Many ethanol plants contracted corn in the summer when prices were up around $7 a bushel. But as corn went down, these plants took a huge loss and some have declared bankruptcy. According to USDA Secretary, Ed Schafer, programs are in place that could be used to lend federal money to existing ethanol operations. The government is committed to large amounts of ethanol in 2009, and has to protect farmers who deliver their corn to ethanol plants. What do you think is the outlook of the ethanol industry?
Archive for December, 2008
Fate of Ethanol Plants
Friday, December 12th, 2008Are you ready for an emissions tax on livestock and grain operations?
Tuesday, December 2nd, 2008It’s been a recent hot topic concerning the entire agricultural industry. The Environmental Protection Agency (EPA) issued an advance notice of rulemaking regarding greenhouse gas emissions (GHG). Here is a brief summary of what it could cost to stay in the livestock business as printed in Dairy Herd Management magazine.
“USDA has stated that any operation with more than 25 dairy cows, 50 beef cattle or 200 hogs emits more than 100 tons of carbon and would have to obtain permits under Title V in order to continue to operate if GHG are regulated. According to USDA statistics, this would cover about 99 percent of dairy production, over 90 percent of beef production and over 95 percent of all hog production in the United States.
The amounts of the tax can vary from state to state. The EPA has a “presumptive minimum rate” for Title V permits of $43.75 for this year. If a state charged this rate, the cow tax for dairy would be $175 per cow, for beef cattle $87.50 per head, and a little more than $20 per pig.
Unfortunately, the deadline to submit comments to the EPA was November 28th. But it would not hurt to still contact your Congressional delegate and tell them the impact such a rule would have on your business. What are your thoughts on this proposal which could threaten agriculture viability?
