OVERVIEW:
THOUSANDS OF IOWA'S CORN FARMERS SEE FUTURE IN ETHANOL PLANTS By Peter Slevin
LETTER: ETHANOL AS A PANACEA By George Naylor ETHANOL AS A PANACEA: A RESPONSE
By Keith Mudd WORLD BANK "FLOODED" WITH ETHANOL FUND REQUESTS By
Gilbert Le Gras DAIRY LEADERS TALK ABOUT FIGHTING FOREIGN SUBSIDIES By Dennis
Pollock MORE OF U.S. OWNED BY OTHER By Martin Crutsinger THEATER REVIEW:
"THE FIELD By Charles Isherwood
THOUSANDS OF
GOLDFIELD,
The pungent liquid called ethanol, made from corn, has
"We'll be the Arabs of the
Ethanol prices are surging across the country as legislators add incentives to
spur usage and fleet owners rejigger their fuel orders to cope with $3-a-gallon
gasoline. The boom has meant profits for early investors, corn farmers,
truckers and suppliers, even as financial analysts and government officials
hurry to assess the fuel's staying power and its impact on such matters as farm
subsidies and national security.
With national capacity more than doubling in the past three years and set to
grow an additional 50 percent by the end of 2007, the wave is moving fast ---
from New York, where Gov. George E. Pataki (Rep.) this month announced
construction of the state's first ethanol plant, to California, where Microsoft
Chairman Bill Gates recently invested $84 million in Pacific Ethanol Inc.
The boom here has largely been a grass-roots phenomenon, fueled by clusters of
growers, bankers and small-town professionals. Aspiring biofuel plant owners
have been barnstorming the state, delivering investment pitches in firehouses,
schools and community centers.
Six thousand farmers have bought in.
"There's quite a bit of exuberance for the ethanol plants. They're paying
real good dividends," said
The state legislature this year passed incentives designed to increase the
percentage of ethanol and biodiesel in
Ethanol is the fuel Henry Ford originally envisioned for his mass-produced
Model T automobile. It is blended into three of every ten gallons of gas sold
in the
In signs that big-time players are betting on ethanol's future, Illinois-based
agribusiness giant Archer Daniels Midland Co. recently announced a large
expansion, while car makers are increasing their commitment. General Motors
Corp. says it will manufacture 400,000 more flex-fuel vehicles, which will join
more than five million on the road.
Big manufacturers are also making engines that can run on biodiesel, a smaller
but fast-growing segment of the industry.
At a gas station in Hiawatha, outside
"Once ethanol got cheaper than gas, it really took off," said Bill
Horan, a farmer who is putting together investor groups for new plants.
The response to investment groups has been stunning.
Two years ago, it took less than three weeks to raise about $20 million from
472 investors for the Goldfield plant in central
Recently, the money has started arriving even faster.
When Horan and his partners sought $20 million for each of three new biodiesel
plants, no request took longer than 10 days to fulfill. In one case, the offer
was fully subscribed in eight days and the organizers sent $2.5 million back.
Horan said banks have been willing to lend large sums with no collateral other
than the refinery itself.
"People will drive all the way across
The added demand has increased corn prices as much as eight cents a bushel this
year. A typical plant generates at least 30 jobs in rural
"Everybody in the corn industry is repositioning," said Joe Horan, on
the board of the Goldfield plant. "Everybody's just kind of dancing right
now, trying to find the right partner."
The way the Horans see it, the popularity --- and the political support --- for
biofuel will increase as the number of people with a stake in it grows.
"Every time a plant is built," said Bill Horan, "that's 500 more
ethanol supporters in a congressman's district. And they really care. It's not
just Ma and Pa on the farm. It's their dentist son in
The farmers have their own incentives to find cheaper sources of fuel. To plant
their crop this year, the Horans will use 10,000 gallons of diesel. The fuel
costs continue through the summer to harvest season, powering the engines that
sow, tend, reap and transport beans and corn.
