Defending the RFS

[Mark, ncIA]

Sorry guys, don't get the time to daily peruse Mkt Talk like I have in the past; however, with winter certainly here, maybe I can at least keep up with you all. Possibly this has been covered recently, if so, it won't hurt to get it out again.

I'm sure most of you know that the EPA has proposed lowering RFS volumes of conventional biofuels both year over year and from mandated levels for 2014. I also believe that this proposal is not in the best interest of most of us on this board. This is a big deal and we all need to oppose it vocally. There are several ways to do just that.

By e-mailing the EPA directly: a-and-r-Docket@EPA.gov please use the subject line: "Docket ID No. EPA-HQ-OAR 2013-0479"

The Governor of Iowa has set up this website to submit petitions to the EPA: http://protecttherfs.com/

Here's great page of links from ACE, tabs can take you to your congressional folks: http://www.ethanol.org/magazine/index.php?id=110

Iowa Corn is leading the charge, with a great message & presence at the EPA hearing last week and this link: http://www.iowacorn.org/index.cfm?nodeID=69912&audienceID=1 with direct response to EPA.

NCGA: http://www.ncga.com/rfs

Vets join Progressives on this site fighting for the RFS: http://www.savetherfs.com/

And the list goes on. I'm sure there's dozens or hundreds more.

While a well thought out and articulated message to the EPA would be great, a message of "I'm strongly against this proposal" will also suffice.  Also, there's no limit to the number of responses any individual or group has.  Send one per day if you'd like.  Let's hit them hard this weekend.

[sd/pa]

Thanks. Just posted twice for the RFS. Benefits US Balance of Payments, lowers gas price, reduces defense needs to protect oil shipping, promotes a clean environment, creates jobs and growth - and reduces farm program payments besides by keeping corn prices out of the loss column.

[Shaggy98]

How does the RFS reduce farm program payments? Seems to me they encourage corn production on acres less suitable for corn. What am I overlooking?

[roarintiger1]

Shaggy, It's pretty simple.......It will help keep the corn price above the loan rate, thus no need for that wondeful LDP payment.  My, how soon we forget.........   

[Shaggy98]

This would probably be true in the heart if the corn belt, what about the areas that will be planted to corn that have absolutely no business being in corn production?

[sd/pa]

You are right Shaggy about that. Question though. If the corn market crashes would not the surplused overflow and bring down the wheat and milo prices? Without ethanol soaking up corn (in spite of the DDGS it creates) could be LDPs grow for small grains and milo as well.

[Shaggy98]

Milo for sure since it's not traded on the board and it's price is set from corn price. Wheat isn't a direct relationship, but generally they do move in the same direction. LDP for one doesn't automatically mean a LDP payment for the other. Milo is primarily used for livestock feed which does relieve pressure from corn in a few localized markets. However, with the sorghum check off they are becoming more aggressive on marketing it for other purposes as well.

[jrsiajdranch]

3 cheers for suck in on the big t I t!