Sunday, September 30, 2007

Cuban Cigars, American Corn and Mideast Oil

How could these three items: Cuban cigars, American corn and Mideast oil, possibly be related? It's not too much of a stretch.

In this YouTube video, Dr. Jeff Zeiger from the Alternative Fuels Institute talks about the banning of Cuban Cigars and the banning of Mideast Oil and how that relates to ethanol.

Dr. Zeiger has long been a proponent of renewable energy. His website and online radio show are worth checking out.
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If you can't see the video, click HERE to go to the video directly.

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Saturday, September 29, 2007

Acting USDA Secretary Touts Corn and Ethanol Successes

Acting Agriculture Secretary Chuck Conner spoke yesterday to the Consumer Federation of America in Washington D.C. In his remarks, he touted the successes of corn growers and the remarkable achievements of the ethanol industry.

He also commented on several key issues regarding ethanol capacity growth, corn production, food cost issues that are worth reading.

Growth of the ethanol production capacity
The growth we are seeing this year both in terms of our nation's capacity to produce ethanol and in farmers' ability to supply the corn to feed those ethanol plants is really a remarkable story.
Producers' ability to grow enough corn for food and fuel
Our farmers have responded to these new market conditions by planting, as you might expect, an additional 15 million acres of corn-a total of almost 93 million acres today in all-which is corn acreage we haven't seen since prior to World War II.
Availability of corn for livestock feed
An important factor to remember in this debate is that we will be feeding more corn this year than we have in the past.
Concerns that demand for corn causes higher food prices

The argument runs that higher corn prices will lead to higher prices for animal feed and therefore, indirectly, to higher prices for meat and dairy products. Our economists, again, believe this has been overstated.
Impact of higher energy costs in food processing
We should also remember that food processing, packaging and transportation are all extremely energy intensive and are directly affected by higher oil prices.

Markets responding to changes and opportunities

And if you believe-as I do-in the power of markets to put resources to their best use, you should be very encouraged by the signs we see of vibrancy and growth in this market.

And finally, the secretary shared the administration's goal for renewable fuels:
I believe Americans want to see this nation boost our renewable energy production, to do it as quickly as possible, to meet ambitious goals like the one the President has proposed of using 35 billion gallons of renewables by 2017.

Source: USDA

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Friday, September 28, 2007

It’s Time to Put Ag Water Use In Perspective

Jon Holzfaster of Paxton, NE is a farmer and also is the chairman of the Nebraska Corn Board. And he has some pointed thoughts about reports assuming that corn growers are poor stewards of the land.

Jon has written and released an editorial, It’s Time to Put Ag Water Use In Perspective, this week that is worth reading. In it, he shares his thoughts on the use of water for raising corn.

His main point is to put the raising of corn in perspective and to share facts about water usage in corn growing. Some of his key points include:
  • It is estimated that it may take around 1,750 gallons of water to produce a bushel of corn. That sounds like a lot, but did you know it takes 684,000 gallons of water per acre per year to irrigate a golf course? And that, on average, a homeowner uses 21,600 gallons to water his or her lawn each year?
  • Nearly 40% of the corn acres in Nebraska are non-irrigated, relying solely on rainwater. Even on irrigated acres, only a portion of the water needed to raise corn is supplied by irrigation. Across the U.S., 86% of corn does not utilize irrigation.
  • Irrigation efficiency has improved dramatically in the past 20 years.
  • According the U.S. Geological Survey, an acre of corn gives off 3,000-4,000 gallons of water each day through transpiration.
  • Our local Natural Resource Districts are doing a good job of monitoring water usage by irrigators. They are constantly checking water tables and many districts in the state have implemented ag water use limitations. Remember, we are just coming out of a seven-year drought. As rainfall returns to normal, water supplies will be replenished.
  • Just what do we get in return for the water used to grow corn. A bushel of corn produces three gallons of ethanol and 18 pounds of distillers grains that can be fed to livestock. Or it can be used to make 68 boxes of cereal. Or it can be turned into 22.4 pounds of corn-based plastic, which is more environmentally friendly than petroleum-based plastic.
Jon notes that Grand Island, NE officials are investigating ways to lower the groundwater table under the city. One city official said Grand Island’s groundwater table is at its highest level in 23 years.

