Senate to consider renewable fuel for govt. cars
Three senators from Midwestern states are sponsoring a measure that would require greater use of renewable fuels to operate government-owned automobiles.
Sens. Mark Dayton, D-Minn., Peter Fitzgerald, R-Ill., and Charles Grassley, R-Iowa, are co-sponsoring an amendment to the energy bill being considered by the Senate.
Their amendment would require United States government agencies to buy ethanol-blend fuels for use in their official vehicles.
Also, it would require that 5 percent of all diesel fuel purchased by federal agencies to be biodiesel within five years, and 20 percent biodiesel within a decade.
Current laws encourage government agencies to buy cars that run on alternative fuel. But because biodiesel can be used in standard diesel engines, the law does allow agencies to meet existing requirements by purchasing biodiesel fuel, rather than having to purchase new cars.
Ethanol is a motor fuel made from corn byproducts, while biodiesel is a fuel made from soybean oils. Requiring increased use of the fuels would boost the amount of corn and soybeans that Midwestern farmers would have to grow in order to meet the demand.
"Greater biodiesel and ethanol purchases by the federal government will be a helpful shot in the arm for the agricultural economy," Fitzgerald said.
The senators hope there is no opposition to their amendment, which would be considered later during the spring when the energy bill comes up for a vote.
The larger bill already includes provisions that would nearly triple the amount of ethanol-blend fuel that would be manufactured during the course of the next decade.
"The goals of our national energy policy should be to reduce U.S. dependence on foreign oil and help protect the environment by promoting greater use of renewable energy," Fitzgerald said.
"If we want to encourage renewable energy development, the U.S. government should help lead the way," he said.
Eastern dairy farmers to dominate over west
The recent surge in milk production in states such as California has resulted in predictions that the West will continue to lead the nation and even become dominant.
Not so, says Mark Stephenson of Cornell University's program on dairy markets and policy. He told the Professional Dairy Producers annual business conference that his studies show that most dairy industry growth will occur in the next 10 years in the northeastern U.S.
He told the dairy farmers that a relatively low cost of production and a relatively high milk price in that region will result in growth.
Cornell has been studying "best practices" on farms in all regions since 1997. Dairy co-ops, processors, regulators and academicians were asked to nominate dairy operations that were likely to have a low production cost.
About 100 dairy producers sent in financial surveys from their 1996 operations.
These are some of the things the survey showed:
Eastern farms did have a higher milk price -- averaging $14.84 -- than the western farms at $14.06, but the difference was not as large as many people thought. No farms in the Northeast Dairy Compact were included in the survey.
Analysis of operating costs or cash cost per hundredweight showed eastern farms spent $12.09, compared to western farms at $12.51.
"This meant that the return over operating costs was $1.55 for western farms and $2.75 for the eastern farms," Stephenson said.
Eastern farms produced an average of 22,588 pounds of milk per cow, the western farms only 20,928 pounds.
(by E.W. Kieckhefer)
Feds approve two biomass pilot projects
The Agriculture Department has approved biomass pilot projects in Illinois and Oklahoma to determine if switchgrass can create more energy while benefiting the environment.
In the two projects, switchgrass will be harvested, then palletized and used to co-fire traditional coal energy sources.
The farm service agency will oversee both projects, which Agriculture Secretary Ann Veneman said have multiple benefits. "The grass is easily obtained compared to coal, a fossil fuel," she said. "Burning switchgrass instead of coal reduces the amount of coal-related pollutants emitted into the air."
Ag service gets new boss
The Agriculture Department's natural resources conservation service has a new boss.
Agriculture Secretary Ann Veneman chose Bruce I. Knight to run the service, which works with landowners to protect soil and water resources on privately owned land.
Knight currently is a lobbyist for the National Corn Growers Association. He has been a farmer in South Dakota, and also has worked for the National Association of Wheat Growers.
Grains mostly up on CBOT
Grains futures were mostly higher at the close of activity Wednesday on the Chicago Board of Trade.
Soybean futures were up slightly on the continuing influence of price gains achieved Tuesday. Also helping were indicating factors that suggest to traders that the market is technically strong.
Corn futures rose after reports that 110,000 tons of U.S.-grown corn were sold to an unknown buyer, and that Taiwan purchased 55,000 tons of corn.
Also helping corn and wheat futures was short-covering activity by traders who tried to position themselves prior to Thursday's prospective plantings and stocks report by the Agriculture Department.
Wheat futures also benefited from reports that the hard red winter wheat crop had suffered due to recent inclement weather, making the surviving crop more valuable.
Oats futures were down as traders were trying to consolidate their activity from recent gains.
The prices:
Soybeans: May 4.72 3/4 up 5, Jul 4.75 1/4 up 4 3/4, Aug 4.74 1/2 up 4 1/4, Sep 4.72 up 5 1/4.
Corn: May 2.06 1/4 up 1 3/4, Jul 2.12 3/4 up 1 1/2, Sep 2.18 3/4 up 1, Dec 2.26 3/4 up 1 1/4.
Wheat: May 2.94 1/4 up 7, Jul 2.96 1/4 up 6 3/4, Sep 3.00 up 5 3/4, Dec 3.10 1/4 up 5 3/4.
Oats: May 2.00 1/2 off 1 1/4, Jul 1.71 1/2 off 1/2, Sep 1.45 up 1, Dec 1.45 up 1/2.
