Four months of stagnant gasoline demand combined with record ethanol production could mean that the corn-based fuel is close to hitting the blend wall. A sharp drop in ethanol prices has cut returns for ethanol producers dramatically, which meant the industry’s future may rely on the EPA’s decision to increase the blend level from 10 to 15. “Given the fact that gasoline consumption in this country simply is not growing very rapidly and has essentially been flat for some time now, we are getting to the point where we simply have absorbed as much ethanol as we can under the current E10 legislation,” said Gerry Bange, USDA Outlook Board. (Domestic Fuel) Read more.

California dairies are being wooed by other states with large incentives and the promise of fewer regulations. At least eight states, including Texas and Iowa are looking to boost their revenue by bringing in dairies. Air and water quality rules in California along with having to report odometer readings on farm vehicles is turning into a “regulatory nightmare for farmers,” according to Michael Marsh, chief executive of the Western union Dairymen in California. The number of dairies in the state has dropped from 2,200 in 1999 to 1,700 in 2009. Meanwhile, the Texas cow population has increased from 17,000 in 2000 to more than 200,000 in 2010. (The Associated Press). Read more.

USDA has confirmed the presence of a fungal disease in Florida that attacks citrus fruits and causes early fruit drop and reduces crop yields. Cuignardia citricarpa or citrus black spot — a fungal disease marked by dark, speckled spots on the rinds of fruit — was found during a routine survey of an orange grove in Collier County. According to USDA, work is being done to limit the spread and impact of the disease through regulatory action, education and informed compliance. Review the press release.

The last sugar plantation in Hawaii could provide jet fuel for the Navy. In a series of public and private partnerships announced by USDA on Wednesday, federal officials said they will budget millions to study producing advanced biofuels from sugarcane grown at Hawaiian Commercial & Sugar’s fields in Maui. (BusinessWeek) Read more.

Researchers at the University of Minnesota will begin a three-year study to solve the declining honey bee mystery. The study, announced Wednesday, will use scientists from across the country to analyze the effects of pesticides and environmental factors on the health of honey bees in North Dakota, the leading honey bee state. Pollination provided by honey bees is needed for plants to fertilize and produce seeds. Honey bees have been mysteriously dying off for the past four years and from September 2008 to April 2009, bee colonies decreased by nearly 29 percent. (The Minnesota Daily). Learn more.

A series of public and private partnerships were announced by USDA on Wednesday that will help establish commercial production of biofuels and other renewable energy systems in Hawaii for use by the U.S. Navy. The partnerships were made in support of a memorandum of understanding signed by USDA and the U.S. Navy earlier this year to move the military branch toward greater use of biofuels. It also serves as part of President Obama’s vision for a coordinated federal effort to build a clean energy economy. Read more.

USDA released its Open Government Plan yesterday in an effort to integrate transparency and participation into the agency’s daily operations. “We owe the American people an open and transparent government, but to make the government as effective as possible in completing the people’s business, we need our citizens to participate and collaborate with us,” said Agriculture Secretary Tom Vilsack. “This is an unprecedented effort to open the government and work with the people it serves.” Review the press release.

The state of Kansas has made plans to include agriculture as part of its emergency preparedness plans, even on the county level. State officials, emergency managers and other leaders attended a workshop designed to build capacity to handle agricultural issues during an emergency or disaster. Foreign animal diseases, natural disasters or attacks on the U.S. could affect the food supply and have a major economical impact across the country. (Cattle Network). Learn more.