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This is buck on a soapbox

As I said during the 2012 drought we need more flexibility built into the ethanol program. During times of plenty we need the ability to blend it more ethanol into more gasoline. During times of drought we need the ability to be able to blend less ethanol in the gasoline. This one-size-fits-all effort used in the blending of Ethanol clearly doesn't work. Having said that clearly when I repeated this during the 2012 drought I was evil I'm sure during times of plenty when I am talking flexibility I should be the hero.
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27 Replies

Re: This is buck on a soapbox

I've said that since 2006.

 

But everybody was bound and determined to keep to the hard mandates and fast timetable and thus push the boom to its terminal phase. A zillion talking points about how all of this was just perfect and wonderful and anybody who said otherwise had a mother who wore army boots.

 

The boom was q

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Re: This is buck on a soapbox

got away from me.

 

So the boom was certainly boomy and enjoy the bust which may be equally, well...

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Re: This is buck on a soapbox

Buck, I guess you can get a small last laugh in that most of those guys who thought they'd get to vote themselves money forever are by definition bad marketers and have missed the boat on the last easy cahnce to ring up some $$$$.

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Re: This is buck on a soapbox

They are also mostly government pail calves who style themselves as political conservatives.

 

And THEIR mothers wear army boots.

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Re: This is buck on a soapbox

If you want a 15% blend rate to consume the excess of bushels this year you also have to be ready for a 5% blend rate when we're down to pipeline surprise supplies like 2012.
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Re: This is buck on a soapbox

Exactly, although even then it remains a pretty crude tool to manage supply with.

 

The interesting question will be what sort of squealin' will be coming out of the Iowa finishing barn during caucus time.

 

 

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OKdon
Senior Contributor

Re: This is buck on a soapbox

The secret to increased ethanol usage is demand. Not demand created by government mandate but demand created by consumers valuing and wanting our product. It could be marketed as a superior product, a fuel saving element or as a renewable resourse for those inclined to appreciate the value of that.

 

So don't ask the government to create demand for you but sell your product based on value to the consumer. As an average consumer i would be more interested in buying a product based on the advantages provided to me by it's continued use. Increasing the government mandate is merely a ploy by farmers to strenghten the corn price. We shouldn't expect that anymore than wanting to strenthen the oil price.

 

Where is your advertising promoting ethanol and the benefits derived from it. Sell what you have to sell based on it's merits. Don't depend of government to create your demand.

BA Deere
Honored Advisor

Re: This is buck on a soapbox

Aren`t you 2 polecats popping the champaign corks a little too early?  🙂    I mean yeah "this" is the day you`ve been waiting 7 long profitable years for and we`re only a couple months into it so far, it`s been 2010 since I sold any corn with a 3 in front of it.  that`s the one good thing about being poor, the stack of bills demand that you sell...even though you`d sure like to hold that $7 corn until it got down to $3  🙂

 

 

the world population keeps going up, the easy oil that Jed Clampet`s bullet made bubble out of the ground is gone, the tar that`s left is expensive to pump.  Corn needs energy to grow and one way or another energy will get amortized into the price of corn.  Yeah, we may have 2, 3 years of razor thin years...but that`s the way it`s always been. These last 7 great years have been an anomaly, I thanked God every morning that I heard those markets.  Now we`re in for a rough patch, this too will pass.

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Doug N
Veteran Contributor

Re: This is buck on a soapbox

Why not just drop the mandate and problem solved?  Let the market hash it out.  How are you supposed to run a factory not knowing what you will be able to output each year?  How do far ahead of time will the industry know its going from 10 to 5 or 10 to 15?  I would also think this would put an artificial floor and ceiling in the market as they know when the crop is short that demand in the form of ethanol will disappear or appear over night. 

 

It might sound good on paper but more government involvement is never good in my opinion.

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