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US Misinformation on Ethanol Blended gas

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    US Misinformation on Ethanol Blended gas

    Response to “Recent Land Use Change in the Western
    Corn Belt Threatens Grasslands and Wetlands”

    http://www.ethanolrfa.org/exchange/entry/response-
    to-recent-land-use-change-in-the-western-corn-
    belt-threatens/

    Geoff Cooper
    Posted on: February 20, 2013 in Land Use

    A recently published study by C.K. Wright & M.C.
    Wimberly in the Proceedings of the National Academies
    of Science suggests that native grasslands in Iowa,
    Minnesota, Nebraska, North Dakota, and South Dakota
    have been converted to cropland to facilitate increased
    corn and soybean plantings between 2006 and 2011.

    [1] The study's findings stand in stark contrast to U.S.
    Department of Agriculture (USDA) acreage data, which
    show increased corn and soybean acres in the region
    have occurred via crop switching, not cropland
    expansion.
    Further, the extremely high rate of error associated
    with the satellite imagery used by the authors renders
    the study's conclusions highly questionable and
    irrelevant to the biofuels policy debate.

    Readers of the recent PNAS paper should give strong
    consideration to the following points:

    Current law strictly prohibits the conversion of
    sensitive ecosystems to cropland. At least once a year,
    farmers must certify that they are complying with the
    highly erodible land conservation and wetland
    conservation requirements (the so-called "sodbuster"
    and "swampbuster" provisions) of the Farm Bill. Most
    producers strictly adhere to conservation plans that
    are often developed with technical assistance from the
    Natural Resources Conservation Service.
    Further, the provisions of the Energy Independence
    and Security Act require that corn and other feedstocks
    used to produce biofuels for the Renewable Fuel
    Standard (RFS) may only be sourced from land that was
    actively engaged in agricultural production in 2007,
    the year of the bill's enactment. Feedstock from lands
    converted to cropland after 2007 would not qualify for
    the RFS, and thus the program strongly discourages
    cropland expansion.
    The study's authors themselves acknowledge that the
    converted lands they classify as "native grasslands"
    might actually have been land planted to hay, grass
    pasture, or idled cropland enrolled in the CRP
    program. They write, "One shortcoming of the present
    study was our inability to...distinguish between
    different types of grassland conversion, i.e. to separate
    native prairie conversion from change involving CRP,
    hay lands, or grass pasture." Thus, the authors'
    conclusion that increased corn and soybean acres are
    coming at the expense of "native prairie" is highly
    suspect. In fact, USDA data shows decreased hay acres
    in the region, strongly suggesting that much of the
    increase in corn and soybean acres came on land
    previously planted to hay. At the same time, CRP
    enrollments in the region have declined slightly,
    suggesting that farmers are bringing some idled
    cropland back into production.
    Data from USDA show that the increase in corn and
    soybean acres in the five-state region was primarily
    achieved via crop switching rather than cropland
    expansion. That is, farmers increased corn/soybean
    plantings on land previously planted to hay, wheat,
    and other crops. Indeed, USDA shows total crop acres
    in the five-state region actually declined 2.1% from
    2006 to 2011.

    In fact, total planted cropland in the five states in 2011
    was the lowest since 1995. Total planted acres in 2011
    for the five-state area were 3.6% below the 10-year
    average (2001-2010).
    While North Dakota planted 540,000 more acres to
    corn in 2011 than in 2006, total acres planted to all
    crops in the state actually fell 3.25 million acres (15%)
    between 2006 and 2011. Total planted crop acres in
    2011 were also lower in Minnesota. This strongly
    suggests the expansion in corn area took place on
    land previously planted to other crops.
    While a useful tool for analyzing potential trends, the
    USDA Cropland Data Layer (CDL) system utilized by the
    authors to estimate land conversions has
    demonstrated a high level or error in differentiating
    between grasslands and land planted to hay and other
    crops. USDA itself acknowledges that, "Unfortunately,
    the grassland-related categories have traditionally had
    very low classification accuracy in the CDL." For
    example, USDA accuracy data shows the CDL tool
    mischaracterized North Dakota acreage for alfalfa,
    other hay, and idle/fallow cropland more than half the
    time in 2012.
    When the facts are on the table, it becomes clear that
    readers of the new PNAS study should exercise great
    caution and skepticism when interpreting the authors'
    conclusions. After all, as eloquently stated by Meade
    County (South Dakota) Farm Service Agency director
    James R. Neill, "...farmers and ranchers are the best
    conservationists in the world as they have a vested
    interest in conserving the agricultural resources for
    today and future generations."



    [1] See
    http://www.pnas.org/content/early/2013/02/13/121
    5404110.full.pdf html?with-ds=yes

    Why consumers pay Less for Ethanol Blended Gas...
    NOT MORE!

