“A request by eight states including Arkansas and North Carolina to waive the renewable fuel standard has been denied by the Environmental Protection Agency… Iowa Governor Terry Branstad applauds the EPA for its decision. In a statement, he said that waiving the renewable fuel standard would add uncertainty to the agriculture sector.” [WHO-TV]
Curt, in the study you mention, do those figures subtract the tax subsidies from the formula before the final calculations, or are they included and counted as a benefit saved?
A joint study by Iowa State U and the U of Wisconsin determined that ethanol provided a 69 cent benefit to the price of gas in 2010 and $1.11 in 2011. As they report, there are just so many gallons of different distillates from a barrel of oil and ethanol creates a relative surplus of gasoline.
I’m told that there is an abundance of starch produced by farmers worldwide but not enough protein. Sorry I can’t provide references – this info comes from radio interviews.
Curt, thank you for the excellent post. I was completely unaware of DG, the byproduct of ethanol production you mentioned, and its use as livestock feed. I only question your 1$ per gallon of gasoline cost benefit assertion. Also, by an “abundance of starch” are you implying that there is a surplus of starch in the world? Please provide references.
Very enlightening to hear comments from people who don’t know what they’re talking about. Makes me wonder about all posts.
No one is starving due to corn ethanol. There is a world wide surplus of corn. The by-product of corn ethanol production is distillers grain which is fed to livestock. Many of us still eat livestock products. Ethanol uses only the starch from corn. The world produces an abundance of starch. The protein, minerals, vitamins, fiber and oils that are left over after ethanol production are in distillers grain. Ethanol reduces the price of gas by app $1 per gallon (remember the gas price premium to diesel?) which allows more money for food. Ethanol is used by petroleum blenders to raise the octane level of low grade gas to make it saleable.
Relealize that the media is not above playing you for fools. It puts money in their pockets!
It isn’t Iowa, it is all of the midwest that produces copious amounts of corn. That is why the lobby is so large, The ten big corn producing states are Iowa, Illinois, Nebraska, Minnesota, Indiana, South Dakota, Kansas, Wisconsin, Ohio, and Missouri. With the first 4 producing about half.
When you see it in this light, it makes more sense that it would be difficult to cut corn subsidies. It isn’t just one little state with 6 electoral votes.
Any, I wish the “corn subsidies” of various forms would be phased out too.
At least they are not claiming the decision has any scientific merit.
Hey, this is saving global warming, the ozone layer, the whales, deforestation, you name it. It’s not often that the hungry have a chance to contribute like this to planetary salvation.
Better that we starve third world people and cause strife in the middle east than have more efficient gasoline as a reliable source of fuel.