Opinion: Ethanol mandate

Kansas City (Mo.) Star, via The AP

Tuesday, August 28, 2012

The Kansas City (Mo.) Star on the ethanol mandate, from Aug. 19, 2012:

The drought and sky-high corn prices are forcing federal officials to at least consider doing something that should have been done a long time ago.

Kill the federal ethanol mandate.

The law passed by Congress five years ago essentially says the industry will produce a certain amount of ethanol every year and American motorists will buy it.

The mandate curries favor with farmers and farm conglomerates that produce corn to be used to make the ethanol. It's a way to prop up the corn market even while it does far too little to drive down oil consumption or petroleum prices.

The dry times of 2012 have killed large portions of the corn crop, spiking prices, even while the mandate calls on ethanol producers to make more of their product. Meanwhile, farmers who have herds of cows to feed are draining their wallets to pay for higher-priced corn.

You'd think Republicans who constantly whine about government mandates would be chomping at the bit to get rid of this whacky incentive.

You would be wrong. GOP members of Congress — just like President Barack Obama and too many other Democrats — continue to kowtow to the farm vote, as fiscally illogical as that is.

Congress did allow one costly tax credit for the ethanol industry expire late last year. That's progress.

Obama should use the opportunity to waive the ethanol blending quota for this year. And Congress in 2013 should get rid of it for good.

Online:

http://www.kansascity.com

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GilbertEA 9 months ago

Our road to recovery when it comes to EPA regulations just seems unknown at this point. It certainly Kind of unbelievable that at a time when a drought is affecting both corn production an consequently it’s pricing, we are between a rock and a hard place about what we should do to proceed . Clearly the answer to help the farmers in need and shift the resources, but we have no idea how or if it will happen. How is it that regulatory policy doesn’t ever step back and check itself out, to help us rather than keeping is down? Now isn’t the time for us to let regulation get in our way of helping ourselves get back on our feet.

asb 8 months, 4 weeks ago

Corn ethanol mandates are driven by the corn growers. The drought is the perfect event to bring this foolishness into focus. There should not be a mandate. There should not be government subsidies of the corn ethanol industry. Big Ag wins, the rest of us lose.

JCLifer 8 months, 4 weeks ago

Maybe the state should get rid of its rules to use ethanol fuel in its cars too. Forcing this expensive subsidy on taxpayers for fueling state cars seems like double taxation to me.

oa.mo.gov/gs/fm/alternativefuels.htm