New ethanol proposal.

[ses]

From Reuters

WASHINGTON, Oct 5 (Reuters) - A U.S. House bill would
require a reduction in the federal mandate to use ethanol
whenever corn stocks begin to tighten.
The Environmental Protection Agency would be required to
reduce the Renewable Fuels Standard if the projected corn
stocks-to-use ratio is below 10 percent. EPA would forecast the
ratio twice a year; on Aug 1, just before harvest begins, and
by Nov 30, when the size of the harvest is clear.
If the August 1 estimate is below 10 percent, a reduction
would take effect 30 days after an EPA announcement and be in
effect for the rest of the calendar year.
When the November 30 forecast is below 10 percent, a
reduction will be in effect for the following calendar year.
Reductions would increase in size as the stocks-to-use
ratio declined.
Under the bill they would be:

Ratio Reduction
(in percentages)
Above 10 None
7.5-10 10
6.0-7.49 15
5.0-5.99 25
Below 5.0 50

Lead sponsors were Reps Bob Goodlatte, Virginia Republican,
and Jim Costa, California Democrat. There were 22 other
sponsors, from the U.S. Northeast, South and West.

Current estimated 11/12 stox/use is 5.3% so if bill passed could add 1.25B bushels of corn to the carryout. Will it pass the house and senate is the question....Also we are heading into an election year so we could see some major surprises

[ses]

This is the kind of fuster cluck you get when you have government mandated controls instead of letting the market sort it out. So just how do they decide which ethanol plant gets shut down?

[jrtheoriginal]

Ses Jim Costa is big time dairy bought and paid for. He has been pushed by Western Dairy Alloance, Milk Producers council and other cali dairy groups to get this done. I do not know what happens in this deal but this will fracture Ag. NOT good.

[glowplug]

The CA dairy business model is flawed. Feed is grown long distances from where the dairies are. (And the manure isn't hauled back.). Without cheap corn, they can't survive. Expensive diesel doesn't help them, either. The market should sort them out. If they can't make it, let them go broke.

Dairies who grow their own feed, and take the manure back to the fields, have economic advantages. Let them work.

Glowplug
Cain is able in 2012.

[jrtheoriginal]

I know what youa re saying there glow buddy but it sure seems they have lasted longer than I thought. I think they are here to stay. and us small guys are gonna keep gettin our clocks cleaned.

[glowplug]

I don't how deep they're into their banksters but those dairies don't cash flow at high corn, high hay prices, and high diesel. I give them credit for running lean, mean, operations in efficiency. They milk a lot of cows per man. Much more than here in WI where I see too many employees per herd size in many cases. (And the employees adjust to look busy while the owner seems to love bragging how many employees he has. Not my job to save them from themselves. )

But the logistics of hauling feed in great distances over two mountain ranges is a killer. But the banksters are in so deep and they certainly don't want the farm so reposessions are rare.

[beaner]

I like the new ethanol proposal as it helps livestock sector. I had rather see the ethanol blender credit and blending mandate eliminated and let free market dictate how much ethanol is produced. Same for biodiesel.

[glowplug]

In order to make that work, beaner, we need a national energy policy where OPEC control of how much oil is released to the world market becomes irrelevant. Otherwise, we're putting our future in their noose.

If you depend upon others, they control you.

[Dave-ECIA]

.... and what do they propose to substitute as their oxygenate that is mandated by law??? MTBE, a known carcinogen???

I can't fathom that the people of Cali would knowingly delete a safe product in favor of a known carcinogen.

Maybe that needs to be said in the right ear?