Showing posts with label corn. Show all posts
Showing posts with label corn. Show all posts

Saturday, May 28, 2011

Gov. Mitt Romney Declares His Support for Ethanol

Former Massachusetts Gov. Mitt Romney came out in a strong show of support of ethanol this week by publicly embracing ethanol subsidies.

As reported by the Wall Street Journal, Romney:

“I support the subsidy of ethanol,” he told an Iowa voter. “I believe ethanol is an important part of our energy solution for this country.” 

Romney made his ethanol-friendly statements while in Des Moines, Iowa.  Romney is a leading contender for the 2012 Republican presidential nomination.  And Iowa is the country's largest ethanol-producing state and an important first stop in the 2012 presidential primary race.

Romney's announcement comes just a week after Romney's Republican contender, former Minnesota Governor Tim Pawlenty, made his own statement that subsidies for ethanol should be phased out.

So what is this "ethanol subsidy" that has the presidential contenders making these statements?

The Volumetric Ethanol Excise Tax Credit, also known as VEETC, is a credit of $.45 for every gallon of pure ethanol blended into gasoline.  It was established to allow the oil industry to invest in the infrastructure to blend ethanol into the country's gasoline supply.  The credit goes to the actual "blender" of the ethanol, not to corn growers and not to the ethanol plants that make ethanol.

God knows the oil industry wasn't going to do it without some financial encouragement from Congress.  The American Petroleum Institute remains a powerful opponent of alternative fuels like ethanol.

The VEETC is currently funded by Congress until the end of 2011.  Congress is considering legislation that would modify the credit for future years to promote flex fuel vehicles and the installation of flex fuel pumps.


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Wednesday, May 18, 2011

Corn Prices Higher Regardless of Ethanol

To hear critics of corn ethanol spin it, the reason corn prices are high is because of that mean ol' nasty ethanol.

But the facts and analysis from economists just don't support that skewed thinking.

Corn prices would have done about the same thing with or without ethanol.

That's the conclusion of a recently released report from the Iowa State University Center for Agricultural and Rural Development (CARD).

The analysis by Bruce Babcock and Jacinto Fabiosa showed that general pattern of corn prices seen during 2006-2009—increasing prices in in 2006 and 2007, a price spike in 2008, followed by a sharp price decline in 2009—would have occurred without ethanol subsidies or even if corn ethanol production had not expanded.

It also showed that investor speculation for corn ethanol in 2005, 2006, and 2007 would have occurred even without subsidies due to a combination of cheap corn, a phase-out of MTBE, and higher crude oil prices which made ethanol profitable. Thus, ethanol production would have expanded quite rapidly even without subsidies.
Using the 2004 corn price of $2.06 per bushel as a reference, actual corn prices increased by an average of $1.65 per bushel from 2006 to 2009. Only 14 cents (8%) of this increase was due to ethanol subsidies. Another 45 cents of the increase was due to market-based expansion of the corn ethanol industry. Together, expansion of corn ethanol from subsidies and market forces accounted for 36% of the average increase that we saw in corn prices from 2006 to 2009. All other market factors accounted for 64% of the corn price increase.

Saturday, May 14, 2011

That's a Lot of Hamburgers.

It really is Food AND Fuel for America and the world.

An important point often overlooked in the war against corn ethanol is that 1/3 or the corn used for producing ethanol is returned as Dried Distillers Grains.


Ethanol production requires only the starch portion of a corn kernel to produce the American-grown, renewable fuel. The remaining protein, fat, fiber, and other nutrients are returned to livestock feeders.


A new report this week from the Renewable Fuels Association, Fueling a Nation; Feeding the World, shows that the US ethanol industry is providing an important and growing nutritious livestock feed for both domestic and international markets.

According to the RFA report, America’s ethanol producers produced nearly 35 million metric tons (mmt) of livestock feed in the 2009/2010 marketing year.  That's a lot of corn that is being returned to the livestock market.

According to the RFA, by volume, that production is greater than the total amount of grain consumed by all of the beef cattle in the nation’s feedlots.

