Does Ethanol Really Have a Future? Why yes it does!

By Lance Atwater, NCB Intern

Today, everyone is feeling the squeeze at the pump. What happened to the good ole days when gas was only $0.31 a gallon? Unfortunately, we aren’t seeing those 1960 prices anymore, and probably never will. Today, according to AAA, the average price for a gallon of regular gas is $3.75. That is a dollar more than what we were paying for last year, which was $2.71.

Now, it seems like what we currently are paying for is a lot, and it is, but did you know we could actually be paying for a lot higher gas prices if it wasn’t for ethanol? A study done by economists at Iowa State University and the University of Wisconsin shows that ethanol actually reduces gas prices by $0.89 a gallon. That is almost an entire dollars worth! When calculating this out, gas prices would actually be $4.64 if it was not blended with ethanol! If you think we have it bad now, just imagine if you saw this price at the gas pump!

We can clearly tell what it would be like if gas wasn’t blended with ethanol, but lately there has been people and groups saying ethanol has no future. One of the hot topics is whether ethanol should receive subsidies or not. There is no doubt our country needs to make cuts to reduce its debt, but cutting out subsidies for alternative energies may not be the best solution.

When looking at the amount of subsidies that the ethanol industry receives compared to the oil industry, ethanol receives very little. The oil industry receives between $130-280 billion while the ethanol industry only receives $17 billion. Why should we cut ethanol subsidies when, 1) it receives a much smaller amount of subsidies compared to the oil industry, and 2) it actually reduces the cost of gas at the local pump. We sure don’t see oil subsidies reducing the price of gas! Not only does ethanol reduce gas prices, but it also helps reduce the amount of emissions that vehicles give off.

Now, when talking about support, we aren’t just thinking about subsidies because honestly subsidies are not what keeps the ethanol industry going. This industry needs support from the auto manufacturers who make the flex fuel vehicles and most of all the industry needs support from the consumer. When consumers invest in ethanol, they are not only investing in this industry but they are also investing in our country’s economy. However, that is not always the case with oil. When we invest in oil, our money ends up going to economies overseas.

Ethanol has a future, and don’t let anyone tell you different. With ethanol we aren’t just reducing emissions and the costs of energy, but we are also insuring that our country will someday be energy independent.

Check out other recent blog posts about ethanol:
Ethanol plays key role in fuel supply, helps lower prices
Saudi prince wants cheaper oil so you stay hooked and forget about ethanol
Finding the solutions to feed, fuel the world
A myth is still a myth when it comes to corn and ethanol, food and fuel

Proving ethanol and E15 at 200 mph

With the checkered flag signaling Trevor Bayne’s victory at the Daytona 500, a small group of farmers were in the stands with 180,000 other fans – and millions on TV – to witness more than just the unknown driver’s first NASCAR Sprint Cup victory.

They were there to mark the first race using Sunoco Green E15, a 15 percent homegrown corn ethanol blend adopted by NASCAR this year.

NASCAR announced last fall that it was taking its environmental commitment to the next level by using E15 across all three of its national touring series. The fuel switch created an opportunity for corn farmers via the National Corn Growers Association and ethanol producers via Growth Energy to come together and form American Ethanol – and become an Official Sponsor of NASCAR.

With the agreement finalized, American Ethanol is powering NASCAR – and Nebraska corn farmers are playing a key role thanks to the backing of American Ethanol by the Nebraska Corn Board.
The result means positive messages about ethanol and E15 are in front of millions of NASCAR fans every week and American Ethanol and Nebraska farmers are along for the ride.

The Nebraska Corn Board's latest CornsTALK newsletter (.pdf) goes into a details on the partnership and gives some information as to why Nebraska corn farmers support American Ethanol. Related ethanol industry updates are also included.

Other subjects in the latest edition include A-FAN and it's I'm A Fan campaign.

Nebraska farmer gets firsthand look at China crop progress

Dennis Gengenbach (center) in a corn field in China.

Smithfield, Neb., farmer Dennis Gengenbach returned a week ago today  from China, where he surveyed the corn growing conditions and studied the Chinese government policies that affect acreage, marketing and demand.

Gengenbach, a member of the Nebraska Corn Board, was in China with participants from seven other states on the 2011 U.S. Grains Council Corn Tour.

Those on the tour met with farmers, traders and provincial officials in the northeastern China provinces of Heilongjiang and Jilin, both major corn producing areas. "As you talk to the farmers in China, agriculture is their livelihood, just like ours," Gengenbach said in a news release.

