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Corn farmers and year-round E15
Iowa Senator Chuck Grassley says corn farmers need year-round E15 sales now more than ever since they will receive the lowest direct payments in the USDA’s trade relief package.
He says the announcement emphasizes the fact that the administration needs to stop looking for a win-win for oil refiners and corn farmers.
“The refineries have everything they wanted, which was reducing the price of RINS and since they’ve got what they set out to do a year ago, just go ahead and do what the administration said they want to do for corn and ethanol and all E15 12 months out of the year.”
The USDA has set the payment rate for corn at one cent per bushel. Total payments are expected at $96 million.
Tags: China, Chinese tariffs, Chuck Grassley, Corn, Corn Farmers, E15, RINS, Trade, Trade relief
Dear Mr. President,
I saw your recent interview with Sarah Mock discussing Farm Issues, Tariffs and the Renewable Fuel Standard. You claimed to be a “Friend of Farmers and Ethanol” But you said year-round E-15 was “very complicated” because if ethanol is helped, someone else is hurt. Obviously, you are worried about “Your Refiners,” who are having a Record – High Year, while Ethanol is having a Record – Low Year!
Mr. President do you realize your Administrations Policies have Severely Hurt the Ethanol and Farm Economies?
One year ago, Ethanol was $1.51 Per Gallon and Gasoline was $1.78 Per Gallon on the Futures Market. The price difference was $0.27 per gallon.
Since then Ethanol has DROPPED 20 cents per gallon to $1.31 Per Gallon while Gasoline has gone UP 30 Cents Per Gallon to $2.08 Per Gallon on the Futures Market. Making the current Gasoline / Ethanol price spread 77 cents per gallon.
Your Administration’s Small Refinery Waivers without reallocation of lost gallons, has resulted in SEVEAR DEPRESSION of Ethanol Values.
If the EPA had maintained the status quo on Small Refinery Waivers, (granting them only when appropriate), the Gasoline / Ethanol Differential would have been maintained close to last year’s 27 cents per gallon, and Ethanol today would be priced at $1.81 Per Gallon. Mr. President, that’s a full 50 cents Per Gallon higher than todays $1.31 Per Gallon. And Your Administration is “Worried” About the Refining Industry? You’re Worried that Year-Round E-15 is going to take away Refiners Summertime Fuel Monopoly, while any other competition is blocked out of the market?
Mr. President, you need to realize that Farmers are not Idiots. Your Administration has Cost Us 50 Cents Per Gallon on Ethanol. At 16 Billion Gallons Per Year Production that amounts to about 8 Billion Dollars, per year Lost Profit. In other words, Mr. President, Real Money for the Farm Community. Year-round E-15 is Not “Complicated.”
Sincerely,
Thomas Blazek