Hog Economics in the Biofuels Era

“Hog Economics in the Biofuels Era” was the topic of a presentation by Purdue University economist Dr. Chris Hurt at the Boehringer Ingelheim Vetmedica Swine Health Seminar in North Carolina.

Dr. Hurt says government policies like biofuels and even food stamps were built upon a “psychology of surplus” to increase prices. “We continue to see a psychology of surplus in our policy from Washington, when it turns out we are in a period of shortage of basic food ingredients,” he said.

Hurt says that corn for ethanol has been a demand shock for the market since 2005, but another big demand shock has been soybeans to China. “If you put it on acres of land, back in 2005 we were using about 16 million acres for those two demands,” he said. “By the time we got to the 2010 crop, that was 46 million acres – almost a tripling of the acreage.”

The hog industry has finally reduced herds enough to adjust to the higher feed prices, which has increased consumer prices for pork and that has led to stagnated growth for domestic consumption. However, Hurt says exports are increasing tremendously and now make up 20% of production, with big demand coming from Mexico and China in particular.

Listen to my interview with Dr. Hurt here: Dr. Chris Hurt at BIVI Swine Health Seminar

BIVI Swine Health Seminar Photo Album

Traveling Wall Honors Our Military

I thought this was a cool story to share from the Sturgis Motorcycle Rally. These bikers are huge supporters of our military men and women and it showed.

The Traveling Wall by AVTT was on display at the Sturgis Motorcycle Rally. This wall contains names of those who have lost their life in service to our country, defending our freedom. I met Charlie Weatherly and John Barron both of whom work for AVTT and travel with the exhibit. Outside of the interview with them which you can listen to below John told me that he’s been using ethanol mixed fuel in his motorcycle for years and has never had any problems with it. I had to make sure I asked since my coverage of the rally, mostly on Domestic Fuel, is sponsored by the Renewable Fuels Association.

AVTT (www.avtt.org) is a veteran-owned project that travels the USA to provide a forum for communities to HONOR-RESPECT-REMEMBER all who have sacrificed their lives for our country’s freedom. In so doing, AVTT also honors all Veterans and those currently serving, by letting them know they will never be forgotten. AVTT is funded through sponsorship fees, donations, and sale of merchandise at events. Donations to support AVTT’s mission are qualified charitable tax deductions through The Traveling Wall Foundation, a 501 (c)(3) charitable organization.

Learn more about the Traveling Wall in my interview: Traveling Wall Interview

2011 Sturgis Motorcycle Rally Photo Album

Relaxing at Sturgis With Good Music

I’m betting there are a few Toby Keith fans out there in the AgWired community so I thought I’d share a photo from his performance at the Sturgis Motorcycle Rally at the Buffalo Chip Campground. After a long day of working with the Renewable Fuels Association on their sponsorship of the rally it’s really nice to kick back and enjoy some good music. I’ve got more photos online, including opening act Poison and from Monday’s bands. Tonight’s feature is Gregg Allman and I plan to be there.

2011 Sturgis Motorcycle Rally Photo Album

Rupert Loves Home Grown Fuel

His name is Rupert Boneham but everyone knows him as Rupert, winner of Survivor. Rupert is one of the folks I’ve had the pleasure to meet here at the 2011 Sturgis Motorcycle Rally. In the photo he’s being interviewed on the street before the Legends Ride. I ran into him again out here where I’m staying at the Buffalo Chip Campground.

Rupert has a charitable organization called, “Rupert’s Kids” which is “dedicated to serving an easily overlooked population of youth: those that have become too old for the youth social service system, but are not old enough for the adult social service system. We teach these youth valuable skills and trades, while also empowering them to discover their inner strengths, passions and interests.” I heard him speak about the work his organization is doing and the fact that they’ve never taken any government money. That message alone was well worth bringing to your attention. With donations lagging due to the economy he’s turned to some very creative ways to create funding that includes his own branded video games.

Rupert is from Indiana and is also a big supporter of home grown fuel like ethanol, one of the sponsors of the Sturgis Motorcycle Rally.

