The Blue Arkansas blog notes a story in the Paragould Press last week in which Rep. Rick Crawford said he favors the elimination of renewable fuel standards — which would require 36 billion gallons of grain-based ethanol to be blended into gasoline by 2022 — and goes on to admit that eliminating the RFS would hurt corn prices on the commodities markets.
“The RFS is a key component of $8 [per bushel] corn,” Crawford said. “Somewhere we have to find that balance.... If we got rid of the RFS, there would be fallout in the market. But it is not as bad as some would say. You can’t take $8.25 [per bushel] corn.”
That funneling a significant portion of the nation's corn crop into hungry gas tanks has an impact on the rising price of corn isn't that big a shocker, but as Blue Arkansas notes, Crawford's remarks probably won't play well with the John Deere set.