USDA reports record corn crop, RFS reduction would increase surplus

In its January World Agricultural Supply and Demand Estimates report, the USDA reported a record corn harvest of 13.9 billion bushels, with an average yield of 158.8 bushels per acre. The projection of corn use for ethanol was increased over the prior month, reaching 5 billion bushels, approximately the same usage seen in the 2011-’12 marketing year. 

“This report represents the best and worst of times,” said Bob Dinneen, president and CEO of the Renewable Fuels Association. “American farmers are to be congratulated for their history-making hard work and success. Sadly though, misguided decision-makers at EPA and elsewhere in the administration are on the brink of punishing these same farmers by undermining demand. Now is absolutely the wrong time to reduce the renewable fuel standard (RFS) volumetric targets,” he continued, noting corn prices have already dropped below the farmers’ cost of production.