, 2021, Marty Schwager will succeed Johnson as IFBF Executive Director/ Secretary-Treasurer.  Marty, a 16-year veteran of Farm Bureau, has served as Director of Field Service since 2018, where he leads the activities of the organization’s regional managers, as well as the Leadership, Farmer Education, and Farm Business Development areas.  Prior to his current position, Marty had served as state policy advisor for 8 years.  Marty has also served as IFBF’s national policy advisor and started with the organization as a regional manager.

“The IFBF Board of Directors is confident in Marty’s proven leadership, and his ability to build solid programs and relationships for the organization’s continued success,” noted Hill.

Schwager has both undergraduate and master’s degrees from Iowa State University.  He and his wife Jolea have three children and reside in Clive, Iowa.



IDALS Piloting Online Commercial Pesticide Applicator Testing

Iowa Secretary of Agriculture Mike Naig announced today that the Iowa Department of Agriculture and Land Stewardship is pilot testing a program that allows commercial pesticide applicators to complete some of their annual testing requirements online during the COVID-19 pandemic.

“This is yet another example of how the Department is using technology and making testing accommodations to help pesticide applicators obtain or renew their certifications to ensure safe and effective applications and the continuity of business during the pandemic,” said Secretary Naig. “This new platform gives commercial pesticide applicators the flexibility to take the exam from their homes or offices given the current public health guidelines.”

Commercial applicators are required to take the same test and meet the same standards, regardless of whether they take it online or in-person. Commercial pesticide applicators can create an account to take the online exam at data.iowaagriculture.gov/pest_signup/#online. The online exams are monitored, recorded and reviewed by a third-party proctoring service. A web camera, high-speed internet connection and government-issued photo ID card are required for online testing. There is a $25 fee for each commercial pesticide applicator test completed online, payable directly to the third-party online testing service.

Pesticide applicators will receive a preliminary pass/fail test result as soon as they complete the online exam; these preliminary results cannot be used to apply for pesticide applicator certification. The third-party proctoring service will certify the test results and send the final scores to the email address used to register for the exam. Feedback on test results is only available at in-person testing sites and will not be provided for online exams.

For information about the commercial pesticide applicator online exam, visit data.iowaagriculture.gov/pest_signup/#online.

Private Applicator Online Testing
Private pesticide applicators who want to obtain or renew their certifications can register to take the private certification exam online at iowaagriculture.force.com/pesticideapplicator/s/login/.

In-Person Testing Options
In-person testing is available for both commercial and private pesticide applicators at college test centers and Iowa Department of Agriculture and Land Stewardship’s test sites. A complete list of testing sites is available at iowaagriculture.gov/pesticide-bureau/applicator-licensing-certification. Individuals are expected to follow social distancing guidelines while taking in-person exams. Pre-registration is required and applicators can sign-up at data.iowaagriculture.gov/pest_signup/.

Apply for Pesticide Applicator Licenses ONLINE
Once applicants pass the online or in-person exam, they will use their certification number to log-in to the Department’s pesticide self-service portal to submit their application, test results and payment. Once the application, payment, training and testing information are received and processed by the Pesticide Bureau, the licenses and certifications will be sent directly to the applicants.

For more information, contact the Iowa Department of Agriculture and Land Stewardship’s Pesticide Bureau at (515) 281-8591 or pesticides@iowaagriculture.gov.



January Red Meat Exports Below Year-Ago Levels Amid Transportation, Labor Challenges

U.S. beef and pork exports opened 2021 below the large volumes posted a year ago, according to January data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef exports totaled 105,047 metric tons (mt) in January, down 2% from a year ago, while value slipped 3% to $653 million. The decline was due mainly to lower beef variety meat shipments, as muscle cut exports were steady with January 2020 at 81,398 mt, valued at $584.4 million (down 1%) and accounted for a larger share of production than a year ago. January beef exports were very strong to South Korea and continued to gain momentum in China. Following a down year in 2020, exports also rebounded to the Middle East.

