Friday June 25 Cattle on Feed Report + Ag News

 NEBRASKA CATTLE ON FEED UP 1%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.44 million cattle on feed on June 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 1% from last year. Placements during May totaled 390,000 head, down 5% from 2020. Fed cattle marketings for the month of May totaled 465,000 head, up 31% from last year. Other disappearance during May totaled 15,000 head, unchanged from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 620,000 head on June 1, 2021, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 2% from May and down 3% from June 1, 2020. Iowa feedlots with a capacity of less than 1,000 head had 510,000 head on feed, down 3% from last month and down 11% from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,130,000 head, down 2% from last month and down 7% from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during May totaled 67,000 head, down 34% from April and down 11% from last year. Feedlots with a capacity of less than 1,000 head placed 49,000 head, down 12% from April but up 17% from last year. Placements for all feedlots in Iowa totaled 116,000 head, down 26% from April and down 1% from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during May totaled 74,000 head, down 24% from April but up 42% from last year. Feedlots with a capacity of less than 1,000 head marketed 61,000 head, down 10% from April but up 27% from last year. Marketings for all feedlots in Iowa were 135,000 head, down 19% from April but up 35% from last year. Other disappearance from all feedlots in Iowa totaled 6,000 head.

Note: This report is a combination of estimates from the USDA Cattle on Feed survey for Iowa feedlots with a capacity of 1,000 or more head and the Iowa Department of Agriculture and Land Stewardship-funded Cattle on Feed survey for Iowa feedlots with a capacity of less than 1,000 head.



United States Cattle on Feed Up Slightly

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on June 1, 2021. The inventory was slightly above June 1, 2020. This is the second highest June 1 inventory since the series began in 1996.

Placements in feedlots during May totaled 1.91 million head, 7 percent below 2020. Net placements were 1.84 million head. During May, placements of cattle and calves weighing less than 600 pounds were 355,000 head, 600-699 pounds were 255,000 head, 700-799 pounds were 470,000 head, 800-899 pounds were 501,000 head, 900-999 pounds were 235,000 head, and 1,000 pounds and greater were 95,000 head.

Marketings of fed cattle during May totaled 1.87 million head, 23 percent above 2020. Other disappearance totaled 67,000 head during May, 2 percent above 2020.



LENRD: Healthy soils positively impact groundwater quality

Soil is one of the most essential natural resources.  It affects every part of our day, from the food we eat, the water we drink, and the air we breathe.  Soil health is the capacity of the soil to function as a living ecosystem, nourishing plants and sustaining animals and people.

At their June meeting, the Lower Elkhorn Natural Resources District (LENRD) Board of Directors learned more about soil nutrients through a presentation from the University of Nebraska’s Dr. Chittaranjan Ray, Professor and Director of the Nebraska Water Center and Michael Kaiser, Assistant Professor of Soil and Water Sciences.  The pair discussed many soil chemistry concepts and answered questions.

Soil becomes healthier when organic matter levels increase (carbon sequestration), water infiltration rates improve (reducing erosion, runoff, and flooding), and the soil biological life is diverse and plentiful.

Soil nutrients exist as positively charged or negatively charged ions when dissolved.  The positively charged ions are known as cations and the negatively charged ions are known as anions.

Cation Exchange Capacity (CEC) is a soil chemical property.  It is the ability of the soil to hold or store cations.  When soil particles are negatively charged, they attract and hold on to cations (positively charged ions) like calcium, potassium, and sodium, stopping them from being leached down the soil profile.  On the other hand, negatively charged soil particles repel anions (negatively charged ions).  The implication of this is that negatively charged nutrients such as nitrate, sulphate, and chloride are vulnerable to leaching down the soil profile.

LENRD Assistant Manager, Brian Bruckner, said, “It is often assumed that the CEC value can generally be utilized when considering the timing and amount of nitrogen that can be applied as fertilizer, but as Professor Kaiser illustrated in his presentation, there are a host of variables outside of our control which influence the soil’s ability to retain the nitrogen within the rootzone for later utilization by plant roots.”

