An
informational website sponsored by the Kansas Corn Growers Association,
Kansas Corn Commission and Kansas Grain Sorghum Producers Association
Kansas feedgrain producers provide
both corn and grain sorghum for feed for our state's strong livestock
industry, and for feedstock for our state's growing ethanol industry.
Kansas nearly doubled its feedgrain production in 2007, producing 730
million bushels. In 2008, production remained over the 700 million
bushel mark. Corn
producers are using new technology to produce more corn on the same
amount of acres while improving our ability to conserve precious
resources. Grain sorghum, known for its versatility and ability to
perform well even in the driest of conditions, plays an important role
in the livestock and ethanol industries throughout the High Plains. The
grains are used interchangeably in Kansas ethanol plants. A third of
the grain used to make ethanol becomes distillers grains, a valuable
coproduct that is a high-nutrient livestock feed. The Kansas feedgrain,
livestock and ethanol industry are interdependent and working together,
our industries have a promising future. This web page was created to
help address the issues and provide facts regarding the use of
feedgrains in ethanol production.
THANKS FOR JOINING US AT THE HUTCHINSON COOP on Thursday, March 26
1200 W. 4th, Hutchinson, KS to celebrate the opening of its new
ethanol blender pumps offering E10, E20, E30 and E85 Fuels!!
From the
Corn Farmers Coalition: Director’s
Cut: We Hate To Say It, But Here Goes: We Told You So
The newspaper headline shrieked “Ethanol policies fuel food-price rise.”
And they did, according to a report by the nonpartisan Congressional
Budget Office.
All of one-tenth; maybe one-sixth tops.
So: Of last year’s 5.5 percent jump in food prices, higher prices for
corn, which is used to make ethanol, accounted for about half a
percentage point.
Huge news.
Yes, last year’s jump in food prices was the biggest in almost 20 years,
says the federal Agriculture Department. And undoubtedly higher food
prices cause hardship in our sick economy. It’s clear, as the
Congressional Budget Office says in its report, that it’s getting more
expensive to feed the poor through government programs such as food
stamps.
But blaming corn is just plain dumb. It’s already been tried: Last year
businesses that compete with ethanol for corn — especially grocery
manufacturers — and competitors to ethanol (the big oil companies)
invented a corn shortage and then tried to blame ethanol for it. They
hoped to make Congress back off its support for making more of the
renewable fuel every year.
But that was a lie, and Congress saw through it. Last year actually saw
the second-largest corn crop on record. What’s more, the corn we eat in
the form of corn on the cob and creamed corn and the rest is about 1
percent of the corn crop. (The rest is industrial corn that goes to
feeding livestock, ethanol, exports and chemicals.)
Last year’s astronomical oil prices, in fact, were what really pushed up
food prices, according to the experts. And with lower oil prices this
year, the increase in food prices is actually expected to drop to as
little as a 3-percent increase, according to an authoritative
Agriculture Department survey.
(Meanwhile, ethanol, by expanding the fuel supply, is cutting our
dependence on foreign oil and keeping gas prices lower.)
One thing that is getting lost in all this is that, last year’s price
spike aside, ethanol has essentially pushed the price of corn up to —
gasp! — about what it costs to grow. And with market’s paying farmers
for their crops, the government is paying out fewer counter-cyclical
supports.
But that’s a discussion for another day. For
now, the new study CBO proves one thing: Ethanol isn’t anywhere near the
main reason for more expensive food. And to suggest otherwise is a lie.
NCGA Applauds CBO Findings: Ethanol
Accounts for Only a Fraction of Food Price Increases
ST. LOUIS (April 9, 2009) -- National Corn Growers Association (NCGA)
President Bob Dickey released the following statement on the
Congressional Budget Office’s April 8 report, “The Impact of Ethanol Use
on Food Prices and Greenhouse-Gas Emissions:”
“We applaud this report, the next chapter in a growing narrative that
shows ethanol is not principally responsible for higher food prices
despite what food companies have tried to make consumers believe during
the past 12 to 18 months.
“The report found that the increased use of ethanol accounted for 0.5 to
0.8 percentage points out of the 5.1 percent increase in food prices
between April 2007 and April 2008, representing 10 to 15 percent of
total food price increases.
“We note that the impact of higher energy costs on food prices
represented 36 percent of the overall food price increase. We hope that
those who are truly concerned about increased food prices will look to
those causes that have played a more significant role, and join grocers
and others who are holding food manufacturers accountable for increased
food prices at the same time commodity prices – even those for energy –
have dropped.”
The report is available for download at the Congressional Budget Office
Web site, http://www.cbo.gov
Updated March 3, 2009
What's Renewable to You? E85 Challenge Brings Around 200 KSU Students to
Manhattan COOP Fuel Station for Free Fillup!
KSU
Students with a student ID got a free tank of E10 or E85 on Monday,
March 2 at the Manhattan Coop, The
Renewable Fuels
Association along with the Kansas Corn Commission hosted the opening
event for the E85 Challenge. After filling up with ethanol blended fuel
and a free hot dog lunch, many students opted to cut a video of
"What's Renewable to You?" The focus of the effort is to start a
dialogue on college campuses about renewable fuels like ethanol. Visit
e85challenge.com to participate on line. Enter the video contest and be eligible to win an Apple Macbook or one of several
500GB Passport hard drives. For contest details, visit
e85challenge.com.
Ethanol Promo Monday March 2 in Manhattan! The Wildcat Free for All!
Join us from 11 a.m. to 1 p.m. at the Manhattan Coop, 3384 Excel Road, just
off Highway 24 east of Manhattan for great prices on ethanol blended
fuels and free lunch!
Attention
KSU students. Bring your student ID to the Manhattan Farmers Cooperative
and get a FREE fill-up—with either E85 (85% ethanol, 15% gasoline for
flex-fuel vehicles) or E10 (10% ethanol, 90% gasoline for all gas
powered vehicles). No student ID? Anyone can get E85 for 85 cents or E10
for a buck. And don’t forget the FREE lunch. We will be serving hot
dogs, chips and drinks. While you’re there, participate in a 30-second
video contest and be eligible to win an Apple Macbook or one of several
500GB Passport hard drives. For contest details, visit
e85challenge.com.
This
event is sponsored by the Renewable Fuels Association and the Kansas
Corn Commission.
Updated February 17, 2009
Worth Reading: RFA Bob Dineen blogs on the Huffington Post
Ethanol Growth Unites OPEC
and Environmental Fringe At the same time that a major new report concluding that the
United States could produce 90 billion gallons of renewable ethanol a
year was released, Saudi Arabia's oil minister attacked biofuels for
undermining oil development and fringe U.S. environmental groups
announced their preference for continued gasoline consumption over the
use of ethanol. Who would have thought it? . . . . Read Dineen's blog
here:
Despite bankruptcies and attacks by environmentalists, the outlook for
ethanol is improving, according to the chairman of USDA’s World
Agricultural Outlook Board.
USDA’s February corn outlook says ethanol blender and producer margins
have recently improved and weekly production of gasoline blends with
ethanol is on the rise. “We’ve seen relatively lower corn prices as of
late and even producers now are going to go back in the black as opposed
to being in the red before,” Outlook Board Chairman Gerald Bange said.
“Whereas just a few weeks ago there was no real incentive to produce
ethanol using either corn or sorghum, what we’re seeing now is somewhat
positive returns for the production of ethanol. So things are looking a
little bit better in the ethanol industry.”
Bange says the current blending credit is sufficient to provide a
positive margin for blending as well.
Updated February 11, 2009
Corn Ethanol is Here Today to Fuel U.S. Economy Now
The National Corn Growers
Association (NCGA) said that comments made today by the Environmental
Working Group and associated Grocery Manufacturers Association groups
are just another attempt to prevent the ethanol industry from decreasing
the United States’ dependence on foreign oil. NCGA further asserted that
there are many environmental benefits from corn ethanol and that corn
farmers continue to be good stewards of the environment.
“These environmental groups are stirring up fear for the American public
at a time when Americans are already struggling due to the faltering
world economy, job losses and high costs of food brought on by some food
companies’ record profits and greed,” said NCGA President Bob Dickey.
“The fact remains that ‘made in the U.S.’ corn ethanol is here -- and
available today -- to strengthen the U.S. economy, create new,
U.S.-based jobs and reduce our dependence on foreign oil. Wind and solar
power are good options for energy; however, these will take years to
have the same impact that ethanol is having now,” Dickey said.
“Furthermore, corn supply is ready and available for ethanol expansion
since corn growers have increased corn stock to 1.8 billion bushels.”
Recent studies, including the acclaimed University of Nebraska study
released earlier this year, show that ethanol has many environmental and
economic benefits, including:
• Ethanol production and use today reduces greenhouse gas emissions by
59 percent compared to gasoline.
• The production and use of 6.5 billion gallons of ethanol in 2007
displaced 228 million barrels of imported oil valued at $16 billion.
Ethanol experts expect those numbers to all increase in 2008.
• Ethanol has provided more than 260,000 jobs across the economy, with
more growth expected.
• Water use by ethanol plants has been reduced by 26 percent since 2001.
• America’s ethanol industry has added more than $34 billion of new
revenue for the federal government since 1978 and reduced America’s cost
of foreign oil by nearly $100 billion. This is a 5 to 1 return on
America’s investment in ethanol.
In January 2009, the “Field to Market” Keystone Alliance for Sustainable
Agriculture program issued a report providing the first-ever framework
for measuring agriculture sustainability.
The initial index shows that soil-loss efficiency trends have improved
substantially -- by 30 to nearly 70 percent -- for the four crops
evaluated. Energy use per unit of output is down in corn, soybean and
cotton production by nearly 40 to more than 60 percent. Irrigated water
use per unit of output has also decreased -- 20 percent to nearly 50
percent -- while carbon emissions per unit of output have dropped by
about a third for these three crops.
Specifically, corn has seen the following changes between 1987 and 2007.
• Land use: The amount of land needed to produce one bushel has
decreased 37 percent.
• Soil loss: Manageable soil loss per bushel of corn has decreased by 69
percent.
• Energy: The energy used to produce a bushel of corn has decreased by
37 percent.
• Climate impact: Corn production has seen a 30 percent decrease in
greenhouse gas emissions per bushel.
Updated February 5, 2009
NCGA: Minnesota Ethanol Study Is Faulty; Nebraska Study Much More
Valid A recent study by
the University of Minnesota that compares lifecycle emissions of
gasoline, corn ethanol and cellulosic ethanol is faulty because it does
not use realistic, comparable data sets, according to the National Corn
Growers Association. The report prematurely praises cellulosic ethanol
as the best fuel alternative when it comes to reducing greenhouse gas
and particulate-matter emissions despite the fact that it is years from
production and use – while corn ethanol is available and being used
today.