January pork exports totaled 248,656 mt, down 9% from a year ago but slightly above USMEF's projections. Export value was down 13% to $642.8 million. Pork muscle cut exports were down 11% in volume (208,234 mt) and 15% in value ($551.3 million), while pork variety meat shipments trended modestly higher than a year ago. While pork exports to China/Hong Kong declined as expected, exports to Japan increased in January and demand was very strong in Central America, the Philippines and the Caribbean.

U.S. lamb exports climbed 7% in January to 1,027 mt but value fell 43% to $1.2 million, as volume growth was driven by lamb variety meat demand in Mexico and Canada. Lamb muscle cut exports trended higher than a year ago to Bermuda and Japan.

USMEF President and CEO Dan Halstrom said January represented a fairly solid start to 2021, but cautioned that exports still face COVID-related obstacles and significant transportation and labor challenges.

"As key destinations for U.S. red meat roll out COVID vaccination programs, the outlook for 2021 is optimistic, with retail meat demand remaining strong and the expectation that foodservice will rebound in more and more regions," Halstrom said. "But transportation challenges are currently a dominant concern, particularly the congestion and container shortages at our West Coast ports where shorthanded crews are handling record-large cargo volumes. Labor is also at a premium in processing plants, which affects the industry's ability to fully capitalize on demand for certain labor-intensive cuts and variety meat items.

"Although the global foodservice sector still has a long recovery ahead, international demand for U.S. red meat remains impressive and resilient," Halstrom added. "But a range of logistical challenges must be overcome in order to fully satisfy this demand."



The Effects of Wind Turbines on a Farm's Value
Randy Dickhut, Senior Vice President - Real Estate Operations, Farmers National Company

Over the years I have been asked a number of times if having a wind turbine on a farm adds or detracts from the farm's overall value. This is a timely question with the heightened interest in renewable energy. Appraisers and others have done detailed analysis based on actual sales of comparable type farms with and without wind turbines to come up with the contributory value of the wind lease/revenue to the farm's current value. Also, some have used the discounting of the future revenue stream from the lease payments to come up with the current value of having the wind turbines.
 
On an anecdotal level, several recent sales of farms in Iowa with turbine leases give us a view of what the land marketplace is thinking having the lease revenue means to the value of the farm to the buyer. Of course, there are many factors affecting the value equation of a wind lease on a farm such as the size of the farm and the number of turbines on the farm. For example, if the farm is 80 acres and has one turbine, the value effect will be different than a 120 acres farm with two turbines as the total lease revenue is factored into the acres of to get the total value of the property. Other factors include the terms of the lease, dollar amount of the lease payments and length of term.
 
A recent Farmers National Company auction in central Iowa saw a very high interest level with two to three times the normal number of registered bidders. Company advertising across the spectrum attracted the attention of potential buyers from all over the country as they saw it on our website or other sites. Both in person and on-line bidders were active in moving the price up during the auction. After the auction closed, there were many who were going to continue actively looking for a farm or farms with wind turbine leases.
 
Based on several recent sales, the marketplace at this moment is telling us that buyers are willing to pay $1,000 to $2,000 per acre or more for a farm with wind turbines and good lease terms. Of course, this will vary widely due to the factors mentioned above. Whether the buyer is looking for a safe, long-term investment in farmland with the additional cash flow of the turbine lease or they are interested more in being a part of the renewable energy movement, the land market is saying there is extra value in having a wind turbine on a farm.



March 15 Deadline to Complete Election & Enrollment for 2021 Agriculture Risk Coverage, Price Loss Coverage Programs

Agricultural producers who have not yet elected and enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2021 have until March 15. Producers who have not signed a contract or who want to make an election change should contact their local U.S. Department of Agriculture (USDA) Service Center to make an appointment. Right now, about 1.4 million farms have enrolled, about 81% of expected participation.

