News
Navy to Buy $12 Million of Advanced Biofuels in Record Purchase
As part of an effort to use renewable
sources for half of its fuel needs by 2020, the Navy will be purchasing
450,000 gallons of algae-based biofuel for use in aircraft, ships and
unmanned vehicles. Still considered in the research and
development stage, the fuel costs $26 per gallon with the price
expected to decline in coming years as the market develops.
Bloomberg (12/5)
OriginOil Announces New Research Agreement with U.S. Department of Energy's Idaho National Laboratory
The Department of Energy (DOE) has
entered into a Cooperative Research and Development Agreement (CRADA)
with OriginOil to combine their resources and expertise in order to
create industry standards for algal biomass. The DOE’s Idaho
National Laboratory (INL) will provide advanced biofuels production
facilities in an attempt to integrate algal with terrestrial biofuel
production in order to achieve large-scale production. The
arrangement was made in hopes that standards and optimization of
refinement processes will accelerate the pace of national energy
independence policies.
Wall Street Journal (Subscription Required 12/8)
World Agricultural Supply and Demand Estimates
U.S. wheat ending stocks for 2011/2012
are projected to be 50 million bushels higher as wheat exports have
declined the same amount due to strong domestic prices in other
producing nations as well as a tight domestic corn supply.
Projected ending 2011/2012 feed grain stocks are slightly higher, with
slowly rising corn stocks and an increase in the importation of oats
for Canada.
WASDE Report (12/9)
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Durbin talks Farm Bill, Budget with Illinois Farm Bureau
On Dec. 5, Sen. Dick Durbin, D-Ill., in
an annual meeting at the Illinois Farm Bureau said that while deficit
cuts are being made, changes for the ethanol industry need to be
carefully planned and phased in. Durbin also acknowledged the need to
cut direct payments, but stressed there should be a protection program
in place for farmers if prices drop in the market.
WJBC (12/5)
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Gingrich, Backed By Ethanol Lobby, Supports Subsidy
Recent interviews and reports show
presidential candidate Newt Gingrich as the ethanol industry’s biggest
supporter among his fellow GOP candidates. The political action
committee of ethanol producer Poet and people connected to the company
are the second largest donor to Gingrich’s campaign.
Talking Points Memo (12/8)
Elimination of Ethanol Blender Subsidy Doesn't Faze Poet's Broin
Poet CEO Jeff Broin said though the
federal tax credit that supports ethanol blending will expire in a few
weeks, there will not be a significant impact on the ethanol industry.
Broin said that ethanol is now able to compete in the marketplace
independent of a tax credit.
Argus Leader (12/7)
Farm Credit Supports 25X’25 Alliance with Renewable Energy Grant
Farm Credit announced this week that it
is increasing its already present role in rural America by committing
$50,000 to promote long-term energy solutions. The grant will help to
promote discussions on solutions for cost saving and clean energy for
farmers, ranchers, and foresters.
Oklahoma Farm Report (12/7)
Policy Pennings #593 - Global Warming: The Argument vs. Assessing the Risk
Daryll Ray’s and Harwood Schaffer’s most recent weekly
column discusses the United Nations Framework Convention on
Climate Change that recently took place in Durban, South Africa.
Agricultural Policy Analysis Center (12/9)
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Contributors:
Jacob Antrican, Cathy Cavander and Katherine Meade
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AT A GLANCE
News
Navy to Buy $12 Million of Advanced Biofuels in Record Purchase
OriginOil Announces New Research Agreement with U.S. Department of Energy's Idaho National Laboratory
World Agricultural Supply and Demand Estimates
Farm Bill Developments
Durbin talks Farm Bill, Budget with Illinois Farm Bureau
Gingrich, Backed By Ethanol Lobby, Supports Subsidy
Elimination of Ethanol
Blender Subsidy Doesn't Faze Poet's Broin
Farm Credit Supports 25X’25 Alliance with Renewable Energy Grant
Policy Pennings #593 - Global Warming: The Argument vs. Assessing the Risk
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Contact Details
www.aaminc.org
Larry Matlack
(620) 727-0333
larry@stingerltd.com
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AAM stands for food and fiber
producer and commodity PARITY. Parity is a term that denotes a fair
commodity price adjusted for inflation to the commodity prices.
The Statutory Parity Index, established during the depression of
the 1930s, reflects prices received in 1910-1914 (considered to be the
last 5 normal years prior to the outbreak of World War I) when
producers, middlemen, and consumers had a balanced income. Today, many
commodities average less than PARITY. Meanwhile costs of trucks,
combines, implements, tractors, and hired help have risen dramatically.
AAM still demands a parity price for commodities. Go to AAM's website:
http://www.aaminc.org for more information.
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