Another peer-reviewed study released in January, by the University of
Nebraska, found much more positive news when it came to greenhouse gas
emissions. Nebraska scientists analyzed the life cycles of corn-ethanol
systems accounting for the majority of U.S. capacity. They wanted to
estimate greenhouse gas emissions and energy efficiencies on the basis
of updated values for crop management and yields, biorefinery operation,
and coproduct utilization. The result: Direct-effect GHG emissions were
estimated to be equivalent to a 48-59 percent reduction compared to
gasoline, a twofold to threefold greater reduction than reported in
previous studies.
“First and foremost, this Minnesota study is continuing the bad trend of
comparing theoretical systems versus real world systems,” said NCGA
President Bob Dickey. “All assumptions made for the production and
processing of ‘biomass’ feedstocks for cellulosic ethanol have yet to be
validated and executed economically.
(read more)
Updated February 5, 2009
Renewable Fuels Association: Minnesota Ethanol Study Is Faulty
Food Prices Don't Follow Drops in Consumer Price Index
Data released by the U.S. Department of
Labor showed a 1.7 percent decline in the Consumer Price Index in
November, which is the largest decrease since 1932. Despite steep
decreases in things like energy and transporation, food prices continued
to increase. In response, Growth Energy released the following
statement:
"Once again, today's consumer price index showed a record plunge in
prices for consumers on everything except food. Astoundingly, despite
lows for everything else, large food manufacturers actually increased
their prices and continue to profit. With corn prices down 53 percent
from June and gas prices falling 47 percent below its July peak, it is
clear that ethanol is not the culprit for rising food prices. The real
driver of food prices is Big Food's desire to keep their profit margins
up at the expense of hard-working Americans who are facing difficult
times."
"Compared to November 2007, the cost of food at home was up an
incredibly high 7 percent. It's really unbelievable that, in this tough
economy, right before the holidays, Big Food producers are still
increasing their prices."
Growth Energy has a good web page on food prices that you can find by
clicking
here.
Updated November 20, 2008
Be INFORMED--NCGA Pools Ethanol Info on One Handy Page
U.S. corn growers are proud to work hard and be able
to meet the demand for corn for food, feed, fuel and fiber. We’re also
proud of the important role corn ethanol plays in reducing our nation’s
dependence on foreign oil, in helping protect the environment and in
boosting our nation’s economy. These resources were prepared to help you
understand the truth regarding ethanol’s positive impact.
Follow this link: NCGA
ETHANOL RESOURCES
Updated November 5, 2008
If High Grain Prices=High Grocery Prices,
Do Lower Grain Prices=Lower Grocery Prices?
NO!
Earlier this summer grain prices were on the way to historic highs. At
the same time, grocery prices were increasing and the Grocery
Manufacturers were blaming ethanol for high commodity prices that were
supposedly forcing food manufacturers to raise prices at the grocery
store checkout. Commodity prices make up less than 20 percent of the
total food price at the checkout, so even those larger corn price
increases played a very small role in higher grocery store prices.
Energy costs play a much greater role, especially in processing and
transportation of those groceries. While the ethanol industry provided
our growers with a strong market, it was not the main factor in higher
grain prices. There were a host of other factors, including increased
world demand due to weather and economic growth in countries like China
and India. Also, outside speculators had a big affect on the huge swings
we saw in the market this summer.
Now, as you know, grain prices have dropped. And energy prices have
dropped as well. But we are also noticing that grocery store prices have
NOT dropped. In fact, even though grain and energy prices have dropped,
members of the Grocery Manufacturers are beginning another effort to
blame high food prices on ethanol. In August the Grocery Manufacturers
leader said if the government relaxed the Renewable Fuels Standard,
grocery prices would be reduced immediately. The government didn’t’
relax the RFS, which the GMA blamed for higher corn prices. But now the
price of corn and other feedgrains have dropped by half. You have to
ask, if grain prices were to blame for higher grocery prices, why
haven’t those grocery prices come down? GMA’s goal remains to roll back
the Renewable Fuels Standard and ethanol production, even though it has
little to do with the prices Big Food is charging cash-strapped
consumers. Although the correlation of corn prices and ethanol are the
focus of GMA, this ongoing attack has far-reaching implications for all
feedgrain and ethanol producers.
The Kansas Corn Growers Association and National Corn Growers
Association and other groups are continuing efforts to make sure not only consumers, but
policy makers know the truth about these food and fuel issues. With corn
prices down, NCGA’s members want to know when GMA is going to keep its
end of the agreement and cut food prices to help economically strapped
Americans.
Updated October 30, 2008
SDA/DOE biofuels plan
favors breaking 'blend wall'
(FarmWeek)
\Last week, USDA and the
U.S. Department of Energy (DOE) went to the “wall,” urging efforts to
promote use of mid-level ethanol blends. As part of a new USDA-DOE
biofuels “action plan” aimed at reducing domestic gasoline use 20
percent over the next 10 years, the agencies related plans to work
toward “full nationwide penetration” of 10 percent ethanol, or E10.
At the same time, officials stressed the need to move past the current
federal E10 “blend wall” to allow E15, E20, and other mid-level blends.
“National market access for intermediate ethanol blends of gasoline ...
represent a critical pathway to meet the ‘20-in-10’ goal,” they stated.
Currently, intermediate blends can be used in “flex-fuel” vehicles
equipped to run on E85 (85 percent ethanol) gasoline. But limited
availability of E85 models and retail fuel infrastructure limit E85
market potential, and intermediate blends actually may offer improved
fuel efficiency.
Economist Ross Korves maintains breaking the blend wall is “probably the
biggest issue” in reaching long-term energy security goals. “Depending
on how big you think the (ethanol) market is, some time in early or
mid-2010, we’re going to max out — we’re going to have 80 or 90 percent
of the fuels at the E10 level, and there won’t be any more expansion
room,” Korves told FarmWeek. “Unless we go to E12 or E15, or you get a
huge increase in E85 — which isn’t going to happen — we’re going to run
into a much bigger blend wall than we’ve faced so far.”
Since August 2007, DOE has been studying the impact of intermediate
blends at its Colorado National Renewable Energy Laboratory and
Tennessee Oak Ridge National Lab. Scientists tested E15 and E20 in 13
vehicles and 28 small non-road engines, seeking data on engine
performance and durability and air quality.
“First round” results, released last week, showed most federally
regulated vehicle emissions with E15 or E20 were within normal
parameters, with no “statistically significant change” from use of
conventional gasoline. Tailpipe emissions were similar and, under normal
conditions, catalyst temperatures were largely unchanged in the 13 test
vehicles.
However, under full throttle, about half the cars exhibited slightly
increased catalyst temperatures compared to regular gas. Engine and
exhaust temperatures increased in the small engines, but the blends
appeared to have little or no impact on overall engine durability.
Updated October 26, 2008
Reuters: Ethanol No
Longer Seen as Big Driver of Food Price
ANALYSIS - Ethanol No Longer
Seen As Big Driver Of Food Price
CHICAGO - Heavy demand for corn from ethanol makers was seen as a key
driver of corn futures to record highs in June, but since then the sharp
decline of corn along with other commodities shows that belief was
mistaken. Corn is down about 50 percent from its record high in June,
even as the amount of the grain used to produce the renewable fuel in
the United States remained the same.
"The record high prices were a speculative bubble," said Stewart Ramsey,
senior economist for Global Insight, Philadelphia (www.globalinsight.com/)
"We had a lot of reasons for prices to go up and to go up a lot and
ethanol use was one of those," he added.
US food prices, which normally rise by about 2.5 percent a year, surged
by 4 percent in 2007, the biggest increase in 17 years. World food
prices jumped a stunning 40 percent, causing food riots, hoarding and
bread lines in some countries. The government has forecast that US food
prices will rise 5.5 percent this year and 4.5 percent in 2009. Chicago
Board of Trade corn futures set a record high $7.65 per bushel for a
spot contract at the end of June. By the spot contract's price had been
halved to $3.85 per bushel.
The use of corn to produce ethanol in the United States does add to the
price of the grain. Analysts, including some in the ethanol sector, say
ethanol demand adds about 75 cents to $1.00 per bushel to the price of
corn, as a rule of thumb. Other analysts say it adds around 20 percent,
or just under 80 cents per bushel at current prices.
Those estimates hint that $4 per bushel corn might be priced at only $3
without demand for ethanol fuel. Federal law calls for production of 9
billion gallons of biofuels this year and 10.5 billion next year. The
requirement increases to 36 billion gallons by 2022, with ethanol supply
from corn capped at 15 billion gallons. It takes roughly one bushel of
corn to produce 2.8 gallons of ethanol. Department of Agriculture has
earmarked 4.0 billion bushels of corn or roughly a third of this year's
US corn crop for ethanol use next year, up from 3.0 billion bushels or
about 23 percent of last year's record 13.1 billion crop.
MONEY SHIFT TO COMMODITIES KEY REASON FOR PRICE GAINS
Analysts said soaring corn prices were a symptom of big shifts of
investment money into corn and other commodities. As big money began
shifting out of stocks a few years ago, commodity markets like corn
futures began climbing. "There was a speculative bubble in the market
and that's one of the biggest things that came out of the market is just
that equity markets weren't good and for a while the money came into
commodities," Ramsay said.
By mid-February non-commercial investors, including speculators, index
and hedge funds and managed pools of money, held nearly 484,000 long
positions in CBOT corn futures or 2.42 billion bushels of corn. That
would be enough to produce more than 6.7 billion gallons of ethanol and
more than 20 million tonnes of livestock feed, according to the
Renewable Fuels Association, Washington D.C. By October those investors
held about 240,000 long positions in the corn market, less than half the
levels seen in the spring and early summer, the RFA said.
"We had adequate corn stocks, there was no shortage of corn, that wasn't
the issue," said Don Roose, analyst and president of US Commodities,
West Des Moines, Iowa.
"What we got into is the dollar went so low, crude oil went up and that
inflated a lot of things...it was that factor of the least resistance
moving up...it was an all-in attitude in the commodity markets in
general no matter what it was."
US capacity to make ethanol has risen about 60 percent since last year
to about 11.2 billion gallons per year and if all the new plants and
expansions come on line total US capacity would be about 13.8 billion
gpy.
(Reporting by Sam Nelson)
Updated October 16, 2008
Kansas Part of GM
Initiative to Add E85 Locations
The National Governors Association announced a partnership this week
between General Motors and 10 states to speed up the rollout of E85
ethanol pumps for flex-fuel vehicles. Kansas is one of the states
included in the effort. GM will help the states pick locations for
pumps, work with ethanol producers and infrastructure experts to ensure
adequate distribution and supply, and use its chain of dealers to
promote E85. The states will establish task forces to help pick
locations and find funding for pump installations or conversions. The
states include Alabama, Florida, Idaho, Kansas, Mississippi, Missouri,
Nebraska, Ohio, Tennessee and Wisconsin. By helping to build out the
infrastructure for E85, the new partnership is growing the market for
flex-fuel vehicles and expanding consumer choice at the fuel pump. There
are now more than 1,800 E85 stations nationwide.
Updated October 6, 2008
RFA: Just how much animal feed does the
American ethanol industry produce each year?
