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EPA Increases RFS Volumes, Mixed Reviews from U.S. Agricultural and Renewable Fuels Groups

 

The Environmental Protection Agency (EPA) Monday released its final Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2014, 2015 and 2016 that refiners have to meet in blending biofuels with gasoline. The agency increased the blending requirements across the board, to a total of 18.1 billion gallons, including 14.5 billion gallons of undifferentiated biofuels or corn ethanol and 230 million gallons of cellulosic ethanol.  The announcement received mixed responses from U.S. Agriculture Secretary Tom Vilsack, the National Corn Growers Association (NCGA), Growth Energy, the Renewable Fuels Association (RFA) and the National Chicken Council.  

 

"The rule released today is a positive step forward providing for continued growth in all parts of the Renewable Fuel Standard-advanced, biodiesel, cellulosic, and conventional-building on the Obama Administration's and USDA's commitment to biofuels and American-grown renewable energy," Vilsack said.  Click here to read more from Ag Secretary Vilsack.

 

 

"America's corn farmers are proud to grow a cleaner burning, renewable fuel source for America and the world," NCGA President Chip Bowling.  "In July, we asked the Environmental Protection Agency to restore the 2014-16 corn ethanol renewable volume obligation to comply with the Renewable Fuel Standard as passed by Congress and signed into law.  While we are pleased to see the EPA take a step forward and revise its original proposal, the fact remains that any reduction in the statutory amount will have a negative impact on our economy, our energy security, and the environment. It is unfortunate that Big Oil's campaign of misinformation continues to carry weight in the court of public opinion, and in this decision."  Click here to read more from NCGA.

 

 

Growth Energy responded in saying "they were pleased that the Renewable Volume Obligations (RVOs) have been finalized after such a long delay and that the levels have increased from the original proposal. This final rule makes it possible to drive the growth of higher ethanol blends through the so-called blend wall, giving consumers choices at the pump, such as low-cost E15. Additionally, the numbers for 2016 represent a final rule closer to the statutory levels established by Congress, avoid the "reset" and indicate a more certain future for renewable fuels."  Click here to read more from Growth Energy.

 

 

"EPA's decision today turns our nation's most successful energy policy on its head," RFA President and CEO Bob Dinneen said. "When EPA released its proposed RFS rule in May, the agency claimed it was attempting to get the program back on track. Today's decision, however, fails to do that. It will deepen uncertainty in the marketplace and thus chill investment in second-generation biofuels. Unlike Big Oil, the ethanol industry does not receive billions in tax subsidies and the RFS is our only means of accessing a marketplace that is overwhelmingly and unfairly dominated by the petroleum industry. Today's decision will severely cripple the program's ability to incentivize infrastructure investments that are crucial to break through the so-called blend wall and create a larger market for all biofuels."  Click here to read more from the RFA.

 

 

The livestock industry is also less than happy with the EPA- but not for the same reasons as offered by Bob Dineen. "EPA's action will cost consumers at the pump and on the plate by effectively raising fuel and food prices," said NCC President Mike Brown. "By increasing the mandated volume of ethanol beyond the blendwall for next year, and retroactively increasing the mandates for 2014 and 2015, more corn from feed and food will be diverted into fuel production, resulting in increased costs for poultry and livestock producers. Since the RFS was enacted, chicken producers alone have incurred more than $50 billion in higher actual feed costs due to the ethanol mandates, and the tab keeps getting run up under this broken law."  Click here to read more from NCC.

It's great to have one of the premiere businesses in the cattle business partner with us in helping bring you our daily Farm and Ranch News Email- National Livestock Credit Corporation.  National Livestock has been around since 1932- and they have worked with livestock producers to help them secure credit and to buy or sell cattle through the National Livestock Commission Company. 

 

LMIC's Jim Robb Offers Cattle Market Outlook for 2016 and 2017

 

There are lots of ways to describe 2015 in relationship to the beef cattle marketplace- a Roller Coaster- Volatile- Breathtaking. Some of these same descriptions may be ahead for U.S. beef producers in 2016 as well. That's according to Livestock Market Information Center Director Jim Robb.  With herd expansion underway, there will be larger beef supplies and lower prices next year. Robb said some of the extreme swings of 2015 could moderate in 2016.


"To help counterbalance some of the increase in beef production, rather clearly I think our forecasts are, we'll have year-to-year decline in beef imports especially from Australia and we'll. probably have a little less competition coming from the competing meats, especially the pork and chicken," Robb said. "We really felt in the last two months, the bulk of the large year-to-year increase in U.S. chicken and pork output and those are moderating rather quickly, especially on the chicken side. So the year the year increases in 2016 in those competing meats will be much more modest."


