New Outlook: Magazine , Sunday, 8/12/2007
script iconPROMO!!!!!!! script iconEpping 2 Bob
script iconPreshow #1 script iconThanks/Goodbye
script iconPreshow #2 script iconWeb Promo
script iconPreshow #3 script iconkey: environment
script iconHello/Intro script iconkey: environment
script iconTag Carbon script iconkey: transportation
script iconIntro Epping 1 script iconkey: environment
script iconEpping 1 Clay script iconkey: environment
script iconIntro Grease Girls script iconFood vs Fuel
script iconGrease Girls script iconunh biodiesel
script iconTag Grease Girls script iconKeene city biodiesel
script iconIntro Epping 2 script iconKeene State biofuel


script iconPROMO!!!!!!!
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PROMO: NH Communities go green. Local governments and individuals take a stand against global warming. Find out how they are cutting greenhouse gas emissions and energy consumption.
script iconPreshow #1
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NOW on New Hampshire Outlook:
Climate change.what can one person do to make a difference?
script iconPreshow #2
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And how one town is thinking globally, but making real local change.
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And can you really drive cross country on vegetable oil? Meet someone who did.
script iconHello/Intro
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Epping NH has jumped on the eco-friendly bandwagon. Their building code has gone green -- and they've joined a growing number of communities to sign a climate protection resolution.
Hello, I'm Beth Carroll. Welcome to NH Outlook. We're coming to you from Epping. This community of 62-hundred is the first "town" in the state to mandate green building standards in new commercial buildings.
More on that trend-setting move in a moment -- but, first a look at individual efforts to go green.
With Al Gore's film "Inconvenient Truth" winning an Oscar for best documentary, perhaps climate change has now become a part of pop culture.
If so, scientists think that's a good thing.
Short of making award-winning films, what can we, as individuals do to help deal with a truly global problem? Plenty, says Chuck Henderson. Outlook's Phil Vaughn brings you the story of the Conway business owner who believes that the efforts of one have benefits for all.
script iconTag Carbon
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Alternative energy research is underway at campuses all over the US, including NH where, among other things, researchers at UNH are involved in a project to capture and transport methane gas from a landfill in Rochester for use as a heating source on campus.
The city of Keene uses methane from its landfill site and biodiesel in its city vehicles.
Next: Why Epping has taken the pledge to cut greenhouse gas emissions and
energy consumption.
script iconIntro Epping 1
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Here in Epping.energy efficiency has been taken to a whole new level. It's not a new concept.Boston went to green building codes in 2005 for projects bigger than 50-thousand square feet. But, Epping's ordinance applies to ALL commercial projects, large and small.
Located at the crossroads of Rte 101 & 125.Epping has had little trouble attracting businesses to this busy intersection and beyond. Walmart's Super Center and Lowe's -- here before the ordinance kicked in-- have already taken aggressive measures to conserve water and capitalize on daylight -- reducing their consumption of energy.
But, what about municipal buildings in Epping. How do they stack up in the energy efficienty dept. Let's head over to the S-A-U building to find out.
script iconEpping 1 Clay
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We're in the basement of the school administration bldg.
with Epping town planner Clay Mitchell -- where Clay tells us this 1920's coal boiler --
is a classic example of what needs to go GREEN in municipal buildings.
Q Town has pledged to look at its own Energy consumption --so what are the plans for this dinosaur?
Q Is their Public will for going GREEN -- even if it costs MONEY at the outset?
Q In a nutshell, what will new business have to do to build in Epping under green building codes?
Q You have two very large retailers in town, specifically Lowe's and Wal-Mart's how are they meeting the new standards?
Q Green building.conjures up some ugly images. Is there still an image problem when it comes green construction?
Q Town signed a climate protection resolution – what does that mean?
Why did Epping feel they had to ACT on global warming?
Q Has building green GONE mainstream?
Q Will these new standards CHASE out businesses?
TAG OUT: Craig.thanks. We’ll talk with a local biz for their thoughts on Eppings new
GREEN building standards. a little later on.
script iconIntro Grease Girls
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The Salem Planning Board this week, approved plans for NH's first commercial bio-diesel plant.
Atlantic Biodiesel spokesman Tim Hickey says they're now in the pre-construction phase, ordering equipment and preparing the site.
The plant should be operational by late June or early July.
On the state level -- a plan to study the production and distribution of biodiesel fuel in NH has won approval in the house and now moves to the senate.