According to a new analysis by the Renewable Fuels Association,
America’s ethanol producers delivered 23 million metric tons of
livestock and poultry feed to the world last year, or nearly three times
the amount of wheat, sorghum, barley and oats fed to U.S. livestock in
the 2007/08 marketing year.
Put another way, the amount of feed produced by the ethanol industry in
2007/08 is roughly equivalent to the combined total amount of feed
consumed by cattle on feed last year in Texas, Kansas, Nebraska, and
Colorado-the nation’s four largest feedlot states.
An often overlooked and underreported aspect of America’s ethanol
industry is the substantial volume of high protein, high energy
livestock feed produced along with fuel ethanol by America’s 171
biorefineries. Only two-thirds of every bushel of grain processed by an
ethanol plant is actually used for fuel production. The remaining
one-third of the bushel is enhanced and returned to the animal feed
market, most often in the form of distillers grains, corn gluten feed
and corn gluten meal.
Produced in different forms, depending upon the technology used at each
biorefinery, this nutrient-dense livestock feed is increasingly
displacing grains and protein meals in feed rations for cattle, dairy
cows, swine and poultry domestically and overseas. In fact, about one
billion bushels of corn were displaced by ethanol feed co-products in
2007/08, an amount equivalent to roughly 15 percent of total corn use
for feed.
According to RFA’s analysis of industry data, exports of distillers
grains – the most common ethanol feed co-product – will increase to more
than four million metric tons in 2008, or the equivalent of
approximately 160 million bushels of corn.
Moreover, the return of one-third of each bushel of corn used in ethanol
production to the livestock feed market directly impacts ethanol’s net
corn usage. The US Department of Agriculture is estimating ethanol’s
gross corn usage for the 2008/09 marketing year at 4.1 billion bushels
(Based on estimated ethanol production, the RFA estimates gross corn
usage closer to 3.8 billion bushels). However, when the impact of the
livestock feed co-product is accounted for, net corn usage for ethanol
based on USDA estimates is 2.9 billion bushels, or 23 percent of total
projected corn usage – significantly less than the misleading claims of
ethanol using one-third or more of the nation’s corn supply.
“The livestock feed co-products of ethanol production are the best kept
secret of this industry,” said RFA President Bob Dinneen. “The focus of
the public has been on the industry’s production of fuel ethanol as a
renewable alternative to imported oil. But the production of a high
quality livestock feed is equally important. Our industry is truly in
the business of producing both feed and fuel.”
As the RFA points out in its new TV ads, in Hereford, TX, the beef
capital of the world, the town’s ethanol plants are providing feed, fuel
and economic development that will make Hereford the ethanol capital of
Texas. View the ads at
GoodFuels.
Updated October 3, 2008
U.S. Ethanol vs Middle
East Oil
From EPIC's Good News
Network
The biggest reason
Congress created incentives for renewable fuels such as ethanol was to
reduce dependence on foreign oil -- especially from volatile regions
such as the Middle East.
New federal figures show how far we've come.
In the first half of the year, domestic ethanol production nearly
equaled oil imports from Iraq. We produced 101 million barrels of
ethanol and imported 123 million barrels of Iraqi oil.
Iraq supplies about 11 percent of the oil we import from OPEC.
The U.S. ethanol industry will exceed this year's congressional mandate
of 9 billion gallons of renewable fuel.
Congress has mandated the country to use 36 billion gallons of renewable
fuels annually by 2022. That is more than what we import now from Saudi
Arabia, Iraq and Kuwait combined.
Kansas Ethanol Blender
Pump Webinar Wednesday, Oct. 1 The Ethanol Promotion &
Information Council (EPIC) partnered with the Kansas Corn Commission (KCC)
to launch a Blender Pump Program for the state of Kansas, this program
debuted August 18, 2008 and is one of the first in the nation. Thanks to
the financial contributions of the KCC and EPIC, this program provides
financial assistance for the installation of blender pumps, along with
branding, marketing and public relations support. In order to educate
the masses, we have organized a free webinar that will be held
Wednesday, October 1, 2008 at 10:00 AM . This webinar will cover all
of the basics of the program. More information is in the attached
invitation. Funds are being allocated, don’t miss your opportunity!
If you have any questions, please don’t hesitate to contact Sarah
Courter at EPIC at
Scourter@DrivingEthanol.org or 402-932-0567.
Updated September 21, 2008
NEW RFA Ads Feature Feed and Fuel in Hereford, TX
The Renewable Fuels
Association has launched two new television commercials this week
stressing the benefits of today’s domestic renewable fuels industry.
Entitled “Faces” and “Places,” the two 30-second spots feature real
Americans from Hereford, Texas who are actively leading America toward a
more secure energy future.
RFA TV adIn “Faces,” local Hereford residents explain why ethanol is
critical to America’s energy future. In “Places,” the geographic
diversity of America’s ethanol industry is on display as the
self-proclaimed “Beef Capital of the World” is also home to two ethanol
biorefineries.
RFA President Bob Dinneen says the purpose of the campaign is spotlight
the nation’s ethanol producers and give them the credit they deserve.
“This industry is about real people all across the nation committed to
doing their part to ensure a brighter energy future for generations to
come,” Dinneen said. “Hereford, Texas, with 1.5 million cattle and two
ethanol biorefineries epitomizes the importance of ethanol to America’s
energy and economic security.”
Updated September 19, 2008 Ethanol's Return on
Investment
Critics are fond of lambasting tax incentives for ethanol. But have they
done the math?
Jeff Broin recently broke down the costs and benefits for taxpayers in a
Q&A with the green-technology blog Earth2Tech. Broin is CEO of POET, the
nation's largest ethanol-maker.
The tax credit for blending ethanol into gasoline cost the government a
little more than $3 billion last year, Broin said.
Meanwhile, according to Iowa State University, ethanol has kept down the
cost of gasoline by 29 to 40 cents per gallon from 1995 to 2007 --
saving consumers about $40 to $60 billion per year. Said Broin: "I think
you could call that a great return on investment."
Updated Aug. 25, 2008
International Conference on Sorghum for Biofuel Held in Houston The
International Conference on Sorghum for Biofuel was a huge success
last week in Houston, Texas with over 250 registrants in attendance. The
Conference brought together researchers, industry representatives,
entrepreneurs, private industry and government interests to explore and
pursue the reality of next generation biofuels made from
sorghum.
On Tuesday, it was
standing room only in the conference ballroom where experts talked about
the scientific, agronomic and practical strengths and weaknesses of the
future development of sorghum for biofuels. Much focus was placed
specifically on sweet sorghum for near-term biofuels production and
cellulosic sorghums for production in several years. On Wednesday,
participants separated in to small breakout sessions to tackle issues
specific to their expertise.
On Wednesday and
Thursday, participants toured ethanol facilities and infrastructure in
College Station, Texas at
Texas A&M University and at Jennings, Louisiana where
Verenium is working on a cellulosic conversion facility. The College
Station tour featured in depth discussions about cellulosic and sweet
sorghum agronomics as well as information about compacting sorghum
silage in cotton module builders for transportation to ethanol plants.
Texas A&M showed off the
Norman Borlaug Center for Southern Crop Improvement and finished up
with a tour of a pilot conversion plant where it converts cellulosic
materials to a gasoline-like product. Verenium, another gracious tour
host, allowed participants to view their cellulosic conversion
technology plant.
Interest in
up-and-coming sweet and cellulosic sorghum varieties has increased
exponentially in the past several months and last week’s event showed
that biofuels from advanced sources like sorghum are garnering real
support and attention from the international community.
Offers funding to help
offset infrastructure costs for fuel retailers
Colwich, Kan. (Aug. 18, 2008) - Today Kansas will become the second
state to lead the nation in raising public awareness for higher blends
of ethanol as the Ethanol Promotion and Information Council (EPIC),
Kansas Corn Commission and ICM, Inc. collaborate to launch a blender
pump incentive program across the state of Kansas.
“Consumers are looking for relief at the pump, and blender pumps will
allow gas stations to sell more blends of ethanol-enriched fuel to
consumers driving flex-fuel vehicles (FFVs),” said EPIC Deputy Director,
Robert White. “This program will provide support and incentives to fuel
station retailers who want the opportunity to offer blender pumps, and
raise awareness among consumers.”
This major initiative will help fuel station retailers obtain funding
and the equipment needed to sell higher blends of ethanol, which range
from E20 (20 percent ethanol and 80 percent unleaded gasoline) to E50
(50 percent ethanol and 50 percent unleaded gasoline) and can only be
used in FFVs. One of the main goals is to increase the state’s blender
pump infrastructure by installing a minimum of 100 blender pumps over
the next year. Currently, four blender pumps are open in the state
thanks to a pilot program adopted by the Kansas Department of
Agriculture that made Kansas one of the first states in the nation to
allow ethanol blender pumps.
“This blender pump program will help expand higher blends of ethanol
through blender pumps while also giving consumers a break at the pump
and allowing them to use a product produced right here in Kansas,” said
Kansas Corn Commission Chairman, Bob Timmons. “Our program will help
strengthen our economy by encouraging blender pump infrastructure
development, and take us one step closer to lessening our dependence on
foreign oil.”
A pump promotion was held before the announcement was made to give FFV
drivers an opportunity to fill up with the mid-level blends of ethanol
at a new station in Colwich Kan. ICM, Inc. was instrumental in adding
blender pumps to this station. Many officials, including U.S. Sen. Sam
Brownback and representatives from the Kansas Department of Agriculture
were on hand to celebrate a monumental day for Kansas and renewable
fuels.
Updated Aug. 14, 2008
Colwich Ethanol
Blender Pump Promotion Monday, August 18!!
EPIC and Kansas Corn
Commission to announce initiative and give consumers a break at the pump New program and
pump promotion planned to help raise awareness for higher blends of
ethanol in Kansas
WHAT: As gas prices stay near record levels, Kansas motorists can take
advantage of bargain prices while pumping up the local economy at a pump
promotion at TJ’s Convenience Store in Colwich, Kan. on Monday, Aug. 18
from 6:30 a.m. – 8:30 a.m. The promotion is being held to celebrate a
major initiative that will be announced immediately following the pump
promotion. Consumers attending the promotion can fill their flex-fuel
vehicles (FFVs) with E10, E20, E30 and E85 for a reduced price. FFV
owners will have a 40 cents discount on E20, 60 cents discount on E30
and E85 will be offered for just $1.85/gallon. All drivers can save 20
cents per gallon on E10 fuel, approved for use in any gas powered
vehicle or engine.
Blender pumps offer FFV owners more choices at the pump to get the best
fuel economy while also helping make the air cleaner. Ethanol blends
over E10, like E20, E30, E40, E50 and E85 can only be used in FFVs.
There are more than 7 million FFVs on the road today.
