Farm Progress Show 2019

chuck zimmerman

2019 Farm Progress ShowIt’s that time again. Farm Progress Show 2019. Cindy and I are on our way to Decatur, IL for this year’s show.

We want to thank BASF for sponsoring the media tent once again this year. It’s looking like temperatures will be a little cooler but I’ll take air conditioning any day!

We’ll be on site this afternoon to get set up for an early start tomorrow when Carrie Muehling will be join us as we work with companies like GROWMARK, Syngenta, Can-Am and Bayer among others. It’s going to be a busy show. I’ve never had so many invitations to come to exhibits for their media event or to just meet and interview various representatives. I wish we could do them all!

Secretary of Agriculture Sonny Perdue is scheduled to attend the show on Wednesday afternoon, which should be interesting considering the current dissatisfaction among farmers in the Midwest – crop forecasts, refinery waivers, trade wars…etc. Wonder what Secretary Sonny will have to say this week. We know there will be farmers there with plenty to say!

See you at the Show!

AgWired Energy, AgWired Precision, Farm Progress Show

US and Japan Shake on Trade Deal

During the G-7 summit in France Sunday, President Donald Trump and Japanese Prime Minister Shinzo Abe shook hands on a deal “in principle” that involves agricultural products.

“(We) have excess corn in various parts of our country, with our farmers, because China did not do what they said they were going to do,” said President Trump. “And Prime Minister Abe, on behalf of Japan, they’re going to be buying all of that corn. And that’s a very big transaction. They’re going to be buying it from our farmers.”

Prime Minister Abe said there is a demand for some agricultural products right now in Japan because they are experiencing some insect pest issues. “And there is a need for us to buy certain amount of agricultural products. And this will be done by the Japanese private sector. That means that Japanese corporations will need to buy additional agricultural products.”

U.S. Trade Representative Robert Lighthizer says the deal “will be a major benefit for beef, pork, wheat, dairy products, wine, ethanol, and a variety of other products.”

Listen to remarks by Pres. Trump, PM Abe (translated), and USTR Lighthizer.

US-Japan trade deal announcement

AgWired Animal, AgWired Energy, AgWired Precision, Audio, corn, Exports, Trade

GROWMARK Foundation to Provide FFA Jackets

After the unexpected passing of GROWMARK vice president and long-time employee Mike Builta in April 2019, the GROWMARK Foundation is helping his family to honor his memory by providing FFA jackets to FFA members in Illinois.

“In the weeks and the days after his passing, his wife approached us and asked if the GROWMARK Foundation could become a place to funnel memorial funds through, and also to come up with some ideas of appropriate ways to honor his memory,” said Karen Jones, GROWMARK Youth and Young Producer Specialist.

More than $12,000 was collected in Builta’s memory. Part of that money will go towards providing 25 Illinois FFA members with FFA jackets for the next four years, for a total of 100 jackets. Interested students will fill out an online application including two short answer questions about what the FFA jacket means to them, and the main goal they wish to accomplish as an FFA member.

The application is available at www.bit.ly/BuiltaJacket and is due September 30.

Builta was raised on a family farm near Bellflower, Illinois. He was an active FFA member and lifelong supporter of agricultural education. He held GROWMARK System management roles at Christian County Farmers Supply Company in Taylorville, Illinois and GRAINCO FS in Ottawa, Illinois, before becoming GROWMARK vice president of Energy and Logistics in 2018.

Listen to Carrie’s interview with Karen here: Interview with Karen Jones, GROWMARK

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Sen. Ernst Visits DuPont Biofuels Enzyme Plant

Cindy Zimmerman

DuPont Nutrition & Biosciences hosted Senator Joni Ernst (R-IA) at its plant in Cedar Rapids, Iowa earlier this week. During a tour and town hall with employees, Sen. Ernst and DuPont leaders discussed the positive impact of strong national biofuels policy on America’s farmers, on the environment, and on consumer choice at the pump.

“DuPont’s investments in new and advanced biofuel technologies support a strong rural and farm economy when backed by reliable biofuels policy. While we welcome the Environmental Protection Agency’s (EPA) recent action to remove regulatory barriers to allow for year-round E15, it is critical that the agency also end the misuse of small refiner exemptions, which erodes demand for biofuels and ultimately hurts farmers, rural communities and consumers,” said Troy Wilson, Global Business Director for DuPont Biorefineries.

“Iowa’s economy continues to charge ahead because of innovative employers in our state like the DuPont Nutrition & Biosciences’ production plant in Cedar Rapids,” said Senator Joni Ernst. “I was pleased to hear directly from some of these employees during today’s town hall about their work and what can be done at the federal level, and in cooperation with our state and local partners, to help make sure our economy continues to move in the right direction.”

