Reconcile Billions of Gallons of Lost Demand for Biofuels

from National Farmers Union
WASHINGTON – Ahead of an expected Trump Administration announcement on changes to the nation’s biofuel policies, National Farmers Union (NFU) is urging the President to follow through on his promises to support American family farmers and the biofuel industry by allowing year-round use of E15 gasoline, ceasing undue hardship waivers to oil refiners, and making up for lost demand as a result of previous waivers.

Building on a recent letter from farm and biofuel groups to President Trump, NFU President Roger Johnson said that while an E15 waiver is a step in the right direction towards expanded use of American grown biofuels, such a measure on its own would not make up for the billions of gallons of lost demand for ethanol that have resulted from Renewable Fuel Standard (RFS) exemptions handed out by former EPA chief Scott Pruitt.

“The historic decline in the farm economy over the past five years has been exacerbated by mishandling of the nation’s chief biofuel policy, the Renewable Fuel Standard,” said Johnson. “While a move to allow year-round use of E15 gasoline is expected to increase domestic demand for ethanol by 1.3 billion gallons over the next five years, that number pales in comparison to the projected 4.6 billion gallons worth of demand that would be lost over the next 6 years if EPA continues handing out hardship waivers to oil refiners.”

The administration has been working on changes to biofuel policies that would ease tensions between biofuel and oil industries. Yet, to date, its actions have undercut demand for biofuels by waiving oil refiner requirements to comply with the RFS. USDA Secretary Sonny Perdue last month said the administration will soon allow year-round use of E15 gasoline – a bump for the biofuel sector.

Johnson said such an announcement must be accompanied by a provision that makes up for the billions of gallons of lost demand as a result of hardship waivers, as well as a commitment not to further erode demand through continued use of waivers. “An announcement on E15 in and of itself does not make whole a biofuels industry that has experienced significant damage as a result of the former EPA administrator’s actions,” he said.

Johnson said such a request is commonsense for an administration that has pledged to support family farmers and American grown biofuels.

“The farm economy has placed many family farmers in dire financial straits right now,” said Johnson. “They are looking to the administration to take meaningful actions that, in the aggregate, expand demand for American farm products. Yet, to this point, they’ve only seen demand destruction. That must change immediately with tangible actions that ensure more biofuels make their way into the transportation fuel sector.”

Johnson added that NFU is a strong proponent of expanding use of higher blends of ethanol, like E30, in order to provide farmers with a stronger market for their products and consumers with cheaper, cleaner, and more efficient transportation fuels.

“Farmers Union is going to continue to push for expanded use of higher blends of ethanol, for the benefit of family farmers and consumers alike,” he said. “Until the administration creates an environment in which these fuels can succeed, it will have shortchanged the family farmers the President has pledged to support.”

Dairy Farmers of Ontario Vice Chairman, Murray Sherk will visit Ohio on August 28 to share his perspective on pros and cons of the Canadian dairy supply management system. This will be part of a series of forums held around the nation that will highlight impacts of dairy policy, including supply management, on dairy farming communities. The program will consider whether elements of the Canadian system could be incorporated into the U.S. dairy industry to balance milk supply and demand.

The events are being organized by the Ohio Farmers Union, the Wisconsin Farmers Union, the National Farmers Organization and the National Farmers Union. Sherk will cover topics like how new farmers get started in a quota-based system, how processors participate and what impact inventory management has had on Canadian consumer dairy prices.

“Clearly, the dairy pricing structure we have here in the United States is not serving family farmers well,” said OFU President Joe Logan.

“These meetings will offer a chance to hear how the Canadian system helps keep dairy prices paid to farmers stable, as opposed to the wild swings and crushingly low prices that have been putting U.S. dairy farmers out of business,” said Logan.

The event will take place at the American Legion Hall in Maria Stein, Ohio on August 28, 2018, beginning At 11 AM.

In a dairy industry producer survey, conducted by the Wisconsin farmers Union in 2016, The majority of respondents were receiving a pay price that was below the cost of production. Many of the farmers who responded were interested in big-picture solutions to improve the economics for their own farm and for future generations. Farmers expressed concern that the continuing push for very large dairy expansion was undermining market and price stability. Many were interested in learning more about how supply management would work, but were skeptical that a government-administered program is the right way to go. There was clear interest in a farmer-controlled mechanism.

“The stress and difficulty of current dairy economics is considerable, and this pressure is growing,” said WFU President Darin Von Ruden. “This will again be a very difficult year for dairy farmers.”

 “We’ve lost far too many dairy farms in the past decade.”  “You need look no further than the local newspaper auction ads to see the severity of what is happening across the countryside.”