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Thursday, September 27, 2007

NCGA CEO: Pro or Con, Let’s Have a Real Discussion About Biofuels

The CEO of the National Corn Growers Association has an essay that is worth reading regarding the impact of corn-based ethanol.

Pro or Con, Let’s Have a Real Discussion About Biofuels

By Rick Tolman
Chief Executive Officer, National Corn Growers Association

Yet another so-called “study” about the impact of corn-based ethanol on the nation’s food supply has been issued. Like the others, its authors choose facts that support their opinion, and disregard everything else.

Once again we’re told ethanol has little impact on the nation’s dependence on foreign oil and is driving up food prices.

“Impact,” we guess, is a relative term. Ethanol is replacing 200 million barrels of imported oil per year. With the price of oil above $80 per barrel, ethanol’s impact on oil imports alone is more than $16 billion dollars.

Ethanol critics are fond of raising the alarm that using ethanol will require x amount of land to produce x amount of corn – staggering numbers that suggest our environment will collapse under the strain. The truth is no serious supporter of ethanol has ever suggested that all our energy needs could be supplied by corn-based ethanol. The NCGA believes — and has all along — that a rational pathway of ethanol growth exists. One in which corn growers can supply about 5 billion bushels of corn per year from a 15-billion bushel crop for ethanol by 2015. According to the Renewable Fuels Association, that would be enough to blend 10 percent ethanol into every gallon of gasoline sold in the United States. Additional ethanol will come from increased production efficiency and other stocks, such as cellulose, as those technologies come on line.

We’d also note that with this year’s corn harvest estimated at about 13.3 billion bushels, even if 5 billion bushels went exclusively to ethanol production, it would still leave more than enough for all domestic uses of corn.

Economic studies don’t bear out the repeated drivel that corn prices are driving up food prices. In fact, economists are reporting the impact of higher corn prices is minimal on the price of food, and real-world experience bears that out. No one blamed the cost of corn in 2003 when the average price for USDA Choice beef hit $4.32 a pound while corn was selling for $2.32 per bushel. Or in 2005, when corn sold for $2 a bushel while beef prices reached $4.25 a pound.

Just last week ConAgra Foods told stockholders the company’s input costs were $70 million higher than last year. But the profit for its Food and Ingredients segment was up 15 percent. And the company was able to buy back $88 million worth of stock during the same period.

We suspect the end of the era of cheap corn is really the heart of the issue. What the anti-ethanol camp won’t tell you is that corn prices have been artificially low for a decade. In fact, cheap corn allowed the food industry to boast that they were holding prices down while simultaneously posting record profits.

Instead of arguing over half-truths and suspect data, we suggest opponents of ethanol ask the REAL hard questions:

  • How much are we willing to depend on imported oil for our energy needs, and at what cost?
  • Who should decide this nation’s alternative fuels policy? The government? The energy industry? The marketplace?
  • How can we best deal with the end of 10 years of artificially cheap corn prices?
  • How can we help advance the opportunities to produce ethanol from other sources?

The National Corn Growers Association is ready for everyone – for or against – to get serious about ethanol.

Source: National Corn Growers Association

Food for Fuel: Myth vs. Reality - Daschle Responds

Foreign Affairs magazine, published by the Council on Foreign Relations, has taken the stage in the food versus fuel discussion. In the recent issue, former Senator Tom Daschle promotes that corn-based ethanol offers many benefits and few downsides.

He responds to a recent article that, as he puts it "recycles the 'food versus fuel' mythology.

