Despite many farming difficulties faced this summer, Grain Farmers of Ontario (GFO) is warning there is no justification for pulling back support for Canadian biofuel mandates.
Officials cite the record production that is predicted for many western Canadian crop farmers, as well as an above average corn crop in Manitoba and Quebec, not to mention the incredible environmental benefits provided by renewable fuel, to justify their position.
“A reduction in ethanol production could actually put more stress on livestock producers who have adjusted their rations to rely on the by product of ethanol – high fat and protein distillers’ grains,” said Barry Senft, CEO of GFO.
In Canada, the high price of grain is reflective of the world market adjusting to the short supply of corn in the US as a result of the drought, not an indication of Canadian grain production.
This increase in price will result in adjustments to corn usage throughout the supply chain, including the production of ethanol in the United States, eliminating the need to revisit the ethanol mandate.
“The market will decide where corn will be used this year, but we must be careful in Canada not to make policy decisions that are not reflective of our Canadian marketplace,” said Theresa Bergsma, general manager of the Manitoba Corn Growers Association.
“We will be in an excellent position to supply all markets this year including ethanol production that is beneficial to the environment and contributes distillers’ grains back to the feed market.”
Officials say one of the best ways for Canada to use the production of corn that exceeds food and feed market needs is in ethanol – a renewable fuel that reduces greenhouse gas by 62% annually in Canada.
Fuel ethanol produced from corn has 1.6 times more combustible energy than is used for its manufacture, including the production and transportation of the corn. In Canada the ethanol mandate has set the average minimum content for renewable fuels to be blended with gasoline at 5 percent, compared with 10 percent in the US.
“Ethanol is a win for everyone in Canada. Canadian farmers are experiencing yield increases that make it possible to find new uses for our crops, like renewable fuels, that benefit our country through reduced emissions and a decrease in foreign oil imports,” said Senft.
He explained Canadian grain farmers appreciate the government’s ongoing endorsement of renewable fuels, as the mandates have enabled the development of a sustainable alternative to fossil fuels while increasing access to market opportunities for grain farmers.
Officials stress that relaxing or eliminating Canadian mandates to control the price of grain will not have the desired effect of reduced feed prices in the world market and will not allow the marketplace to function independently.
“We understand the current high price of corn is making it challenging to feed livestock affordably … but reducing the Canadian biofuels mandates will not have any impact on the price of grain,” said Benoit Legault, president of Quebec’s commercial grain producers.
