NBB Responds to AEI Discussion  
Compiled By Staff   
July 3, 2008   
  
The American Enterprise Institute held a conference Wednesday in which the global food crisis was discussed. Biofuels were part of the discussion, and National Biodiesel Board CEO Joe Jobe responded on the conference.

"The National Biodiesel Board welcomes any discussion on the crises of energy, food and climate, including the one featured at a conference sponsored by the American Enterprise Institute," Jobe says. "That discussion, which continues throughout the country and the international community, should be based on information that is both accurate and contextual. Research conducted by the USDA and other experts overwhelmingly concludes that the demand for biofuels-related feedstock plays a very small role in global food supply and pricing."

According to Jobe with gas prices skyrocketing past $4 a gallon the addition of biofuels to our fuel supply is actually helping to keep fuel prices from rising at an even faster pace. He also stated that biodiesel production uses a small portion of the nation's soybeans.

"More than 80% of the soybean's yield is protein that enters the market for either human consumption or animal feed and only 12% of U.S. soybean production was used by the U.S. biodiesel industry to produce fuel," Jobe says. "It is worth noting that biodiesel in the U.S. is also made from a variety of other sources, such as waste products like recycled restaurant grease."

Plaintiffs Ask Court to Consider New BSE Case in Ruling  
Compiled By Staff   
July 3, 2008   
  
R-CALF announced Wednesday it has filed an additional legal challenge to the U.S. Department of Agriculture rule allowing Canadian cattle older than 30 months (OTM) to be imported into the U.S. Ten other plaintiffs joined R-CALF in asking the District Court of South Dakota to consider the latest case of bovine spongiform encephalopathy in a five-year-old cow from British Columbia when ruling on an injunction to block USDA's rule.

The rule, which took effect Nov.19, 2007, allows cattle born in Canada after March 1, 1999, to be imported into the U.S. In its new notice to the court, R-CALF pointed out that half of the BSE cases detected in Canadian-born cattle have been in cattle born after March 1, 1999. R-CALF charged that USDA's conclusion that the Canadian feed ban was effective in stopping the disease is "speculative and inconsistent with available information." The court filing pointed out that the latest BSE-infected animal "could have been imported into the U.S. before it died and was determined to have BSE," bringing the "imminent threat of substantial, irreparable injury" to the plaintiffs unless the court grants a preliminary injunction.

R-CALF told the court that recent massive street demonstration against U.S. beef in Korea could now be viewed "with the knowledge that two of the three BSE cases discovered since the challenged rule went into effect could have been imported legally into the U.S. from Canada under the challenged OTM rule before they succumbed to BSE."

USDA Official Tapped for Farm Credit Position  
Compiled By Staff   
July 3, 2008   
 
President George Bush announced that he will nominate U.S. Department of Agriculture undersecretary for farm and foreign services Dr. Mark Keenum as a director of the Farm Credit Administration. Keenum is USDA's point man on the implementation of the new farm bill.

There has been no word from the Senate Agriculture Committee on when it will take up a confirmation hearing. With little time before the August recess, it might not occur before fall. Keenum holds a doctorate in agricultural economics from Mississippi State University and was chief of staff for Sen. Thad Cochran, R-Miss., before his career at USDA.

Meanwhile, William J. Hoffman has been named Chief Operating Officer for the FCA. Hoffman will assume his new duties next week. Hoffman most recently served the Agency as Executive Assistant to Board Member and former Chairman and CEO Nancy Pellett.

Now Is the Time to Photograph and Map Water-Damaged Areas 
Compiled By Staff   
July 3, 2008   
  
Good drainage is always important, but it is especially so during cloud bursts, which some Illinois landowners have been experiencing the past few weeks.

Bob Frazee, University of Illinois Natural Resources educator, says the old axiom "When it rains – it pours" has pretty accurately described the rainfall which has occurred throughout many areas of Illinois during the 2008 growing season. Some farmers get a little, some get a lot.

Frazee suggests that now is an excellent time for landowners to make notes and take photographs of damage at the exact location of ponds and wet spots. Record these on a map of the farm. This will assist district soil conservationists, drainage engineers, and contractors to help design and install needed drainage improvements.

According to Frazee, excess water is the principal problem on over 3 million acres of Illinois cropland. Farmers and landowners need to carefully examine the low areas and wet spots that plague some of their fields. Although many soils are naturally well-drained, others must be drained artificially to make them suitable for profitable crop production.

