I was against the extension of the blenders credit last winter. You know government, never give up something without something in return. Right or definitely wrong.
Mandates to 10% is good for the marketplace as it creates some competition. Do you think big oil would give any of the additional profits from an additional 10% demand for gasoline to the consumer, farmer, ethanol plant? No. Why would big oil (even at 80 cents a gallon profit for blending ethanol) share their market place. Crack spreads would jump much more than 50 cents per gallon on 10% of total gasoline demand if there was no ethanol...and big oil would be smiling (fwiw...crack spreads were 50 cents a gallon higher on 100% of total gasoline demand in 2007). Ethanol has to sell to its competition, therefore the mandate.
Remember, a rising tide lifts all boats. Ag is good today.
