Spotlight on Washington

Photo: The United CooP Spotlight on Washington U.S. farmers and former president Bill Clinton stole the star this year at the US Department of Agriculture's (USDA) Agri-Food Outlook Conference in Washington. Behind the scenes, it is murmur that dairy farmers are planning to produce more energy on the farm to lower their production costs and remain competitive in the international market. And there is also a "green diploma" for producers... China is outperforming Canada and... worry China will become the first customer in the U.S. this year, relegating Canada to second place.

The Middle Empire represents a large share of the unprecedented income expected for US farmers, which is US$341 billion, an increase of US$27 billion over 2010 and 57 billion over 2009. China already imports 60% of the world's soybeans and 20% of the world's vegetable oil. But for the first time in 2009, "China has moved from self-sufficiency to net corn importer," says Rebecca Bratter, Director of Business Development of the US Grains Council (UGC), an organization that brings together the largest US grain exporters. (China's demand is stimulated, among other things, by pig production, which is moving from the artisanal stage to the integrated large livestock sector.) While Bratter was enthusiastic about the Chinese exponential market, she appeared very concerned about the impact of a mas - live demand for the small yellow American grain.

A dossier by Nicolas Mesly Farmers, heroes of America! The new American heroes are certainly not Wall Street bankers or the computer geniuses of Silicon Valley. They are Midwest farmers, driving their combine harvesters. Sent into an unprecedented budget gulf since the economic crisis of 1929, American farmers are the only ones to respond to President Obama's call, who wants to double the exports of the world's first agricultural and military power in five years.

The USDA chief economist, Joseph W. Glauber, predicts that US agricultural exports will reach US$135.5 billion in 2011 – a record – and that imports will reach US$88 billion. The trade surplus, US$47.5 billion, is the highest since the early 1980s. This would help to re-float Washington's empty chests and re-invigorate a moribund economy.

Every billion dollars of agricultural exports generated - would re-introduce between 8,000 and 9,000 jobs. 38 Agricultural Co-operators in May-June 2011 USDA file ★ Photo: GooGThe iMaGes C is that the new Chinese demand for US corn adds to the US industry's demand for ethanol maize. The latter will capture 37% of the US crop, pulling up not only corn prices, but also wheat and soybean prices, while the stocks of these cereals are at the lowest. The Chinese situation could therefore trigger a further surge in international commodity prices, at a time when they are higher than in 2008, and cause further hunger riots in some 40 countries.

Despite this risky environment, our southern neighbours will continue to "back up on the access - lator," said Agriculture Secretary Tom Vilsack. "We can help governments avoid the mistakes that have caused this crisis," he said. Bill Clinton revives the "biofuels for food" debate. "We are working internationally with our agencies to help governments avoid the mistakes that have caused this crisis."

Underlining the importance of the United States' weaning of oil from an unstable Middle East – oil imports make up more than half of the American trade deficit – the guest speaker, Bill Clinton, nevertheless issued a polite warning to the food gratin that came to hear: "If you produce more biofuels, you produce less food. That means that the price of food will be higher and we will have more hunger riots." The former U.S. president urged the government to find a fair balance by maximizing "the supply of good food at affordable prices, our effort towards energy independence and our commitment to reducing the threat of climate change and the destruction of natural resources."

In his view, these objectives should be studied and analysed every five years within the next 20 years, as they are contradictory and controversial. Producer Concern In response to the fear of American inter-national aid that could support future competitors, particularly in Africa, both Secretary Vilsack and former President Clinton have been anxious to reassure American food producers."I can tell you that the soybean producer we are helping on her small plot in Malawi, through access to better seeds and fertilizers, will not compete with you.

But with the $800 income from this harvest, she can send her 13-year-old son to school for the first time in her life. This help simply helps improve the living conditions and future of this small corner of the Earth," said Bill Clinton. "Since 2001, he has been leading a foundation that bears his name and supports many agricultural projects, especially in Rwanda and Haiti. Moreover, the huge technological gap between African and American producers is not close to being filled, the first planting of seeds on the fly, the second planting of high tech seeds using GPS tractors, recalls Secretary Vilsack.

Clinton and Vilsack estimate that the large demand for agricultural commodities due to an increase in world population from 6.5 billion to 9 billion people in 2050, combined with the emergence of middle classes and new food habits, will strengthen the presence of American farmers in international markets.

And while rural America accounts for just 16% of the country's population, it accounts for 44% of the army's workforce."It's this American rural youth who risks their lives in Afghanistan and Iraq so that we can live in a safer world," he said. "There does not stop the war effort of American agricultural producers or their offspring. In order to reduce their mons - a severe budget deficit, Washington plans to reduce insurance programs by $4 billion this year. u The guest speaker, Bill Clinton: "If you produce more biofuels, you produce less food.