In other action, the board rejected all bids for the Willow Creek Dam Pore Pressure Mitigation – Phase 1 Project and authorized the general manager to sign a contract with Dietz Well for completion of 2 test holes and 2 production wells at the Willow Creek Dam, southwest of Pierce, not to exceed $92,240.00.

The board also ratified the LR23 report for the Nebraska Legislature.  The progress report was requested from the LENRD board and was submitted on June 21st.

In other business, the board accepted the proposal from the University of Nebraska to conduct certain research related to the characterization of groundwater nitrate using stable isotope analysis within the district and authorized the general manager to sign the project agreement, not to exceed $17,712.00.

The board also approved the salary adjustments for the cost of living at 5.60% and approved the step and grade changes proposed by management for Fiscal Year 2022.

Anthony Wisnieski of Norfolk was sworn in to fill the vacant seat in Subdistrict 3, due to the retirement of Bob Huntley of Norfolk.  Anthony is originally from Dodge and moved to Norfolk in 1996.  He is part owner of Building Green Structures and is currently on the Energy Panel Structures Dealer Advisory Board.  Anthony’s priorities include providing clean and safe drinking water for future generations.

To learn more about the 12 responsibilities of Nebraska’s NRDs and how your local district can work with you and your community to protect your natural resources, visit lenrd.org and sign up for our monthly emails.  The next board of directors meeting will be Thursday, July 22nd at LENRD office in Norfolk at 7:30 p.m. and on Facebook Live.



Nebraska Producer Will Perform National Anthem During NCBA Annual Convention

The National Cattlemen’s Beef Association (NCBA) is pleased to announce that Carrie Behlke is the winner of the 8th annual National Anthem Contest, sponsored by Norbrook. Behlke will sing the National Anthem at the 2021 Cattle Industry Convention in Nashville, Tenn., during the Opening General Session on Aug. 10, as well as at the Cowboy’s Night at the Opry event on Aug. 12.

Behlke grew up in Ohio where her family raised Charolais cattle, and she served as an Ohio FFA Officer and was Queen for the Ohio Cattlemen's Association. After college, she worked for the American Shorthorn Association and later for The Show Circuit magazine. Today, Behlke, her husband and two daughters split their time between the family ranch in southwest Nebraska where they raise cattle and corn, and High River, Alberta, where her husband is a feedlot veterinarian. In addition to being a cattlewoman, she is a professional quilter and does freelance graphic design work.

Behlke was raised in a musical family and grew up performing in church. She began studying piano at the age of seven and started playing the guitar and singing in high school. As a college student her part-time job was teaching piano lessons, and she also played the trumpet in a jazz band.

“I’m looking forward to celebrating my Midwest roots and sharing my pride as an American by singing the National Anthem in August,” says Behlke. “My great love is classic country music, so I’m particularly excited to be singing in Nashville at the Opry, which is hallowed ground to me.”

As the winner of the National Anthem Singing Contest, Behlke will receive round-trip airfare for two to Nashville, convention registration for two, a hotel room for four nights during convention, and western wear from Roper and Stetson. Online voting by the public determined the winner.

The annual Cattle Industry Convention & NCBA trade show is the oldest and largest convention for the cattle business. This year’s convention is Aug. 10-12, and features meetings and events from the NCBA, Cattlemen’s Beef Board, CattleFax, National Cattlemen’s Foundation and the American National CattleWomen. For convention information and to register, visit https://convention.ncba.org/.



New Beef Processing Facility Construction Planned in Western Iowa

Construction is planned to begin in spring 2022 for a $325 million federally-inspected beef processing facility in Mills County, Iowa to process 1,500 head per day, employ 750 workers and an annual economic impact is estimated at $1.1 billion.

