USDA Changes Corn Wording After Ethanol Makers Complain

The U.S. government introduced new wording on corn use on April 8 following complaints from ethanol makers that they were not getting credit for the corn byproducts that are fed to livestock.

Instead of saying “corn for ethanol” in its monthly report, the U.S. Agriculture Department now spells out the corn is going to produce ethanol and byproducts. A footnote saying byproducts include distillers grains, corn gluten feed, corn gluten meal and corn oil.

The change followed complaints from ethanol makers that they are unfairly blamed for using a large portion of the U.S. corn supply when in fact one-third of that corn is turned into distillers grains.

The U.S. corn supply is forecast to reach its lowest levels in 15 years by the end of the summer.

Livestock producers and food makers say ethanol drives up feed costs and indirectly boosts food prices.



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