Obama Encourages Crop-Based Fuel Production

Significant job-creation, environmental and energy-security benefits are associated with the domestic production of biodiesel and ethanol; benefits that President Barack Obama recognized in his State of the Union Address.

Biodiesel and ethanol are two types of biofuels that are liquid fuels derived from renewable resources such as plant or animal materials. The U.S. is mandated to produce 36 billion gallons of biofuels by 2022 as outlined in the 2007 energy bill, which is nearly double the 12 billion gallons it currently mandates.

“Providing incentives for energy efficiency and clean energy is the right thing to do for our future, because the nation that leads the clean-energy economy will be the nation that leads the global economy, and America must be that nation,” Obama said.

Biodiesel is a fuel blend made primarily with soybeans. Ethanol is a fuel blend made primarily with corn.

Both crop-based fuel sources are advantageous for the agriculture industry. Farmers who grow corn and soybeans can be privy to the success and failure of the biofuels market if portions of their harvest are sold to biorefineries. But they’re not the only ones who are positively impacted.

Consumers also profit from domestic biofuel production. Biofuels supplement the U.S. fuel supply, offsetting the cost of regular fuel prices. Domestic biofuel production creates jobs to spur economies nationwide. Biofuels are also better for the environment because they’re non-toxic and don’t deplete natural resources. Biofuel use improves domestic security by reducing our reliance on imported oil.

Biodiesel Stats

• Biodiesel production in the U.S. provided more than 23,000 jobs nationally and more than $4 billion to the nation’s GDP in 2009.
• Without biodiesel, gas prices would increase $.20 to $.35 per gallon, according to the U.S. Department of Energy, which saved the average U.S. household $150 to $300 in 2008.
• Biodiesel is extremely energy efficient; for every one unit of energy required to produce it, it returns 5.2 units of energy.

Ethanol Stats

• In 2009, the U.S. ethanol industry supported nearly half-a-million jobs.
• Research shows a 35-to-46 percent reduction in greenhouse-gas emissions and a 50-to-60 percent reduction in fossil-energy consumption because of the use of ethanol as a component in motor fuel.
• Most of the standard gasoline sold in the U.S. uses a 10-percent blend of ethanol.
• The production and use of 10.6 billion gallons of ethanol in 2009 displaced the need for more than 321.4 million barrels of oil and saved American consumers and taxpayers more than $32 billion.

Obama noted the urgency and importance of biofuel production to our country’s energy independence:

“But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. That means building a new generation of safe, clean nuclear-power plants in this country. It means making tough decisions about opening new offshore areas for oil and gas development. It means continued investment in advanced biofuels and clean-coal technologies,” Obama said.

The Biofuels Interagency Working Group, created by Obama’s administration in May, is devoted to implementing the policies necessary to progress the country’s outlined energy initiatives.

As part of his clean-energy agenda to advance job creation and reduce dependence on foreign oil, Obama recently met with 11 governors to discuss a “non-ideological approach” to energy and efficiency.

As climate change continues to develop into a deeper political issue, it will be interesting to witness how the country responds to Obama’s incentives, and how American agriculture will step up to the plate.










Rural Tour: Renewing America’s Promise

Concerts, comedians and a variety of shows regularly travel the nation to educate and entertain. Most recently, the president’s Rural Tour has been making pit stops throughout the U.S. to elicit feedback about and support for government involvement in programs to better rural America.

U.S. Secretary of Agriculture Tom Vilsack is spearheading the awareness initiative that began June 30. The tour, designed to facilitate conversation via a blend of education outreach and community forum feedback, is part of the Obama Administration’s plan to “renew America’s promise.”

According to the USDA, “The variety of topics that will be addressed reflects the array of issues facing rural America, including broad-based rural health, economic development, infrastructure, education, energy, natural resources and agriculture.”

At each stop, Vilsack, alongside local elected officials, discusses how the USDA and other federal agencies are working to strengthen rural America by means of current and proposed government programs. Attendees then have an opportunity to voice opinions, suggestions and concerns in efforts to promote a dialogue between government and constituents.