Advocates say biodiesel is one of several alternative fuels that could reduce our dependency on foreign oil.
Some NH students are doing their part. They've already made the grade for alternative fuel use.
How did they do it? Outlook's Phil Vaughn has the story.
script iconGrease Girls
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N3- Aislinn Johnson is a UNH student. Last spring she and a friend shared a dream.
Aislinn holding photo - this is me and my friend Sarah
Aislinn 900/918 "Originally we wanted to see the country. We are both in college and don't have a lot of money - we wanted to do it as cheaply as possible."
N4- So, they bought a van - this van for 300 dollars.
Aislinn 1849 "We wanted it because it's diesel."
N5- And large enough to move Aislinn, Sarah, and two friends from NH to California.
Aislinn 1905 "So that's why we wanted it and we wanted to convert it to vegetable oil."
Slo-mo shot of veg oil
N6- Vegetable oil - the same kind you cook with.
Aislinn 1955 "Originally the purpose was to see the country but when we found out about vegetable oil we changed our purpose and made it an educational trip."
N7- About alternative fuels and global warming.
Michael 3922 - "You have much lower greenhouse gas emissions - potentially zero greenhouse gas emissions."
N8 - Michael Briggs teaches at the University of NH. He's part of the Biodiesel Group researching alternative fuels.
Michael 4121 "The vegetable oil, when you burn it you still get carbon dioxide out the tail pipe the difference is the carbon that comes from that oil came from plant matter - as those plants grew the carbon that's in them came from the atmosphere so there's no net release from burning the vegetable oil itself. So you have no net greenhouse gas emissions."
Aislinn 1935/810 "It's easy to convert a car to vegetable oil. Our mechanic did the conversion for free we just had to pay for the parts. The parts cost 450 dollars."
N9- Vegetable oil will burn only in diesel engines.
Aislinn 2210 "You have to drive for 10 minutes off diesel before you can switch to vegetable oil."
Micheal 4305 - "What you want to do is heat up the oil to reduce its viscosity. So, you modify the vehicle by adding a second fuel tank and heating the oil with the car's coolant system."
N10 - The Canola Strolla, as they call the van, already had two fuel tanks when Aisleen bought it.
Aislinn 3715/2210 "This is the vegetable oil tank and that is the diesel tank - the fuels never mix. There's a toggle switch in the front of the van and when you want to switch between the two fuels just flip the switch."
N11 - The cross-country trip began in early summer. Aislinn and her friends were on the road to enlighten all who would listen to them about global warming and alternative fuels.
Aislinn 1145 "We met people who were willing to support us and help us spread the word."
N12 And along the way they had to search for fuel in unconventional places.
Sound of traveling shot
Aislinn 1326 "In the beginning it was tough because we'd waste a lot of time looking for restaurants."
N13 - Fast food joints weren't very helpful. Smaller restaurants were.
Aislinn 1354/410 "We realized that Asian grease was the best."
Shot of Thai Cuisine/Aislinn collects oil
N14 - This is Aislinn's favorite fuel stop in Dover.
Aislinn 205/3848 "What happens is the restaurants get oil in containers like this and when the oil gets dirty they dump it back in and I come around and pick it up. These are the filters - pour oil in and collects crumbs, fries and other particles."
Restaurant owner 550/612 "I was surprised - didn't know that people would do such a thing. It makes so our garbage can not so full by the end of the week so it helps me and everyone else."
N15 - The Canola Strolla made it to the coast and back - well before summer's end.
Aislinn 2030 "The trip was about 7000 miles."
N16 - The travelers spent less than 500 dollars on diesel fuel during a season of record high prices. The vegetable oil was free.
Aislinn 2045 "There were no challenges burning vegetable oil, the van loves it - it ran better."
Shot of Aislinn and Tom walking to van
N17 Aislinn is back in school. She has sold the van to Portsmouth filmmaker Tom Jackson. He'll be taking the Canola Strolla and his latest film on tour.
Tom 2500 "I'm going to be taking the film production which is about global warming and things we can do and be going to colleges and universities and showing it and talking about what we can do. One of which is driving alt fuel vehicles."
Aislinn 2320 "I'm thrilled tom is buying the van because he's going to teach people about important issues that are important to me too."
N18 - But the question remains - how practical is all of this?
Aislinn 2800 Burning vegetable oil may not be practical for many people but if you want to change vegetable oil into bio-diesel that is practical."
