AGRIBUSINESS: Amendment to Keystone Pipeline Bill Repeals Corn Ethanol Mandate

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On January 15, Senator Dianne Feinstein (D-CA) and Senator Pat Toomey (R-PA) offered an amendment to the Keystone Pipeline Bill, repealing the corn ethanol mandate.

In the Renewable Fuel Standard, there are annual increases in the amount of renewable fuel that has to be blended into the total volume of gasoline in the U.S.

Feinstein and Toomey claim the RFS artificially inflates food and feed prices and damages the environment.

In a statement from the Renewable Fuels Association, president and CEO Bob Dinneen says the amendment is founded on a false premise.  He says corn prices are less expensive now than when the RFS was passed in 2007.

In 2014, the EPA did not issue a final rule updating ethanol requirements; however, ethanol producers still met the statutory requirement.

Around 40% of corn in the U.S. is used for fuel.

According to USDA, the farm share of each dollar spent on food in the U.S. is $0.174. Transportation costs account for $0.033 on the dollar, while energy makes up $0.056 for each dollar spent on food.

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