“Government does not have all the answers, but it can help share innovative ideas and problem-solving techniques from communities with the rest of the country,” Vilsack said. “Building a foundation for success and prosperity for the new 21st-century economy will take a collective and collaborative effort with all of us talking, debating and solving together.”

Vilsack encourages citizens to “call, e-mail, write, videotape, photograph, you name it,” to offer input about the state of rural America.

Highlighted agricultural topics include rural broadband access, climate-change legislation and forest management, with emphasis on localized concerns.

Discussions involved ag-debt restructuring in Iowa, obstacles facing the dairy industry in California, carbon sequestration in Virginia and creating business-relationship opportunities among food industry entities in Ohio.

Scottsbluff, Neb., will welcome the tour this week to discuss production agriculture, and Las Cruces, N.M., will conclude the nine-stop circuit with a discussion aimed at rural infrastructure.

You can get more information and updates about the Rural Tour at RuralTour.gov or at Twitter or Facebook.

A summary of the tour can be viewed in a YouTube video created by the USDA.

Is the Rural Tour a success? Should other states/topics have been included for discussion? Can members of the agricultural industry model a similar tour for industry-specific topics in the future?

Going Green Could Boost the U.S. Economy, Create Jobs and Benefit Agriculture

Now that a new administration is in place, things are going to change. One of the things President Barack Obama plans to do is request congressional approval to invest $150 billion over 10 years on clean energy initiatives.

Some of these initiatives include expanding the biofuels and fuel infrastructure, advancing commercialization of hybrids, developing renewable energy and making the transition to a new digital electricity grid. This investment in clean energy reportedly could help Americans reduce greenhouse gas consumption by roughly 10 percent each year. If this proposal passes, it could create or sustain more than 3 million jobs across the nation.

Groups like the Environment America have made plans and recommendations for Obama’s green investment in addition to 29 other environmental groups that released a comprehensive report stating a list of actions and policies they would like to see implemented after Obama takes office.

The full report, which can be found here, was developed by 29 environmental advocacy groups including Center for International Environmental Law, League of Conservation Voters, Physicians for Social Responsibility and the Population Action International. The report discusses the need for investment in the creation of jobs in the renewable energy sector, building weatherization, a retooled auto industry, investment in infrastructure and major improvements to the electrical grid. The report also outlined what every federal branch agency, department and office can do on a number of other environmental issues.

Agriculture issues are also very important to these 29 environmental groups. The five issues listed for the Department of Agriculture are animal and plant health inspection service, farm service agency, forest service, natural resources conservation service and research, education and economics. Some of their goals include reinvigorating the conservation reserve program, halting policies that promote native grassland conversion and improving conservation compliance.

Environment America, a non-profit advocacy group with offices in 27 states and Washington, D.C., released a report, which can be found here on Jan. 13 that describes the benefits and recommendations regarding Obama’s $150 billion investment including weatherizing U.S. homes and businesses, training workers for new clean energy industries and increasing public transportation capacity to meet growing demand.

“Our nation can no longer afford the toll dirty energy is exacting on our environment and economy,” said Amy Gomberg, program director with Environment Ohio, a chapter of Environment America. “Clean energy can protect our environment and rev our economic engine to generate a brighter future for Ohio.”

According to Environment Ohio, Ohio is one of the most energy-dependent states in America. Each year, Ohio sends billions of dollars out of state to support our addiction to those fossil fuels.

In Ohio, several companies such as Jennings Heating are eager and ready to contribute to the economy’s green efforts.

“I’m just so excited by this plan,” said Mike Foraker, chief executive officer of Jennings Heating. “I’m extremely impressed and believe this plan does the job.”

Besides Ohio, numerous states across the nation have already begun planning how they will utilize the $150 billion.

In Maryland, some of the projects planned are a $5.5 million energy-efficient overhaul to all the state’s police barracks and funding for solar and geothermal systems.

