AgWired

“If you really look at whose behind the ethanol industry, it’s the American agricultural industry,” said Steve McNich, CEO of Western Plains Energy based in Oakley, Kansas. “There’s no better example at working your way out of a market than the American farmers. The history of the American farmer is that if there is ever an opportunity to make money, they’ll produce enough to make sure that doesn’t happen. The ethanol industry is no different.”

This is how McNich explained the tie of American farmers to the ethanol industry and what the future may hold with the predictions that America will have the largest corn harvest in the country’s history this year. This coming after several years of record production levels and rising surplus numbers.

One of the main problems with current policy, specifically the Renewable Fuels Standard (RFS2), is that it caps corn-based ethanol numbers to 15 billion gallons and also stipulates that corn ethanol can never be considered an advanced fuel. McNich explained that another problem with the policy is that while people perceive the policy to pit biofuels against oil, it really pits biofuels against biofuels. He said that as advanced technologies get into the market, it will further limit the amount of corn ethanol in the marketplace which is going to put more and more corn on the ground. McNich continued, “We could have an economic train wreck this country is not prepared for and ultimately looking at a farm bail-out.”

You can listen to Steve’s full interview here. Steve McNich Interview

Tom Buis, CEO of Growth Energy expanded upon the surplus concern by stressing that the American farmer can produce the fuel America needs and still produce food. However, Americans have been fed mis-truths so Growth Energy has launched a national TV campaign to re-introduce the benefits of ethanol to Americans.

Buis also noted that a year ago, when Growth Energy was formed, they knew the importance of consumer involvement in telling ethanol’s story and so they created GrowthForce. Now more than 17,000 members strong, the team of consumers helps to tell ethanol’s positive story to neighbors, friends and colleagues and legislators. You can become a member by signing up here.

As policy is one of the key elements to the future success and growth of the ethanol industry, Growth Energy is focused on several key pieces of legislation on the federal level including mandating all cars be flex-fuel, all gas stations should have a blender pump, as well as the extension of the ethanol blender’s credit, and keeping the ethanol tariff in place. You can hear Tom Buis discuss these key priorities in an interview here. Tom Buis Interview