The RFA also pointed out some fun facts about how much corn this represents:

For the current 2010/2011 marketing year, feed production from the ethanol industry is projected at 39 mmt.  
- if the 39 mmt of livestock feed was a country’s corn crop, it would represent the 4th largest crop in the world 39 mmt of livestock feed would be enough feed to produce 50 billion quarter-pound hamburgers – seven patties for each person on the planet 
- 39 mmt of livestock feed would be enough to produce one chicken breast for every American every day for a year
American ethanol produces both Food AND Fuel.

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Record Corn Crop for 2011 / 2012 Projected

The USDA released its World Agricultural Demand and Supply Estimate report this week and the corn crop shows a projection for a record 13.5 billion bushel crop for 2011.
Corn production for 2011/12 is projected at a record 13.5 billion bushels, up 1.1 billion from 2010/11 as a 4.0-million-acre increase in intended plantings and a recovery from last year’s weather-reduced yields boost expected output.
Reference:
World Agricultural Demand and Supply Estimates (WASDE), May 11, 2011 (PDF)

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Tuesday, July 21, 2009

USDA Projects Record Corn Crop

USDA corn cropThe recent USDA Supply Demand report shows good news for the US corn industry.

According to the report, the corn crop is expected to be the second largest on record:
U.S. feed grain supplies for 2009/10 are projected higher this month with higher expected beginning stocks and production for corn. Corn production for 2009/10 is projected at 12.3 billion bushels, up 355 million from last month as higher estimated area from the June 30 Acreage report boosts production prospects. Corn supplies are projected at 14.1 million bushels, up 335 million bushels from 2008/09. Feed and residual use for 2009/10 is raised 50 million bushels as increased supplies and lower prices are expected to boost feeding demand. Food, seed, and industrial use is lowered 35 million bushels reflecting lower expected use for sweeteners and starch. Exports are raised 50 million bushels as lower prices increase the competitiveness of U.S. supplies in the world market. Ending stocks are projected at 1.6 million bushels, up 460 million from last month, but down 220 million from 2008/09. The 2009/10 marketing-year average farm price for corn is projected at $3.35 to $4.15 per bushel, down 55 cents on both ends of the range.
We find it amazing that us farmers succeed despite the many challenges that arise. Higher land, fertilizer, credit prices, a slowing economy and challenging weather conditions hampered the start of the corn crop. But corn growers persevered.

Many critics of American corn production threw in the towel at the first drop of rain that US farmers were going to starve the world for the sake of ethanol.

The facts speak otherwise.

Source: USDA

Tuesday, June 30, 2009

Record Corn Crop Planted

planted corn fieldNever underestimate the American farmer, despite the many obstacles they face.

From wet weather during planting season, higher input costs for seeds and fertilizer, rising land prices and a tight credit market, America's farmers faced a host of obstacles in getting their fields planted this spring.

But today's crop report from the USDA certainly proves the resiliance of American corn growers.

united States Department of Agriculture
Farmers planted 87 million corn acres in 2009, up 1 million acres from last year. This is the second-largest corn acreage in more than 60 years, behind 2007 and is up 1% from last year.

Despite wet weather in many growing areas, farmers reported that 97 percent of intended corn acreage was planted by early June, compared with the 10-year average of 98 percent.

And despite the naysayers who continue to argue against the capabilities of America's agriculture, America can grow both Food AND Fuel.

Source: USDA

Saturday, November 22, 2008

Time to Give Thanks

Even while harvest continues across the country, Americans will sit down to give thanks this week for a bountiful and abundant food in America. The hard work of American farmers must never be forgotten as they continue to feed and fuel us and the world.

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If you can't see the video, click HERE to go to it directly.

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Tuesday, September 2, 2008

Corn Gets the Gold

Michael Phelps Kelloggs Corn Flakes Olympic Gold MedalsOr at least Olympic gold medalist.

Swimmer Michael Phelps, who won an amazing 8 gold medals at the 2008 Beijing Summer Olympics, has chosen to appear on upcoming boxes of Kellogg's Corn Flakes.
He's already taken his place in history alongside the legends, but now Michael Phelps can add one more milestone to the list. After earning eight gold medals in the 2008 Olympic Games, Michael Phelps has earned a place of honor on the front of specially-marked Kellogg's Frosted Flakes® and Kellogg's Corn Flakes® cereal boxes.

