R. F. D. News & Views, January 22, 2014

Bustos, Enyart Protest EPA RFS Proposal

BLOOMINGTON – The Illinois Corn Growers Association (ICGA) is applauding the efforts of Representatives Cheri Bustos and Bill Enyart, both Illinois Democrats, in expressing their dismay over the U.S. Environmental Protection Agency’s (EPA) recent proposal to reduce the nation’s renewable volume obligations under the Renewable Fuel Standard (RFS). After calls from farmer constituents, the lawmakers met with EPA Administrator Gina McCarthy to protest the reduction of the overall requirement for renewable fuels from 18.15 billion gallons to 15.21 billion gallons.

Bustos, a member of the House Agriculture Committee, told McCarthy that lowering the amount of renewable fuels in gasoline would negatively affect rural communities in Illinois by threatening jobs, raising prices at the pump and deterring investment in biofuels and biofuel infrastructure. Enyart said the proposed 2014 RFS will affect corn prices and slow the U.S.’ commitment to renewable fuels to a crawl.

“Corn prices are already falling due to a record harvest and reducing the renewable fuel levels will cause prices to fall even further, hurting our southern Illinois farmers,” said Enyart in an ICGA news release. “This proposal also sends the message that the U.S. is backing off its commitment to biofuels as a pivotal component of our national energy policy. I urged the EPA Administrator to reconsider this proposal and recommit to the support of biofuels research and production.”

 

Expert: Proposed RFS Harmful to Soybean Growers

URBANA  – The proposed rulemaking by the U.S. Environmental Protection Agency (EPA) regarding the 2014 Renewable Fuels Standard (RFS) has several important implications for crop markets, according to a University of Illinois professor. The ramifications are due to the implied mandates for renewable biofuels and the impending blend wall, said Dr. Scott H. Irwin, Laurence J. Norton Chair of Agricultural Marketing for the U of I. Some market analysts have labeled the EPA’s proposed 2014 RFS as the biofuels industry’s worst nightmare. Corn growers are concerned that a reduction in the EPA’s mandate for corn-based ethanol could further erode already-plummeting corn prices. Irwin, however, feels that the proposed volume obligations will have a more detrimental effect on the biofuels market and, in turn, soybean production and value.

“Most people are getting it wrong that the EPA proposal was highly negative to the corn market and corn prices,” said Irwin. “My analysis is that the EPA 2014 proposed RVOs are neutral for the price of corn for the next year or two. I don’t think it will affect prices at all. Next year, (the RFS) would be bad for the biodiesel industry and the soybean producer. In the next year it would be basically neutral for the corn producer and other users of corn like livestock producers. Probably as we move forward in the next couple of years, it will be bad for corn producers in the sense that total ethanol use is capped at the blend wall.”

Irwin has published his findings on the U of I “farmdoc” website and he shared his research directly with farmers during the recent U of I Illinois Farm Economics Summit in Bloomington.

 

RFS Comment Period Ending Jan. 28

WASHINGTON, D.C. – The U.S. EPA announced it will end its public comment period on proposed changes to the 2014 RFS volume requirements (see above articles) on January 28, 2014. Anyone wishing to submit comments may do so through the National Association of Wheat Growers’ website at www.saverenewablefuel.org/submit-your-comment. (NAWG Weekly Update)

 

Cropping Seminar Coming to Normal 

CHAMPAIGN – The Illinois USDA-Natural Resources Conservation Service (NRCS) is offering area farmers a chance to spend a day with peers and resource experts learning new ways to improve profitability and protect their farm’s greatest asset: the soil. The 2014 Conservation Cropping Seminars are set for January 28 in Mendota, February 27 in Mt. Vernon and March 13 at Heartland College in Normal. Topics covered include soil health improvements, cover crop success and wise nutrient management.

The event is sponsored by Illinois NRCS, Ill. Soil and Water Conservation Districts, Ill. Dept. of Agriculture, Ill. Stewardship Alliance and American Farmland Trust. Cost is $20 with online registration available at www.ccswcd.com (click on seminar logo).

 

House Omnibus Bill Would Fund ARS, NRCS

WASHINGTON, D.C. – When the House of Representatives passed its $1.1 trillion omnibus appropriations bill last week to fund the federal government for the remainder of FY2014, it included over $3 billion for ag research and conservation programs. Of area interest, the bill provides $2.6 billion for ag research programs under the National Institute of Food and Agriculture and the USDA Agricultural Research Service, which operates the National Center for Agricultural Utilization and Research (NCAUR), known locally as the Peoria Ag Lab.

The funding includes $316 million for the Agriculture and Food Research Initiative, a competitive ag research grant program researching crop diseases, improving food safety and water quality and focusing on drought, invasive species and herbicide resistance issues. In addition, it provides $826 million for the Natural Resources Conservation Service (NRCS) to help farmers, ranchers and rural landowners conserve their land and improve air, soil and water quality.

A full summary of House omnibus bill agriculture appropriations spending can be accessed at www.appropriations.house.gov/uploadedfiles/01.13.14_fy_2014_omnibus_-_agriculture_-_summary.pdf. (NAWG Weekly Update)

 

Illinois Farm Fact:

Glyphosate-resistant Palmer amaranth has been confirmed in nine Illinois counties. Samples from five Illinois counties are currently being processed to confirm or disprove its presence. (University of Illinois Dept. of Crop Sciences)


(Tim Alexander is a freelance reporter who writes agriculture, news and feature articles for the News Bulletin, Farm World and many other publications.)