U.S. Agriculture Secretary Tom Vilsack announced programs to aid farmers and ranchers hit by this year’s drought and urged Congress to work faster on the farm bill to free more disaster aid tools, but he held firm on the need to continue making corn-based ethanol.
Asked by Meatingplace on a conference call if USDA would support easing the Renewable Fuel Standard if the corn crop continues to deteriorate, Vilsack said, “We are not at that point. Certainly the renewable fuels program is an extraordinarily important aspect of our efforts to rebuild and revitalize the rural economy. The reality is, we are still looking at the third largest corn crop on record and we are still looking at a very large soybean crop … . So, at this point, we have no plan to adjust the Renewable Fuels Standard.”
USDA earlier today cut its corn crop estimate by 1.8 billion bushels to 12.97 billion bushels and lifted its average farm price forecast for corn by $1.40 per bushel at the top end to a range of $5.40 to $6.40. Corn futures for July delivery traded around $7.34 per bushel at midday on the Chicago Board of Trade. ....
[Emphasis added ]First, I didn't know that the renewable fuel program was designed to "rebuild & revitalize the rural economy". I thought we needed to use ethanol for all the reasons the greenies have said, "Lower our dependence on foreign oil, lower green house gases, etc...."
But, my point in posting this is to point out that the USDA on one hand reduces the corn crop estimate by 1.8 billion bushels and on the other hand the USDA says they are not going to reduce the Renewable Fuels Standard. Which means there will be 1.8 Billion fewer bushels of corn available for our food supply. The "Smartest People in the Room" at the Department of Agriculture are choosing to feed our cars rather than feed our people with corn.
Which leads to the obvious question, "Why don't we pump actual oil from the ground for our cars and eat the corn?"