Chad Tentinger, founder and owner of TenCorp Inc., project developer and an Iowa cattle producer, wants to provide a market for cattle raised by smaller, independent cattle producers. Cattlemen’s Heritage is a newly formed corporation and with its roots in livestock production, plans to open the plant in late 2023.

The facility will be situated on the Mills-Pottawattamie County line in western Iowa, fronted by Interstate 29, giving access to infrastructure and a good labor force. Ernie Goss with Goss & Associates conducted the economic impact study of the Cattlemen’s Heritage Beef Plant. He says the facility will serve as a game changer for the surrounding counties by providing more than 3,300 jobs through construction and have a total impact of $6.4 million.

Iowa Secretary of Agriculture Mike Naig championed the cause for providing more market access for Iowa’s cattle producers, as well as new jobs and the expansion of Iowa’s agriculture. “Creating more economic value to Iowa agriculture and the state’s livestock industry will help bring the next generation back to the farm,” Naig says. “This is important for the success and sustainability of the ag community and our state’s economy.”

Tentinger says Cattlemen’s Heritage wants to be able to help young farmers get into the cattle business and stay in the industry. The plant will start by harvesting about 800 head per day for the first several months and ramp up to 1,500 head per day by the end of the first year. A full workforce will be hired to be on hand when the plant opens.

The Iowa Cattlemen’s Association looks forward to the plant providing an opportunity to harvest cattle within the state of Iowa. “This facility will provide another market access for Iowa’s cattle producers with hopes of boosting cattle prices through competition and giving the state a needed economic boost for agriculture and the local area,” Matt Deppe, CEO of ICA says. “We look forward to having continued conversations with the Cattlemen’s Heritage group and how they can help our state’s cattle producers.”



Lawmakers Ask Biden Administration to Help Hog Farmers

Seventy lawmakers joined Sen. Chuck Grassley (R-Iowa) and Reps. Jim Hagedorn (R-Minn.) and Dusty Johnson (R-S.D.) in letters asking the administration to stop a recent court order from harming U.S. hog farmers. The letters call on Agriculture Secretary Vilsack and Acting Solicitor General Prelogar to appeal a recent federal district court striking down pork harvest facility line speeds allowed under the U.S. Department of Agriculture’s New Swine Inspection System (NSIS). The court order, set to go into effect on June 29, will lead to pork industry concentration and increased market power for plant operators at the expense of small hog farmers. The National Pork Producers Council (NPPC) is calling for a longer stay of the court order and/or waivers that would allow the six impacted plants to continue operating at NSIS line speeds until a long-term solution acceptable to all industry stakeholders can be established.

The court decision will result in a 2.5 percent loss in pork packing plant capacity nationwide, and more than $80 million in reduced income for small U.S. hog farmers, according to an analysis by Iowa State University Economist Dr. Dermot Hayes. According to Hayes, the impact will be alarmingly high in Michigan and other states where lost capacity will be as high as 25 percent.   

“We thank Sen. Grassley, Reps. Hagedorn and Johnson, and the 70 other members of Congress who signed onto this letter for their support of American hog farmers,” said NPPC President Jen Sorenson, communications director for Iowa Select Farms in West Des Moines, Iowa.

Sorenson added, “While the administration can appeal the court’s decision until the end of August, the damage to U.S. pork producers will be immediate. The operational changes impacted plants will be required to implement on June 29 will take time to unwind even if an appeal is filed before the end of August. It’s imperative that the administration act now to preserve industry competition and the livelihoods of small hog farmers.”   

Pork industry economist Dr. Steve Meyer of Partners for Production Agriculture described the impact of the court’s decision as follows:

“The district court ruling reduces competition because the impacted plants will process fewer hogs, leaving more pigs available to other packers. Some of these hogs were purchased through negotiated trades, but others were procured through contract arrangements that may be altered or canceled in the face of lower capacity. Producers whose contracts are affected will likely have to accept lower values for their animals. Prices received by all producers may be reduced due to decreased competition. Impacted producers may also incur additional freight costs to move hogs to distant plants with available capacity. The situation will get significantly worse in the fourth quarter when the hog supply reaches its seasonal high.”