Michigan officials have set a goal of increasing its use of renewable energy by 15 percent by the year 2015 and overall working to use less energy.

According to Environment Iowa, in Iowa alone, this investment by the year 2020 will create an average of 3,000 jobs annually, increase wages up to $42 million per year and save consumers over $1 billion on energy costs.

What do you think? Will President Obama get this initiative passed in Congress? Do you think green initiatives will help pull the nation out of this economic downturn? How will initiatives affect the agriculture industry? Let me know your thoughts.

Welcome Secretary of Agriculture Tom Vilsack

On Jan. 20, President-elect Barack Obama and Vice President-elect Joe Biden will be sworn into office along with the new cabinet Obama has chosen. Among the new cabinet members is Secretary of Agriculture Tom Vilsack.

He will have the responsibility of developing federal policy on farming, agriculture, food and food safety. It will also be his duty to re-examine the nation’s biofuel policy.

Vilsack’s political career started in 1987 when he ran for mayor in Mount Pleasant, Iowa and served three terms. Vilsack was elected to the state Senate in 1992 and re-elected in 1994. He made his mark shaping tax-cut and economic-development legislation for the Democratic majority.

In 1998, Vilsack was elected Iowa’s governor, the first Democrat to win in 32 years. He won the election with strong support from organized labor and called his win a "victory for Iowa’s working- and middle-class families." He promised to focus on education, health care, the environment, a fair tax system, property-tax relief and keeping young people in Iowa. In 2008, he briefly ran for the Democratic presidential nomination, but ended his bid and endorsed Sen. Hillary Clinton.

Vilsack was orphaned at birth and raised by a Pittsburgh family. He received a Bachelor's degree from Hamilton College in New York and received a J.D. from Albany Law School.

Numerous farm groups and lawyers approve of Obama’s decision to appoint Vilsack. Democrats and Republicans alike believe his experience as Iowa governor will be to the nation’s advantage.

“His nomination is a positive thing for the state of Iowa and agriculture in general,” said Iowa state Rep. David Tjepkes, R-Gowie. “He has valuable experience with renewable energy, conservation and rural development programs.”

“He has a good basic foundation in farm issues,” said Iowa state Rep. Dolores Mertz, D-Ottosen. “He’ll have a solid working relationship with U.S. Sen. Tom Harkin, the Iowa Democrat who is chairman of the Senate Agriculture Committee.”

Environmentalists also support Obama’s choice.

“We’re encouraged by it,” said Ken Cook, president of the Environmental Working Group. “He thinks we need to reform the subsidy system, recognizes the importance of the food programs and he’s very good on conservation.”

Commodity and agriculture analysts believe that Vilsack will have to act fast on unimplemented farm subsidies and lower crop prices, as well as manage controversies over trade, food safety and animal welfare. Vilsack has talked about reducing subsidies to some megafarms, supports better treatment of farm animals and wants healthier food in schools.

However, Obama’s choice is not appealing to all. He received some criticism because Vilsack supports alternative fuels like corn-based ethanol and biotechnology, which are disliked by people who want to shift government support from large-scale agricultural interests to smaller farms.

Obama says that Vilsack’s experience as governor of a rural state makes him well qualified.

“As fiercely protective of family farmers and the farm economy as he has been, he’s also been forward looking on rural development and renewable energy,” said Obama.

What do you think of Obama’s Secretary of Agriculture choice? Please comment below.

Barack Obama is the next president: What does this mean for rural America?

Barack Obama has been elected president and rural America has spoken. Agricultural groups have congratulated the president-elect on his win and already laid out suggestions for his agricultural plan.

American Farm Bureau Federation (AFBF) President Bob Stallman released a statement congratulating President-elect Obama and his thoughts regarding his campaign.

“Farmers and ranchers, like all Americans, have a list of issues that they expect the administration and Congress will address,” said Stallman.

He said the Farm Bureau’s issues include the economy, energy, immigration, trade, implementation of the Farm Bill and many others.

