Best of the NEC

This “Ethanol Report” podcast features highlights from the 13th annual National Ethanol Conference last month in Orlando. Included are comments from RFA president Bob Dinneen, National Corn Growers Association CEO Rick Tolman, Informa Economics CEO Bruce Scherr, and Assistant Energy Secretary Andy Karsner.

You can subscribe to “The Ethanol Report” by following this link.

Or you can listen to it on-line here: Ethanol Report 8 (6:30 MP3 file)

Closing Comments From National Ethanol Conference

This year’s National Ethanol Conference is officially over and it was the greatest one ever according to Bob Dinneen, RFA President. Here he’s leading first ever panel on “The International Biofuels Market.”

Even though it has been a long couple days he says he feels great, re-charged and energized. Although we heard a lot of talk about mis-conceptions in the public about ethanol he says the industry is getting better at dealing with correcting them. He also says that he heard the ethanol industry compared to a teenager and agrees that it is a time of transition. He also said that people were leaving here today more upbeat than when they arrived.

Bob says that if anyone was here they would see that this is not a static industry but one that’s constantly evolving and solving challenges. He says that the international panel was really good and showed how we face common challenges around the world as biofuels continue to develop.

You can listen to my closing interview with Bob here: Bob Dinneen Interview (9:00 MP3 file)

Corn Growers Meeting Production Challenges

One of the presenters here at the National Ethanol Conference was Rick Tolman, CEO of the National Corn Growers Association. Rick gave a great speech in which he provided a significant amount of data supporting the benefits of ethanol production using corn and that dispel many of the myths that seem to be lingering in the media and general public.

There are so many facts and figures in his talk that I don’t want to try to cover them all here. But for example, on one of his slides he shows that in 1944 we got 2.8 million bushels of corn off of 85 billion acres while just last year we got 13.1 billion bushels off the same number of acres. His point being that we’re getting more efficient in corn production. He also pointed out that companies like Monsanto are projecting that we’ll double the number of bushels harvested per acre in the near future as technology continues to develop.

You can listen to Rick’s speech here: Rick Tolman Speech (20:00 MP3 file)

Ethanol Industry Bright Spot in Economy

This week the RFA released the results of an economic analysis conducted by John Urbanchuk who works for LECG, LLC, a global expert services consulting firm. The report focused on the impact of the U.S. ethanol industry in 2007.

The analysis, conducted by John Urbanchuk of LECG, LLC, determined that the “increase in economic activity resulting from ongoing production and construction of new capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 jobs in America’s manufacturing sector — American jobs making ethanol from grain produced by American farmers.” The goods and services required to produce the estimated 6.5 billion gallons in 2007 added $47.6 billion to the Gross Domestic Product and raised household incomes by $12.3 billion.

The resulting economic activity from the domestic production of ethanol also paid dividends in the form of lower government expenditures and higher tax revenues. In 2007, the tax incentives provided for the production and use of ethanol totaled $3.4 billion. However, the increased tax revenue collected by the Federal Treasury totaled $4.6 billion. Moreover, state and local governments saw tax revenues increase by $3.6 billion.

As John says in my interview with him, it’s really hard to find a downside to the industry and it’s economic impact. You can read the full release here (pdf).

You can hear my interview with John here: John Urbanchuk Interview (9:00 MP3 file)

Farm Bill Update

U.S. Undersecretary for Rural Development, Tom Dorr, was first up on the program here this morning at the Conference to speak about the farm bill and focus on renewable fuel policies and provisions.

He says the ethanol industry is going through some growing pains, or put another way, transitional challenges. He’s convinced these will be overcome. Like many of the speakers here he talked about the attacks on ethanol, especially of late, in terms of sustainability. He said that some of the same regulatory rhetoric being discussed in Europe in regards to biofuels is creeping up in the debate in Washington, DC. He pointed out that farmers have long been working on sustainability and the facts show that they’re increasing yields while reducing inputs.

