Corn growers expect some boost from EPA's ethanol decision

Local growers say the U.S. Environmental Protection Agency's decision Wednesday to allow more ethanol to be mixed with gasoline for new model cars will expand the market for corn.

The EPA approved the use of 15 percent ethanol, or E15, in vehicles manufactured since 2007. A second decision regarding vehicles manufactured from 2001 to 2006 is expected later this year.

"It's a small step, but it's an indication that a larger step is coming," said Mike Geske of Matthews, Mo., a member of the National Corn Growers Association Board and past president of the Missouri Corn Growers Association.

About 18 percent of the nation's vehicles will now be able to use E15, according to the Missouri Corn Growers Association.

The EPA's decision to allow higher ethanol blends doesn't require that people use them. It's up to service stations to offer higher ethanol content fuels to consumers, Geske said.

"Corn farmers depend on ethanol plants as another place to use corn," said Roger Schwab of Jackson, who grew about 400 acres of corn this year. "We can only feed so much livestock and only export so much."

Most corn grown in Southeast Missouri is shipped through the SEMO Regional Port and exported overseas, Schwab said.

The EPA's decision will have a more direct effect on corn farmers in northern Missouri, where there are six ethanol plants, Geske said.

"An expanded market is headed our way. It's desperately needed because average yields are increasing so rapidly due to new technology. We have to find new markets to stay at a profitable level," he said.

Geske doesn't foresee the 5 percent increase in ethanol blends creating the demand for more ethanol plants to be built, but he does expect it to generate more business for the existing facilities.

"Ethanol is wonderful for rural economies," Schwab said. "Ethanol plants provided jobs when they were being built and now that plants are up and running continue to provide jobs."

Ethanol also produces significantly lower greenhouse gas emissions when it's burned, Geske said.

"If we switched from 10 percent to 15 percent ethanol, the environmental benefit is equivalent to taking 10.5 million cars off the road," Geske said.

Missouri Corn Growers Association CEO Gary Marshall said he's disappointed that the EPA's decision doesn't go far enough. However, it does open the door for more ethanol use, he said.

"By expanding the role of our homegrown fuels, we are keeping American jobs and dollars here rather than exporting them overseas," he said. "The phrase 'Support the Midwest, not the Middle East' still stands."

Since 1979, up to 10 percent ethanol or E10 has been used for all conventional cars, light trucks and nonroad vehicles, according to the EPA.

mmiller@semissourian.com

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