“We know there are many points of view on these issues, but we also know that our elected leaders have one thing in common: Each person elected to office ran for office to improve this country. We look forward to working with the new administration and Congress to create those opportunities that will improve agriculture and rural America,” said Stallman.

National Farmers Union (NFU) President Tom Buis listed other challenges that face rural America.

“Agriculture faces many problems, including a worldwide recession that is hurting commodity prices, the need for regulatory reform that includes greater regulation of speculators in commodity futures market and more development of biofuels and green energy sources that will bring economic development to farms and rural areas,” said Buis.

Buis said the country is going to have a president who does want to work with rural America on these issues. And because Obama supported the Farm Bill, he said he believes that the U.S. Department of Agriculture will implement the new law in the way intended by Congress.

Buis also said he’s relying on other farm groups “to organize an agricultural summit to look at ways to counter falling farm income.”

National Cattlemen’s Beef Association (NCBA) President Andy Groseta laid out his own concerns.

“In the coming years, ranchers, farmers and rural Americans will be significantly impacted by tax policies, environmental regulations, international trade, renewable fuel subsidies, food safety and nutrition,” Groseta said. “NCBA worked closely with the Obama campaign on each of these concerns, and we have been assured a seat at the table when decisions are made regarding these and other issues of importance to America’s cattlemen and women.”

The National Corn Growers Association sent a similar message congratulating President-elect Obama and Vice President-elect Joe Biden and addressing its issues.

“We have appreciated Sen. Obama’s leadership on issues ranging from strong safety-net programs within the Farm Bill to the promotion of corn-based ethanol as an important source of domestic energy,” said NCGA President Bob Dickey.

NCGA’s main concerns are renewable fuels, trade and the implementation of the Farm Bill.

It seems that Obama will have a lot of different organizations to work with to help improve rural America. Which issues do you believe are the most important for America’s farmers? Please comment below.

Election 2008: Who will be the next president?

It’s crunch time with only one day until the election, and both candidates have been spending significant time in crucial battleground states.

In the 10 days from Oct. 18-28, John McCain, Barack Obama and their running mates have been to the key swing states more than once. The top three states visited were Pennsylvania (10 visits), Florida (10) and Ohio (7). Followed by Colorado with six visits and North Carolina and Virginia with five visits. States with four visits or less were Missouri, Nevada, New Hampshire, Indiana and Iowa.

According to RealClearPoltics.com, Florida, North Carolina, Missouri, Indiana and Montana are the top five states still up for grabs. Ohio, which has voted Republican in the past two presidential elections and is widely considered the most vital battleground state, is leaning toward Obama.

In the most recent Gallup Poll (Oct. 23-26), voters were asked, “Regardless of whom you support, and trying to be as objective as possible, who do you think will win the presidential election in November?” Seven in 10 Americans expect Obama to win. Since June, the percentage of those who said they think Obama will win has grown from 42 percent to 51 percent. Forty-nine percent of McCain supporters say that Obama will win as well. And as expected, 94 percent of Obama supporters think Obama will win. (For more information on the Gallup Polls, please visit www.gallup.com.)

With three of the battleground states being Ohio, Missouri and Indiana, the rural vote may just be more important this year than any other year. Along with those states and Iowa, the agriculture impact may determine who wins the election.

The economic impact among these battleground states alone is vast. For example, the market value of agriculture production for Iowa is $12.3 billion, which ranks third in the U.S. The market value for Ohio is $4.3 billion. One in 6 people in Ohio have an agriculture-related job, which includes wholesaling and retailing, farm production and marketing and processing. Ohio has 75,700 farms, averaging 186 acres in size per farm.

Over 90 percent of Iowa’s land is devoted to agriculture. It has 88,400 farms, the average farm size is 356 acres and Iowa agriculture employs 500,000 people.

Agriculture is more than just farming. It is a gigantic industry that includes a variety of businesses such as manufacturers, retailers, dealers and service providers. The four states mentioned above are vital to the nation’s agriculture industry.

