In the June World Agricultural Supply and Demand Estimate, USDA raised corn beginning stocks for 2015/16 with a 25 million bushel reduction in 2014/15 forecast corn use in ethanol production. The revision, the result of a reduction of the forecast corn use in ethanol reduction for 2014/2015, is based on data reported in the Grain Crushings and Co-Products Production report through April.
Forecasts continue to show farmers planting 89.2 million acres and harvesting 81.7 million acres, with an average yield of 166.8 bushels per acre and production of 13.6 billion bushels, down from 2014 corn production of 14.2 billion bushels.
Despite total supply and ending stocks revisions, USDA continues to estimate the average farm price for the current market year at $3.55 to $3.75 per bushel, and a broader range of $3.20 to $3.80 for the next market year, which begins Sept. 1.
The fuel for wildfires is being converted to biofuels. This posting on the U.S. Department of Agriculture’s (USDA) blog says the agency is tackling the issue of what to do with the trees killed by bark beetles, a source of fuel for forest fires. While the huge bioenergy resource (projected to be 46 million acres) has potential, it faces some real challenges, including access to industrial centers able to process it into biofuel. Several USDA programs look to overcome that issue.
One such program, the Sustainable Bioenergy Alliance Network of the Rockies (BANR), is led by Colorado State University. BANR brings together scientists, educators, and extension specialists from universities and government agencies to work with industry partners to address the major challenges that impact economical and sustainable utilization of insect-killed trees for the production of biofuels and biochar.
Because collecting beetle-killed trees is more of a salvage operation than a harvest, BANR has created teams to address the various challenges. The first order of business is locating the feedstock, which BANR does through various sensing approaches. They will also develop models to predict future beetle infestations. Another team is tackling the logistical problems of harvesting, collecting, transporting, and storing the raw biomass without negatively impacting natural forest regeneration and water resources. Specifically, goals for this aspect of the operation include benchmarking the performance of equipment used to harvest, process, and deliver beetle-killed trees, and then optimize the logistics for site conditions, specific end uses, and facility locations.
USDA also wants to educate youth by developing middle and high school science units that focus on bioenergy; professional development for K-12 teachers; research opportunities for K-12 teachers and undergraduate students; and online coursework for undergrads, graduate students, and K-12 teachers.
USDA’s Foreign Agriculture Service reports that exports of U.S. ethanol exports rebounded last year after two years of declines. It was the second highest level of ethanol exports in history, making the United States the largest exporter of ethanol in the world, surpassing Brazil for the second time.
Value and volume of ethanol exports were both up approximately 35 percent from 2013, although still below the record set in 2011. At nearly 3.2 billion liters (836 million gallons), U.S. ethanol exports were worth more than $2 billion dollars. Six percent of ethanol produced in the United States was exported last year, shipped to a more diverse range of markets. Exports to Canada accounted for 40% of the total and while exports to Brazil and Europe dropped, dramatic increases were seen in markets such as the Philippines, South Korea, and the United Arab Emirates.
On the other side, U.S. ethanol imports (including both fuel and non-fuel ethanol) dropped by more than half in 2014, to less than 900 million liters, the lowest level since 2010. At the same time, domestic ethanol production jumped nearly eight percent in 2014, reaching a record 54 billion liters (14.3 billion gallons).
Read the entire FAS report here.
Agriculture Secretary Tom Vilsack and presidential advisor Brian Deese visited Michigan State University Thursday to announce a comprehensive national strategy to partner with farmers, ranchers and forest land owners to address the threat of climate change. The new initiative, “Building Blocks for Climate Smart Agriculture & Forestry”, will utilize voluntary, incentive-based conservation, forestry, and energy programs to reduce greenhouse gas emissions, increase carbon sequestration and expand renewable energy production in the agricultural and forestry sectors.
“American farmers and ranchers are leaders when it comes to reducing carbon emissions and improving efficiency in their operations. That’s why U.S. agricultural emissions are lower than the global average,” said Vilsack. “Through incentive-based initiatives, we can partner with producers to significantly reduce carbon emissions while improving yields, increasing farm operation’s energy efficiency, and helping farmers and ranchers earn revenue from clean energy production.”
