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API says delays in setting ethanol mandates are "unacceptable"

  • Pacific Ethanol (PEIX +1.7%) ticks higher after the American Petroleum Institute express concern that the EPA may raise ethanol requirements from its 2014 proposal.
  • "Almost half of 2014 is behind us, yet EPA still hasn't finalized the ethanol requirements for this year," API says. "As the process continues to grind along, we are also concerned that EPA will raise ethanol requirements from its 2014 proposal, based on the specious reasoning that E85 - a mixture of up to 85 percent ethanol with 15 percent gasoline - is a workable solution. It is not."
  • Other relevant names are all lower: GPRE -1%, REGI -1.4%, BIOF -1.3%, REX -0.1%, ANDE -0.3%, ADM -1.1%.
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Comments (8)
  • Michael Bryant
    , contributor
    Comments (5581) | Send Message
     
    " concern that the EPA may raise ethanol requirements "
    On gasoline? Are they insane? High gas will kill the economy. High gas already played a big roll in killing truck/SUV heavy manufacturers like (F) and (GM), bring the rise of (HON) and (TM). I already stated that ethanol makes no sense, because energy input is higher than output. I will add that using corn to make fuel just drives up food prices.
    18 Jun, 12:08 PM Reply Like
  • bdarken
    , contributor
    Comments (426) | Send Message
     
    Not insane.
    Evil. They WANT to punish America.

     

    Every night I hear the ads telling me that 1 in 6 children in
    America goes to be hungry…

     

    Yet our Government MANDATES that we burn food as fuel
    in our cars.

     

    May I have another helping of stupid government, please sir?
    18 Jun, 12:19 PM Reply Like
  • Jake. lenihan@gmail.com
    , contributor
    Comments (7) | Send Message
     
    Ah the classic "food vs fuel" debate.

     

    Unfortunately its not so cut-and-dry as: produce less ethanol, produce more food.

     

    If you look at the breakdown of how corn in our country is actually consumed, 40% of every bushel goes to ethanol, 37% feeds livestock (which is technically used to feed humans indirectly, but much less efficiently on a per bushel basis than consuming corn directly), 11% is exported, while only 11% goes to domestic food.

     

    Of that 11% going to domestic food, most of that is processed into corn oil and starch. Starch is used to produce the infamous high fructose corn syrup and heavily processed junk food (which ironically is a major factor in the country's obesity epidemic, not starvation). Most of the healthy stuff left over form these processes (containing all the fiber, protein, vitamins) goes to animals. Only a very small fraction of corn produced annually is actually eaten by humans as whole corn.

     

    So if you ask "why do we use corn to produce ethanol while Americans are starving?"...

     

    You also have to ask:

     

    "why do we feed animals corn while Americans are starving"

     

    and

     

    "why do we send corn to other countries while Americans are starving"

     

    and

     

    "why do we use corn to make junk food while Americans are starving"

     

    What would happen if any or all of the above were prohibited by government policy, so that more corn would be used for food? A lot less corn would be planted.

     

    Sources:
    http://bit.ly/1jzGilR
    http://bit.ly/1jzGhi2
    http://bit.ly/1iwUQV1
    18 Jun, 07:06 PM Reply Like
  • Jake. lenihan@gmail.com
    , contributor
    Comments (7) | Send Message
     
    Just to clarify, I'm NOT defending the American corn agriculture system or the use of corn to produce ethanol in order to satisfy mandates. Just pointing out that "food vs fuel" isn't a black and white issue.
    18 Jun, 07:11 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5581) | Send Message
     
    Well, the Mexicans hate us, because corn-based ethanol is driving up the price of corn and thus the tortilla.
    18 Jun, 09:50 PM Reply Like
  • Chris Robin
    , contributor
    Comments (6) | Send Message
     
    And of the % used by ethanol, 1/3 of it is returned to the feed market as DDG so the 40% number is misleading.

     

    http://bit.ly/1pQnhTZ
    http://bit.ly/1pQniae
    20 Jun, 12:04 PM Reply Like
  • Lynn Benson
    , contributor
    Comments (27) | Send Message
     
    Finally, someone that gets it. There are too many stubborn or uninformed people that want to bring up the "people are starving" idea.
    30 Jun, 04:44 PM Reply Like
  • Ed Fox
    , contributor
    Comments (2) | Send Message
     
    We are farming in southern Michigan. Ethanol is not a good energy saver but an excellent oxygenator to help burn greenhouse gasses from engine exhaust. Long term, I think ethanol use will dwindle to the level needed for oxygenation as more natural gas is directly burned in internal combustion engines.
    I question the notion that 20% of Americans are going hungry. They may not have the resources to eat 21 meals a week at McDonalds, but wheat sells for $6.00 per 60 pound bushel or $0.10 per pound. A pound of wheat cooked up into what is called wheat berries will make 6-10 breakfast servings for us. With milk sugar and cinaimon costs under $0.05 per serving.
    19 Jun, 09:59 AM Reply Like
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