Biomass update in 2014 Farm Bill Highlights

Farm Safety Net

• Eliminates direct payments and continues crop insurance.

• Producers will choose between the Price Loss Coverage and Agricultural Risk Coverage. Establishes the Dairy Margin Protection program.

• Restores livestock disaster assistance for losses dating back to 2011, and establishes a permanent livestock disaster program.

Rural Development

• Continues USDA Rural Development programs. Provides $15 million to support rural business development and growth through the Rural Microentrepreneur Assistance Program.

• Provides $150 million for water and wastewater infrastructure.

• Reserves 10% of certain programs for regional, long-term investments to better promote economic development through regional planning and leveraging of resources. Trade and Foreign Agriculture

• Continues authorization for $200 million annually for international market development.

• Authorizes up to $80 million for LRP and makes the program permanent.

• Provides more flexibility for USAID to use cash assistance in administering the Food for Peace program.

• Increases flexibility for assistance in emergency situations. Research

• Endows $200 million for a foundation for agricultural research.

• Doubles the funding for SCRI to $80 million annually

Conservation

• Consolidates conservation programs for flexibility, accountability and adaptability at the local level.

• Links basic conservation practices to crop insurance premium subsidy for highly erodible lands and wetlands.

• Builds upon previous successful partnerships and encourages agricultural producers and partners to design conservation projects that focus on and address regional priorities.

Renewable Energy and Energy Efficiency

2014 Farm Bill

• Reauthorizes and provides $880 million for energy programs established in the 2008 Farm Bill.

• Expands Biorefinery Assistance Program to include biobased product and renewable chemical manufacturing.

• Expands Biopreferred program to include forestry products.

Forestry

• Makes Stewardship Contracting Authority permanent, allowing FS to conduct restoration work and stimulate job growth.

• Makes the Good Neighbor Authority permanent and available nationwide.

Nutrition

• Maintains SNAP eligibility for millions of low-income families.

• Provides $200 million for job training and $100 million to increase fruit and vegetable purchases.

• Provides $250 million in additional funding for TEFAP.

• Authorizes $125 million for the Healthy Food Financing Initiative to make nutritious food more accessible.

Next Generation Farmers and Ranchers

• Provides $100 million for the Beginning Farmers and Ranchers Development Program.

• Increases access to capital and supports crop insurance and risk management tools, including reducing crop insurance premiums during the first 5 years of farming.

Local and Regional Food Systems

• Renames FMPP to “Farmers Market and Local Food Promotion Program” and provides $30 million annually.

• Continues to reserve funds in the Business & Industry Loan Program for locally- and regionally- focused businesses.

• Advances growth of local and regional food systems with $65 million for Value Added Product Market Development Grants.

Specialty Crops and Organics

• Provides $72.5 million annually for SCBG.

• Provides new resources for organic farmers, including funding the Organic Cost Share program at $11.5 million annually.

• Increases funding for pest and disease management and disaster prevention to $62.5 million per year, and $75 million in FY 2018 and beyond.

USDA is an equal opportunity provider and employer. March 2014

Chart Biodiesel savings vs Diesel

Biodiesel Savings Chart supplied by USAFreedomBioFuel

Look at the money saved at $3.00 compated to $4.00 per gal...that's some serious bank.

Industrial Hemp Biomass info via Pure Vision Technology

http://www.purevisiontechnology.com/pure-hemp.html

FAQ:

What is biomass?

Also called lignocellulosic biomass and cellulosic biomass, biomass is green plant matter or biological mass (biomass) that is primarily made up of cellulose, hemicellulose and lignin. It is generally the “non-food” portion of plants. For example, using the corn plant, the kernels are starch (food), while the leaves, stalks and cobs are the biomass portion. In hemp, everything but the seed oil is considered to be biomass.

What are the intermediate products from biorefining of industrial hemp?

The three primary primary components of biomass are cellulose, hemicellulose and lignin. The four dominant output product streams from PureHemp biorefineries are (1) glucose sugar and (2) pulp from cellulose; (3) xylose sugar from hemicellulose; and (4) lignin. These four intermediates are the foundation for producing a myriad of bioproducts including pulp-based products (tissues, toilet paper, etc.) alcohols, chemicals, fuels, nutraceuticals, pharmaceuticals, binders, coatings, adhesives, and other precursors for manufacturing plastics and composites.