The NSIS, initiated during the Clinton administration and evaluated at five pilot plants over 20 years, was approved for industry-wide adoption in 2019. NSIS modernized an inspection system that had remained unchanged for more than 50 years. At a time when the United States needs more pork harvest capacity, the court order will reduce plant capacity at six plants running at NSIS line speeds by as much as 25 percent. The five original NSIS plants have been safely operating for more than 20 years. The letters to the administration note that USDA data comparing worker injury data between 2002 and 2010 shows that the NSIS program led to fewer worker injuries over time and fewer injuries when compared to their non-NSIS counterparts.



UK INCREASES TARIFF RATE QUOTAS FOR PORK

Thanks in part to the National Pork Producers Council’s advocacy efforts, the United Kingdom recently increased its tariff-rate quotas (TRQ) for pork that will provide greater market access for U.S. producers. As part of the UK’s recent exit from the European Union, both parties had to agree on how to address TRQs for numerous agricultural products, including pork. NPPC worked closely with the U.S. Trade Representative to ensure the interests of U.S. pork producers were well represented.

The U.K. and E.U. ultimately decided the following: a) UK TRQ: 1,349 metric tons (MT) for meat of swine, fresh, chilled or frozen, with or without bone.  b) UK TRQ: 29,545 MT for meat of swine, fresh, chilled or frozen, boneless loins and hams; and c) 4,922 MT U.S. only TRQ: meat of swine, fresh, chilled or frozen, boneless loins and hams.  

NPPC appreciates the expanded access for U.S. pork into the U.K., and will continue to advocate for greater market growth when the U.S. and U.K. restart free trade agreement discussions.



 Fischer Disappointed By Supreme Court Biofuels Ruling

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement after the U.S. Supreme Court overturned a ruling by the U.S. Court of Appeals for the 10th Circuit, which had struck down three small refinery exemptions that were deemed improperly issued by the Environmental Protection Agency (EPA):

“I am extremely disappointed by today’s Supreme Court ruling, which comes on the heels of reports that the Biden administration is considering reducing blending obligations for refineries. These small refinery exemptions and the opaque process by which they are issued are unfair to the hardworking farmers and ethanol producers in the Heartland. When considering the 2021 and 2022 Renewable Volume Obligations as well as the 70 pending SREs, I strongly urge the Biden administration to uphold its commitment to strengthen and protect the integrity of the Renewable Fuel Standard.”

More information:
Today’s 6-3 Supreme Court ruling overturned the decision by the 10th Circuit which had stated that the EPA can only grant an extension of a waiver to a refinery, not grant new standalone waivers, and that the “disproportionate economic hardship” suffered by the refinery must be caused by the Renewable Fuel Standard (RFS). For more information on the decision, click here.

Senator Fischer has taken a leading role in pushing for more transparency in the small refinery exemption process. Last month, she reintroduced bipartisan legislation with Senator Tammy Duckworth (D-Ill.) which would provide more certainty for rural America. It would require small refineries to petition for RFS hardship exemptions by June 1st of each year. This change would ensure that EPA properly accounts for exempted gallons in the annual Renewable Volume Obligations (RVO) it sets each November. Read about that bill here.

Last spring, Senator Fischer led 16 of her Midwest colleagues in writing a letter to President Trump which encouraged EPA not to appeal the 10th Circuit Court decision, and the Biden administration agreed with this approach.  



