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| "E15, trump administration come thru"? Don't hold your breath, Jon.
Believe it or not, I really do try to refrain from too much political talk.
But it's hard for me to bite my tongue when I see just how anti-farmer the trump administration is.
Months ago, I said that the refinery exemptions was extraordinarily harmful to ethanol. The simple fact that RINS are barely worth a nickel today just proves the case.
RINS were/are the central mechanism that Congress established to implement the RFS. The exemptions essentially neutralized the mechanism.
E15, as important as it may be, is nothing without the incentive to implement it. Make RINs worth something and you'll see E15 being sold somewhere besides Iowa.
But leaving ethanol aside for moment, I was wondering this morning, how is the soybean situation any different from the Russian grain embargo thirty-some years ago. Every day that goes by, it is becoming more and more obvious that even if there is a remotely favorable settlement, it has stimulated a massive expansion of competition around the world (and Brazil in particular), as well as the Chinese resolve to reduce, if not eliminate, their dependency on US food supplies.
Mark my words, unless there is a very significant production shortfall in South America, the American farmer will never sell as much soybean to China, ever again. And if the Europeans don't have another drought, you'll never sell as much soybean to them either.
What I find amazing is that a sizable portion of the American farm community voted for their own economic destruction. And even as the evidence continues to mount every day, continues to support an administration bent on continuing to do so.
Edited by farmer4321 2/13/2019 13:33
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Ethanol production rebounds this week.