Immediately following the promotion, a joint press conference will be
held to announce a major initiative between the Ethanol Promotion and
Information Council (EPIC) and the Kansas Corn Commission. Reporters
will get a detailed look at the new initiative which will encourage
infrastructure development, raise public awareness for higher blends of
ethanol, and increase consumption of ethanol-blended fuel. Speakers will
include Robert White, deputy director of EPIC; Senator Sam Brownback;
Adrian Polansky, Kansas Secretary of Agriculture; Dave Vander Griend,
president and CEO of ICM, Inc.; and Bob Timmons, chairman of the Kansas
Corn Commission.
WHERE: TJ’s Convenience Store
Located at the corner of 53rd Street North and 167th Street West
Colwich, KS 67030
Updated Aug. 12, 2008
Record Crop Projected for
Kansas Corn
Kansas Corn:
522.6 million bushels on 3.9 million acres with a yield of 134 bu/acre. This would be a record harvest, up 1 percent from 2007’s record
crop.
Expected yield, at 134 bu/acre, is down from 2007’s 140 bu/acre
Harvested acres are predicted at 3.9 million, up from 3.7 million in
2007
Kansas ranks #7 in U.S. production
U.S. Corn:
12.3 billion bushels on 79.3 million acres with a yield of 155 bu/acre.
This is down 6 percent from 2007, but the
second largest harvest in history.
Kansas Grain Sorghum
195.3 million bushels on 2.75 million acres with a yield of 71 bu/acre
This is down 8 percent from 2007 , but 48% of the nation’s crop.
Harvested acres are estimated at 2.75 million acres, up from 2.65
million acres in 2007.
However, yield is estimated at 71 bu/acre, compared to 80 bu/acre in
2007.
Kansas ranks #1 in U.S. production
US Grain Sorghum:
410.1 million bushels, down 19 percent from 2007.
Harvested acres are estimated at 6.4 million acres, down from 6.8
million acres in 2007.
Yield is estimated at 67.4 bu/acre, compared to 74.2 bu/acre in 2007.
Combined Kansas feedgrain (corn/sorghum) production is estimated at 718
million bushels, down from 730 million bushels in 2007.
Updated Aug. 11, 2008 Garden City
Ethanol Blender Pump Promotion
Friday, August 15!!
Garden City motorists
receive a break at the pump with alternative blends of ethanol
WHAT: As gas prices stay at record levels, Kansas
motorists can take advantage of bargain prices while pumping up the
local economy at a pump promotion at the U Pump It Country Corner in
Garden City, Kan. on Friday, Aug. 15, 2008 from 11 a.m. – 2 p.m. The
promotion is being held to celebrate the installation of the station’s
first blender pump. Consumers attending the promotion can fill their
flex-fuel vehicles (FFV) with E10, E20, E40, E50 and E85 for a reduced
price. Blender pumps offer FFV owners more choices at the pump to get
the best fuel economy while also helping make the air cleaner. Mid-level
blends like E20 and E30 can only be used in FFVs. There are more than
6.8 million FFVs on the road today.
During the promotion, motorists could win a free “e” branded t-shirt
while enjoying free hot dogs, hamburgers, chips and drinks. Two local
radio stations will broadcast live during the event. Motorist can jam to
tunes provided by Z98 FM from 11 a.m. to noon followed by the farm talk
show on KBUF AM from noon to 1 p.m.
WHEN: Friday, August 15, 2008 from 11 a.m. – 2 p.m.
WHERE: U Pump It Country Corner
156 N. Campus Drive
Garden City, KS 67846
*The promotion is being sponsored by the Ethanol Promotion and
Information Council, Kansas Corn Commission, U Pump It, and Garden City
COOP.
Updated Aug. 7, 2008
EPA Keeps Biofuel Levels in Place After Considering Texas Request
(Washington, DC -
August 7, 2008) Following extensive analysis, U.S. Environmental
Protection Agency (EPA) Administrator Stephen L. Johnson today announced
his decision to deny a request submitted by the State of Texas to reduce
the nationwide Renewable Fuels Standard (RFS). As a result, the required
total volume of renewable fuels, such as ethanol and biodiesel, mandated
by law to be blended into the fuel supply will remain at 9 billion
gallons in 2008 and 11.1 billion gallons in 2009.
"After reviewing the facts, it was clear this request did not meet the
criteria in the law," said EPA Administrator Stephen L. Johnson. "The
RFS remains an important tool in our ongoing efforts to reduce America's
greenhouse gas emissions and lessen our dependence on foreign oil, in
aggressive yet practical ways."
Current law authorizes EPA to waive the national RFS if the agency
determines that the mandated biofuel volumes would cause "severe harm"
to the economy or the environment. The agency recognizes that high
commodity prices are having economic impacts, but EPA's extensive
analysis of Texas' request found no compelling evidence that the RFS
mandate is causing severe economic harm during the time period specified
by Texas.
The Energy Policy Act of 2005 established the RFS program - and included
amendments to the Clean Air Act to set strict criteria for RFS-related
waivers. RFS nationwide volume mandates were increased in the Energy
Independence and Security Act, which was signed into law in December
2007.
EPA conducted detailed analysis, consulted closely with the Departments
of Energy and Agriculture, and carefully considered more than 15,000
public comments in response to the Texas request. This is the first RFS-related
waiver request. In a Federal Register notice, EPA is publishing a
detailed rationale that will also serve as a framework for any future
waiver considerations.
NozzleRage Video Gives
Some Friday Laughs A new
website, nozzlerage.com has posted a new video on the very serious
subject of US dependence upon foreign oil and its national security
consequences.
Kellogg's Improves
Profits (While Blaming Ethanol for Higher Food Prices) According to the Wall Street
Journal and other financial publications, Kellogg Co.'s second-quarter
profit rose 3.7% as higher prices offset increases in advertising
spending and raw-material costs. Kellogg is another active player in the
Grocery Manufacturer's Association efforts to blame higher food prices
on corn based ethanol.
The Battle Creek, Mich., cereal maker, whose brands include Rice
Krispies, Pop-Tarts, Eggo waffles and Morningstar Farms, reported net
income of $312 million, or 82 cents a share, up from $301 million, or 75
cents a share, a year earlier.
Our
point of view:
Reports said higher prices offset increases in advertising spending. We
wonder if part of that increased advertising spending has been helping
to fund the misinformation campaign to make consumers believe that
ethanol and corn prices are the culprit for higher prices at the
checkout.
Updated July 230, 2008
Kraft Foods Improves
Profits While Blaming Ethanol for Higher Food Prices Kraft,
one of the key players in the Grocery Manufacturers Association (GMA)
efforts to blame higher food prices on corn farmers, announced quarterly
profits this week of $879 million, up 10 percent from last year’s second
quarter.
Northfield-based Kraft on
Monday beat Wall Street's expectations with its quarterly earnings and
raised its own profit forecast for the rest of the year. Kraft, maker of
products ranging from Oreos to Jell-O to Oscar Mayer meats, posted
second-quarter earnings-excluding special items-of $879 million, or 58
cents a share, up 10 percent from last year's adjusted $802 million, or
50 cents a share. Second-quarter results include a 6-cents-a-share
benefit from "certain commodity hedging activities," the company noted.
Still, even with that gain stripped out, Kraft topped the 50
cents-per-share profit estimate of analysts polled by Thomson Financial,
according to report in the Chicago Tribune.
Our point of view:
While we're not against companies making a profit, we don't think it's
right for them to blame corn farmers and ethanol plants for the higher
prices they are charging the consumer.
Updated July 28, 2008
Ethanol Blender Pumps in
Kansas!
Kansas now boasts three ethanol blender pumps that sell a variety of
ethanol blended fuels. Ethanol fuels over 10 percent (E10) are for use
in flexible fuel vehicles. Many more ethanol blender pumps will be
installed in Kansas in the next year, offering motorists more fueling
options and making ethanol blended fuels more accessible throughout
Kansas.
LAWRENCE
Zarco Earth Friendly Fuels
Fuels offered: E10, E20, E30, E40 and E85
9th & Iowa
Lawrence, KS
GARDEN CITY--Grand Opening Celebration August 15!
U Pump It (Country Corner)
Fuels offered: E10, E20, E40, E50 and E85
156 N. Campus Drive (Campus/Hwy 50)
Garden City, KS
COLWICH--Grand Opening Celebration Soon!
TJ’s Convenience
Fuels offered: E10, E20, E30, E40 and E85
104 W Chicago Ave
Colwich, KS
Updated July 22, 2008
New
Blender Pump Offers Motorists Options in Garden City
We
are excited to report a new ethanol blender pump station located in
Garden City. The Country Corners station at the intersection of Campus
Drive and Fulton St. (Highway 50) has a new blender pump in operation.
This pump offers E20, E40, E50 and E85 ethanol blended fuels. The
station also sells E10 at all its fuel islands. Look for a big promotion
and grand opening in August.
Updated July 21, 2008
ETHANOL
INDUSTRY HELPS RURAL KANSAS ECONOMY BY JERE WHITE--Published as an op-ed piece in the
Wichita Eagle newspaper
Seaboard Foods' Rod Brenneman complained that the
ethanol industry is strangling pork producers
("Ethanol mandate hurts livestock producers," July 6 Opinion). These
are strange words from the executive of a company whose first quarter
earnings were up 42 percent from the same quarter last year.
Brenneman is a leader in the Food Before Fuel coalition. The coalition
is managed by Glover Park Group, the same East Coast public relations
firm that is handling the Grocery Manufacturers Association's now
infamous ethanol misinformation campaign. The goal of these two groups
is simple: Get rid of ethanol so food companies can once again have
access to cheap corn. Unfortunately for Seaboard and the other big food
manufacturers, it isn't that simple.
Seaboard has been a good friend to corn growers over the years,
especially when corn was priced below our cost of production. Writing
his commentary from his corporate office in metropolitan Kansas City,
Brenneman feigned concern for the small family pork producer.
Our office is located in rural Garnett. All four of our employees come
from family farms -- both livestock and grain. We know that small
livestock producers are struggling with higher corn prices, because
those producers are our friends and neighbors, association members, and
two of our four employees.
Several factors have contributed to higher corn prices. One factor is
certainly ethanol, and we will gladly take some credit for that one.
The boom in ethanol came about when growers in Kansas and the Midwest,
tired of selling their corn for less than $2 a bushel, decided to do
something for themselves and their rural communities. Many growers and
community members took a big chance, investing money in local ethanol
plant projects to create a market for their crops, to create jobs and to
increase revenue for their communities. I believe this is called rural
development.
What about the other factors? The value of the U.S. dollar has dropped,
and economies of many foreign countries, like China and India, have
exploded. So the export market for corn and other grains has grown,
increasing demand.
About the same time, investors and speculators, wary of the stock
market, moved to investing in commodities, increasing volatility.
Ever-increasing energy costs, thanks to our dependence on foreign oil,
play the biggest role in the cost of food production.
It seems shortsighted for Seaboard, looking for lower production costs,
to go after only ethanol -- a homegrown industry that is in many cases
owned by family farmers.
