EPA Proposes 2013 Renewable Fuel Standards 

The U.S. Environmental Protection Agency (EPA) is proposing the 2013 percentage standards for four fuel categories that are part of the agency's Renewable Fuel Standard program (RFS2).

The proposal will be open for a 45-day public comment period and EPA will consider feedback from a range of stakeholders before the proposal is finalized. EPA continues to support the use of renewable fuels within the transportation sector through the RFS2 program, which encourages innovation, strengthens American energy security, and decreases greenhouse gas pollution.

The Energy Independence and Security Act of 2007 (EISA) established the RFS2 program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.

The proposed 2013 overall volumes and standards are:  

• Biomass-based diesel (1.28 billion gallons; 1.12 percent)
• Advanced biofuels (2.75 billion gallons; 1.60 percent)
• Cellulosic biofuels (14 million gallons; 0.008 percent)
• Total renewable fuels (16.55 billion gallons; 9.63 percent)

You can read more of this story by clicking here.

Renewable Fuels Groups Appreciative of EPA Proposal 

The Renewable Fuels Association was quick to applaud the EPA's release of its proposed rule for 2013 Renewable Fuel Standard (RFS) volumetric requirements. The proposal waives the cellulosic biofuel requirement from one billion gallons to 14 million gallons, but retains overall advanced biofuel and renewable fuel requirements.

RFA's CEO Bob Dinneen said, "The 2013 RFS requirements will be the catalyst that finally compels oil companies to get serious about breaching the so-called blend wall. This year's RFS requirements will necessitate the use of more E15, E85 and other higher-level blends. Injecting larger volumes of biofuels into the U.S. fuel supply and spurring a more rapid transition to domestically produced renewables is exactly what the RFS was intended to do. The program is working as envisioned by Congress.  You can read more of his comments by clicking here. 

Likewise, Growth Energy's CEO, Tom Buis, applauded the EPA proposal. 

 "Growth Energy is pleased that the EPA has released the proposed 2013 biofuel volumes as required under the RFS, as they were long overdue and we are encouraged that it is a proposed rule with the opportunity for public comment. There are a number of issues that should be considered, which could have serious impacts on the U.S. production of biofuels."  You can read more of Buis's reaction by clicking here.

Grain Markets Idling While Waiting for Crop Data, Anderson Says

In a preview to this week's SUNUP program on OETA, OSU Grain Marketing Specialist Kim Anderson tells Lyndall Stout that grain markets stayed steady this week, biding their time and waiting for more solid indications of what the future holds in grain-producing areas.

"I think the good news is that prices didn't go down this week. Wheat prices were up about six cents. Corn prices were up about nine. They held the spread. If you'll look at, say, the March-December spread for wheat, it's plus about 40 to 45 cents. On corn, it's got a negative spread from March to December of about a dollar and 50 cents. So, the markets are telling us the wheat price is expected to go up as we go into the next crop year and corn prices are expected to go down."

Traders were mostly watching foreign markets this week, Anderson said, with India getting a lot of attention.

"They may be harvesting their seventh record crop in a row. Of course, their harvest will start about the first of March, sometime in that time period.

"They're watching Russia and the Ukraine. They've had very cold weather there--some potential freeze damage on the wheat. Remember, we talked about a couple of months ago that their planted acres were less than last year, so we're looking at reduced production there."

You can catch more of Kim Anderson's analysis and a lineup of this weekend's SUNUP show by clicking here.

Tammi Didlot Reflects on Her Year as American National CattleWomen President

Next week in Tampa, Florida, Oklahoman Tammi Didlot will be handing over the gavel as the president of the American National CattleWomen. She spoke with me recently and will be my guest on Saturday's "In the Field" segment on News 9 about 6:40 a.m.

Didlot says her organization has a unique role to play in bringing together consumers who enjoy eating beef and ranch women who enjoy producing it.

"We have a National Beef Speakers Bureau that does just that. It kind of gives people permission to eat beef. It shares the whole production story from pasture to plate. And we actually train our speakers-- even if they come at the industry from one area or another--we actually train them to understand the whole process so that they can speak intelligently to people who are really trying to understand where their food comes from."

She also says that despite all of the adversities that cattle producers are facing due to the drought and a sluggish economy, the mood in cattle country is surprisingly upbeat.