Listen to my interview with Rupert here: Interview with Rupert

2011 Sturgis Motorcycle Rally Photo Album

Promoting Ethanol at Sturgis Motorcycle Rally

You might not think of the Sturgis Motorcycle Rally as an agricultural event but there’s a tie-in. That tie is the fact that one of the sponsors of the event and my coverage here and on Domestic Fuel is the Renewable Fuels Association. There is prominent visibility for “Ethanol, Fueled with Pride.”

On location here representing RFA is Robert White (right) being interviewed prior to the start of yesterday’s Legends Ride in Deadwood, SD. The ride ended here where I’m staying at the Buffalo Chip Campground. Cindy asked me to describe the rally when I spoke with her from the CTIC Tour she’s on. I said, “There is no easy way to describe this. The Chip is a temporary city that almost defies description.” I’ll try to do that somehow over the next few days.

Meanwhile, back to ethanol. Robert was interviewed on the street over the Legends event PA and I recorded him describing the importance of this renewable fuel to America. You can listen to the interview here: Robert White Interview

Robert also spoke at a press conference held prior to the start of the ride You can hear his introduction and statement here: Robert White Press Conference

I’ve got a photo album started which you are very welcome to visit: 2011 Sturgis Motorcycle Rally Photo Album

Robert took part in the Legends Ride with his bike. You can see the start of the ride with this video clip:

NCGA and Pioneer Offer Growers NASCAR Dream Day

Start your engines, NASCAR fans, because the National Corn Growers Association (NCGA) and Pioneer HI-Bred are offering NCGA members a chance to win a NASCAR dream day to the Irwin Tools Night Race at Bristol Motor Speedway, Bristol, Tenn., on Saturday, Aug. 27.

The dream day race package includes access to the DuPont-Pioneer hospitality tent, a pit tour, and a visit with racing legend Jeff Gordon. To enter, just visit www.ncga.com/racing and sign up for NASCAR-NCGA’s Fuel for Members Program before 12 pm central time this Friday, Aug. 5. The winner will be randomly selected from those NCGA members who have signed up for the Fuel for Members program.

Fuel for Members is one of the benefits of belonging to NCGA and state corn grower associations, providing exclusive access to discounted NASCAR tickets and merchandise and insider access to America’s most popular sport. Plus, members receive discounts on goods and services from a wide range of NASCAR partners including: UPS, DirecTV, Office Depot and MGM Resorts.

NCGA is part of the American Ethanol partnership with NASCAR, which began racing on 15% ethanol this season.

Don’t delay – sign up today!

Farm Foundation Reports on What’s Driving Food Prices

farmfoundationlogo3The agricultural policy organization Farm Foundation, NFP released a new report today on What’s Driving Food Prices for 2011.

Foundation president Neil Conklin says the report is a follow up to similar studies they commissioned when prices were up in 2008 and 2009. “The purpose of the report this time is to provide both policy makers in the public sector and decision makers and stakeholders in the private sector with information to make difficult choices about food, agriculture and energy policies,” said Conklin. “This time we’ve tried to put some additional emphasis on the medium and long term implications of what’s going on.”

Listen to or download an interview with Neil about the report here: Neil Conklin Interview

Farm Foundation commissioned three Purdue agricultural economists to do the report – Phil Abbott, Chris Hurt and Wally Tyner. According to Tyner, they identified two major commodity demand shocks in 2011 – the use of corn for ethanol and Chinese soybean imports. “In 2005, we were using about 16 million acres to supply all of the ethanol in the United States and Chinese soybean imports,” he said. “In 2010, it took 46.5 million acres, an increase of 189%, just to satisfy those two demands.”

Listen to or download an interview with Wally about the report here: Wally Tyner Interview

“There was a dramatic increase in Chinese imports of soybeans between 2006 and now,” said Abbott. “China imports 86% of their use of soybeans and imported roughly 55 million tons in the last year.” He noted that 40 percent of the increase in Chinese soybean imports in recent years was for building stocks, which he estimates to be about 23% of their use right now, compared to five percent here in the United States.

