Jay Wolf
NCBA Board Member
Nebraska Cattlemen - President
Corn price
Feeder Calf
price
Grain Farmers:
after years of depressed
prices, finally some significant profit
opportunities
Ranchers:
a record drop in calf prices
since last summer
Cattle Feeders:
a record jump in feed costs since last
summer left most badly in the red. Feeders can utilize ddgs,
especially if near ethanol production:
Advantage to corn belt feeders over So. Plains
NCBA - Ethanol Education
The livestock industry needs a huge
educational effort to help producers,
especially small and mid sized
operations, to adjust to new economies
that have resulted when corn is priced as
energy instead of food and feed.
Livestock Research Needs
related to Grain Based Ethanol
Making the Ethanol Industry a WIN WIN
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How can cow calf operators utilize ddgs
How to effectively store ddgs
Effect of high % ddgs diets on carcass quality and taste
How can increasing amounts of ddgs be utilized in
livestock diets; limiters include sulfur, fats and phos
 Help producers deal with the environmental effects of
high phosphorus ddg diets
 Are use of antibiotics in ethanol production an issue to
feeders of ddgs?
 Many, many, more
Where can we get Research $
 The Federal Gov. needs to redirect some
of the cellulosic research funds to ethanol
issues that effect livestock producers
 The states need to support our Land
Grant universities research and
extension missions
NCBA - Renewable Fuels
WHEREAS, NCBA supports our nation’s commitment to reduce dependence
on foreign energy, and supports efforts to develop forms of renewable energy,
and
WHEREAS, this commitment is creating opportunities and challenges for our
nation’s agricultural producers, and
WHEREAS, past federal support of the renewable fuel industry has been
necessary to encourage initial development of basic production technologies, and
WHEREAS, NCBA believes in a market-based economy and there is concern
among cattlemen about the influence of renewable energy policy on the
availability and price of feedgrains and other feedstuffs,
THEREFORE BE IT RESOLVED, NCBA supports transition to a market based
approach for the production and usage of ethanol produced from livestock
feedstuffs.
BE IT FURTHER RESOLVED, NCBA supports the sunsetting of the existing
blending tax credit (VEETC) and the ethanol import tariffs as scheduled and not
allowing for renewal in their current form.
BE IT FURTHER RESOLVED, NCBA supports input segmentation of the
Renewable Fuel Standard (RFS) and encourages the increase of the cellulosic
segment of the RFS while holding the grain based portion level.
BE IT FURTHER RESOLVED, NCBA supports research and development of
renewable fuels that may provide additional benefits for the livestock industry.
Federal Tax Credits
NCBA supports transition to a market
based approach for the production and
usage of ethanol produced from livestock
feedstuffs.
NCBA supports the sunsetting of the
existing blending tax credit (VEETC) and
the ethanol import tariffs as scheduled
and not allowing for renewal in their
current form.
Source: The Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed and Livestock Sectors: A Preliminary Assessment
CARD Briefing Paper 06-BP 49; Iowa State University; Elobeid, Tokgoz, Hayes, Babcock, and Hart
Renewable Fuels Standard
NCBA supports input segmentation of the
Renewable Fuel Standard (RFS) and
encourages the increase of the cellulosic
segment of the RFS while holding the
grain based portion level.
Cellulosic ?
Betting on the come
U.S. Energy Secretary Samuel Bodman at the
World Economic Forum in Davos, Switzerland
 The U.S. “will need to have more imports of ethanol”
 He does not see a 51-cent/gallon subsidy to U.S.
blelnders remaining in place beyond 2010 or an import
tariff of 54 cents/gallon on ethanol beyond 2009.
 ”The idea is that at some point in the future all these
technologies need to stand the test of the free market.”
 Asked whether he would consider waiving the new
ethanol mandate if price pressure made ethanol
severely uneconomic, Bodman said that it would be
waived only if the push toward more ethanol use failed.
A synergistic relationship!