Study Shows Economic Impact of Grain Exports

Cindy Zimmerman

A new study commissioned by the U.S. Grains Council (USGC) and the National Corn Growers Association (NCGA) points to the importance of export markets to U.S. farmers.

The study highlights the total economic impact of U.S. grain exports to be $55 billion in 2016 and also shows grain exports supporting 271,000 jobs directly or indirectly, according to Kimberly Atkins, vice president and chief operating officer for the USGC. The results are available through a complete report and also an interactive tool that breaks the information down to show the value of production and exports by state or congressional district.

“It’s important for our farmers to see the exact impact that exports are having for their exact state,” said Atkins, who said this kind of information is particularly important amid trade challenges happening right now.

“For U.S. grain producers, this report really highlights why it is that we need good trade policy in place and hopefully can be used to strengthen that conversation as we move forward in the next few months,” she said.

Atkins discusses the study in this interview: Interview with Kimberly Atkins, U.S. Grains Council

Audio, corn, Exports, Grains, NCGA, USGC

Ethanol Trade was Active in March

Cindy Zimmerman

The latest monthly trade numbers for ethanol are higher, both exports and imports, according to the Renewable Fuels Association (RFA).

RFA research analyst Ann Lewis reports that U.S. ethanol exports increased 23% to 140.0 million gallons (mg) in March 2019, the sixth straight month that exports have exceeded 100 million gallons.

Brazil was our top trading partner for the fourth straight month, purchasing a substantial 65.7 mg of U.S. ethanol and representing nearly half (47%) of our March export market. This reflects an 81% increase over February and the largest monthly shipment to Brazil in twelve months. Exports to Canada also surged 33% to 22.7 mg (16% of the global export market). India pared back on U.S. ethanol imports, decreasing 30% to 10.5 mg. Other significant importers include Switzerland (9.1 mg), Peru (5.5 mg), and the Philippines (4.9 mg).

At the same time, March saw the first imports of fuel ethanol this year so far and the largest first quarter volume since 2013. The United States imported 10.7 mg of undenatured fuel ethanol from Brazil in March, while Canada dispatched 0.1 mg of denatured fuel ethanol.

March exports of U.S. dried distillers grains with solubles (DDGS)—the animal feed co-product generated by dry mill ethanol plants—rebounded from a 6-year low in February, pushing 39% higher to 956,828 metric tons (mt).

Meanwhile, ethanol production continues to stay above a million barrels a day. For the week ending May 3, ethanol production expanded 12,000 barrels per day (b/d), a 1.2% increase, at an average of 1.036 million barrels per day (b/d), equivalent to 43.51 million gallons daily. The four-week average ethanol production rate moved 0.9% higher to 1.031 million b/d—equivalent to an annualized rate of 15.81 billion gallons.

Ethanol stocks narrowed 1.0% to a 40-week low of 22.5 million barrels. Reserves have fallen 7.8% since hitting record highs seven weeks prior, although stocks remain 2.1% greater than year ago volumes.

Ethanol, Ethanol News, Exports, RFA

POET Ads Spotlight Farm Crisis

Cindy Zimmerman

South Dakota-based ethanol producer POET, LLC, is launching a major advertising campaign directed at “leaders in the nation’s capital to confront the economic crisis in rural America and support crop-based products like ethanol to revitalize farm income.”

“American farmers are no strangers to adversity,” said Kyle Gilley, POET Senior Vice President of External Affairs and Communications. “They confront every obstacle with grim determination and a strong work ethic, but we are near a breaking point. Policymakers need to recognize that economic success in urban centers doesn’t mean anything to the rural families being left behind. Farm debt is set to hit a record high, while the latest Commerce Department report shows quarterly farm income fell $11.8 billion since December – a 25 percent plunge over just three months.”

POET’s six-figure campaign will feature cable spots during popular newscasts. The campaign also will include a broad range of digital advertising. Ads feature real farmers discussing real challenges facing rural communities, where the ethanol industry works hand-in-hand with local growers to support stronger markets and a stronger America.

Here is one of the ads:


Ethanol, POET

Ethanol Report on Higher Gas Prices

Cindy Zimmerman

The summer driving season is getting closer and gas prices are just expected to get higher, but don’t blame ethanol.

