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Trump signs 2018 Farm Bill

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By Erin Krueger

December 20, 2018

Feedstocks Policy Business Operations Markets Coproducts 

On Dec. 20, President Trump signed the $867 billion 2018 Farm Bill into law. The bill, titled the Agricultural Improvement Act, or H.R. 2, reauthorizes several Energy Title programs, including REAP and BCAP.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol production by mills in the country's south-central region was up during the second half of November despite a drop in the volume of sugarcane that was processed.

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Japan is expected to import 890 million liters (235.11 million gallons) of fuel ethanol this year, mostly in the form of ETBE, according to an annual biofuels report recently filed with the USDA FAS's Global Agricultural Information Network.

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The grain buyers from 35 countries who attended this year's Export Exchange conference in Minneapolis have since reported buying an estimated $403 million worth of coarse grains and coproducts, including DDGS and feed grains.

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The U.S. Energy Information Administration has released the December edition of its Short-Term Energy Outlook, maintaining its November forecasts for 2018 and 2019 ethanol production, but making slight changes to quarterly production forecasts.

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Biomass Magazine has announced the preliminary agenda for the 12th Annual International Biomass Conference & Expo taking place March 18-20, 2019 at the Savannah International Trade & Convention Center in Savannah, Georgia.

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The U.S. House of Representatives passed the $867 billion 2018 Farm Bill by a vote of 369 to 47 on Dec. 12. The legislation will now be sent to President Trump's desk. Trump is expected to sign the bill.

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The USDA has reduced its forecast for 2018-'19 corn use in ethanol in the December edition of its World Agriculture Supply and Demand Estimates report. The report also predicts reduced corn imports and larger ending stocks.

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On Dec. 11, the Senate voted 87 to 13 to pass the 2018 Farm Bill. The vote came one day after House and Senate ag committee leaders released the text of the 2018 Farm Bill conference report. The bill will now be considered by the House.

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A report released by the Biofuture Platform states that the world's greenhouse gas reduction goals cannot be met without greater use of biofuels and bioproducts. The report also describes several barriers impeding future progress in the sector.

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Growing demand for meat in Cambodia has spurred a commensurate increase in imports of U.S. distillers dried grains with solubles (DDGS), corn gluten feed and meal and the first major U.S. corn purchase in recent history.

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UNICA, the Brazilian sugarcane industry association, has announced ethanol sales by production units in the south-central region of the country were up during the first half of November. The volume of sugarcane milled, however, was down.

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The U.S. Grains Council believes that the Peruvian poultry sector—the largest feed sector in the country—could use 100,000 metric tons of DDGS per year if the sector has a full understanding of the product.

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Over the past few days, the Trump Administration has announced progress on trade deals with Canada, Mexico and China that could have a positive impact on export markets for U.S. ethanol and distillers dried grains with solubles (DDGS).

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A new proposal released by the Ontario government indicates the province could require gasoline to be blended with 15 percent ethanol as soon as 2025. The U.S. ethanol industry has applauded news of the proposal.

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U.S. Grains Council and USDA officials traveling as part of a USDA Agriculture Trade Mission met with ethanol industry officials in South Korea earlier this month, urging them to reexamine the outlook for the country's fuel ethanol use policy.

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Mike O'Brien, vice president of market development for Growth Energy, says that with seasonal restrictions on E15 sales potentially being lifted in time for next summer's driving season, interest in selling E15 has increased among gasoline retailers.

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FROM THE DECEMBER ISSUE: Tariffs in China and Brazil have deeply affected U.S. ethanol exports, but other markets remain, new ones are opening and opportunities still abound for the world's lowest-cost octane.

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FROM THE DECEMBER ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about how tariffs are affecting ethanol exports, a look at potential railroad congestion, year-round E15 sales, and more.

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The European Commission”s new proposals for reducing the EU”s so-called “protein deficit” have missed a golden opportunity to highlight an important domestic producer of protein: crop-based ethanol production.

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Fresh off a trip to Mexico to tout the benefits of ethanol to retailers, the American Coalition for Ethanol's Senior Vice President Ron Lamberty said interest in ethanol among the country's retailers is piqued.

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FROM THE DECEMBER ISSUE: Railroad delays in 2014 forced ethanol plants to slow production or find other ways to move their products. Four years later, the situation has improved, but rail traffic is on the rise again.

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FROM THE DECEMBER ISSUE: The Oil Industry's sanctimonious attacks on E15 are false.

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FROM THE DECEMBER ISSUE: There's movement at last to obtain an RVP waiver for E15, but it might not come in time to make a difference next year.

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FROM THE DECEMBER ISSUE:Brazilian sugarcane ethanol can be a major part of U.S. renewable fuels industry.

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UNICA, the Brazilian sugarcane industry association, has announced that domestic sales of hydrous ethanol set a new record during the second half of October, reaching 1.07 billion liters (282.66 million gallons).

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A discussion draft of the 21st Century Transportation Fuels Act was released on Nov. 21. The bill aims to sunset the RFS and enact a national octane specification. Those in the biofuels industry are criticizing the bill for its treatment of the RFS.

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True Value

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By Jerry Shurson

November 20, 2018

FROM THE DECEMBER ISSUE: The actual nutritional and economic appraisal of DDGS is more complex than simply measuring profat content.

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There has been a media blitz lately by the oil industry saying that ethanol demand has been unaffected by the U.S. EPA's rampant grants of RFS exemptions to small refineries. Don't be fooled by these claims, according to the RFA.

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