Jay WolfJay Wolf

NCBA Board MemberNCBA Board Member

Nebraska Cattlemen - PresidentNebraska Cattlemen - President

Corn priceCorn price

Feeder Calf Feeder Calf priceprice

Grain Farmers: Grain Farmers: after years of depressed after years of depressed prices, finally some significant profit prices, finally some significant profit opportunitiesopportunities

Ranchers: Ranchers: a record drop in calf prices a record drop in calf prices since last summersince last summer

Cattle FeedersCattle 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 EducationNCBA - Ethanol Education

The livestock industry needs a huge The livestock industry needs a huge educational effort to help producers, educational effort to help producers, especially small and mid sized especially small and mid sized operations, to adjust to new economies operations, to adjust to new economies that have resulted when corn is priced as that have resulted when corn is priced as energy instead of food and feed.energy instead of food and feed.

Livestock Research Needs Livestock Research Needs related to Grain Based Ethanolrelated to Grain Based Ethanol Making the Ethanol Industry a WIN WINMaking the Ethanol Industry a WIN WIN

How can cow calf operators utilize ddgsHow can cow calf operators utilize ddgs How to effectively store ddgsHow to effectively store ddgs Effect of high % ddgs diets on carcass quality and tasteEffect of high % ddgs diets on carcass quality and taste How can increasing amounts of ddgs be utilized in How can increasing amounts of ddgs be utilized in

livestock diets; limiters include sulfur, fats and phoslivestock diets; limiters include sulfur, fats and phos Help producers deal with the environmental effects of Help producers deal with the environmental effects of

high phosphorus ddg dietshigh phosphorus ddg diets Are use of antibiotics in ethanol production an issue to Are use of antibiotics in ethanol production an issue to

feeders of ddgs?feeders of ddgs? Many, many, moreMany, many, more

Where can we get Research $Where can we get Research $

The Federal Gov. needs to redirect some The Federal Gov. needs to redirect some of the cellulosic research funds to ethanol of the cellulosic research funds to ethanol issues that effect livestock producers issues that effect livestock producers

The states need to support our Land The states need to support our Land Grant universities research and Grant universities research and extension missionsextension missions

NCBA - Renewable FuelsNCBA - Renewable FuelsWHEREAS, NCBA supports our nation’s commitment to reduce dependence WHEREAS, NCBA supports our nation’s commitment to reduce dependence

on foreign energy, and supports efforts to develop forms of renewable energy, on foreign energy, and supports efforts to develop forms of renewable energy, andand

WHEREAS, this commitment is creating opportunities and challenges for our WHEREAS, this commitment is creating opportunities and challenges for our nation’s agricultural producers, andnation’s agricultural producers, and

WHEREAS, past federal support of the renewable fuel industry has been WHEREAS, past federal support of the renewable fuel industry has been necessary to encourage initial development of basic production technologies, andnecessary to encourage initial development of basic production technologies, and

WHEREAS, NCBA believes in a market-based economy and there is concern WHEREAS, NCBA believes in a market-based economy and there is concern among cattlemen about the influence of renewable energy policy on the among cattlemen about the influence of renewable energy policy on the availability and price of feedgrains and other feedstuffs,availability and price of feedgrains and other feedstuffs,

THEREFORE BE IT RESOLVED, NCBA supports transition to a market THEREFORE BE IT RESOLVED, NCBA supports transition to a market based approach for the production and usage of ethanol produced from livestock based approach for the production and usage of ethanol produced from livestock feedstuffs.feedstuffs.

BE IT FURTHER RESOLVED, NCBA supports the sunsetting of the existing BE IT FURTHER RESOLVED, NCBA supports the sunsetting of the existing blending tax credit (VEETC) and the ethanol import tariffs as scheduled and not blending tax credit (VEETC) and the ethanol import tariffs as scheduled and not allowing for renewal in their current form.allowing for renewal in their current form.

BE IT FURTHER RESOLVED, NCBA supports input segmentation of the BE IT FURTHER RESOLVED, NCBA supports input segmentation of the Renewable Fuel Standard (RFS) and encourages the increase of the cellulosic Renewable Fuel Standard (RFS) and encourages the increase of the cellulosic segment of the RFS while holding the grain based portion level.segment of the RFS while holding the grain based portion level.

BE IT FURTHER RESOLVED, NCBA supports research and development of BE IT FURTHER RESOLVED, NCBA supports research and development of renewable fuels that may provide additional benefits for the livestock industry.renewable fuels that may provide additional benefits for the livestock industry.

Federal Tax CreditsFederal Tax Credits

NCBA supports transition to a market NCBA supports transition to a market based approach for the production and based approach for the production and usage of ethanol produced from livestock usage of ethanol produced from livestock feedstuffs.feedstuffs.

NCBA supports the sunsetting of the NCBA supports the sunsetting of the existing blending tax credit (VEETC) and existing blending tax credit (VEETC) and the ethanol import tariffs as scheduled the ethanol import tariffs as scheduled and not allowing for renewal in their and not allowing for renewal in their current form.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 Renewable Fuels StandardStandard

NCBA supports input segmentation of the NCBA supports input segmentation of the Renewable Fuel Standard (RFS) and Renewable Fuel Standard (RFS) and encourages the increase of the cellulosic encourages the increase of the cellulosic segment of the RFS while holding the segment of the RFS while holding the grain based portion level.grain based portion level.

Cellulosic ?Cellulosic ? Betting on the comeBetting on the come

The U.S. “will need to have more imports of ethanol”The U.S. “will need to have more imports of ethanol”

He does not see a 51-cent/gallon subsidy to U.S. He does not see a 51-cent/gallon subsidy to U.S. blelnders remaining in place beyond 2010 or an import blelnders remaining in place beyond 2010 or an import tariff of 54 cents/gallon on ethanol beyond 2009.tariff of 54 cents/gallon on ethanol beyond 2009.

””The idea is that at some point in the future all these The idea is that at some point in the future all these technologies need to stand the test of the free market.”technologies need to stand the test of the free market.”

Asked whether he would consider waiving the new Asked whether he would consider waiving the new ethanol mandate if price pressure made ethanol ethanol mandate if price pressure made ethanol severely uneconomic, Bodman said that it would be severely uneconomic, Bodman said that it would be waived only if the push toward more ethanol use failed.waived only if the push toward more ethanol use failed.

U.S. Energy Secretary Samuel Bodman at the World U.S. Energy Secretary Samuel Bodman at the World Economic Forum in Davos, Switzerland Economic Forum in Davos, Switzerland

A synergistic A synergistic relationship!relationship!