The following opinion piece was authored by MABA President Chuck Lippstreu in the March 31, 2022 edition of the Detroit News. You can view the original story here.
Opinion: Michigan should invest in homegrown biofuels to ease pain at the pump
As gas prices hit record highs with little hope of reprieve on the horizon, now is the perfect time to use more affordable biofuels made right here in Michigan. Replacing foreign oil with plant-based biofuels in our cars, trucks and SUVs will grow Michigan’s economy and put more money in the hands of consumers and family farmers.
The average U.S. household spent more than $2,000 on gasoline before Russia’s brutal invasion of Ukraine sent energy prices soaring even higher, spotlighting our nation’s dependence on foreign oil. With the price of a gallon of regular gasoline in Michigan hovering around $4.20 — about 85 cents more than its cost just a month ago — it’s time to take a serious look at homegrown alternatives.
One substitute is shifting from standard E10 gasoline to E15, a renewable fuel blend made with 15% homegrown biofuel. E15 is EPA-approved for all cars, trucks and SUVs made since 2001. The other alternative is E85, which is approved for use in all Flex-Fuel vehicles. Both cost drivers less.
E15 is already offered at more than 2,300 locations across 30 states. Other Midwest biofuel-producing states like Minnesota, Iowa and Wisconsin are making the most of E15 and E85. Unfortunately, access to both renewable fuel blends in Michigan lags far behind. Only 10 stations in Michigan offer E15 today.
To make this fuel more readily available to all drivers across Michigan, we need to incentivize more gas stations to offer it — a lot more. That’s where Senate Bill 814 comes into play. Introduced by state Sen. Kevin Daley, R-Lum, this common-sense proposal would create a 5-cent-per-gallon tax credit for E15 and a 0.085-cent-per-gallon tax credit for E85. These credits would help provide greater access to less expensive fuels across the state.
SB 814 would also complement important efforts underway at the federal level to ensure E15 is available to more American drivers, year-round.
If stations across Michigan made a full shift to E15, it would add nearly $530 million in Gross Domestic Product to Michigan’s economy and save millions of dollars in fuel costs, according to an ABF Economics study. That uptick in demand for the agricultural industry would generate $166 million of income for Michigan households and nearly $47 million in state and local tax revenue, the study said.
Our nation continues to rely on foreign energy supplies that too often come from nations hostile to the United States. It has to stop — and there’s an alternative that starts with Michigan farmers and businesses.
By expanding access to Michigan-made biofuels, we can ease pain at the pump and secure energy security for our nation. SB 814 will help deliver lower-cost E15 and E85 across the state — just when we need it most.
Border vaccine requirements have taken up to 50% of Michigan truck drivers out of international service as costs, uncertainty pile up
LANSING, Mich. – In a letter sent this week to federal leaders, the Michigan Agri-Business Association (MABA) echoed a call from national agricultural organizations for the U.S. and Canada to exempt essential truck drivers from COVID-19 vaccination requirements at the border. These policies have prevented up to half of Michigan commercial truck drivers from crossing the Michigan-Ontario border, hampering agricultural trade with Michigan’s top export partner.
“The supply chain crisis is getting worse, not better, and vaccine requirements at the border have fueled uncertainty among Michigan’s rural businesses and farmers during the critical spring planting season,” said Chuck Lippstreu, president of the Michigan Agri-Business Association. “Michigan agriculture relies on truck drivers to bring fertilizer and other products into our state, and to facilitate export sales to Canada. The truck driver shortage has added to delays and cost increases at a time when agriculture is already navigating historic market disruption.”
The agriculture and trucking industries estimate border vaccine requirements have disqualified 30-50% of Michigan truck drivers from traveling to Canada. The policies were announced late last year and enacted in January by both the U.S. and Canadian governments.
An earlier March 7 letter to President Joe Biden sent by 21 national agricultural groups asked the administration to work with the Canadian government to rescind the cross-border vaccine requirements for workers facilitating essential commerce, including truck drivers.
A substantial amount of fertilizer moves into Michigan from Canada, especially during March, April and May during peak fertilizer application seasons in the northern states. Michigan also depends on truck drivers to transport grain products, animal feed ingredients and many other agricultural products both ways across the border.
“As rural businesses in Michigan navigate a supply chain crisis, our state needs common-sense policies that clear the way for as many truck drivers as possible to cross the U.S.-Canada border,” said Lippstreu. “Providing targeted exemptions to vaccine requirements for these drivers will make a direct and immediate difference for Michigan’s farmers, rural businesses and rural communities.”
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About the Michigan Agri-Business Association: The Michigan Agri-Business Association is a strong advocate and dedicated resource for Michigan’s food and agriculture sector. The Association’s 300 members include agricultural retailers that provide seed, fertilizer, crop protection and technology to farmers; businesses that handle and export grain; animal feed suppliers; food processors; logistics and beyond.
January 18, 2022 — Michigan Agri-Business Association President Chuck Lippstreu today issued the following statement of support for Senate Bill 814, introduced by Senator Kevin Daley, which would expand the availability of clean-burning, renewable fuels in Michigan.
“Expanding the use of clean, renewable ethanol in our state will be a win for Michigan families, Michigan’s environment and Michigan’s rural communities. We applaud Senator Kevin Daley for introducing this common-sense measure to support the broader use of clean-burning, higher ethanol blends that cut down on harmful pollution, reduce our dependence on fossil fuels and benefit Michigan’s economy.”
SB814 would create a five-cents-per-gallon tax credit for the sale of E-15 fuel and an 8.5-cent-per-gallon credit for the sale of E-85 fuel. Both of the credits would expire after five years unless renewed by the Legislature.
January 18, 2022 — Members of the Michigan Agri-Business Association, a trade association representing nearly 300 companies across the food and agriculture value chain, elected the association’s 2022 officers and a new member of its Board of Directors at its annual meeting Monday, January 10.
Officers for 2022 will be:
In addition, Michael Rumsey, Senior Manager of Operations for The Andersons, Inc. was elected to serve on the Board.
Current Board member John Tilt, General Manager of Vita Plus Corporation was selected to serve on the MABA Executive Committee.
“I am honored to serve as Board Chair of the Michigan Agri-Business Association for the coming year, having been involved with MABA throughout my career,” said Geers. “MABA remains a strong advocate and dedicated resource for Michigan agriculture, and I am committed to working with the association’s members to advance our industry.”
About the Michigan Agri-Business Association: The Michigan Agri-Business Association serves as a strong advocate and dedicated resource for Michigan’s food and agriculture sector. The Association’s 300 members span the agricultural value chain. They include agricultural retailers that provide seed, fertilizer, crop protection and technology to farmers; businesses that handle and export grain; animal feed suppliers; food processors; logistics companies and beyond. Learn more at www.miagbiz.org.
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