Article continues:

http://www.purehemptech.com/FAQ/

HEMP as Biomass

Hemp biomass as a source of fuel is the most under-exploited use of hemp, mostly because it is not economically feasible at the present time. The use of any biomass to produce energy is called 'chemurgy' – derived from 'chemicals' and 'energy' – as opposed to petrochemical products. Almost any biomass material can be converted to create methanol or ethanol, and these fuels burn cleanly with less carbon monoxide and higher octane. Hemp is a valuable, viable source of woody biomass. One acre of hemp is approximately 75 percent cellulose, whereas one acre of trees is only 60 percent – hemp can give two crops per year whereas trees give one crop every 20-30 years. Hemp stalk can be converted into 500 gallons of methanol/acre.

Did you know: The diesel engine was invented to burn fuel from agricultural waste, yet ended up burning unrefined petroleum.

Other interesting factors to support biofuel production and use:

Particulate Matter. The exhaust emissions of particulate matter from biodiesel were 30 percent lower than overall particulate matter emissions from diesel. Breathing particulate has been shown to be a human health hazard.

Carbon Monoxide. The exhaust emissions of carbon monoxide (a poisonous gas) from biodiesel are 50 percent lower than carbon monoxide emissions from diesel.
Sulphur. Sulphur emissions are essentially eliminated with pure biodiesel. Ethanol contains no sulphur.

Hydrocarbons. The exhaust emissions of total hydrocarbons (a contributing factor in the localised formation of smog and ozone) are 93 percent lower for biodiesel and diesel.
Biodegradability. Biodiesel degrades about four times faster than petroleum diesel. Within 28 days, pure biodiesel degrades 85-88 percent in water.

Flash Point. The flash point of a fuel is defined as the temperature at which it will ignite when exposed to a spark or flame. Biodiesel's flash point is over 300 degrees Fahrenheit, whereas petroleum based diesel fuel's flash point is around 125 degrees Fahrenheit.
Acute Oral Toxicity. Biodiesel is non-toxic. The acute oral LD50 (lethal dose) is greater than 17.4 gm/kg body weight. Table salt is nearly 10 times more toxic.

http://www.harbay.net/biomass.html

Industrial Hemp Farming Information and Videos

Scottys Hemp Farming Video Collection

Biodiesel Advice by USfreedomfuels

John advises:

Let me start by saying, any triglyceride oil will work for producing Biodiesel fuel. This includes beef fat, pork fat, chicken fat, and fish oils. I have even produced excellent Biodiesel from mink oil.

When you open your mind to options other than WVO, the options truly become limitless.

For example, you could use Palm oil or sunflower oil, both make great fuel.

You could use algae.

The algae need to have the water removed, then pressed to extract the oil. Algae contain about 50% oil by weight, and it is completely renewable, grows like crazy, and can be harvested from the same plates every 24 hours.

Now that I have your mind open to alternative feedstocks, I want to caution you.

Do your homework.

Each feedstock has a unique requirement for extracting, handling and processing.

Your geographical location will be the determining factor in your feedstock choice.

For example; we are currently working with a farmer from Idaho.
He is 60 miles from the nearest city.  WVO is not readily available, so he has planted a dozen acres with Camelina.

He purchased a small screw press, and he will have a yield of 5000 gallons of oil from his Camelina.

This is enough to operate his farm, and heat his home.

His first year savings based on the current off-road diesel price of $2.50 per gallon will be $8500.

Another customer from Nova Scotia had access to 700 tons of mink oil per year. Mink oil has excellent low temperature flow ability, no special handling was required.

700 tons works out to 14,000 gallons of the finest Biodiesel fuel I have ever seen.

It has the color of Kerosene, and the BTU's of #2 diesel fuel. The first year saving, based on current Canadian fuel prices will be in excess of $45,000.

Two great examples of looking outside the box!

Whether you build your fuel from WVO, Chicken Fat, Soy Beans, or Salmon, the result is the same.
You will be doing your part to reduce our dependency on foreign oil, and saving yourself some serious money.  (Or Industrial Hemp like MOhemp is planning)

Regardless of your feedstock, we have a Processor to handle the job, and give you the results you deserve!

ASTM Spec Biodiesel Fuel, Consistently!
Warm Regards,

John Harrod, President
U.S. Freedom Bio Fuels, LLC
847-756-7600
http://www.usfreedombiofuels.com
U.S. Freedom Bio Fuels LLC

369 Scout Rd
Mosinee, WI
54455

USDA Industrial Hemp in the United States

Conclusions

Current markets for bast fibers like industrial hemp include specialty textiles, paper, and composites. Hemp hurds, the inner woody portion of the plant stem, are used in various applications such as animal bedding, composites, and low-quality papers. As joint products, finding viable markets for both hemp bast fiber and hurds may increase the chances of a success- ful business venture. Hemp industry sources and some academic studies cite many potential uses for hemp fiber and hurds. However, for these applications to develop or expand, hemp will have to compete with current raw materials and manufacturing practices. The U.S. market for hemp fibers is, and will likely remain, a small, thin market. Changes in price or quantity could be more disruptive and have a greater adverse impact on market participants than would be the case in a larger market.

