White House offers drought relief, feels heat to waive ethanol mandate

Droughts across the United States have gotten so bad as of late that even President barack Obama is getting involved.   He announced recently that “The Department of Agriculture will but up to 170 million dollars of pork, lamb, chicken and catfish to help support farmers suffering from the drought.”  President Obama had serious problems with the blocking of a farm bill that would greatly help residents of Iowa who are dealing with problems posed by the drought.  “If you happen to see Congressman Ryan, tell him how important this farm bill is to Iowa and our rural communities,” said Obama.  As the drought continues sweeping across America, crop production has taken a massive hit, yielding some of the lowest yields in two decades.  Because of this, people who make a living off of production of these crops are “asking the government to waive a five year old requirement that gasoine sold in the U.S. contain roughly 9 percent ethanol. ”  Waiving this requirement would greatly help these people because in order to produce ethanol, corn is needed, and by waiving this requirement, corn will not be at such a premium.  Although this would help livestock producers, many ethanol companies feel that these producers blame them too much for the lack of livestock.  Both the ethanol companies and these producers are facing problems because if the ethanol companies cut production to satisfy the needs of the livestock producers then many drivers would be unhappy.  Tom Kloza, a publisher of the Oil Price Information Service believes that if ehtanol production was cut then we would “have chaos.”  The government must find a way to equally please both the ethanol companies and the livestock producers because both of their fields are very important to our way of life.

Ben Roberts

http://economywatch.nbcnews.com/_news/2012/08/13/13260895-white-house-offers-drought-relief-feels-heat-to-waive-ethanol-mandate?lite

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