Caucus Results Don’t Seem to Reflect Ag Views

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “Do Iowa Caucus results reflect ag views?”

The early caucuses may influence some voters, however not the majority of those that took our latest poll. 63% said the Iowa Caucus results don’t reflect their ag views. Ag issues are continually at the forefront of our minds, but few leading candidates have taken to addressing many of those key issues. Let’s hope we hear their take soon.

Here are the poll results:

  • Yes – 13%
  • Not mine – 63%
  • Too early to tell – 16%
  • Don’t know – 4%
  • Other – 4%

Our new ZimmPoll is now live and asks the question, How many farm shows/conferences do you attend?

Farm show and conference season is in full swing and the AgWired team has been out on the agriblogging in full force. Many are located in warmer temps and not only do they provide little mini vacations for farmers and ranchers, but also provide optimal education opportunities and ample time for networking. So, how many do you attend each year?

ZimmPoll

Energy in the Budget Proposal

Cindy Zimmerman

2017-budgetAs promised, energy was a focus of President Obama’s 2017 budget proposal, officially unveiled on Tuesday, with a promise to “move our economy away from energy sources that fuel climate change.”

The budget provides for $7.7 billion in discretionary funding for clean energy research and development across 12 agencies, including $106 million for USDA to “support development of biobased energy sources that range from sustainable and economical forest systems and farm products to increased production of biofuels.”

According to USDA, the budget proposal includes a $25 million increase in competitive research funding to support development of biobased energy sources and earmarks $450 million for the Rural Energy for America Program to assist agricultural producers and rural small businesses in developing renewable energy systems, energy efficiency improvements, and renewable energy development through loans and grants.
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biofuels, Energy, Government, USDA

December Ethanol Exports Surge

Joanna Schroeder

According to a blog from Geoff Cooper, senior vice president for the Renewable Fuel Association (RFA), U.S. ethanol exports did well in December 2015 with 81.7 million gallons (mg) of product exported, 39 percent higher than November 2015. Canada was the top destination receiving 21.3 mg followed by Oman (13.4 mg), China (10.6 mg), the Philippines (8.8 mg), and the Netherlands (8.8 mg). U.S. ethanol exports totaled 836 mg in 2015—identical to the 2014 final tally according to recent report from RFA that includes details on top export destinations, shifts in the marketplace, ethanol import volumes, the value of exports, and other key data regarding U.S. ethanol trade in 2015.

Monthly US Ethanol Exports and ImportsDenatured fuel ethanol exports totaled 50.3 mg in December, the highest monthly total of the year and up 57 percent from November. At 19.3 mg, Canada was again the leading importer of denatured product. December exports of undenatured fuel ethanol tallied at 28.6 mg, up 18 percent from November. The Philippines (8.8 mg), Brazil (6.4 mg), the Netherlands (4.5 mg), Belgium-Luxembourg (2.6 mg), and Mexico (2.2 mg) were the top five markets for undenatured product in December.

U.S. fuel ethanol imports fell to 9.4 mg in December, less than half of the November import volume. Total imports of fuel ethanol finished the year at 93.2 mg, up slightly from 2014. Brazil represented more than 99 percent of the December imports with the remaining imports coming from Germany.

Exports of U.S. distillers dried grains with solubles (DDGS)—the animal feed co-product manufactured by dry mill ethanol plants increased slightly in December, with 988,356 metric tons (mt) of outbound shipments. That was up 5 percent from November, but still well below monthly export levels recorded from May through October. DDGS exports finished the year at 12.55 million mt, a new annual record.

China remained as the top market for U.S. DDGS exports in December, despite setting an 11-month low. China received 226,049 mt, down 20 percent from November and less than one-quarter of the DDGS volume imported as recently as July. However, other markets saw big increases including Mexico, South Korea, Canada, and Vietnam. For the full calendar year, China was the top market followed by Mexico.

biofuels, Ethanol, Ethanol News, Exports, RFA

South Dakota Gets Grant to Increase Ethanol Use

Joanna Schroeder

The USDA Commodity Credit Corporation has given a $1.5 million grant to the South Dakota Governor’s Office of Economic Development (GOED) to increase the state’s use of ethanol. The program receiving the funds is the state’s Ethanol Infrastructure Program that helps fuel retailers install blender pumps to sell mid-level and high-level ethanol blends such as E15 and E85. With the additional funds, retailers will be able to receive 90 percent of the first $29,000 in costs for each blender pump. The goal is to have 74 new blender pumps installed statewide with the support of the USDA grant.

EthanolBlenderPumpinSouthDakota“As the ethanol industry continues to grow, we feel it is imperative to utilize more of this environmentally friendly renewable energy source. The grant monies we received from the USDA will help facilitate this initiative,” said GOED Commissioner Pat Costello.

