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USDA seeks public input on climate-smart ag and forestry strategy

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By Erin Krueger

March 15, 2021

Feedstocks Policy Business Coproducts 

The USDA on March 15 announced it is opening a 45-day public comment period to gather input on its climate-smart agriculture and forestry strategy, including several topics focused specifically on biofuels, bioproducts and renewable energy.

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Eric McAfee, CEO of Aemetis Inc., confirmed that the company's California ethanol plant is currently running at capacity during a fourth quarter earnings call held March 11. He also provided an update of the company's advanced biofuel initiatives.

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Mother Nature has already given us an extraordinary solar panel that covers several hundred million acres of cropland in America's breadbasket, where energy absorbed from the sun is stored for later use in a perfect battery: an ear of corn.

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The USDA maintained its forecast for 2020-'21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released March 9. The outlook for 2020-'21 corn supply, use and price were also unchanged.

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Ethanol sales by production units the south-central region of Brazil were up 5 percent during the first half of February when compared to the same period of 2020, according to data released by UNICA, the Brazilian sugarcane industry association.

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The USDA recently released its Grain Crushings and Co-Products Production report for February, reporting that corn use for fuel ethanol was at 430 million bushels in December, down from both the previous month and December 2019.

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Tom Vilsack is once again leading the USDA. The Senate on Feb. 23 voted 92 to seven to confirm him as secretary of agriculture. Vilsack, a former two-term governor of Iowa, served as ag secretary during all eight years of the Obama administration.

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The USDA predicts that corn use for ethanol will remain relatively flat, increasing by 0.5 percent over the next decade, according to data released by the agency in February as part of its long-term agricultural projections through 2030.

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UNICA, the Brazilian sugarcane industry association, has announced that domestic ethanol sales by mills in the south-central region of the country were up nearly 2 percent during the second half of January.

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Just as ethanol has played an essential role in addressing the COVID-19 pandemic, the low-carbon fuel will also serve as essential energy for combatting climate change, RFA President and CEO Geoff Cooper said Feb. 16 at the 26th annual NEC.

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Even after experiencing a drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released by RFA.

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Landfill Gas to Ethanol

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By Gary C. Young

February 15, 2021

Mixed with steam, run through a reformer and fermented, landfill gas proves an economic and environmentally beneficial feedstock for ethanol production. And each LFG project is a source of green energy that can last for more than two decades.

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UNICA, the Brazilian sugarcane industry association, has released new data that shows the country's corn ethanol production continues to grow. Ethanol exports and sales of ethanol for use in sanitizing and industrial applications are also up.

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The USDA maintained its forecast for 2020-'21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released Feb. 9. The outlook for corn exports was increased, while the forecast for ending stocks was reduced.

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A new study released Feb. 2 finds biofuels continue to have a significant positive impact on Iowa's economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

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The USDA recently released its Grain Crushings and Co-Products Production report for January, reporting that corn use for fuel ethanol was at 432 million bushels in November, down from both the previous month and November 2019.

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President Biden on Jan. 27 issued an executive order that aims to tackle the climate crisis, create jobs and restore scientific integrity across the federal government. The order addresses the production and sourcing of biobased products and fuels.

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California Ethanol + Power announced it will engage with the local Imperial Valley farming communities to secure formal commitments to grow the first 20,000 acres of sugarcane feedstock for Sugar Valley Energy, a planned low-carbon ethanol plant.

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ADM discussed the status of its ethanol operations during a Q4 earnings call held Jan. 26. While ethanol margins are low, the company expects the supply-demand balance to improve through increased exports to China and industry reconfiguration.

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BBI International has announced that the 2021 International Fuel Ethanol Workshop & Expo, the ethanol industry's largest conference, will be held July 13-15 in Minneapolis. The event was originally scheduled to be held in mid-June.

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The ethanol sector continued to recover during the fourth quarter of 2020 with production levels up 3.5 percent when compared to the third quarter, according to a new quarterly report released by CoBank's Knowledge Exchange on Jan. 14.

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The USDA's National Agricultural Statistics Service released its 2020 Crop Production Annual Summary on Jan. 12, reporting that increased acreage and higher yields allowed corn to return to more typical production levels.

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The USDA lowered its prediction for 2020-'21 corn use in ethanol in its latest WASDE report, released on Jan. 12. The forecasts for corn production, feed and residual use, exports, and ending stocks were also lowered.

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The USDA recently released its Grain Crushings and Co-Products Production report for December, reporting that corn use for fuel ethanol production reached 433 million bushels in October, up from the previous month, but down from October 2019.

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The USDA's Commodity Credit Corp. announced on Dec. 23 that it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2020, which runs from Oct. 1, 2020 through Sept. 30, 2021.

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CoBank on Dec. 17 issued a report on the year ahead, predicting the 2021 outlook for ethanol is stable but guarded, with considerable growth and margin opportunities favoring ethanol coproducts versus fuel.

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President-elect Joe Biden has announced he will nominate Tom Vilsack as secretary of agriculture. Vilsack is a former two-term governor of Iowa who served as secretary of agriculture during all eight years of the Obama-Biden administration.

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The USDA maintained its forecast for 2020-'21 corn use in ethanol production in its latest World Agricultural Supply and Demand Estimates report, released Dec. 10. The forecasts for U.S. corn supply, use and price were also unchanged.

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The 2020/2021 U.S. corn crop – entering marketing channels now – has a higher average test weight, lower moisture and lower total damage relative to each quality factor's average of the previous five crops, according to the U.S. Grains Council.

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The U.S. Grains Council has announced U.S. sorghum farmers have the majority of this year's crop in the bin, and the quality is looking good, according to data released by the USDA and the United Sorghum Checkoff Program.

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