Wheaties, made by rival General Mills has usually signed champion athletes on its cereal boxes since 1934. Instead, Wheaties will go for the silver and honor gymnast Nastia Liukin and decathlete Bryan Clay. OK, so maybe this is just another example of why corn beats wheat.

One does have to wonder how much Kelloggs paid for this honor. We suspect millions of dollars in marketing and branding costs will be added to Kellogg's costs over the year. But it's fine because they can just blame corn and ethanol for the higher prices.

Despite that the cost of corn found in a box of corn flakes is under 10 cents in a box. Corn Flakes: The Breakfast of Profiteers!

Source: Kelloggs

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Thursday, August 21, 2008

Senator Grassley Responds to Latest Attack on Domestic Ethanol

Senator Charles GrassleyUS Senator Chuck Grassley (IA) sent a letter (pdf) this week to United States Trade Representative Susan Schwab to reassure her that the ethanol import tariff is explicitly permitted under World Trade Organization rules.
“Besides the fact that the ethanol tariff is perfectly in line with WTO obligations, it is also in line with our domestic energy policy which focuses on using homegrown ethanol to help rural communities across the country rather than sending more dollars to the Middle East or Brazil,” Grassley said.

“Brazil has yet to even take advantage of exporting ethanol duty-free to the United States through the Caribbean Basin Initiative. Until Brazil takes full advantage of its ability to export ethanol duty-free, I don’t see why we should give Brazilian ethanol more generous treatment.”
The letter was in response to questions raised by Senator Dianne Feinstein to Schwab about whether the import tariff violates the rules of the World Trade Organization.

Brazil has the opportunity to ship ethanol to the United States duty-free through the Caribbean Basin Initiative. Up to 7 percent of the United States ethanol market can enter duty-free, however this cap has not once been filled since it first became available in 1990.

But most importantly, the tarrif remains in place to offset the blenders credit for ethanol. Just why would we want to subsidize Brazil's ethanol industry?

Source: Senator Charles Grassley

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Wednesday, August 20, 2008

Senators Discuss Food and Fuel in Nebraska

United States Senate AgricultureU.S. Senators Ben Nelson (NE) and Tom Harkin (IA) brought the Senate Agriculture Committee to the University of Nebraska, Omaha to get to the heart of the food vs. fuel debate this week.

The hearing titled, "Food, Feed, and Fuel Production: Today and Tomorrow" was hosted by the university and included experts in agriculture, agricultural economics, food production, livestock production and renewable energy.

Witnesses at the hearing came from both sides of the ethanol debate, including poultry and livestock producers who argued that ethanol production was driving up their feed costs.

But Senator Nelson's comments may have been the best summary of the "food and fuel" issue:
"The focus here should be on the big picture: ethanol is the only domestically-produced alternative to oil-based transportation fuels. It is helping us in a big way to stretch the gasoline supply, save American consumers money at the pump, create jobs in rural communities, improve our rural and national economy—and to top it off—help wean us off imported oil.

"Ethanol is a major contributor to the U.S. gasoline supply. One study says it's the third largest, behind only Canada and Saudi Arabia, and ahead of Iraq and other OPEC countries. Today’s corn-based ethanol is paving the way for the next generation of biofuels produced from such materials as switchgrass and stover.
Tim Recker, president of the Iowa Corn Growers Association, testified (pdf) on behalf of his organization as well as the National Corn Growers Association, the Nebraska Corn Growers Association and the Nebraska Corn Board.
“The world is hungry for both protein and petroleum, and the American corn grower can help satisfy both in the form of energy from ethanol and protein from corn-fed red meat and poultry.”
Other witnesses included Dr. Bruce Babcock, Director, Center for Agriculture and Rural Development, Iowa State University; Dean Oestreich, Chairman of Pioneer Hi-Bred and Vice-President DuPont Agriculture and Nutrition; Dr. Thomas Foust, Biofuels Technology Manager with the National Renewable Energy Laboratory; and Jeff Lautt, Executive Vice President of Corporate Relations with POET.

