Friday, September 14, 2012

Missouri is not seeking a waiver for federal ethanol guidelines

(Missouri Digital News) -- Despite the large number of livestock in Missouri that eat corn, the state is not one of the seven states that have petitioned for a waiver to the federal ethanol mandate.

As a severe drought continues to affect Midwest farmers, the nation's corn crop yield could be as much as 60 percent below normal value this year. Every year, 35-40 percent of the corn crop is diverted to ethanol production, according to the U.S. Department of Agriculture. The cost of corn has risen dramatically due to low production rates.

Except for certain circumstances, all gasoline offered in Missouri must contain 10 percent ethanol, according to the Missouri Renewable Fuel Standard Act passed in 2006. The exceptions include: premium gasoline, aviation fuel, E75-E85 fuel ethanol and when ethanol-blended gasoline is the same price or cheaper than un-blended gasoline.

A federal mandate passed in 2005 established requirements on the amount of ethanol that has to be blended each year. This year, 13.2 billion gallons of ethanol have to be blended into gasoline nationwide.

On Aug. 30, the Environmental Protection Agency began a 30-day open-comment period about the mandate. During the comment period, the public can give feedback on the possibility of granting waivers to ease the requirements for states claiming they cannot meet the demands of the mandate because of the drought.

Many livestock groups have been struggling from the mandate because the price of corn has risen so dramatically, according to the National Cattleman's Beef Association's website.

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