You can hear most of Dorr’s speech here (I missed the very beginning): Tom Dorr Speech (9:00 MP3 file)

Getting Corn Fed With Shannon Brown

Ethanol plants aren’t the only thing that’s corn fed. Shannon Brown is corn fed too and she played the song for us in a great concert tonight. She’ll be doing the same later this week at the Commodity Classic which is the combined annual meetings of the National Corn Growers Association, the American Soybean Association and the National Association of Wheat Growers. But we got her first.

I asked her about the song and how it all came about and what she thinks of the ethanol business that she’s been involved in through her sponsorship by VeraSun Energy.

Shannon says the song reflects the fact that she’s a corn fed Iowa girl and the song signifies who she is and where she comes from. She says that working with VeraSun has been an eye opener and she’s fully behind the mission of the ethanol industry. She says consumers should definitely feel comfortable putting it in their car.

You can hear my interview with Shannon here: Shannon Brown Interview (2:00 MP3 file)

Working Together With the Department of Energy

Our Assistant Secretary for Energy Efficiency & Renewable Energy, U.S. Department of Energy, Andy Karsner, was the keynote speaker at today’s luncheon. He gave a very passionate speech that you would really enjoy listening to. That’s why I decided to post a link to the full speech below for you. I know it’s a little long but you can listen to as little or as much as you’d like this way.

I think he went to great lengths to talk about the mis-information filtering out to the public about renewable fuel sources. In fact, as so many of you know, it’s hard to believe how much of it is out there. So he addressed those problems head on with good scientific information.

He tells a very moving story about how much he travels for his present position and how that has affected his family and young children. He says that even though it’s difficult, it’s minor compared to what our military men and women are doing to fight the war on terror overseas. He says it’s the least we can do to do our part here at home which includes developing sources of energy that make us more independent of those countries that would do us harm.

Another message that came through loud and clear was his idea that the solutions to our energy needs are something that will be done by not just the government but by private industry and government working together.

You can listen to Andy Karsner’s speech here: Andy Karsner Speech (38:00 MP3 file)

State of the Ethanol Industry By Bob Dinneen

The annual state of the industry was presented today by RFA President Bob Dinneen and as usual he preached a powerful sermon.

Speaking before more than 2,200 attendees at the 13th Annual National Ethanol Conference in Orlando, Florida, he declared that the state of the U.S. ethanol industry is sound:

“With your continued commitment, I can report to you without exaggeration or hyperbole that the state of the U.S. ethanol industry is sound, that we are prepared to meet the opponents of change with facts, with a resolute spirit, and with renewed dedication to the proposition that together we can change our nation’s energy, economic and environmental destiny.”

The complete text of Dinneen’s State of the Ethanol Industry Address can be found here (pdf).

You can also listen to Bob’s Speech here: Bob Dinneen Speech (24:00 MP3 file)

Opening Reception

The first day of the National Ethanol Conference was fantastic.

The opening reception was held outside just before sunset and it was a big party. According to RFA President, Bob Dinneen, this is the biggest ever with over 2,300 attending. It seemed like they all came out to the opening reception.

A lot of business is discussed in activities just like this. Besides the seminars, sessions and break out sessions which start tomorrow the Conference provides a great opportunity to network with others in the business.

Visiting With Jack Youngblood

NFL Hall of Famer Jack Youngblood is on hand with us here today at the golf tournament. He welcomed everyone out at the start of the event.

Jack played with the Rams in 5 NFC Championship games and in Super Bowl XIV. During a first round game in that Super Bowl year he suffered a fractured left fibula but got fitted with a plastic brace and played every defensive down in the NFC title game and the Super Bowl. He’s a tough guy but very friendly. Today he’s out on hole number 2 helping teams out since he takes a drive and they can use his if needed.

I spoke to Jack in between groups on his hole.

He says that here in Florida they’ve had their hand in the ethanol business for several years. He’s really pleased to see the enthusiasm on the part of the people involved in the industry and is looking forward to seeing what’s going on in the business here at the Conference.

Jack wants consumers to know that ethanol is a renewable resource that can take us in the direction we want to go. As he puts it, when it comes to fuel, “we want to grow our own.” He thinks it’s the most common sense approach to relieving our dependence on foreign oil that there is.

You can listen to my interview with Jack here: Jack Youngblood Interview (1:00 MP3 file)