Daschle's arguments include some key points central to his support of corn-based ethanol as a renewable fuel for America's energy and economic security:
  • U.S. corn is used to feed mostly animals, not people
  • Converting the starch from a portion of the U.S. corn crop into biofuels is an efficient way to reduce the United States' dangerous dependence on imported oil
  • The recent firming of grain prices in the United States will help, not hurt, farmers in food-deficit nations
  • Most important, current production facilities for grain-based biofuels are a critical platform for launching the next generation of advanced cellulosic and waste-derived biofuel technologies.
Daschle also makes the point that biofuels have significant environmental benefits. Finally, he concludes that now is the time for the US to embrace corn-based ethanol:
"Like at no other time in history, the planet faces energy and climate crises. Resolving them will require a comprehensive and well-reasoned set of policies. Those choices must be based on sound analysis -- not hyperbole and the hollow recitation of discredited doomsday prophecies."
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Tuesday, September 25, 2007

The NY Times, The Oil Patch's Faithful Cheerleader, Trashes Ethanol

Raymond Learsy, a blogger at Huffington Post, has an intering essay this week on the The New York Times' recent attacks on ethanol.

In it, he highlights the orchestrated campaign against weaning us from the grips of Big Oil:
  • The New York Times "standing shoulder to shoulder together with Hugo Chavez" and "bashing ethanol, happy to undermine ethanol's growing challenge to oil's perfidious hegemony over our lives."
  • Cherry picking their references in order to present us with an array of always impressionable and emotionally charged buzz words cautioning that growing corn and biodiesel feedstocks is "threatening natural habitats and imposing other environmental costs."
  • Warnings of a looming food-fuel tradeoff.
He concludes that "It is clear that the "oiligopoly" and their allies such as the New York Times will do all they can to deflect our focus and confuse our goals to divest ourselves from our dependence on fossil fuels."

It's interesting to note that on the day the NY Times admitted to failings with their Moveon.org's General Petraeus ad display, their blog resumed yet another attack on ethanol with "Corn Ethanol: Biofuel or Biofraud".

Seems to us that that the New York Times is betraying the American public by keeping us tied to hostile, foreign oil.

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Hillary Rodham Clinton Proposes a Strategic Energy Fund

Hillary Clinton Food vs. Fuel Ethanol EnergyFrom time to time over the past months, we've highlighted the presidential candidates positions on renewable fuels.

Hillary Rodham Clinton, currently a senator from New York and now running for President, has an inconsistent policy on renewable fuels. But this is presidential season and she has to appeal to voters outside of New York.

She has a proposed a energy policy on her campaign website HERE but here's a snippet that includes her renewable fuels plan:
Create a Strategic Energy Fund
Hillary has proposed a Strategic Energy Fund that would inject $50 billion into research, development and deployment of renewable energy, energy efficiency, clean coal technology, ethanol and other homegrown biofuels. Hillary’s proposal would give oil companies a choice: invest in renewable energy or pay into the fund. Hillary’s proposal would also eliminate oil company tax breaks and make sure that oil companies pay their fair share for drilling on public lands. Instead of sending billions of dollars to the Middle East for their oil, Hillary’s proposal will create a new clean energy industry in America and create tens of thousands of jobs here.
* Oh-- Just a reminder that we do not support or endorse any candidate. We're just highlighting key statements they make about national energy policy that includes renewable energy.

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Monday, September 24, 2007

E85 Viper Sets New Speed Record

Going green doesn't mean you have to go slow.

Karl Jacob set out to prove that he didn't have to give up high performance cars in order to save the environment. In fact, he discovered that renewable fuel performs much better than today's gasoline.

This summer, his E85 Viper project set the world record for a standing mile with a street legal vehicle at 220.7 in 27.41 seconds. The previous record was 217.85 and the vehicle used gasoline. He captured the world record for speed in his modified, street legal Dodge Viper.

Watch this video of Karl breaking the record using E85 ethanol.



Click HERE to view the video directly.

Wired named the E85 the top the E85 Viper the fastest, greenest car. Read their full story HERE.

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Sunday, September 23, 2007

Why are Retail Milk Prices so High?

