EPA biofuel policy sends corn prices lowerEPA biofuel policy sends corn prices lower

Since 2007, the Renewable Fuel Standard has mandated that we produce and use certain amounts of renewable biofuels. Up until this year, refiners have been able to hit those mandates by blending corn-based ethanol into gasoline at a ratio of 90 percent gasoline, 10 percent ethanol. However, since the mandates were established in 2007, an economic downturn, high gas prices and more fuel-efficient cars have all contributed to a previously unexpected decline in gasoline usage. As a result, in 2013, the mandated amount of ethanol produced will exceed 10 percent of gasoline usage — or what is being called the blend wall. That means refiners must either buy more ethanol than they can use, or they must buy credits for the ethanol the Environment...