Reduced Ethanol in Fuel Won’t Break Industry: Swenson & Goss
Two Midwestern economists say the E-P-A’s proposed reduction in ethanol production in 2014 will contribute to a “slow down” in what’s been a booming ag economy, but it won’t drive the farm economy into negative territory.
Iowa State University economist David Swenson says there won’t be “much of an impact” on the production of ethanol. That overseas demand should prop up corn prices, according to Swenson.
Creighton University economist Ernie Goss agrees that the ethanol industry will “weather” this storm over a reduced “Renewable Fuels Standard” for ethanol production in 2014. Anything connected to agriculture is slowing down, according to Goss, from farm equipment sales to ag land prices, but he expects ethanol plants to survive.
Goss and Swenson made their comments during a weekend appearance on Iowa Public Television’s “Iowa Press” program.