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Biodiesel producers rejoice at new mandate for 2013

The renewable energy industry is applauding President Obama and the U.S. Environmental Protection Agency after the EPA approved a 28% increase in the amount of biodiesel mandated for use in trucks on the nation's highways for 2013. Biodiesel is made in a process that uses soybeans, while the production of ethanol is based on corn.
The president of the Iowa Renewable Fuels Association, Brad Albin, said, "I want to thank President Obama and his staff for listening to our concerns and recognizing the value and potential of America’s Advanced Biofuel—biodiesel.”
The biodiesel industry is celebrating because unlike mandates for the use of ethanol in the nation's fuel set forth in the 2007 Renewable Fuels Act, biodiesel didn't have a mandate until last year. That mandates set a goal of 800 million gallons. The new mandate for 2013 has been expanded to 1 billion gallons, and fell short of the 1.28 billion gallons that biodiesel producers wanted.
“This was an incredibly important decision, and the Obama Administration got it right,” said Joe Jobe, CEO of the National Biodiesel Board, the industry trade association.
“It will allow biodiesel plants across the country to invest and expand, creating thousands of jobs. At the same time, it sends a strong signal that the U.S. is standing firm behind its commitment to producing clean, American-made energy to strengthen our energy security and break our dependence on petroleum.”
When the mandate was introduced in 2011 at 800 million gallons, it helped prevent the closure of several of the nation's biodiesel plants.

Ethanol production has come under fire for driving up prices on the food crop, however, there is no indication that the same will happen for soybeans. 

Source: Desmoines Register

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RE: burn food just brilliant
By JediJeb on 9/19/2012 6:57:46 PM , Rating: 2
The middle man trading is the biggest problem with food prices. My family has been in farming for decades and it is sad to say but even now you can sell a bushel of corn for nearly the same price you sold it for in 1970. Depending on the market timing, especially around harvest time watch the prices drop. The only farmer who can make higher prices on their crops are the ones who can contract at the exact right time or who have storage space to hold it until the prices increase. The problem with the contracts is if you contract to deliver at say $3/bushel and 1000 bushels and the price goes up you still have to sell at $3, if the price goes down you win. On the other hand if you have a bad crop year(like the drought this year) and you only grow 800 bushels, you have to cover the missing 200 bushels somehow(penalty to price or you must buy at a higher price and sell at lower price to cover your shortage).

They call them Farm Subsidies, but most of it goes to the middlemen not the farmers. Even if you look at the price of corn in 1970's when it was only $2/bushel and now at maybe $4-$5/bushel that is a 2-2.5x increase, yet diesel fuel for your equipment was maybe $0.30/gallon in 1970, is it only $0.60-$0.75/gallon now? Even with corn at $8/bushel as it was a few years ago during the price spike equivalent diesel prices should be at $1.20/gallon now. What farmers make versus what their expenses are has dropped quite a bit in the last 40 years or so. A tractor that cost $5000 in 1970 now costs about $60,000, same with vehicles, equipment and almost every other item a farmer buys yet for a cattle farmer a steer sold for about $1.00/ pound in 1970 and maybe $2.00/pound now. I bet the price in the store or restaurant has more than doubled in that time frame.

Trade protection has caused millions in the past 5-6 years to go hungrier then need be

Greed within the system has cause the prices to go up, not down at the farm level. Also the reason most in foreign countries are going hungry is because of their government, not a world wide lack of food. We grow enough food to feed everyone comfortably, yet two bit dictators are spending their countries money on weapons and bobbles for their mistresses instead of the food their people need. There are countries in most of the third world that are full of resources like diamonds, gold, oil, coal, and more where there people go hungry because of abuse of their governments.

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