Joining The Movement

To say that ag retailers are anxiously awaiting the development of the biofuels movement is a huge understatement. Following what looks to be a down year in 2006 in overall input revenues, most CropLife® 100 retailers are positively positive about what biofuels adoption and growth will mean for their operations in 2007 and beyond.

“Ethanol expansion increasing corn acres will help us going forward,” says Scott Hier, director of agronomy for South Dakota Wheat Growers, Aberdeen, SD.

Based upon figures compiled by the National Corn Growers Association and the Renewable Fuels Association, the nation’s 105 ethanol plants consumed more than 1.5 billion bushels of corn in 2005, approximately 15% of the total amount produced. Total production capacity of these plants is 5 billion gallons annually. If the number of new plants being built pushes this figure to near 8 million gallons in 2007 as expected, projections from USDA and independent analysts indicate that growers will

need to add 3.4 million to 4 million acres of corn to U.S. acreage totals to meet ethanol demand and still maintain the present corn utilization split (see graph on p. 26). At least one former USDA economist thinks this figure will need to be in the 9- to 10-million acre range. By the end of the decade, it is estimated that 30% of the U.S. corn harvest will be used to produce ethanol.

Getting Directly Involved

A few CropLife 100 retailers are taking a more direct approach when it comes to the push for ethanol. Several have opened their own ethanol facilities, and more are on the way. For example, CropLife 100 retailer Aurora Cooperative, Aurora, NE, has signed a letter of intent with Aventine Re­newable Energy Holdings, Inc., to build a new ethanol plant 1 mile west of the cooperative’s hometown. This agreement calls for Aurora Coop­erative to be the exclusive grain supplier for the plant and for a state-of-the-art grain handling facility to be built to fill this role.

For other CropLife 100 retailers, the expanded use of biofuels in the market is offering the opportunity to reduce their own energy and fossil fuel costs. As established in last month’s CropLife 100 story, 60% of the retailers polled in our 2006 survey indicated that higher fuel cost was the biggest challenge facing their profitability going into the 2007 growing season (see “Adding Fuel To The Fire, October 2006, CropLife). In a separate question on the survey, CropLife asked retailers if they — in light of uncertain fuel prices — were looking at biofuels as an alternative source of energy for their equipment. Perhaps somewhat surprisingly, only 50% said they were considering the idea. In most cases, these biofuel early adopters tend to be the smaller- to mid-sized retailers in terms of sales (ranging from $10 million to $65 million) and not the larger retail organizations.

One CropLife 100 retailer that has actively embraced biofuels in its operation is Holyoke Cooperative Association, Holyoke, CO. According to Roger Gordon, agronomy manager for the retailer, Holyoke Cooperative started using an ethanol blend in some of its equipment earlier this year. The company also uses a 5% biodiesel blend (B5) in its pick-up trucks.

Of course, the biggest step in the biofuels direction for Holyoke Coop­era­tive, says Gordon, took place when the retailer began using a 20% biodiesel blend (B20) in its delivery trucks and off-road application equipment in the spring. “Like other retailers, we were really struggling with higher fuel prices,” he says. “After doing some heavy research looking at alternatives, we decided that B20 was the way the go with our equipment.”

At first, he adds, there was some difficulty adapting Holyoke Cooperative’s sprayers to B20 because the mix ended up plugging the existing fuel filters. However, once the company installed newer, more flexible fuel filters into its units, the sprayer fleet has run without incident. “Using B20 instead of regular diesel hasn’t really added any more acres to the per gallon operating time, but our maintenance guys have said that the B20 seems to clean out unwanted deposits in the fuel system,” says Gordon. “That’s added quite a bit of efficiency for our units. Even better, we are using a renewable, American grown product instead of sending our money overseas.”