Brenneman justified his position by stating that ethanol is the one
factor that Congress can control and states that are "feeling the pinch"
should speak up. He should remember that many of the ethanol plants in
Kansas and other Midwest states are owned by family farmers, and those
plants are providing jobs in those small rural communities. Hurting the
ethanol industry will hurt our rural Kansas communities.
Brenneman stated that "there are real jobs, real people and real
communities at risk here." We couldn't agree more.
Jere White of Garnett is executive director of the Kansas Corn
Growers Association.
While we're in Washington DC for
Corn Congress the week of July 14, check out these great blogs!
U.S. Corn Outlook Is Improving! After months of
doom and gloom forecasts about the 2008 U.S. corn crop, the news is
finally becoming more positive. The June 30 acreage report showed more
planted acres than expected. Here in Kansas, our growers planted 4.1
million acres, the highest acreage since 1936! Today, USDA released is
supply and demand report, which also has positive news about our corn
supply.
The U.S. Department of Agriculture (USDA) today provided updated
information on this year's corn crop, including an estimate that effects
from June flooding may not have a significant effect on the nation's
overall corn crop. The National Corn Growers Association welcomed this
news and the fact that USDA statistics show improving crop conditions.
"As each report comes out through the growing season, we are seeing more
and more reasons for optimism about a good year for corn," said Ron
Litterer, NCGA president. "With the second-highest acreage since the
1940s, we know there will a lot of work to do come harvest time to meet
all needs for food, feed, fuel and fiber. As farmers, we relish the
challenge."
In its World Agricultural Supply and Demand Estimates report, the USDA
increased its estimate of beginning stocks, or carry-in from the record
2007 harvest, to 1.598 billion bushels, an increase of 165 million
bushels. This comes from a 100 million bushel reduction in feed and
residual use, a 50 million bushel reduction in using corn for ethanol
and a 15 million bushel reduction in other domestic use. While
production and average yield were marginally reduced in comparison with
the June projections, the total corn supply for the year is higher and
the total projected use has decreased marginally, providing for a
carry-out at the end of the season of 833 million bushels. The USDA
increased its projected 2008-09 feed and residual usage by 50 million
bushels, reduced its projected usage of corn for ethanol by 50 million
bushels and reduced other domestic uses by 15 million bushels. The
report also estimated average prices for the 2008 crop at $6 per bushel.
In a separate report on crop production, the USDA looked at weather and
acreage conditions. "By the end of the first week in June, 60 percent of
the corn acreage was rated good to excellent," the USDA stated. "Despite
flooding in the eastern Corn Belt, condition ratings dropped only 3
points by June 15, and showed improvement the following week. As of June
29, sixty-one percent of corn acreage was rated good to excellent."
Updated July 9, 2008
Biofuels Part of Gingrich's 3-Part Plan for Energy Independence
1.
Open the strategic petroleum reserve
2. Allow drilling in more places
3. Maximize biofuels
Energy Expert: ‘Swift and Painful’
Ramifications if RFS Waiver Granted
An expert on energy markets has warned that gas prices would jump almost
immediately if the U.S. Environmental Protection Agency (EPA) were to
grant Texas Gov. Rick Perry’s request for a partial waiver of the
renewable fuels standard.
“Our analysis shows that $5 gasoline will just be the beginning,” energy
market writer and publisher Tom Waterman said. “Prices in California
within one month would reach $5.75 per gallon and head to $6 per gallon
by summer’s end. The rest of the country will follow.”
“U.S. refiners would suddenly be faced with finding roughly 1.6 million
barrels or 68 million gallons of gasoline per day immediately,” Waterman
added. “These events are definite if the EPA acts.”
Waterman’s comments were part of a post on a Web site maintained by the
Renewable Fuels Association. Click here for the entire post.
Waterman has been writing about oil, gas, electricity and renewable
fuels as a reporter, editor and publisher for 23 years. He launched and
publishes Btu, one of the leading sources of information in the natural
gas and electricity markets, and the most widely distributed electronic
information and market intelligence product in the market. Waterman also
started a daily wire service and weekly petroleum publication known as
MarketWire, and launched the weekly publication The Ethanol Monitor in
2005, which has quickly emerged as one of the most innovative and comprClick
here for the entire post.ehensive publications in the field.
Waterman’s insight presents the corollary to what many have recognized,
the fact that corn-based ethanol has helped keep gasoline prices from
being even higher, by reducing the amount of petroleum needed in the
United States. According to the Center for Agricultural and Rural
Development at Iowa State University, the growth in ethanol production
has caused retail gasoline prices to be lower (up to $0.40 per gallon)
than would otherwise have been the case.
Click Here for more information on how ethanol helps keep gasoline
prices down. (links to RFA sheet)
While Big Food, thorugh a well-funded public relations campaign, is
pointing fingers at ethanol and corn prices for higher prices for
families at the checkout, food companies are posting big profits.
Dean
Foods Profits on Higher Dairy Prices
ConAgra Foods Profits on Higher Prices
Del Monte Foods' Profits Soar on Higher Prices
General Mills' Profit Perspective
Updated July 7, 2008
Editor's note: We may be running too many articles about OPEC on this
blog, but those friendly folks at OPEC say the darndest things! When you
have the world by the purse-strings, you can say anything you want.
After reading the article below from MarketWatch, we don't know whether
to laugh . . . or cry.
OPEC president blames ethanol for crude-price rise Khelil again predicts
price climbs, citing biofuels, weak dollar, tensions
By
MarketWatch
Last update: 2:05 p.m. EDT July 6, 2008
WASHINGTON (MarketWatch) -- The price of petroleum will continue to rise
because of ethanol, the weak dollar and political tensions, the oil
cartel's president was quoted as saying Sunday.
"The price of oil will rise again in the coming weeks," Chakib Khelil --
the Algerian energy minister and currently president of the Organization
of Petroleum Exporting Countries -- said in an interview with an
Algerian newspaper. "We have to follow the evolution of the dollar,
because a 1% fall in the dollar means $4 more on the price of oil."
Khelil said the weak dollar and geopolitical worries are responsible for
60% of the rise in crude prices, but also said that "the intrusion of
bioethanol on the market" was alone responsible for the other 40%.
He didn't explain why more ethanol would drive crude prices higher,
but said the dollar's decline was because the Federal Reserve had kept
interest rates low. Khelil repeated his view that a lack of supply is
not the problem.
"As producer countries, we think that the current supply is sufficient,
that this balance in supply is in everybody's interests and that it
shouldn't be disturbed, because the current rise in oil prices is in
nobody's interest," he said, according to media accounts. Khelil said
petroleum production had been limited by Western investment embargoes on
Libya and Iran, and by the war in Iraq.
Updated July 3, 2008 $100,000 gift led up to Texas Governor's attack on
ethanol-- Poultry titan gave Perry group funds,
then work for waiver began, records show
For Some, Money Trumps Research By Rick
Tolman, Chief Executive Officer, National Corn Growers Association
The Houston Chronicle ran a front-page story July 2 on Texas Gov. Rick
Perry’s request for a waiver of the renewable fuels standard, and how
his request followed within days a $100,000 contribution that Bo Pilgrim
of Pilgrim’s Pride made to the Republican Governors Association, chaired
by Perry. Pilgrim has been one of the most vocal opponents of corn-based
ethanol over the past few months.
Frankly, we’re not surprised. This is how politics often works.
What is much more disturbing is that Perry did this, the article states
further, despite research by one of his top-notch schools that
demonstrated that relaxing the RFS would not really matter.
“Perry pressed for the waiver despite an April 10 Texas A&M study that
showed a waiver of federal mandates on ethanol production would have
little or no effect in driving down the price of feed corn for poultry
and livestock,” reporter R.G. Ratcliff wrote. “The A&M study blamed
rising corn prices on the cost of oil, global demands for corn and
commodities speculation.”
Apparently, because Perry was not satisfied, he asked Texas A&M to go
back and write another report that looked at short-crop scenarios. While
the school gave him the conclusion he wanted, after the RFS waiver
request was filed, it appears to be a moot point with the updated
acreage from USDA this week that significantly discounts concerns about
a reduced corn crop.
Here’s a fair question: If Perry accepts the research of the second
report, why does he not accept the research of the first report? Well,
here’s how closely tied Pilgrim and Perry are, according to the
Chronicle:
“Perry's staff coordinated preparation of the waiver request with
Pilgrim's Pride lobbyist Gaylor Hughey of Tyler and Cliff Angelo with
Public Strategies, the firm handling a public relations campaign against
ethanol for Pilgrim's Pride and a coalition of meat producers.”
Another fair question: Why does a government official need expensive
private-sector lobbyists and PR firms to communicate with another
government official? Like the earlier Roll Call story that exposed the
Grocery Manufacturers Association’s PR campaign documents
(click here), this excellent report offers a rare insider’s look,
something print media are especially capable of. The reporter trolled
through nearly 600 pages of documentation from the governor’s office.
We salute reporters who work hard to try and get the real story … no
matter how unpleasant it may be to read.
Updated July 2, 2008
On July 4, Celebrate Energy Independence with Alternative Fuels
As American consumers pinch their pennies to drive
and celebrate the country’s Independence Day with family and friends
this year, the National Corn Growers Association and others are calling
for July 4th also to be celebrated as Energy Independence Day 2008.
“As much as we can, we need to work toward energy security and
independence by expanding domestic fuel sources such as corn ethanol,”
said NCGA President Ron Litterer. “Thanks to technology and hard work,
our farmers have been able to meet all needs and develop new markets and
promote the U.S. economy, especially in rural America.”
The United States spends more than $1 billion a day on imported foreign
oil and depends heavily on the Organization of Petroleum Exporting
Countries (OPEC), whose members produce more than 40 percent of the
world’s crude oil. OPEC also controls two-thirds of the global oil
reserves. In an effort to curb this dependence, Energy Independence Day
underscores the nation’s drive toward domestic renewable fuel sources.
“This summer, Americans are paying huge energy costs,” said Toni
Nuernberg, executive director of the Ethanol Promotion and Information
Council. “We’re calling for July 4th to be Energy Independence Day, as a
way to rally support for renewable fuels. We are issuing a call for
unity in the fight to gain our Energy Independence.”
Last year, just seven percent of the U.S. energy supply was from clean
and renewable domestic sources. But consumers can turn that tide. In
2009, using domestically produced petroleum and ethanol only, American
consumers could drive for 186 days without using foreign oil.
With the current single-source energy portfolio, American consumers pay
a hefty sum for their dependence on petroleum. Consumers can support
Energy Independence Day by joining the charge for unity in finding
clean, renewable solutions to dependence on expensive fuel. And, by
combining trips, using public transportation, carpooling, and using
ethanol-enriched gasoline this summer, we can reduce our draw on the
fuel supply.
Updated July 1, 2008 High Level Fillup
Kansas Congressman Dennis Moore (right) and EPA Region 7 Administrator
John Askew (left) talk about renewable fuels while fueling the Kansas
Corn car at the grand opening event for the Zarco Earth Friendly Fuels
station in Lawrence on June 30.. Congressman Moore and Administrator
Askew carpooled together from Kansas City for the event.