Another change to the program allows for additional funding for the state’s storage tank installation program that assists stations purchase and install additional fuel storage if needed for the installation of new ethanol blender pumps. The storage tank program will now pay costs of a new tank at 90 percent of the first $40,000 in costs.

To help promote and manage the application process, the GOED has contracted with Project Solutions, Inc. (PSI), a company based in Rapid City. “PSI will become our front line in working with station owners on questions about the program. The company will help walk them through the application process, as well,” said Costello who added their number one goal is to increase ethanol usage in South Dakota.

The first round of applications is now being accepted, and the deadline to apply is March 1, 2016 with a fully completed Formal Application will need to be submitted by March 15, 2016 to remain in the first round cycle. Additional application round deadlines are scheduled for April 15 and June 15, if required.

biofuels, Ethanol

Budget Expected to Double Clean Energy Funding

Cindy Zimmerman

The president’s budget to be released today would double funding for clean energy research and development by 2020, according to President Obama’s weekly address made on Saturday.

obama-address-2-6“This will include new investments to help the private sector create more jobs faster, lower the cost of clean energy faster, and help clean, renewable power outcompete dirty fuels in every state,” said Obama. “And while Republicans in Congress are still considering their position on climate change, many of them realize that clean energy is an incredible source of good-paying jobs for their constituents. That’s why we were able to boost clean energy research and development in last year’s budget agreement. And I hope they support my plan to double that kind of investment.”

The president also plans on proposing a $10-a-barrel tax on oil to fund clean energy initiatives.

Energy, Government

McConnell Urges Senate to Move Energy Bill

Cindy Zimmerman

mcconnellSenate Majority Leader Mitch McConnell took to the Senate floor on Monday to urge his colleagues to move the bipartisan Energy Policy Modernization Act forward after Democrats blocked the bill and the amendment process last week over an impasse on including aid to address the Flint, Michigan water crisis.

“The Energy Policy Modernization Act is the product of a year’s worth of constructive and collaborative work,” said McConnell. “In the Energy Committee, it passed overwhelmingly with the support of both parties…(and) more than 30 amendments from both Democrats and Republicans have been adopted already.”

McConnell encouraged Democrats to reconsider actions taken last week. “The Energy Policy Modernization Act is broad, bipartisan legislation designed to help Americans produce more energy, pay less for energy, and save energy — all while helping strengthen our long-term national security,” he said. “I’m asking colleagues to take ‘yes’ for an answer and allow the open amendment process to continue — so we can pass it, which is so important to helping our country prepare for the energy demands of today and the energy opportunities of tomorrow.”

Energy, Government

Donnelly ‘Friend of Farmers’ for Support of Ethanol

John Davis

in-corn-donnellyA U.S. senator’s support of ethanol and the Renewable Fuel Standard has garnered him the inaugural “Friend of Farmers” Award from the Indiana Soybean Alliance and Indiana Corn Growers Association. This news release says Sen. Joe Donnelly was recognized for his unwavering support of Indiana farmers’ policy efforts.

The Friend of Farmers Award was established by ICGA’s Board of Directors and ISA’s Membership and Policy Committee to recognize a public official at the state, federal, or local level who advocates for agriculture.

“Senator Donnelly has been among the top supporters of ethanol and the Renewable Fuel Standard of anyone in Washington,” said Mike Nichols, a farmer from Spencer County and president of the Indiana Corn Growers Association. “At a time when big oil is funneling millions of dollars to kill this law that increased demand for the corn we grow, reduces our dependence on foreign oil, and promotes rural economic development, Senator Donnelly has stood strong for Indiana corn farmers.”

Donnelly also led a charge in 2015 to roll back the Environmental Protection Agency’s Waters of the United States (WOTUS) rule.

“When the EPA overstepped its authority by regulating farm fields and roadside ditches, Senator Donnelly was one of the first to stand up for farmers and introduce legislation to stop this overreach,” said Jeanette Merritt, a farmer from Peru and chair of ISA’s Membership & Policy Committee. “Regardless of party, Senator Donnelly has been a bipartisan leader for Indiana farmers.”

Donnelly says working on behalf of agriculture is one of the most important parts of his job.

“Hoosier farmers are growing the food and fiber that drive our economy, strengthen our local communities, and help feed the world. As I’ve always said, I’m the hired help and I’m committed to listening to Hoosier farmers and working together for commonsense, bipartisan solutions that promote agriculture,” said Donnelly. “I am honored to receive the inaugural Friend of Farmers award, and will continue working on behalf of all Hoosier farmers and our agriculture community.”

corn, Ethanol, Ethanol News, RFS

Novozymes Organization Restructuring

Cindy Zimmerman

Novozymes_logoNovozymes has announced changes in the company’s organizational structure and executive leadership team with the formation of three distinct divisions – Household Care & Technical Industries, Agriculture & Bioenergy and Food & Beverages. The aim of the organizational change is to enhance Novozymes’ ability to deliver more innovation to customers with more speed and commercial impact.