Vilsack outlined details of the ten USDA Building Blocks for Climate Action, which includes promoting renewable energy technologies and improving energy efficiency. “We’ve incentivized the shift from fossil-based energy to renewable sources of energy in rural communities,” said Vilsack. “According to the 2012 Census of Agriculture, 57,299 farms reported using a renewable energy producing system in 2012. That’s more than double the 23,451 operations that reported the same in 2007.”
The Secretary also talked about the Biomass Crop Assistance Program (BCAP) and the funding of anaerobic digesters to help farm operations produce electricity from captured methane.
Vilsack announcement on climate change initiative
On Earth Day, Agriculture Secretary Tom Vilsack flipped the switch to symbolically activate USDA’s first solar array project in the National Capital Region.
The 1.6 Megawatt (MW) solar farm, located at the George Washington Carver Center (Carver Center) in Beltsville, Maryland, is the largest solar array on federal property in this region. This project, which is part of a larger commitment to transform the facility into a model for sustainability, will help meet the President’s Capital Solar Challenge. The new solar farm is expected to provide about 2,000 megawatt hours (MWh), or 20% of the Carver Center facility annual electrical power requirements, and handle most of GWCC’s electrical needs during the day.
“Today, USDA is another step closer to achieving its goal of energy independence. With this system, USDA is saving taxpayers over $300,000 annually in avoided energy costs,” said Vilsack. “As a Federal agency, USDA is leading the way in renewable energy in the National Capital Region. And we are proud to say that this 6.2 acre solar farm is the largest solar array on Federal property in this area.”
There are over 5,000 state-of-the-art, industry-leading American made panels in this farm and it was built on what used to be Agriculture Research Service farmland, land that is now farming energy. The Carver Center consists of four interconnected buildings and grounds, which occupy about 45 acres of Federal land. The farm helps position USDA to meet President Obama’s new Executive Order goal to increase the share of electricity the Federal Government consumes from renewable sources to 30 percent.
The heads of both the U.S. Department of Agriculture and the Environmental Protection Agency spoke to the National Farmers Union (NFU) convention in Wichita Monday and talked about the Renewable Fuel Standard (RFS).
EPA Administrator Gina McCarthy admitted that her agency was “in the hot seat” over the RFS after failing to set standards for the industry last year.
“The RFS is a complicated program, and we weren’t able to accomplish what we needed to do last year,” she said. “Implementing the RFS as Congress intended has been challenging.”
“We need to set levels that send a longer-term message,” McCarthy continued, explaining the agency’s intention to set Renewable Volume Obligations (RVOs) for 2014, 2015, and 2016 before summer of this year.
Listen to McCarthy’s speech here, courtesy of Ken Rahjes, AgView.net. EPA Chief Gina McCarthy at 2015 NFU Convention
Agriculture Secretary Tom Vilsack stressed his continued support for the RFS. “I love the RFS – I’m for RFS,” he said. “We need to make sure Congress doesn’t do anything to damage it or repeal it or make it difficult to use. We need to be advocates, spokespeople for this industry. We need to go out and tell folks this is the right thing to do,” he said.
Vilsack urged the crowd to continue to educate the public about the potential of weaning the nation from foreign oil imports and highlighting the potential of renewable fuels. He pointed to areas of the economy, like the military, that were converting to home grown fuels. “Navy is starting to look at renewable fuels. I am optimistic about this. We need to be advocates for this industry. We don’t want to lose this amazing marketing opportunity.”
Patriot Renewable Fuels in Annawan, Illinois
The amount of corn necessary to make a gallon of ethanol is less than previously believed according to a new U.S. Department of Agriculture report.
In today’s monthly World Agricultural Supply and Demand Report (WASDE), corn use for ethanol production was projected 50 million bushels lower based on the new Grain Crushings and Co-Products Production report recently released by the National Agricultural Statistics Service (NASS), citing “a higher rate of conversion than previously assumed” as the reasoning for the adjustment.
“What is most remarkable about this supply and demand report is the light it sheds on a topic of great concern to U.S. corn farmers – recognition of the growing efficiencies in the ethanol industry,” said National Corn Growers Association (NCGA) President Chip Bowling, a Maryland corn farmer. “For many years, we have strongly asserted that the ethanol industry continues to improve and those productivity gains should be taken into consideration. With the simple justification offered for the analysis, USDA made a great step forward in showing its growing appreciation for the advances made in ethanol production and, thus, the ever-increasing benefit it offers Americans.”