"There's all kinds of things that inspire us. We think it's going to be
here for the long term," said Dave Hoffman, owner of a farm supply store
in Merrill, about 20 miles northeast of
"We hate to see our soldiers go over and die for this," Hoffman said.
In June 2005, ethanol was going for $1.20 a gallon on the
But suppose the price of oil declines --- if, for example, the economies in
"This is a cyclical business. There are going to be ups and downs,"
said Monte Shaw, executive director of the Iowa Renewable Fuels Association,
the biofuel trade organization. "But demand for these fuels is going to
grow. Of that I'm absolutely certain."
Beyond
"No threat. It's an opportunity," Shaw said. "We are in
From their home at the intersection of two gravel roads in central
"History tells us that when there's an industry that's very profitable,
there's going to be such an influx of people wanting to participate that it's
going to be oversaturated," he said. "But it appears that the demand
potential can sustain all the plants being built right now."
Bill Horan put it another way.
"We're three, four percent of the country's liquid fuel now," he
said. "We've got a long ways to go."
LETTER: ETHANOL AS A PANACEA By George
Naylor
Washington Post May 29, 2006
The ethanol fuel boom in Iowa can seem intoxicating, but it is misleading to
claim that Iowa farmers in general have benefited ["Thousands of Iowa's
Corn Farmers See the Future in Fuel," news story, May 21].
Unless you have been an "investor" in an ethanol plant during recent
times of expensive petroleum, the only way a farmer has participated in the
ethanol program has been by producing cheap corn and relying on government
subsidies to survive. The Iowa Corn Growers Association, like its farmer members
quoted in the article, has promoted ethanol for more than 30 years.
It even sounded reasonable to me when I was a young farmer on the first Iowa
Corn Promotion Board in 1978. Now, with catastrophic oil prices and corn prices
lower than when I started farming 30 years ago, it would be hard to imagine
ethanol plants not being profitable.
Unfortunately, the legacy of the cheap-corn subsidy system is an
Without sound energy and agricultural policies that ensure that farmers get a
fair price for their products, ethanol may be the illusory pot of gold at the
end of the agribusiness rainbow.
George Naylor is President of the National Family Farm Coalition (NFFC)
ETHANOL AS A PANACEA: A RESPONSE By Keith
Mudd Organization
of Competitive Marketing (OCM) June 1, 2006
I have to disagree with George. Ethanol has created additional demand for corn
thereby raising the price.
The additional demand has benefited corn farmers who are investors in ethanol
plants obliviously, but also those who are not. I see it locally.
George is correct when he states that farmers rely on the government subsidy to
survive in spite of this additional demand. The ABC (ADM, Bunge and Cargill)
cartel are predators. They still lurk in the shadows of a harvest time glut of
cash corn to take advantage of sellers. Most sellers of corn in the fall have
little or no storage and are forced to sell at harvest.
This creates opportunity for buyers to pay as little as they like because most
have regional monopolies. Farmers without storage have no choice but accept the
low prices offered and take advantage of the LDP's offered by the government.
THIS is the real problem. We need competition for our products and farmers need
to develop the ability to deprive the buyers of this cheap corn in the fall.
At the risk of sounding like a National Corn Grower disciple, farmers who can
store their product at harvest are much more likely to receive a price
substantially higher than harvest time lows. The harvest time low the past two
years has been about $1.50 a bushel here in
This tells me that it is opportunistic greed on the part of the large buyers
that gives us LDP's. Fundamentally nothing changes during harvest except some
people are forced to sell as they have no options.
Ethanol is part of the answer. A lack of competition and farmers inability to
withhold product from a unscrupulous buyer are the problem.
Keith Mudd is president of the Organization of Competitive Marketing (OCM)
WORLD BANK "FLOODED" WITH ETHANOL FUND REQUESTS By Gilbert Le
Gras Reuters News May 11, 2006
The World Bank's private sector arm is being deluged with funding requests for
ethanol projects around the globe as crude oil prices trade near record highs,
an International Finance Corp. official said on Thursday.
