Marty Andreas Remembered

Cedar Memorial

Martin Lowell Andreas (Marty) at age 77 passed away on May 2, 2016 of cancer.

Former Chairman & CEO of ADM, Allen Andreas recently stated, “Marty Andreas was a key executive in the management of ADM for 35 years.  He was an effective leader and a committed advocate for American agriculture.  By forging essential relationships for the agricultural industry with both farmers and consumers, Marty drove innovation with the creation of new products and pioneered the development of nutritious foods and clean, renewable sources of energy.  His eternal optimism and boundless energy was always focused upon the ability of the farm community to provide the foundation for a better quality of life for all.  Marty will be missed by many, but he leaves a significant legacy of an improved world for future generations.”

Dan Kelley, Chairman of the Illinois Agriculture Leadership Foundation said, “Marty Andreas was a man of many interests and he pursued all of them with great passion.

Bill Ray, Agrinet® News remarked, “Marty Andreas was as comfortable with world leaders and presidents as he was with farmers, family and friends.  His legacy includes molding agricultural trade expansion across the globe. A great visionary leader and colleague, he is greatly missed.”

A Celebration of Life honoring Marty Andreas will be held:
June 24, 2016 | 11:00 a.m. – 1:00 p.m.
Cedar Rapids Country Club | 550 27th St. Dr. SE | Cedar Rapids, IA 52403

May 6, 2016, by Chris Lusvardi Herald & ReviewDecatur, IA

The onetime face of Archer Daniels Midland Co. in the community who died earlier this week is being praised for what he did to benefit the agriculture industry.

Martin L. Andreas, known as “Marty” to most, retired in 2005 as senior adviser to the chief executive after nearly 35 years with the company. Andreas was never the official leader of the agribusiness giant, but his role was seen as instrumental to gathering support for ADM’s interests around the world.

Andreas, 77, died Monday at the Dennis and Donna Oldorf Hospice House of Mercy in Hiawatha, Iowa, which is near Cedar Rapids.

Andreas moved to Solon, another small town in the Cedar Rapids area, after retiring from ADM. He was a member of the Andreas family, which left a legacy leading the company with a number of family members in executive roles.

Notably, Marty Andreas was the nephew of longtime CEO Dwayne Andreas and cousin to onetime Chairman and CEO G. Allen Andreas.

Current Chairman, President and CEO Juan Luciano acknowledged Andreas’ death in remarks Thursday during the company’s annual meeting at the James Randall Research Center in Decatur.

“Marty’s tireless advocacy on behalf of ADM and American agriculture was without equal,” Luciano said. “ADM and our industry are tremendously grateful for his service. On behalf of all of us at ADM, I want to extend condolences to his family, friends and many former colleagues here today.”

During his career working for ADM, Andreas was a founding member in 1981 of the Renewable Fuels Association. He served on the trade group’s board of directors for more than 25 years as it represented the ethanol industry.

“We remember him as a visionary leader, an unabashed optimist and a generous soul who cared deeply about value-added agriculture generally and ethanol specifically,” RFA President and CEO Bob Dinneen said. “Marty Andreas was one of the giants of the U.S. ethanol industry. It is without hyperbole or exaggeration that I say the industry would not be the success it is today without Marty’s vision, commitment and advocacy.”

Andreas’ involvement started when President Jimmy Carter gathered agribusiness together to challenge them to produce a domestic renewable fuel in the midst of the oil crisis in the 1970s, Dinneen said. He said ADM accepted the challenge, relying on Andreas to build a market from nothing.

Andreas’ involvement continued into the early 2000’s to challenge the industry to strive for a much larger share of the U.S. motor fuel market, which Dinneen said helped to create the political momentum for the Renewable Fuel Standard.

“Marty Andreas will be missed,” Dinneen said. “But his legacy remains with each gallon of ethanol produced to enhance U.S. energy, economic and environmental security.”

Andreas’ career started in 1970 as Executive Vice President of Corn Sweeteners, a business in Cedar Rapids he started with his father, Albert, that would be sold to ADM 3 years later.

He was there later in that decade when ADM embraced the high fructose corn syrup industry and the product became an integral ingredient for American soft drinks.

Andreas later worked as president of ADM’s Corn Division and held several executive positions, including director of corporate marketing. He was seen as the public face of ADM, helping to orchestrate the Million Flower Project community beautification project in Decatur and attending events to mingle with local business people.

