Tag Archives: press-releases
Agriculture Is Expected To Remain Strong In The Coming Decade
Mark Seamon, Michigan State University Extension | May 14, 2013 It can be tricky to predict the future, especially when this future includes factors of weather and world economies. By using specific assumptions, the USDA has developed a “conditional scenario” of the future of agriculture in the next decade, according to “ USDA Agricultural Projections to 2022 .” Overall, this report indicates an optimistic future that includes some bumps along the way. A couple of these bumps include the short-term softening of commodity prices which are affected by increased production encouraged by high prices from the drought induced short crops of 2012 and increasing crude oil prices. The prediction of an optimistic future is formed by the consideration of many factors both domestically and internationally. According to the USDA report: Global developments of strengthening economies in many countries around the world support demand of agricultural products. Improved economies indicate an increase in demand for diversified food products (like processed foods, meat and poultry) as well as increased demand for biofuels. World economic growth is projected to occur at 3.3 percent annually while the U.S. economy is projected to grow at a rate of 2.6 percent. The U.S. dollar is expected to continue to depreciate, which can be positive for encouraging exports. The USDA report further explains how energy is expected to continue to be an important factor for agriculture due to these factors: Crude oil prices are expected to increase over the next decade. Domestic corn-based ethanol and biodiesel production will continue at current, or slightly increased, levels. Global biofuel production is expected to expand steadily. The European Union will remain the largest importer of biofuels, increasing the utilization of feedstocks (wheat and corn). Argentina and Brazil will remain the dominant biofuels exporters, increasing the utilization of feedstocks (soybeans for biodiesel and sugarcane for ethanol). An effect of improving global economies is the demand for processed foods and meat products. In the short term, meat prices may rise due to reduced production but as feed costs moderate and meat demand strengthens this sector should realize improved profits. While the factors that were used in developing these projections are critical to the accuracy of the future outcomes, unpredictable factors can have significant impacts on actual performance. One clear example of this is the sharply reduced crop production of 2012 that was a result of a drought. Michigan State University Extension will continue to use this type of information to help plan programs to meet the needs of Michigan farmers, citizens and businesses. Continue reading
GranInvest Secures $149m Funds To Develop Ethanol Plant In Brazil
EBR Staff Writer Published 08 May 2013 GranInvest, a bio-fuel producer, has secured $300.3m funds from Banco Nacional de Desenvolvimento Econômico e Social (BNDES) in Brazil to finance the construction of an ethanol plant in Brazil. The second generation ethanol production plant will be located in São Miguel dos Campos, Alagoas, and is estimated have an annual production capacity of 82 million liters. The investment is said to be a part of the Support Programme for Industrial Innovation Sector Sugarcane and Sucroquímico (PAISS) for financing the development and production of new technologies to process bio-fuel from sugarcane. The program has selected 35 bio-production projects intending to invest $3bn. With this project, the bank has completed the financing $2bn for the cellulosic ethanol projects. Meanwhile, the plant will use straw and bagasse to produce ethanol so as to increase output by up to 45% compared to current levels. It is touted as the first commercial-scale plant in the country and second in the world with similar plant developed in Italy. Continue reading
Franken And Harkin Introduce Energy Section Of 2013 Farm Bill
By Sen. Al Franken’s office | May 09, 2013 U.S. Sens. Al Franken, D-Minn., and Tom Harkin, D-Iowa, have introduced the energy legislation to be included in the 2013 Farm Bill, which includes several provisions expected to create jobs throughout the country. Franken and Harkin’s Rural Energy Investment Act will help farmers, ranchers, and rural communities by encouraging the growth of agricultural energy technologies, including advanced biofuels, biogas, biomass, and renewable energies. “Advancing our agricultural energy technologies is good for our farmers and economy, and it improves our overall energy independence and security,” Franken said. “This legislation will create jobs and play a critical role in cutting costs for our farmers and ranchers and will help them with the adoption of energy efficiency and renewable energy technologies. I look forward to incorporating it into this year’s Farm Bill.” “The 2002 farm bill included an energy title for the first time to send a message that our farms, ranches, and rural communities are on the front lines of producing new energy sources such as bioenergy and windpower,” Harkin said. “These energy programs are essential for expanding clean energy supplies, which also spur rural economic development and job creation. The tradition of providing strong support for an energy title in a farm bill must continue today, so for that reason I am hopeful that this measure will serve as a marker as the 2013 bill moves through the U.S. Senate.” The Rural Energy Investment Act also contains several programs: The Rural Energy for America Program , which Franken included in the 2012 Farm Bill that passed the Senate. The program helps agriculture producers and businesses in rural areas invest in energy efficiency and renewable energy projects so they can cut energy bills and earn additional income by selling the energy they produce. The Biorefinery Assistance Program, which assists in the development of new and emerging technologi es for advanced biofuels through support for the construction and retrofitting of biorefineries for the production of advanced biofuels. The Biomass Crop Assistance Program, which provides financial assistance to owners and operators of agricultural land and non-industrial private forest land who wish to establish, produce, and deliver biomass feedstock to energy producers. The Biomass Research and Development Initiative , which provides competitive funding in the form of grants, contracts, and financial assistance for research, development, and demonstration of technologies and processes leading to significant commercial production of biofuels, biobased energy, feedstocks, and products—including the development of cost-competitive cellulosic ethanol. Information about other programs in the bill can be found here . Since 2009, thousands of direct and indirect jobs have been created or saved in rural areas by the Farm Bill’s energy programs that benefitted almost 12,000 rural small businesses, agricultural producers, and advanced biofuel refineries across the country. Continued growth in new agriculture, manufacturing, and high tech jobs are at great risk without continued Federal investment. A strong energy section of the Farm Bill has the support of a coalition of over 100 agriculture and energy organizations. Read their letter here . Franken and Harkin’s bill is cosponsored by Sens. Sherrod Brown, D-Ohio; Dick Durbin, D-Ill.; Maria Cantwell, D-Wash.; Tim Johnson, D-S.D.; William “Mo” Cowan, D-Mass.; Mazie Hirono, D-Hawaii; Tammy Baldwin, D-Wis.; and Brian Schatz, D-Hawaii. Continue reading