A recent analysis by the Renewable Fuels Association found that gas prices have been getting higher mainly because of a surge in crude oil prices since the start of the year, combined with normal seasonal gasoline pricing, as well as refinery maintenance and unplanned outages.

In this edition of “The Ethanol Report,” Renewable Fuels Association Chief Economist Scott Richman discusses the analysis.

Ethanol Report on Higher Gas Prices

Subscribe to the podcast via iTunes

Ethanol, Ethanol News, Ethanol Report, RFA

Reps Urge End to Abuse of Small Refinery Exemptions

Cindy Zimmerman

A bipartisan group of U.S. Representatives is urging the Environmental Protection Agency (EPA) to stop issuing Small Refinery Exemptions (SREs) for large or unqualified refiners under the Renewable Fuels Standard (RFS) program.

Reps. Cindy Axne (D-IA) and Adrian Smith (R-NE) led 35 other representatives in a letter sent to EPA Administrator Andrew Wheeler, highlighting how the expansion of biofuel waivers hurts farmers who rely on demand for corn-based ethanol and other biofuels and has increased our dependence on foreign oil.

“Our farmers and rural communities rely on a thriving biofuels market to support their families and create good-paying jobs. Increasing Renewable Fuels Standards (RFS) waivers not only threatens our energy security, but stifles competition in an industry that is an economic driver and job creator across Iowa and the Midwest,” said Rep. Axne. “I’m proud to work with my colleagues on both sides of the aisle to meet our RFS goals and reduce our reliance on foreign oil.”

Rep. Adrian Smith (R-NE) at 2016 ACE Fly-in

“Waiving the Renewable Fuels Standard impedes the biofuels market and limits consumers’ options at the pump,” Rep. Smith said. “I look forward to working with the Administration to keep our commitments to the biofuels industry, which in turn will help foster the development of greater American energy independence.”

Ethanol industry representatives thanked the members for their support. “We strongly agree with this bi-partisan group that EPA must restore the renewable fuel blending requirements that were erased through these clandestine waivers. The refinery exemptions have had devastating impacts on our nation’s farm sector and renewable fuels industry, and the bailouts have resulted in American consumers paying more money at the pump for dirtier fuels,” said Renewable Fuels Association president and CEO Geoff Cooper.

ACE, Ethanol, Ethanol News, RFA

Petition Urges Car Makers to Build More FFVs

Cindy Zimmerman

A grassroots effort has begun to let auto manufacturers know American drivers want more flex-fuel vehicle options.

In recent months, auto manufacturers have signaled they are pulling back on the production of flex-fuel vehicles, which can run on a variety of higher ethanol blends up to E85. Two members of the ethanol industry decided to let auto makers know how Americans feel about that by starting a petition. Paul Kamp with Whitefox Technologies and the Chicago Bioenergy Group spearheaded the petition, along with Chris Schwarck of Absolute Energy.

The petition reads:

We are consumers of your vehicles and we request that you manufacture cars and trucks of all models, engines and trim levels that will allow the use of higher ethanol blends such as E15, E20, E30 and E85. This would make our purchasing experience more enjoyable and less cumbersome than it is today. Many of us can simply not find the vehicles we wish to purchase. In addition, this would be beneficial to your sales presentation to offer environmentally friendly vehicles that burn clean, high-octane American made fuel, while supporting rural America and U.S. agriculture.

See it and sign it – here.

E85, Ethanol, Ethanol News, Flex Fuel Vehicles

Stay Strong Nebraska Helping Farmers and Ranchers Rebuild

The flood waters may be receding, but the damage from them still remains and Nebraska farmers and ranchers will need help for some time yet to rebuild. “Stay Strong Nebraska” is an initiative created to do just that, providing easy access to the Nebraska Farm Bureau Disaster Relief Fund and Nebraska Cattlemen Disaster Relief Fund with all donations remaining in the state.

Federal officials estimate the bomb cyclone weather phenomenon and subsequent flooding caused $1.4 billion in damages in the state of Nebraska. The damage assessment accounts for livestock, crop loss and infrastructure damage, but does not reflect personal property losses such as homes and farm buildings. Steve Nelson, president of Nebraska Farm Bureau, has met with dozens of families in many of the agricultural communities impacted by the recent storms. Listen to the update he gave on the situation at last week’s Water for Food Conference in Lincoln.

