ethanol
Passage of Feinstein Amendment Harmful to All Americans
From National Farmers Union:
WASHINGTON (June 16, 2011) – National Farmers Union (NFU) President Roger Johnson issued the following statement in response to the U.S. Senate’s passage of the amendment by Sen. Dianne Feinstein, D-Calif., to the Economic Development Revitalization Act:
“NFU is extremely disappointed at the Senate’s decision to pass this short-sighted amendment. High energy prices are already damaging a very fragile economic recovery. This amendment, which cuts all tax credits for ethanol and biodiesel as of July 1, will push energy prices higher. A recent study by Iowa State University and the University of Wisconsin found that ethanol reduces gas prices by an average of 89 cents per gallon.
“Ironically, this tax credit that saves Americans nearly a dollar per gallon of gasoline is cut, while Big Oil subsidies, which cost a total of $40 billion per year, are allowed to continue. The passage of this amendment is not just a loss for rural America, but for all of America. The elimination of this tax credit will seriously harm a legitimate and viable alternative to oil.
“Ethanol is a homegrown fuel that will help reduce America’s dependence on foreign oil and give us more control over our fuel supply. It is also a cleaner alternative to oil.
NFU applauds Senate vote, calls for real discussion on renewables
From National Farmers Union:
WASHINGTON (June 14, 2011) – National Farmers Union (NFU) President Roger Johnson issued the following statement following Senate consideration of the motion to end debate on Amendment 436 offered by Sen. Tom Coburn, R-Okla.
“We are pleased that the Senate voted today to reject consideration of the amendment by Sen. Tom Coburn to repeal ethanol tax credits. We ask the Senate to now shift attention to a more rational, comprehensive approach to the future of the renewable fuels industry. That approach must provide certainty to the current renewable fuels industry over the long-term, invest in renewable fuel infrastructure to provide consumers greater alternatives to expensive foreign oil, and continue investments in next generation renewable fuels.”
A nineteenth century farm with twenty-first century technology—back to the food/fiber/fuel future?
(April 21, 2011) - The current high prices and projections of low carry-over stocks have rekindled the food vs. fuel debate. Certainly the ethanol industry, directly, and corn farmers, indirectly, will face increasing calls for lowering the renewable fuels mandate and a reduction in or elimination of the blenders tax credit. If there are planting problems this spring or weather/pollination problems this summer, the pressure for change will intensify.
As we listen to this debate, the implied assumption is that the sole purpose of farming is to provide food and certainly that has been true for over half a century. But if we look back at the nineteenth century, a different more complicated picture confronts us. At that time most farms had a woodlot that provided firewood for the farm household and maybe some to sell to townspeople.
In addition, the farm had a significant amount of its land dedicated to pastureland to provide food—energy—for the animals that were used to pull the implements used in farming and to pull the buggies, wagons, and sleighs that were used to go to town, school, and church. The draft animals were also fed oats and hay that was grown on the farm. Even the addition of steam tractors did little to change this structure as they were usually fueled with firewood.
MFU applauds passage of agriculture bill
ST. PAUL (April
15, 2011) – Minnesota Farmers Union (MFU) applauds the signing today of S.F.
1016, the $76.8 million omnibus agriculture finance and policy bill by Governor
Mark Dayton. The Legislature passed the
conference committee bill Thursday on a strong bipartisan vote that reflects
support of the legislation. MFU also thanks the work of the Chairs of the
Agriculture Committees Senator Doug Magnus (R-Slayton) and Representative Rod
Hamilton (R-Mountain Lake). 
NFU Applauds EPA’s E15 Decision
From National Farmers Union:
WASHINGTON (Jan. 21, 2011) – National Farmers Union (NFU) President Roger Johnson issued the following statement after today’s announcement by the Environmental Protection Agency (EPA) allowing E15 for use in automobiles manufactured between 2001 and 2006:
Ethanol and oil subsidies: A case of competing claims and self-justification
(November 5, 2011) - A common question we hear when we tell people that we are agricultural policy analysts is “Well, whaddya think about ethanol subsidies?” That question becomes critically important as the blenders credit, the ethanol import tariff and the small producers’ tax credit face a deadline of December 31, 2010 for renewal by a lame duck Congress.