Zarco Earth Friendly Fuels
biofuels station at 9th & Iowa in Lawrence held its grand opening on
Monday, June 30.. The station sells only fuels
blended with ethanol or biodiesel, and is the first of its kind in
Kansas. It is also the first station to implement the state’s ethanol
blender pump pilot program. A blender pump can dispense several blends
of ethanol blended fuels—the Zarco station sells E10, E20, E30 and E85
fuel. In addition to its focus on biofuels, the station is adding other
earth-friendly features like a green roof with plants, solar and wind
power and a rain garden. The Environmental Protection Agency held a news
conference to tout the new earth friendly station. The Kansas Corn
Commission and the Ethanol Promotion and Information Council sponsored
an ethanol promotion, marking down all four blends of ethanol fuel.
Updated July 1, 2008 Kansas Growers
Plant Largest Corn Crop in Modern History
Kansas farmers planted 4.1 million acres of corn this
year, according to the Kansas Agricultural Statistics Service. The 2008
acreage estimate represents a five percent increase over 2007 and is the
highest corn acreage in Kansas since 1936.
Kansas growers planted 90 percent of their corn acres with varieties
enhanced with biotechnology. 25 percent was planted with Bt corn, 30
percent with herbicide resistant corn, and 35 percent with stacked gene
varieties with both insect and herbicide resistance.
In 1936, farmers planted 5.1 million acres of corn in Kansas. Of that,
only 497,000 acres were harvested with a yield of 6 bushels per acre.
Total production was just 2.96 million bushels.
Grain sorghum and soybean plantings are also up. Growers planted 2.85
million acres of grain sorghum, up 2 percent from 2007. Growers planted
a record 3.2 million acres of soybeans, up 23 percent from 2007.
Combined feedgrain acres in Kansas (corn and sorghum) total 6.95 million
acres, up 3.7 percent from 2007. Corn and grain sorghum are both valued
in Kansas for livestock and ethanol production.
Updated July 1, 2008
Saudi
King on High Oil Prices--Get Used
to It
King Abdullah of
Saudi Arabia, whose nation is the world's number one oil exporter,
called on consumer countries to get used to high prices in comments
published on Tuesday.
"Consumer countries have to adapt to the prices and the mechanisms of
the market," the king said in an interview published by the Kuwaiti
daily Al-Siyassah.
"We have nothing to do with the current sharp increase in crude prices,"
he said reiterating the Saudi position that speculation, rising demand
and the taxation of oil products in consumer countries were to blame.
"These countries must reduce their taxes on fuel.. if they want to
contribute to easing the burden on ordinary consumers," he said.
(from AFP news service)
Updated June 27, 2008
Earth Friendly Fuels Station to Celebrate
Blender Pump Grand Opening Monday, June 30
Here
is a reminder about Monday’s events at the Zarco Earth Friendly Fuels
biofuels station at 9th & Iowa in Lawrence. The station sells only fuels
blended with ethanol or biodiesel, and is the first of its kind in
Kansas. It is also the first station to implement the state’s ethanol
blender pump pilot program. A blender pump can dispense several blends
of ethanol blended fuels—the Zarco station sells E10, E20, E30 and E85
fuel. In addition to its focus on biofuels, the station is adding other
earth-friendly features like a green roof with plants, solar and wind
power and a rain garden. The Environmental Protection Agency and other
partners in the project will hold a news conference at 10 a.m. The fuel
promotion will begin at 11:30.
When
Monday, June 30
10 a.m.: News Conference featuring Congressman Dennis Moore, EPA Region
7 Administrator John Askew, Kansas Secretary of Agriculture Adrian
Polansky and Lawrence Mayor Mike Dever.
Displays, spokespersons and information from several renewable fuels
groups
11:30 a.m. to 2:30 p.m.: Blender pump promotion
Information on the EPA News Conference Information is attached.
Below is the information on the blender pump promotion, sponsored by the
Ethanol Promotion and Information Council, Kansas Corn and East Kansas
Agri Energy.
Blender Pump Promotion Monday at Lawrence
The first blender pump is opening in Lawrence, Kansas! The Green Energy
Gateway Fuel Station Grand Opening will be happening in conjunction with
Kansas Corn Commission and the East Kansas Agri Energy ethanol plant,
Garnett. Several blends of ethanol will be discounted from 11:30 am to
2:30 pm. How much consumers save depends on the blend--
Where
Zarco 66 Earth Friendly Fuels
900 Iowa St. (9th & Iowa)
Lawrence, KS 66044
Updated June 24, 2008
OPEC Promises to Keep Oil Prices High
Oil
prices "will not come down," OPEC president Chakib Khelil said Tuesday,
assuring that the oil cartel has already done what it can on the matter.
"OPEC has already done what OPEC can do and prices will not come down,"
Khelil told journalists as he arrived for a meeting with EU energy
officials in Brussels.
OPEC
Secretary General Abdallah el-Badri said: 'We don't want to raise
production, there is no supply shortage."
Our view:
Wow,
there aren't many commodity producers who can tell you up front what
their price is going to do in the future with such certainty, and oil is a commodity. OPEC
is obviously in firm control of their supply and pricing. In the
face of this promise for high prices from OPEC, it would be foolish for
the U.S. to back away from producing ethanol or any domestic alternative
energy source.
Updated June 23, 2008
Mark Your
Calendars:
Grand Opening of Lawrence Green Gas Station Is
Monday, June 30 The grand opening
for the Zarco 66 Earth Friendly Fuels station will be Monday, June 30, 2008, at 10 a.m. at the station
located at 9th & Iowa in Lawrence. This is the first station to sell
ethanol under the state’s innovative blender pump program. The station
sells E10, E20, E30 and E85 fuels.
Featured speakers will be John Askew, regional administrator, US EPA
Region 7 and Adrian Polansky, Kansas Secretary of Agriculture. Invited
speakers are U.S. Senators Sam Brownback and Pat Roberts and U.S.
Representatives Dennis Moore and Nancy Boyda. A media session will be
held at 10:30 a.m. Several organizations will display vehicles that run
on alternative fuels and promote the benefits of burning environmental
friendly fuels. Other environmental friendly organizations will be
displaying consumer information regarding green practices.
EPIC and Kansas Corn will be participating in an ethanol fuel promotion
from 11:30 a.m. to 2:30 p.m. at the station. Ethanol supporters will be on hand to pump
ethanol blended fuels at a discounted price, and to provide information
and education to motorists.
The
Kansas Corn Commission is working with the Renewable Fuels Now Coalition
on a statewide radio campaign aimed at spreading information about the
food and fuel issue. The radio spots are in a lighthearted talk show
format in which the host, called the Food Dude, answers callers
questions about higher food prices. The corn commission is also
partnering with the Missouri Corn Marketing Board and EPIC in airing the spots on
four top radio stations in Kansas City. The radio commercials are an
excellent opportunity to counter misinformation in the media regarding
corn’s true impact on food prices. A second wave of commercials
featuring Fill'er Up Phil will begin next week.
ICM, Inc. Guarantees Food AND Fuel Production in 2010
ICM, Inc. this week announced that ethanol
biorefineries investing in the company's new, proprietary and innovative
technology before the end of this year, will be capable of commercially
producing both food and fuel in 2010. The announcement was made during
ICM’s customer meeting at the annual Fuel Ethanol Workshop (FEW) in
Nashville, Tenn.
“We are talking about the ‘ethanol biorefinery of the future’…and very
near future at that,” said Dave Vander Griend, founder, president and
CEO. “Fifty years ago, the U.S. fed the world. We will be able to do
that again with a food supply brought about by the evolution of ethanol
production.”
Vander Griend says dry fractionation, the first component of ICM’s new
six-part Food AND FuelTM technology package, can be installed as early
as the fourth quarter of this year, with production coming on line in
the second quarter of 2009. After cleaning and moisture conditioning,
the proprietary dry fractionation process mechanically separates the
corn kernel into its three main components: endosperm (the starchy
portion comprising most of the inner kernel), germ (the protein- and
oil-rich center) and bran (the kernel’s fibrous outer layer). More than
just producing ethanol, optimizing the whole kernel in this way allows
for the production of a host of food-grade and feedgrade co-products, as
well as another alternate fuel source to power the process. In addition
to new food-processing capabilities, ICM’s new technology offering also
provides several other advantages for biorefineries:
• a guaranteed increase in ethanol production capacity
• reduced natural gas consumption
• decreased enzyme usage
• a platform for emerging technologies
• a bridge to cellulosic ethanol
ICM installed their first Food AND FuelTM technology package at a
biorefinery in St. Joseph, Mo. This facility, LifeLine Foods, is the
proving ground for ICM’s “ethanol biorefinery of the future” package,
which includes the technology to transform corn fiber to cellulosic
ethanol.
Updated June 18, 2008
Meet Edgar the E-man!
The
new mascot of the Ethanol Promotion and Information Council was unveiled
earlier this month at the EPIC annual meeting in Omaha. The Kansas Corn
Growers Association submitted the winning entry in the contest to name
the new mascot. Suggested by KCGA was "eDDGar". This name combines the
EPIC "e" and DDG. Officially the mascot will be named Edgar, but the
name will be used to highlight both ethanol and DDGS. The South
Dakota Corn Growers Association submitted the name E-man. Both
organizations will get the use of Edgar at one of their upcoming events.
Updated June 17, 2008:
EPA Recognizes Garnett Ethanol Plant for Exceptional
Energy Savings
A Kansas ethanol plant was one of two plants recognized by the
Environmental Protection Agency. ENERGY STAR awards were given to East
Kansas Agri-Energy, LLC in Garnett, and POET Biorefining in Ashton, Iowa
at the International Fuel Ethanol Workshop and Expo in Nashville. The
Kansas Corn Growers Association and Kansas Grain Sorghum Producers
Association congratulated EKAE’s on receiving the honor from EPA.
“Our associations are based in Garnett, and EKAE has always been a very
good neighbor,” according to KCGA and KGSPA Executive Director Jere
White. “This plant is known for using innovative design and techniques
to save not only energy, but also to reduce water consumption. When
people question the efficiency of ethanol production, new generation
plants like EKAE demonstrate the advances that are being made in the
ethanol industry.”
The East Kansas Agri-Energy dry mill ethanol plant in Garnett, Kan.,
began production in 2005. The steam turbine system generates
approximately one-third of the facility’s electrical demands. It
requires approximately 23 percent less fuel than typical on-site thermal
generation and purchased electricity. Based on this comparison, the
plant reduces carbon dioxide emissions by an estimated 14,500 tons per
year, which is equivalent to removing the annual emissions from 2,400
cars or planting 3,000 acres of forest.
“Our East Kansas Agri-Energy plant includes an energy-efficient system,
which transforms a requirement to control air pollution into an
opportunity to address the plant’s energy demands,” said plant manager
Doug Sommer.