Listen to or download my interview with Phil here: Phil Abbott Interview

Hurt says another major factor driving prices is market inelasticity, both on the demand and the supply side. “An area on the supply side that we’ve seen is land,” said Hurt. “Today there’s just not any crop land available to shift over to the high demand crops of corn and soybeans.”

Listen to or download my interview with Christ here: Chris Hurt Interview

The report also noted that with grain stocks much tighter, weather is a bigger concern now than it was when prices were up in 2008.

Read the full report here.

Argonne Studying Biofuels Production

CTIC TourDuring the CTIC Indian Creek Watershed Project field tour we heard a presentation from Cristina Negri, an agronomist with the Argonne National Laboratory. Cristina told us about a project they are working on in the watershed to see what types of agricultural production will work best for biofuels. They’re looking for marginal land that doesn’t lend itself to growing corn and looking at alternative crops. Efficiently using nitrogen will be important to whatever crop is found to work best for biofuels. The name of the project is “Biomass Production and Nitrogen Recovery.” You can read about it here (pdf).

To determine the opportunity, relevance and sustainability of a biomass production scenario and BMP that recover marginal land and impaired water to support productivity. This scenario by design maximizes sustainability benefits at the farm and landscape/watershed levels.

Cristina participated in the CTIC tour to learn more about the production practices being used by farmers in the watershed and says she learned a lot. You can learn more about her project from a presentation she gave our tour group during lunch: Cristina Negri Presentation

CTIC Indian Creek Watershed Project Field Tour Photos

AgWired coverage of the CTIC Indian Creek Watershed Field Tour is sponsored by

Get FREEDOM And Learn Truth About Ethanol

During the 2011 International Fuel Ethanol Workshop attendees got a chance to see the new documentary from Josh & Rebecca Tickell. I first met Josh during a National Biodiesel Conference before he produced his award winning film, “Fuel.” Together with Rebecca they have now produced a film that should open a lot of people’s eyes about the myths surrounding ethanol. It is called “FREEDOM.”

FREEDOM is a one-hour documentary that takes a hard look at America’s perilous and unsustainable addiction to foreign oil. It explores the role that Ethanol plays as a homegrown alternative that will boost the domestic economy, create jobs and reduce our need to rely on dangerous and unstable parts of the world for our fuel. Filmmakers Josh Tickell and his wife Rebecca set out on a journey to take a fresh look at Ethanol and try to separate the myth from the hyperbole.

Following the screening which was viewed in a packed room at the FEW, I spoke with them about their latest project.

Rebecca says the devastation in the Gulf of Mexico last year spurred them to look into more alternatives to oil. So they did some checking to find out the truths about our main alternative fuel source, ethanol, and had their eyes opened when they looked into the myths surrounding the industry and the fuel. They spoke to experts on all sides of the debate including the authors of anti-ethanol studies.

They chose the title, “FREEDOM,” because event though we were promised by our current President in his election campaign that he would bring our troops home from the Middle East, we have actually increased the number of our soldiers there. Developing our own renewable fuel choices would give us freedom from that situation. They also point out the complete lack of a fuel choice at the pump and say that’s not freedom either.

The couple is embarking on a 30-city FREEDOM bus tour to promote their new film and you can see the schedule and find out more about the project on their website. You can watch and purchase the film there. They are producing a 90 minute theatrical version of the film too.

Josh/Rebecca Tickell Interview

You may want to consider purchasing the film to show to your neighbors and friends or your favorite skeptic. How about sending a copy to your elected leaders? It’s great for generating conversation!

2011 FEW Photo Album

Our coverage of the 2011 Fuel Ethanol Workshop was made possible by the Renewable Fuels Association.

Iowa Corn Farmers Love IndyCar Promotion

Iowa corn farmers who attended the Iowa Corn Indy 250 got an exciting race, a sold out crowd and a nationally televised platform to showcase the performance value of ethanol. Over 2,500 growers were expected to be in attendance. I didn’t speak to all of them but I did speak with several.

