Lower demand where? World wide there is a lower demand for oil but not in the US.
Lower prices at the pumps have more people driving. As far as ethanol is concerned the EPA mandate is 10% minimum. An easy example is gas demand is 10 gallons of which 1 is ethanol. Demand goes up, say 2X. So now they need 2 gallons of ethanol. That means they need 2x times the corn to make that ethanol.
Funny thing is if this, plus corn now being able to be shipped to China drives up demand for corn prices will rise again. Corn hits about 5.50 a bushel or so and everyone will plant corn again and drive the prices back down.
Then add in the EPA. They wanted to delay the 15% mandate because so many acres were taken out of CRP over the last several years due to prices. Somewhere near 33 million acres. That worries the EPA because a lot of that is highly erodible soil. Plus row crops have a higher erosion rate than the same soil in small grains or hay.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
