USDA Lowers Forecast for Corn and Soybeans

Cindy Zimmerman

The November World Agricultural Supply and Demand Estimates from USDA show lower forecasts for domestic production of both corn and soybeans.

This month’s 2020/21 U.S. corn outlook is for lower production, reduced feed and residual use, larger exports, and smaller ending stocks. Corn production is forecast at 14.507 billion bushels, down 215 million with a reduction in yield to 175.8 bushels per acre. Corn exports are raised 325 million bushels to 2.650 billion, which if realized would be record high. Projected feed and residual use is lowered 75 million bushels based on a smaller crop and higher expected prices. With supply falling and use increasing, corn ending stocks for 2020/21 are down 465 million bushels to 1.7 billion, which if realized would be the lowest since 2013/14. The corn price is raised 40 cents to $4.00 per bushel. Corn use for ethanol was left unchanged at 5.05 million bushels.

The U.S. soybean outlook for 2020/21 is for lower production and ending stocks. Soybean production is forecast at 4.17 billion bushels, down 98 million on lower yields. Lower yields are reported for several major producing states, including Illinois, Iowa, Indiana, Ohio, and Nebraska. With reduced production, soybean ending stocks are projected at 190 million bushels, down 100 million from last month. If realized, soybean ending stocks would be at the lowest level in the past seven years.

corn, Ethanol, Ethanol News, Soybeans, USDA

RFA Congratulates President-Elect Biden

Cindy Zimmerman

RFA LogoThe Renewable Fuels Association (RFA) is congratulating President-Elect Joe Biden on his victory, as projected by the Associated Press and others.

RFA President and CEO Geoff Cooper says they look forward to working with the Biden administration on issues important to the ethanol industry. “Mr. Biden made it clear as he was campaigning that he would put a stop to the abuse at EPA of the small refinery exemption program on day one,” said Cooper. “We’ve got a promise, we have a pledge from Mr. Biden that he will put a stop to these exemptions.”

Environmental Protection Agency (EPA) Administrator Andrew Wheeler confirmed last week that the agency will delay action on dozens of outstanding SRE petitions until after the Supreme Court rules on an appeal from refining companies over EPA’s waiver policy, which will be December 14. “That’s incredibly frustrating for us because we’ve been at this for 10 months now,” since the court decision in January, said Cooper.

At the same time, EPA has not released a proposed 2021 Renewable Volume Obligation (RVO), which means it will likely not get done until next year now. “It could be as late as May before we see a final rule,” said Cooper. “So we’re right back in the mess that we were in several years ago when EPA missed its deadlines.”

RFA also congratulates the House and Senate members who won their races and Cooper says the ethanol industry has plenty of allies on the Democrat side in Congress who will have the ear of the new president.

Listen to comments from Cooper on a Biden presidency.
RFA CEO Geoff Cooper comments on Biden presidency (4:07)

Audio, EPA, Ethanol, Ethanol News, RFA, RFS

Ethanol Report 11-6-20

Cindy Zimmerman

While some of the 2020 election results have yet to be decided, Renewable Fuels Association (RFA) president and CEO Geoff Cooper says the ethanol industry will be ready to work with whoever ultimately wins the White House.

In this edition of the Ethanol Report podcast, Cooper discusses how ethanol has support from both candidates and bipartisan support in Congress, as well as the latest developments with the EPA and small refinery waivers.

Ethanol Report 11-6-20 (17:21)

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

EPA Delay on Waivers Comes as a Surprise

Cindy Zimmerman

Environmental Protection Agency (EPA) Administrator Andrew Wheeler has confirmed that the agency will delay action on dozens of outstanding Small Refinery Exemption petitions until after the Supreme Court rules on an appeal from refining companies over EPA’s waiver policy.

That means it would be December 14 before EPA would decide on whether to approve or reject the pending waiver requests. The high court is considering whether to hear the case brought by three small refiners in September and the EPA says it needs more time to provide a full government response to the petition.

