Tag Archives: green
Biofuels ‘Will Meet RFS Mandates Through 2016’
September 3, 2013 There will be sufficient supply of advanced biofuels to meet the US Renewable Fuel Standard through 2016, according to Environmental Entrepreneurs’ (E2) annual assessment of the advanced biofuel industry . The report comes amidst renewed scrutiny of the RFS from Congress this summer, as the oil industry seeks to roll back the renewable fuel requirements . The RFS requires that the majority of future growth in biofuels production come from non-food cellulosic biofuels, and the slower than expected commercialization of the cellulosic industry has caused some to lose patience with the program, E2 says. The report suggests that the policy is beginning to deliver on its stated purpose of developing a domestically produced, clean-burning alternative to oil. The assessment says advanced biofuels capacity for 2013 is 1 billion gallons gasoline equivalent while capacity for 2015 is between 1.4 and 1.6 billion gallons gasoline equivalent. Additionally, Some 160 commercial scale facilities planned, under construction, or complete from 159 companies and private investment in the advanced biofuel industry totals over $4.85 billion since 2007. Federal loan guarantees exceed $1.1 billion since 2008, the report says. Nine of the current biorefinery projects have received these loan guarantees. To qualify as advanced for the E2 report, a biofuel must deliver at least a 50 percent reduction in carbon intensity compared to petroleum using calculations developed by the California Air Resources Board. Biodiesel remains the dominant advanced biofuel today and is expected to remain the forerunner through 2016. So-called drop-in fuels show significant progress and the report authors expect them to contribute more substantially to overall advanced biofuel capacity over time. The EPA, which administers the RFS, is expected to announce biofuel volume requirements for 2014 sometime over the next month. And while the report shows that the biofuels industry can meet near-term production targets, even under the best circumstances, advanced biofuels can account for only 0.7 percent of US fuel demand — suggesting that while biofuels can be part of efforts to cut oil use, they must be paired with other solutions such as expanded electric vehicle use and greater fuel efficiency, E2 says. California is ahead of the biodiesel curve , according to a study published last month by E2 and Environmental Defense Fund. Growing production in the state shows California companies have started capitalizing on this low-carbon fuel. Companies profiled in the report credit California’s Low Carbon Fuel Standard (LCFS), which calls for lower emissions from transportation fuels, with driving demand for and growth of biofuels in the state. Continue reading
More Signs Of Land Price Leveling
http://www.agricultu…jpg&type=editor DANIEL LOOKER 08/30/2013 Business Editor A report to be released next week on land prices will mirror a leveling off shown this week by an Illinois study. Rabobank will release its own report, which, like the Illinois survey, will show that land prices this year are up by about 2% to 3% over a year ago, said Sterling Liddell, an economist and vice president for the agricultural lender. A survey by the University of Illinois and Illinois society of Professional Farm Managers shows the first half of 2013 with a 2.5% to 3% year-over-year increase for good to excellent land in that state. “That is consistent with what we’re seeing as well, from both the opinion perspective as well as appraisals,” Liddell told Agriculture.com in a telephone interview Friday. Bank analysts were expecting that to happen last year as well, he said. And good farmland prices were rising at about a 2% to 3% rate until the last quarter of 2012, when concerns by both sellers and buyers over looming federal tax changes added incentives to pay more for land. Sellers wanted to avoid increases in capital gains taxes. Liddell won’t be surprised if the trend continues into 2014. “If we get lower prices on this crop, then we expect to see a leveling off into next year as well,” he said. Prices could actually decline if corn averages less than $4.50 a bushel, he said. Another big factor will be higher interest rates, which will make purchasing land more expensive and also will likely strengthen the U.S. dollar, potentially making U.S. crop exports less competitive against those of Brazil and other competing nations. That would put downward pressure on U.S. crop prices. “If we have strong increases in interest rates, it will have a very negative effect on land values,” Liddell said. That applies mainly to new sales, but a significant percentage of recent land purchases are still financed by floating rate mortgages. Liddell didn’t want to generalize about all farmland loans or disclose Rabobank’s statistics on the amount of farmland mortgages that don’t have fixed rates locked in. It’s less than a majority, he said. “There are more than would make me comfortable,” he said. Mortgages with floating rates have been less costly, but when the Federal Reserve ends its quantitative easing program to hold down long-term rates, that isn’t likely to continue. “That’s something I would recommend, that farmers look at: How do they extend these low rates?” Liddell said. Continue reading
Farmland In The South ‘Outstripping The National Average’
Agricultural land prices in the south are outstripping the national average, with non-farming investors helping push the market along and to the south of the M3 and M4 corridors. Richard Liddiard, head of farm agency for national property consultancy Carter Jonas based in Newbury, says that while the national average price per acre for arable rose to £8,193 and pasture to £6,689 the strength of the market in Berkshire and Hampshire has driven values far above that level with arable regularly achieving £10,000 per acre and pasture £8,000. The larger difference between the two land types in this region illustrates the emphasis on arable crops rather than livestock farming. “We have seen some exceptional transactions during the first half of 2013 with the larger sales being dealt with ‘off market’ and showing the strength of land as a safe haven and hedge against economic ills,” he says in his leading national market comment for the latest RICS rural market survey covering the first half of this year. “Whilst the UK economy shows signs of recovery, I am still of the opinion that we are at the peak of the market for average or less well equipped farms.” “But the best in class will still rise in value and be keenly sought by the non-farming investors who value the safe haven status and inheritance tax advantages that land offers. The number of investors buying in the area has risen by 166 per cent despite some recent suggestions that investors are baling out. It is understandable that some have been taking advantage of the healthy price growth to take their ‘profit’ and plough their cash into other opportunities which may offer chances of better capital growth in the next five to 10 years. “The rise in values comes despite seeing more farms in the market but there are some holdings that are sticking, particularly if they are overpriced or do not have strong local demand to push values higher.” “Many buyers are yeoman farmers – members of families who have been in farming sometimes for generations. They see the value of enlarging their existing holdings, particularly where a senior member of the family retires to be followed by additional family members looking to become involved in the farming enterprise.” Continue reading