Andreas was noted for sending out photocopies of company news to colleagues all over the country.

After retiring, Andreas spent another year as a consultant to the company in the areas of energy and government affairs. He worked as president of his family’s stock investment business and was involved with civic and business projects while serving on the boards of Mount Mercy College in Cedar Rapids and Trees Forever in Marion.

Dairy Market Protection Program Continues To Develop

A dairy farm safety net program created in the last Farm Bill continues to progress in its comprehensive coverage of producers.  Rod Bain. Farm Service Agency Administrator Val Dolcini. Chris Galen of the National Milk Producers Federation. National Farmers Union President Roger Johnson.

Agriculture Secretary Vilsack on the Latest Quarterly Agricultural Trade Forecast

May 27, 2016, WASHINGTON- American farmers and ranchers continue to compete and win in foreign markets. Even in today’s environment of lower commodity prices, abundant global supplies and a strong U.S. dollar, exports remain a key pillar supporting U.S. agriculture and rural communities. Today’s quarterly agricultural trade forecast shows the resilience of our agricultural sector despite the economic headwinds. Export volumes continue to post near-record totals across many key products.

Oilseed and product exports are forecast at $26.1 billion, up $700 million, and grain and feed exports are forecast at $27.7 billion, up $500 million from the February forecast. The report also underscores the importance of creating new export opportunities for our producers by knocking down tariffs and opening new markets through free trade agreements.

Exports comprise 20 percent of U.S. farm income, drive rural economic activity, and support more than one million American jobs. We have the opportunity to expand those benefits even further through passage of new trade agreements such as the Trans-Pacific Partnership. A report published by the International Trade Commission just last week shows that the TPP will significantly expand U.S. exports to some of the world’s fastest-growing economies and add an additional $10 billion to annual U.S. agricultural output by 2032.

Trade agreements such as the TPP are key to a stable and prosperous farm economy. They can help boost global demand for U.S. farm and food products, increase U.S. market share versus our competitors in key markets, and ensure that our farmers and ranchers have stable and predictable markets for the quality goods they produce. Congress should move quickly to approve the TPP.

Cattle Herd Expansion May Slow

If the numbers in USDA’s latest cattle feedlot report are accurate, the rapid expansion in the cattle herd may slow down.  Larger than expected placements went into feedlots during April, 1.66 million head, 7% above April a year ago.  Gary Crawford and USDA livestock analyst, Shayle Shagam.

Farm Credit System Faces Challenges as Farm Incomes Fall

Officials say the nation’s Farm Credit System is in a strong position to address the increased needs of farmers faced with lower incomes. Gary Crawford, Rep. Pat Roberts,  Jeffrey Hall.  Ken Spearman, Chairman of the Farm Credit Administration Board, telling a Senate hearing that the Farm Credit System is in a very strong financial situation.

ITC Report Outlines Benefits to Agriculture of Trans-Pacific Partnership

U.S. Chief Trade Negotiator Ambassador Michael Froman says the new ITC report on the Trans-Pacific Partnership trade deal names agriculture as the chief beneficiary of TPP.  Lawmakers are being briefed on a new report projecting major benefits from the Trans-Pacific Partnership. Gary Crawford, Ambassador Michael Froman and Secretary Tom Vilsack.

USITC Releases Report Concerning the Likely Impact of the Trans-Pacific Patnership (TPP) Agreement

May 18, 2016, Washington D.C. – The U.S. International Trade Commission (USITC) released its report assessing the likely impact of the Trans-Pacific Partnership (TPP) Agreement that the President has entered into with Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

The USITC’s report, Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors, provides an assessment of the likely impact of the Agreement on the U.S. economy as a whole and on specific industry sectors and the interests of U.S. consumers, as requested by the U.S. Trade Representative and required by the Bipartisan Congressional Trade Priorities and Accountability Act of 2015.

In making its assessment, the Commission investigated the impact the agreement will have on the U.S. gross domestic product; exports and imports; aggregate employment and employment opportunities; and the production, employment, and competitive position of industries likely to be significantly affected by the agreement. In preparing its assessment, the Commission also reviewed available economic assessments regarding the Agreement, including literature concerning any substantially equivalent proposed agreement. The Commission provides a description of the analytical methods used and conclusions drawn in such literature, and a discussion of areas of consensus and divergence between the Commission’s analyses and conclusions of other economic assessments reviewed.