    As Prices at the Pump Go Up, Up, Up American Ethanol
    is the Motorist’s Friend

    Bob Dinneen
    Posted on: February 21, 2013 in Gas Prices

    If you've been paying more at the pump for gasoline,
    you aren't alone. And, if it weren't for U.S. ethanol,
    you'd be paying even more.

    All across America, as of February 19, gasoline prices
    had been climbing for 32 days, reaching a four-month
    high. In fact, since January 17, the national average
    retail gasoline price had soared by 43 cents - or 13
    percent - all the way up to $3.73 a gallon. According
    to EIA, last week's national average was the highest on
    record for the month of February.

    From now through Memorial Day, which kicks off the
    summer driving season, gasoline prices will likely keep
    going up, up, up. Over the past five years, gasoline
    prices have risen an average of $0.51 per gallon
    between New Year's Day and the Memorial Day
    weekend. That means we could be looking at prices
    well above $4 per gallon as summer begins and
    families hit the road for vacation.

    Gas prices are skyrocketing despite an increase in
    domestic oil production. Oil companies tell us more
    domestic drilling and fracking will help keep oil prices
    down and gas prices in check - well, guess not. The
    fact is, the oil market is global in nature, and decisions
    made half a world away still impact what we pay for
    gasoline here in the U.S. Recently, oil prices have been
    under pressure due in no small part to Middle East
    tensions over Iran's nuclear program and OPEC's
    decision not to increase oil output even as all signs
    point to higher global demand. Many of these statistics
    about the surge in gas prices come from - hold your
    breath - the Automobile Association of America (AAA),
    which just might reconsider some of its recent attacks
    on American-made ethanol. After all, one of the few
    factors exerting a downward pressure on gasoline
    prices is ethanol, which makes up 10 percent of the
    nation's gasoline pool.

    Today, ethanol is about $0.75 per gallon cheaper than
    gasoline at the wholesale level. Yet, the retail savings
    resulting from increased ethanol use go far beyond
    simple blending economics.

    America's growing use of domestically-produced
    ethanol reduced wholesale gasoline prices by an
    average of $1.09 per gallon in 2011, the most recent
    year for which complete statistics are available,
    according to a recent study conducted by economics
    professors at the University of Wisconsin and Iowa
    State University for the Center for Agricultural
    Research and Rural Development (CARD)."Growth in US
    ethanol production has added significantly to the
    volume of fuel available in the US," says Professor
    Dermot Hayes, one of the study's authors. "It's as if the
    U.S. oil refining industry had found a way to extract
    10% more gasoline from every barrel of oil."

    Since the average American household bought 1,124
    gallons of gasoline in 2011, ethanol reduced average
    annual household spending at the pump by more than
    $1,200. One reason why American ethanol helps to
    hold down gasoline prices is that it replaces foreign oil
    which has become even more expensive because of
    the unrest in the Middle East and speculation in
    commodities markets. From 2005 through 2012,
    American dependence on imported petroleum
    products declined from 60 percent to 41 percent.

    All of this is something Members of Congress need to
    consider as they assess legislation promoted by the oil
    industry to repeal or reform the Renewable Fuels
    Standard (RFS). The RFS is working to expand
    domestic energy supply, encourage investment in new
    technologies, and reduce gasoline prices at the pump.
    Don't mess with the RFS!

    #2
    I call propaganda. More ethanol = less food.

    Comment


      #3
      Happy Trails, are you a farmer?

      Comment


        #4
        From Red River Network March 18/13

        "RIN Prices are not to Blame for Increased Gasoline
        Prices — With the recent rise in the cost of Renewable
        Identification Numbers, oil companies are blaming
        ethanol for high gasoline prices. Growth Energy press
        secretary Michael Frohlich says RINs are not the cause
        of increased prices. "Trying to say that increased RIN
        prices are causing an increase in the gasoline prices is
        simply false; there's no connection there. These oil
        companies are refusing to increase higher blends, so
        we're running into a blend wall," Frohlich said, "we
        have over 6 million miles of run on E15 and refiners
        don't want to use it because they don't want to lose
        their marketshares, so they're fighting the blend wall
        trying to keep it in place. They're willing to pay higher
        RIN prices for these credits instead of blending the
        renewable fuel, which is what they are supposed to
        do."

        Access to E15 Will Grow — The oil industry has said
        publicly it wants to eliminate the Renewable Fuels
        Standard. Even though the oil companies control E15s
        access to the marketplace, Bob Dinneen, President of
        the Renewable Fuels Association, thinks it will grow.
        "The economics are going to prove to be so
        compelling. Ethanol today is $0.70 below the price of
        gasoline, so E15 would provide even more savings
        and, more importantly, more octane. You'd have a
        higher performance fuel at a lower cost," Dinneen said,
        "you will see it growing, evolving but it's going to take
        time, because the oil companies are doing everything
        they can to keep their marketers from making those
        fuels available to the public."

        Comment

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