Over a period of three weeks (October 13 – October 29, 2010), Todd Neeley, a DTN staff reporter, wrote a series of six articles that compared the subsidies received by the ethanol and oil industries. Neeley writes, “DTN spent months examining the various tax credits, incentives, and other financial support received by the oil and ethanol industries to see which one gets more subsidies.” The information he uses was culled from “academic studies, state government documents, press releases, government websites, and other sources.”
Reading the articles, one is reminded of a scene from the 1972 movie, Deliverance, only this time what we have is not “Dueling Banjos,” but rather “Dueling Subsidies.”
EPA takes first step on E15
ST. PAUL (October 13, 2010) – Minnesota Farmers Union (MFU) President Doug Peterson welcomes the U.S. Environmental Protection Agency’s (EPA) announcement today of the approval of E15 blend fuel in 2007 and newer vehicles. On March 6, 2009 Growth Energy (www.growthenergy.org) submitted its Green Jobs Waiver to the EPA, seeking a regulatory change to permit an increase in the allowable blend of ethanol in fuel to 15 percent (E15), from the arbitrary limit that currently caps the amount at 10 percent (E10). MFU says the approval for newer vehicles is a good first step, and MFU is confident it will be followed by approval for older model vehicles once the Department of Energy (DOE) completes its testing later this year.
“Minnesota has been a leader in biofuels, and this announcement is a step in the right direction to reducing America’s dependence on foreign oil, creating U.S. jobs and improving our environment” said Doug Peterson, MFU President.
Other points about the EPA announcement:
Ethanol blends should be labeled clearly and accurately at the pump
St. Paul (June 2, 2010) - The Federal Trade Commission (FTC) is working on a label for ethanol blends at the pump. Minnesota Farmers Union is urging the FTC to use labels that are accurate, descriptive, and not harmful to the ethanol blends so that consumers who drive flex-fuel vehicles can have a real, home-grown, domestic fuel choice.
"Currently, the ethanol industry replaces 364 million barrels of imported oil each and every year," said Doug Peterson, Minnesota Farmers Union President. "A major study by the Windmill Group identifies 645,000 jobs created by ethanol, and $92 billion to our country's Gross Domestic Product."
A study by Yale University's Journal of Industrial Ecology states that grain ethanol has 59 percent fewer Greenhouse Gas Emissions when compared to conventional gasoline, and the use of ethanol reduces carbon emissions by 16.5 million tons of greenhouse gas emissions. Cellulosic ethanol, the second generation of renewable fuels, is 90 percent cleaner than gasoline, and with the current feed stock of biomass, there is enough biomass in the country to produce 85 billion gallons of cellulosic ethanol annually!
Farmers Union supports ethanol legislation
St. Paul (March 26, 2010) - Minnesota Farmers Union (MFU) supports federal legislation that would extend the 45-cents per gallon Volumetric Ethanol Excise Tax Credit (VEETC) and the tariff on imported ethanol until 2015.
"In Minnesota, the ethanol industry provides about $6 billion for our economy and about 26,000 jobs," said Doug Peterson, Minnesota Farmers Union President. "That is why passing this legislation is so important to continue the development and production of ethanol and support our local economy."
The tax credit is set to expire at the end of 2010. This legislation would extend the tax credit for small producers, and also extend a tax credit for producing cellulosic ethanol, the second generation of ethanol. Representative Collin Peterson and Representative Tim Walz are cosponsors of this bill.
Driven by ethanol at break-neck speed
(June 12, 2009) - In this series of columns we examine the impact of the rapid run-up and subsequent decline of crop prices on various groups, including crop farmers; livestock, dairy and poultry producers; importing countries; and consumers and whether or not a properly managed grain reserve program could have mitigated the problems faced by each of these groups. In this column we look at the ethanol industry as an important cause and casualty of the price bubble.
To some extent the increased use of corn in the production of ethanol can be attributed to changes in agricultural policy in 1996 and the growing scientific consensus on the role of human activity on global warming. The 1996 Farm Bill effectively eliminated the floor on crop prices and, when the universally anticipated structural increases in corn exports did not materialize, allowed grain prices to fall well below the cost of production.
The explanation for the low prices was "over production" even though the year-ending stock-to-use ratio for the years beginning with 1998 was well below historic levels. With significant fixed costs, crop farmers continued to plant their fields to minimize their losses, hoping that a random crop failure somewhere would lift prices to profitable levels.