The National Corn Growers Association, in response to today’s announcement that the Environmental Protection Agency will allow higher blends of ethanol in vehicles from the 2007 model year and newer, says the move is a good first step, but that additional measures are still needed.
Through April, the ethanol industry produced about 11.7 billion gallons per year on an annualized basis, slightly below the 12 billion gallons required by the Renewable Fuel Standard for 2010 — however, demand is running below production at an annualized rate of 11.5 billion gallons per year in April.
Poet LLC, the world’s largest producer of ethanol is giving the industry another “heads up” that the next major leap forward in the development of biofuels is on the horizon.
The Congressional mandate to add ethanol to gasoline to reduce the country’s dependence on foreign oil has fueled much of the strong growth in farm machinery sales for the past few years. But if big oil’s plans for an ethanol substitute comes to fruition, the ag equipment run could be slowed down significantly.
Farmers supplying the nation's largest biofuels producer with corn crop residue that can be converted to cellulosic ethanol can double their income under a program approved recently by the USDA.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we look at President Trump's tariff reduction on ag equipment, the latest dealer sales forecasts, and how high input costs are keeping farmer sentiment down.
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