“In times like these, from winter storms to a pandemic, we’re reminded of the importance of managing risk,” said Zach Ducheneaux, Administrator of USDA’s Farm Service Agency (FSA). “The Agriculture Risk Coverage and Price Loss Coverage programs provide critical support to farmers to protect them from substantial drops in crop prices or revenues. If you have not enrolled or made elections, please do so by the March 15 deadline.”

Producers who enrolled for the 2019 crop year received more than $5 billion in payments last fall. If an ARC or PLC payment triggers for a particular crop for the 2021 crop year and there is no signed 2021 contract on file, then the producer is ineligible for that program payment.

Producers are eligible to enroll farms with base acres for the following commodities: barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium- and short-grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.

Decision Tools
To help producers make elections, FSA makes program data available to help producers make ARC and PLC decisions.

Additionally, USDA partnered with universities to offer web-based decision tools:
    Gardner-farmdoc Payment Calculator, the University of Illinois tool that offers farmers the ability to run payment estimates modeling for their farms and counties for ARC-County and PLC.
    ARC and PLC Decision Tool, the Texas A&M tool that allows producers to analyze payment yield updates and expected payments for 2019 and 2020.

Crop Insurance Considerations
Producers are reminded that enrolling in ARC or PLC programs can impact eligibility for some crop insurance products offered by USDA’s Risk Management Agency (RMA). Producers who elect and enroll in PLC also have the option of purchasing Supplemental Coverage Option (SCO) through their Approved Insurance Provider, but producers of covered commodities who elect ARC are ineligible for SCO on their planted acres.

Unlike SCO, RMA’s Enhanced Coverage Option (ECO) is unaffected by participating in ARC for the same crop, on the same acres. You may elect ECO regardless of your farm program election.

Upland cotton farmers who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan, or STAX, on their planted cotton acres.

For more information on ARC and PLC, visit farmers.gov/arc-plc.



Update on the Final Rule for the Domestic Production of Hemp

The U.S. Department of Agriculture today announced completion of its review of the Final Rule establishing the U.S. Domestic Hemp Production Program. The rule moves forward as published in the Federal Register on Jan. 19, 2021, and becomes effective March 22, 2021.

As part of the transition, USDA and many other agencies took the opportunity to review new and pending regulatory actions. This is a routine process done at the beginning of new administrations to ensure longstanding as well as new programs are structured and resourced appropriately and to ensure programs are implemented to best serve their intended stakeholders.

Background: The final rule includes provisions for the USDA to approve hemp production plans developed by states and Indian tribes including requirements for maintaining information on the land where hemp is produced, testing the levels of delta-9 tetrahydrocannabinol, disposing of plants not meeting necessary requirements and licensing requirements. It also establishes a federal plan for hemp producers in states or territories of Indian tribes that do not have their own USDA-approved hemp production plan.

The final rule incorporates modifications to regulations established under the interim final rule (IFR) published in October 2019. The modifications are based on public comments following the publication of the IFR and lessons learned during the 2020 growing season.

Key provisions of the final rule include licensing requirements; recordkeeping requirements for maintaining information about the land where hemp is produced; procedures for testing the THC concentration levels for hemp; procedures for disposing of non-compliant plants; compliance provisions; and procedures for handling violations.

More information about the provisions of the final rule is available on the Hemp Production web page on the Agricultural Marketing Service (AMS) website.



 Fischer, Colleagues Urge USDA to Assist Biofuel Producers

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, today joined Senators Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), and seven of their Senate colleagues today in sending a letter to U.S. Department of Agriculture (USDA) Secretary Tom Vilsack urging the department to assist biofuel producers hurt by the COVID-19 pandemic.

“We have been advocating for targeted relief for the biofuels industry since last spring when we were first made aware of the demand collapse for ethanol and other renewable fuels due to the COVID-19 pandemic. As you know, additional funding was added to the Commodity Credit Corporation (CCC) by the Coronavirus Aid, Relief, and Economic Stabilization (CARES) Act. However, the previous administration argued that congressional intent was not clear with regard to support for biofuels and did not use its discretionary authority to assist biofuels producers through available CCC funding,” the senators wrote.