Source: Senator Ben Nelson, Senate Agriculture Committee

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Tuesday, August 19, 2008

Sorghum's Biofuel Potential Explored at Workshop

sorghum ethanol biofuelsSorghum's potential as a biofuel crop will be explored at the International Workshop on Sorghum for Biofuels which begins today in Houston, Texas.

More than 100 international experts from government, academia, the private sector and the agricultural community are expected to participate in the conference.

U.S. co-sponsors of the event include the U.S. Department of Agriculture (USDA), Texas A&M University, and the National Sorghum Producers.

Other co-sponsors include Brazil’s Empresa Brasileira de Pesquisa Agropecuaria, the International Crops Research Institute for the Semi-Arid Tropics, and Tsinghua University, which is located in the Peoples’ Republic of China.
“U.S. consumers know that we need to develop new sources of energy to meet our transportation needs,” said USDA REE Under Secretary Gale A. Buchanan. “Growing sorghum for bioenergy production can give us a source of renewable—and profitable—energy right here at home.”
Sorghum is attracting greater interest as a bioenergy crop because it is tolerant of drought and grows well on marginal lands not suitable for most other crops. It produces high yields even after an abbreviated production cycle, and requires minimal amounts of fertilizer and irrigation.

Source: USDA

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Monday, August 18, 2008

Corn Cob Ethanol Pilot Plant Complete This Year

POET Energy corn cob harvest ethanolPOET announced last week that its cellulosic ethanol pilot facility will be operational this year.

We previously wrote about the effort to harvest corn cobs for ethanol during last year's corn harvest.

At the American Coalition for Ethanol conference, POET announced that construction will be completed on a $4 million pilot-scale cellulosic ethanol production facility later this year. The pilot plant will be adjacent to POET’s corn ethanol pilot facility and a nine million gallon per year ethanol production facility in Scotland, S.D. It will allow POET to build upon recent technology advances before starting construction on Project LIBERTY, their commercial cellulosic production facility, next year.
"Our expanded research effort has led to several significant strides in the development of cellulosic ethanol technology at the lab scale in recent months," said Jeff Broin, CEO of POET. "Construction of this pilot facility will allow our company to take the next step toward the commercialization of cellulosic ethanol."
During the 2007 harvest, POET worked with major agricultural equipment manufacturers to harvest 4,000 acres of corn grain and cobs from a farmer’s field in Southeastern South Dakota. Cobs from this fall’s harvest and last will serve as the feedstock for the cellulosic pilot plant, along with corn fiber extracted from the adjacent corn ethanol production facility.

POET has been working on cellulosic ethanol technology for more than eight years and has significantly expanded their research and development efforts. The company recently completed an expansion of their research lab in Sioux Falls, S.D. that tripled its size.

Additional information on POET's ethanol efforts can be found on its blog, RhapsodyinGreen.

Source: POET

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Thursday, August 14, 2008

Corn Ethanol Has Minimal Impact on Food Prices

Ethanol Across AmericaThe production of ethanol from corn has had minimal impact on consumer food prices while reducing fuel costs to consumers across the country, according to a new study released earlier this month.

U.S. Senator E. Benjamin Nelson (NE), Chairman of the Ethanol Across America education campaign, hailed a new Issue Brief on The Impact of Ethanol Production on Food, Feed, and Fuel (pdf) as a calm voice in a debate that has become confused due to misinformation.
"America's farmers are the most efficient and productive in the world," said Senator Nelson. "While there is new demand for corn and other agricultural products resulting from our effort to produce biofuels, we are seeing increased yields and a likely leveling of prices. We are also working hard to diversify our biofuel production by utilizing new feedstocks that range from specialty energy crops to waste materials."
The Issue Brief notes that while corn prices have indeed nearly doubled in the past year, according to the U.S. Commerce Department's Consumer Price Index (CPI), food costs have increased within their historical annual average of 2.9%. However, fuel prices have risen 82% since 2006 and according to the U.S. Department of Agriculture have had a much greater impact on food prices due to higher costs of bringing products to market and food processing

America needs to continue to invest in biofuels to produce our own energy, improve the environment and create jobs and domestic economic prosperity.