Regardless of who you support and trying to be as objective as possible, who do you think will win the presidential election in November? Election day is tomorrow. Don’t forget to be an educated voter.

McCain’s, Obama’s support for the American farmer: Sincere or not?

Presidential hopefuls John McCain and Barack Obama are exhibiting their support for the American farmer. In July, both candidates spoke to the American Farm Bureau Federation’s Council of Presidents. Since then, focus has turned to two major issues – energy and trade – and how these issues will affect agriculture.

McCain supports trade agreements that will open markets to U.S. agriculture and lower trade barriers, decrease trade-distorting subsidies and stabilize an affordable food supply for all. He says he would form America's farm policies in favor of small farmers and rural communities. McCain wants the U.S. Department of Agriculture (USDA) to be more involved by conducting research designed to increase the production of drought-resistant, high-yield crops. He also promises to support conservation programs that encourage environmental stewardship on America’s farmlands.

Obama wants to break down trade and investment barriers to maintain American farmers' competitive presence around the world. He would promote programs that help producers develop global marketing networks. He also wants to make sure all trade agreements contain strong and enforceable labor, environmental and safety standards. And, he wants to involve the USDA and the Food and Drug Administration (FDA) to be able to issue and enforce recalls of contaminated food. He hopes to improve food-safety efforts by doing so. Obama has pledged to support conservation projects and industries that produce new value-added agricultural products.

Both McCain and Obama have laid out extensive agricultural plans, but Brad Lubben, a public policy specialist in the department of agricultural economics at the University of Nebraska-Lincoln, says neither of the candidates have a strong agricultural background.

“The key will be whom the candidates choose to advise them on the issues,” he said.

Agricultural organizations such as the Nebraska Farmers Union Political Action Committee (NFUPAC) have endorsed the Democratic presidential candidate. According to NFUPAC President Gale Lush of Wilcox, the endorsement was based on the candidates’ voting record and their positions on economic issues that impact family farmers, ranchers and rural communities. Other key issues that determined their support include farm programs, renewable energy, rural development, market competition, fair trade and rural health care.

Other agricultural organizations, such as the California Farm Bureau and AgriPac, Michigan Farm Bureau’s (MFB) political action committee, have endorsed McCain. AgriPac’s endorsement was based on the candidates’ qualifications and how their policies would benefit the state and nation’s agriculture industries as a whole. AgriPac Chairman Andrew Hagenow acknowledged that McCain doesn’t agree with MFB on all its organizational policies, but “feels that he possesses the necessary leadership to steer the country on a path toward continued success, growth and prosperity in the agricultural sector.”

McCain’s opposition to ethanol subsidies may hurt his chance to win this election. States such as Iowa and Nebraska have historically sided with the Republican candidate, but these states are huge supporters of ethanol. There’s a probable chance that Texas, Oklahoma and Kansas will still vote Republican as many cattle ranchers in these states are heavily affected by the rise in corn prices, despite its near-50 percent decrease since June.

Not everyone believes that the candidates’ agriculture policy will be in the farmers’ favor. Chuck Hassebrook, executive director of the Center for Rural Affairs (CRA), believes that regardless of the candidates’ position on agricultural issues, policies in Washington won’t change.

“Historically, policies have supported mega-farms that drive family farms out of business and fail to invest in creating a genuine opportunity for rural people and a future for their communities,” he said.

John Crabtree, media relations officer for the CRA doesn’t think that either candidate has shown sincere concern for rural America. He believes it’s more than just picking a side.

“It’s one thing to say you oppose or support the farm bill, but neither candidate has bothered to address the various issues within the Farm Bill that affect rural communities,” he said.

“Neither party has demonstrated a real commitment to ensuring that rural people – who contribute so much to the nation’s prosperity – share in it,” Hassebrook added. “Neither party seems to understand that America will never be as strong as it can be until all of America has the opportunity to share in building wealth, assets and prosperity.”

Do you feel that the candidates’ efforts toward improving and helping the American farmer are sincere? Or do you think they’re just trying to win votes? Let me know what you think.