"We've been flooded with requests from lots of countries. There's some
requests from Latin America, we've had several from Africa and one or two in
East Asia," IFC's Marcelo Lessa said from a cane-ethanol mill in
In the past three years the IFC has invested $65 million in one ethanol plant
in
Now three more
"In other countries, the issue of ethanol really accelerated in the second
semester of last year, so we have received many proposals," the
agribusiness expert said.
Since November, sugar cane project funding requests --- largely in the
feasibility stage -- have come in from Mali, Guatemala, Honduras, the
Philippines, Colombia, Saint Kitts & Nevis, Mozambique, Tanzania, Egypt and
Turkey.
One corn-based project in
He said inquiries have increased since President Bush last week called on the
U.S. Congress to reconsider tariffs on imports of ethanol, as crude oil prices
traded near the mid-$70s per barrel.
"We'll turn several (plans) down because we believe ethanol production has
to be competitive with costs in
Projects that are more likely to be approved are in countries with a
well-established sugar cane infrastructure such as
"
Another benchmark is costs, using Brazilian output costs as the standard. That
cost is about $227 per cubic meter, but an 11% rise in
"You shouldn't mandate ethanol blending into gasoline if your production
costs are substantially higher compared with
Conservative industry estimates in
Still, Lessa agreed with an International Energy Agency estimate that, at best,
ethanol could make up ten percent of world gasoline by 2025.
Ethanol, an alcohol most often made from grains and sugar cane, is blended with
gasoline to reduce tailpipe emissions in cars and trucks.
DAIRY LEADERS TALK ABOUT FIGHTING FOREIGN SUBSIDIES By Dennis
Pollock The Fresno
Bee June 1, 2006
Some of the nation's top dairy industry leaders met in
Rep. Jim Costa, Dem.-Fresno, explained how the 2007 Farm Bill will be
influenced by world trade talks aimed at cutting tariffs and subsidies by the
end of June, a target date that many see as elusive.
"We cannot unilaterally disarm," Costa said, referring to export
subsidies elsewhere, notably the European Union. The Bush administration has
sought agreement from
Costa cautioned industry members to beware of trade pitfalls such as that faced
by the
"You'll need to look closely in the next 18 months at agreements reached
under the [World Trade Organization]," he said.
Paul Rovey, vice chairman of the U.S. Dairy Export Council in
Costa pointed to the closure in March of the De Francesco & Sons plant west
of Firebaugh as a casualty of trade that saw a huge influx of garlic from
But industry leaders are mistaken if they think they can block imports into the
Both dairy organizations produced a booklet that calls attention to high export
subsidies elsewhere, calling them "the biggest impediment" to
expanding
Kozak urged industry leaders to participate in talks on trade: "If you're
not at the table, you'll be on the menu."
The meeting concluded with remarks from members of the audience. They included:
Machado said he also opposes dairy price supports: "I never did like being
partners with the government."
Richard Cotta, senior vice president of California Dairies Inc., who asked for
more congressional oversight when trade agreements go awry.
He cited the example of an administration requirement that dairy products
shipped to
"Nobody does that," he said. "You can't get money ahead of time
from a guy in
Cotta also said some export of milk powder to
Jim Tillison, executive vice president and CEO of The Alliance of Western Milk
Producers in
"The digesters usually produce more electricity than can be used by the
dairy itself," he said. He added that dairy operators do not receive
enough money for excess generated power to compensate for costs of building and
operating a digester.
MORE OF U.S. OWNED BY OTHERS By Martin
Crutsinger
Associated Press March 20, 2006
The furor over efforts by an Arab company to buy
From the Essex House hotel in
The
Foreigners sell their cars and oil to Americans and hold dollars in return.
Those dollars are invested in stocks, bonds and other assets, including real
estate and factories.
