Drought crop damage worsens, ethanol waiver urged

[Rhiannon12866]

(Reuters) - The worst drought in more than 50 years has caused more damage than expected to corn and soybean crops, the government said on Friday, heightening calls for a suspension of ethanol quotas to head off another global food crisis.

While benchmark corn and wheat futures closed lower in Chicago, experts say food prices appear set to keep rising after a 6 percent jump last month, escalating a food-versus-fuel debate centered on a law that dictates that about 40 percent of the corn crop must be converted into ethanol.

Hours after the Department of Agriculture said the corn yield would likely fall to its lowest since 1995, worse than forecast, the governors of two poultry-producing states asked the Obama administration to waive the ethanol requirement, the first formal request for relief.

Pressure is also building internationally, as poorer countries bear a larger burden of rising food costs. The top United Nations food official, José Graziano da Silva, wrote in the Financial Times that an "immediate, temporary suspension" of the mandate could help head off another world food crisis.


http://in.reuters.com/article/2012/08/10/us-drought-idINBRE8781E320120810

[NYC_SKP]

1. The ethanol program needs to be suspended and scrutinized.

IRRC, the ethanol efforts were highly promoted by George Bush, are artificially propped up by subsidies, ethanol is not environmentally sustainable, and we should instead be looking at cellulosic ethanol, not corn-based ethanol.

[Rhiannon12866]

6. Add to that, I don't want to put it in my car.

I don't drive more than I have to, but I know it's not good for my car, which I intend to keep.

[still_one]

2. Ethanol was a boon dongle from the start. It did nothing for pollution or mileage, and was payoff

From congress to adm and other companies

It is way past time to get lobbyist out of washington

[Odin2005]

3. It is Corn Lobby pork.

Most rural Midwest congresspeople are owned by The Corn Lobby.

[still_one]

4. I agree

[Kablooie]

5. Is ethanol corn even edible?

I thought is was a very low grade crop that wasn't suitable for consumption.

[AnotherMcIntosh]

7. Many sources found with Google say that it is edible.

Also, as indicated by Wikipedia:

In the United States, ethanol is mostly made from yellow corn, and as the market boomed for alternative fuel, yellow corn went up in price.

http://en.wikipedia.org/wiki/Corn_ethanol

[NYC_SKP]

8. Feed for livestock.

The ethanol program really drove up the prices of feed, which meant rises in beef and dairy.

Not that beef is sustainable....

[farmbo]

9. Join BIG OIL... and help kill the renewable fuel standard

This whole effort is being pushed for Big Oil by the Wall Street Journal and RW lawmakers. It really hurts to see DUers joining into the chorus.

http://goodlatte.house.gov/system/uploads/156/original/RFS_Waiver_Letter_08.02.12.pdf

http://www.ncga.com/news-stories/621-ncga-sets-record-straight-on-house-letter-urging-epa-to-waive-rfs

Among the congressmen who signed the letter to EPA are Darrell Issa, Louie Gomhert, Virginia Foxx and climate denier extraordinarie James Inhoff. Repeal of the renewable fuel standard is a a RW article of faith.

If ethanol plants are shut down US fuel prices would rise between 20- 80 cents per gallon... more profits for Big Oil. Renewables (ethanol, bio-diesel, etc) are now blended in about 10% of our transportation fuel, keeping a downward pressure on international oil prices.

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% corn usage 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 5% corn usage, net.

Ironically, one of the major contributors to rising corn prices are higher fuel prices. After all, it takes huge volumes of oil to harvest our food supply, and by killing renewables you're putting Big Oil right back into the driver's seat.

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 (which is ramping up to using non food crops) in the crib.

[Rhiannon12866]

10. Thank you so much for the information!

What you're saying makes infinite sense, in fact deserves its own post to get the word out...