Ag Opportunities Volume 18, Number 9 September 2007 Evaluating Some of the Alternate Fuels by Ed Browning Natural Resource Engineer Jasper County Robert W., a Jasper County beef producer, and I recently had a discussion about vehicles and fuel alternatives. The major question that evolved was this; is there a source that compares various fuels in terms of cost fuel economy—miles per gallon energy balance—does it take more to produce it than you get out of it? The answer to that question is that there does not appear to be a "one source fits all”, but rather several sources that can provide insight to comparisons of various alternative fuels. The majority of this article will be from cited sources rather than my own knowledge or opinion. Note that some of the sources may or may not be unbiased such as a land-grant university or government agency would be. I’ve included the websites so you can draw your own conclusions. David Pimentel, Cornell University, and Tad Patzek, University of California, Berkley, appear to have led the charge against ethanol and biodiesel as viable alternatives for fuel having concluded that neither is energy balanced. They have shown that: "corn requires 29 percent more fossil energy than the fuel produced; switch grass requires 45 percent more fossil energy than the fuel produced; and wood biomass requires 57 percent more fossil energy than the fuel produced. In terms of energy output compared with the energy input for biodiesel production, the study found that: soybean plants requires 27 percent more fossil energy than the fuel produced, and sunflower plants requires 118 percent more fossil energy than the fuel produced.” This is referred to at three sites: www.uidaho.edu/bioenergy/NewsReleases/Biodiesel%20Energy%20Balance_v2a.pdf (University of Idaho) www.agriculture.com/ag/story.jhtml?storyid=/templatedata/ag/story/data/agNe ws_050719crETHANOL.xml (Successful Farming’s "Agriculture Online”) www.news.cornell.edu/stories/July05/ethanol.toocostly.ssl.html (Cornell University) Most sites say this data is flawed, that they used old data and that some inputs were misapplied. Other sources also claim both fuel options have a positive rather than negative energy balance. Renewable Energy Access reports at (http://www.renewableenergyaccess.com/rea/news/story?id=34304): "Independent third-party, peer-reviewed studies show biodiesel has the highest energy balance of ANY fuel. A prominent USDA/DOE study shows for every unit of fossil fuel used to make biodiesel, 3.2 units of energy are gained in energy output. That's a 320% increase and includes soybean planting, harvesting, fuel production and transportation.” This study was conducted by National Renewable Energy Laboratory in Golden, CO and was cosponsored by the U.S. Department of Agriculture and U.S. Department of Energy. It appears across the Web, the most common accepted energy balance for biodiesel is 3.2 units output from 1 unit input. What about performance? Will a gallon of biodiesel get you as far down the road as petrodiesel? According to the Department of Energy, biodiesel energy content is about 11 % lower than petroleum diesel, so a B20 blend would yield 2.2 % fewer miles per gallon. See www.eia.doe.gov/oiaf/analysispaper/biodiesel In "Biodiesel Blends for Fueling Diesel Engines”, MU Guide 1990, Casady and Schumacher say, "The difference for small blends is not noticeable. Most users fueling with a relatively higher B20 blend do not even notice the small effect on engine power, torque or fuel economy, which is as little as 1 percent.” The National Biodiesel Board at www.pacfuel.com/pdf/Performance.pdf indicates: "In over 15 million miles of in-field demonstrations biodiesel showed similar fuel consumption, horsepower, torque, and haulage rates as conventional diesel fuel.” The cost of biodiesel appears to be higher than petroleum diesel. However, tax incentives for blenders make it more cost effective. See "Estimating the Net Energy Balance of Corn Ethanol An Economic Research Service Report”, by Shapouri, Duffield and Graboski, United States Department of Agriculture, Agricultural Economic Report Number 721, July 1995 at www.ethanol-gec.org/corn_eth.htm for a full report given to Nebraska Governors’ Ethanol Coalition. The authors say, "Corn ethanol is energy efficient, as indicated by an energy ratio of 1.24, that is, for every Btu dedicated to producing ethanol, there is a 24-percent energy gain. Moreover, producing ethanol from domestic corn stocks achieves a net gain in a more desirable form of energy.” An updated report by USDA dated July 2002 suggested "Corn ethanol is energy efficient, as indicated by an energy ratio of 1.34; that is, for every Btu dedicated to producing ethanol, there is a 34-percent energy gain." This can be found at www.mda.state.mn.us/renewable/renewablefuels/balance.htm, a