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| That's right, Pitt. Every time corn prices go up, we start hearing complaints from the blenders that ethanol is too expensive to blend, blah, blah, blah.
But we need to remind our representatives that it's only because prices are occasionally high that farmers are even able to make a living. If the governments chops down prices by changing the laws, farmers will never make up for all those years when prices were extremely low.
This run-up recently is all due to the drought, but even if it were caused by high ethanol consumption, we need to remind our legislators that high RINs prices just reflect that the system is working, not that it's broken. The market NEEDS high RINs prices to give the incentive for blenders to blend, or else they will just refuse to do so--especially the ones owned by oil producers who will gladly leave a little bit of a blending margin on the table in order to protect the demand base for their fossil fuel.
Refiners only hate the RFS because it works--but it only works if RINs are allowed to do their job by going up in price when they need to, and they can't do that if there's no demand for them if refineries keep getting waivers. | |
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The MOST IMPORTANT thing right now... and it's NOT rain
