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Ethanol volume requirements will steer corn demand

DSCN0444As the agriculture community awaited the Obama Administration’s announcement on the Renewable Volume Obligation, an ethanol specialist talked about the bearing that the ethanol volume requirements will have on corn demand.  Dave Loos, with the Illinois Corn Growers Association, says administration proposals for ethanol volumes are less than Congress intended when it originally approved the Renewable Fuel Standard.

“That equates to 800 million to 1 billion bushels of corn in lost demand that we see in 2015 and 2016,” said Loos, talking to Brownfield Ag News at the Illinois Farm Assets Conference in Normal, Illinois, Tuesday.  “That’s very significant right now based on our price structure for corn and what we’re looking at in the rural economies.”

Earlier this year, the EPA proposed requiring a total of 13.4 billion gallons of corn-based ethanol be blended for 2015 and that 14 billion gallons be blended in 2016.

“We have the feedstock, the corn, to produce 15 billion gallons of ethanol in 2015 and 15 billion gallons of ethanol in 2016,” he said.

The deadline for the government’s announcement is Monday.

AUDIO: Dave Loos (9 min. MP3)

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