Heilongjian and Jilin provinces each produced 866 million bushels (22 million metric tons) of corn in 2010. Roughly half of the harvest was consumed locally. The rest was sold to the southern provinces where there is higher population density and feed consumption.

Chinese corn field, June 2011.

Corn planting acreage for 2011 is expected to increase marginally as farmers experienced good prices in 2010 with increased demand. While some increased corn acres have come from wheat and soybean acreage, there is also increased competition for fruits and vegetables, particularly near urban areas. Some land was unplanted and attributed to increased urban encroachment.

"China continues to balance many contending factors such as modern technology, information technology, increasing mechanization and the aging agricultural labor force. There is a vast exodus of young people to the city. We witnessed land loss due to urbanization," said Floyd Gaibler, the Council's director of trade policy, who accompanied the group.

For more photos of the trip, click here.

Podcast: Water Resources Cash Fund supported by LB229

In this podcast, Lynn Chrisp, a farmer from Kenesaw and member of the Nebraska Corn Growers Association, provides a few thoughts on the Water Resources Cash Fund and how LB229 supports the fund.

He notes that the fund is an obligation of the entire state and that contributions to the fund should focus not just on farmers but instead include all stakeholders. This is because water issues impact all of Nebraska, not just farmers or rural communities, so funding should come from a wider group of stakeholders, too.

"Through discussions and modifications to LB229, we were pleased to work with a number of stakeholders, including the Environmental Trust Fund, Natural Resources Districts, counties, municipalities and environmental, hunting and fishing groups," Chrisp said. "The result is a well-balanced funding approach that allows the Department of Natural Resources to apply to the Environmental Trust Fund for a $3.3 million grant each year for three years. Each annual grant would then be matched by the state’s general fund. If benchmarks are met, the DNR can apply for a second three-year grant funding cycle."

Nebraska Corn Kernel podcasts are also available on iTunes! Click here to subscribe.

First-time NASCAR experience? Awesome!

By Kim Clark, ag program manager

Bright and early in the morning on June 5th, 92 Nebraska corn farmers boarded buses in Lincoln on their way to the NASCAR Sprint Cup Series race at Kansas Speedway. For many, this was the first time attending a NASCAR race and everyone seemed eager and excited to get the full experience from the American Ethanol hospitality tent to the pit tour to the race.

We left Lincoln at 5:00 am with the buses stocked full of water, snacks and sunscreen. The high temperature for the day was a scorching 100 degrees and we wanted to be prepared!


By arriving at the track at 9:00 a.m., we had time to tour pit road where we went behind the scenes of each driver’s pit area and saw them gluing the lug nuts onto the tires. When changing tires during the race, the crew doesn’t want to lug nuts falling onto the ground and have to search for them. Speed is everything!

One gentlemen gave a quick tour of American Ethanol driver Clint Bowyer’s pit area and mentioned that by adding 15 percent ethanol to the racing fuel, the cars are getting 50 more horsepower from the engine. More ethanol = more power!


After touring the pit area, we walked onto the track itself. It was amazing to see how much of an incline the track had! Here are some quick facts about the 55-foot wide track:

• It’s 1.5 miles long,
• It has a 15 degree incline in each turn, and
• A 10.4 degree incline in the front stretch.

While on the track, we noticed people signing the white line that goes around the inside of the track – so we put our autographs on the line, too.

Before the race began, we visited the American Ethanol tent for lunch. While there, car owner Richard Childress stopped by to answer a few questions about NASCAR and ethanol. NASCAR is very excited about using ethanol and is testing the impact of increasing the amount of ethanol used in race cars.


The green flag dropped at noon. Hearing the noise of the cars as they drove by at about 180 miles per hour was incredible. It took a little over 30 seconds to make one lap around the track. Only a couple of caution flags came out during the race, and they were for debris on the track. The last 100 laps of the race were under the American Ethanol green flag.

Nearly everyone was rooting for Bowyer, a Kansas native and American Ethanol spokesperson who had a full paint-out of American Ethanol on his car. Bowyer started the race in the 27th spot and started moving toward the leader of the race right away. He was able to move into one of the top 10 positions, but after a pit stop toward the end of the race, he finished 18th.

The NASCAR experience was great! Everyone attending the race and watching on TV saw how some of the Nebraska corn check-off dollars were invested to support ethanol and inform consumers about the benefits of ethanol through the American Ethanol partnership.