“As the Department prepares a proposal for providing assistance to the agriculture industry using CCC and other resources, we ask that you use this explicit authority to aid the nation’s biofuels industry… We have been encouraged by your recent statements at your confirmation hearing that you will fully utilize USDA resources to get biofuel producers back on track and will aid the Biden Administration in restoring the integrity of the Renewable Fuel Standard,” they continued.



Growth Energy Applauds Senate COVID-19 Relief Efforts for Biofuels  

Growth Energy CEO Emily Skor thanked a bipartisan group of Senators for sending a letter to Secretary of Agriculture Tom Vilsack calling on him to provide COVID-19 financial assistance for the biofuels industry:  

“We’re grateful to our Senate biofuels champions for their bipartisan effort in asking USDA to use CCC’s COVID funding for biofuels relief assistance. Biofuel producers, farmers, and others throughout the biofuels supply chain have been hit hard financially over the course of the pandemic and securing much-needed financial assistance would bring relief and certainty as they look ahead to a brighter year and build back what was lost.

“Secretary Vilsack understands the critical role the biofuels industry plays in supplying critical co-products, providing cleaner fuel choices to American drivers, and supporting the rural economy. We look forward to working with him on a solution.”



Biodiesel Drives Fleet Operations to be Better, Cleaner, Now!

In a multitude of ways, the past year has drawn into sharp focus the important interrelationships between public health, the environment, and the economy.  Yet through all the challenges presented by a global pandemic, extreme weather events, and an economic recession, America’s trucking fleets - the vast majority of which are powered by diesel engines - persevered to continue delivering the essential goods and supplies that our nation relies on to keep moving forward.  The past year also demonstrated the need for businesses to adapt quickly to changing conditions, to work smarter with limited resources, to do more to protect the environment and human health, and to not become overly reliant on just one power source. These challenges have become especially pertinent for America’s fleet managers on the front lines of this evolution, and a growing number of those fleets are finding solutions with biodiesel – a renewable, sustainable, low-carbon alternative to diesel fuel - to help them operate better, cleaner, now.

Each year NTEA, the Association for the Work Truck Industry, conducts a comprehensive Fleet Purchasing Outlook Survey to better understand the commercial vehicle landscape, including interest levels for advanced truck technologies and alternative fuels.  Insights from NTEA’s Fleet Purchasing Outlook, provided by fleet professionals across the United States and Canada, give the entire work truck industry perspective on anticipated purchasing intent and areas of greatest interest to fleet managers. For the fourth year in a row, fleet respondents in the 2021 Fleet Purchasing Outlook Survey ranked biodiesel as their number one choice for current alternative fuels use, and both biodiesel and renewable diesel were listed as popular options for future use as well.

“Results of this year’s Fleet Purchasing Outlook Survey indicate 2021 acquisition activity will focus more on replacement than expansion,” said Chris Lyon, NTEA director of fleet relations. “This is consistent with expectations, given the fleet purchasing cycle peaked in 2018–2019. Regarding alternative fuel options planned for the year ahead, biodiesel continues to rank among the most widely accepted, representing a significant area of interest for a growing number of fleets. Nearly 40% of respondents anticipate fuel type changes for 2021, an escalation which may be partially attributed to increased usage of all biodiesel blends.”

NTEA’s recently released survey results for 2021 are being highlighted this week during its Work Truck Week 2021 virtual event, and they reflect positive trends for the use of biodiesel and renewable diesel in the diesel vehicle technology of yesterday, today and tomorrow. The National Biodiesel Board (NBB) is participating as a featured exhibitor in the event, with a Live Demo scheduled for Tuesday, March 9th at 9:45 AM ET featuring the City of Ames’ use of clean, low-carbon, one hundred percent biodiesel (B100) to power its fleet.