The growth of most crops is sharply affected by continued saturation of a substantial part of the root zone or by ponded water on the surface. Although the water itself may not kill the plant or its roots, saturation of the root zone results in a deficiency of oxygen and accumulation of toxic gases. Frazee emphasizes that even a short period of oxygen deficiency can reduce water and nutrient uptake and root respiration, and can cause a buildup of toxins that kill cells and roots and eventually the entire plant.

According to Frazee, there are three primary objectives of drainage for most Illinois soils:

1: To provide a proper balance of soil, water, and air in the root-zone to encourage optimum plant growth.

2: To increase the yield or quality of a crop, or to improve the soil environment to allow production of a higher-valued crop.

3: To provide better conditions for planting and harvesting the crop. These objectives all depend on a lowered average water table, the first function of a drainage system.

Draining soils removes excess water from land by means of surface or subsurface conduits. Frazee suggests that a good "rule of thumb" is that a drainage system should be capable of removing water from the soil surface and lowering the water table to about 12 inches beneath the soil surface in 24 hours and to 21 inches in 48 hours.

The first step to take in evaluating a drainage problem should be to schedule a meeting with agency staff at the county NRCS and FSA Offices. It is crucial that a Wetlands Determination be obtained from these agencies for each individual field. If the affected field is not impacted by the federal wetlands designation, the landowner may want to investigate both surface and sub-surface options with a local land improvement contractor.

GM Will Offer 18 Flex Fuel Vehicles in 2009  
Compiled By Staff   
July 2, 2008   
  
General Motors will offer an additional three flexible fuel vehicles in model year 2009.

GM is committed to making their line at least half E85 compatible by 2012.

"We continue to believe that biofuels, specifically E85, is the most significant thing we can do in the near-term to offset future energy demands," says Beth Lowery, GM vice president of Environment, Energy and Safety Policy. "We are on target to make 50 percent of our vehicles flex-fuel capable by 2012 providing the infrastructure is in place."

The models cover the gamut from the four-cylinder Chevrolet HHR small crossover to the full-size Cadillac Escalade ESV luxury utility.

Infrastructure includes both the availability of the E85 fuel and stations where it is sold. Currently, there are more than 1,600 E85 stations throughout the United States. You can find a complete listing of E85 facilities at www.E85Refueling.com.

GM cars and trucks account for 3 million of the 7 million flex-fuel vehicles on U.S. roadways and the company produced more than 1 million flex-fuel models in North America and Brazil last year.

GM offers these 2009 FFV models at no extra charge to the consumer:

Chevrolet: Avalanche, Express, HHR, HHR Panel, Impala, Silverado, Suburban, Tahoe

GMC: Savana, Sierra, Yukon, Yukon XL

Cadillac: Escalade, Escalade ESV, Escalade EXT

Hummer: H2, H2 SUT

Buick: Lucerne

For a listing of all flexible fuel vehicle models by year and manufacturer, to go www.E85Fuel.com. 

Planted Acreage Exceeds Expectations  
Compiled By Staff   
July 1, 2008   
  
The U.S. Department of Agriculture's June grain stocks and acreage reports revealed larger numbers than generally expected. Current estimates were negative for corn prices but provided some support for soybean prices.

"Taken together, the USDA reports were negative for corn prices," said Darrel Good, University of Illinois extension economist. "With a slowdown in corn use already happening, year-end stocks will likely be at least 100 million bushels larger than the 1.433 billion bushels projected by USDA earlier in the month. In addition, the acreage estimate suggests that less rationing will be needed next year, although stock levels will still likely decline during the 2008-09 marketing year."

For soybeans, production may fall short of the 3.1 billion bushels USDA projected earlier in the year, keeping stocks extremely tight for another year. Only 306 million bushels of wheat were in storage at the beginning of June, down 33% from a year ago and the lowest since 1949.

"Corn use during the summer quarter will be impacted by the rate of liquidation of animal numbers, which has been extremely modest to date, and the rate of wheat feeding, which should be substantial. Use for the year may fall short of the USDA projection of 6.15 billion bushels," Good said.

Widespread flooding is expected to result in more abandoned acres or, perhaps, more acres harvested for silage. Yield potential is difficult to predict, but based on improving weather, a benign weather forecast for July and improving crop condition ratings, potential yield is likely to be at or above USDA's June assessment of 148.9 bushels. The 2008 production potential may be between 11.8 billion and 12.0 billion bushels, Good said.

Yield potential also is still very uncertain due to late planting in many areas. Favorable summer growing conditions that extend well into September could result in a U.S. average yield near the trend of 42 bushels, producing a crop of more than 3 billion bushels. In general, however, the trade is probably skeptical that a trend yield in soybeans can be attained, Good said.