ERS releases report on future ethanol production
Poultry industry will continue to support the biofuels policy of the administration.
The Economic Research Service of the USDA has published "Full Throttle U.S. Ethanol Expansion Faces Challenges Down the Road." The report focuses on the Renewable Fuel Standard in the 2007 Energy Independence and Security Act.
Use of ethanol to produce E10 blends will attain a plateau, falling short of the proposed 2020 biofuel initiative, according to the report. Although extensive research is underway on cellulosic ethanol, the second generation is far from commercialization and will not be a reality for at least a decade in the opinion of industry observers.
Eligibility to be classified as a renewable fuel will depend on lifecycle greenhouse gas emissions, the subject of controversy following the publication of a recent EPA Study.
Despite these recent reports, the poultry industry plans to continue to "support" the biofuels policy of the administration. Corn prices will continue to be linked to the price of oil.
The administration and Congress, which both favor corn-based ethanol, will continue to distort the normal supply-demand equilibrium traditionally based on seasonal production in relation to both domestic and world demand for livestock feeds and human food.