"I have to say the people in the beef industry, and in agriculture in general, are the most optimistic people that I've ever met in my life. Because it would be easy to just go, 'Man, this is a bummer. We're at our lowest cow herds in 60 years and everything is kind of going up as far as prices go.' You always wonder what's around that next curve, but the reason we do what we do is because we enjoy it. And I think that, really, for the most part, people are just trying to stay positive and they'll get through this."

Click here to read more and to listen to our audio conversation.

 

USDA Announces Important Updates on the Milk Income Loss Contract (MILC) Program

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Juan Garcia announced that beginning Feb. 5, USDA will issue payments to dairy farmers enrolled in the Milk Income Loss Contract (MILC) program for the September 2012 marketings. The American Taxpayer Relief Act of 2012 extended the authorization of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill) through 2013 for many programs administered by FSA, including MILC. The 2008 Farm Bill extension provides for a continuation of the MILC program through Sept. 30, 2013.

MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost.

As announced by FSA on Jan. 22, all dairy producers' MILC contracts are automatically extended to Sept. 30, 2013. Eligible producers therefore do not need to re-enroll in MILC. MILC operations with approved contracts will continue to receive monthly payments, if available.

For more details on this story, please click here.

Kalin Flournoy Says Canola Offers Him a Valuable Winter Crop

Winter canola is a new crop for Kalin Flournoy, a farmer who lives east of Roosevelt, Oklahoma. He planted his second canola crop last year after suffering a lot of hail damage on a "beautiful canola crop" in the spring of 2012.

"Even after all the hail damage," he said, "we still averaged 16 bushels per acre on the crop."

The Flournoy family has approximately 500 acres of crop land in their farming operation. For the past two years, he has planted about 250 acres of canola on one site and the same amount in wheat on the other side of the farm."I just shift sides each year with the two crops," he said.

Farmers in the Roosevelt area of mid-Kiowa County have received a little rain in the last few weeks and Flournoy says his canola is making the most of it.

"The canola crop was growing well before it went into dormancy with cold weather," he said. "It has a long taproot that seeks ground moisture really well. Even with the bad drought we have, the crop takes advantage of all the water it receives, even if it is a small amount at a time."

You can read more about Kalin Flournoy and his canola crop by clicking here.

 

This N That- Oklahoma Soybean Expo, Roger Mills and Messner Sales Happening Saturday and Cattle Count to Be Released Friday afternoon

Rick Reimer with the Oklahoma Soybean Board has assembled quite a lineup for the 2013 edition of the Oklahoma Soybean Expo- set for February 13th at the Wes Watkins Center on campus at OSU in Stillwater. The full day will include Darrell Holaday of Advanced Market Concepts, Dr. Jody Campiche of OSU talking Farm Bill Outlook, Ag Advocate Trent Loos to offer a few Loos Tales and a funny bone tickler in the person of Jay Hendren with some humorous perspectives of rural life. For more details- click here or call the Oklahoma Soybean Board at 1-866-343-2326.

**********

Two top notch, long standing, seedstock sales are set for tomorrow, February second.  The 35th Annual Roger Mills County Bull Sale begins at high noon in Cheyenne, Oklahoma- offering 45 bulls from several breeds- to see the catalog for the 2013 sale, click here.

Meanwhile, the oldest purebred bull sale in the state gets underway at 12:30 as the 2013 Messner Hereford Bull Sale will kick off- 140 Hereford bulls will be offered along with some select Hereford females- click here for last minute details including a link over to the catalog for this event as well.

**********

We will know a lot more about the current size of the US cattle herd- and especially about the size of the US Mama Cow herd, after two PM central time today- as the January first Cattle Inventory numbers are revealed by USDA.  We pointed you to some thoughts from Steve Meyer earlier this week- click here for that analysis- and we thought we would also offer you this pre report set of estimates from Rich Nelson of Allendale- he is predicting the smallest US cattle herd since 1952 at 89.2 million head. And- he expects the Beef Cow herd to contract for the seventh straight year in this repor- off by about one and a half percent to 29.2 million head. We will have a look at the numbers from USDA once released this afternoon from USDA- look for it on our website- OklahomaFarmReport.Com.