These are the people who are investing their hard earned dollars in educational and promotional campaigns like the one with the IRL and Iowa Speedway and it’s good to know what they think. Here’s a basically random selection of quotes from some of the farmers I spoke with at the event. : Iowa Corn Farmers Speak Out

2011 Iowa Corn Indy 250 Photo Album

Iowa’s Bill Northey Back From China Trip

Iowa’s Secretary of Agriculture, Bill Northey, was one of the corn growers attending the Iowa Corn Indy 250. Here he is in the photo being interviewed by Ken Root. I took my turn with him afterward.

Bill spent two weeks in Korea and China visiting customers of U.S. farm products. He says they discussed and argued a little bit about pork imports but they certainly will keep buying soybeans and even talked “under their breath” about buying some corn. He says “we’d still love to see more pork and beef going in to china.” On the subject of flooding there are some very devastated areas but the state still has a huge crop in the ground. When it comes to the Iowa Corn Indy 250 he can’t say enough about the exposure the industry receives from the race.

You can listen to my interview with Bill here: Bill Northey Interview

2011 Iowa Corn Indy 250 Photo Album

Ethanol Industry Upbeat

I just got back from the 27th International Fuel Ethanol Workshop. It was a good time visiting with my friends in the renewable fuels industry. The mood is certainly better that it was a couple of years ago. That sentiment was noted by Tom Bryan, VP of BBI International, as well. I spoke with him near the conclusion of the event yesterday.

Tom says the technical sessions were extremely well attended. In fact, chairs had to be added to some of them due to the attendance in them. He says there were over 2,000 in attendance this year. That may not be as high as several years ago but shows that the industry is resilient and upbeat for the future. Tom Bryan Interview

You can find more story posts from the 2011 FEW on our Domestic Fuel website.

2011 FEW Photo Album

Our coverage of the 2011 Fuel Ethanol Workshop is being made possible by the Renewable Fuels Association.

NCGA’s Tolman Receives FEW High Octane Award

I am attending the 2011 Fuel Ethanol Workshop which is being held in Indianapolis, IN. It’s the “technical” conference for the industry where lots of the latest in technology and processes are presented in multiple, simultaneous workshops. This morning it was also where the 2011 FEW High Octane Award was presented.

Receiving the award is Rick Tolman, CEO, National Corn Growers Association. The award was presented by Tom Bryan, BBI International. Rick made a few comments about working in support of the industry. He says there are three main reasons for why he does it. First, it’s the economy, to take some of the money that’s going overseas and invest it in rural America. Then it’s the environment, trying to bring the reality of a clean, renewable energy source to the U.S. and reduce our GHG emissions. And third it’s national security, to bring home the men and women overseas trying to protect the flow of oil. You can listen to or download his remarks here: Rick Tolman Award Remarks

You will find much more coverage of the 2011 FEW over on our sister website, Domestic Fuel. Feel free to follow the Twitter hashtag, #FEW11 too.

2011 FEW Photo Album

Our coverage of the 2011 Fuel Ethanol Workshop is being made possible by the Renewable Fuels Association.

Boats Go Fast on Ethanol

Whoever says that ethanol hurts marine engines has never seen boats running at more than 80 miles an hour on E-10.

Boat racers from coast to coast gathered this past weekend in the ethanol-producing town of Garnett, Kansas for the National Boat Racing Association (NBRA) “Garnett Ethanol Hydroplane Nationals.” The Renewable Fuels Association (RFA) partnered with NBRA earlier this year to help dispel concerns about the use of ethanol fuel in boat engines. The partnership includes the use of the RFA “Fueled with Pride” logo on signage around the racing events, as well as on all the racing boats and haulers.

See more photos from the race here: NBRA Ethanol Boat Race

All of the boats that race in NBRA competitions around the country this year have to prove they are using 10 percent ethanol fuel in order to be eligible for additional prize money in the race. “We test all the fuel before the race and then the top three entries in any class are tested when they come in to make sure they are running ethanol,” said NBRA president Dan Crummett – yes, the same Dan Crummett who might be better known to the Agwired audience as Executive Editor for Farm Progress Companies.

