According to Boyle, an ethanol blenders tax credit and tariffs on imported ethanol should not be renewed when they expire at the end of 2011.
USDA data showing declining corn supplies in the U.S. and around the globe will continue sending corn prices skyward, which will also send consumer food bills significantly higher.
“Declining corn supplies will put demand for corn by the ethanol industry and livestock and poultry producers on a collision course that can mean just one thing: higher feed prices and higher food prices,” says American Meat Institute (AMI) President J. Patrick Boyle.
World Agricultural Supply and Demand Estimates (WASDE) projects that U.S. corn production for 2011-12 will be 417 million bu. lower with expected yields down from last month across most of the Corn Belt. The report also forecasts a global decline in corn stocks.