Speaking of policy; Dairy Profit Weekly (DPW) reports that a court ruling apparently paves the way for increased ethanol use. The U.S. Appeals Court for the District of Columbia Circuit sided with the Environmental Protection Agency and its partial waiver approval for E15 ethanol (15 percent ethanol/85 percent gasoline) fuel for model year 2001 and newer light duty vehicles and all flex fuel vehicles which represents nearly two-thirds of all vehicles on the road.

Food, auto engine and oil refinery industry trade associations had challenged the approval of E15. The food industry said E15 approval would lead to higher corn and food prices. Auto engine makers said E15 could open them to lawsuits if engines malfunctioned. 

Since the initial waiver filing in March 2009, vehicles were tested using E15, health effects data on E15 was collected and approved, and a first-of-its-kind misfueling mitigation plan was required and approved in order for retailers to offer E15. Currently, the market for ethanol confined to E10 blends has been saturated, according to the Renewable Fuels Assoc. 

Allowing ethanol blends of up to E15 for 2001 and new vehicles, as well as increasing the availability of higher level ethanol blends up to E85, will open more markets to the domestic renewable fuels industry. The impact won’t be immediate, says DPW. Only one Kansas retailer offers E15.

Meanwhile; the EPA opened a 30-day comment period on a request seeking a temporary waiver of Renewable Fuel Standard (RFS) volume requirements. The standard, which mandates the amount of ethanol that must be used annually, has been seen as a driving force behind reduced corn supplies and higher prices for dairy cattle feed. Dairy, livestock and food industry representatives, joined by more than 100 members of Congress and several state governors, have requested a temporary waiver to the standard. EPA has 90 days to decide whether a waiver should be granted.

And California’s Department of Food & Agriculture turned down a hearing request to consider changes to its pricing formula for milk used in cheese production, and a request for an emergency increase of 50 cents per hundredweight on all classes of milk produced in the state. Dairy farmers had sought the changes to help cover skyrocketing feed prices but Ag Secretary Karen Ross is forming a task force to look at the pricing structure and come up with long-term solutions.

National Milk has joined nearly 40 other farm and ranch organizations to raise public awareness of the need for Congress to pass a new farm bill before current farm programs expire in September. The coalition, called Farm Bill Now, comprises associations and coalitions representing commodity crops, livestock, specialty and minor crops, energy and bio-based product groups, farm cooperatives and financial groups, as well as the nation’s two largest farm groups, the American Farm Bureau Federation and the National Farmers Union. Details are posted at www.farmbillnow.com

And, a petition was circulated this week from Milkweed Editor Pete Hardin asking USDA Agriculture Secretary Tom Vilsack to use his authority to call an emergency hearing to consider raising minimum milk prices paid to farmers to deal with one of the worst cost-income squeezes in history. Details are posted at www.themilkweed.com

July milk production was not down as much as expected. The USDA’s preliminary estimate is 15.52 billion pounds in the top 23 states, virtually unchanged from June but up 0.8 percent from July 2011. The 50-state total, at 16.6 billion, was up 0.7 percent. Revisions added 2 million pounds to the June 23-state estimate, now put at 15.5 billion, 1.1 percent above a year ago.

July cow numbers, at 8.5 million head, were down 7,000 from May but 41,000 more than a year ago. Output per cow averaged 1,826 pounds, up 6 pounds from a year ago.

California production was down 1 percent despite a 13,000 cow increase, but output per cow was down 35 pounds. Wisconsin was up 4.4 percent on a surprising 65 pound gain per cow and 7,000 more cows. Idaho saw a half percent increase on a 20 pound gain per cow while cow numbers were off 3,000.

New York was up 1.9 percent, thanks to a 35-pound gain per cow. Cow numbers were unchanged. Pennsylvania was down 1.5 percent due to a 10 pound loss per cow and 5,000 fewer cows. Minnesota was up 1.1 percent on a 25 pound gain per cow but cow numbers were down 2,000 head.

Other states of interest included Michigan, up 4.1 percent on 10,000 more cows and a 25-pound gain per cow. Missouri was up 4.7 percent on an 85-pound gain per cow, though cow numbers were off 2,000 head. New Mexico was down 2.7 percent due to a loss of 45 pounds per cow and 2,000 fewer cows. Texas output took a 2.4 percent decline on a 65 pound loss per cow but cow numbers were up 5,000 head. Washington State saw a 4.4 percent decline on a 35 pound drop per cow and 4,000 fewer cows.