Minnesota Department of Agriculture website. On the National Corn Growers Association website, www.ncga.com/ethanol/main/energy.htm , it is stated: "In June 2004, the U.S. Department of Agriculture updated its 2002 analysis of the issue and determined that the net energy balance of ethanol production is 1.67 to 1. (For every 100 BTUs of energy used to make ethanol, 167 BTUs of ethanol is produced.) In 2002, USDA had concluded that the ratio was 1.35 to 1.” "A Michigan State University study (2002) found that ethanol produced from corn provided 56 percent more energy than is consumed during production (1.56 to 1).” NCGA explains the energy balance improvement this way: "Compared to just five years ago, today’s ethanol plants produce 15 percent more ethanol from a bushel of corn—and using 20 percent less energy in the process.” "The energy efficiency of American farmers … [has improved]. According to USDA statistics, U.S. agriculture uses about half the energy to produce a unit of output today than was needed to produce the same output in 1950.” "Better corn varieties, improved production practices and conservation measures also figure into the equation. A 1 percent increase in corn yield raises the net energy value by 0.37 percent.” "…not all the energy used by an ethanol plant is directed at manufacturing ethanol, thus further improving the net energy balance of ethanol production.” Some of the processing energy is also directed at distillers grains, gluten feed, sweeteners, etc. In terms of fuel efficiency, it’s generally accepted that there’s about a 15 % reduction with E85 and zero to minimal decrease with E10. The Ethanol Promotion and Information Council at www.drivingethanol.org/ethanol_in_vehicles/frequently_asked_questions.aspx suggests that "studies indicate that fuel economy with ethanol-enriched fuels may decrease, but not likely with E10. E85 has approximately 27% less energy then gasoline, but fuel economy loss varies between 10 to 25%.” In an article by Chatham Journal Weekly, which can be found on the Internet at www.chathamjournal.com/weekly/living/autos/cr-e85-ethanol-61012.shtml , it’s stated that: "Consumer Reports tests show that E85 ethanol offers poorer fuel economy.” Consumer Reports tested E85 and concluded this blend reduces fuel economy 20 to 25 %. The Renewable Fuels Association suggests that E10 may reduce mileage by 2% and E85 by 10 % to 15 %. See their site at http://www.ethanolrfa.org/resource/facts/engine/ . The cost of E10 has typically been about four cents below that of regular unleaded gasoline. Last year a colleague reported E85 was 90 cents below the cost of gasoline near an ethanol plant while it was only 30 cents below that of gasoline 50 miles from the plant. Soooooo, if you drive a pickup that gets 20 mpg with regular unleaded gasoline, you pay $2.60 per gallon, E10 costs four cents less and decreases mileage by 2 % and E85 costs 30 cents less and reduces mileage by 15 %, here’s your cost of fuel per mile: |================================| |regular unleaded gas | 13.0 ˘ | |E10 | 13.06 ˘ | |E85 | 13.53 ˘ | |================================| Of course all that is going to vary by regional fuel costs, your driving habits and the list goes on and on. The US Dept of Energy says, "Cellulosic ethanol can be produced from fast growing trees, corn stover, grain straw, switchgrass, forest products, waste, and construction waste and may yield a higher energy balance than ethanol made from corn.” The Citizen’s League for Environmental Action Now (CLEAN) based in Huston, TX, claims various energy balances for several fiber species on their website at www.cleanhouston.org/energy/features/ethanol2.htm. "Sugarcane, at 1:8, yields about eight units of energy for every one unit invested…. One unit of energy is used for every five units provided by the Miscanthus-based ethanol fuel. Switchgrass's net energy yield is slightly less, at about 1:4. Sugar beets yield nearly two units of energy for every one unit …. Corn lies near the very bottom of the list at 1:1.4.” By this, one could conclude that cellulosic ethanol potentially holds more promise as an alternate fuel. It appears that hydrogen currently doesn’t do as well in terms of an energy balance. Under current production methods it takes 1 unit of input for ˝ unit of output or slightly better at 1 unit input to 0.66 units output according to one source. See www.nrel.gov/docs/fy01osti/27637.pdf and www.unh.edu/p2/biodiese/article_vehicle_compare.html for more details. However, there are a lot of things happening in the hydrogen arena, so stay tuned. But hold on a minute. Nothing has been said about energy balance of regular unleaded gasoline or petroleum diesel. Has anyone covered this in the news? If so, I haven’t seen it. The Minnesota Department of Agriculture sums it up pretty well in