Leave a Reply

CropLife 100 Stories

Andersons Retail Store
CropLife 100The Andersons To Close All Retail Stores; Shutdown Doesn’t Affect Plant Nutrient Group
January 16, 2017
In a stunning announcement to the Toledo area, The Andersons Inc. said on Sunday that it would close its two Read More
Olson Ag Enterprise
CropLife 100Wilbur-Ellis Acquires Nebraska Seed Retailer
January 13, 2017
Wilbur-Ellis’ Agribusiness, a recognized leader in precision agriculture technology and the distribution and marketing of plant protection, seed and nutritional Read More
Jeff Troike Ceres Solutions
CropLife 100Troike Named CEO Of Newly Formed Ceres Solutions Cooperative
January 6, 2017
Jeff Troike has been named President and CEO of the newly formed agribusiness known as Ceres Solutions Cooperative. Ceres Solutions Read More
CropLife 100GROWMARK Acquires L.T. & E., Inc.
January 6, 2017
GROWMARK acquired the assets of L.T. & E., Inc., a family owned and operated tank and truck manufacturer and repair Read More
Trending Articles
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Precision AgTrimble Debuts End-to-End FMIS Platform
November 28, 2016
October’s inaugural PrecisionAg Vision Conference left this author with many thoughts and things to ponder in the coming months. Probably Read More
CHS Primeland
CropLife 100The 2016 CropLife 100 Report: Reviewing The Many Bulls And Bears Impacting This Year’s Marketplace
November 28, 2016
For virtually all of 2016, the nation was wholly focused on the big Presidential election. Some folks aligned themselves with Read More
Monsanto sign
Crop InputsMissouri Governor Meets With Bayer CEO To Discuss Monsanto Merger
November 21, 2016
Missouri Gov. Jay Nixon visited Bayer AG global headquarters in Leverkusen, Germany, on November 18 to discuss the proposed Bayer-Monsanto Read More
Latest News
Soybean field
Crop InputsNufarm Teams Up With John Deere Financial
January 19, 2017
Nufarm and John Deere Financial have teamed up to help farmers grow a better tomorrow. This program helps make purchases Read More
Sonny Perdue
LegislationTrump Formally Picks Perdue As Agriculture Secretary
January 19, 2017
U.S. President-elect Donald Trump officially announced Sonny Perdue as his choice for secretary of agriculture on Thursday, selecting a former Read More
ManagementPresident Trump, Wisconsin Review, and a Dow-DuPont Upd…
January 18, 2017
Editors Paul Schrimpf and Eric Sfiligoj reflect on a new administration, a recent winter show, and crop protection company mergers. Read More
Industry NewsBayer, MS Technologies Get China Approval For Balance G…
January 18, 2017
MS Technologies and Bayer have received import approval from China for Balance GT soybeans. The new Balance GT Soybean Performance Read More
Werner Baumann, Bayer AG, and Hugh Grant, Monsanto
Industry NewsReport: Monsanto, Bayer CEOs Among Latest to Make Trump…
January 18, 2017
The chief executive officers of German chemical giant Bayer AG and U.S. seed behemoth Monsanto, Werner Baumann and Hugh Grant, Read More
Giant Ragweed
HerbicidesStudy: Focusing On Weed Seedbank Can Help Manage Herbic…
January 18, 2017
Researchers writing in the latest issue of the journal Weed Science provide important insights on the control of herbicide-resistant giant Read More
Management3 Financial Trends To Watch In Agriculture
January 17, 2017
I recently had the opportunity to attend a meeting of credit managers for Midwest ag supply and input companies, in part Read More
Andersons Retail Store
CropLife 100The Andersons To Close All Retail Stores; Shutdown Does…
January 16, 2017
In a stunning announcement to the Toledo area, The Andersons Inc. said on Sunday that it would close its two Read More
Trimble TMX-2050 In-Cab Display
Eric SfiligojPrecision To Lead Agriculture In 2017?
January 16, 2017
Another new year is upon us! And I’m certain I speak for many in the agricultural world when I say Read More
Corn
Eric SfiligojThe Mood From Madison? In A Holding Pattern
January 16, 2017
Last week, I had the chance to attend the annual Wisconsin AgriBusiness Classic show in Madison, WI. It’s been a Read More
Syngenta Sign
Crop InputsAccenture Helps Syngenta Transform Its Global Logistics
January 13, 2017
Syngenta, a leading agriculture company, has collaborated with Accenture to design and implement a new digital logistics operating model across Read More
Fall Creek Seth Harden The Nature Conservancy
StewardshipLocal Farmers’ Watershed Initiative: Continuous Improve…
January 13, 2017
The goal in the Big Pine Watershed Project is to more intentionally do what local farmers and responsible ag retailers Read More
HerbicidesEPA Expands Enlist Duo Herbicide Registration To 34 Sta…
January 13, 2017
The U.S. EPA has expanded the geography for application of Enlist Duo herbicide from 15 to 34 states. This means Read More
Olson Ag Enterprise
CropLife 100Wilbur-Ellis Acquires Nebraska Seed Retailer
January 13, 2017
Wilbur-Ellis’ Agribusiness, a recognized leader in precision agriculture technology and the distribution and marketing of plant protection, seed and nutritional Read More
ManagementDeere-Precision Planting Update and the Ag Secretary Wa…
January 12, 2017
Editors Paul Schrimpf and Eric Sfiligoj provide the latest on the court date for John Deere/Precision Planting and the quest Read More
Monsanto sign
Seed/BiotechMonsanto, NRGene Form Agreement For Big Data Genomic An…
January 12, 2017
Monsanto Co. and NRGene have announced that the companies have reached a non-exclusive, multi-year global licensing agreement on NRGene’s genome-analysis Read More
AGCO Custom applicator
SprayersAGCO, Asmark Institute To Offer Training For Beginning …
January 11, 2017
AGCO Corp. and the Asmark Institute are collaborating to offer a new training program dedicated to educating and developing custom Read More
ManagementAg Land Values In Limbo In 2017
January 10, 2017
Several factors will come into play in 2017 that will determine the direction of land values. Randy Dickhut, senior vice Read More