Since there is no commercial production of industrial fiber hemp in the United States, the “size” of the market can only be gauged from hemp fiber and product imports. The near-term, low-end size of the U.S. market for hemp as a textile fiber might be defined by considering the domestic production and acreage required to replace imports of hemp fiber, yarn, and fabric in 1999. Assuming a potential U.S. yield of 1,550 pounds of fiber per acre and using linen yarn and fabric conversion factors, the estimated import quantity of hemp fiber, yarn, and fabric in 1999 could have been produced on less than 2,000 acres of land. Given the average size of farms in the United States (near 500 acres), just a few farms could have supplied the hemp fiber equivalent of 1999 import levels.

As a specialty bast fiber, hemp’s closest competing textile fiber is linen. A longer term, high-end size of the potential U.S. market for hemp fiber could be defined as domestic production and acreage required to replace hemp and linen imports. The hemp fiber required to replace the equivalent level of hemp and linen fiber, yarn, and fabric imports in 1999 could have been produced on 250,000 acres—roughly 40 percent of 1999 tobacco acreage, 5 percent of U.S. oat acreage, or 0.4 percent of wheat acreage.

Despite the similarities between hemp and linen, there is no industry consensus as to how closely the markets for the two fibers are allied. But since hemp fiber imports were just 0.5 percent of linen imports during the first 9 months of 1999, the near-term market

potential for hemp in the United States for domestic textile production is closer to the low end of the 2,000- to 250,000-acre production-equivalent range. Moreover, the absence of a thriving textile flax (linen) production sector in this country (despite no legal bar- riers) suggests that hemp, flax’s close cousin in fiber uses and in production techniques, will be unable to sustain adequate profit margins for a large production sector to develop.

Thompson et al. (1998) estimate imports of hemp seed into North America at 1,300 tons. Given yields in Germany of about 1,000 pounds per acre, it would take 2,600 acres to satisfy the demand for hemp seed. As with fiber imports, it would take only a few aver- age-sized farms to meet this demand. Hemp seeds can be used directly as a food ingredient or crushed for oil and meal. Hemp seeds and flour are being used in nutrition bars, tortilla chips, pretzels, beer, salad dress- ings, cheese, and ice cream. The market potential for hemp seed as a food ingredient is unknown. However, it probably will remain a small market, like the mar- kets for sesame and poppy seeds. Some consumers may be willing to pay a higher price for hemp-seed- containing products because of the novelty, but other- wise hemp seed will have to compete on taste and functionality with more common food ingredients.

Hemp oil is being used as an ingredient in body-care products, such as lotions, moisturizers, and shampoos, and sold in health food stores as a nutritional supple- ment. The market for hemp oil is limited by a number of factors. First, mechanical crushing produces a lower oil yield than crushing combined with solvent extrac- tion. Nor does hemp oil undergo degumming and bleaching as do many other vegetable oils. Some con- sumers prefer an oil that has been processed without chemicals, but others may dislike hemp oil’s color or taste. Second, the oil is high in unsaturated fatty acids, which can easily oxidize, so it is not used for frying, must be kept in dark-colored bottles, and has a limited shelf life. Third, to be used as a salad oil, it will have to be tested by the U.S. Food and Drug Administration and found “generally recognized as safe.” Last, as a drying oil, hemp would have to compete on function- ality and price with current raw materials, such as lin- seed and tung oils, in established industrial markets.

Several States have published reports or authorized agronomic and economic feasibility studies of hemp production. The four reports summarized here have

Industrial Hemp in the United States USDA • 25

focused on different aspects of supply and/or demand. Their estimates of hemp costs and returns reflect these various focuses, as well as different assumed produc- tion practices and costs. However, the widest range of estimates exhibited among the reports is for stalk and seed yields and prices—not surprising given the uncer- tainty about hemp production and current and potential hemp markets. Overall, hemp production was prof- itable only at the higher end of estimated yields and prices. It seems questionable that U.S. producers could remain profitable at the low end of the estimated net

returns, particularly given the thinness of current U.S. hemp markets.

The market for hemp products might easily be over- supplied, as in Canada where the 35,000 acres of hemp produced in 1999 was seemingly more than the market could handle. The Minneapolis Star Tribune quotes the general manager of Kenex Ltd., Canada’s biggest hemp processor, as saying “It’s given us one hell of a glut of grain and fiber. There’s been a major overestimation of the market that’s out there” (von Sternberg).

26 • USDA Industrial Hemp in the United States