Rich Iverson, Fleet Support Manager for the City of Ames, Iowa, explained, “Fleet Services actively searches for ways to reduce our greenhouse gas emissions and lower our carbon footprint.  As we research alternative fuels for our fleet, we look at the investment into infrastructure and equipment required to move to a different fuel. Biodiesel offers us an easy, reliable and affordable solution for use in our existing diesel fleet with our existing fueling infrastructure.” The City of Ames has been using biodiesel blends of up to B20 (a blend of 20 percent biodiesel with 80 percent ultra-low sulfur diesel) to power its diesel vehicle fleet, including fire trucks and ambulances, for over 11 years with great success.

However, after completing a successful B100 pilot program last year with five of its existing trucks, the City of Ames decided to further amplify its carbon reduction efforts to provide even cleaner air for its residents by purchasing seven new all-purpose dump trucks that are also equipped to run on 100 percent biodiesel. All twelve trucks are upfitted with Optimus Technologies’ advanced fuel Vector System that enables the engines to operate year-round on B100 biodiesel supplied by Iowa-based biodiesel producer Renewable Energy Group.

“We found that using B100 biodiesel combined with technology offered by Optimus Technologies gave us the best cost/benefit ratio in reducing our GHG emissions,” Iverson stated. “The beauty of this approach is its simplicity. Equipping our existing class 7 and 8 diesel dump trucks to run on pure biodiesel was an immediate, economical way to significantly reduce our carbon intensity.”

Compared to fossil fuels like petrodiesel, B20 biodiesel blends reduce carbon by 16 percent on average, and vehicles operating on B100 can reduce carbon by an average of 80 percent. Overall, the City of Ames’ use of biodiesel blends in all its diesel equipment will reduce the fleet’s annual carbon emissions by an estimated 250 metric tons in 2021.



U.S. Dairy Industries Unite in Seeking Canadian TRQ Administration Reform

The U.S. Dairy Export Council (USDEC), National Milk Producers Federation (NMPF) and International Dairy Foods Association (IDFA) today issued joint comments on Canada’s Phase II Consultations on its Comprehensive Review of the Allocation and Administration of Tariff Rate Quotas (TRQs) for Dairy, Poultry, and Egg Products. The three organizations, which have repeatedly expressed concerns about Canada’s failure to align its TRQ conditions with its commitments in the United States-Mexico-Canada Agreement (USMCA), are united in their insistence that Canada must dramatically reform its policies regarding the administration and allocation of its TRQs.

“USMCA negotiations resulted in clear new access for the United States dairy industry. In contrast with virtually all other sectors of the U.S.-Canadian economies, the level of dairy access is tightly prescribed by the agreement. That makes it all the more important that our industry can benefit from the full value of those dairy commitments,” stated Krysta Harden, President and CEO of USDEC. “Canada needs to stop manipulating its dairy TRQs; its actions have not only negatively impacted U.S. dairy farmers and manufacturers, but also constrained many Canadian companies from being able to make use of these new TRQs to expand their supply options. USMCA lays out clear requirements on TRQ procedures and we urge the U.S. government to ensure full compliance by Canada with those commitments.”

USDEC, NMPF and IDFA have been monitoring Canada's dairy actions, particularly its USMCA commitments. The three organizations have reiterated the importance of compliance with and enforcement of the Agreement, especially in relation to Canadian TRQ administration and allocation, as well as USMCA’s dairy pricing program reform commitments. These joint comments elaborate on those TRQ compliance concerns, outlining the fact that the U.S. dairy industry insists upon realizing the full benefit of the USMCA market access Canada committed to provide. Among the priorities noted in the joint comments were the importance of ensuring that TRQs be made available without discrimination to all actors in Canada’s full dairy supply chain – including distributors, retailers, food services outlets, processors, etc. USDEC, NMPF, and IDFA have each filed detailed comments outlining these and other concerns with the Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA), and continue to support the Administration’s work to hold Canada accountable under its ongoing USMCA consultations.

