Recently introduced legislation, Next Generation Fuels Act, could pave the way for increased use of renewable fuels in the U.S., according to the National Corn Growers Assn.
The COVID-19 outbreak exacerbated headwinds the ethanol industry was already grappling with, which included reduced gasoline consumption and softening exports. A recent report from CoBank indicates the ethanol industry currently has excess capacity of 1 billion gallons and this is expected to increase to 2.4 billion gallons in 2021.
Perhaps no commodity has felt the negative consequences of the COVID-19 pandemic more than ethanol, and thus corn, as gasoline usage declined dramatically during the stay at home restrictions took effect.
The United States exported 96,000 barrels per day (b/d) of fuel ethanol in 2019, the first annual drop in U.S. ethanol exports since 2015. Despite the decrease, total exports remained at the second highest level on record.
With more than one-third (34.5%) of the annual U.S. corn crop used in the production of fuel ethanol, sooner or later, declining production of ethanol will be felt by corn growers; not necessarily a good trend for ag equipment makers or dealers.
In this week's podcast we look at a recent CoBank report on the potential for ethanol production growth over the next decade. Also in this episode, Jack Zemlicka discusses the post-planting mindset of "selling solutions" in the Technology Corner, and we dig into some of the results of the 6th annual Strip-Till Practices study from Strip-Till Farmer, another drop in machinery loans in the Dallas Federal Reserve district and improved 2Q revenues for Art's Way.
The latest episode of On the Record is now available! In this week's program we look at a recent CoBank report on the potential for ethanol production growth over the next decade. Also in this episode, Jack Zemlicka discusses the post-planting mindset of "selling solutions" in the Technology Corner, and we dig into some of the results of the 6th annual Strip-Till Practices study from Strip-Till Farmer, another drop in machinery loans in the Dallas Federal Reserve district and improved 2Q revenues for Art's Way.
Ethanol usage, which helped fuel the ag equipment sales boom from 2005-2013, has flattened out, but exports continue to prop up its overall production. Nonetheless, the fight to maintain and grow its place in the fuels market has been frustrating.
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Precision ag pioneer Al Myers is a member of the Farm Equipment Shortline Legends Hall of Fame 2024 class. It’s been almost 35 years since the Ag Leader founder introduced the groundbreaking Yield Monitor 2000.