Higher milk prices remain a top concern for consumers. As we've noted before, higher milk prices have been caused by strong demand both here in the US and abroad, a reduced supply caused by reduced herds and increased energy, labor and marketing costs at the retail level.

But the media still inaccurately blames higher priced corn earlier this year for the higher dairy prices.

The state of California's Department of Food and Agriculture has an informational page HERE which explains the increased costs of dairy products. Perhaps the reporters will take the time to find out the truth before they just blindly regurgitate the pablum of critics of corn and ethanol producers. They also offer tips for consumers on how to reduce their dairy costs through smarter shopping.

Q: Why are retail milk prices so high?

The Department regulates the transaction between dairy farmers and milk processors and sets a minimum price that must be paid to the farmers. That is where price regulation ends, however; retail stores are free to set prices as high as they determine to be appropriate. In short, there is no maximum price that can be charged.

The Department reviews the relationship among farm price and retail price regularly. As recently as May 2006, the percentage of retail price that was paid to dairy farmers ranged from 32% to 39%. The same analysis shows that retail store costs and profits (combined) account for 36% to 41% of the retail price of milk. Obviously, the percentages will change every time retail prices or the regulated minimum farm price changes. The Department has also noted that retailers are quick to pass on to consumers any increases in the regulated farm price by increasing retail prices.

The Department monitors the retail prices for milk that are announced by club stores. The Department uses club store prices because they generally have the lowest retail prices for milk. Clearly, club stores do not sell milk at a loss, and as such, their prices provide a reference for what other retailers could be charging for milk. What we have noted is that there appears to be about $1.00 per gallon amount above the minimum farm price that accounts for processing costs, distribution costs and store selling costs. Over the last 2 years, this amount has remained remarkably constant. We can surmise that any price charged for milk over and above the farm minimum price plus $1.00 per gallon is likely to be tied to stores' own pricing policies.
Consumers are urged to compare milk prices in stores carrying more than one brand of milk. They may save up to $0.50 per gallon by selecting the lower-priced brand. This is particularly true in major chain grocery stores where the prices on first label brands (or store brand) are among the highest in the California. However, major chain grocery store prices for the second label (or off-brands) milks are typically priced competitively with membership stores, such as Sam's Club or Costco. We also recommend that:
  • When possible, consumers should take advantage of milk that is priced to be sold in two-packs, i.e., two one-gallon units. Membership stores throughout the state offer two-pack pricing on whole, reduced fat and nonfat milk and have the lowest retail prices available.
  • When milk is purchased in single gallon units, consumers should be aware that prices vary by store, and significant price differences may exist within the same city. Retail stores that don't specialize in grocery sales often have the lowest milk prices.

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High Cost of Chicken is Caused by Corn Costs?

Hardly. Corn costs represent only a small portion of the final food cost to consumers. Yes, corn costs have increased, from about $2.50 a bushel a year ago to about $3.50 a bushel this spring. But that $3.50 buys 56 POUNDS of corn from a grower. And the cost of corn had remained at all time lows for many years.

So what about all of that clucking about corn costs and higher cost of chicken?

According to the National Chicken Council, it takes 2 pounds of corn to produce one pound of chicken, live weight. This equates to less than 13 cents worth of corn when corn is $3.50 per bushel.

So if corn was $2.50 a year ago, that $1.00 bushel price different at most represents 4 cents per pound increase that may or may not be passed along to the final consumer.

And according to the USDA, chicken breasts, bone in, average retail price is $2.33 a pound in August, 2007. So that makes any increased corn costs less than 2 percent of the final food price. And the total corn costs less than 6% of the final cost.

What has been shown to cause major cost in increases in all sectors of the economy is increased energy costs and labor costs. Sky high oil costs, driven by international demand and foreign oil cartels, are impacting America's security and economic vitality.

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Saturday, September 22, 2007

Big Oil's Big Stall on Ethanol: Keep E85 Out of Drivers' Tanks

Business Week logo Food vs Fuel Ethanol E85Business Week, in its October 1, 2007 issue, is running an insightful article, Big Oil's Big Stall on Ethanol, on the oil industry's efforts to discredit ethanol and eliminate competition.

