June 21, 2018

Fuel, Food Price Issues and Doha Developments

Marcia Zarley Taylor reported yesterday at DTN (link requires subscription) that, “Ethanol’s rapid expansion since 2006 has seriously exaggerated price increases in corn and jeopardized the domestic livestock industry, perhaps far more than the Bush administration has been willing to admit.

So concluded a new analysis by former USDA Chief Economist Keith Collins, a fixture in farm policy for the past 30 years and an authority who is lending credence to the request by Texas Gov. Rick Perry, a Republican, for a partial waiver of the Renewable Fuels Standard mandate in that state. Collins’ white paper, commissioned by Kraft Foods, was part of the public comments submitted to the Environmental Protection Agency as it considers whether it should grant the exemption. The public comment period ends June 24, and EPA is expected to issue its decision, in consultation with USDA and the Department of Energy, next month.”