So despite the rhetoric that we all read everyday, we know that shipping our money off to foreign lands to continue dependence is really the poor option.

Source: Ethanol Across America

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Tuesday, August 12, 2008

Bountiful Crops Beat Bellicose Bluster

corn crop ethanolWhat's most interesting in yesterday's crop production report is what it doesn't say. There's no mention that ethanol demand will cause less wheat to be grown, less bread to go to the hungry, less barley for beer, and less soybeans for soy products.

That's because it's based on facts---not fears, lies and mistruths.

It looks like bumper crops all the way around. Corn will have the second-highest production with 12.3 billion bushels.

The USDA report, August Crop Production, (pdf), also looked at other key crops:

Barley - Barley production at 217.9 million bushels, up from 211.8 million in 2007.
Wheat - All wheat production, at 2.46 billion bushels, up 19 percent from 2007.
Soybeans - Soybean production is forecast at 2.97 billion bushels, up 15 percent from last year

Of course, reality has little to do with Big Food's broken campaign against biofuels. Citing unsupported factoids all year long, the Big Food leaders have purposely sowed the seeds of doubt and mistrust over food production. Most of it just outright wrong - even with last year's crop reality.

Quite literally, facts don't seem to matter. The GMA leaders have willfully employed a "scorched earth" policy--- Use anything to advance their mission to destroy biofuels and advance profits.
F i rst, we must obliterate whatever intellectual justification might still exist for corn-based ethanol among policy elites. (Glover Park Group's Media Campaign )
Fortunately, those with cooler and wiser heads have seen through this rhetoric and continued the course.

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USDA Predicts a Record Corn Crop

USDA Crop Report CornDespite June’s severe flooding in the Midwest, U.S. farmers are on pace to produce the second largest corn crop, according to the Crop Production report released today by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).

Corn production is forecast at 12.3 billion bushels, down 6 percent from last year’s record, but up 17 percent from 2006.

Based on conditions as of August 1, corn yields are expected to average 155 bushels per acre, up 3.9 bushels from last year. If realized, this would be the second highest corn yield on record, behind 2004. Growers are expected to harvest 79.3 million acres of corn for grain, down 8 percent from last year.

This latest forecast from the USDA is a good sign that America's corn crop is resilient and that the market forces are working. Critics have continued to promote a doomsday message of fear. It's a good thing American farmers don't listen to them. Or we'd all have a lot less food to eat.

Source: NASS

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Monday, August 11, 2008

Indiana Presents Paul Dana Biofuels Award to Soybean and Corn Growers

Indiana Lt. Governor Becky SkillmanIndiana Lt. Governor Becky Skillman last week presented the Paul Dana Leadership in Biofuels Award to all of Indiana's corn and soybean farmers for their help in making the state a national leader in the biofuels industry.

The Paul Dana Leadership in Biofuels Award honors the memory of Indy Racing League (IRL) driver Paul Dana, a strong supporter of Indiana's growing biofuels industry who was killed in a racing accident in 2006. Dana was an advocate of biofuels and each year an individual or group is recognized in his honor for their work in the biofuels industry.
"Paul Dana was a hero to so many, as an IRL driver, a personality and an advocate for biofuels. He made a difference and was an inspiration," said Lt. Governor Skillman. "In a very short time Indiana has become a national leader in the biofuels industry. Today we recognize the state's corn and soybean farmers who have helped Indiana achieve such success."
The Indiana Soybean Alliance and Indiana Corn accepted the 2008 Paul Dana Leadership in Biofuels Award on behalf of Indiana's corn and soybean farmers. During the last two years, the Indiana Soybean Alliance and Indiana Corn have invested more than $8 million in research, promotion and biofuels development.
"Indiana's corn and soybean famers have been valuable partners as we continue to expand our biofuels industry," said Lt. Governor Skillman. "We are committed to the production and use of biofuels because they burn cleaner, reduce the state’s dependence on foreign sources of energy and increase the economic opportunities for Hoosiers.
Since January 2005, Indiana has gone from one ethanol plant to seven operational ethanol plants and nearly a dozen proposed or under construction. The combined production of the plants currently operating and those under construction will exceed 1.1 billion gallons of ethanol annually and will use approximately 425 million bushels of corn. The state has also gone from zero to more than 100 public E85 pumps, making it third in the nation in public availability of E85.