This ENERGY STAR program recognizes projects that reduce emissions and
use at least five percent less fuel than state-of-the-art, comparable
separate heat and power generation.
"EPA is proud to recognize the outstanding pollution reduction and
energy efficiency qualities of both ethanol facilities by presenting
these ENERGY STAR Combined Heat and Power Awards. These facilities in
Iowa and Kansas are making improvements that contribute to a cleaner and
healthier environment,” said EPA Region 7 Administrator John B. Askew.
Updated June16, 2008: BIG Food/BIGGER Profits
It's a well-known fact that the Grocery Manufacturers Association (GMA)
is funding an expensive, high-powered public relations campaign aimed at
making consumers believe that ethanol and higher corn prices are raising
food prices for American families. At the same time, they are boasting a
very strong growth in earnings. We are all for American companies
growing and making a profit, but maybe its time for GMA to stop playing
the blame game with corn farmers--especially if they are funding this
misinformation campaign on the backs of cash strapped families (just our
opinion).
Here is release from the Illinois Corn Growers on GMA's latest
announcement:
Business is good. And really, really good at Big Food companies
according to a new report by PricewaterhouseCoopers LLP for the Grocery
Manufacturers Association (GMA).
Big Food companies earned nearly an 11% percent sales growth this past
year and a strong shareholder return of 7.3 percent in 2007 according to
the report, The Food, Beverage and Consumer Products Industry: Achieving
Superior Financial Performance in a Challenging Economy 2008.
While raising prices and blaming farmers for food cost increases, the
companies have been rolling in the dough.
The GMA trumpeted the results in an announcement:
Commenting on the sector’s financial performance, Herb Walter, consumer
packaged goods and retail advisory partner at PricewaterhouseCoopers
said, “In 2007, we saw CPG manufacturers outperform the Dow and S&P
averages on strong financial performance, including a median EBIT growth
rate of 15+ percent. Free cash flow was seven percent of sales, and with
a significantly reduced cash conversion cycle, capital has been freed
for product innovation and marketing, among other spending
initiatives.”
Missouri Governor Matt Blunt announced Friday that he is denying
requests to exempt Kansas City from the sale of ethanol-blended gas. The
Mid-America Regional Council and the Greater Kansas City Chamber of
Commerce had requested that the governor issue a waiver from state law
that requires most of Missouri’s gasoline to include a blend of 10
percent ethanol (E-10). The renewable fuel standard, which requires most
gasoline sold to contain at least 10 percent ethanol, boasts advantages
for both the environment and Missourians’ pocketbooks.
In a letter to both organizations (pdf), the governor noted it is in
Missouri’s best interest to leave in place the state’s E-10 standard in
the Kansas City area. The governor cited environmental, consumer and
regulatory benefits for his decision.
“We have reviewed the request for a waiver of the E-10 standard in the
Kansas City area,” Gov. Blunt said. “After thorough consideration of all
aspects of this waiver request, I have decided it is in the best
interest of the state to not issue the waiver.”
Missouri became the third state to implement an E-10 standard. Ethanol
is a cleaner burning alternative to petroleum based gasoline and is more
efficient to produce. It contains more oxygen, which results in better
combustion and fewer carbon dioxide, carbon monoxide and carcinogenic
emissions.
Updated June13, 2008: Energy/Ag
Secretaries: Ethanol Moderates Gas Prices by
20-35 Cents Per Gallon
In the growing debate over
food versus fuel, top U.S. government officials are telling Congress gas
pump prices would be higher if not for increased use of ethanol. "It is
clear ... that biofuels are already moderating gas prices," Energy
Department Secretary Samuel Bodman and Agriculture Department Secretary
Edward Schafer wrote in a letter to the chairman of the Senate Energy
and Natural Resources Committee. "That impact is likely to grow
substantially as more biofuels come to market."
The agencies estimate
gasoline prices would be 20 cents to 35 cents per gallon higher if
ethanol weren't blended in. Further, Energy and the USDA wrote in the
letter that without ethanol, the U.S. would need 7.2 billion more
gallons of gasoline in 2008 to maintain current levels of travel. That
would equate to 5% more gas and likely higher prices, the agencies said.
Updated June12, 2008: Missouri Has Nation's Cheapest Gas, Thanks to Ethanol Everyone is
looking for cheaper gas. For us in Kansas, it is just next door. The
state of Missouri is boasting the lowest gas prices in the nation. Why?
Four causes are cited: lower fuel taxes, distribution, location AND the
ethanol mandate. All gas in Missouri now contains 10 percent ethanol.
That's saving motorists an additional 10 cents per gallon. Kansas City,
MO asked for a waiver from the ethanol mandate recently.
Updated June10, 2008: Survey: Motorists
Want Less Costly Fuel Alternatives
OMAHA, Neb., June 10 -- A
recent national survey commissioned by Ethanol Promotion and Information
Council (EPIC) (http://www.drivingethanol.org/) shows the skyrocketing
cost of gasoline is forcing American motorists to rethink their driving
habits and choices at the pump. The cost of summer driving, with oil
prices nearing $140 a barrel, has become an increasing financial burden
for many American consumers.
The EPIC survey found 47
percent of those polled stated that a fuel price below $5 a gallon
should be the point where fossil fuels are no longer our primary fuel
sources. An additional 27 percent of those polled reported that the
critical price point lies between $5 and $5.99. America is getting close
to the break-point as Sunday, the national average of a gallon of
gasoline rose to $4.005, 90 cents higher than a year ago, according to
AAA.
"Motorists are frustrated
and angry about high gas prices. Everyone is feeling the pinch at the
pump, which really underscores our need for biofuels," said Toni
Nuernberg, executive director of EPIC (http://www.drivingethanol.org/).
"As gas prices continue to skyrocket, we must continue the push for the
only current transportation energy option we have today-biofuels."
Even in the face of heavy
criticism from anti-ethanol groups and misplaced blame for rising food
prices, the ethanol fuel industry continues to help keep fuel prices
below the even-more exorbitant prices consumers would pay without the
availability of ethanol fuel.
According to data from
Iowa State University, blending gasoline with ethanol has kept fuel
prices $0.29 - 0.40 lower per gallon than they would have been
otherwise. In the Midwest, the savings are the greatest, with fuel
prices suppressed by as much as $0.39 per gallon due to ethanol fuel
blending.
The survey found that 42
percent of those polled said they were coping with rising gas prices by
driving less, but 15 percent reported there was nothing they could do to
cut back on the increasing expense of driving.
"Motorists across the
country are reaching their breaking point," said Nuernberg. "Rising fuel
costs are impacting the economy across the board. Cost-effective
renewable alternatives must be a part of our country's long-term energy
plan."
Survey
Methodology:Online survey of a total 1,004 completed surveys from Luth
Research's SurveySavvy online research panel. Survey fielding dates were
April 24, 2008 through April 30, 2008. Visit
EPIC for more
information.
Updated June 9,
2008: EPIC Annual Meeting Features
Zubrin
The Ethanol Promotion
and Information Council Annual Meeting featured as a keynote speaker Dr.
Robert Zubrin, author of Energy Victory. Zubrin's presentation showed
how America and other countries are losing financial ground to the OPEC
countries through their control of oil supplies and price. AND it showed
how biofuels, especially ethanol, can play a big role in reversing this
trend. To see a PowerPoint of his presentation,
click here
Some points from Dr.
Zubrin’s presentation:
--In 1972 the USA paid $4 billion for imported oil. In 2007 it paid $342
billion.
--In 1972 Saudi Arabia received $2.7 billion for exported oil. In 2007
it received $235 billion.
--The US oil import payout in 1972 was 4.6% of all Defense Department
expenditures for that year. In 2007 it was 65%.
--With OPEC exploiting increased demand from China and India to raise
prices, within a few years US oil import payments are likely to exceed
100% of the Defense Department budget.
Dr. Zubrin said OPEC’s oil price increases are a tax upon Americans that
funds efforts of the Middle Eastern countries.
He outlined the work of a coalition that is pushing for legislation that
would require that all vehicles sold in the U.S. be flexible fuel
vehicles that would be capable of operating on 85% ethanol (methanol and
biodiesel would also be included). He contends that within 3 years of a
FFV mandate, there would be 50 million flexible fuel cars on the road
and hundreds of millions of FFV cars worldwide, which would lead to
rapid expansion of E85 and M50 pumps in the U.S. and worldwide. This
would greatly reduce our need for foreign oil, he said.
Kansas Senator Sam Brownback is active in developing the legislation to
mandate flexible fuel vehicles. For more information on Dr. Zubrin and
to view his presentation, visit
www.energyvictory.net
Here is the beginning of one of his essays on the subject.
In Defense of
Biofuels
By Robert Zubrin
On the world markets, the cost of a barrel of oil is, at this writing,
over $120. In the United States, a gallon of gasoline now costs, on
average, roughly $3.50. Even when adjusted for inflation, both of those
figures are now higher than they have ever been—higher than during the
1973 oil embargo, higher than during any subsequent peak. And yet,
bizarrely, instead of focusing their attention on the staggering cost of
oil and its ruinous implications for global growth and economic
wellbeing, American policymakers and energy analysts have begun to decry
a different fuel—one that holds the key to ending our dependency on
expensive oil purchased from countries with interests inimical to our
own.
Biofuels—a class of fuels of which ethanol is the most prominent and
immediately promising—can play a central part in weaning the United
States from oil. But in recent months, a flood of press reports,
articles in scientific journals, and statements from international
bureaucrats have suggested that ethanol is starving the world’s poor, is
a waste of government money, and is bad for the environment. These
claims are simply not true; some are based on partial information, some
on gross disinformation, but none of them can withstand close scrutiny.
Many of the critics of ethanol mean well: they are worried about hungry
children or big government. Others have more self-interested motivations
for their criticism of biofuels—like Hugo Chávez, the preening,
obstreperous dictator of oil-exporting Venezuela, who has called ethanol
production a “crime.” Still others are driven by a Malthusian vision of
a world with fewer people in it. No matter the motivations of these
unlikeliest of bedfellows, their recent objections to ethanol could have
the cumulative effect of warping U.S. and international biofuels
policy—and just at the moment when exorbitant oil costs should, if
anything, be leading legislators to adopt the critical technology needed
to expand the role of biofuels in the world’s fuel supply.
READ MORE
Posted May 30, 2008: NCGA Meets with Grocery
Manufacturers--Expect Continued GMA Public Relations Attacks According to a report
on Agri-Pulse, the Grocery Manufacturers Association smear campaign will
continue and intensify.
NCGA’s Rick Tolman met
this week with executives from the Grocery Manufacturers Association,
which is funding the multi-million dollar misinformation campaign
against corn and ethanol. Sounds like the gist of the meeting was that
GMA doesn’t think they have much chance of lowering oil prices, world
food prices, weather or the other costs that are increasing their
production costs. So the Renewable Fuels Standard and ethanol are
getting their attention because they think they do have a chance to roll
back progress we have made in that area. Don’t expect them to stop their
smear campaign—in fact their efforts will intensify.
