Thank you for this. WHen I say corn for food, I meant for cattle too.
So, you’re saying if they were to stop ethanol production, it would:
1. Not lower food prices.
2. NOt raise gas prices.
3. Would impact on farmers, as it would remove a market for them.
4. Not sure if you answered the question about subsidies. Would the ethanol business go down the tubes if there were no tax credits or gov’t subsidies?
5. Has Trump removed all subsidies? Any?
Most of the blending credits are passed in multi year blocks. I think the next round is due in 2019. There is also a lot of star credits which of course vaey, and some renewable energy cresits. Most are tax crwdirs, not direct subsidies.
A lot of the smaller plants can’t survive without the credits. Hence my comment about the messed up contractor. Some of the fees lot and larger plants would survive just fine. But also remember the oil industry in general and the house is Said in particular have been fighting ethanol for decades. Prior to shake oil, Said viewed ethanol as a strategic threat. If we went the way of Brazil, they would be hurting. With domestic oil production sky rocketing, the are now pumping out funding against that.
The biggest effect trump has had is to remove the Chinese market. Corn and other at commodity prices have been dropping fast. So allowing the sale of E15 will only offset the damage he did by a little bit