The article lays out the industries aggressive campaign which includes:
  • Pocketing billions in ethanol subsidies while working against the E85 blend with tactics both overt and stealthy.
  • Funding studies that bash the spread of ethanol for driving up the price of corn
  • Not supporting E85 pumps at gas stations.
  • Funding an anti-ethanol information campaign. "In June the API [American Petroleum Institute] released a study it commissioned from research firm Global Insight Inc. The conclusions are far from universally accepted, but they have been picked up and promoted by anti-ethanol groups like the Coalition for Balanced Food & Fuel Policy."
  • Using oil-stained academics to promote their message: "There is perhaps no one more hostile to ethanol than Tad W. Patzek, a geo-engineering professor at the University of California at Berkeley. A former Shell petroleum engineer, Patzek co-founded the UC Oil Consortium, which studies engineering methods for getting oil out of the ground. It counts BP, Chevron USA, Mobil USA, and Shell among its funders."
One of the most interesting quotes from the article relates to the face-off with the auto industry.
"Big Oil is at the top of the list for blocking the spread of ethanol acceptance by consumers and the marketplace," says Loren Beard, senior manager for energy planning and policy at Chrysler, referring to the struggle to get E85 pumps installed.
It's good to see, at least one major media company, can see through the industry's deceitful efforts to discredit alternative energy.

Source: Business Week.com
American Petroleum Institute API

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Friday, September 21, 2007

President Bush Announces Resignation of Secretary of Agriculture Mike Johanns

President Bush announced Thursday the resignation of US Agriculture Secretary Mike Johanns during a Whitehouse news conference.

Johanns is resigning to run for Senate in his home state of Nebraska.

President Bush named Chuck Conner acting USDA Secretary.

Prior to his tenure at the U.S. Department of Agriculture, Mr. Conner served on the National Economic Council beginning in November 2001 as a Special Assistant to the President for Agricultural Trade and Food Assistance, focusing primarily on Farm Bill issues. Previous to that, Conner served as head of the Corn Refiners Association as well as holding various staff positions with the Senate Committee on Agriculture, Nutrition, and Forestry.

This announcement should mean little change to the administration's support of renewable fuels like ethanol and its current Farm Bill proposals.

Source: Whitehouse.gov

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New Video on Corn Conservation

A new video from the National Corn Growers Association discusses farming practices that protect soil from the continuing threat of water and wind erosion, reduce agricultural inputs and improve the long-term health of their fields.

"This is an important step to communicate with people who may not have any first-hand knowledge about agriculture," says NCGA President Ken McCauley. "With all the concern about the impact of agriculture on the environment, it's vital for people to know the role agriculture has in protecting our environment."





The video is available at YouTube in three parts:
In addition, the video is available for download in QuickTime and WindowsMedia formats HERE.

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Thursday, September 20, 2007

Iowa Farmer Wins E85 Chopper

E85 Chopper Motorcycle Food vs Fuel EthanolUPDATE - A 45-year-old farmer from Seymour, Iowa recently won the nation’s first E-85 chopper. Michael Murphy bought the winning raffle ticket for the Orange County Chopper’s ‘green’ corn-fueled creation at the Farm Bureau booth at the Iowa State Fair.

According to the Iowa Farm Bureau, Murphy commented on his winning “I haven’t won anything in my lifetime. I almost didn’t win this. It’s funny; I was just going to buy one ticket, but the young man who was helping me had trouble finding change, so I got another one. That ended up being the one that won”.

The Iowa Farm Bureau Renewable Energy Chopper was created by the talented “Orange County Chopper” stars, the Teutuls, and is their first to run on E-85. E-85 is 85% ethanol and 15% unleaded gasoline.

All of the proceeds, more than $113,000 from the chopper raffle, went to the American Lung Association of Iowa.

