Leslie Miller, Vice President and Head of Ag Lending at Iowa State Savings Bank in Knoxville, tells KNIA KRLS News that the Environmental Protection Agency has proposed the first cut in the amount of ethanol that must be blended into the nation’s gasoline supply. This news means that the amount of ethanol produced could outpace the amount actually needed. America’s gasoline usage has decreased, partially due to the economy, and partially due to better fuel economy in vehicles. The impact on corn growers is that it could further lower corn prices, which are already dipping near the $4 per bushel range.
Justin Huebner, from Two Rivers Cooperative in Pella, says the reason the EPA proposed cuts to the renewable fuels mandate is because there is an on going battle between the big oil companies, and the ethanol market. Huebner adds that oil companies claim that they can’t blend anymore ethanol into the gallons that are being produced, and continues by saying that the timing seems odd to him since last year when there was a shortage of corn, this was revisited and decided against, and this year we have an abundance of corn, and the government is now reconsidering the move. There is a 60 day public comment forum, and Huebner shared with KNIA/KRLS news that he hopes that the cap is not implemented.