Corn getting beat down

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Leisher
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Post by Leisher »

It looks like ethanol is going to become a footnote in the U.S.'s history of energy policies.

Now high fructose corn syrup is under attack.

Honestly, this is win-win for most people, except farmers.

HFCS has been linked to health issues, and if it goes away, corn prices should drop. That means feed prices will drop. Meaning protein prices will drop. etc.
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thibodeaux
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Post by thibodeaux »

Yeah, but really corn is an inferior way to feed animals. Grass-fed ruminants are more nutritious.
Leisher
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Post by Leisher »

Fair enough.

I'm just more concerned with corn prices falling. My company deals with agricultural stuff, among other interests, and corn prices drive a LOT of prices in more than just the food industry.
“Activism is a way for useless people to feel important, even if the consequences of their activism are counterproductive for those they claim to be helping and damaging to the fabric of society as a whole.” - Dr Thomas Sowell
Leisher
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Post by Leisher »

“Activism is a way for useless people to feel important, even if the consequences of their activism are counterproductive for those they claim to be helping and damaging to the fabric of society as a whole.” - Dr Thomas Sowell
Malcolm
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Post by Malcolm »

The majority of corn is used as feed. HFCS accounts for maybe 5% of national consumption. According to a few charts I've seen, ethanol consumption is achieving parity with feed consumption. I'd call that a bit of an overshot, but it's looking like the #2 consumer.
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Leisher
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Post by Leisher »

Didn't the feds stop most funding for ethanol last year?
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Malcolm
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Post by Malcolm »

Leisher wrote:Didn't the feds stop most funding for ethanol last year?
They took away tax credits and protective tariffs, about $45B I think, but...
The Obama Administration set the goal of installing 10,000 blender pumps nationwide by 2015. These pumps can dispense multiple blends including E85, E50, E30 and E20 that can be used by E85 vehicles. The US Department of Agriculture (USDA) issued a rule in May 2011 to include flexible fuel pumps in the Rural Energy for America Program (REAP). This ruling provided financial assistance, via grants and loan guarantees, to fuel station owners to install E85 and blender pumps.

Just in case that's not heavy-handed enough,
In May 2011 the Open Fuel Standard Act (OFS) was introduced to Congress with bipartisan support. The bill required that 50 percent of automobiles made in 2014, 80 percent in 2016, and 95 percent in 2017, be manufactured and warrantied to operate on non-petroleum-based fuels, which included existing technologies such as flex-fuel, natural gas, hydrogen, biodiesel, plug-in electric and fuel cell. Considering the rapid adoption of flexible-fuel vehicles in Brazil and the fact that the cost of making flex-fuel vehicles was approximately $100 per car, the bill's primary objective was to promote a massive adoption of flex-fuel vehicles capable of running on ethanol or methanol fuel.

Currently in committee. Granted, lots of bills go to die there.
Diogenes of Sinope: "It is not that I am mad, it is only that my head is different from yours."
Arnold Judas Rimmer, BSC, SSC: "Better dead than smeg."
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