a table on their website. |=======================================| | | Energy | Net Energy | |---------------------------------------| |Fuel | Yield | (loss) or gain | |Gas | 0.805 | (19.5%) | |Diesel | 0.843 | (15.7%) | |Ethanol | 1.34 | 34% | |Biodiesel | 3.20 | 220% | |=======================================| I believe these to be reputable websites and data sources, so it appears most agree that ethanol and biodiesel have a positive energy balance, fuel economy is lower, but bottom line costs may not be excessively higher. So what is our major goal going to be; lower cost of fuel or fuel independence? If it’s independence, to a point the cost shouldn’t matter. ********************************************************************** Fish are exempt from sales tax Most people involved with the aquaculture industry in Missouri know that fish sold by a farmer are exempt from sales tax because fish are livestock and livestock are exempt. Prior to 1995, sales tax did need to be charged but that changed when Senate Bill 109 was passed and classified fish as livestock. Here are the two regulations that make farm-raised fish exempt: 1 RsMo 277.024.2: “For the purposes of construction of any law of this state or any rule or regulation promulgated by any department, board, or commission of this state, aquatic products obtained through aquaculture shall be treated and classified as livestock.” 2 RsMo 144.030.2(29): “All livestock sales [are exempt] when either the seller is engaged in the growing, producing or feeding of such livestock, or the seller is engaged in the business of buying and selling, bartering or leasing of such livestock;” That makes sense to those of us in the fish business; however, auditors sometimes think tax should be charged if the fish are sold for recreational purposes. This is wrong because whether or not tax is charged is based on the seller, not the intended use (#2 above). That said, auditors may think tax should be charged for two reasons: 1) they don’t know fish are exempt because they are livestock and 2) they may be working from misinformation. 1 The Department of Revenue Frequently Asked Questions http://dor.mo.gov/tax/business/faq/exempt.htm states: “Is the sale of animals taxable? The sale of livestock is exempt. Sales of animals or poultry for breeding or feeding purposes, as part of a business enterprise, are not subject to tax. The sale of animals for personal enjoyment or use is subject to tax.” This is codified in 12 CSR 10-110.910(3)(J) “Sales of animals for the purchaser’s personal enjoyment or use only, are subject to tax. Sales of animals for breeding or feeding purposes as part of a business enterprise are not subject to tax.” The key word in the Frequently Asked Questions is “animals” meaning cats, dogs, etc. Any animals not classified as livestock in 12 CSR 10-110.910 (3)(E) http://www.sos.mo.gov/adrules/csr/current/12csr/12c10-110.pdf are subject to taxation. 2 There are two examples in 12 CSR 10-110.910 but one is wrong. “A fish farmer purchases fish for use in his aquacultural operation. The purchase of the fish is exempt from tax.” This is the correct example. The wrong one states, “An individual decides to construct and stock a lake on his farm for recreational fishing by his family, neighbors and friends. The purchase of the fish is subject to tax.” Dave Rugen at the Department of Revenue said he is aware of this error and it has been corrected but has not been replaced yet in the published rules. In conclusion, fish are exempt from sales tax and have been since 1995; however, not everyone understands that. If you ever have trouble with an auditor it need not last long: just show them this article or have them call Bart toll free 866-466-8283 at the Department of Agriculture and he will discuss it with them. (reprinted from MoAA News, Vol 7, Issue 4, also found at http://moaa.pond.org/news/v7i4.pdf) ********************************************************************** *** In Print/On-Line *** *Conserving Fuels on the Farm* In today’s climate of continually escalating fuel prices, farms must find ways to conserve fuel in order to reduce costs. This publication identifies a number of measures that will reduce fuel consumption on farms, and concludes with a list of resources for more information. Available at http://attra.ncat.org/attra-pub/PDF/consfuelfarm.pdf *Biodiesel Production for On-Farm Use: A Curriculum for Agricultural Producers* This workshop curriculum was prepared by Piedmont Biofuels for the National Center for Appropriate Technology, with funding and cooperation from the USDA Risk Management Agency. The curriculum covers the chemistry of biodiesel, discusses various feedstocks, and presents several case studies of small-scale biodiesel production. Available at http://attra.ncat.org/attra-pub/PDF/biodiesel_on_farm.pdf *Managing Cover Crops Profitably* Cover crops slow erosion improve soil, smother weeds, enhance nutrient and moisture availability, help control many pests and bring a host of other benefits to your farm. At the same time, they can reduce costs, increase profits and even create new sources of income. You’ll reap dividends on your cover crop investments for years, because their benefits accumulate over the long term. Available from Sustainable Ag Network 301-374-9696 or online at http://sare.org/webstore.htm, $19. *Missouri Quail Habitat Appraisal Form* Helps you to evaluate your farm for quail habitat. Go to http://extension.missouri.edu/explore/miscpubs/mp0902.htm *Catfish Production Budgets* The University of Arkansas at Pine Bluff has released a 29 page publication covering enterprise budgets and sensitivity analyses for farms 1) with fry or fingerling ponds and 2) with a hatchery. It compares hiring a seining crew with using custom seining as well as leasing versus owning ponds. Spreadsheets (Excel) of these budgets are available for download and can be used to enter specific costs for your particular catfish farm. These can be found http://uaex.edu/cengle/Workshop/FinancialAnalysis.htm *Yellow Perch Production* and *Hybrid Striped Bass Production* are new publications that can be found at the North Central Regional Aquaculture Center’s website at http://www.ncrac.org/Publications/ *Managing for Herd Health in Alternative Swine Systems* This publication serves as a guidebook for swine producers not raising their hogs in a "conventional" operation. This publication was developed through a collaborative effort between swine producers, field veterinarians, Iowa State scientists, and Practical Farmers of Iowa. The publication covers many areas of herd health and also has examples and producer profiles from experienced hog farmers. Available online at http://www.pfi.iastate.edu/pigs.htm *Meat Yield Calculator* The University of Vermont has developed this calculatorso you can calculate the expected hot carcass weight and final "retail" yield for your beef, sheep, and hogs. You will need the animal's live weight (or an estimate of it), the dressing percentage, and cutting yield. You can also calculate what your customer will pay in total dollars and also in terms of pounds of meat received. You will need to know your slaughter fee, cut and wrap cost, and other fees, such as offal disposal fee. For more information and to download a copy of the spreadsheet, visit: www.uvm.edu/livestock/beef/?Page=meatyield.html *Paddlefish Production: Opportunities for Missouri Pond and Lake Owners* From the University of Missouri and online at http://extension.missouri.edu/explore/agguides/wildlife/g09470.htm *Practical Weed Science for the Field Scout* This publication contains 60 pages of information that will help field scouts diagnose herbicide injury problems and identify common weeds and weeds seedlings. It also contains over 150 photographs of the most up-to-date herbicide injury symptoms encountered in today’s production systems as well as over 300 photographs of 98 weed species in different stages of growth. Available from the University of Missouri Extension Publications, 800-292-0969, $3.00. Organic Farming Builds More Soil Organic Matter Than No-Till -- A long-term study by USDA's Agricultural Research Service shows that organic farming can build even more soil organic matter than no-till farming practices. The study showed that organic matter added by manure and cover crops more than offset any organic matter losses due to tillage to control weeds. The research is reported in the July 2007 issue of Agricultural Research magazine at http://www.ars.usda.gov/is/pr/2007/070710.htm *Enhancing Beneficial Insects with Native Plants* This website offers a series of publications on beneficial insects and native wild plants. http://www.nativeplants.msu.edu/ USDA Wholesale Terminal Reports can be found at http://www.ams.usda.gov/fv/mncs/terminal.htm This site reports wholesale prices of fruits and vegetables (including fruit & vegetables, onions, potatoes, herbs, tropical and Asian fruits and vegetables). These 'terminals' are basically entry and pricing locations around the country for agricultural goods. They are located near population and transportation centers and our nearest one is in St Louis and you would most likely want to look at that terminal's pricing quotes to see what Mid-West wholesale prices are before venturing into other terminals. To access the terminal market price go to the website, choose a category and a terminal market and the wholesale prices will be listed by wholesale weight or measure. ********************************************************************** *** IN THE NEWS *** Small farmers – and the consumers who support them – have launched the Farm-to-Consumer