SD Corn

Corn Comments Podcast with Jim Woster

Jim Woster addresses the recent attacks on Lean Finely Trimmed Beef. This highly concentrated lean beef is not only nutritious but also good tasting. The producer of LFBT, Beef Products Inc. makes a huge difference in so many ways as they employ 3,000 people and add value to the entire United States cattle market.

“Era muy caliente, y muy seco.” For those who don’t speak Español, that translates to “It was very hot, and very dry.”

That description comes from South Dakotan, Kevin Schnaser who recently served as a translator for a group of agriculture students from South Dakota State University who traveled to Argentina on a two week study abroad trip in early January of this year.

Those words are exactly breaking news, but due the role that Argentina plays in to the global markets, they are sort of a big deal. Argentina has been the #2 leader in global corn exports, and #3 in soybeans. So when a major grain exporter struggles, the world  takes notice.

So just how bad is it? Well according to Schnaser who has served as a translator on student trips to Argentina for the past four years, “This has been the hottest summer weather Argentina has experienced in 50 years, it was easily over 100 degrees every day.”

He went on to say, “The corn was pollinating at the time we visited and the silk coming out of small green ears were in no shape to be pollinating.”

The group toured many different components of the countries agriculture and were able to speak with an agronomist at a farm in the Province of La Pama. He told the group that the area had projected corn yields of between 100-150 bushels per acres. But due to the impact of the drought, that number had been cut in half to between 50-75 bushels per acre, even if they were to receive some rain.

That projection comes from a more central part of the country where it is much drier than the coast.  Analysts currently are predicting that at least one-third of Argentina’s corn crop has been lost due to the drought which amounts to around 10 million metric tons or 10% of global exports.

Some areas are much worse. The same agronomist who visited with the group said that in the province of Cordoba, the corn fields were brown and being grazed by cattle.

So what does this mean for exports? In Argentina, the populist government controls the markets and can shut down exports of grain which keeps the price down domestically insulating the country from rising food costs, but not so much for the rest of the world, especially Europe which is a major importer of the countries commodities.

A marketing analyst from Lartirigoyen told the group that a certain fixed amount that will be needed within the country and beyond the government will allow to export, with the shortage in production that is already going to occur in soybeans, you can expect an increase in your crop prices in North America.

To sum up the message from Argentina; even with some rain, there will still be a significant crop loss.

*Photos courtesty of Dr. Julie Walker, Associate Professor, SDSU Dept of Animal Science

The United States House of Representatives is on a mission to take apart the Environmental Protection Agency. Whether they are right or wrong isn’t the issue, it’s the fact that they continue to put politics ahead of the countries clean energy future.

Last January, the EPA approved the blend E15 (15% ethanol, 85% gasoline) as being safe for non flex-fuel cars and light trucks model year 2001 and newer. The announcement came after several delays and substantial amounts of testing. In fact, E15 is the most tested fuel in American history. So what exactly is the problem?

Two U.S. House members, John Sullivan (R-OK) and Gary Peters (D-MI) have introduced an amendment to further block the EPA’s financial means of implementing E15 into the marketplace.

The freshmen in the House are touting overall spending cuts, but would it make sense to block the implementation of E15 after all of the money that has already been spent on its testing and approval? And wouldn’t the blend benefits including lowering greenhouse gas emissions, increased tax revenues and less imported petroleum from not so nice countries far outweigh those costs?

America uses a lot of oil and imports 50% of it. That number has decreased by 10% in the last five years due in part to increased biofuel production. E15 would continue America on the path of lessening its dependence on foreign oil, create new green jobs and further enhance the countries energy security.

“Installing E15 into the marketplace needs to be about sound science, not party politics,” said South Dakota Corn Growers Association President, Gary Duffy, a farmer from Oldham, SD. “Higher blends of ethanol at the pump will not only save consumers money, but keep those dollars right here in the United States. It’s time to make our countries 90% gasoline mandate a thing of the past and let America’s corn farmers fuel us into the future.”

During a press conference from Georgetown University on Wednesday morning, President Barack Obama laid out his administration’s “Energy Security” blueprint moving forward. The plan detailed having 80% of our energy be clean energy by the year 2035 which included biomass, wind, solar, natural gas, hydropower, hybrids and also biofuels.

