THE FORECAST for this week calls for drier conditions after today and a warming trend later in the week. ..........................................5
U.S. REP. JERRY Costello is concerned about proposals to extend federal jurisdiction beyond rivers and other navigable waters. ......................4
HIGH YIELD expectations this year likely won’t bring farmers much higher crop prices because ending stocks remain plentiful. .................13
Monday, May 17, 2010
Two sections Volume 38, No. 20
Biofuels incentives seen as lacking
Fertilizer concerns dog new energy/climate plan BY MARTIN ROSS FarmWeek
Some might call it “Climate Lite.” New Senate climate-energy measures place a greater emphasis on domestic energy development and propose an initially lighter regulatory burden for manufacturers and utilities vs. failed House “cap-and-
trade” legislation. However, the bill’s energy provisions run light on renewable biofuels provisions while posing a potentially heavy hit for U.S. fertilizer production, industry sources warn. Stephanie Dreyer, spokesman with the ethanol coalition Growth Energy hopes
the former can be addressed as the bill, spearheaded by Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), moves through Congress. But Illinois Fertilizer and Chemical Association Director Jean Payne fears the measure could cause far greater long-term harm for the Mid-
NOT THE BEST
Morris Wildermuth, Pekin, a member of the Tazewell County Farm Bureau for 50 years, checks a wheat stand in a field located near Tremont. He said the stand is “not the best” and estimated the yield this year may be down 25 percent. Wildermuth, who was able to plant 85 percent of his intended wheat acres last fall, is concerned about the possibility of scab as his existing wheat crop started blooming last week about the time weather conditions turned cool and rainy. Read more about wheat production in Illinois this year on page 5. (Photo by Ken Kashian)
west farm sector. The Senate bill, currently in committee, aims to cap annual domestic greenhouse gas (GHG) emissions, reduce oil imports, and purportedly create millions of energy-related jobs. It addresses key criticisms of House cap-and-trade measures by offering a greater level of initial emissions “allowances” for manufacturers and energy suppliers. But by pushing utilities and industry toward greater use of natural gas vs. less GHGfriendly energy sources such as coal, Payne fears the plan could curtail an already stressed, natural gas dependent fertilizer sector, possibly driving production offshore. That would leave farmers and ultimately consumers “more vulnerable to what’s going on in the world economy,” she said. The region’s sole fertilizer manufacturer, Dubuque-based Rentech, is “very important to the employment picture” in Northwestern Illinois, Payne stressed. Nationwide, the fertilizer sector supports an estimated 250,000-plus jobs. “It’s evident the demand for nitrogen worldwide is going to continue to be very strong,” she told FarmWeek. “We want
Periodicals: Time Valued
IFB: Crunch time for ATV bill Lawmakers back last week of May? BY KAY SHIPMAN FarmWeek
Farm Bureau leaders are being urged to ask their representatives and “adopted legislators” to support a key Illinois Farm Bureau state legislative priority before the General Assembly adjourns. One of IFB’s priorities is to restore farmers’ ability to drive all-terrain vehicles and utility-terrain vehicles on roads for farming purposes and also to cross
roads with the vehicles. “HB 6094 contains that language and is one step away from being sent to the governor for his signature,” said Kevin Semlow, IFB director of state legislation. “We are requesting members of the Illinois House of Representatives to take action on this issue before they adjourn.” Lawmakers appear to be returning the last full week of May to pass a state budget before legislative deadlines would require a super-majority for passage. Farm Bureau leaders are
FarmWeek on the web: FarmWeekNow.com
asked to contact their representatives and any representatives adopted by the county Farm Bureaus through the Adopt-a-Legislator program by this Thursday. “Encourage them to ask for HB 6094 to be passed out of the House before adjournment,” Semlow explained. To obtain a representative’s district office telephone number, go online to the IFB Legislative Action Center at {http://capwiz.com/ilfb/officials/state/?state=IL} or the General Assembly’s website at {www.ilga.gov}.
to keep a strong manufacturing sector in the United States. “We feel this bill’s going to impact the fertilizer industry’s ability to compete with natural gas prices around the world. That happened back in 2000, when prices shot up and you saw the big movement of manufacturing offshore.” Meanwhile, Growth Energy’s Dreyer noted the KerryLieberman package is “a little bit light” in terms of incentives for renewable motor fuel development. Growth Energy, which includes both corn and prospective cellulosic ethanol producers, favors new mandates for E85-capable “flexfuel” vehicles, incentives for mixed-blend ethanol “blender pump” infrastructure, and extension of the 45-cent-pergallon ethanol tax credit set to expire Dec. 31. The group hopes to strike language in the federal renewable fuel standard (RFS2) that restricts classification of cornbased ethanol as an “advanced biofuel,” potentially limiting existing ethanol plants in being able to tap future RFS2-driven demand. The Kerry-Lieberman bill would not count carbon dioxide released by biomass electricity plants or biofuels against emissions caps, exempting producers from having to buy emissions allowances. Dreyer believes summer gas prices may drive support for including additional biofuels provisions. “Initially, we’re a little bit disappointed, but not disheartened,” she told FarmWeek. “We know this is just the first draft of the bill, and there are a lot of steps that need to be taken before it gets to its final version. “There are a few things we’d want to see in the final version specifically that have to do with transportation fuels. All these are things that can be attached to this type of legislation.”
Illinois Farm Bureau®on the web: www.ilfb.org