Everyone should have at least one NASCAR experience in his or her life! I’ve crossed it off my bucket list…but am sure I’ll be back!

Check out more pictures from the NASCAR race in Kansas City on our Flickr online photo album.

Interns important to corn industry in Nebraska

For more than two decades, the Nebraska Corn Board has been blessed with many college student interns selected to work beside staff and members of the board as part of an ongoing internship program.

Starting this summer, two new interns began their time with the Nebraska Corn Board. Lance Atwater of Ayr, Neb., is interning at the board’s office in Lincoln, while Alissa Doerr of Creighton, Neb., is spending the summer with the National Corn Growers Association’s office in Washington, D.C.

Nebraska Internship

The Nebraska Corn Board office welcomed Lance Atwater for a year-long internship in May. Atwater will collect and report corn and corn product utilization and transportation data, assist with market development and government relations programs and activities, oversee crop progress report placement and be involved in communication efforts as a part of his internship.

“Lance will be an excellent contribution to our staff over the next year,” said Don Hutchens, executive director for the Nebraska Corn Board. “His enthusiasm and work ethic are already apparent, and his knowledge of agriculture represents his commitment to the Nebraska corn industry.”

Atwater, who grew up on a corn and soybean farm, will be a junior in agricultural economics at the University of Nebraska–Lincoln. On campus, he is involved as a student ambassador in the agricultural economics department, an officer for the UNL National Agri-Marketing Association chapter and a member of the Ag Econ and Agribusiness Club.

Washington, D.C. Internship

The National Corn Growers Association’s Washington office welcomed Alissa Doerr, an intern sponsored through a partnership between the Nebraska Corn Board and NCGA. Doerr will assist NCGA staff on a variety of issues related to environmental regulations, transportation, pending free trade agreements, biotechnology, ethanol and energy.

“We look forward to having Alissa with us this summer,” said Jon Doggett, vice president of public policy for NCGA. “The Nebraska Corn Board’s intern program provides exceptional opportunities for both the interns and NCGA. These bright, energetic college students provide a fresh perspective. It is absolutely vital for young people, especially those who want to be involved in agriculture, to understand how their government works and the best ways to become part of the process. We appreciate the Nebraska Corn Board’s support in this outstanding program.”

Doerr will also have the opportunity to shadow each of the NCGA lobbyists over the course of the summer. She will report to Jennifer Holdgreve, NCGA’s Washington office manager and will also be working closely with Doggett.

Doerr, who grew up on a cattle and corn farm, is an agricultural economics major with a public policy option at the University of Nebraska–Lincoln.

Nebraska dairy cows love Nebraska corn

What better way to celebrate June being Dairy Month than by having a nice, cold glass of milk! Thanks to the many hard working and dedicated dairy farmers and families, we are able to get our nutrition from a number of dairy products, including milks, cheeses, yogurts, and much more!

Here in Nebraska, there are 230 dairy farms that are producing milk for consumers located in the state, U.S., and around the world! On average, a dairy cow can produce 6.4 gallons of milk a day, which ends up being 2,325 gallons in a typical year.

Now, there are a lot of things that attribute to this large output of milk, such as Nebraska’s resources. These resources include feed, land, water, labor, and most of all, Nebraska’s quality of life. When looking at feed, Nebraska has an abundant supply of high quality feed: corn!

Another abundant feed source from Nebraska being used in the dairy industry is the corn-ethanol co-product, distillers grains. On average, a dairy cow can consume roughly five or more pounds of dried distillers grains a day.

The Nebraska Corn Board has partnered with the University of Nebraska-Lincoln to complete research on feeding dairy cows dried distillers grains and how it affects milk production. According to the research, dried distillers grains does not have a negative impact on milk production as long as the dairy cows are being fed a balanced diet. One benefit of distillers grains is that it provides dairy cows the necessary fiber. This fiber helps the cows have a better digestive system, which in turn helps keep the animal healthy.

Check out this video to learn more about Nebraska dairies and how Nebraska corn is helping provide these nutritious milk products.


Find more about feeding dairy cows corn coproducts here.

Read similar posts on feeding distillers grains here.

73 percent of Nebraska corn in good to excellent condition

The U.S. Department of Agriculture said today that 73 percent of Nebraska's corn crop was in good to excellent condition for the week ending June 5. It said 25 percent of the crop was in fair condition and only 2 percent was rated poor. None of the crop was in the very poor category.