“For too long, prices received by U.S. dairy farmers have been undermined by Canadian dairy policies. USMCA commitments provided for a controlled expansion of access for U.S. exports to finally crack open the door to Canada’s market a bit further. It’s time for Canada to stop playing games and address concerns related to the administration of its TRQs,” said Jim Mulhern, President and CEO of NMPF. “Canada is failing to meet its trade obligations by manipulating import license procedures and minimizing the ability of U.S. dairy farmers to have full access to the benefits of USMCA. That needs to stop, and we look forward to working with the Biden Administration to ensure it does.”

“We are pleased to partner with our colleagues to present a united front to Canada that emphasizes the U.S. dairy industry’s continued request for Canada to honor its USMCA commitments,” stated Michael Dykes, President and CEO of IDFA. “We continue to ask our U.S. government colleagues to hold Canada accountable to honor its USMCA commitments and to align its TRQ policies with its international obligations.”

In 2020, the United States exported almost $676 million in dairy products to Canada, well short of the gains estimated to occur under USMCA by the U.S. International Trade Commission in its 2019 report.



Commodity Classic Offers On-Demand Access To 2021 Special Edition Sessions

Farmers and other agricultural advocates who were unable to participate in the 2021 Special Edition of Commodity Classic can still take advantage of the more than 50 educational sessions that were offered during last week’s online event.  Every session is now available on-demand.

Registration for on-demand access is available through Friday, March 12.  Thanks to generous sponsor support, farmers can register at no charge.  The cost is $20 for all other registrants.

Once registered, you will be able to view any of the sessions on-demand through April 30, 2021.  Registration is available at CommodityClassic.com. A complete list of sessions is also available on this website.

Highlights include a keynote address from USDA Secretary Tom Vilsack, a conversation between the farmer-leaders of the four commodity associations that present Commodity Classic, as well as the ag chair of the Association of Equipment Manufacturers, and executive roundtables featuring top agribusiness leaders.  Dozens of other sessions focus on topics such as marketing, mental health, weather, trade, soil health and more.  Additionally, sponsors showcase their latest innovations, services, and products.

A special bonus feature—not presented during last week’s event—is a conversation between the CEOs of the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers and the Senior Vice President, Agriculture Services & Forestry of the Association of Equipment Manufacturers.

Nearly 6,000 people from 49 states and 24 countries registered for the 2021 Special Edition of Commodity Classic.  Attendees represented more than 4,000 farms.

The next Commodity Classic is scheduled for March 10-12, 2022, in New Orleans, Louisiana.



USDA Invests $285 Million to Improve National Forest and Grassland Infrastructure

Agriculture Secretary Tom Vilsack today announced the U.S. Department of Agriculture will invest $285 million to help the Forest Service address critical deferred maintenance and improve transportation and recreation infrastructure on national forests and grasslands.

This $285 million investment is made possible by the newly created National Parks and Public Land Legacy Restoration Fund, established in 2020 by the Great American Outdoors Act. These funds will allow the Forest Service to implement more than 500 infrastructure improvement projects essential to the continued use and enjoyment of national forests and grasslands.

“Our forests and grasslands are one of our nation’s greatest treasures and one of the most effective natural carbon captures that exist to help combat the effects of climate change,” said Secretary Vilsack. “Millions of people each year enjoy forests and grasslands, and these investments will promote public-private partnerships, tourism and recreation, protect public lands, and ensure our national forests are accessible to all. These investments will also serve as a catalyst for rural economic development and employment opportunities.”

Project investments in 2021 will improve recreation facilities, visitor centers, dams and trails. Other projects aim to increase public access by restoring and repairing roads, trails, bridges, tunnels and parking areas.

The Great American Outdoors Act authorizes funding under the Legacy Restoration Fund annually through fiscal year 2025. Forest Service economists estimate that projects funded with these dollars will support roughly 4,400 jobs and contribute $420 million to the gross domestic product.

Forest Service infrastructure supports more than 300 million recreationists, first responders such as wildland firefighters, and other users of Forest Service roads. Each year, visitors to the national forests contribute almost $11 billion to the U.S. economy, which sustains more than 148,000 jobs.

More information about these projects will be posted this week to www.fs.usda.gov/managing-land/gaoa.