Posted May 27, 2008: More Popcorn Baloney Hoo
boy, now it's time to blame ethanol for higher theater popcorn prices,
and yes, higher movie ticket prices. The big city P.R. firms that are
being paid to smear ethanol and corn have really gone too far this time.
You know that $5 bag of popcorn you buy at the movie theater? The one
that has had 2 or 3 cents worth of popcorn in it? Now it has 4 or 5
cents worth of popcorn and that has spurred the theaters to not only
raise popcorn prices, but also movie ticket prices. And of course,
ethanol is to blame, according to Big Food's ethanol smear campaign.
A similar story broke
last summer. We're working on a fact sheet with updated numbers, but
until then, follow this link to see how the Iowa Renewable Fuels
Association handled this last year.
More
here
Posted May 27, 2008: Finally Breaking Oil Addiction
(from EPIC's Good News Network)
Practically lost in the
shuffle of events last week was a stunning bit of news reported by the
Financial Times:
"The US is starting to break
its 'addiction' to foreign oil as high prices, more efficient cars, and
the use of ethanol significantly cut the share of its oil imports for
the first time since 1977.
"The country's foreign oil
dependency is expected to fall from 60 percent to 50 percent in 2015,
before rising again slightly to 54 percent in 2030..."
The projected decline in
America's net oil imports between now and 2030 will end "an almost
relentless 30-year climb in the use of foreign oil," the FT reported.
"The US decline in foreign
oil dependency is already becoming more visible, with imports making up
57.9 percent in the first three months of this year, down from 58.2 last
year."
Guy Caruso, head of the
Energy Information Administration, credited high oil prices and the
impact of the 2007 energy bill.
There can no longer be any
doubt that ethanol is an important part of the solution to America's
energy problems.
Posted May 22, 2008: Take Action Now to Stop Big Food’s
Campaign Against Ethanol In an
effort to encourage the Grocery Manufacturers Association to end its
campaign against corn ethanol and the U.S. farmer, we urge you to call
or e-mail these member companies and make your voices heard:
Kraft Foods 847-646-2000
Kraft-Board@kraft.com
General Mills 800-248-7310
Kris.wenker@genmills.com
Posted
May 20, 2008: USDA Says
Ethanol Not Main Culprit in Higher Food Prices
U.S. Secretary of
Agriculture Ed Schafer held a briefing May 19 on ethanol's impact on
food prices. He stated the issue is food AND fuel, not food VS fuel.
"The Council of
Economic Advisers estimates the total global increase in corn-based
ethanol production accounts for only about 3 percent of the recent
increase in global food prices," Schafer said.
Posted May 15, 2008
Rumors of High Dollar Ethanol Disinformation Campaign
Prove to Be True
In early May, the Kansas Corn Growers Association put out a news release
pointing to rumors of a multi-million dollar public relations campaign
against ethanol funded by the food manufacturers industry. This week,
Roll Call, a Capitol Hill newspaper, outed the Grocery Manufacturers
Association’s smear campaign.
On May 15, Iowa Senator
Charles Grassley went a step further, making a statement about the
campaign on the Senate floor. The Senator also posted the GMA request
for proposal as well as the public relations campaign proposal from
Washington, DC firm Glover Park which was one of the firms hired for the
job. . . .
READ MORE
Posted May 16, 2008
Kansas Secretary of Agriculture Adrian Polansky Addresses
Food vs Fuel Issue in Op-Ed Piece
OP-ED: Biofuels and the Price of Food
It’s no secret I’m an
advocate of biofuels. I have been for a long time, so I’m fairly
accustomed to the anti-biofuel rhetoric. Even so, I was taken aback by
the level of blame being heaped on biofuels this spring for rising food
prices.
Biofuels do have an impact on grain prices and a more modest impact on
food prices. The most recent estimates I’ve heard are that biofuel
production increased the price of corn by about 20 percent over the last
12 months and food prices by about 1.2 percent.
Knowing these figures to be accurate, I had to wonder why biofuels were
being pegged as the cause of a global rice shortage and record increases
in food prices. I found out the reason this week. A group of food
manufacturers hired a Washington, D.C.-based public relations firm to
conduct an aggressive campaign to mislead all of us into believing that
biofuels are to blame. The goal was to get Congress to roll back the
amount of renewable fuels required to be in the supply chain.
The truth is that raw agricultural products account for less than 20
percent of the price of food. Prices we pay at the store are impacted
most by marketing, labor and energy costs. We all know what has happened
to the price of gas, so it should come as no surprise that our food
costs more, too. Then there is a weakened dollar and increased worldwide
demand for more and better food by a growing middle class. At the same
time, world grain production dropped last year simply because of bad
weather.
A Merrill Lynch commodity strategist recently said gasoline prices would
be 15 percent higher if biofuel production didn’t exist. If fuel prices
impact food prices to the extent economists say they do, imagine how
much higher food prices would be without biofuels.
Adrian J. Polansky
Kansas Secretary of Agriculture
Do High
Corn Prices Really Cause
High Food Prices?
Commodity prices account for less than 20 percent of consumer food
prices.
Food and Fuel Background
Information National Corn
Growers Association has provided these excellent background pieces on
the food and fuel issue.
Introductory Backgrounder
This document clarifies how corn ethanol has little impact on retail
food prices, helps bring down the cost of gasoline at the pump and
benefits our domestic economy.
U.S. Corn Industry Statistics
In 2007, corn growers produced a record harvest of 13.1 billion bushels,
providing for a sizable surplus and record exports. This document is
updated monthly with the latest figures from the U.S. Department of
Agriculture.
A Tale of Two Corns
Most American consumers don’t realize the key differences between field
and sweet corn, and why 99 percent of corn grown is not the kind you’ll
find at your local farmer’s market.
Using Technology to Feed and Fuel the World
New technologies are allowing U.S. corn farmers to produce substantially
more corn per acre of land in a sustainable way, thus helping to meet
growing demand for food and fuel.
5-16-08--Rumors of Ethanol Disinformation Campaign Prove to Be True
In early May, the Kansas Corn Growers Association put out a news release
pointing to rumors of a multi-million dollar public relations campaign
against ethanol funded by the food manufacturing industry. This week,
Roll Call, a Capitol Hill newspaper, outed the Grocery Manufacturers
Association’s smear campaign. On Thursday, Iowa Senator Charles Grassley
went a step further, making a statement about the campaign on the Senate
floor. The Senator also posted the GMA request for proposal as well as
the public relations campaign proposal from Washington, DC firm Glover
Park which was one of the P.R. firms hired for the job.
The Kansas Corn Growers Association along with the National Corn Growers
Association thanked Senator Grassley and Roll Call for reporting on the
disinformation campaign. Corn growers will continue to combat these
well-funded public relations campaigns with facts.
“Commodity prices account for less than 20 percent of the cost you pay
for food at the checkout. Even today’s higher commodity prices have very
little effect on the price of food. The other 80 percent of the grocery
costs which include transportation, packaging and processing are greatly
affected by rising energy costs,” according to KCGA Executive Director
Jere White. “We’re not saying it doesn’t cost more to produce groceries
today, but main culprit is not the farmer, not higher grain prices and
not ethanol.”
The public relations proposal prepared for GMA suggested several
tactics.
“First, we must obliterate whatever intellectual justification might
still exist for corn-based ethanol among policy elites. ... Second, we
must demonstrate to policy makers at the state and federal level that
there is a political price to allowing ethanol policy to drive up the
cost of food,” the Glover Park firm’s proposal stated.
Senator Grassley read a statement on the Senate floor Thursday
chastising GMA for its tactics.
“They’ve outlined their strategy of using environmental, hunger and food
aid groups to demonstrate their contrived “crisis,” Grassley said. “I
think it’s important for policy-makers and the American people to know
who’s behind this effort.”
The GMA has already been successful in getting this misinformation into
stories by the national and regional news media outlets
“We are asking the public and our policy makers to look past the
rhetoric and misinformation being manufactured by high powered
Washington DC public relations firms, and simply use some common sense
and look at the facts,” White said. “Look at your own budget—the main
driver in increased spending in your house is higher fuel and energy
costs. The same holds true for grocery manufacturers and for farmers
alike. It doesn’t make sense to go after the ethanol industry, which is
adding 7 billion gallons of refined fuel to our nation’s energy supply.
Without ethanol, our energy costs would be even higher.”
NCGA President Ron Litterer said corn growers were disappointed the food
manufacturers took this action.
“It is simply unfathomable that food companies through the Grocery
Manufacturers Association chose to smear their farmer-suppliers rather
than cooperate with us to meet the growing challenge for America’s fuel
needs,” Litterer said. “Unfortunately, from what we’ve heard this is not
the only campaign in the works to place the blame on agriculture.”
Kansas Corn Growers
Association News Release
5-5-08-Consumers to Pay for Several Months of Corn, Ethanol Bashing
Despite several research studies showing that ethanol production and
higher corn prices have only a small effect on consumer prices,
anti-ethanol forces have teamed up to sway public opinion against
farmers and the fuel they produce. The Kansas Corn Growers Association
believes facts, not well-funded public relations campaigns, should
prevail.
“We are hearing that the Grocery Manufacturers Association (GMA) has
embarked on a multi-million campaign through a Washington, DC public
relations firm to turn public opinion against corn-based ethanol,”
according to Kansas Corn Growers Association Executive Director Jere
White. “Several credible studies released this year show high fuel
prices have a much greater impact on food prices than higher corn
prices.”
White said consumers are wondering why there has been little connection
made between fuel prices and grocery prices.
“That’s where the story gets interesting. In addition to GMA, we are
told the oil industry has chipped in millions to the campaign as well,”
White said. “Consumers are paying higher prices at the pump and at the
checkout. Then the oil companies and food companies are using that money
to blame ethanol for higher food and fuel prices.”
While corn and ethanol producers have the facts on their side, it will
be difficult to beat a multi-million campaign aimed at rolling back the
advances made by the ethanol industry, much of which is owned by
growers. Corn growers have been working to make sure the public is
receiving both sides of the story.
“Corn and ethanol producers simply don’t have millions of dollars to
spend on glossy PR campaigns,” White said. “What we do have are facts:
several studies showing that ethanol production and higher corn prices
account for just a fraction of the increase consumers are paying at the
grocery store. Commodity prices account for less than 20 percent of the
cost of groceries, the rest is transportation, packaging, marketing and
other factors. Plus, ethanol actually reduces the cost of gas for
consumers at the pump”
While food prices are higher, White points out prices for non-food items
are also higher, including things farmers purchase to grow their crops
like fuel and fertilizer.
“It doesn’t take much common sense to understand that the big driver in
increased grocery prices is fuel prices,” White said. “Sure you’re
paying more for food, but you’re also paying more for laundry soap and
toilet paper. Production and transportation costs are up primarily
because of increased fuel prices—especially diesel prices. The real
story is $120 crude oil and the foreign regimes it supports. It is time
we say enough and support America first.”