House Biofuels Caucus Statement on Supreme Court’s Renewable Fuel Standard Decision and the Future Integrity of the RFS

Today, the co-chairs of the bipartisan House Biofuels Caucus—Rep. Adrian Smith (NE-03), Rep. Rodney Davis (IL-13), Rep. Dusty Johnson (SD-AL), Rep. Cindy Axne (IA-03), Rep. Angie Craig (MN-02), and Rep. Mark Pocan (WI-02)—released the following statement after the Supreme Court weakened the RFS at the expense of family farmers and biofuels producers in rural America in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association:

“We are concerned with the potential consequences of today’s Supreme Court’s decision, which could have a devastating impact on farmers and producers who are still fighting to recover from the volatile markets, unpredictable weather, and trade instability of the past several years. However, we are encouraged that the Environmental Protection Agency had reversed its position on small refinery exemptions prior to the Supreme Court’s final opinion, and we urge the Administration to apply the same logic in deciding not to grant future waivers. Today’s decision underscores the importance of the RFS Integrity Act; we will continue to fight for the enactment of this legislation to support family farmers and the clean biofuels industry.”

The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels by mandating that oil refiners blend billions of gallons of ethanol and other biofuels into their fuel each year or buy credits from those that do. Under the previous Administration, the EPA greatly expanded the number of small refinery waivers that were issued while undermining transparency and accountability in the SRE process. By issuing dozens of waivers between 2016 and 2020, the EPA saved the oil industry hundreds of millions of dollars while threatening rural economies and harming the biofuels industry at large.

In 2018, the Renewable Fuels Association and other groups filed a lawsuit challenging the Administration’s issuance of small refinery exemptions to three refineries in Oklahoma, Wyoming and Utah. Last year, the 10th Circuit Court of Appeals ruled in favor of the RFS groups, declaring that the Environmental Protection Agency did not have the authority to extend an economic hardship waiver to any refinery that had not maintained a continuous string of annual waivers from the start of the RFS program. The court also held that in granting the waivers, EPA ignored its own studies that found refiners are largely able to pass through to customers their cost of acquiring Renewable Identification Number (RIN) compliance credits. Last year, several refineries, including HollyFrontier Cheyenne Refining appealed the original ruling to the Supreme Court.



Ricketts: U.S. Supreme Court Decision on Ethanol Waivers Hurts Farm Families

Today, Governor Pete Ricketts issued a statement following news that the U.S. Supreme Court had overturned a decision by the Tenth Circuit Court of Appeals on small refinery exemptions from ethanol blending requirements.

“Today’s decision by the U.S. Supreme Court on small refinery exemptions is disappointing and hurts farm families across the state,” said Governor Ricketts.  “Regardless of the Court’s decision, the U.S. Environmental Protection Agency can still take steps to enforce a robust Renewable Fuel Standard.  I strongly urge President Biden and his administration to take clear steps to support our farm families, and to stop the broad use of waivers.”



ICGA Disappointed by Supreme Court Decision on RFS Exemptions

The U.S. Supreme Court voted against the 10th Circuit Court decision from last January that found refiners can only apply for an extension of an exemption from the Renewable Fuel Standard (RFS) volume obligation if they have continuously received refinery exemption extensions every year.

Iowa Corn Growers Association President Carl Jardon and farmer from Randolph, Iowa made the following statement:

“We are extremely disappointed the Supreme Court didn’t uphold the 10th Circuit Court ruling on eligibility to request RFS refinery exemption extensions. However, Iowa Corn will not stop fighting to uphold the RFS as we know it is the most effective energy policy on the books today to improve our air quality, reduce our carbon footprint and increase the use and availability of biofuels for consumers. Working with the Biden Administration and our biofuels champions in Congress and the State of Iowa, ICGA will continue to fight every day for corn farmer profitability and the integrity of the RFS as a top priority.”  



IRFA Disappointed by Supreme Court Decision on RFS Exemptions

Today on a 6 to 3 vote, the U.S. Supreme Court struck down the U.S. 10th Circuit Court decision from last January that found refiners can only apply for an extension of an exemption from the Renewable Fuel Standard (RFS) volume obligation if they have continuously received refinery exemption extensions every year.