Legal Defense Fund. The non-profit organization was founded to protect the rights of farmers to provide meat, eggs, raw dairy products, vegetables and other foods directly to consumers. Their educational services will include up-to-date information on legal and regulatory issues as well as model contracts for cow-share, herd-share, farm-share or other contractual agreements that may be needed in order for consumers to obtain raw dairy products and other nutritious foods directly from farmers. Go to www.ftcldf.org for more information. The market for cage-free eggs is growing, reports The New York Times, as corporate cafeterias, retailers, and even fast food chains pledge to serve only cage-free eggs. Burger King, Omni Hotels, and Whole Foods supermarkets are a few of the large-volume buyers of cage-free eggs. With many large buyers in the market, supplies of cage-free eggs aren't always adequate, since only 5 percent of egg-laying birds are cage-free. The growing demand for cage-free eggs appears to be driven by animal rights concerns, yet some say that conditions for cage-free birds may not be better than those for birds in cages, and point out that not all cage-free eggs are produced under the same conditions, and that cage-free doesn't equate with free range. (Weekly Harvest Newsletter, Aug 15, 2007) ********************************************************************** *** ON THE CALENDAR *** Sept 15 - Poultry Fest, Silex, MO. Call 573-581-7093 or 636-579-9391. Sept 15 - Basic Skills Workshop, Enid OK. Call 918-647-9123. Sept 22-23 - Annual Ozark Renewable Energy and Sustainable Living Expo, Columbia, MO. www.ozarkre.org Oct 1-3 - 7th Annual BioCycle Conference on Renewable Energy From Organics Recycling, Indianapolis, IN. 610-967-4135. Oct 12-14 - 28th Annual Ozark Area Community Congress, Willow Springs, MO. Call 417-372-2479, www.ozarkareacommunitycongress.org Oct 13 - 5th Annual Chestnut Roast, New Franklin, MO. Call 573-882-3234. Oct 23-25 - Grazing School, Bois d' Arc, MO. Call 417-831-5246 x 3) Oct 29 - From Recipe to Reality, Lincoln, NE. Call 402-472-2819 or jgifford1@unl.edu Nov 1-3 - National Small Farm Today Conference and Trade Show, Columbia, MO. Call 800-633-2535. Nov 2-3 - MO State Beekeepers Assn Fall Meeting, Hannibal, MO. www.mostatebeekeepers.org Nov 3 - Putting Small Acreages to Work, Belleville, IL. Call 618-650-7050. Nov 17 - Small Farms Conference, Peoria, IL. Call 309-685-3140. Nov 29 - Tri-State Local Foods Conference (MO, IL, IA), Quincy, IL. Call 217-223-8380. Nov 30-Dec 1 - Livestock Symposium, Kirksville, MO. Jan 13-14 - Governor's Conference on Agriculture, St Louis, MO. Feb 2-4 - Midwest Grape and Wine Conference, Tan-Tar-A. Call 1-800-392-WINE. University of Missouri Field Day Schedule Sept 13 - Ag Education Day at Southwest Center, Mt Vernon, MO. Call 417-466-2148. Sept 14 - Southwest Center Field Day, Mt Vernon, MO. Call 417-466-2148. Sept 15 - South Farm Beef Research and Teaching Farm Field Day, Columbia, MO. Call 573-882-4450. Oct 4 - Ag Sciences Day at Wurdack Farm, Cook Station, MO. Call 573-882-4450. Oct 13 - Chestnut Roast at Horticulture and Agroforestry Research Center, New Franklin, MO. Call 573-882-3234. Green Hills Farm Project Farm Walks Green Hills Farm Project welcomes all families to our open farm walks. Always bring your children! Please call ahead to advise the host family of the number attending and to get directions. The host family provides main meat course and drinks. Please bring lawn chairs and covered dish. Come on out and join us for a great time of fellowship and sharing on our farms! September 20th - 5pm, Allen & Tauna Powell, Laclede, MO, 660-963-2685. Soil, water, and grass management with the use of MiG and animal impact. Cattle, sheep, pastured hens. Web site sales of beef, lamb, eggs, soap, raw wool, sheep pelts, wool products including blankets, batting, roving, socks are coming! Tours to the seed cleaning operation are available if there is interest. www.mastersranch.com or atpowell@mcmsys.com October 20th - Saturday, 11 am, Kerry & Barb Buchmayer, Purdin, MO 660.244.5858, Organic milk, butter, and eggs. Learn about managing soil and animals organically at Green Hills Harvest. Tours of the bottling plant available for those interested. www.ghharvest.com or ghharvest@juno.com November 15th - 4pm, Ben & Nancy Coleman, Callao, MO, 660.768.5743. Ben and family have been cattle ranching for years. Come and see their management practices; come early since it will be getting dark soon at this meeting. Heated outbuilding for meal and meeting. December - no meeting in December Growing Growers Workshops For more information 913-488-1270 or growers@ksu.edu Oct 1 - Integrating Meat and Dairy into Vegetables, Weston, MO. Oct 20 - Business Management for Small Farms, Kearney, MO. Nov 3 - TBD, Location to be determined