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FAPRI STUDY REPORTS LESS SOYBEAN USED WHEN E-15 IS PASSED
BrownfieldAgNews reports:

Columbia, MO -- A new report from the University of Missouri's Food and Ag Policy Research Institute says passing nationwide, year-round E15 legislation could be a mixed bag for row crops.

Director Seth Meyer says while it would benefit U.S. corn demand and prices, he tells Brownfield it would also impact soybeans.

"All you're doing is trading off some gallons of biodiesel becomes some gallons of ethanol, and so there's a trade-off between those two commodity prices to some extent as well."

In the study, FAPRI says farmers would likely plant more corn and fewer soybean acres, because of nationwide, year-round E15. The U.S. livestock sector would also see an increase in the cost of livestock feed.

Meyer tells Brownfield there would be fewer tradeoffs for agriculture if there's an increase in the ethanol blending cap in the Renewable Fuel Standard. But that hasn't happened yet.

Meyer says the nationwide, year-round E15 legislation wouldn't be a mandate, but a policy that allows for the sale of the fuel, with retailers and consumers determining its growth. FAPRI's new study suggests corn demand to expand gradually over time, reaching around a 13 percent average ethanol blend rate by 2035.


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