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Senior Advisor

Refinery exemptions, going from bad to worse.

https://www.agriculture.com/news/business/in-new-fuel-clash-oil-refiners-ask-for-52-retroactive-etha...

I'm beginning to believe that either all those Midwestern republican senators & congresspeople either don't have any real influence with the trump administration or are lying about their real concern for Midwestern farmers.

You have to wonder just how much ethanol will get blended with 52 refinery exemptions?  How many refineries are there in the US anyhow?

Looked it up myself, as of Jan. 2019 there were 132 operating refineries in the US.  So, 40% of the refineries will get exemptions?  

9 Replies
Veteran Advisor

Re: Refinery exemptions, going from bad to worse.

Typical Trump, typical big business. 

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Frequent Contributor

Re: Refinery exemptions, going from bad to worse.

I agree with you both... the current regime cares nothing about "fly over country"

But, BA can explain to us how this is actually a great deal for us and will bring China to it's knees. Praise our illustrious leader- the Great Trump 

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Honored Advisor

Re: Refinery exemptions, going from bad to worse.

Ethanol has a "cheap gasoline" problem, we fight for 10% or 15% of the fuel market, gas prices being $2.10.  Can ethanol honestly compete with low $2`s  gas?  America finally became energy independent and we created as many problems as we solved.

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Senior Advisor

Re: Refinery exemptions, going from bad to worse.

In the long run, it's best to maintain energy source alternatives to oil, even before considering positive impacts for agriculture, employment and rural America.  Oil will not always be this "cheap", we've seen this before.  Oil companies will rebound, with huge profits.  They should not be allowed to take advantage of the current situation to potentially irreparably harm the bio-energy industry.

Veteran Advisor

Re: Refinery exemptions, going from bad to worse.


@BA Deere wrote:

Ethanol has a "cheap gasoline" problem, we fight for 10% or 15% of the fuel market, gas prices being $2.10.  Can ethanol honestly compete with low $2`s  gas?  America finally became energy independent and we created as many problems as we solved.


Blame it on the man in the moon if You want. 

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Honored Advisor

Re: Refinery exemptions, going from bad to worse.

Is there some way that we could protect small refineries by cutting them a subsidy check to blend ethanol?   Shuttering refineries that`ve had to deal with less fuel demand and a period of negative $30 oil due to forced compliance to mandates ...(that us farmers in every other instance would oppose) could threaten our energy independence which was something we all wanted when gas was $4.  

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Senior Advisor

Re: Refinery exemptions, going from bad to worse.

Save the your energy, there's no positive way to spin this as far as MW agriculture is concerned.

 

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Senior Advisor

Re: The great danger ahead.

I know how some of you object to the political considerations to marketing but they are simply undeniable and unavoidable.  And they haven't been "undeniable"  since at least the 1870's, certainly the 1930's.

  But the great danger ahead for those of us in the bio-fuels business and particularly corn-ethanol is presidential politics. The simple fact is, that although trump has made a big show of being for "his farmers", every time it comes to push to shove, the trump administration has sided with Big Oil, every time, despite whatever trump may say.

  Now, when it's looking more and more every day like trump will lose and lose big in Nov. he has less and less to gain by honoring his commitments to "his farmers".  The truth is, whether you care to believe it or not, the trump administration and its friends have been engaged in the wholesale pilferage of the government.  Any business with the government that can turn a dime is being exploited, any regulation that can be twisted, any program that can be manipulated (or eliminated).   There's a reason why the inspector generals have all been fired.

  At some point, when it becomes clear that trump will lose, there will be a wholesale rush to strip as much as humanly possible from the government on their way out the door.  Any political influence the farmers still have will disappear.

  And just like with the refinery exemptions, once they're in place, they will fight like anything to keep them in place. It will take a concerted effort by some politicians committed to the agricultural community to put things right again. The thing I see about many Midwestern politicians like Grassley and Ernst is that while they like to talk the talk, often they don't walk the walk as far as the farmers are concerned.

  Again, you can accuse me of "politizing" marketing but in truth, it happened long before me.  I just try to be honest about it.

Frequent Contributor

Re: The great danger ahead.

WELL SAID RICK!!! Thank You

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