Foreigners own half of the
At the end of 2004, the total foreign direct investment in this country ---
actual factories, office buildings and other tangible assets as opposed to
stocks and bonds --- came to $1.53 trillion, 8.2 percent more than in 2003.
That investment shows up in all of the 50 states.
In
Arab investment has gotten the most scrutiny of late because of the
now-withdrawn bid by a Dubai-based company to buy operations at six major
European nations accounted for $977 billion, or two-thirds, of the $1.53
trillion of foreign direct investment, according to the Commerce Department.
By contrast, Arab countries in the Middle East accounted for $9.3 billion, led
by $4.7 billion in investment from
DP World of
A bill by the chairman of the House Armed Services Committee, GOP Rep. Duncan
Hunter of
Opponents say his proposal would mean the fire sale of billions of dollars of
assets in foreign hands and end up hurting the
Consider that for more than a decade, French tire maker Michelin has been the
exclusive supplier of tires for NASA's space shuttles. DSM, a Dutch company,
makes body armor for
Nearly one in five
"People don't understand how integrated the U.S. economy has become with
the global economy, how dependent we have become on other nations," said
Clyde Prestowitz, president of the Economic Strategy Institute, a Washington
think tank
THEATER REVIEW: "THE FIELD" By Charles
Isherwood New York
Times June 2, 2006
In "The Field" John B. Keane draws a portrait of rural life in
Ireland in the mid-20th century that is both loving and damning, sorrowful and
censorious. In the hearts of villagers involved in the cover-up of an act of
violence, cowardice and an easy accommodation with brutality sit alongside a
robust humor, loyalty to clan and class, and a fierce love of the land.
Those virtues ennoble --- or at least explain --- the morally destructive
compromises the characters are forced to make to guarantee the survival of
their way of life. The mournful larger question raised by "The
Field," written and set in 1964, is whether a culture so poisoned by
corruption is worth preserving.
Mr. Keane, who died in 2002, was one of
"The Field" is one of Mr. Keane's best-known plays, but it also
suggests why his work has not found a wider audience outside of
It was, nonetheless, filmed by Jim Sheridan in 1990, with Richard Harris
receiving an Oscar nomination for his performance in the central role of
McCabe, an Irish farmer known as the Bull, who goes to desperate lengths to
secure his right to buy a piece of land that has symbolic and economic
significance to him.
A sturdy new production, directed by Ciaran O'Reilly, opened last night at the
Irish Repertory Theater. Bull McCabe is played by Marty Maguire, an actor who
puts his own strong stamp on the role. With a fierce glower and a rough swagger
that make the thick wooden pole he carries seem an ominous presence, even when
it sits idle as he knocks back a stout, Mr. Maguire's Bull boils with a fury
that brings a tense focus to the play's strongest scenes.
These mostly come in the tighter first act, which turns on the auctioning of
the field of the title, a precious four acres that provide the only passage to
water for the Bull's cattle. He's had the use of the land for years and tended
it with loving care, but the field's owner, the elderly widow Maggie Butler
(Paddy Croft), has decided to sell it to the highest bidder.
Using emotional blackmail and physical threats, the Bull sets about to make
sure that he will be the only bidder. The auctioneer, Mick Flanagan (Malachy
Cleary), is reluctant to bend the law to cheat a widow out of her due. But he
shamefacedly succumbs when the Bull vows to lead a boycott of his saloon. Since
the Bull is related to half the town, that's not idle talk.
Although Mick's wife, Maimie, played with sly, lively wit by Orlagh Cassidy,
has a sharp tongue and a clear sense of the sordidness of the deal, she knows
that the only way to protect the fortunes of the family (nine children and
counting) is to acquiesce. Only the Flanagans' sensitive older son, Leamy (Paul
Nugent), retains enough innocence to squirm at their dishonorable role in the
fraud.
