The EPA will require 14.5 billion gallons of corn-based ethanol next year, rather than the 15 billion outlined by the Renewable Fuel Standard.
“And you may say that’s not very much, but it still amounts to quite a few bushels when you talk about corn grown in Nebraska,” Larry Mussack, President of the Nebraska Corn Growers Association, tells Nebraska Radio Network.
Mussack says the timing especially stings in light of falling corn prices, expected to fall further in wake of the EPA decision.
Mussack says the industry anticipated the decision, which might soften the blow.
“If there is a bright spot, I guess that may be it, that we haven’t seen quite the reduction that we might have anticipated,” according to Mussack.
Not only did the EPA reduce the amount of ethanol required for the RFS next year, but lowered the requirement for 2015 to 14.05 billion gallons.
The EPA decision could drop corn demand by more than 500 million bushels the next two years. Nebraska is the second leading ethanol producing state, behind only Iowa. Nebraska ranks third in corn production and the state uses distillers grain, a by-product of ethanol production for its cattle feeding, number one in the nation.
AUDIO: Brent Martin reports [:45]