In 2016, there will be will larger beef production. Robb said the U.S. will see its first year over year increase in total cattle slaughter since 2013.   He thinks overall there will be cyclically lower cattle prices, but it won't be as dramatic as recent weeks.  Click here to listen to our Beef Buzz report with Jim Robb about the outlook for 2016 and 2017.  

National FFA Organization Joins #givingtuesday Movement

 

The National FFA Organization and the National FFA Foundation have joined #GivingTuesday - a global day of giving that harnesses the collective power of individuals, communities and organizations to encourage philanthropy and to celebrate generosity worldwide. Occurring this year on December 1, #GivingTuesday is held annually on the Tuesday after Thanksgiving (in the U.S.) and the widely recognized shopping events Black Friday and Cyber Monday to kick-off the holiday giving season and inspire people to collaborate in improving their local communities and to give back in impactful ways to the charities and causes they support.


"Donations to the National FFA Foundation go to support nearly 630,000 FFA members in the pursuit of premier leadership, person growth and career success. Giving Tuesday is a unique opportunity for FFA supporters to celebrate the impact of their generosity on a global day of giving," said National FFA Foundation President Molly Ball.


Those who are interested in joining National FFA Foundation's #GivingTuesday initiative can visit FFA.org/GivingTuesday.

Dairy Checkoff Partners with Dominos for Black Friday/Cyber Monday Pizza Deal

 

The dairy checkoff's work with partners such as Domino's continues to revitalize the pizza category to benefit dairy farmers.


The checkoff's cheese work in pizza and foodservice has helped move 4 billion incremental pounds of milk from January of 2014 to July of 2015, according to Dairy Management Inc., which manages the national dairy checkoff.


Much of this success results from the checkoff's work locally and nationally with partners such as Domino's, said Neil Hoff, a Texas dairy farmer and chairman of the United Dairy Industry Association, the federation of state and regional dairy checkoff organizations.


"Pizza consumption was on a steady decline for five-plus years and had been a driver for increased consumption the prior 25 years," Hoff said. "With that business scenario, we entered the marketplace with Domino's in 2009 to turn the category around. They said, 'What can we do together?' This created a catalytic effect in the pizza industry to put more cheese on the pies."


Click here to read more about the success that came this year with the launch of the American Legends specialty pizza line at Domino's.

El Nino Influences on Oklahoma's Upcoming Wildfire Season

 

Wildfire is always a hot topic this time of year. The dormant season, which occurs from November through early April in Oklahoma, usually sees the majority of fires on an annual basis.


This season has two opposing factors moving the fire danger zone needle. The first is the large amount of rainfall that fell on a major portion of the state this spring and summer.


"Rain fostered the growth of vegetation and as a result, many areas of the state have greater than normal herbaceous and small woody shrub fuel loads," said J.D. Carlson, fire meteorologist at Oklahoma State University and program manager of OK-FIRE. "This factor would tend to increase the likelihood of wildfires, as well as more intense ones."


Carlson also is part of a research team at OSU that has investigated the linkages of soil moisture to wildfire activity.  Click here to read more.

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Wet Weather Delays U.S. Cotton Harvest, Wheat Crop Showing More Improvement

 

The nation's fall harvest is nearly complete, but the wet weather continues to hamper the nation's cotton harvest. The U.S. Department of Agriculture Monday reported the nation's sorghum harvest was 98 percent complete. That's in line with the five year average. Peanuts were 93 percent harvested. That's six points behind average. Nationally, cotton harvest was 80 percent complete. That's eight points behind the average. Cotton harvest remains less than 90 percent complete in Alabama, Arizona, Georgia, Kansas, North Carolina, Oklahoma, South Carolina and Texas.


The nation's wheat crop condition continued to show improvement. USDA reported 55 percent of the crop was in good to excellent condition, 36 percent fair and nine percent in poor to very poor condition. The crop gained two points in the good category. A year ago this week, 58 percent of the crop was in good to excellent condition.


Click here for the full National Crop Progress report.


Click here for the full Oklahoma report.


Click here for the full Texas report.


Click here for the full Kansas report.


This is the final weekly crop weather report for the 2015 season. A monthly crop weather report will be available on January 4, 2016. 

This N That- December 10th Set by Argentines, OSU Equine Squad Wins National Title and NFU Calls for Climate Change Deal that Helps Deliver Global Food Security 

 

 

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