Calls to scrap ethanol mandate intensify with drought

[phantom power]

NEW YORK (CNNMoney) -- The drought that's killing crops across the Midwest and sending corn prices to record highs has revived calls to end or ease the government's requirement that corn-based ethanol be blended with gasoline.

Current rules stipulate that nearly 10% of the nation's gasoline supply come from corn-based ethanol. To make that ethanol, up to 40% of the country's annual corn production can be required.

http://money.cnn.com/2012/08/06/news/economy/ethanol-drought/index.htm

[NYC_SKP]

1. A bright side to the drought, I suppose.

This corn based ethanol shit has to stop.

[phantom power]

2. be that as it may (and it may be)...

the interesting thing is, that decision is now also equivalent to forfeiting 10% of our gasoline supply.

[NYC_SKP]

3. True, but it's difficult to say which has the more dire consequences.

If lower supplies drive up prices and higher prices encourage efficiency and modify behaviors, maybe that 10% cut turns out to be a better think than shortages of corn.

Also, I hate to see the myth perpetuated that corn-based ethanol is somehow clean and renewable and efficient.

[FBaggins]

5. Do we know for sure which one would have the greater impact on prices?

Surely the corn shortage would dramatically increase the operating costs for the people making the ethanol... which should increase the cost for that portion of the stream.

[farmbo]

4. Yeah... calls from Big Oil

If ethanol plants are shut down US fuel prices would rise between 20- 80 cents per gallon... more profits for Big Oil.

This year US farmers put out 5 million more acres of corn than in 2011. Even with the drought, we should one of the ten biggest crops ever.

That 40% figure is total BS. Most field corn is used for animal feed and ethanol actually creates a byproduct- dried distillers grain- which remains in the animal food chain. It's more like 3% corn usage, net.

Calls for removal of the renewable fuel standard are being orchestrated by the Koch Bros and Big Oil as a means of strangling the renewable fuels industry (using non food crops) in the crib,