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

“We are extremely disappointed the Supreme Court didn’t uphold the 10th Circuit Court ruling on eligibility to request RFS refinery exemption extensions. I am not a lawyer, but it sure seems like the 10th Circuit Court got it right when they determined that a refinery can’t extend something it no longer has. However, it is important to remember this case only applied to one of the three major findings from the 10th Circuit Court. Today’s decision allows refiners to apply to extend RFS exemptions that have lapsed. But this case did not impact the 10th Circuit’s ruling that refiners must still prove economic harm directly related to compliance with the RFS. Just as importantly, the 10th Circuit also found that EPA cannot use RIN costs as a cause of economic harm while simultaneously admitting RIN costs are recovered in the refiner’s crack spread. As the Biden EPA has pledged to follow the 10th Circuit Court ruling, today’s decision allows refiners to request an RFS exemption extension, but it does not make it easier for refiners to actually receive one. We fully expect the Biden EPA to keep their commitment to the RFS and to apply the 10th Circuit Court standards relating to economic harm, and as a result, to deny the vast majority of RFS exemption extension requests that are pending or that will be submitted in the future.”

 

IFBF on U.S. Supreme Court ruling regarding small refinery exemptions
Iowa Farm Bureau Federation President Craig Hill

“While we are disappointed in the U.S. Supreme Court’s ruling today, we appreciate that the guardrails on biofuel waivers established by the 10th Circuit Court of Appeals remain intact.  This ruling is a blow for Iowa agriculture and our renewable fuel industry, which is a huge economic driver in our state.  The most important thing going forward is for the Biden administration to properly implement the Renewable Fuel Standard (RFS) as it was written by Congress.  President Biden and EPA Administrator Regan have both expressed support for the RFS, and it is imperative to Iowa farmers that the administration continue that pledged support moving forward and take a clear stance against small refinery exemptions to limit the negative impacts this ruling will have on Iowa agriculture.”



Biofuels Coalition Disappointed in Supreme Court Decision to Overturn Tenth Circuit’s RFS Refinery Exemption Ruling

A coalition of renewable fuel and farm groups expressed “extreme disappointment” in today’s U.S. Supreme Court decision overturning a 2020 appellate court ruling that struck down three improper small refinery exemptions granted by previous EPA administrators. However, because certain elements of the appellate court ruling were left unchallenged and were not reviewed by the Supreme Court, the groups remain optimistic that the Biden administration will discontinue the past administration’s flagrant abuse of the refinery exemption program.

Today’s decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol, working together as the Biofuels Coalition. The petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS.

In January 2020, the Tenth Circuit decided that EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. According to the Circuit Court ruling, “the statute limits exemptions to situations involving ‘extensions,’ with the goal of forcing the market to accept escalating amounts of renewable fuels over time.” While the Supreme Court failed to affirm this portion of the Tenth Circuit decision, the Biofuels Coalition pointed out that the appellate court also ruled that EPA’s exemption decisions must reconcile the agency’s consistent findings that all refineries recover the costs of compliance with the RFS, and that EPA may only use hardship caused by the RFS to justify granting exemptions. Despite today’s Supreme Court decision, EPA must still resolve those other aspects of the Tenth Circuit ruling.

“Nearly a year and a half ago, the Tenth Circuit handed down a unanimous decision that was ultimately adopted by the very agency we took to court in the first place,” coalition members said. “While we are extremely disappointed in this unfortunate decision from the Supreme Court, we will not stop fighting for America’s farmers and renewable fuel producers. Further, we are optimistic that other elements of the Tenth Circuit decision, which were not reviewed by the Supreme Court, will compel the Biden administration and EPA’s new leadership to take a far more judicious and responsible approach to the refinery exemption program than their predecessors did.”

Irrespective of today’s decision, the Biofuels Coalition thanked President Biden and EPA Administrator Regan for taking swift action to rein in the previous administration’s mismanagement of the small refinery exemption program. After carefully reviewing the issue, new EPA leadership in February reversed the agency’s previous position and announced support for the Tenth Circuit decision. In April, EPA decided to revoke three last-minute refinery exemptions granted the day before President Biden’s inauguration; and in May, EPA announced it would cooperate with a Government Accountability Office investigation into the past administration’s adjudication of small refinery exemptions.