Renewable Fuels Association President and CEO Geoff Cooper says they were surprised to hear of EPA’s decision on the appeal. “EPA decided not to get involved in earlier efforts for a rehearing of that properly decided opinion, so it’s unclear why EPA would want to weigh in now. If EPA decides to take a position on the request for further judicial review, we hope it’s to convey such review is unnecessary and falls far short of the established standards for Supreme Court’s involvement.”

Cooper says EPA can and should adopt the Tenth Circuit decision nationwide and immediately reject the 17 remaining ‘gap year’ waiver petitions and apply the decision to the 35 pending requests for 2019 and 2020 compliance exemptions. “It’s time to quiet the waters of the RFS program. Enough is enough.”

EPA, Ethanol, Ethanol News, RFA

Syngenta’s Thatcher Provides Post-Election Insight

Cindy Zimmerman

Mary Kay Thatcher, Senior Manager of Federal Government and Industry Relations for Syngenta, provided her perspective on the “churn of the election” during the company’s media summit this week. She does expect the presidential outcome to drag on for a while, but during her presentation, Thatcher used the assumption of a Biden presidency for her outlook.

In the biofuels space, Thatcher said the industry may need to look toward more Democrat champions, since a President Biden might not be as receptive to Republicans like Joni Ernst and Chuck Grassley in Iowa.

Here is the full presentation, which refers to slides and includes media questions at the end.
Syngenta Media Summit presentation on election impacts (50:27)

In this interview, Thatcher comments on how the rural vote went, what to expect for House and Senate Agriculture Committee leadership, and how a Biden presidency might impact biofuels, regulation, and trade issues.
Post election interview with Mary Kay Thatcher, Syngenta (10:25)

Audio, biofuels, Ethanol, Ethanol News, Syngenta

MN Governor’s Biofuels Council Recommends LCFS

Cindy Zimmerman

The Minnesota Governor’s Council on Biofuels this week released its consensus report on the steps needed to grow Minnesota’s biofuels industry and get the state back on track to meet renewable energy goals, including a plan for the adoption of a Low Carbon Fuel Standard (LCFS).

In the report to Gov. Tim Walz, the council recommends “a low-carbon fuel standard (LCFS)/clean-fuels policy (CFP) that builds on the vision, principles, and considerations of the white paper A Clean Fuels Policy for the Midwest (2020) from the Midwestern Clean Fuels Policy Initiative.”

The American Coalition for Ethanol (ACE) was a founding member of the Midwestern Clean Fuels Policy Initiative and released CEO Brian Jennings says they are pleased that Minnesota is building on its recommendations. “The white paper we released in January with the Great Plains Institute and other clean fuel stakeholders was designed for this specific purpose; to encourage Midwest governors and legislators to consider new clean fuel policies which will expand economic activity, increase ethanol demand, and cut greenhouse gas emissions.”

Members of the council include biofuels and farmer leaders from around the state, including Renewable Fuels Association chair Jeanne McCaherty with Guardian Energy, and John Christianson of Christianson PLLP who was recognized for his contributions to the report as a member of the Council’s Executive Committee.

The report also includes recommendations for increasing infrastructure for higher blends of ethanol and biodiesel, and for use of biofuels in state fleet vehicles.

Read the full report.

ACE, Biodiesel, biofuels, Ethanol, Ethanol News, Low Carbon Fuel Standard, RFA

RFA Comments on Colorado GHG Reduction Plan

Cindy Zimmerman

In September, Colorado released a public comment draft of its Greenhouse Gas Pollution Reduction Roadmap which details proposed steps the state can take toward meeting the near-term goals of reducing greenhouse gas (GHG) pollution 26% by 2025 and 50% by 2030 from 2005 levels.

Noting that transportation is one of the largest sources of GHG pollution, the Colorado plan suggests:
Transitioning to close to 100% electric cars on the road by 2050 and 100% market share for new vehicle sales of zero emissions trucks and buses by 2050; and
Adopting lower carbon fuels including advanced biofuels, renewable natural gas and hydrogen for hard to electrify sectors such as aviation and some heavy trucks

In comments on the plan submitted Friday, Renewable Fuels Association Vice President of Regulatory Affairs Kelly Davis, told the Colorado Energy Office that the internal combustion engine is “far from dead – the fuel just needs to be changed” with a low-carbon or clean fuel standard that can help Colorado slash greenhouse gas pollution.

