Corn prices beef up
Sat, 04 Aug 2012 12:00:00 GMT —
National Cattle and Pork Producers this week sent a letter to the EPA in regard to Ethanol and their policy concerning Renewable Fuel Standards.
Currently, the ethanol content of gasoline is 15 percent. With the effects of the drought on our nation's corn production, producer associations are concerned about the amount of corn used in ethanol production and the toll it will take on available feed for livestock and poultry.
Producers are hard pressed to buy corn for feed at $8.00/bushel, but the question may arise as to whether or not that will seem to be cheap in the days ahead as the corn crop's condition is reflected greater as harvest approaches.
Oil companies are subsidized for the ethanol content, but even lawmakers have jumped on the bandwagon as about 120 of them have also made clear their concern in regard to the subject.
Producer associations are trying to "head off" additional herd liquidation due to high priced feed and/or lack of it. It is asked that the RFS be reconsidered due to the extreme drought conditions the country is experiencing right now. It is thought that the lack of action on the part of the EPA would affect producer stocks for the balance of this year and into next year for sure.
Consumers would experience this in the lack of products available at the grocery counter or much higher prices for food items.
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