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Ethanol “great balancer of commodity supply”
As volume requirements for the Renewable Fuel Standard are anxiously awaited Jeff Broin says he hopes farmers understand they’ve got to make sure the government allows more ethanol to be made into gasoline. Broin is the executive chairman and founder of POET, which has 27 ethanol plants in seven states, “In the ethanol industry we certainly can make ethanol out of $2 corn. I don’t think that’s going to work well for the farmer. Hopefully, long term, we can see sustainable prices for both our industries.”
Broin says the price of corn could take a serious dive. He tells Brownfield Ag News, that ethanol is going to be the great balancer of the commodity supply, “We have a 13.9 billion bushel crop, a 1.9 billion carryout next year. Let’s say we have another crop that size. You’re going to be looking at over 3 Billion bushels carryout in the fall of 2015. I mean, what’s the price going to be then? I don’t know but it’s going to be a lot lower than it is now.”
The EPA is expected to release RFS requirements at any time and many in agriculture are concerned they will be lowered. Broin urges farmers to talk with their Senators and Congressmen and write checks during elections telling them what they want. Brownfield interviewed Jeff Broin at the National Association of Farm Broadcasting Convention going on now in Kansas City, Missouri.
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