In this month?s World Agricultural Supply and Demand Estimates (WASDE) report, the USDA lowered the use of corn in ethanol by 25 million bushels. Ernie Goss, director of Creighton University?s Economic Forecasting Group, said this is a bit of a concern since the President Bidens Inflation Reduction Act calls for a 40 percent reduction in CO2 emission.
Many ethanol organizations see the move from ethanol to electric vehicles taking more than 20-30 years. Goss said we?ll have to wait and see what happens since the Biden administration is obviously committed to bringing in electric vehicles.
The recent Creighton University Rural Mainstreet Index also asked bankers about delivery, capture, and sequestration of CO2 from ethanol plants in their area. About 63% of bankers support this process, with compensation to farms over which the pipelines cross, while 23.1% of bankers expect the use of eminent domain will be used for underground pipelines to cross farmland.