This means that the price of food will be higher and that we will have more hunger riots." 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2005/06 2006/07 2007/08 2009/10 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Source: US Grains Council China: corn import (million metric tonnes) Forecast in 5 years Current situation Ethanol: water in gas Criticisms are coming from all sides to the ethanol industry, including within producers.

The large integrators of poultry and pigs attribute the high cost of maize to this subven- tion biofuel, which has almost doubled in one year. In Washington, many observers even believe that the ethanol industry will die on the show. And that the US energy security and dependence law could be amended accordingly. This law, passed in 2007, is clear: Washington wants to reduce its imports of black gold from the Middle East powder mill by 20%.

By 2022, the production of ethanol has increased to 136 billion litres, of which 57 billion litres have to come from maize ethanol. Midwest grain farmers have already almost fulfilled their share of the contract: they produce more than 51 billion litres annually. But what about the 79 billion litres of green gasoline that are missing to fill the volume imposed by this law?

Second-generation ethanol is referred to as second-generation ethanol, which is made from wheat straw or corn stems, for example, and even third-generation ethanol, which is made from algae. According to a USDA study (June 2010), to make this second-generation ethanol, 527 biorefineries would have to be built with a capacity of 152 million litres each at an average cost of just over US$300 million per unit. A total investment of almost US$168 billion! The big deal is that even if the technology is starting to be developed to produce this cellulosic gasoline, not an investor wants to venture into the field.

Two major unknowns are holding back Wall Street financiers' ardour: the future price of oil and the lack of a guaranteed source of biomass supply."The price of oil would have to be US$120 and more for cellulosic ethanol to compete in the market without state intervention. But no one can predict the price of oil," says Wally Tyner, an expert at Purdue University. "According to this professor, oil prices will range from US$51 to US$210 per barrel by 2035.

As for supply, no one understands the exact volume of biomass that could be converted into cellulosic ethanol, but it is agreed that there would be enough to produce the volume legally decreed. However, not one producer is inclined to grow energy crops – such as the built-up panic or miscanthus – without having a minimum price of $100 per tonne and a well-established insurance system. This is not yet the case. To eliminate these two major uncertainties and create a market favourable to the development of cellulosic ethanol, Professor Tyner suggests that Washington or Pentagon make long-term tenders for the purchase of the volume of ethanol required by the U.S. Energy Security and Independence Act 2006 2008 2010 2012 2014 2016 2018 2020 2022 Second-generation cellulosic biofuel (in billions of litres) Third-generation biofuel First-generation biofuel (ethanol corn) Old-viable-energy standards for the US-based energy sector, which is the first time that the energy sector has been established.

This is one of the findings of a study by the Department of Agriculture's National Statistics Service (USDA) of 8569 companies. Iron - producing its own energy saved on average US$2406 in 2009. California has the largest number of energy-producing companies – 20% of the United States – followed by Texas, Hawaii, Colorado and Oregon. (Source: 2009 On-Farm Energy Production – www.agcensus.usda.gov) this biofuel. (The US Army would buy half of the oil imported into the United States.) This does not prevent Mr.

Tyner called this line into question: "We have national goals for food production for humans and animals, biofuel production and biodiversity protection. Do we have enough land to achieve all this?" "The ethanol industry has many enemies. But don't get too fast!" warned seasoned agricultural journalist and guest speaker Jerry Hagstrom.

Despite the controversy, the biofuel lobby convinced US parliamentarians to renew their millionaire subsidies in 2011 and a protectionist tariff against Brazilian ethanol, which is produced at a lower price with sugar cane. Another big victory: the very powerful US Environmental Protection Agency (EPA) gave its green light last December that the percentage of ethanol in gasoline sold at the pump will increase from 10% to 15% (E10 to E15), which will increase the demand for this biofuel by about four billion gallons (15 billion litres).

It remains to be seen whether this ethanol will be made from corn or cellulose. A dairy producer lights up Washington "My cows don't only give top quality milk, they are also a great source of energy on four legs!" explains Luke Brubaker, Pennsylvania dairy farmer, in front of a parquet of 300 people in suit-dressed braided by his technological advances. His 600-hectare farm, which he operates with his two sons, Mike and Tony, was named "2011 Innovative Farm of the Year" by the International Dairy Food Association (IDFA).

The manure of 900 cows in production, 700 animals from the replacement herd and 90,000 broilers is transported to a digger - methane generator, which produces 200 kilowatt hours (kWh) of electricity, a volume of energy that can supply 150 homes. But only 3% of the energy generated is used on the farm, for example, to light up the plants or cool the milk. Most of the current is sold to the local company Pennsylvania Power and Light (equivalent to a mini-Hydro-Québec).

Built for a cost of US$1.225 million, with a USDA loan, the digester was re-wrapped in three years. The breeder also recovers nearly 10,000 litres of table waste from the college, restaurants and businesses in his village, Mount Joy, every day, which would otherwise be lost to landfill. "I think this waste is food watts. As a company, we would gain from transforming the tons of food lost in the food service into energy," he says.