WFF19 Presentation by Steve Nelson, Nebraska Farm Bureau

Nebraska Cattlemen is also taking action to help ranchers and cattlemen. Pete McClymont, executive vice president of Nebraska Cattlemen, said the response from the community has been generous and heart-warming. “Gifts received by Nebraska Cattlemen Disaster Relief Fund will be disbursed to cattle producers in need, regardless of membership in Nebraska Cattlemen,” said McClymont. “This entire process has been very humbling knowing some cattlemen and women that were heavily impacted have already turned away assistance. We want every rancher, farmer, producer that has been impacted to know there are monies for qualified applicants. Every dollar given to a fund was donated with those impacted in mind.”

Nebraska-based agency Swanson Russell is helping with the effort and has created some media materials for use, including radio and TV spots, and are encouraging people to use them and spread the word that donations are still needed.

Stay Strong Nebraska 30 second radio spot

Stay Strong Nebraska Media Kit

AgWired Animal, AgWired Energy, AgWired Precision, Audio

Indiana Corn Holds High Octane Fuel Summit

Cindy Zimmerman

It was a full house last week at the Dallara IndyCar Factory for the Indiana Corn Growers High Octane Fuel Summit. The annual event was rebranded by the Indiana Corn Growers Association (ICGA) to cover marketing and equipment topics in addition to policy discussions

Among the presentations at the event was a panel discussion moderated by American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty on future fuels.

The panelists Tom Navarre of Family Express, Nathanial Doddridge of Casey’s General Store, and Martin Dunifon with Gasoline Equipment Services Company discussed real life E15 and flex fuel station conversion, benefits and challenges of offering higher ethanol blends, and the growth of ethanol sales in their markets.”

Renewable Fuels Association president and CEO Geoff Cooper also presented at the event.

ACE, corn, Ethanol, Ethanol News, RFA

U.S. Grains Council Board Names Next President And CEO

Cindy Zimmerman

U.S. Grains Council (USGC) Director in Mexico Ryan LeGrand has been named as its next president and chief executive officer, effective next month.

LeGrand joined the organization in Mexico in 2015 and has served as the director of the Council’s Mexico City office since 2016. In this capacity, he has overseen the expansion of the Council’s programming in that country to include ethanol promotion and worked to steady relations with the U.S. and Mexican feed and livestock industries during the negotiations of the U.S.-Mexico-Canada Agreement (USMCA).

“I am honored to have been selected for this role at the Council and look forward to expanding trade opportunities for the grain, ethanol and related products we promote around the world,” LeGrand said. “The American farmer works extremely hard each year to produce quality crops, and I look forward to working with our members and staff to continue our mission of opening, maintaining and defending foreign markets.”

During his tenure with the Council in Mexico, LeGrand has also led efforts for U.S. grains including increasing U.S. DDGS demand, cultivating both large and small craft brewers to purchase more U.S. barley and encouraging sorghum use by Mexican livestock producers.

LeGrand previously worked for Gavilon as the director of ingredients in Mexico, located in Guadalajara, managing the company’s feed ingredients trading, import and distribution throughout the country. LeGrand also served as the director of exports for Hawkeye Gold, LLC, exporting DDGS to Latin America and Asia. Early in his career, he worked a year in the Council’s Washington office as a manager of international operations.

LeGrand holds a bachelor’s degree from Oklahoma State University in international business.

Listen to this interview with LeGrand from the 2016 Export Exchange in Detroit

Sharing the Benefits of #Ethanol with Mexico –
Interview with Ryan LaGrande, USGC

Audio, Ethanol, Ethanol News, Grains, USGC

New Mexico Welcomes E15

Cindy Zimmerman

New Mexico has become the 31st state to add E15 at the pump for consumers.

According to Growth Energy, a Murphy USA station in Albuquerque is now one of nearly 1,800 locations nationwide to offer E15, also known as Unleaded 88.

Growth Energy works with leading retailers including Casey’s, Cumberland Farms, Family Express, Holiday, Kum & Go, Kwik Trip, Minnoco, Murphy USA, Protec Fuel, QuikTrip, RaceTrac, Royal Farms, Rutter’s, Sheetz, and Thorntons to offer E15 Unleaded 88 as a choice for drivers.

E15, Ethanol, Growth Energy