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The mandate is still there and they are lifting the tariffs to Brazil in order to import MORE ethanol. The ethanol being produced in the United States is not going to quit either. The only difference is, that the US government is not going to pay subsidies (or bonuses in other words) to US farmers who use there land for the greater good of the American fuel industry. Without the subsidy, it is likely the farmers will have less incentive to produce the corn, because the payout for said produced corn would not be as beneficial. On top of that, with tariffs being lifted with other countries, it means that the market opens wider, making foreign produced ethanol a marketable product in the US, thereby making the sale of said product competitive. Brazil can now sell cheap to the US, and not worry about the additional taxes. This will mean that US farmers will have to sell even cheaper to make a buck... which in turn makes the incentive to grow the corn for fuel even less. So we'll see if the mandate holds... only the government is held to the mandate... not the farmers. They are just helping with ingredients...but the government is responsible for the product.
LaterZ,
BCs300z |
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