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US corn yields seen at a ten year low according to news survey by Reuters and following corn yields renewing criticism of the renewable fuel standard.
Ritual requires oil company -- to -- thirteen billion gallons of corn based capital this year or face fines.
That's higher prices trickle down into the grocery dial in gas -- will consumers' demand relief from the EPA let's ask Kevin book.
Managing director -- clear view energy partners Kevin thank you for joining us.
It it just seems like it's insane to keep these standards in place when we are anticipating such problems with the corn crop this year -- you think.
Well most -- there was a debate before they expanded the standard 2007.
The Bush Administration said hey let's put up corn price triggering year civic gets too high we relent on the standard congress decided they didn't -- -- do that they were in the camp that.
That the corn ethanol problem wouldn't be price it would be getting enough corn ethanol into the mix that we could be free from foreign oil different time different thinking so.
There's no way that that the congress.
Is going to change anything this year and actually there's no executive authority to suspend on the -- -- -- can't EPA committing grant a waiver at least for a year immediate -- This big type of corn that's used as they is the feed corn that is feed stock for animals it's used in so many different things so many other places that we needed.
Other than an ethanol especially at a time were watching.
-- -- the price of gasoline at all we could mean more heavily on a different blended not be blending in the ethanol seems like it makes all kinds of cents.
Why when the EPA just -- a reprieve for one year.
Well it does make all kinds of sense the one year reprieve so the requires the EPA to basically -- -- ninety -- review.
Which -- the Obama administration is coming out right before the election insane.
You -- -- let's not use ethanol.
Not so good if some of your your swing states -- states like Ohio.
Which is a very big electorally speaking and still pretty big ethanol speaking and Iowa obviously also very big ethanol wise.
Pretty they -- worried about alienating everyone else who drives a car are all around the country or how about people who eat food.
And need that corn -- to be cheaper so that they can that you know enjoy all the food that's made from an all the animals that are bad credit.
How those people they -- you right.
They certainly do vote it's not clear they make the connection plus that the ethanol proponents.
Suggest that it's actually not a significant part of food price inflation to debate has been going on for years there are shorter waivers twenty day waivers that are available for technical disruptions.
We may yet see some of those this year Melissa they had -- -- ethanol plants shut down -- that we can't produce enough to supply the gasoline demand.
-- Kevin but you know what we're gonna have to sit down and do the math on -- and show them just -- -- it does have -- prices will make the case thanks for coming on we'll do it again.
You're very welcome thanks for having.