Sunday, February 9, 2025
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Ethanol Output Falls to Three-Month Low

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The Energy Information Administration says ethanol production dropped to its lowest level in almost three months, and inventories declined during the week ending on January 24.

Output declined to an average of 1.015 million barrels a day. That’s down from 1.099 million the previous week and the lowest level since the week that ended on September 27. The EIA says Midwest production plunged to an average of 964,000 barrels a day, down from 1.042 million the week before. That’s also the lowest level since September. Gulf Coast output dropped to 19,000 barrels a day from 24,000 barrels a week earlier. That’s the entirety of the losses because the remaining three regions’ production was unchanged.

East Coast and Rocky Mountain output were both steady at 11,000 barrels a day, while West Coast production averaged 10,000 barrels. Ethanol inventories were down to 25.72 million barrels. That’s down from 25.8 million the previous week.

Thursday, January 30th, 2025 Podcast

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As we close out the month of January this week, there is plenty of uncertainty in these grain and livestock markets. We’re watching South American weather, tariff threats, a continued surge in cash cattle trade and much more. Jeff French with AgHedgers joins us to discuss and share some perspective as we close out the month. Find more information online at https://www.aghedgers.com.

We also get analysis on the open interest in corn, drivers in the soy complex, a look at maybe some divergence in the cattle market between cash and futures along with a look at the dairy market to end January. Bryan Doherty with Total Farm Marketing joins us for our weekly conversation. Find more at https://www.totalfarmmarketing.com.

Lee Zeldin Confirmed to Lead EPA

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(WASHINGTON D.C.) — On Wednesday, former New York Congressman Lee Zeldin was confirmed by the Senate to lead the Environmental Protection Agency.

By a vote of 56-42, Zeldin will now oversee the EPA and will no doubt help shape numerous policies that impact agriculture, biofuels and more under the Trump Administration. Numerous biofuel and agriculture groups have been encouraged by statements from Zeldin during his confirmation process and have indicated they look forward to working with him.

Renewable Fuels Association President and CEO Geoff Cooper said in a statement that they look forward to working with Administrator Zeldin to implement President Trump’s vision for unleashing American energy. “As noted during his Senate confirmation hearing, Mr. Zeldin understands that ethanol and other renewable fuels will play an important role in accomplishing the President’s energy and environmental objectives,” according to Cooper. “We are confident he will support timely and transparent implementation of the Renewable Fuel Standard, take steps to facilitate expansion of lower-cost fuel blends like E15, and revisit extreme regulations that force automakers to produce costly electric vehicles that are heavily dependent on foreign raw materials. We are eager to collaborate with Administrator Zeldin and his entire team at EPA to empower greater use of more affordable, cleaner-burning, domestically produced liquid fuels.”

“Administrator Zeldin has made it clear that he understands how important American-made biofuels are to President Trump’s efforts to unleash American energy dominance,” said Growth Energy CEO Emily Skor. “He’s also committed to advancing year-round E15 and ensuring that America’s farmers and biofuel producers have the regulatory certainty under the Renewable Fuel Standard to plan and invest in rural growth. We thank Administrator Zeldin for agreeing to work alongside Senator Pete Ricketts and other rural champions on Capitol Hill to deliver a much-needed boost to the farm economy and greater fuel savings for hardworking Americans with homegrown ethanol.”

The National Corn Growers Association also congratulated the new administrator. “We want to congratulate Administrator Zeldin for being confirmed by the Senate to lead EPA,” said NCGA President Kenneth Hartman Jr. “We look forward to working with him on issues of great importance to corn growers, such as increasing ethanol blends and ensuring access to inputs required to produce food, feed, and fuel. It was particularly encouraging to hear Administrator Zeldin say during his confirmation hearing that he understood the importance of extending year-round, nationwide access to E15. We invite the administrator to use us as a resource as he and his colleagues make decisions about these and other issues of importance to the agricultural community.”

American Coalition for Ethanol (ACE) CEO Brian Jennings issued a statement saying in part that “we congratulate Lee Zeldin on his confirmation to lead EPA and look forward to working with him to keep the Renewable Fuel Standard on track, including safeguarding against the misuse of Small Refinery Exemptions and promptly moving forward on biofuel blending obligations for 2026 and beyond. Other priorities we will be raising with Administrator Zeldin include providing consumers with choices to use higher blends of ethanol in flexible fuel vehicles, supporting efforts to ensure nationwide year-round availability of E15, and applying the most recent GREET model to determine the lifecycle greenhouse gas emissions for corn ethanol.”