As of today, 70 small refinery exemption petitions remain pending with EPA, for the compliance years 2011-2020.



 Soy Growers Frustrated Following SCOTUS Decision, Call on Biden Administration for Help

Different day, same small refinery exemption (SRE) woes. Soy growers are frustrated following a Supreme Court decision that overturns a 10th U.S. Circuit Court of Appeals ruling that found the Environmental Protection Agency had overstepped its authority in granting certain Renewable Fuel Standard (RFS) blending requirement exceptions to small refineries.

Now, those frustrated farmers are asking the Biden administration to step up and help.

Kevin Scott, soybean farmer from Valley Springs, South Dakota, and ASA president said, “This just means that the Biden administration needs to administer the RFS in a stable and predictable manner that achieves the biofuel-blending, greenhouse gas-reducing benefits that Congress intended when it passed the RFS.”

“SREs should be issued to small refiners only when the economic viability of a refiner is threatened solely because of the RFS, and any gallons exempted can be spread out among others to ensure that biofuel blending targets truly are met,” he adds.

Increased use of biodiesel and other renewable diesels reduce greenhouse gas emissions by an average of 74% compared to petroleum diesel, providing a proven and immediately available method to take meaningful steps to address climate change. ASA urges the Biden administration to significantly increase renewable fuel obligations for 2021, 2022, and beyond.



Growth Energy Statement on SCOTUS HollyFrontier v. RFA Opinion

Today, the Supreme Court of the United States delivered an opinion in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association, which overturned the 10th Circuit Court of Appeals’ decision that in order to qualify for a hardship exemption under the Renewable Fuel Standard, a small refinery must have received uninterrupted, continuous hardship exemptions for every year since 2011. Growth Energy CEO Emily Skor released the following statement in response:

“The Supreme Court disagreed with the lower court’s view of extensions, but today’s decision does nothing to change the 10th Circuit’s ruling that exemptions cannot be granted when refiners cannot properly trace their hardship to compliance with the Renewable Fuel Standard (RFS),” said Skor. “In the past, the biofuel industry has looked to the courts to halt abuse. Today, new leaders at the Environmental Protection Agency have shown a willingness to defend the RFS, most recently by reversing three improperly granted exemptions. We look forward to working with the Biden administration to keep a lid on exemptions, further strengthen the RFS, and fast-track our progress toward decarbonization. Engine smart and earth kind biofuels are vital to achieving the nation’s climate goals.”



NBB Disappointed in Supreme Court Reversal on SREs

Today, the National Biodiesel Board expressed dismay at the Supreme Court's majority ruling on small refinery exemptions in the case HollyFrontier v RFA. In a divided opinion, the Court reversed one portion of a January 2020 US Court of Appeals for the 10th Circuit decision on these exemptions. The 10th Circuit decision still requires the Environmental Protection Agency to consider whether the Renewable Fuel Standard itself causes "disproportionate economic harm" to a small refinery requesting exemption and account for its own evidence that refineries recoup the costs of RFS compliance.

Kurt Kovarik, NBB's Vice President for Federal Affairs, stated, "The Supreme Court decision is dismaying because it leaves uncertainty about when EPA may offer exemptions to small refineries. These exemptions harm biodiesel and renewable diesel producers when they reduce demand for advanced biofuels. EPA has provided multiple ways for refiners to meet the Clean Air Act's RFS requirements, including an outsized bank of reserve RIN credits. The agency must issue the 2021 RFS rules as soon as possible and ensure that RFS volumes it sets are met, with full accounting for any small refinery exemptions in plans to grant."

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.