The amount of methane recovered from Brubaker Farm for energy production, which would have been volatile in the atmosphere if it had not been recovered, is sold to a broker in the form of carbon credits.May-JuiN 2011: Agricultural Co-operator 41 ★ ★ Luke Brubaker, Pennsylvania dairy farmer, built a methane digester that, thanks to the manure on his farm, produces 200 kWh of electricity. Most of this energy is sold to the local company Pennsylvania Power and Light. Photo: The Federal CooP The recovery of table waste from Brubaker Farm is also part of a good neighbourly policy that has its advantages.

"The noise of trucks coming to the farm could be disturbing, but we are sorry, because we are well integrated into the community and the villagers see us as producers of green electricity," says Mr. In addition, the producer separates the liquid and solid portions of the manure produced by the skin hole, a process that reduces odours by 90%. "And he pays close attention to the application times so as not to bother the neighbors.

Much of the solid manure treated in the digester, which eliminates 99% of the pathogens, is used as litter for animals. Another feature of the Brubaker farm is that the roof of the heifer barn, built in the fall of 2009, is covered with solar panels. The system generates 150 kWh. However, the breeder is not certain that he would have invested US$750,000 in this technology without US state aid.

"I would not hesitate to invest alone in a methane digester, but solar is another story," he explains. "With a grant from the State of Pennsylvania, the purchase of the solar system is reimbursed in 7 years instead of 20 years. Brubaker considers this period to be "too long." Just like the carbon credits generated by methane recovery, solar electricity generation allows the agricultural company to sell renewable energy sources on the market.

But the resulting revenues are not sufficient to quickly amortize this investment. Bruce Knight, of the company Srategic Conservation Solutions of Washington, D.C., the example of the Brubaker farm will make small. The consultant says that more than 1300 methane digesters will be installed on the American dairy farms within the next five years."Reducing energy costs on the farm is the nerve of war to remain competitive," he says.

Brubaker, he was given a healthy applause salve. His company shines like a lighter flame in a large concert hall. She reassures America in its quest for energy independence while responding to President Obama's mantra: "Yes, we can!" (yes, we can!). Soon a "green" degree for American farmers Nearly 40% of agriculture in the United States is practised on leased land.

And in some states, the majority of these lands are owned by older ladies, who are very focused on environmental protection."The first concern of these owners is not the rent from the sale of grain, for example. It is to have a cultivated land with good practices, respectful of the environment," says Peggy Petrzelka, Associate Professor at the University of Utah and author of a study on the attitudes and conservation habits of owners absent in states bordering the Great Lakes, whose border is shared with Canada.

Agriculture on leased land, where the owner no longer lives on the farm, is a ten - dance that is becoming more prevalent in the United States, especially in the Midwest, the country's grain attic, where 50% of corn crops, 60% of soybeans, 55% of winter wheat grown on leased land are grown on leased land, but generally, conservation practices, such as erosion control, riparian banding and rainwater management, are lacking, with less than 50% of these environmental measures being applied on leased land.

Where is the question for the owners concerned: should my tenant have a "green" degree of good farming practice? This idea is going to the heart of America."The idea of a green certification program is too often a big John Deere tractor. We have to change this lie - and that is why we have to change the way we are.

We don't want to certify the crops, as organic farming does, for example. We want to certify the producer!" explains Jamie Ridgely, a producer of Iowa. She founded with her husband the company Agren, a name that combines the first letters of the words agriculture and environment. According to Mrs Ridgely, 75% of the landowners in Iowa are receptive to the idea that their tenant has such a degree.

However, there are still many details to be identified before such a certificate is issued, such as: Who will administer it? What will be the eligibility criteria? What will be the quality controls? 42 The Agricultural Co-operator, May-June 2011 USDA ★ The idea of such a diploma is not new. It was proposed by the US government at the time of the 2003 Farm Bill.

"It didn't work because the idea came from the government, this time the pressure comes from the private sector," says the producer. "Michael Duffy, a soil science expert at the University of Iowa, says the erosion caused by bad farming practices affects three major groups. The first of these groups is made up of the producers themselves, the leaching of fertilizers, seeds, and the loss of organic water retentative matter.

For 2003, the professor estimates losses due to water erosion and wind erosion at 9.6 tons per hectare, an average financial loss of US$64 per hectare. The second loser is the general company. Erosion results in high costs, including for water treatment plants. But above all, massive soil erosion and the leaching of nitrogen fertilizers from the Midwest and transported through Mississippi generate the infamous "dead zone" of the Gulf of Mexico.

The pollution of these waters causes billions of dollars of losses in the fisheries sector, including shrimp fishing. Finally, the third major loser because of soil erosion is the owners of land whose value decreases with the downgrading of the soil."In Iowa, the value of land being eroded by erosion decreases by 2 to 17% per hectare," concludes Professor Sufficient reason, according to the professor, for owners to consider leasing their land to "graduate" producers.

May-Juin 2011