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Ethanol industry asks for help. CCC direct funds.
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JonSCKs
Posted 4/6/2020 09:05 (#8169137)
Subject: Ethanol industry asks for help. CCC direct funds.


The way to handle this.. since.

A) It's a national emergency
B) The Crude Oil War is adversely targeting our biofuel producers.. They are UNDER ATTACK by predatory pricing
C) This is collapsing our Markets.. and sending mixed signals.. aka Corn producers in Kansas are cutting acreage in half in some cases.. kid you not.. our dryland corn acreage.. last year was.. like 4.5 million acres.. we could trim.. 1..1.5..2 million of that here..
D) We still need the DDGs as feed for livestock.. I have 3 ethanol plants all in the country by me.. but only 1 Soybean Meal plant in Wichita.. which could become quarantineed.  Maybe we better diversify sources.. and keep plants open.. gonna be easier in the country side vs the City
E) the CCC can regulate.. issue so much $$$ to subsidize ethanol production.. regulate it until the sun comes back out..
F) other
G) We can reassess on the other side.. Keep in Mind that the 1918 pandemic.. (Started in 1915.. and we had WW1 to contend with..) peaked in 1918.. lasted till 1920.. that flu killed alot.. but Malnourishment killed more.. We must Keep Ag up and running.. Collapsing commodity prices., will NOT help in that regard.

CCC pays Ethanol plants $0.75 to $1.25 per bushel to run at.. say 50%.. keep them open. idled back.. paying the bills.. keeping people employed and livestock fed.

When the sun comes back out.. let them run at 75% or more.. lower the subsidy.. ease it back to health.

You can do this on a Much Smaller size of the crop.. 50% or so of the Ethanol grind vs 100% of the US Corn Crop.

For Livestock.. they need to address the packers.. who are making HUGE PROFITS right now while livestock prices to the producer fall.. ?!?  Implement Price Controls.. or something.. ??  Packers still have time to step up to the plate before the Government takes over their industry.. which looks like the direction we are headed as of RIGHT Now..

U.S. Biofuels Industry Seeks Bailout to Weather 'Collapsing Demand': Letter

https://www.nytimes.com/reuters/2020/04/03/us/03reuters-health-coronavirus-usa-biofuels.html

By
 
April 3, 2020

(Reuters) - The U.S. biofuel industry has asked the Trump administration for funds from the U.S. Department of Agriculture's Commodity Credit Corporation to help it survive a demand slump triggered by the coronavirus outbreak, according to a letter seen by Reuters.

The funds could be used to offset a portion of the industry's corn and soy bean purchases, or as direct assistance to companies to help them retain staff, according to the April 1 letter addressed to Agriculture Secretary Sonny Perdue.

The letter, signed by representatives of the nation's top biofuel trade groups including the Renewable Fuels Association, said that "collapsing demand" for fuel during the outbreak had idled some 3.5 billion gallons of annualized ethanol output at a quarter of the nation's production facilities.

"The biofuels industry has been hit especially hard by the sharp decline in fuel demand across the country, as residents follow local, state, and federal guidance to practice social distancing and minimize travel," it said.

"With these realities in mind, we ask that USDA use its CCC authority to directly assist biofuel producers," it said.

 

The biofuels groups pointed out that the U.S. ethanol industry accounts for about 40% of U.S. corn demand, making it an important market for farmers.

An official at the U.S. Department of Agriculture did not immediately respond to a request for comment.

The biofuel industry is part of a long list of businesses seeking help to counter the impact of the global pandemic, which has infected more a million people worldwide, decimated travel, and forced massive disruptions in daily life around the world.

 

(Reporting by Jarrett Renshaw; Writing by Richard Valdmanis; Editing by Chizu Nomiyama and Marguerita Choy



Edited by JonSCKs 4/6/2020 10:25
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