But fraud turns to something more repellent when a stranger from
Mr. Keane's empathy for the Bull's tortured soul is manifested in the gruffly
lyrical speeches this character delivers about his affection for the land and
the way of life that he sees being threatened by the encroachment of industry
and outsiders. But the integrity of his ideals is tarnished by the cruelty of
his behavior.
Similarly, the townsfolk's loyalty to a man of their class, in opposition to
the representatives of authority, like priests and policemen, is seen as
benighted but not entirely dishonorable.
The second act tends to belabor Mr. Keane's observations about moral corruption
bred by fear and blind allegiance to questionable ideals. A prescriptive note
enters the play: not for nothing does "The Field" contain a long
sermon delivered by the local priest, who harangues the villagers for
protecting the wrongdoers in their midst.
But Mr. Keane does suggest the people's suffering awareness of their own
iniquity. The actors convey the conflicts in their souls in ways that register
subtly but surely, as when Maimie almost whispers to her son, when he complains
of their complicity, "God we're a pity, Leamy ... the whole bunch of
us."
Mr. Keane hasn't the heart to condemn his people entirely; there is compassion
even in his censure. For these God-fearing Catholics, he suggests, the painful
knowledge of their own sins will be punishment enough.
The Field
By John B. Keane; produced and directed by Ciaran O'Reilly; sets by Charles
Corcoran; costumes by Martha Hally; lighting by Jason Lyons; sound by Zachary
Williamson; fight direction, Rick Sordelet; hair and wig design by
Robert-Charles Vallance; dialects, Stephen Gabis; production stage manager,
Elis C. Arroyo; stage manager, Janice M. Brandine; managing director, Patrick
A. Kelsey. Presented by the Irish Repertory Theater, Charlotte Moore, artistic
director; Mr. O'Reilly, producing director. At
What's on the Mind of Health-Minded Organic Consumers?
What's on the Mind
of Food Shoppers?
Nutrition,
Convenience, Organics, Symbols
The Cheese Reporter, May 12, 2006
http://www.cheesereporter.com What's on
the Mind of Food Shoppers?
Nutrition, Convenience, Organics, Symbols
By
The Cheese Reporter, May 12, 2006
http://www.cheesereporter.com
Chicago—“Consumers
are telling us they’re looking for food choices that are more nutritious,
along with great-tasting and convenient, but they want help in identifying
what’s good for them,” according to Debbie Carosella, vice
president, strategic marketing, ConAgra Foods Consumer Foods.
ConAgra was one of several companies and organizations that released new
consumer surveys this week.
While more shoppers are seeking ways to improve their eating habits with
balanced, sensible solutions, deciphering the right food choices isn’t
always easy, and confusing nutrition information can leave some consumers
scratching their heads. To determine what they should consider “better
food,” many consumers are turning to trusted seals, standards and symbols
of higher quality.
The new survey of consumer shopping habits commissioned by
ConAgra Foods confirmed this trend:
•Fully 95 percent of Americans say they would consider quality symbols,
seals and “trust marks” when food shopping.
•Four times as many survey respondents said they are more likely to
consider buying foods based on trust marks today than they were a year ago,
compared to only a quarter as many who said less likely.
•The top eight trust marks consumers currently look for are: whole
grains, heart-healthy, zero grams trans-fat, low sodium, natural, dietary
guidelines, organic and kosher.
Market research confirms growing interest among US food shoppers for certified
organic and Kosher seals, ConAgra reported. For organic, a survey commissioned
by Hunt’s Organic (a ConAgra brand) found that nearly one in four
Americans find organic labeling helpful, especially if certified by USDA, in
providing an additional assurance of quality and peace of mind when making
choices to purchase “good foods” to serve their families.
The Kosher trend is also gaining momentum as more people come to understand the
quality connection associated with the Kosher seal, ConAgra noted. More than
one in
10 consumers in the company’s survey recognized the Kosher quality seal
as something they would consider when making quality food-purchasing decisions.