USDA Amends the National List for Organic Livestock and Handling

The Organic Foods Production Act created the National List of Allowed and Prohibited Substances (National List) as a tool for managing the substances used in organic production over time. In general, natural substances are allowed in organics and synthetic substances are prohibited. The National List identifies the limited exceptions to these general rules. The National List also identifies nonagricultural and nonorganic agricultural substances (ingredients) that may be used in organic handling. Changes to the National List require a National Organic Standards Board (NOSB) recommendation and USDA rulemaking, a process that provides multiple opportunities for public comment.

The USDA today published a final rule in the Federal Register amending the National List based on public input and the April 2019 NOSB recommendations. This final rule provides additional options for organic farms and businesses, by adding three substances to the list of substances allowed for organic production and handling.

The final rule allows:
    Oxalic acid as a pesticide for use in apiculture.
    Nonorganic pullulan for use in dietary supplements with “made with organic” claims (capsules and tablets).
    Collagen gel as a casing for organic products like sausages.

This final rule is effective July 26, 2021.



USDA, FCC, and NTIA Announce Interagency Agreement to Coordinate Broadband Funding Deployment

Today, the U.S. Department of Agriculture (USDA), the Federal Communications Commission (FCC), and the National Telecommunications and Information Administration (NTIA) announced an interagency agreement (PDF, 274 KB) to share information about and coordinate the distribution of broadband deployment federal funds. In accordance with the Broadband Interagency Coordination Act, the respective Cabinet and agency leaders announced that their agencies will consult with one another and share information about the distribution of new funds from the FCC’s high-cost programs that support broadband buildout in rural areas, the USDA’s Rural Utilities Services grant and loan programs, and programs administered or coordinated by NTIA.

“Generations ago, the federal government recognized that without affordable access to electricity, Americans couldn’t fully participate in modern society and the modern economy. Broadband internet is the new electricity. It is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected,” Agriculture Secretary Vilsack said. “This is why, under the leadership of President Biden and Vice President Harris, USDA remains committed to being a strong partner with rural communities and our state, Tribal, and federal partners in building ‘future proof’ broadband infrastructure in unserved and underserved areas so that we finally reach 100 percent high-speed broadband coverage across the country.”

“The last fifteen months demonstrated like never before that broadband is no longer a luxury, but a necessity. Congress rightfully funded broadband deployment at levels we’ve seldom seen in recent years in response to the pandemic,” said FCC Acting Chairwoman Jessica Rosenworcel. “In order to be good stewards of funds supporting these projects, I’m proud to announce with my colleagues that the FCC, NTIA, and USDA will strengthen our coordination to ensure that we make the most effective use of these new funds. I thank Secretary Vilsack and Acting Assistant Secretary Remaley for their leadership and partnership. Working together, we’ll be better able to meet our shared goal of getting 100 percent of Americans connected to the high-speed internet access they need to thrive.”

“Access to reliable, affordable high-speed broadband is critical to the economic well-being of communities and small businesses across America. Today’s announcement lays important groundwork for collaboration between agencies to ensure the federal government’s efforts to expand broadband access are as effective and efficient as possible, reaching every corner of the country,” said U.S. Secretary of Commerce Gina M. Raimondo. “President Biden has made it clear that bringing affordable, reliable, high-speed broadband to every American is a priority, and we can make it a reality through the historic investments in the American Jobs Plan. I want to thank Acting Chairwoman Rosenworcel and Secretary Vilsack for their continued leadership on our shared goal of connecting every American and look forward to continuing to work alongside them on this issue.”

As part of the signed Agreement, each federal agency partner will share information about existing or planned projects that receive funding from the previously mentioned federal funding sources. Each partner will also, upon request, identify entities providing broadband service in a specified geographic area; the levels of broadband service in that area, including broadband speeds and technologies deployed; the geographic scope of broadband service in that area, each entity in that area that has or will receive funds from these programs. The agreement also requires the federal agency partners to consider basing the distribution of funds from the programs on standardized broadband coverage data. The agreement is effective at the date of its signing, June 24.