At its Cedar Rapids plant, DuPont manufactures a full product line of enzymatic and yeast solutions that allow for a higher conversion rate of starch to sugar, which creates greater yields in biofuel production and improves productivity for biofuels producers.

biofuels, Dupont, E15, Ethanol, Ethanol News

Nebraska Ethanol Board Offers E15 Workshop

Cindy Zimmerman

The Nebraska Ethanol Board (NEB) is hosting a free workshop for fuel retailers Aug. 28 in Kearney, Nebraska. Attendees will hear best practices from fuel retailers who’ve seen success selling E15, a keynote from Ron Lamberty of American Coalition of Ethanol, and will learn about resources to make implementing and labeling infrastructure easy and affordable.

Fuel retailers need to register by today by clicking here. The workshop is free, and food and drink will be provided throughout the day.

E15, Ethanol, Ethanol News, Retailers

Biofuel Retailers Have What it Takes

Cindy Zimmerman

Mike Lewis co-founded Pearson Fuels in 2003 as an “alternative fuels” station in San Diego, California. Today, Pearson Fuels is the largest distributor of E85 in California, supplying over 140 locations and about 76% of the market.

Receiving the Paul Dana Marketing Vision Award at the American Coalition for Ethanol (ACE) annual conference last week, Lewis noted that Pearson Fuels now sells twice as much E85 each year as the entire state of Minnesota, after significant steady growth since 2014 which is continuing.

Lewis would like to see the industry strongly support and advocate for more flex fuel vehicles as auto manufacturers have steadily been making less and less of them each year, “and they will continue to dial it back further and further until there is none, unless there is some kind of government incentive for them to do it.”

Learn more in Lewis’ remarks and interview below:
ACE Conference retailer panel, Mike Lewis, Pearson Fuels

ACE Conference interview with Mike Lewis, Paul Dana Marketing Award

Also on the retailer panel at the ACE conference was Randy Gard, COO of Bosselman Enterprises and the spokesperson for all retailers on the stage with President Donald Trump in June at Southwest Iowa Renewable Energy (SIRE) when approval for year-round sales of E15 was announced.

Gard says they are aggressively promoting E15 and higher blends in their Pump and Pantry stores this summer and he talked about how the branding of Boss Fuel helped sales really take off. “All we did was brand it and kind of give E15 an identity,” says Gard of the Super Unleaded 88 “best value” Boss Fuel.

ACE Conference retailer panel, Randy Gard, Bosselman Enterprises

2019 ACE Conference Photo Album

ACE, ACE Ethanol Conference, Ethanol, Retailers

Managing Costs During Tight Margins

Margins are tight in the ethanol industry, and for a number of reasons from political to regulatory to economic. John Christianson, Principal, Christianson PLLP, told those attending the 2019 American Coalition for Ethanol Conference that successful plants have to be strategic and focused.

“It really comes down to leadership and it comes down to a laser focus,” said Christianson. “The management and boards of directors that are laser focused on the direction of their company and where they need to go. That leadership is something that we’re seeing is separating the top producers from the people that are struggling right now.”

Christianson said he believes that industry has what it takes to survive, in part because of commitment and innovation.

“This industry is transforming and evolving from an ethanol industry to really a biorefinery industry and the multiple innovations and new markets and new products that are coming out of the plants are really going to be the direction that this industry is going to be heading in the future,” he said.

Listen to Cindy’s interview with John here:ACE Conference interview with John Christianson, Christianson PLLP

2019 American Coalition for Ethanol Conference Photo Album

ACE, AgWired Energy, Audio, Ethanol

Rep. Axne Calls for Investigation into Waivers

Cindy Zimmerman

U.S. Representative Cindy Axne (D-IA), a member of the House Agriculture Committee, is calling for a federal investigation into the Environmental Protection Agency’s (EPA) expansion of refinery exemptions from blending requirements under the Renewable Fuel Standard (RFS).

Rep. Axne chose Southwest Iowa Renewable Energy (SIRE) to hold a press conference yesterday, the same site where President Donald Trump triumphantly announced the end of summer restrictions on E15 in June.

In a letter sent today to Charles J. Sheehan, Acting Inspector General (IG) of the EPA, Rep. Axne requested that the IG conduct an investigation into the highly questionable decision-making and misuse of the EPA’s “small refinery exemption” (SRE) authority to benefit large or unqualified companies that may be exerting an undue amount of influence over the regulatory process.