“A properly designed, fuel neutral, LCFS or Clean Fuel Standard encourages GHG reductions via market forces,” Davis wrote. “LCFS/CFS programs are already in effect in California, Oregon and British Columbia, and have been discussed in other parts of the U.S., including Washington, New York and the upper Midwest. A science-based standard can drive technological innovation, stimulate investment in clean energy, reduce climate change emissions from the transportation sector, and decrease fossil fuel consumption.”

Davis also noted these programs “enable an increasingly diverse fuel supply, thus creating competition, encouraging innovation and developing greater market opportunities while improving air quality.”

Ethanol, Ethanol News, Low Carbon Fuel Standard, RFA

Field to Fuel Student Video Contest Open for Entries

Cindy Zimmerman

The Nebraska Ethanol Board is now accepting entries for the 6th annual Field to Fuel video contest, which encourages Nebraska high school students to explore the importance and value of ethanol.

With a focus on educating the public about renewable fuels, students are asked to research, film and edit a two-minute video for a chance to one of three prizes, including a $1,000 grand prize for their school or organization. Eligible videos must be received and/or postmarked no later than Jan. 31, 2021.

The contest is open to all Nebraska high school students in grades 9-12 and can explore any aspect of ethanol, including agriculture, science, sustainability, and renewable fuels’ impact in improving the environment and Nebraska’s economy. Teachers who would like more information about how to introduce ethanol into their curriculum (all ages) can explore the Ethanol in the Classroom resources from the Nebraska Ethanol Board website.

More information and requirements can be found here.

Education, Ethanol, Ethanol News

MOU Aims To Expand Ethanol Use In Vietnam

Cindy Zimmerman

The U.S. Grains Council (USGC) signed an official memorandum of understanding (MOU) this week with the Vietnamese Ministry of Industry and Trade (MOIT) aimed at expanding the use and availability of ethanol in Vietnam. The agreement promises to further a strong partnership between the two nations and encourage expanded ethanol use throughout Southeast Asia.

“The Council stands ready to support the MOU and the Vietnamese ethanol industry,” said Ryan LeGrand, USGC president and chief executive officer, who provided virtual remarks for the MOU signing. “The MOU helps further an already strong partnership between the U.S. and Vietnamese industries and governments. We thank the Vietnamese Ministry of Industry and Trade (MOIT), the U.S. Embassy and Consulate in Vietnam and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA’s FAS) for their ongoing dialogue and partnership.”

The MOU was signed during the 2020 Indo-Pacific Business Forum, which took place this week virtually and in-person in Hanoi, Vietnam. This year’s forum was aimed at advancing a vision for the Indo-Pacific region as a free and open region comprised of independent, strong and prosperous nations. Hosted by the U.S. Trade and Development Agency, the event is part of overall efforts to establish the United States as an essential and enduring partner to Southeast Asia.

Read more from USGC

Ethanol, Ethanol News, Exports, Trade, USGC

Ethanol Groups File Motion for EPA Transparency

Cindy Zimmerman

The Renewable Fuels Association and Growth Energy filed a motion this week for partial summary judgment in the federal District Court of the District of Columbia calling on the Environmental Protection Agency to make information about small refinery exemptions under the Renewable Fuel Standard available to the public.

The ethanol organizations filed the motion in response to EPA’s “failure to adequately respond to several Freedom of Information Act requests filed by the biofuels industry regarding the small refinery exemption (SRE) program and EPA’s radical escalation in granting SREs in recent years.”

RFA and Growth Energy asked the United States District Court for the District of Columbia to order EPA to make public at least the most basic information pertaining to these exemptions. The organizations have asked the United States District Court for the District of Columbia to order the following:

EPA should not withhold the name of the company submitting an application for an SRE nor the name and location of the refinery for which relief is requested
EPA should immediately produce the information that was unlawfully withheld for RFS compliance years 2015, 2016, and 2017
EPA should not withhold any of the five data elements identified in the proposed Renewables Enhancement and Growth Support (“REGS”) rule

EPA, Ethanol, Ethanol News, Growth Energy, RFA