We Need An Alternative Solution For Ethanol Post-2022

Apr 18, 2017

By Marshall Christmann

During my time serving as a state representative and member of the House Agriculture Committee, I learned how precious the ag industry is to our great state.

Corn, in particular, has become an important crop due in part to its use in ethanol production. The Renewable Fuel Standard (RFS), a program that requires a certain amount of corn ethanol or other biofuels be blended into gasoline, helped establish a demand and vibrant market for corn ethanol, creating opportunities for rural development and community jobs.

Unfortunately, the potential for Kansas to further capitalize on ethanol and corn markets is in jeopardy. In 2023, the Environmental Protection Agency (EPA) will take over administration of the RFS with no congressional input. With its new authority, the EPA will have the ability to reduce required blending volumes of corn ethanol or remove ethanol from the mandate entirely. This is a likely scenario considering the EPA, regardless of which political party is in control, has always seen corn ethanol as merely a bridge to greater reliance on advanced biofuels.

If corn ethanol volumes are lowered or eliminated, it would decrease the demand for corn and ethanol and obstruct economic growth. With Kansas already facing an extreme budget shortfall, we cannot afford to allow one of Kansas’ most profitable industries to be controlled by an unaccountable government agency.

Click here to see more...

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!