Organics Bought Weekly By 23%
A report released this week by The Hartman Group found that, at the core of the
market, 23 percent of US consumers buy organic products on a regular (at least
weekly) basis.
The report, Organics 2006: Consumer Attitudes & Behavior, Five Years Later
& Into the Future, found that organics has overtaken “natural”
as a buzzword for mainstream consumers interested in higher quality food
experiences from the dual perspective of health and gourmet eating. Additional
study findings include:
•Channels: Compared to five years ago, consumers are much more likely to
use natural food stores to purchase organic foods and beverages; 29 percent
were doing so in 2000, while nearly half (49 percent) are doing so today.
Further, while using grocery stores for organic purchases has fallen somewhat
(from 63 percent of consumers in 2000 to 58 percent in 2005), using
supercenter/discount stores for organics has increased (from 9 percent to 15
percent).
•Demographics: Compared to the general population, two ethnic and racial
groups are somewhat more likely to purchase organics: Asian Americans and
Latino/Hispanic Americans. Latino/Hispanic Americans and African Americans are
much more likely than Caucasians to be what The Hartman Group terms “Core
Organic Consumers,” those most involved in the organics world.
•Emerging usage theme: In both quantitative and qualitative research, one
of the strongest concerns expressed by consumers compared to five years ago is
the impact of additional hormones in food products and their effect on
children’s health.
“Organic has less relevance for consumers when one moves into the center
store and into categories that are inherently processed to a larger degree with
numerous ingredients,” said Michelle Barry, The Hartman Group’s
senior vice president of consumer insights and trends. “The exceptions
here are categories frequently eaten by children, where the value of organic is
significant to the parent.”
Gas Prices Prompt Economizing
The rapid rise in gas prices affects where consumers shop for food and
encourages the use of more economizing behaviors, according to a new Food
Marketing Institute (FMI) report.
The study, US Grocery Shopper Trends, 2006, also shows that consumers seek
convenient mealtime solutions, a fast and easy-to-shop store environment and
value, and they have different behaviors when it comes to their primary (where
they make their largest or “stock up” weekly purchases” and
secondary (used for “fill-in” purchases) stores.
Rapidly rising fuel prices are driving shoppers to use more economizing
behaviors prior to and during their shopping trips. Nearly half claim that high
energy prices have had a direct influence on purchasing habits.
In response, consumers are buying fewer luxury items, cooking more and eating
out less, FMI reported. They are also incorporating cost cutting measures such
as:
•Making a shopping list (46 percent).
•Using frequent-shopper programs (39 percent).
•Checking newspaper specials (36 percent).
•Redeeming coupons (28 percent).
•Stocking up on bargains (23 percent).
•Comparing prices across stores (20 percent).
•Buying store or lower-priced brands (17 percent).
FMI’s report suggests that retailers focus resources on consumers that
enjoy cooking by offering recipe suggestions, cooking classes and merchandising
focused on meal planning. In marketing to shoppers that have less interest in
cooking, retailers should place a strong emphasis on meal solutions that
require no or minimal preparation, and fast, convenient checkout options.
Shoppers are more likely to shop at conventional supermarkets than any other
format. Ninety percent have shopped at a supermarket in the past 30 days,
followed by supercenters (38 percent) and warehouse clubs (23 percent).
When choosing a primary store for food purchases, the most important factors to
consumers are a clean, neat store (75 percent), high-quality fruits and
vegetables (74 percent), high-quality meats (74 percent), accurate shelf tags
(70 percent) and low prices (69 percent).
Conventional supermarkets remain the dominant outlet for food products,
including meat and poultry (68 percent), frozen foods (63 percent), cereal (61
percent) and natural and organic foods (57 percent).
Organic Vegetable and Crop Outreach
Specialist
C.S. Mott Sustainable Food Systems
303 Natural Resources Bldg.
517-353-3542
517-282-3557 (cell)
517-353-3834 (fax)
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