The Iowa Farm Bureau Renewable Energy Chopper and Iowa’s renewable energy industry will be featured October 11 and October 18 on the “American Chopper” show, which airs on the Learning Channel. The chopper engine will also be a prototype for Orange County Chopper’s future ‘green’ commercial chopper line.

Source: Jointherideiowa.com

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General Mills' Sweet Cereal Profit Surprise

Giant food company General Mills Inc. released its quarterly profit report Wednesday that included a special little surprise in the cereal box: first-quarter profit rose 8 percent.

According to the company, Chairman and Chief Executive Officer Steve Sanger said, “This represents a very good start to the year. Our continuing growth reflects broad-based sales momentum, and even stronger operating profit growth despite challenging input-cost inflation and increased consumer marketing investment to build our brands”

Business must be good indeed. Charge more and increase profits.

What we find interesting is how media companies continue to harp on the rising price of grains (like this report from Fox.com) blaming all increases on grain prices, but ignoring rising fuel and marketing costs. Even when companies tell them what's going on and some simple math proves it.

Something just doesn't add up. A bushel of corn, even at a higher price of $3.50 a bushel compared to $2.50, doesn't affect the input cost greatly per box of cereal for a consumer. A bushel of corn is 56 POUNDS. Doing the math shows that 1 pound of corn and that $1.00 increase means less than 2 cents per pound can be attributed to higher grain costs. And most cereal boxes have a lot less than 1 pound of cereal in a box and charge MORE than the cost to buy 56 POUNDS of corn!

So hefty consumer price increases HAVE to be coming from somewhere else like increased profits, marketing, fuel and labor costs.

Source: General Mills, Inc.

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Wednesday, September 19, 2007

Chicago Mercantile Exchange to List Options on Ethanol Futures

In a continuing sign that ethanol is taking root in the American economy, the CME, the parent company of the Chicago Mercantile Exchange, has said that it will start listing options on ethanol futures.

It will also begin to offer clearing services for cash-settled options and options on forward month swaps. Centralized clearing includes the benefits of daily mark-to-market margining and reduced counterparty risk.

Ethanol futures have been trading at the Chicago Board of Trade (CBOT) which is now part of the CME Group since March 2005.

The options are slated to begin trading on e-cbot Oct. 5 and on the CME Globex platform in January.

Source: CME

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Corn Guy to the Rescue

From the great plains of the upper Midwest comes Corn Guy to the rescue!



Click HERE to go directly to the video if you can't see it in the browser.

From the About page:
Corn Guy TV is a silly video series about a serious issue: Deteriorating air quality caused by fossil fuel-burning vehicles. Corn Guy’s mission is to correct misconceptions out there surrounding cleaner-burning biofuels, namely corn-based ethanol.
Source: CornGuy.tv

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Tuesday, September 18, 2007

Ethanol: The Path to Cleaner Air

At the recent Minnesota State Fair, the America Lung Association of Minnesota presented a compelling exhibit regarding ethanol and its clean air benefits. In this YouTube video, spokesman Bob Moffitt explains the benefits of ethanol as a cleaner, greener domestic fuel.


If you see the video, click HERE to go to the video directly.

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Monday, September 17, 2007

Beef Myths Exposed as Pure Bull

Cattle Beef Ethanol Feed Grain Corn FuelIn the ongoing discussion about food versus fuel issues in America, some activists have made outrageous claims concerning how food is grown and raised.

It's hard to take these fringe groups seriously--even when one wants to believe some parts of their tales---when the crazies parade themselves nude in public, run scary ads aimed at children blaming their parents for animal murder or purport that eating meat voids your environmental efforts.

The beef industry, like other agricultural commodities, gets its share of these wacky, quacky claims as well. The National Cattlemen's Beef Association has taken some of these claims head-on with an informative web page (updated):
The activist myth goes something like this: meat production uses outrageous amounts of water, feed and land that should be used for something else. The truth is it takes 2.6 pounds of grain* and 435 gallons of water to produce a pound of beef in the United States. The reality is that 85 percent of the nation’s grazing lands are not suitable for farming. It is important that we use land that is too rough, too high, too dry, too wet and largely inaccessible to graze livestock to produce food for the world’s population. Cattle eat forages that humans cannot consume and convert them into a nutrient-dense food.

