Law mandating ethanol use


Reduced demand for biofuel will mean reduced demand for the corn that is used to make it, which can only mean downward pressure on the crop’s price.

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For one, at the beginning of the Obama presidency, U. The increased fuel efficiency of cars, along with the Great Recession and its lingering effects, are believed to be the main culprits. But soon after, gas demand plummeted and has not returned to 2007 levels. That would make one out of every 10 gallons of gas consumed in the U. But as states like North Dakota and Pennsylvania profited from the shale boom, much of the Midwest remains as tied to corn-based biofuel as before — if not more so.

WASHINGTON — Every good Midwesterner knows the secret to excellence, whether you’re raising prize-winning hogs or Big Ten basketball players: They have to be corn fed.

So who can blame them if they want to same for America’s automobiles?

“The food price issue is something that, the more and more cellulosic ethanol is used, that angle will go away.

The thing with cellulosic ethanol is that we need to scale it.” Indeed, the RFS mandate only requires that 230 million gallons of cellulosic ethanol be used as fuel in 2016 — 0.12 percent of fuel consumed nationally.

Outside the Midwest, ethanol isn’t always regarded as a panacea.

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