As for emergence, USDA said 88 percent of the crop had emerged, up 11 points from last week but 7 points behind the five-year average. Warmer weather over the weekend and this week, though, will get things up and growing pretty quickly.

Nationally, USDA said 94 percent of the corn crop was planted, up from last week’s 86 percent and only 4 points behind the five-year average of 98 percent planted by this date. Good progress was made in several states, including Ohio (from 19 to 58 percent planted in the last week), North Dakota (87 percent planted), Indiana (82 percent planted) and Michigan (82 percent planted).

Because of the late planting in many areas, only 79 percent of the crop nationwide has emerged, compared to the five-year average of 90 percent. Overall crop conditions, though, are pretty good, with 67 percent of the country's corn crop in good to excellent condition (up 4 points from last week), 27 percent fair and 6 percent poor to very poor. A year ago, 76 percent of the crop was in good to excellent condition.

For photos of this year's crop progress, be sure to check out the Nebraska Corn Board's 2011 crop progress photo set on Flickr.

For more details of the crop, visit the Corn Board's Crop Progress Update page.

Off to the Races….Running on American Ethanol

By Kim Clark, ag program manager

This Sunday, June 5, marks the first time the NASCAR Sprint Cup Racing Series will be running on American Ethanol at Kansas Speedway. What an exciting time for corn farmers, including Nebraska’s corn farmers!

More than 420 corn farmers – 95 from Nebraska – will be attending the race to support NASCAR’s switch to American Ethanol and E15. They’ll be telling their story to the general public about raising corn, the benefits of ethanol and explaining why American Ethanol and corn farmers entered into this historic partnership.

NASCAR has an audience of more than 75 million fans that includes all ages and demographics. What better way to tell the ethanol story than to the largest fan base in any sport!

The American Ethanol partnership was formed between Growth Energy and the National Corn Growers Association (NCGA), with Nebraska corn farmers supporting NCGA in the partnership as a way spread the word about the benefits of ethanol.

At this weekend’s race, the American Ethanol logo and messages will be displayed around the track. The stretch between turns two and three will have the American Ethanol “green,” and there will be an American Ethanol chalet for visitors and farmers. Educational materials at the track will include a flex fuel vehicle, blender pump and other ethanol-related items.

Of course the most noticeable American Ethanol logo will be the #33 Clint Bowyer (a Kansas native) car, which American Ethanol is sponsoring this season. Sunday’s race will be the first time his car will have a full paint-out with the American Ethanol logo. His car will have the American Ethanol in-car camera.

Be sure to watch the race this Sunday, starting at noon on FOX, to see the hundreds of corn farmers representing American Ethanol.

Saudi prince wants cheaper oil so you stay hooked and forget about ethanol

In case you missed it over the weekend, Saudi Prince Al-Waleed bin Talal said on CNN Sunday that he wants oil prices to drop – not because he's worried what $100 oil is doing to the our economy but because he's worried the United States and Europe might push more quickly toward alternatives.

"We don't want the West to go and find alternatives, because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives," he said on CNN, which noted Talal is listed by Forbes as the 26th richest man in the world. He's the grandson of the founding king of modern Saudi Arabia.

Talal said he'd like the oil price to be somewhere between $70 and $80 a barrel rather than the current price of more than $100 a barrel. Gee, what a swell guy....let's work keep oil prices "low" so Americans keep sending us checks while spending billions on their military to keep oil shipping lanes open for us.

Perhaps Talal read a report from BP that said the United States’ dependence on foreign oil peaked in 2005 and increased fuel efficiency and the increased use of biofuels like ethanol will further drive down that dependence and the use of oil overall through 2030. BP's report said the import share of oil and gas to the U.S. will fall to levels not seen since the 1980s, do in part to ethanol, which BP noted displaces oil imports. (Here's a more recent Reuters piece that cites the Energy Information Administration noting similar points.)

Biofuels like ethanol are already displacing foreign oil and reducing the amount of expensive oil in most gas tanks across the country – and obviously it's gotten the attention of Big Oil. One recent study said if ethanol production came to a halt, the estimated gasoline price increase would be of "historic proportions," ranging from 41 to 92 percent. At today's prices you'd be looking at $5.60-$7.60 per gallon gas without ethanol.

Should we follow Talal's wishes and just stay hooked on oil? Or should we continue to push to diversify our fuel supply with alternatives like ethanol and biodiesel? Should we have policies that favor Big Oil, Talal and his cronies? Or policies that favor growing renewables and support our own economy?