The NBRA races include a number of different classes of hydroplanes and runabouts with stock and modified outboards that run as fast as 96 miles per hour. Crummett says most of the issues that boaters experience when using ethanol-blended fuel can be addressed with better maintenance. “Any fuel will degrade over not a long period of time once the oil is mixed in it,” he says, which is why it’s so important for boaters to avoid leaving fuel set n the tank for an extended time.

Listen to my interview with Dan Crummett here: NBRA President Dan Crummett

Each race in each class is just three laps around a relatively small course – but really, really fast! Take a look in the video below:

Iowa Corn Indy 250 Won By Marco Andretti

In an American corn ethanol fueled race at Iowa Speedway, Marco Andretti wins the 2011 Iowa Corn Indy 250. Here he is in Victory Lane with 2nd place finisher Tony Kanaan and 3rd place Scott Dixon.

Following Victory Lane Marco and his Dad, Michael, held the winners press conference. I asked him his thoughts on racing in front of 2,500 corn growers and using fuel they grew. I had just interviewed him two days ago at a local ethanol promotion. He says, “I think it’s great we can be green and still have performance. We’re thankful to have their support. I love this place. Iowa’s great.” Marco Andretti Ethanol Remark

You can listen to the full press conference here: Marco/Michael Andretti Press Conference

2011 Iowa Corn Indy 250 Photo Album

Young Iowa Corn Indy 250 Fans

I don’t know if these are future Iowa corn growers, Pioneer sales reps or IndyCar drivers. Whatever it is they’re having fun out here at Iowa Speedway. We’re getting ready for a great Indy race under the lights. The weather looks like it’s going to be okay and we’ve got a sold out crowd.

I’ve been adding some green photos to the photo album so please feel free to visit. I’ll be back on with the winner after the race later this evening before returning home to ZimmComm World Headquarters tomorrow. See you in a while.

2011 Iowa Corn Indy 250 Photo Album

Pioneer Going Green For Iowa Corn Indy 250 Again

Here’s what the hood of the Iowa Corn Indy 250 official pace car looks like. It’s proudly displaying the Pioneer logo as the presenting sponsor.

Todd says the relationship with the Iowa Corn Growers in sponsoring the Iowa Corn Indy 250 has been very beneficial. As he puts it, “It’s a great event for the state of Iowa. It’s great for agriculture.” All of the cars racing this evening will be running on 100% corn ethanol showing how well the fuel performs in an engine. Pioneer brings in a lot of their customers for the event. In fact, I’ve heard that there will be approximately 2,500 farmers at the race track today. I’ll be out on location this afternoon in advance of tonight’s race. Let’s hope the weather improves. Todd Frazier Interview

2011 Iowa Corn Indy 250 Photo Album

Boat Racing Powered by Ethanol

Ethanol will be in the spotlight this weekend as boat racing teams from more than twenty states will gather to compete at the National Boat Racing Association (NBRA) “Garnett Ethanol Hydroplane Nationals” this weekend, June 23-26 in Garnett, Kansas for a chance to break national straight away speed records using E10.

The Renewable Fuels Association (RFA) partnered with NBRA earlier this year to help dispel concerns about the use of ethanol-blended fuel in boat engines. “World-class events like this provide the perfect opportunity to demonstrate the efficacy of ethanol-blended fuels, both on the road and on the water,” said Robert White, RFA Director of Market Development. “The performance of these boats and the speeds at which they race should squash any misconception that ethanol and marine engines don’t mix.”

This weekend’s races will be the first time national speed record trials have been done in over a decade. The speed to beat in the beginner class, C-Stock, is 66 mph and in the fastest class, Super E, the top speed is 96 mph in a quarter-mile. RFA is sponsoring all of the 2011 NBRA series event races taking place this summer and will be at the races in Garnett all weekend to hand out fan bags featuring “Fueled with Pride” logo swag and answer questions on ethanol.

I’ll be there too, while Chuck is at the Indy race in Iowa. Never been to a boat race before so it should be fun! If you want to join me and the good folks from RFA, the races will be held on Saturday, June 25th and Sunday, June 26th from noon – 5 pm and the $5.00 admission fee includes a hot pit pass. Having just been to my first NASCAR race with a hot pit pass, I will be curious to find out what a pit stop for a boat entails.