While USDA estimates for corn use in ethanol production were lowered by 50 million bushels, the overall drop was partially offset by higher than expected production over the winter months. The demand decline was more than offset by projected increases in demand for corn from the export and feed and residuals markets of 50 million bushels each.
Projected ending stocks were lowered by 50 million bushels in light of the other adjustments. Average farm price estimates were raised by five cents at the midpoint to $3.50 to $3.90 per bushel.
Up to $8.7 million in federal funding is being made available for next-generation bioenergy development in biomass. The U.S. Department of Agriculture (USDA) is funding the bioenergy research and education efforts and will be publishing the final rule for a program that provides incentives for farmers and forest landowners interested in growing and harvesting biomass for renewable energy.
“USDA’s support for innovative bioenergy research and education supports rural economic development, reduces carbon pollution and helps decrease our dependence on foreign energy,” said [Agriculture Secretary Tom] Vilsack. “These investments will keep America moving toward a clean energy economy and offer new jobs and opportunities in rural communities.”
USDA will publish the final rule on the Biomass Crop Assistance Program (BCAP) in tomorrow’s Federal Register. BCAP provides up to $25 million each year in financial assistance to owners and operators of agricultural and non-industrial private forest land who wish to establish, produce, and deliver biomass feedstocks to a qualifying energy facility. The rule includes modifications to cost sharing, eligible types of biomass and other definitions. Stakeholders are encouraged to visit www.regulations.gov to review program details and provide comments during a 60-day public comment period. Comments are due by April 28, 2015. The full program will resume in 90 days on May 28, 2015. Additional information on application dates will be announced this spring. For more information on the program, visit the web at www.fsa.usda.gov/bcap.
USDA is also looking for applications for research and education grants through the USDA’s National Institute of Food and Agriculture’s Biomass Research and Development Initiative (BRDI), a joint program through NIFA and the U.S. Energy Department (DOE) to develop economically and environmentally sustainable sources of renewable biomass, increase the availability of renewable fuels and biobased products to help replace the need for gasoline and diesel in vehicles, and diversify our energy portfolio.
U.S. Secretary of Agriculture Tom Vilsack will visit the Commodity Classic next week for the sixth year in a row to address the annual convention and trade show for corn, soybean, wheat and sorghum growers. The secretary will deliver a keynote address to several thousand farmers and ag allies during the event’s General Session on Friday, Feb. 27, in Phoenix, Arizona.
“We’re thrilled to be welcoming Secretary Vilsack back to Commodity Classic,” said National Corn Growers Association President Chip Bowling. “With so much going on in our nation’s capital that impact their lives, the audience will be eager to get his report on the top issues facing our growers, such as trade and the farm bill. He always provides an experienced, deep-inside-Washington perspective.”
The 20th annual Commodity Classic takes place Feb. 26-28, 2015, at the Phoenix Convention Center.
Real farmers from around the country had a chance to ask Agriculture Secretary Tom Vilsack questions during an informal town hall-style meeting at the American Farm Bureau convention this week in San Diego.
The last question he took was from a South Dakota farmer who asked about continuation of strong biofuels policy in the United States. Vilsack detailed his continued support for the industry, particularly in the area of exports. “I am a firm believer in the future of the biofuels industry,” he said. “Ethanol production is at record levels…we’re now beginning to see great interest in the export market, not just for ethanol but also for dried distillers grains.”
Beyond the Renewable Fuel Standard, Vilsack said USDA is working hard to encourage the Defense Department to use more biofuels. “They are scheduled this year to begin a process of buying hundreds of millions of gallons of biofuels for jets and ships,” he said.
The last point the secretary made was on the need to update the research on ethanol in particular, especially when it comes to indirect land use. “A lot of the push back to the industry is based on studies that took place 15 years ago, 10 years ago, and there have been enormous increases in productivity of American farmers, that basically suggest the indirect land use calculations are not as accurate as they need to be,” he said.
Listen to the secretary’s comments on biofuels here: Secretary Vilsack at AFBF on biofuels
2015 AFBF Convention photo album