Michael 3737 "Biodiesel is where you take vegetable oil and you alter it into something else. It's a different chemical than vegetable oil. So you go through a chemical process where you are breaking apart the vegetable oil molecules and producing a bio-diesel so you don't have the problem of needing to start up on another fuel and heating the vegetable oil."
Shots of UNH bio-diesel event
N19 - Last summer, the state introduced bio-diesel to some of their pumps at UNH, in Durham. There are more than dozen bio-diesel outlets in the state. Briggs believes we're 5 to 10 years away from producing large supplies of bio-fuel. The biggest challenge for producers, he says, is to compete with oil companies.
Michael 4427 "So if a company started building processing plants to produce bio diesel much cheaper than gas - the price of oil would decrease to the point it needs to force out competition."
N20 - But for Tom and Aislinn, the future of alternative fuels is more than a dream.
Aislinn 30 "The trip was a dream that we came up with and we didn't want to keep it as a dream we wanted make it come true and not say what if - we made that possible. It's an incredible thing to follow your dream and make it happen."
N21 - For NH Outlook, I'm Phil Vaughn.
script iconTag Grease Girls
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A Keene State College researcher who studies the effects of biodiesel has found that even a small blend of biodiesel can significantly reduce emissions.
UP NEXT: How do Epping businesses feel about STRICT new "green" mandates for commerical buildings. We'll hear from one owner -- now in the process of building under the new ordiance.
script iconIntro Epping 2
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We’re at the WS Goodrich company, a stone and brick manufacturer , in town since 1887. Their new building -- still under construction -- must comply with the town’s new green ordinance. Owner Bob Goodrich is here.
Show us how the new showroom MEETS the definition of green.
Bob Goodrich thanks.
Whether you call it "eco-friendly." "sustainable or green. They all address the same issue: climate change. Global warming is now shaping policy and impacting business decisions in NH and elswhere.
That wraps up our program from Epping.
Thanks for Watching.
I'm Beth Carroll.
I'll see you around NH.
script iconEpping 2 Bob
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Are there other measures separate from the town mandates that you have undertaken to be a more environmentally friendly company?
script iconThanks/Goodbye
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That wraps up our program from the town of Epping.
Thanks for watching.
I'm Beth Carroll.
I"ll see you around NH
script iconWeb Promo
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script iconkey: environment
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NEW HAMPSHIRE OUTLOOK Air Date/Time: 8/12/2007
HOST: Beth Carroll Length: 7:00
Now on New Hampshire Outlook: Climate change. What can you do to make a difference? Plus: How one town is thinking globally, but making real change. And later: How a group of New Hampshire students drove cross country. using vegetable oil for fuel. When it comes to global warming, Epping, NH has jumped on the eco-friendly bandwagon. Their building code has gone green -- and they've joined a growing number of communities to sign a climate protection resolution. Hello, I'm Beth Carroll. Welcome to NH Outlook. We're coming to you from Epping. With Al Gore's film, "Inconvenient Truth" winning an Oscar for best documentary, perhaps climate change has now become a part of pop culture. If so, scientists think that's a good thing. Short of making award-winning films, what can we, as individuals do to help deal with a truly global problem? Plenty, says Chuck Henderson. Outlook's Phil Vaughn brings you the story of the Conway business owner who believes that the efforts of one have benefits for all.
PRODUCER/REPORTER: Phil Vaughn NAME OF PARTICIPANTS: Chuck Henderson\Owner Chuck Roast, Lisa Behrendt\Student, Cecilia Low-Weiner\Student, Cameron Wake, Ph.D.\Climate Change Research Ctr, John Aber, Ph.D.\V.P. Research & Public Service
script iconkey: environment
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NEW HAMPSHIRE OUTLOOK Air Date/Time: 8/12/2007
HOST: Beth Carroll Length: 5:00
Now on New Hampshire Outlook: Climate change. What can you do to make a difference? Plus: How one town is thinking globally, but making real change. And later: How a group of New Hampshire students drove cross country. using vegetable oil for fuel. When it comes to global warming, Epping, NH has jumped on the eco-friendly bandwagon. Their building code has gone green and they've joined a growing number of communities to sign a climate protection resolution. Hello, I'm Beth Carroll. Welcome to NH Outlook. Here in Epping energy efficiency has been taken to a whole new level. It's not a new concept -- Boston went to green building codes in 2005 for projects bigger than 50-thousand square feet -- but Epping's ordinance applies to all commercial projects, large and small. We're here in the basement of the school administration building with Epping town planner Clay Mitchell, where Clay tells us this 1920's coal boiler is a classic example of what needs to go green in our municipal buildings.
PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Clay Mitchell\Epping Town Planner
script iconkey: transportation
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NEW HAMPSHIRE OUTLOOK Air Date/Time: 8/12/2007
HOST: Beth Carroll Length: 7:30
Now on New Hampshire Outlook: Climate change. What can you do to make a difference? Plus: How one town is thinking globally, but making real change. And later: How a group of New Hampshire students drove cross country. using vegetable oil for fuel. When it comes to global warming, Epping, NH has jumped on the eco-friendly bandwagon. Their building code has gone green and they've joined a growing number of communities to sign a climate protection resolution. Hello, I'm Beth Carroll. Welcome to NH Outlook. We're coming to you from Epping. Not far from here -- in Salem -- the Planning Board there approved plans for NH's first commercial bio-diesel plant. Atlantic Biodiesel spokesman Tim Hickey says they're now in the pre-construction phase, ordering equipment and preparing the site. The plant should be operational by late June or early July. On the state level -- a plan to study the production and distribution of biodiesel fuel in NH has won approval in the house and now moves to the senate. Advocates say biodiesel is one of several alternative fuels that could reduce our dependency on foreign oil. Some NH students are doing their part. They've already made the grade for alternative fuel use. How did they do it? Outlook's Phil Vaughn has the story.
PRODUCER/REPORTER: Phil Vaughn NAME OF PARTICIPANTS: Aislinn Johnson\UNH Student, Michael Briggs\UNH Biodiesel Group, Infeng Vongasy\Owner, Thai Cuisine, Tom Jackson\Filmmaker
script iconkey: environment
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NEW HAMPSHIRE OUTLOOK Air Date/Time: 8/12/2007
HOST: Beth Carroll Length: 7:30
Now on New Hampshire Outlook: Climate change. What can you do to make a difference? Plus: How one town is thinking globally, but making real change. And later: How a group of New Hampshire students drove cross country. using vegetable oil for fuel. When it comes to global warming, Epping, NH has jumped on the eco-friendly bandwagon. Their building code has gone green and they've joined a growing number of communities to sign a climate protection resolution. Hello, I'm Beth Carroll. Welcome to NH Outlook. We're coming to you from Epping. Not far from here -- in Salem -- the Planning Board there approved plans for NH's first commercial bio-diesel plant. Atlantic Biodiesel spokesman Tim Hickey says they're now in the pre-construction phase, ordering equipment and preparing the site. The plant should be operational by late June or early July. On the state level -- a plan to study the production and distribution of biodiesel fuel in NH has won approval in the house and now moves to the senate. Advocates say biodiesel is one of several alternative fuels that could reduce our dependency on foreign oil. Some NH students are doing their part. They've already made the grade for alternative fuel use. How did they do it? Outlook's Phil Vaughn has the story.
PRODUCER/REPORTER: Phil Vaughn NAME OF PARTICIPANTS: Aislinn Johnson\UNH Student, Michael Briggs\UNH Biodiesel Group, Infeng Vongasy\Owner, Thai Cuisine, Tom Jackson\Filmmaker
script iconkey: environment
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NEW HAMPSHIRE OUTLOOK Air Date/Time: 8/12/2007
HOST: Beth Carroll Length: 4:30
Now on New Hampshire Outlook: Climate change. What can you do to make a difference? Plus: How one town is thinking globally, but making real change. And later: How a group of New Hampshire students drove cross country. using vegetable oil for fuel. When it comes to global warming, Epping, NH has jumped on the eco-friendly bandwagon. Their building code has gone green and they've joined a growing number of communities to sign a climate protection resolution. Hello, I'm Beth Carroll. Welcome to NH Outlook. Here in Epping energy efficiency has been taken to a whole new level. It's not a new concept -- Boston went to green building codes in 2005 for projects bigger than fifty-thousand square feet -- but Epping's ordinance applies to all commercial projects, large and small. We’re here at the WS Goodrich company, a stone and brick manufacturer, in town since 1887 to see how their new building -- still under construction -- must comply with the new green ordinance. Owner Bob Goodrich is here to show us how the new showroom meets the definition of green.
PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Bob Goodrich\WS Goodrich
script iconFood vs Fuel
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Ethanol could fuel price hikes
Posted Saturday, March 31st 2007, 4:00 AM
An ethanol-fueled boom in prices will prompt American farmers to plant the most corn since the year the Allies invaded Normandy, but surging demand could mean consumers still might pay more for everything from chicken to cough syrup.
Corn is a key ingredient in many foods, from corn syrup found in candies to feed used in meat production. With more corn being used for ethanol production, that could raise prices in other areas where corn is used.
Farmers are expected to plant 90.5 million acres of corn, according to the Department of Agriculture's annual prospective plantings report released yesterday. That would be a 15% increase over 2006 and the most corn planted since 1944.
The move to plant corn is in large part due to a rush to produce corn-based ethanol, which is blended with gasoline.
The corn rush was sparked by President Bush's initiative for support of flexible-fuel vehicles and his administration's plan to cut gas consumption by 20% in 10 years.
The Associated Press
--------------------------------------------------------------------------------
http:/www.nass.usda.gov/Newsroom/printable/03_30_07.pdf
Press release from usda at this link.
Ethanol Demand Boosts Corn Planting
Advertisement
Chicago Tribune online edition:
By NAFEESA SYEED and DAVID PITT
Associated Press Writers
March 30, 2007, 9:46 PM CDT
DES MOINES, Iowa -- An ethanol-fueled boom in prices will prompt American farmers to plant the most corn since the year the Allies invaded Normandy, but surging demand could mean consumers still may pay more for everything from chicken to cough syrup.
Farmers are expected to plant 90.5 million acres of corn, according to the U.S. Department of Agriculture's annual prospective plantings report released Friday. That would be a 15 percent increase over 2006 and the most corn planted since 1944.
Mother Nature will play a large part in the actual acreage planted. Muddy fields are already slowing plantings in some states.
"We're awfully wet out here," said John Scott, a grain farmer in west central Iowa. "Normally by this time of year we're doing quite a bit of field work. There just isn't a wheel turning out here. Illinois is in the same boat."
Corn should be planted by mid-May for good yields and soybeans can be planted as late as June, which could be a fallback plan for farmers if corn doesn't get planted in time.
The move to plant corn is in large part due to a rush to produce corn-based ethanol, which is blended with gasoline. There are now 114 ethanol refineries nationwide and another 80 under construction.
The corn rush was sparked by President Bush's initiative to support flexible-fuel vehicles, which are capable of using gasoline and ethanol blends, and his administration's plan to cut gas consumption by 20 percent in 10 years.
Corn prices were already rising when Bush announced the initiative in Washington on Jan. 23 and there has been growing concern that the corn rush could hurt the poor in less-developed nations such as Mexico, where the crop is a staple used in tortillas.
On Thursday, Cuban leader Fidel Castro wrote in an editorial for the Communist Party daily newspaper that President Bush's ethanol plan could deplete corn and other food stocks in developing nations, putting the lives of 3 billion people at risk worldwide.
"You're in the middle of an emergence of a food versus fuel debate," said Lincoln Ellis, director of asset management for the Linn Group, a Chicago-based privately held financial trading business focusing on commodities and futures. "This is the pregame show. We haven't even hit the first quarter."
Corn is a key ingredient in many foods, from corn syrup found in candies and cough syrup to feed used in meat production.
Chicken producers welcomed the planting report, hoping that an increased corn supply would reduce feed costs that have led to a 40 percent rise in chicken prices. But they noted that the bigger corn harvest would come at the expense of soybean acres, expected to drop by 11 percent.
"This is definitely a mixed report," Bill Roenigk, senior vice president and chief economist at the National Chicken Council, said in a statement.
Livestock and dairy producers also were optimistic that increased corn production could lead to a decline in feed prices. That presumption showed up in the stock prices for chicken producers on Friday. The shares of Pilgrim's Pride Corp., Tyson Foods Inc. and Sanderson Farms Inc. all rose after the news.
Corn for May delivery was trading at $3.74 a bushel Friday on the Chicago Board of Trade, down 5.1 percent, or 20 cents from Thursday, the daily limit for loss set by the board.
Corn prices had fallen about 17 percent from their Feb. 26 10-year high of $4.50.
Agriculture industry analyst David Driscoll, of Citigroup Research, said in a report to investors Friday that he expects the increased corn acres to cause the price of corn to fall to about $3 a bushel by December.
Corn had been stuck at around $2 a bushel for years before the ethanol boom lifted prices.
