As the number of working days winds down for the year, the folks on the Hill have been spending some time discussing the ethanol mandate.
The Environmental Protection Agency, who oversees the Renewable Fuel Standard (RFS), and the Senate committee of Environment and Public Works both held hearings on the failed policy.
Bob Dinneen, President and CEO of the ethanol lobby, was once again trying to spin corn into gold. Now that the environmental benefits of the RFS have been thoroughly debunked, Dinneen changed the message to the “devastating impacts” that lowering the mandate could have on farmers.
Conveniently, Dinneen glossed over the fact that while ethanol producers are bringing in record profits, dairy and poultry farmers have been forced to close up shop, unable to afford feed for animals.
The “impact” that Dinneen is talking about is the drastic decrease of corn prices below the new “equilibrium” price once the growing government mandate is removed.
The proposed 2014 ethanol consumption levels represent the current market demand for ethanol, keeping ethanol blends under 10 percent and mitigating the widespread engine damage caused by higher blends.
Tell Congress it’s time for a long-term solution, not a band aid.