Lower demand where? World wide there is a lower demand for oil but not in the US.
Lower prices at the pumps have more people driving. As far as ethanol is concerned the EPA mandate is 10% minimum. An easy example is gas demand is 10 gallons of which 1 is ethanol. Demand goes up, say 2X. So now they need 2 gallons of ethanol. That means they need 2x times the corn to make that ethanol.
Funny thing is if this, plus corn now being able to be shipped to China drives up demand for corn prices will rise again. Corn hits about 5.50 a bushel or so and everyone will plant corn again and drive the prices back down.
Then add in the EPA. They wanted to delay the 15% mandate because so many acres were taken out of CRP over the last several years due to prices. Somewhere near 33 million acres. That worries the EPA because a lot of that is highly erodible soil. Plus row crops have a higher erosion rate than the same soil in small grains or hay.
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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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