Claim: 16 pounds of grain and soybeans are needed to produce 1 pound of beef.
Fact: This estimate is based on the false assumption that beef cattle are fed grain diets from birth to market weight. According to the Council for Agricultural Science and Technology (CAST) 1999 Animal Agriculture and Global Food Supply Report, an average of 2.6 pounds of grain is used to produce a pound of beef in developed countries and 0.3 lb. in developing countries. Animals don’t steal grains destined for the world’s hungry; instead they consume large amounts of feedstuffs not suitable for human consumption. This includes forage from marginal land that can’t be cultivated for human foods and food processors’ byproducts such as citrus pulp brewers’ grains, almond hulls and tomato pomace. The soybean product fed to cattle is a meal made of the bean flakes, which remain after the soy oil is extracted for human consumption. In addition,corn fed to cattle is feed corn grown specifically for use as livestock feed and of lower quality than corn grown for human consumption.

Claim: A 1,250 pound beef steer finished in a feedlot on corn will have consumed in his lifetime roughly 284 gallons of oil.
Fact: This claim, made by Cornell University’s Dr. David Pimentel, in a March 31, 2002 New York Times Magazine article is based on erroneous data and outdated assumptions about corn production. Energy efficiency has significantly increased agricultural productivity; for example, producing a bushel of corn today requires about half the energy it did 25 years ago. Rather than 284 gallons of oil, a more realistic figure is 13.83 gallons, according to a 2002 analysis conducted by Dr. Michael S. Graboski of the Colorado School of Mines for National Corn Growers Association.
The site continues examining a number of other beef myths so it is worth reading the entire article.

* On a related note, 2.6 pounds of grain is a small portion of the cost of beef. Something to consider when we read that increased feed costs are driving up final consumer food costs.

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Sunday, September 16, 2007

Get the Most Out of Food and Fuel America.com

Web visits to Food and Fuel America.com have been fantastic especially over the past 90 days. Since our initial launch earlier this year, we've had tens of thousands of visitors. We have posted nearly 150 articles on issues regarding food and fuel. And the best part has been that many of you have taken the good news about renewable fuels and used it in the ongoing discussions of food and fuel.

Since our launch, we've added several new site features. Check them out in the right-hand-column of the site:

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Lung Association Supports E85 Ethanol

Renewable fuels such as ethanol have been shown to be clean-burning and are good for the environment, our nation's economy and for our national security.

Support for our energy independence is strong across the country, across party lines, economic and social classes. And that support is growing even stronger.

In this report from NBC affiliate KFYR-TV, the ND Lung Association supports E85 because of its benefits to clean air and clean lungs.
"With events like this, I just want one North Dakotan to choose E85 over gasoline and by doing that there are four tons of pollutants not going into our air," Valerie Kummer of the American Lung Association of North Dakota says.
The station also has a video with interviews with Lung Association officials explaining their positive position on ethanol. Click HERE for the video.

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Saturday, September 15, 2007

Increased Demand For Milk Driving Price and Production

A recent report by the USDA shows that strong demand for milk is driving higher milk production.

The World Agricultural Supply and Demand Estimates (WASDE) report provides USDA's comprehensive forecasts of supply and demand for major U.S. and global crops and U.S. livestock. The report gathers information from a number of statistical reports published by USDA and other government agencies, and provides a framework for additional USDA reports.

Forecasts for milk production for 2007 and 2008 show that producers are responding to strong milk prices by expanding their cow herds. In addition, higher herd replacement costs for heifer and dairy cows indicate stronger demand for dairy animals.

World demand for milk, and not corn prices as recent reports suggest, is expected to keep prices at record levels. World dairy supplies should remain tight and will absorb the increased production.

