Mike Pence

While support for ethanol was an issue in the Indiana  primary race for US Senate, it will not be an issue in the governor’s race.  Both John Gregg and Mike Pence are strong supporters of ethanol and renewable energy. John Gregg recently told an Indiana ethanol meeting, “I think ethanol and biofuels are a win-win for our state.”   Mike Pence told that same meeting he also strongly supports ethanol and renewable energy, “I believe ethanol is an important part of Indiana’s future.  I believe low cost energy in Indiana is an essential part of our ability to lead the nation in economic development and reform.”

John Gregg

Gregg said Indiana must move ahead with its own energy policy since Washington has not come up with one yet, “Since, as a nation, we have not come up with an energy policy, it is imperative that we in Indiana do what we can.”  He said that policy should include ethanol, renewable energy, clean coal, methane, natural gas, and even wind and solar.   Pence also favors an energy policy that encompasses a variety of energy sources but should also include consumer choice, “I am really someone who believes that we should work to expand consumer choices as the driving force in every part of our economy including ethanol.”  He added that expanding the availability of ethanol at the pump is a way to reduce our nation’s dependence on imported oil.

Here is the complete presentation by both candidates.

John Gregg

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Mike Pence

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The National Corn Growers Association is taking a page out of the Iowa Renewable Fuels Association Fuel the Future video competition to launch their own video contest called Ethanol Rocks. NCGA is looking for video entries that promote the advantages ethanol brings to American consumers during a year when those consumers will begin to see a 15 percent blend of the fuel at the pump.

Chad Willis, chairman of NCGA’s Ethanol Committee told HAT the contest should be a good way to engage the nation’s youth in the discussion about ethanol’s benefits.

“Ethanol over the last few years has had some negative publicity and we know it doesn’t get taught in the schools. People are so far removed from the farm anymore and this is a way to engage students. They’re very creative and everybody is connected on the internet nowadays so we just wanted to tap into the youth and their creativity.”

Video submissions are expected to help demonstrate how ethanol is better for the environment, helps lessen the need for foreign oil and keeps the cost of gasoline down.

“Oh it most definitely does,” Willis said. “There was a study out of Iowa State last year that said ethanol reduces the price of wholesale gasoline by about 89 cents a gallon. That wasn’t us coming up with those figures. That was Iowa State University, so I know that it is a very economical means to help lower the gas prices in the U.S.

Ethanol Rocks first place prize money of $1,500 will be awarded in both high school and college student categories in addition to $500 second place awards for both levels. Willis said distribution of Ethanol Rocks video contest application and rules packets online and to FFA chapters and members of the National Science Teachers Association has begun. The contest is looking for short videos (2 minutes or less) from active high school and college students from all scholastic backgrounds and majors, and entries can be submitted by individuals, groups or organizations. Judging will be based on criteria such as creativity, impact and general appeal.

Entry deadline is 5 p.m. CST Monday, October 15.

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Willis, from just west of Minneapolis in the town of Willmar, said maintaining the national RFS2 is one item high on the priority list of the NCGA Ethanol Committee this year.

“Other things we’re still very active in are the blender pump promotion and talking about flex fuel vehicles being able to utilize the higher blends. One other thing coming up fast is keeping an eye on cellulosic ethanol. They’re starting to break ground on plants also, so there will be more ethanol coming in to the marketplace, not just corn ethanol.”

Hear the full HAT interview:

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American Farm Bureau is reporting another rise in the price of groceries across the country, this time a 7 percent jump in first quarter 2012 versus the final quarter of last year. Non-scientific data compiled by state farm bureaus is fed into the national survey, and Indiana also showed a rise.

“Most of the items that increased in price and certainly the largest increases came from the meat and dairy sector,” said Kathleen Dutro with Indiana Farm Bureau. “Our two biggest increases were for sliced deli ham and for shredded cheese. Most of the increase actually came from those two items, but a number of other meat items showed at least small increases.”

The Market Basket survey has Indiana prices up $1.55 for 16 items to a record total of $51.15. And the reason meat and dairy are higher?