“We’ve communicated specifically with bankers about the dangers posed by oversupply and encouraged them to be part of the solution rather than encouraging even greater dairy expansion,” Von Ruden said.

WFU has also developed a model contract that, if adopted, would provide basic stability and protections to both farmers and processors.

Each of the Dairy Together events are free to attend and include a free meal. RSVP to Ohio Farmers Union by calling 419 523-5300 or by clicking here.

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Ohio Farmers Union, Wisconsin Farmers Union and National Farmers Organization are member-driven organizations, committed to enhancing the quality of life for family farmers, rural communities, and all people through educational opportunities, cooperative endeavors, and civic engagement. For more information visit www.ohfarmersunion.org

The Ohio Department of Agriculture (ODA) is now offering produce growers FREE, Food and Drug Administration (FDA) approved consultations to help farmers comply with the upcoming Food Safety Modernization Act (FSMA) Produce Safety rule. 

ODA’s Division of Food Safety, through a cooperative agreement with the FDA, is responsible for enforcing the Produce Safety rule in Ohio. Farm inspections will begin in the spring of 2019, but prior to inspections, ODA staff is offering these voluntary consultation visits to help growers identify what steps they may need to take to comply with the Produce Safety rule before regulatory inspections begin. 

Farms can request a farm consultation visit to determine specific requirements to their farm. This service is offered as a one-day course that provides one-on-one training in which trained and certified ODA staff will visit farms and walk growers through what will be expected with new federal regulations on their farm. In addition to the consultation, farms will also receive resource materials that will help aid in compliance. 

Growers unsure if their farm is subject to the Produce Safety rule, can review FDA’s FSMA regulation document or contact ODA for additional assistance. Produce farms that are exempt from the rule are welcome to schedule consultation visits, as some of the requirements are similar to those required by third party food safety auditors. 

FSMA, which was signed into law on January 4, 2011, is the most comprehensive reform of the nation’s food safety laws since 1938. Its goal is to better protect public health by shifting U.S. food supply safety efforts from a response approach to one of prevention. FSMA is comprised of seven rules that span the entire food supply chain. Of these rules, the one most likely to impact produce growers is the Produce Safety rule.

Ohio Gov. John Kasich issued a new executive order on nutrient management and Lake Erie water quality – targeted in the western basin of the lake – on July 11. You can read the governor’s executive order here and view an administration fact sheet here.

“We’ve done a lot to ensure the health of Lake Erie, Ohio’s crown jewel, including investments of more $3 billion since 2011 to improve water quality in the lake and its watershed,” Gov. Kasich said.  “But it’s clear that more aggressive action is needed, especially to reduce or eliminate the algae blooms that have marred the western basin for years.  This executive order is intended to kick those efforts into overdrive.”

The executive order signed by Gov. Kasich today targets eight watersheds in the western basin of Lake Erie that will be considered for designation under state law as “Watersheds in Distress,” based on their high nutrient levels, especially phosphorous from agricultural runoff.  Named in the governor’s executive order are all or portions of the following watersheds:

• Platter Creek
• Little Flat Rock Creek
• Little Auglaize River
• Eagle Creek
• Auglaize River
• Blanchard River
• St. Marys River
• Ottawa River

Statement from Ohio Farmers Union President Joe Logan:

”Governor Kasich’s Executive Order may be well-intended, but it also seems to be a very tentative action that shifts the initiative to a broad, complex network of state agencies and commissions.  Should those agencies and commissions decide to take aggressive action, the implications for farmers and for Lake Erie’s water quality could be profound.

“Whatever the eventual outcome, the process will be long and involved.

“The proposed menu of possible rules and regulations are good agricultural policy (nutrient management planning), yet farmers, like all citizens resist being told how they must conduct their affairs.

“Eventually, Lake Erie may express her own opinion on the urgency for needed action. When and If that happens, the governor, legislature or agency heads may need to face the need for adopting more straightforward actions such as common sense limitations on application rates for manure and fertilizer.

”Concepts like the “agronomic rate” application rate limits could be useful and effective. We urge the governor and legislature to consider their adoption.”

$500 At Stake Here, People

National Farmers Union is bringing back the popular photo contest!

NFU members can submit photos in any of the monthly categories for a chance to win a 16” x 20” canvas print of their winning photo! At the end of the year, each monthly winner will be eligible for the grand prize – a $500 prepaid Visa gift card. More info about the contest is on NFU’s website and photos can be submitted on NFU’s Facebook page.

The contest began April 3 and runs through December 31, 2018. New categories will be announced on the 1st of every month. Photos are eligible for entry until the last day of the current month at 11:59:00 ET. Get your family and friends to vote for your photos!