Senate Votes to End Ethanol Blenders Tax Credit

An amendment to end the ethanol blenders tax credit (VEETC) passed the Senate today by 73 to 27, a vote that some agricultural groups applaud while some denounce, while the ethanol industry says it is unlikely to matter.

“Today the Senate voted against rural America and domestic, renewable energy, and in favor of more foreign oil,” said National Corn Growers Association President Bart Schott of North Dakota.

The Renewable Fuels Association calls the vote disappointing but “ultimately inconsequential” since the underlying economic development bill to which this amendment is attached is “unlikely to make it to the president’s desk.” American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings added that the votes are “symbolic and will not become law. The ethanol industry notes that just last month, the Senate voted to protect tax subsidies for the oil industry. “Ironically, the United States Senate has spent the better part of a week on an amendment that is unconstitutional and going nowhere, even while the news pours in that OPEC has hit a high-water mark of $1 trillion in revenues,” said Growth Energy CEO Tom Buis

U.S. Agriculture Secretary Tom Vilsack says the Obama administration opposes an abrupt end to the VEETC. “We need reforms and a smarter biofuels program, but simply cutting off support for the industry isn’t the right approach. Therefore, we oppose a straight repeal of the Volumetric Ethanol Excise Tax Credit (VEETC) and efforts to block biofuels infrastructure programs.”

On the other side of the corn field, National Cattlemens Beef Association (NCBA) President Bill Donald called the vote “a giant step toward leveling the playing field for a bushel of corn” noting that cattle producers “support our nation’s commitment to reducing our dependence on foreign oil. But after 30 years and more than $30 billion in taxpayer support, the day has come to let the mature corn-based ethanol industry stand on its own two feet.”

A coalition of groups, including food retailers, poultry organizations and environmental interests also applauded the vote as “the start of a new era for U.S. biofuels policy.”

Immediately after the vote to end the VEETC, senators defeated an amendment that would have stopped federal funding for ethanol blender pumps by a vote of 41 to 59. At the same time, the House approved an amendment to the ag appropriations bill for the same thing by 283 to 128. The appropriations measure must still go through the Senate and is likely to change there.

American Ethanol on the Kansas Speedway

American Ethanol was prominently displayed at the Kansas Speedway on Sunday for the inaugural Sprint Cup Series STP 400 race.

The American Ethanol logo and paint scheme was on Clint Bowyer’s No. 33 Chevrolet and larger than life along the backstretch wall of the 1.5-mile Kansas Speedway to spotlight the partnership between the National Corn Growers, ethanol and NASCAR, which switched to a 15% ethanol blend for fuel in all series this year.

About 1200 farmers and ethanol producers from all over the country were there to cheer on Bowyer, following his first place win Saturday in the Camping World Truck Series, including National Corn Growers Association president Bart Schott (right) of North Dakota and NCGA chairman Darrin Ihnen of South Dakota.

“This is the kick off and we’ve been waiting for it to come,” Bart said on Sunday. “NASCAR has an 80 million fan base that is getting some real positive messages on burning a higher blend of ethanol.”

Darrin says educating fans about agriculture and ethanol is the main goal of the corn growers involvement in NASCAR, especially how it is helping make the country less dependent on foreign oil. “The NASCAR fans, when they were polled, energy security is one of their major concerns,” said Ihnen.

I asked them how the planting season has been so far on their farms and Bart says he managed to plant more corn than he expected and is almost done with soybean. Darrin has been in delay mode thanks to excessive moisture, but he’s not worried. “It’s a long season,” Darrin said.

Listen to or download my interview with Bart and Darrin here: National Corn Growers at Kansas Speedway

This was my first NASCAR race ever and I made it through with only sore muscles and a pretty good sunburn. It was interesting – very loud and very hot! – but I really liked the challenge of taking photos of fast cars on a track and thanks to the National Corn Growers for really making it a great day at the races! There’s more stories from the race on Domestic Fuel and Corn Commentary.

See all the race photos here: American Ethanol at NASCAR Sprint Cup STP 400