Bob Ray, a senior vice president at the Chicago Board of Trade, said predictions that corn prices will continue to decline because of plentiful supply from a huge harvest must be balanced with increasing demand from the export market.
Both China and India have sent signals recently that they'll import significant amounts of U.S. corn. The Chinese can't raise enough corn to feed their rapidly growing livestock market and India has recently lowered tariffs, indicating plans to import grains from the United States.
A wild card also could be the European Union, which also has to meet required renewable fuel mandates and doesn't have enough land available to set aside for grains to make into ethanol.
John M.A. Roy, an ethanol analyst for WR Hambrecht and Co., predicts that ethanol demand will grow by at least 32 percent in 2007.
"Overall this was a good report for ethanol producers and could help their stocks short-term, but the issue of high priced corn is not over," Roy said in a research note.
The USDA based the planting report on surveys of more than 86,000 farmers across the country.
Increased corn planting also could mean a large drop in cotton production, expected to be down 20 percent from last year.
In Arkansas, for example, farmers intend to plant 66 percent more acres in corn. Cotton acres are expected to drop from 1.2 million acres last year to 740,000 acres this year. A similar drop in cotton acreage is expected in Mississippi.
Stuart Sanderson, who farms 4,000 acres of wheat, soybeans, corn and cotton near the Tennessee River in northern Alabama, converted all of his cotton acres to corn this year, a move he expects to pay off in an extra $150 an acre.
He said all neighboring farmers he knows have converted at least 30 percent of their fields from cotton to corn.
"When corn goes over that $3 mark it really catches attention," he said. "The thing about cotton is you can't turn it into a fuel. With corn, you can eat it, you can feed it, you can turn it into fuel. With the ethanol engine, it's a really good time to be growing corn."
He doesn't anticipate a shortage of cotton, however, because domestic stockpiles remain large.
In its report, the USDA said Iowa remains on top with the most corn acres to be planted at 13.9 million -- a 10.3 percent increase from last year.
Besides a drop in soybean and cotton plantings, rice was expected to decline 7 percent to 2.64 million acres.
Some grains are expected to rise. Wheat is expected to rise 5 percent with 60.3 million acres. Other increases include: sorghum, up 9 percent; canola, up 12 percent; and barley, up 7 percent.
Figures of actual acres planted for the year will be released on June 29.
__
On the Net: U.S. Department of Agriculture:
Copyright © 2007, The Associated Press
Ethanol Demand Boosts Corn Planting
Advertisement
By NAFEESA SYEED and DAVID PITT
Associated Press Writers
March 30, 2007, 9:46 PM CDT
DES MOINES, Iowa -- An ethanol-fueled boom in prices will prompt American farmers to plant the most corn since the year the Allies invaded Normandy, but surging demand could mean consumers still may pay more for everything from chicken to cough syrup.
Farmers are expected to plant 90.5 million acres of corn, according to the U.S. Department of Agriculture's annual prospective plantings report released Friday. That would be a 15 percent increase over 2006 and the most corn planted since 1944.
Mother Nature will play a large part in the actual acreage planted. Muddy fields are already slowing plantings in some states.
"We're awfully wet out here," said John Scott, a grain farmer in west central Iowa. "Normally by this time of year we're doing quite a bit of field work. There just isn't a wheel turning out here. Illinois is in the same boat."
Corn should be planted by mid-May for good yields and soybeans can be planted as late as June, which could be a fallback plan for farmers if corn doesn't get planted in time.
The move to plant corn is in large part due to a rush to produce corn-based ethanol, which is blended with gasoline. There are now 114 ethanol refineries nationwide and another 80 under construction.
The corn rush was sparked by President Bush's initiative to support flexible-fuel vehicles, which are capable of using gasoline and ethanol blends, and his administration's plan to cut gas consumption by 20 percent in 10 years.
Corn prices were already rising when Bush announced the initiative in Washington on Jan. 23 and there has been growing concern that the corn rush could hurt the poor in less-developed nations such as Mexico, where the crop is a staple used in tortillas.
On Thursday, Cuban leader Fidel Castro wrote in an editorial for the Communist Party daily newspaper that President Bush's ethanol plan could deplete corn and other food stocks in developing nations, putting the lives of 3 billion people at risk worldwide.
"You're in the middle of an emergence of a food versus fuel debate," said Lincoln Ellis, director of asset management for the Linn Group, a Chicago-based privately held financial trading business focusing on commodities and futures. "This is the pregame show. We haven't even hit the first quarter."