Source: Indiana State Government

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Friday, August 8, 2008

Corn Growers Respond to EPA Waiver Denial

The National Corn Growers Association was quick to thank the EPA for its recent decision to deny Texas' request for a waiver from the Renewable Fuel Standard.

According to association president Ron Litterer:
“The higher energy costs, the higher everything else costs,” Litterer said. “Corn ethanol helps provide energy independence and keep energy prices down. It’s part of the solution to the real problem.”
Rick Tolman, CEO of the organization, was interviewed on FoxBusiness yesterday about the EPA's decision and its impact on consumers, buinesses and corn growers.




We had to laugh a bit when the interviewer seemed to know very little about ethanol. The only time she had seen a station was when she was in FRANCE! She really should get out of the Big Apple and visit the rest of America.

Ethanol is blended into gasoline across the country as E10 (an oxygenate replacing the poisonous MTBE) and now at over 1,600 fueling stations as E85. E10 is 10% blend of ethanol with 90% ethanol suitable for all vehicles and E85 is a blend of 85% ethanol and 15% gasoline available for newer Flexible Fuel Vehicles (FFVs).

We also have a complete list of E85 Fueling Sites here at FoodandFuel America.com which offer E85 locations, including for both web and mobile devices.

If you can't see the video, click HERE.

Source: FoxBusiness

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Tuesday, August 5, 2008

Sign Up for Ethanol

South Dakota Sign Up for EthanolA group of ethanol and corn producers from South Dakota have launched a new advertising campaign to encourage supporters to “Sign Up for Ethanol.”

The ads highlight the role of ethanol in increased energy security, economic development and decreased gas prices.

The first ad in the series shows how domestically-produced fuel helps to create energy security by not investing our country’s dollars into fuel produced in hostile countries, thousands of miles away.

How Far Should You Have to Go for Your FuelOther ads in the series highlight the role ethanol is playing in lowering gas prices for consumers, and the impact the ethanol industry is having on our domestic economy.

Source: Sign Up for Ethanol

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Thursday, July 17, 2008

It's Not a Choice Between Food and Fuel—We'll Need More of Both

So now we're being told we have to choose between food and fuel. At least that's what people who should know better would have you believe as they ponder the problems of rising costs for both.

This didn't seem possible when policymakers were putting the finishing touches on a new energy bill just six months ago. Meant to curb our nation's thirst for gasoline through greater efficiency in vehicles and expanded use of ethanol as an alternative fuel, the legislation was shaped by a Democratic-led Congress and enthusiastically embraced by a Republican president. And based on what's happened to fuel prices since then, it would seem such an approach was long overdue.

Yet the forces of status quo are now suggesting we should stop dead in our tracks and restrict the use of ethanol. They do so by pointing to rising food costs and blaming biofuels for the problem. It's one or the other, they say, and farmers are meant to provide food. As someone who works in the agriculture industry, I would strongly suggest we don't have the luxury of such a choice.

The fact is global food demands will double in the next 40 years and world energy demand will grow at least 40 percent in the next 25 years. That's what happens when you add 3 billion people to the planet while also happily experiencing rapid economic growth and higher standards of living in countries once left behind in desolate poverty.

We could spend a lot of time here refuting the notion that our policies to expand ethanol use are a problem by pointing out that fossil fuel costs are having a far greater impact on food prices than increased corn production, and that production shortfalls in wheat and rice are the real reason behind lower surplus stocks and higher food prices. There's plenty of bad policy driving the food shortage, not the least of which are short-sighted attempts to hoard grain by curbing or eliminating exports. But ethanol-friendly incentives aren't the culprit.