Source: USDA

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Friday, September 14, 2007

Pennsylvania Governor and Former CIA Director Warn Foreign Oil Is a Threat to America's Economy

Pennsylvania Governor Edward Rendell and former director of the CIA James Woolsey this week called America’s growing dependence on foreign oil one of the greatest threats to the nation’s security and economy.

According to the governor during a press conference:
“As a nation, we import more than 60 percent of our liquid fuel supplies. That kind of dependence on foreign oil leaves us exposed to political upheaval or hostile agendas from elsewhere in the world. “It is intolerable that our economy and way of life are so much at the mercy of foreign nations. We need to act now and spur the development of biofuels here at home. Instead of Pennsylvanians sending $30 billion each year overseas to buy gas and fuels, we can invest that money here and support our farmers who grow the crops that produce ethanol and biodiesel, the new manufacturers that refine the oils and the trucking and rail industries that ship it.”
Beginning Sept. 17, Governor Rendell and the Pennsylvania General Assembly will resume working together in a special session devoted to the Energy Independence Strategy.

For more information on Governor Rendell’s PennSecurity Fuels Initiative and the entire Energy Independence Strategy, visit www.depweb.state.pa.us, and click on the “Fueling Energy Savings” icon.

In his remarks, James Woolsey expanded on the threat a dependence on Middle Eastern oil presents to the U.S, and how a change in the way the nation borrows to finance oil purchases could benefit the country:
“The national security reasons to destroy oil’s strategic role in our economy are substantial,” said Woolsey. “More than two-thirds of the world’s proven reserves of conventional oil lie in the turbulent states of the Persian Gulf, as does much of oil’s international infrastructure. Increasing dependence on this part of the world for our transportation needs is subject to a wide range of perils.”
Woolsey was CIA director from 1993 to 1995 and has held Presidential appointments in two Republican and two Democratic administrations. He currently co-chairs the Committee on the Present Danger with former Secretary of State George Shultz. He is also chairman of the advisory boards of the Clean Fuels Foundation and serves on the National Commission on Energy Policy.

Source: PA Governor website

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Thursday, September 13, 2007

Corn Prices Unlikely Culprit for Rising Grocery Prices

A noted consumer group, Food and Water Watch, has released a report that finds that increased corn costs are not the reason for rising consumer food prices.

Food & Water Watch examined and compared the monthly farmgate price of corn and retail price of ground beef, chicken, pork chops, and milk since 1980 and found:
  • Contrary to widespread media reports, the long-term farmgate price of corn has fluctuated significantly and has exceeded oft-cited $2 per bushel during three quarters of the months between 1980 and 2006.
  • The real, inflation-adjusted price of corn has trended downwards since 1980 from an average of $6 per bushel in the early 1980s to $2.37 two decades later.
  • During periods of farmgate corn price increases similar to the recent rise, there has been little interplay with retail food costs – in many cases retail food prices fell as corn prices rose.
"In 1980, the farmgate price for corn was $2.70 and a new Ford Mustang cost about $6,000. Today, the base model Mustang runs about $19,000 and corn is selling for as much as $3.70 – meaning the price of Mustangs more than tripled and the price of corn increased by a little more than a third," said Woodall. "America needs agriculture and food policies designed for farmers and consumers and not just agribusiness interests."

The full analysis is available HERE.

Source: Food and Water Watch.org

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national cattlemen's beef association american petroleum institute api national petroleum refiners association national turkey federation american meat institute ami

Mitt Romney Advocates Alternative Energy Like Biodiesel and Ethanol

Mitt Romney Food vs Fuel Ethanol EnergyYou may recall a few weeks ago, we ran a short post on John Edward's Biofuels Plan. So it's time to look at another candidate to see his position on energy issues.

In this clip from Mitt Romney's site, he says "We're using too much oil" and advocates for use of alternative energy such as biodiesel and ethanol.



If the video does not display, click HERE to go to the video directly.

And of course, FoodandFuelAmerica does not advocate, endorse or support any political candidate.

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