“I have serious concerns that the EPA continues to ignore the boundaries of its authority under the law in its administration of this waiver authority. Relying on the veil of secrecy provided by claims of confidential business information conceals the EPA’s highly questionable decision-making and misuse of its authority to benefit a small group of companies that may be exerting an undue amount of influence over the regulatory process,” wrote Congresswoman Axne.

In addition to Rep. Axne, Mike Jerke, CEO and President of Southwest Iowa Renewable Energy, and others spoke at the press conference about how the these biofuel exemptions are hurting Iowa farmers and rural communities.

Listen to Rep. Axne’s announcement and remarks from Mike Jerke.
Rep. Axne press conference

Listen to an interview with Mike Jerke at ACE Conference last week.
ACE Conference interview with Mike Jerke, SIRE

ACE, ACE Ethanol Conference, Audio, EPA, Ethanol, Ethanol News

Fallout from EPA Refinery Waivers Continues

Cindy Zimmerman

President Trump reportedly held a meeting with his cabinet Monday concerned about backlash from farmers over new small refinery waivers, but an EPA official added fuel to the fire yesterday by saying there was “zero evidence” of demand destruction for ethanol due to the numerous refinery exemptions allowed by the Environmental Protection Agency.

“To suggest that there is ‘zero evidence’ of ethanol and corn demand destruction from small refinery waivers is as insulting as it is absurd,” said Renewable Fuels Association president and CEO Geoff Cooper. “On the same day that EPA made this asinine assertion, two more ethanol plants announced they are idling production. At least 15 ethanol plants have now shut down or idled since EPA began its refiner bailout bonanza last year, and more than 2,500 jobs have already been affected. Ethanol production and demand continue to slide, prices continue to sink, and margins continue to bleed red. Meanwhile, the waivers are eroding corn demand, with USDA cutting its estimate of corn use for ethanol by 225 million bushels—equivalent to erasing demand for the entire Michigan corn crop. Farm bankruptcies and debt are on the rise, and farm income is plunging. Yet, EPA pretends nothing is wrong. Rome is burning, while EPA plays Nero’s fiddle.”

The nation’s largest ethanol producer, POET, announced yesterday that it will idle production at its bioprocessing facility in Cloverdale, Indiana because of the new wave of small refinery exemptions.

POET has reduced production at half of its biorefineries, with the largest drops taking place in Iowa and Ohio. As a result, numerous jobs will be consolidated across POET’s 28 biorefineries and corn processing will drop by an additional 100 million bushels across Iowa, Ohio, Michigan, Indiana, Minnesota, South Dakota, and Missouri.

“The Renewable Fuel Standard was designed to increase the use of clean, renewable biofuels and generate grain demand for farmers. Our industry invested billions of dollars based on the belief that oil could not restrict access to the market and EPA would stand behind the intent of the Renewable Fuel Standard. Unfortunately, the oil industry is manipulating the EPA and is now using the RFS to destroy demand for biofuels, reducing the price of commodities and gutting rural economies in the process,” said POET Chairman and CEO, Jeff Broin.

The National Corn Growers Association is urging corn farmers and other stakeholders to submit comments by August 30 urging EPA to account for all waived gallons in order to keep the Renewable Fuel Standard (RFS) whole. EPA’s 2020 RVO proposal fails to account for projected waivers and ignores a 2017 court decision that EPA improperly cut 500 million gallons of renewable fuels blending in 2016.

EPA, Ethanol, Ethanol News, NCGA, POET, RFA, RFS

Legally Protecting Ethanol’s Market Share

Carrie Muehling

Various legal battles are ongoing to protect the Renewable Fuels Standard (RFS) and ethanol market share. An update on these efforts during the American Coalition for Ethanol Conference came from Bryan Stockton, Counsel, Pillsbury Winthrop Shaw Pittman LLP.

Stockton shared what he called “the good, the bad and the ugly,” celebrating the timely release of the long anticipated E-15 final rule from the Environmental Protection Agency (EPA) in June 2019 allowing for year-round sales of E-15 but acknowledging a number of challenges to that rule since that time.

Stockton also spoke of ongoing challenges to small refinery exemptions (SRE) and the annual renewable volume obligations (RVO) rules, sharing one particular case brought forth by a number of groups regarding three specific small refinery exemptions.

“These SREs are significant. We’ve looked back at 2016 and 2017, and each year it essentially works out to about nine percent or so of the entire RFS being waived through these exemptions,” said Stockton.

He added that traditionally these exemptions have not been published, although EPA did publish consolidated information on its website about SREs in 2019, acknowledging the need for greater transparency.

Listen to Stockton’s full commentary here:ACE Conference legal update, Bryan Stockton remarks

2019 American Coalition for Ethanol Conference Photo Album

ACE Ethanol Conference, Audio, E15, EPA, Ethanol