EPA Denies RFS Waiver

WASHINGTON, D.C – A proposal to waive the nation’s Renewable Fuel Standard (RFS) requirement for corn-based ethanol production due to drought conditions has been nixed by the U.S. Environmental Protection Agency, to the consternation of livestock groups and elation of corn and ethanol proponents.

“We recognize that this year’s drought has created hardship in some sectors of the economy, particularly for livestock producers,” announced Gina McCarthy, assistant administrator for EPA’s Office of Air and Radiation, on November 16. “But our extensive analysis makes clear that Congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact.” America’s RFS was created to ensure that transportation fuel sold in the U.S. contains a minimum volume of renewable fuel. This is the second time in five years a waiver of the RFS has been denied by the EPA, instead letting the market dictate conditions. “The U.S. EPA’s decision reflects a thorough review of all the appropriate data,” said Jeff Scates, Illinois Corn Growers Association (ICGA) president. “We believe that as is indicated by EPA in their decision, the market system has done its job in this year of unfortunate heat and drought, and the subsequent increase in commodity prices across the board. “U.S. ethanol production has been reduced in response. More than 800 million gallons of production has been idled this year. In fact, two Illinois ethanol plants closed at least temporarily during this time. Ethanol exports have also reacted to the market signals, with this year’s expected exports to be in the range of 750 million gallons, down from over 1 billion gallons in 2011.” (EPA, ICGA press releases)

Borgic: Hog Facility Expansion Could Resume in ‘13

DUNLAP – When the Illinois Pork Producers Association (IPPA) held a Fall Roundtable meeting in Dunlap on November 15, R.F.D. News & Views was invited along on a “fly on the wall” basis. The roundtable meeting, held family-style at Bernardi’s in Dunlap (thanks again, Pam!), allowed pork producers from IPPA District 4 to offer opinions and ask questions of IPPA officials about legislative, regulatory and other issues. We asked Mike Borgic, IPPA director of membership and outreach, whether hog facility expansion in Illinois is possible with grain for feed selling high and prices for hogs remaining steady. “At the beginning of this year it looked like there was going to be a lot of expansion, or people putting up new barns. Then spring and summer saw corn prices shoot upward and hog prices stay fairly the same, so people started to back off of their (expansion) plans,” said Borgic. ”Depending on the price of corn in the next couple of months, we may have a resurgence next spring. There is opportunity to make money on pigs, but can you capture that opportunity?” Borgic also led the 20-or-so farmers in attendance through discussions on issues affecting pork production including NPDES permits, CAFO regulations, the state LMFA, the proposed RFS waiver, feed availability and more.

ISA: Strong Soy Protein, Oil Key to Competing

BLOOMINGTON – Since customers purchase soybeans based on protein and oil content, Brazil is taking away market share from U.S. soybean producers because domestic soybeans no longer supply the same standard quality levels. This is according to the Illinois Soybean Association (ISA), which hosted workshops in Bloomington, Cairo and Decatur this month to educate farmers about how prices they receive at elevators is determined by the value of soybean protein and oil. Increasing protein and oil content is key to enhancing farmer profitability and protecting market share, representatives from Bunge, ADM and Cargill stressed to farmers who attended the sessions. “We used to guarantee our soybean meal had 48 percent protein but had to move our guarantee to 47.5 percent with discounts down to 46.5 percent because of inconsistent soybean quality, which upset customers,” according to Jennifer Bareksten, protein export trader for ADM. “Brazil guarantees 48 percent so we are losing favor in the global market.” Soybeans grown nearer the equator naturally produce more oil and protein than those grown farther away due to prolonged growing seasons and higher average temperatures, said Dan Davidson, ISA director of strategic research.

Local Farmers Sought for Strip-till Trials

BLOOMINGTON – The Ill.Soybean Association, Ill. Fertilizer & Chemical Association and the Ill. Council on Best Management Practices (C-BMP) are seeking soybean producers in the Lake Bloomington and Indian Creek watershed districts who are willing to conduct field-sized strip-till trials on a portion of their land. The purpose is to explore new approaches to help boost per-acre yields while showcasing good environmental practices, according to Dan Schaefer, director of nutrient stewardship for C-BMP. “Strip-till is not often used prior to soybean planting, nor is it common to apply phosphorus (P) and potassium (K) fertilizer following corn harvest for the next soybean crop. Thanks to Illinois soybean checkoff funding, we are going to examine the effects of these two practices on soybean yields compared to those of a farmer’s usual tillage method.” Ron Moore, a soybean farmer who represents ISA on C-BMP, said weather conditions this fall created favorable conditions for the profitability trials. “It gives us an opportunity to see yield data and transfer the successful aspects of the study to more fields. It also shows environmental agencies and customers across the entire industry that soybean farmers are investing in research and new technology, such as the strip-till bar and fertilizer controllers, to reduce runoff and rates on our farmers,” Moore stated. For more info, contact C-BMP at dschaefer@illinoiscbmp.org. (ISA News Release)

Illinois Farm Fact:

In 1900, 38.8 percent of U.S. labor was on farms. In 1990 that figure dropped to 1.7 percent due to mechanization, economic conditions, and the western expansion of agriculture coming to an end. (USDA Little-Known Factoid)

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