Main Findings

• The Commission used a dynamic computable general equilibrium model to determine the impact of TPP relative to a baseline projection that does not include TPP. The model estimated that TPP would have positive effects, albeit small as a percentage of the overall size of the U.S. economy. By year 15 (2032), U.S. annual real income would be $57.3 billion (0.23 percent) higher than the baseline projections, real GDP would be $42.7 billion (0.15 percent) higher, and employment would be 0.07 percent higher (128,000 full-time equivalents). U.S. exports and U.S. imports would be $27.2 billion (1.0 percent) and $48.9 billion (1.1 percent) higher, respectively, relative to baseline projections. U.S. exports to new FTA partners would grow by $34.6 billion (18.7 percent); U.S. imports from those countries would grow by $23.4 billion (10.4 percent).

• Among broad sectors of the U.S. economy, agriculture and food would see the greatest percentage gain relative to the baseline projections; output would be $10.0 billion, or 0.5 percent, higher by year 15. The services sector would benefit, with a gain of $42.3 billion in output. Output in manufacturing, natural resources, and energy would be $10.8 billion (0.1 percent) lower with the TPP Agreement than it would be compared with baseline estimates without the agreement.

• Many stakeholders consider two new electronic commerce provisions that protect cross-border data flows and prohibit data localization requirements to be crucial to the development of cross-border trade in services, and vital to optimizing the global operations of large and small U.S. companies in all sectors.

• TPP would generally establish trade-related disciplines that strengthen and harmonize regulations, increase certainty, and decrease trade costs for firms that trade and invest in the TPP region. Interested parties particularly emphasized the importance of TPP chapters addressing intellectual property rights, customs and trade facilitation, investment, technical barriers to trade, sanitary and phytosanitary standards, and state-owned enterprises.

Ag Industry Comments:

The National Pork Producers comment, ” The Trans-Pacific Partnership (TPP) agreement will be good for U.S. agriculture, U.S. business and the U.S. economy.”  The regional trade deal account for nearly 40% of global GDP with the combined countries having more than 800 million consumers.  Iowa State University economist Dermot Hayes estimates the agreement will exponentially inrease U.S. pork expots to the Asia-Pacific region and help create more than 10,000 U.S. jobs ted to those expoorts.

According to the U.S. International Trade Commission (ITC) report, the TPP agreement is estimated to increase annual U.S. GDP by nearly $43 billion and to create almost 128,000 U.S. jobs by 2032, the year the agreement will be fully implemented; U.S. agricultural exports would rise by about $7.2 billion a year. The report estimates that 10 years after implementation, annual GDP would be $67 billion and 174,000 jobs will have been created.

NPPC President John Weber, a pork producer from Dysart, Iowa. “America’s pork producers strongly support the TPP, and we urge Congress to quickly pass it…Not only will the TPP level the playing field for U.S. exports and, in fact, expand them, but it has the potential to become even bigger. For all intents and purposes, the agreement has become the global vehicle for free trade.”  Weber said NPPC has expressed concern about a U.S. delay in approving – or even a rejection of – the trade agreement, pointing out that other countries are negotiating free trade deals in the Asia-Pacific region, including the China-led, 16-nation Regional Comprehensive Economic Partnership.  “The U.S. needs to act more quickly to get the TPP approved and implemented…If we delay, we fall behind. And we certainly cannot afford either economically or geopolitically to walk away from the fastest growing region in the world.”

To quote President Obama (May 2), “The world has changed. The rules are changing with it. The United States, not countries like China, should write them. Let’s seize this opportunity, pass the Trans-Pacific Partnership and make sure America isn’t holding the bag, but holding the pen.”

EPA Proposes Modest Biodiesel Growth Under Renewable Fuel Standard

Biodiesel Industry Calls for Stronger Volumes in Final Rule

May 18, 2016, Washington, D.C. – House Agriculture Committee Ranking Member Collin Peterson made the following statement after the EPA released its draft 2017 Renewable Fuels Standard (RFS) targets.  “While the higher targets move in the right direction, the numbers don’t reflect the potential that exists for biofuels use and production in the United States.  Following the numbers in the law would ensure a strong biofuels industry, which would have a positive impact on the rural economy, and advancements in the next generation of domestic biofuels.”