The real threat is to remain caught up in the blame game while actually buying into the misguided notion that farmers are forced to choose between delivering food or fuel. Much more of both will be needed. The critical choices have to do with how we can provide more food and energy while using fewer resources. And in the spirit of the current campaign season, part of the answer can be framed by modifying a sage piece of political counsel: It's the yield, stupid.

Here's where there's good news. In the last 50 years, through technology breakthroughs and seed improvements, we have doubled yields of corn in the United States from 75 bushels an acre to 150. And we think we can double yield again to 300 bushels an acre in another couple of decades.

We're now feeding twice as many people using 20 percent less acreage, while reducing the amount of pesticides used. The elimination of fuel associated with less spraying and plowing is also keeping about 20 billion pounds of carbon tied up in the ground, which is equivalent to taking 4 million automobiles off the road for a year.

Rather than limiting farmers to the false choice of providing either food or fuel, we should instead place our priorities on areas that enable agriculture to do both more productively and with less strain on our environment.

Whether it's improved seed, the use of fertilizers, practices like conservation tillage or the use of biotech crops, when all the rhetoric has faded and people honestly look at the landscape, it's all about increasing yields and doing it in a way that uses less of the world's precious resources.

By Theresa Schmalshof, July 2008

Theresa Schmalshof and her husband, Gary, raise corn and soybeans on their farm near Adair, Ill. She serves on the board of the National Corn Growers Association.

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Monday, July 14, 2008

Ethanol Industry Helps Rural Kansas Economy

Jere White Kansas Corn Growers Association ethanolThe following was a response by the Kansas Corn Growers Association's Jere White in response to a recent opinion piece in the Wichita Eagle by Seaboard Foods blaming corn ethanol for food price increases and demanding that Congress repeal the Renewable Fuels Standard.

Seaboard Foods' Rod Brenneman complained that the ethanol industry is strangling pork producers ("Ethanol mandate hurts livestock producers," July 6 Opinion). These are strange words from the executive of a company whose first quarter earnings were up 42 percent from the same quarter last year.

Brenneman is a leader in the Food Before Fuel coalition. The coalition is managed by Glover Park Group, the same East Coast public relations firm that is handling the Grocery Manufacturers Association's now infamous ethanol misinformation campaign. The goal of these two groups is simple: Get rid of ethanol so food companies can once again have access to cheap corn. Unfortunately for Seaboard and the other big food manufacturers, it isn't that simple.

Seaboard has been a good friend to corn growers over the years, especially when corn was priced below our cost of production. Writing his commentary from his corporate office in metropolitan Kansas City, Brenneman feigned concern for the small family pork producer.

Our office is located in rural Garnett. All four of our employees come from family farms -- both livestock and grain. We know that small livestock producers are struggling with higher corn prices, because those producers are our friends and neighbors, association members, and two of our four employees.

Several factors have contributed to higher corn prices. One factor is certainly ethanol, and we will gladly take some credit for that one.

The boom in ethanol came about when growers in Kansas and the Midwest, tired of selling their corn for less than $2 a bushel, decided to do something for themselves and their rural communities. Many growers and community members took a big chance, investing money in local ethanol plant projects to create a market for their crops, to create jobs and to increase revenue for their communities. I believe this is called rural development.

What about the other factors? The value of the U.S. dollar has dropped, and economies of many foreign countries, like China and India, have exploded. So the export market for corn and other grains has grown, increasing demand.

About the same time, investors and speculators, wary of the stock market, moved to investing in commodities, increasing volatility. Ever-increasing energy costs, thanks to our dependence on foreign oil, play the biggest role in the cost of food production.

It seems shortsighted for Seaboard, looking for lower production costs, to go after only ethanol -- a homegrown industry that is in many cases owned by family farmers.

Brenneman justified his position by stating that ethanol is the one factor that Congress can control and states that are "feeling the pinch" should speak up. He should remember that many of the ethanol plants in Kansas and other Midwest states are owned by family farmers, and those plants are providing jobs in those small rural communities. Hurting the ethanol industry will hurt our rural Kansas communities.

Brenneman stated that "there are real jobs, real people and real communities at risk here." We couldn't agree more."

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