As Before, “Food vs Fuel” Arguments Strike Out
Last Friday’s USDA Crop Production and WASDE reports, which slashed estimates for the 2010 corn crop and average yield, sent the anti-biofuels crowd scurrying to find their trusty “Food vs. Fuel” playbooks. The alarmist rhetoric over the past several days seems virtually cut and pasted from the raft of doomsday press releases and manufactured “studies” that cluttered the media channels in 2008 when record oil prices and rampant speculation pushed grain prices to unprecedented levels and food prices to the highest levels in recent memory. For opponents of ethanol and beneficiaries of cheap corn, pointing the finger at biofuels has become the reflexive knee-jerk response any time grain prices start to rise.
Posted in Agriculture, Ethanol, Production, USDA
5 Billion Gallon Challenge Isn’t As Clean as it Seems
The growth and commercialization of next generation biofuels is essential to the long term success of America’s ethanol industry. This success does not need to come at the expense of current technologies. The RFA does not believe that U.S. biofuel policy should be crafted in a manner that jeopardizes the tremendous advances that have come from the investment our nation has made in renewable fuels or causes cannibalization in the industry. It is true that we need to support and promote the growth of next generation biofuels in order to become energy independent and to combat global warming. However, this will not be achieved by pitting different sectors of the industry against one another or abandoning support for one sector of the industry for another when the entire industry needs support as long as we continue to provide permanent tax breaks to oil producers.
Posted in Agriculture, Ethanol, Energy, Fuel, Renewable Fuels, Renewable Fuel Standard, U.S Dept. of Energy, USDA, VEETC, Water
Renwable Fuels Standard (RFS) in 2011
For the first time ever under the RFS, EPA today put out for review its estimates for RFS targets in 2011. Under the law, these are not required until November. Of note, EPA has revised down cellulosic ethanol use from original RFS targets for the second year in a row. While this may be prudent for EPA based on market conditions, it does send a chilling effect through the investment community with respect to cellulosic ethanol technologies. EPA's estimates underscore the need for Dept. of Energy and USDA to construct loan guarantee programs that work for cellulosic ethanol companies.
Posted in Ethanol, Energy, EPA, Renewable Fuel Standard, U.S Dept. of Energy, USDA
RFA Comments on USDA WASDE Report
This morning USDA’s July WASDE report was released. While it made some changes to the corn supply-demand estimates, it is likely that supply will get a boost with a larger yield estimate likely next month. This morning's report suggests corn producers are still on track for a record crop in 2010. If the corn crop can avoid significant stress during pollination, we should be looking at another record or near-record average yield. But harvest is still several months away and nothing is certain until the crop is in the bins. Read more to see key facts related to today's report.
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