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There's another potential casualty of the drought.
-- -- mandates lawmakers who once supported the requirements now favor waivers because the drought has slashed this year is corn crops and send prices soaring.
Joining me now our call.
All of the National Cattlemen's Beef Association.
And Jeff Cooper vice president research analysis at Renewable Fuels Association Jeff I'll start with -- -- you support the ethanol may mandate but.
They're not something kind of strange about burning up 40% of our core and provide like 2% of fuel.
Well thanks for having me on Dennison and if you're right out of the gate up like respond -- that 40% claim.
We hear that so much today but the fact of the matter is a third of the the corn that we used for ethanol comes right back to livestock sector in the form of of animal feed.
We only use the starch in the corn kernel of protein fat fiber goes right back to -- to feed market in most of it goes to -- what -- members.
You don't most -- -- today include about 50% forty or 50% distillers grains which is this co product.
That our industry produces so if we produce left out the less ethanol we're going to be producing.
Less of this very high value livestock feed.
Did you say a third of what you use goes actually right back into the bigger so that's a third of the 40% up until that point Barbara 30% of all the car in the country -- -- ran up.
Four for fuel at a time when other countries are trying to switch grass stuff.
Will tell us well.
Colin at the cattlemen associates and how hard on the rising prices making it for a part.
You know we've had over 224%.
Increase in the price of corn since 2006.
It just point about sin and that back in the former -- is a little misleading it's kind of like given me a hamburger but you eat the meat out of an all I get is the bond.
It's not a one for one exchange there and so it's a little bit of a red -- Wow -- what are -- members wouldn't it.
I don't think cattle feeders that we talked to would it would agree with that.
They love the protein in the energy content that's in distillers grains we've had.
Our cattle feeders in Nebraska and Kansas calling ethanol plants are members.
Concerned about whether they're going to be able to to whether.
These high core prices and continue supplying event that livestock but -- bid -- you say in the notes I got -- that you said that you guys are trying to find ways to switch over to switch grass it.
Just takes a lot of -- so great why switch to switch grass all.
-- corn corn ethanol has provided that the the base that the renewable fuel standard the ethanol program is is meant to be based on.
And we are seeing the the industry transition into new feed stocks things like switch grass things like -- -- -- the residues left over after the grain is harvested.
Plants commercial scale plants today being built that would utilize these types of feed stocks.
If we walk away from the ethanol program -- the administration sends a signal to the investment community by waving this program.
That's not committed you're gonna see investments really chilled in in in that next generation of biofuel technology.
And calling you know in the -- to -- -- guy from Jeff.
He kind of wonders whether.
Gasoline makers would buy any corn for ethanol at all if they weren't mandated to by the federal government because that assigned -- a bad idea -- -- -- -- private business.
Make the best decision for his business.
You know we would say that because if if ethanol truly is the magic bullet they claim to be.
The let's let the marketplace decide that's all the were asking for.
The National Cattlemen's Beef Association is actually not against ethanol and if it truly has an opportunity help wean us off foreign oil.
-- the market can -- drive it.
We're just asking for the government to get out the business of -- -- winners and losers in the corn market.
Yeah and and Jeff you know just seems like -- -- corn ethanol subsidies been going on for 203040.
Years and it's not like it's really helped us with our oil crisis Jeff what's your prediction.
-- these ethanol mandates be vacated -- and get out the way are they gonna stay and hold firm.
No I don't think they will be waived at all and at first of all your point about subsidies there is no longer wonders tax credit for a -- no longer tariff.
The only government support we get today's and form of the renewable fuel standard.
I think the Environmental Protection Agency and and other folks in Washington DC understand the -- this program.
A first wasn't gonna have any meaningful impact on corn prices are feed prices because refiners are just gonna walk away from using ethanol.
They needed and they want it for -- octane value.
And second -- think they understand the long term benefits to maintaining this this program in the signal that -- the investment community.
-- just today we're talking about the impact of the hurricanes on on gasoline markets you know.
It -- there's there's this notion out there that ethanol is the only -- -- the only energy source it's impacted by.
You know -- -- mother nature and clearly that isn't the case alright well gentlemen thank you very much for being with us best of luck to you and your respective sides of the.