To lead the three divisions, Novozymes has appointed former Vice President of Sales Tina Sejersgård Fanø as Executive Vice President, and former Vice President of Sales Anders Lund to head the Agriculture and Bioenergy division.

The three divisions will be supported by one central Research, Innovation & Supply organization headed by COO & EVP Thomas Videbæk and Corporate Functions headed by CFO & EVP Benny D. Loft. Peder Holk Nielsen will continue as CEO & President.

Novozymes

Minnesota Biodiesel Looks to Make it in Big Apple

John Davis

mnbioheatA group of Minnesota soybean farmers recently made the trip to New York City to see how one of their products, biodiesel, is making a big splash in the Big Apple. This article from the Minnesota Soybean Research & Promotion Council says the group was able to see several success stories of the green fuel being used in the big city, such as the New York Department of Sanitation that runs about 3,000 vehicles on a minimum of B5, or 5 percent biodiesel, and how bioheat, a mix of biodiesel with heating oil, is keeping New Yorkers warm at home.

The New York Department of Sanitation (DSNY) is no stranger to using biodiesel in its fleet. City vehicles are required to run a blend of 5 percent biodiesel, or B5. But DSNY Deputy Commissioner Rocky DiRico said his department has run blends of B20 for years. “We’ve had our obstacles along the way while pursing green,” he said. “We started using biodiesel eight or 10 years ago, and we’ve been pushing the move to B20 for a long time.” DSNY has nearly 6,000 vehicles in its fleet, and while not all of them are diesel engines, roughly 3,000 run on biodiesel. “I don’t know if there is a more simpler, more economically feasible way to cut our fossil fuels down,” he said.

Spiro Kattan, DSNY Supervisor of Mechanics of Clean Fuels & Technologies Division agrees. “We went citywide with B5 In 2007, and today, from April to November, we are a B20 fleet and from December to March we are a B5 fleet,” he said. “We’ve displaced over 4 million gallons of fossil-based petro fuels, something we are very proud of, just by using biodiesel the past several years.”

Minnesota Soybean Research & Promotion Council (MSR&PC) Vice Chairman Craig Bangasser attended the National Biodiesel Board Bioheat Tour to New York City to learn about NRDC and DSNY, as well as other agencies using biodiesel and Bioheat. He came away impressed. Bangasser says it’s up to the Council to figure out how Minnesota can play a role in the growing biodiesel market in NYC.

Biodiesel, Soybeans

Phibro Animal Health on Ethanol and FSMA

Cindy Zimmerman

PhibroEthanol performance and animal health go hand in hand at Phibro Animal Health Corporation, which is why the revised FDA Food Safety Modernization Act (FSMA) regulations are an important focus for the company right now.

Phibo Animal Health Senior Vice President for scientific and regulatory affairs Richard Coulter says many ethanol producers are concerned about what impact the new regulations have on their plants and the distillers grains by-products they produce that are used for animal feed. “We see a lot of confusion at the moment in producers looking to adopt FSMA regarding the FDA’s approach to antimicrobial use for controlling bacterial contamination in ethanol production,” said Coulter in an interview with Domestic Fuel. “The reason that confusion is arising is that the FDA simultaneously has another initiative, Guidance 209, involving veterinary medicine and the use of antibiotics in food animals.”

phibro-coulterGuidance 209 requires that no antimicrobials may be used after the end of 2016 in food animals without the specific authorization of a veterinarian. “So a number of ethanol producers have thought that since they’re making ethanol, and since they’re making distillers grains, and distillers grain is an animal’s feed, that they may need a veterinarian to write them a prescription or a veterinary feed directive to allow them to use antimicrobial products in ethanol, but that’s not true,” says Coulter, explaining that Guidance 209 relates only to veterinary drugs.

Ethanol plants use antimicrobials such as the Phibro Ethanol Performance group product Lactrol to reduce bacterial contamination during alcohol fermentation and Coulter says regulations are very clear that the use of most antimicrobials in ethanol production are still authorized as safe under the new FSMA regulations.

“Lactrol has a GRAS (generally recognized as safe) designation, so it may be used in ethanol, and when its used in accordance with the label it is GRAS and the distillers grain that arises from that ethanol production may be used in animals with no impact from FSMA,” Coulter explained. “The issue that many producers are concerned about is that if Lactrol is used in ethanol production to control bacterial contamination, would there be unacceptable residues or unhealthy or harmful dangerous resides of Lactrol that would persist into the distillers grains that would cause a hazard to animals or food that they would produce, and the answer is no.”

Learn more in this interview: Interview with Richard Coulter, Phibro Animal Health

Audio, Distillers Grains, Ethanol, Ethanol News, Processing, Production