Following the EPA’s proposed Renewable Fuel Standard (RFS) Renewable Volume Obligations (RVOs) for 2017, Americans for Energy Security and Innovation (AESI) Chairman Jim Talent issued the following statement:

“The Obama Administration’s proposed targets fall short of the goals for energy security that Congress outlined in the Renewable Fuel Standard. America’s domestic biofuels industry has already proven that it can surpass these targets, and our goal should be to maximize the renewable choices that consumers have at the pump. The EPA is moving in a positive direction, but we are leaving homegrown energy on the table, and that means more money and influence will flow to the foreign nations that seek to manipulate the global oil market.

“Thanks to the RFS, the domestic biofuels industry has invested billions of dollars into domestic energy production, supporting 852,000 American jobs. Repeatedly, the administration has promised to stand behind American investments in alternative energy solutions, but that commitment must be matched by action in areas other than wind and solar if the administration is serious about its own climate change agenda. Corn-based ethanol slashes greenhouse gas emissions by 34 percent, and better targets from the EPA will promote even faster growth in cellulosic biofuels that can cut emissions by 100 percent or more.  Oil prices may have dipped, but experience tells us that we cannot wait for the next global crisis to take energy security seriously. As the administration works to finalize its proposal for 2017, we urge policymakers to push ahead with targets that will protect consumers, clean our air, and make America more energy secure.”

The National Biodiesel Board (NBB) called for the Obama Administration to strengthen an EPA proposal that would raise the biodiesel volume requirement under the Renewable Fuel Standard by only 100 million gallons in 2018.   NBB Vice President of Federal Affairs Anne Steckel said that without stronger growth in the final rule, the administration would be missing an opportunity to reduce carbon emissions while helping to reshape America’s transportation sector.

“We appreciate the EPA’s timeliness in releasing these volumes and its support for growing biodiesel use under the RFS, but this proposal significantly understates the amount of biodiesel this industry can sustainably deliver to the market,” Steckel said of the proposal for 2.1 billion gallons of biodiesel. “We have plenty of feedstock and production capacity to exceed 2.5 billion gallons today, and can certainly do so in 2018.”

Biodiesel – made from a diverse mix of resources such as recycled cooking oil, soybean oil and animal fats – is the first and only EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. It has made up the vast majority of Advanced Biofuel production under the RFS to date, and according to the EPA, reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel.

The EPA proposal would establish a 2.1-billion-gallon Biomass-based Diesel requirement in 2018, up from the 2-billion-gallon requirement for 2017. NBB believes EPA can easily call for at least 2.5 billion gallons in 2018 after nearly 2.1 billion gallons of biodiesel were delivered under the RFS in 2015. There is substantial unused production and distribution capacity in the United States, and the U.S. industry has already diversified its feedstocks and expanded into renewable diesel to increase its production.

“We have made tremendous progress in cleaning up vehicle emissions but the fact remains that petroleum still accounts for about 90 percent of our transportation fuel,” Steckel said. “This is dangerous and unsustainable, and the RFS is the most effective policy we have for changing it.”

“Biodiesel specifically is the most successful Advanced Biofuel under the RFS,” Steckel added. “It is proving that Advanced Biofuels work. But we need meaningful RFS growth to continue making a real dent in our oil dependence and to continue driving investment. On the heels of the Paris climate accord, this is not the time for a piecemeal approach. We need bold action.”

The RFS – a bipartisan policy passed in 2005 and signed into law by President George W. Bush – requires increasing volumes of renewable fuels in the U.S. fuel stream. Substantially expanded in 2007, the law requires increasing volumes of Advanced Biofuels in the coming years. Under the law, Advanced Biofuels must reduce lifecycle greenhouse gas emissions by at least 50 percent compared to petroleum fuels.

Biodiesel falls under the Biomass-based Diesel category, which is an Advanced Biofuel category intended to ensure that the RFS also addresses the diesel fuel market, not just gasoline. The Biomass-based Diesel category is filled by both biodiesel and renewable diesel, a similar diesel alternative made from the same feedstocks using a different technology.

In addition to calling for a higher Biomass-based Diesel volume, NBB is advocating a stronger overall Advanced Biofuel volume.