Also, National Cattlemen’s Beef Association (NCBA) Vice President of Government Affairs Ethan Lane issued a statement congratulating Lee Zeldin on his confirmation as Administrator of the Environmental Protection Agency. “For too long, the EPA has stood for ‘Ending Production Agriculture.’ Under Administrator Zeldin, we look forward to an EPA that acknowledges the conservation efforts that are only made possible by cattle farmers and ranchers—America’s original conservationists,” according to Lane. “The National Cattlemen’s Beef Association congratulates Administrator Zeldin on his bipartisan confirmation, and we look forward to working with him to protect the clean water and healthy soil that American agriculture relies on every day.”

Texas Lawmaker Introduces Bill That Would Repeal the 45Z Tax Credit

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Representative Beth Van Duyne (R-TX) recently introduced a bill that aims to repeal the Section 45Z clean fuel production credit. The tax credit, established by the Inflation Reduction Act, supports the production of various low-carbon transportation fuels.

The technology-neutral credit is available for numerous biobased and renewable fuels, including sustainable aviation fuel, renewable diesel, ethanol, renewable natural gas, and biodiesel, provided they meet lifecycle greenhouse gas reduction requirements. Fuels must be produced in the U.S. and not emit more than the limit of carbon dioxide equivalent established by the GREET model to qualify for the credit.

Initial guidance on 45Z was released on January 10. The bill introduced on January 16 would repeal the 45Z tax credit, effective on December 31, 2024. Following its introduction, the bill was referred to the House Committee on Ways and Means. Ethanol Producer Dot Com says to date, no other lawmakers have cosponsored the legislation.

Kansas Aquifer Drops a Foot

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Kansans rely on the Ogallala Aquifer in western Kansas for everything from irrigation to drinking water, and it fell more than a foot last year.

The Kansas Geological Survey recently completed its annual campaign to measure the aquifer, which supplies one-third of the state with water. The Ogallala is the largest underground source of fresh water in the nation. The Kansas Reflector reports that aquifer levels in the groundwater management area fell by 1.52 feet between January 2024 and this month, a larger drop than the 1.43-foot decline the year before.

Oklahoma State University reported that approximately 14 percent of the total aquifer consists of irrigated acres capable of producing $7 billion in crop sales. The aquifer also provides one-fourth of the total water supply used for agricultural production across the U.S. Kansas Governor Laura Kelley says if nothing happens, the farming industry and western Kansas will dry up.

Meat Institute Strategies to Reduce Meat Prices

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The Meat Institute sent a letter to President Donald Trump to provide strategies to reduce burdensome regulations and address meat prices for consumers. The letter included a list of recommended actions for the administration to take, including rescinding the final rule under the Packers and Stockyards Act put in place in March 2024.

“Despite a lack of legal authority and court precedent to the contrary, the rule attempts to enshrine diversity, equity, and inclusion concepts into the Packers and Stockyards Act,” The Institute said. It also recommends directing the Ag Secretary to rescind the final rule, “Poultry Grower Payment Systems and Capital Improvement Systems.”

Paired with the complete list of recommendations to clear up regulatory impediments, the Meat Institute also supports the USDA’s inspection modernization for pork and poultry processing. The Institute also encourages USDA to issue Interim Final Rules to allow pork and poultry facilities to operate above traditional line speed restrictions.

Give FFA Day is February 20

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February 20 is the tenth annual Give FFA Day during National FFA Week. The day is dedicated to making a difference in the lives of over a million FFA members across the country and growing the next generation of leaders who will change the world.

The National FFA Organization is a school-based national youth leadership development organization with the mission of helping students develop their leadership skills and explore career paths in agriculture. Funds raised on Give FFA Day support the FFA and agricultural education at the local, state, and national levels. The money supports special programs and events, provides the iconic FFA blue jackets to students, supplemental travel costs for career and leadership training, and pays for teacher support and resources throughout the year.

“We know that every gift makes a difference and are grateful to our donors for their continued support,” says Kim Coveney, FFA’s manager of individual giving.

The National Association of State Departments of Agriculture Sets its Federal Policy Focus for 2025

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ARLINGTON, Va. — NASDA’s members-led Board of Directors chose five issues to serve as the organization’s primary policy focus for 2025. They include the farm billfood systemspesticide regulationsPFAS and state cooperative agreement funding. NASDA CEO Ted McKinney remarked on the significance of these issues for 2025.

“NASDA members have specified these areas as necessary to work on to best support farmers, ranchers and communities nationwide,” said McKinney. “Further, we believe these areas represent critical opportunities where state departments of agriculture can lead impactful change and champion effective policy solutions this year.”

