Corn Commentary

Oil Giants Lining Pocket in Wake of EPA Announcement

If you happen to be an ethanol proponent and you get asked by friends over the holiday what all the hub-bub is about related to the Environmental Protection Agency and their recent ethanol snub, just tell them to follow the money.

You see the stock values of four of the five biggest oil companies surged by a combined $23 billion in a single day after the Obama administration proposed to scale back the biofuel blending requirements, according to Americans United for Change.

“Big Oil hit the jackpot, but we are risking a huge slowdown in the development of next generation biofuels that are our best hope for reducing America’s dangerous dependence on foreign oil,” said Brad Woodhouse, the group’s president.

It almost appears that the administration is succumbing to the pressure and millions of dollars spent by big oil to slander ethanol in order to avoid another self-inflicted political wound, said one Washington insider. “Obamacare is too white hot for them to risk another hot potato and the petroleum industry made a lot of noise in Congress. The only way to overturn this EPA proposed action is to make them equally uncomfortable.”

In the interim one unavoidable fact remains in the favor of ethanol proponents…the Renewable Fuels Standard was designed by Congress to reduce our dependence on foreign oil and give consumers a fuel choice. It has done that nicely and created jobs and saved consumers money in the process.

It has honestly been awhile since the nation’s family farmers who grow corn have been in a political gunfight of this magnitude, but this is a fight worth winning. Corn prices below the cost of production should provide a powerful incentive. Stay tuned in the weeks ahead and be prepared to take action when the time comes.