Expectations for greater biofuel plant capacity and the federal Renewable Fuels Standard have created a “can’t lose” demand proposition for
Babcock told the committee that ethanol mandates have created a demand of between 25 percent and 30 percent of the
He expects a bright outlook for corn and soybean prices over the next five years, facilitated by tax credits and energy mandates, as long as crude-oil prices remain above $100 per barrel. There is little doubt, he said, that biofuels from corn and vegetable oil will meet Congress’ mandated levels.
To read a copy of Babcock’s full statement at the Aug. 18 hearing, click here.