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cropsey, il 61731 | No seed company advertises "yields always below 210 to keep grain prices higher". I know a few that suggest we should be growing 300 bu corn on a regular basis. Still basic economics of a commodity - needs to be cheap and plentiful. I think the idea is to produce enough to feed folks and generate a significant amount of fuel. Ethanol yield has increased a lot since production started so it really will never be a food vs fuel deal anyway (we didn't run out in 2012).
There is concern for the starving in the world, but it's a 110% political (and spiritual) problem. We are not holding back grain anyway. It often doesn't go to the starving anyway.
Anyway the goal would be to make the RFS redundant since blending with ethanol should be what blenders want to do to make money. At some point butanol production becomes more viable and then there is real competition. Oil companies own plenty of ethanol production so it's not like there isn't a distribution channel.
Price it right and it will sell. | |
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10% ethanol $.23 cheaper than ethanol free.. RFS.. Growth Energy Ad.