“We will aim to cut our imported oil by 1/3 by the year 2025,” said Obama. “We will keep on being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy.”

Some of the most effective opportunities to build our energy security can be found in our own backyard.

“Corn ethanol is already working to make a significant contribution to reducing our foreign-oil dependence,” a senior White House official said.

Senators from both sides of the aisle agree with the President’s view on the importance of domestic energy security.

“The strength of our nation is tied to the strength of our energy economy,” stated Senator Amy Klobuchar.

“I think our country is committed to a broad-based energy policy for national security and economic security and energy independence,” said Senator Chuck Grassley.

In order to expand our energy independence, additional blender pump infrastructure will be needed to make home-grown fuels like ethanol more accessible to the American consumer.

“One of the biggest problems we have with alternative energy is not just producing the energy, but also distributing it. We need to be investing in fueling stations…and consumers need to make sure that they are creating a demand by purchasing flex-fuel and hybrid vehicles,” said Obama.

The President also said that his administration will help break ground on four advanced biofuel refineries within the next two years with the capabilities of producing at least 20 million gallons per year.

 “We are encouraged by President Obama’s recognition of the important role domestic biofuels must play in America’s energy future. When it comes to replacing imported oil, no other energy technology can match ethanol today,” said Bob Dineen, CEO of the Renewable Fuels Association.

As controversy continues to swirl in the Middle East, oil prices continue to soar. High oil prices affect nearly all American motorists in a negative way and the time has come for additional domestic alternatives.  Biodiesel, ethanol, electric, hydrogen, natural gas and advanced biofuels are all part of the current and future plan but further actions are needed now to free ourselves from our countries continued reliance on imported oil.

Currently ethanol is the only readily available alternative to gasoline. There are a number of ongoing efforts to increase domestic ethanol usage including additional blender pumps, more flex fuel vehicles and the EPA approving E15 for vehicles 2001 and newer. But the national debt and misinformation from “big oil” have led congress down the same old beaten path of relying on foreign countries for our energy.

“Acknowledging that we have an addition to foreign oil is nothing new, but until we take the appropriate actions to become energy independent, America will continue to be held captive to OPEC’s oil prices,” said Gary Duffy, president of the South Dakota Corn Growers Association. “Folks need to get behind domestic, renewable sources of energy like ethanol as it is not only a cleaner burning alternative, but it also supports thousands of jobs and benefits rural economies.”

Currently ethanol fulfills around 10% of our countries fuel supply which reduced our dependence on foreign oil by 445 million barrels in 2010 while using only 3% of the worlds grain supply. It’s widely known that grain-based ethanol is not the complete long-term answer to achieve energy independence but it is continuing to pave the road by creating a market for cellulosic ethanol and other advanced biofuels that will continue to lessen our demand for oil.

“Right now we have a 90% gasoline mandate,” added Duffy. “Limiting our use of ethanol to consumers will only hinder the development of advanced biofuels in the long term.”

In an attempt to reduce the federal budget, the United States House of Representatives voted to block the implementation funding of E15 to the marketplace through House Resolution 156.

While attempting to save money, Congress is actually squandering tax payer dollars as House Resolution 156 will waste the money that has been spent by the Environmental Protection Agency in the successful testing of E15. A move to E15 in light trucks and cars is a huge step for biofuels and the EPA recognized that by testing the blend more than any other fuel in history.

Finally H.R. 156 continues our country on a path of further dependence on foreign oil. E15 would reduce America’s dependence on foreign oil by a projected 7 billion gallons annually.

“They have changed the rules on testing for increased blends of ethanol, still results have always shown ethanol can be safely used in vehicles” said South Dakota Corn Growers Association president, Gary Duffy, a farmer and rancher from Oldham, South Dakota. ” We have been mandated 90 percent gasoline for too long.” 

The House of Representatives voting displayed an obvious sense of geography and not so much political party. However, things will be different in the Senate.

“With the ethanol industry still in its infancy, funding cuts to ethanol, America’s only readily available alternative to gasoline, could be costly to future biofuel markets,” said Duffy. “Sound science by the EPA has proven E15 safe for vehicles 2001 or newer, but congress now stands in the way of consumer choices at the pump.”