NASDA has published one-pagers offering background and insight for each policy priority.

Farm Bill
The upcoming farm bill must be dedicated to supporting American agriculture and essential food and nutrition assistance programs. This bill shapes agricultural policy, supports farmers, ensures food security and promotes sustainable natural resource management.

Food Systems
NASDA will advocate for policies and programs that fortify U.S. food systems, enhance supply chain resilience, and improve reliable access to nutritious foods.

Pesticide Regulations
NASDA will engage with EPA to ensure science-based standards and state input are incorporated in regulatory initiatives such as the Endangered Species Act Workplan.

PFAS
NASDA will continue to work with federal agencies to develop strategies associated with the risk of per-and-poly-fluroralkyl substances (PFAS) on agricultural land. NASDA will advocate for federal programs that will support farmers and ranchers in maintaining the health and productivity of their land and livestock.

State Cooperative Agreement Funding
NASDA will advocate for Congress to restore and increase funding for cooperative agreements. Cooperative agreements are designed to increase coordination when addressing complex regulatory issues and sharing resources between state and federal governments. NASDA is focused on three cooperative agreements that require immediate attention: FDA’s State and Local Food Safety Programs, USDA’s State Meat and Poultry Inspection Programs, and USDA’s Animal Disease Protection Program.

Boozman, Klobuchar Announce Subcommittee Leadership for 119th Congress

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WASHINGTON – U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-AR) and Ranking Member Amy Klobuchar (D-MN) announced subcommittee leadership for the 119th Congress.

“The subcommittee leaders will play an important role as we craft the farm bill and provide the tools and resources farmer, ranchers and rural communities need in these challenging times as well as to prepare for the future. We look forward to working together to deliver solutions to support American agriculture and the people of this country,” Boozman and Klobuchar said.

Subcommittee on Commodities, Derivatives, Risk Management, and Trade

  • Oversees commodity programs, derivatives and digital assets, crop insurance, and agricultural trade.

Senator Cindy Hyde-Smith (R-MS), Chairwoman

Senator Cory Booker (D-NJ), Ranking Member

 

Subcommittee on Rural Development, Energy, and Credit:

  • Oversees rural development loan and grant programs, renewable energy, and farm loan programs

Senator Joni Ernst (R-IA), Chairwoman

Senator Peter Welch (D-VT), Ranking Member

Subcommittee on Conservation, Forestry, Natural Resources, and Biotechnology

  • Oversees conservation programs, forest management, natural resources, pesticides, and agricultural biotechnology

Senator Roger Marshall, M.D. (R-KS), Chairman

Senator Michael Bennet (D-CO), Ranking Member

Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research

  • Oversees food and nutrition assistance, international food assistance, school meals, horticulture, specialty crops, organic production, and research

Senator Mitch McConnell (R-KY), Chairman

Senator Ben Ray Lujan (D-NM), Ranking Member

Subcommittee on Livestock, Dairy, Poultry, and Food Safety

  • Oversees livestock, poultry and dairy production, marketing, food safety, and security

Senator John Hoeven (R-ND), Chairman

Senator Elissa Slotkin (D-MI), Ranking Member

AFBF Delegates Set 2025 Policy Priorities

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Farmer and rancher delegates to the American Farm Bureau Federation’s convention considered many important topics before setting the highest priority ones for this year.

American Farm Bureau President Zippy Duvall says delegates discussed a variety of issues. “Our delegates, they reaffirmed our support to utilize domestic feedstock for sustainable aviation fuel and expanding the potential use of it,” said Duvall. “Labor was another hot topic, especially stabilizing wage rates in order to avoid drastic changes to pay rates year over year. And another key takeaway was on the U.S.-Mexican-Canada agreement, with delegates voting to support the USMCA review process to encourage new opportunities while protecting U.S. agriculture.”

He says a key aspect Farm Bureau policy is that the process starts at the local level. “And they raise on up to the state level, and then they’re discussed at the national level,” said Duvall. “We had almost 350 farmers and ranchers, delegates from across the country voting today. We once again surveyed our delegates, and 97 percent of them are from family farms, so we really do represent the diversity of agriculture.”

Duvall said the convention this year in San Antonio was fantastic. “We had almost 5,000 attendees here, and their energy was great all week long,” said Duvall. “We also had more than 80 speakers here sharing their knowledge and experience with our attendees. We’re looking forward to getting together again next year in Anaheim in 2026.”

Farmers and ranchers can mark their calendars now for January 9-14, 2026, in Anaheim, California. For more information, visit fb.org.