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12 March 24, 2016
2016 Logan County Farm Outlook Magazine
Lincoln Daily
News.coma wide range of issues: pharmaceutical regulations,
state-owned industries, foreign investment, labor
rights, environmental protections, copyright law,
government procurement, e-commerce, and more.
Opponents of the partnership say there is too much
restriction, and that it will have a negative impact
on some very important world issues such as
digital innovation and the global effort to combat
AIDS.
However, proponents of the agreement say that
it will open trade doors for the U.S. by lowering
some of the barriers that are now in place, and
make trade with the U.S. more affordable and more
attractive to the partnership members.
Hanging our hopes on ethanol
And finally, the future of ethanol is still strong, and
must be exploited for the sake of the family farm.
According to the Renewable Fuels Association in
November of 2014 and March of 2015, ethanol
exports topped out at 84 million gallons. From
March 2015 to August 2015 the exports dwindled
down to a mere 34 million gallons. However, in
January of this year, the U.S. hit a new all-time
high when the exports totaled 87.1 million gallons.
Notably, one-third of that market was purchased by
China.
Production of biofuels will continue to grow
according to mandates passed by the federal
government. The Energy Independence and
Security Act of 2007 outlines the growth of
renewable fuels to a total of 22 billion gallons by
2022.
Though there is a mandated demand, there is also
concern about the price at the pump and whether or
not consumers will purchase ethanol when gasoline
is less expensive. However, there are other factors
coming into play that offset consumer decisions.
While petroleum-based gasoline is competing
strongly at the pump with ethanol, ethanol is
competing strongly with the octane enhancers used
to manufacture various octane levels of gasoline,
keeping up the demand for the grain-based
product.
At the pump, gasoline products are marketed
as Regular, Mid-grade, or High-Octane. The
difference in the products is the octane level
of each. That octane level is reached through
the chemical compounds commonly known as
aromatics added to the gasoline at the refinery.
Aromatics used in gasoline include Benzene,
Toluene, and Xylene.
In addition to these chemicals, ethanol is becoming
a major player in the gasoline additive market,
because as an additive, it is cheaper than the three
chemical compounds.
In a February 3, 2016, article in Farmdoc Daily,
Scott Irwin and Darrel Good of the Department
of Agricultural and Consumer Economics at the
University of Illinois offered price comparisons
from January 2013 to January 29, 2016.
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