Sep 4, 2012
blog

RFS Being Challenged by Drought

The 2012 drought has brought the Renewable Fuels Standard (RFS) into the forefront. The RFS regulations are managed by the EPA, and those regulations are quite complicated. The RFS requires that minimum levels of renewable biofuels must be used to blend gasoline in the U.S. Corn-based ethanol is the primary fuel ingredient that is used to meet the RFS requirement. Currently ethanol makes up about 10% of the U.S. fuel supply, with just over 13 billion gallons of ethanol/year being produced in the U.S....More
Sep 4, 2012
blog

Record Net Farm Income in 2012

USDA’s Economic Research Service released its 2012 farm income estimates, which project U.S. net farm income will total $122.2 billion in 2012 – up 3.4% from last year – and net cash income, $139 billion, both record nominal values. Inflation-adjusted net farm income is the second highest since 1970. The expected increase in income reflects large price-led gains in corn and soybean receipts in addition to crop insurance indemnities. Crop farm gains should be more than enough to offset livestock farmers' higher feed expenses and a decline in milk sales, the economists say....More

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