“Generally strong demand and tight supplies according to the American Farm Bureau, and that’s kind of a carryover from 2011. The agriculture department data shows that retail meat prices peaked sometime in the first quarter and wholesale prices have started to decline, so we’re hoping that means the next survey will show a more general decrease in meat and dairy prices.”

Grocery prices have increased gradually over time, but the share of the average food dollar that America’s farm and ranch families receive is about 14 percent, according to USDA. The remaining nearly 86 percent is called the marketing share and includes everything else that is part of the food chain including processing and transportation.

Dutro says the gap in those numbers is widening as the farm share, “has been on the decrease for almost forever. It’s kind of flattened out a little in the last ten years of so, but it’s still showing a general decrease in the farm share with the marketing share showing a gradual increase.”

USDA’s Economic Research Service has an online app that graphically shows the historic food dollar breakout.

Nationally 64 shoppers contributed to the survey and 23 of those are Hoosiers.

According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world.

In the Indiana survey sliced deli ham increased by 66 cents to $5.68 per pound, while shredded cheese rose by 62 cents to $4.70/pound. Other increases in the meat/dairy sector include ground chuck; which rose by 24 cents to $3.18/pound; boneless chicken breasts, up 23 cents to $3.13; and bacon, which rose by 6 cents to $4.07/ pound.

Other items that increased in price were potatoes, up by 28 cents per 5 pounds to $2.93; bagged salad mix, up 24 cents per pound to $2.42; 5 pounds of flour, up 17 cents to $2.68; a 20-ounce loaf of white bread, up 11 cents to $1.60; and 10-ounce box of cereal, up 2 cents to $3.10.

The largest decreases were for vegetable oil, which dropped by 72 cents to $3.33 for a 32-ounce bottle, and eggs, which dropped by 19 cents per dozen to $1.71.

Also showing decreases were a half-gallon of orange juice, down 8 cents to $3.15; sirloin tip roast, down 5 cents/pound to $4.36; a gallon of whole milk, down 3 cents to $3.24; and apples, down 1 cent to $1.87 per pound.

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Congressman Mike Pence

As Indiana farmers rush to finish planting, the House Ag Committee will begin Farm Bill hearings this week in Washington. One Indiana Congressman expects the House to build on the reforms called for in the Senate Farm Bill.  Indiana Congressmen Mike Pence, a former member of the House Ag Committee, has been through several Farm Bill debates and told HAT the House will likely propose widespread reforms in US farm policy, “We have some good prosperity in agriculture, especially here in Indiana. If there ever was a time to introduce more market-based reforms, this the time.”

The Senate is proposing to cut $23 billion from farm program spending. Pence feels the House may cut even more but without hurting key farm programs, like research and conservation, “There is plenty of room in every sector of government to find the kind of savings to change the financial direction of the country.”  He feels the Senate Farm Bill is a good start, but is confident the House can “sharpen our pencils when it comes to the House version of the Farm Bill, without compromising out commitment to agriculture.”  Pence said he was confident in the leadership of Indiana Congressman Marlin Stutzman, one of only a few farmers that serve on the Ag Committee.

House Ag Committee Chairman Frank Lucas has stated the House will make significant changes to the commodity section of the Farm Bill, “I am disappointed by the Senate bill’s commodity title because it does not work for all of agriculture. It fails to provide producers a viable safety net and instead locks in profit for a couple of commodities. I have made it clear that my chief priority is making certain that the commodity title is equitable and provides a safety net for all covered commodities and all regions of the country. A shallow loss program is not a safety net. It does not provide protection against price declines over multiple years and it does not work for all commodities.” The House hearing set for Tuesday will cover the nutrition and horticulture sections of the bill, including specialty crops. The May 10 hearing will deal with USDA operations and farm credit programs.

Many have said passing a Farm Bill in an election year will be impossible, but Pence feels there is enough bipartisan support for agriculture to get a bill to the House floor, “I think there is a way forward.  I think people understand how critically important agriculture is to our nation’s health and economy. I feel we have an obligation to find things we can agree on.”

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