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Comment 11 for Proposed Low Carbon Fuel Standard Amendments (lcfs2024) - 45 Day.

First NameThomas
Last NameMacLean
Email AddressT.maclean@comcast.net
Affiliation
SubjectTransportation vs Food
Comment
One issue of concern has been the use of food crops for
transportation fuel - specifically the use of soy beans for
renewable diesel.  While we love the increased use of R99 in boats,
trucks and generators I was thinking back to the problems
attributed to the corn ethanol industry and its impact on food corn
prices.
https://www.farmaid.org/blog/askfarmaid/does-corn-and-ethanol-effect-my-food-prices/#:~:text=So%20ethanol%20production%20has%20led,eggs%2C%20and%20dairy%20to%20rise.
 
To understand this issue I contacted Professor Aaron Smith, PhD, at
the Ag Econ Department at the University of California, Davis. 
From him I learned that the soy beans produce both oil and meal,
where the meal is used for animal feed - primarily chickens in the
US and hogs in China. Historically on the commodity market the
prices of oil and meal moved together depending on the crop supply
each year; however a few years ago the prices unlinked because of
the demand for the oil increased more than the demand for soy meal.
 Today while oil makes ups 20% of the weight it provides 40% of the
value for a crop of soy beans.
 
Going forward, in reaction to the higher demand and higher price of
oil we would expect to see more soy beans planted. This will also
increase the supply of soy meal, without a corresponding increase
in demand. The net result could be lower prices for soy meal that
goes to feed chickens in the US.
 Contrary to the problems caused by ethanol, the move to soy-based
renewable diesel could also benefit farmers who buy soy meal for
feed.

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Date and Time Comment Was Submitted 2024-01-26 09:38:29

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