HAPPY TUESDAY READERS!

This article appeared just a few days ago.......it indicates that livestock states are getting more and more frustrated that feed prices are continuing to go sky high due to corn being diverted to ethanol manufacturing, driving up the feed costs.

U.S. House bill would lower mandate to use ethanol

Thu Sep 22, 2011 10:25pm GMT

WASHINGTON, Sept 22 (Reuters) - Legislation was being drafted in the U.S. House of Representatives that would reduce the federal mandate to use fuel ethanol when corn supplies are tight, a congressional staff worker confirmed on Thursday.

The staffer said a bill was under consideration but declined to discuss details.

The Renewable Fuels Standard guarantees a share of the motor fuel market for corn-based ethanol. Livestock and dairy producers say the mandate gives a financial advantage to ethanol makers and unfairly boosts the cost of livestock feed.

According to consulting firm MF Global, the legislation would reduce the ethanol mandate by 25 percent when the corn stocks-to-use ratio is projected to be less than 7 percent and reduce it by 50 percent when the ratio would be 5 percent or less, a bare-bones level for supplies.

Representatives Bob Goodlatte, a Virginia Republican, and Bob Costa, a California Democrat, were the likely sponsors. They are from districts with large livestock industries.

The ethanol mandate for this year is 12.6 billion gallons. Production expected to exceed 13.5 billion gallons, due to exports and high oil prices, which make ethanol attractive.

A dozen bills involving ethanol have been filed in the House. Some would encourage ethanol use while others would limit the portion of ethanol in fuel or repeal a tax credit for the fuel. One bill would repeal the ethanol mandate. (Reporting by Charles Abbott; Editing by David Gregorio)

"Pete" Landry.................comments welcome at way2gopete@yahoo.com