The April category is “Spring on the Farm.”

Who May Enter: Members of National Farmers Union and its state division members.

How to Enter: Visit NFU on Facebook and click on the “NFU Photo Contest” tab. Then just upload your photo, write a caption, provide your contact information, and click “Submit.” By submitting a photo, you are granting NFU permission to use your photo

After it has been added to the contest page, be sure to share the photo to get your friends and family to vote!

Don’t have a Facebook account? Send your photo, caption, and any applicable releases to hpackman@nfudc.org

Prizes: One monthly winner will be selected based on the total number of votes received that month for the submitted photo. Each monthly winner will receive a 16” x 20” canvas print of their winning photo and will then be eligible for the grand prize or a runner-up prize. The grand prize winners will be selected by a panel of Farmers Union judges. The grand prize winner will receive a $500 Visa prepaid gift card, the first runner up will receive a $250 gift card, and the second runner up will receive a $150 gift card.

Limits: Members may only upload one photo each month. Anyone can vote on the pictures, but each profile is limited to one vote every 24 hours.

Get involved! That camera on your phone can do amazing things …

COLUMBUS – Ohio Farmers Union President Joe Logan joined colleagues from around the country on Wednesday in opposition to the current version of the quadrennial Farm Bill in the U.S. House of Representatives.

Logan, a board member of the National Farmers Union, and other state presidents voted unanimously to oppose the Farm Bill recently passed out of the House Agriculture Committee. The bill has yet to make it the House floor for a vote. The NFU Board’s resolution also contained a list of suggested improvements to the bill.

“The House Farm Bill (H.R. 2), as currently written, lacks the improvements needed to help farmers cope with continued low prices,” said the NFU Board in a statement issued today. “The bill fails to provide farmers with the tools they need to be the best possible stewards of our natural resources, and it reverses progress toward expanding access to local, regional, and specialty markets. Furthermore, it makes unnecessary cuts to programs that feed hungry Americans. National Farmers Union’s Board of Directors, on behalf of nearly 200,000 family farmers, ranchers, and rural members, opposes H.R. 2 in its current form.”

“We are very disappointed that the House Ag Committee has turned a blind eye toward the urgent needs of farmers for a strong safety net and done likewise to the nutrition needs of America’s least fortunate in both rural and urban communities,” Logan said.

“The Congress and Administration have clearly demonstrated a willingness to explode the federal budget deficit by giving a $1.5 trillion tax cut to wealthy corporations and individuals. When rural America asks for a far more modest budget request, they can’t manage to find a way to lend a hand,” Logan added.

The NFU Board’s resolution contained the following potential improvements to the House bill:

• Increase PLC reference prices to improve the farm safety net and offset potential trade retaliation;
• Strengthen payment limitations and actively engaged requirements for Title I programs;
• Provide dairy farmers with enhanced price supports and a mechanism that manages our nation’s milk inventories to meet market demand;
• Ensure credit availability by increasing FSA’s overall loan portfolio;
• Maintain funding levels for consumer benefits under nutrition programs;
• Provide an incentive-based working lands conservation program that promotes improved stewardship;
• Restore mandatory funding for energy programs that promote development of the bio-economy in rural areas; and
• Reinstate mandatory funding for programs that improve access to local, regional, and specialty markets.

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OFU Legislative Lobby Day Set for April 11

Already know you’re going and just need to sign up? Click Here!

Please join your Ohio family farming colleagues as we visit with legislators at the Ohio Statehouse in Columbus on April 11, 2018.

Here’s what happens on Lobby Day. We begin the day at 9 a.m. with the chairmen of the House and Senate Ag Committees. The Ag chairmen deliver short remarks and leave plenty of time for questions.

Around 10 a.m. our first legislator visits begin. You will become part of a team lead by a member of OFU’s executive committee or OFU External Relations Director Ron Sylvester. For the balance of the day, each team – of roughly six people – will visit with the state representatives and senators who represent the members of that team. Each team may also visit with a member of House or Senate leadership.

During your visit with legislators, the team presents the state representative or senator with information about OFU and our 2018 policy priorities. Then, we ask the OFU member who is represented by the legislator we are visiting to speak a bit about their farming operation and any issues of state or local policy that they are confronting.

Please dedicate one day of this year to representing Ohio’s family farming community at the Statehouse. We all feel from time to time that Columbus and Washington are too distant — this is your chance to make a difference.

Follow this link to our secure, online form to sign up and participate. Bring your kids or grandkids, your spouse or that guy or gal down the road who should be a Farmers Union member.