Corn is a key ingredient in many foods, from corn syrup found in candies and cough syrup to feed used in meat production.
Chicken producers welcomed the planting report, hoping that an increased corn supply would reduce feed costs that have led to a 40 percent rise in chicken prices. But they noted that the bigger corn harvest would come at the expense of soybean acres, expected to drop by 11 percent.
"This is definitely a mixed report," Bill Roenigk, senior vice president and chief economist at the National Chicken Council, said in a statement.
Livestock and dairy producers also were optimistic that increased corn production could lead to a decline in feed prices. That presumption showed up in the stock prices for chicken producers on Friday. The shares of Pilgrim's Pride Corp., Tyson Foods Inc. and Sanderson Farms Inc. all rose after the news.
Corn for May delivery was trading at $3.74 a bushel Friday on the Chicago Board of Trade, down 5.1 percent, or 20 cents from Thursday, the daily limit for loss set by the board.
Corn prices had fallen about 17 percent from their Feb. 26 10-year high of $4.50.
Agriculture industry analyst David Driscoll, of Citigroup Research, said in a report to investors Friday that he expects the increased corn acres to cause the price of corn to fall to about $3 a bushel by December.
Corn had been stuck at around $2 a bushel for years before the ethanol boom lifted prices.
Bob Ray, a senior vice president at the Chicago Board of Trade, said predictions that corn prices will continue to decline because of plentiful supply from a huge harvest must be balanced with increasing demand from the export market.
Both China and India have sent signals recently that they'll import significant amounts of U.S. corn. The Chinese can't raise enough corn to feed their rapidly growing livestock market and India has recently lowered tariffs, indicating plans to import grains from the United States.
A wild card also could be the European Union, which also has to meet required renewable fuel mandates and doesn't have enough land available to set aside for grains to make into ethanol.
John M.A. Roy, an ethanol analyst for WR Hambrecht and Co., predicts that ethanol demand will grow by at least 32 percent in 2007.
"Overall this was a good report for ethanol producers and could help their stocks short-term, but the issue of high priced corn is not over," Roy said in a research note.
The USDA based the planting report on surveys of more than 86,000 farmers across the country.
Increased corn planting also could mean a large drop in cotton production, expected to be down 20 percent from last year.
In Arkansas, for example, farmers intend to plant 66 percent more acres in corn. Cotton acres are expected to drop from 1.2 million acres last year to 740,000 acres this year. A similar drop in cotton acreage is expected in Mississippi.
Stuart Sanderson, who farms 4,000 acres of wheat, soybeans, corn and cotton near the Tennessee River in northern Alabama, converted all of his cotton acres to corn this year, a move he expects to pay off in an extra $150 an acre.
He said all neighboring farmers he knows have converted at least 30 percent of their fields from cotton to corn.
"When corn goes over that $3 mark it really catches attention," he said. "The thing about cotton is you can't turn it into a fuel. With corn, you can eat it, you can feed it, you can turn it into fuel. With the ethanol engine, it's a really good time to be growing corn."
He doesn't anticipate a shortage of cotton, however, because domestic stockpiles remain large.
In its report, the USDA said Iowa remains on top with the most corn acres to be planted at 13.9 million -- a 10.3 percent increase from last year.
Besides a drop in soybean and cotton plantings, rice was expected to decline 7 percent to 2.64 million acres.
Some grains are expected to rise. Wheat is expected to rise 5 percent with 60.3 million acres. Other increases include: sorghum, up 9 percent; canola, up 12 percent; and barley, up 7 percent.
Figures of actual acres planted for the year will be released on June 29.
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On the Net: U.S. Department of Agriculture:
Copyright © 2007, The Associated Press
script iconunh biodiesel
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Michael Briggs
UNH biodiesel group
msbriggs@unh.edu
http:/www.unh.edu/p2/biodiesel/goals_index.html
http:/italy.thestudentzone.com/article/21801 story on biodiesel buses at unh
script iconKeene city biodiesel
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http:/www.granitestatecleancities.org/news/russellarticle.pdf
Steve Russell
Fleet services supt.
City of Keene
"Biodiesel, Why should it be used in my fleet?"
script iconKeene State biofuel
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keene State biodiesel first college in NH in 2002
Sources, Mary Jensen, Council on sustainability
Bud Winsor, head of grounds
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