It will reduce the disposable income of consumers, who will forever be forced to subsidize renewable resources (just as they must now subsidize
corn ethanol producers)-- all in the name of» green energy».»
It's been a tough week for
corn ethanol producers and supporters of the federal Renewable Fuel Standard (RFS).
ARB's faulty analysis will have real and significant impacts on US
corn ethanol producers and the ability of regulated parties to comply with the LCFS.
Not exact matches
It's one of the nation's leading
producers of
corn and
ethanol but has yet to begin any utility - scale biomass electricity generation.
Much of the ETBE used in Japan is already made in the United States using Brazilian sugarcane
ethanol, so the new rules should make it easy for
producers to switch quickly to U.S.
corn - based sources.
The U.S. economy is a
corn - based
ethanol producer and this has helped put upward pressure on global grain prices which has benefited Brazil's farmers.
It is our
ethanol producer's policy to procure
corn from crop sources that have received international regulatory approval.
But the study comes at a time when farmers and
producers are already receiving federal subsidies to grow more
corn for
ethanol under the Energy Independence and Security Act of 2007.
Almost as bad are regulations requiring the use of
corn ethanol, which clearly only benefit
corn producers and processors at the expense of gasoline users and illustrates how government interference in private markets can be used by special interests to reallocate income to themselves.
Add in the rising cost of
corn, and some
ethanol producers have been pushed to the brink of bankruptcy in recent months.
VeraSun is referring to what we chronicled yesterday: an
ethanol surplus has caused a drop in prices, which, combined with a spike in the price of
corn, has created hard times for
ethanol producers.
Producers generally sell directly to fueling stations, which explains why
ethanol has taken root in the Midwest, center of U.S.
corn production, or send it by rail to terminals to be blended with gasoline.
One of these is Poet, the largest
producer of
corn ethanol, and Poet may well «win the race».
Finally, because high temperatures can simultaneously increase fuel demand and the cost of growing
corn, the supply response of
ethanol producers to temperature - induced demand shocks would likely be weaker than that of gasoline
producers.
Ethanol producers should «bear the burden of market adjustments, along with domestic food
producers and
corn export customers.»
But with cellulosic
ethanol proving to be a complete dud,
corn growners and
ethanol producers are lobbying to redefine
corn ethanol as «advanced.»
Therefore, food
producers, which compete directly with
ethanol producers in the upstream market for purchasing
corn, will have to pay more for
corn.
Current
ethanol policy has increased and destabilized
corn and related commodity prices to the detriment of both food and fuel
producers.
And all this time I thought that the purpose of the
Ethanol mandate was to transfer wealth to
corn producers.
But
ethanol producers worry that the loss of the quota will undermine the
ethanol industry and do little for
corn farmers but drive down the price of their stunted harvest.
Iowa is one of the nation's leading
producers of
corn - based
ethanol, and many people in my state have an economic stake in the expanded use of
corn - based
ethanol.
He also repeated US claims that
corn ethanol was «an efficient
producer of energy» despite studies suggesting that it offered little or no environmental benefits over fossil fuels.