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Texas Sen. Ted Cruz led a rally Wednesday at a refinery in Philadelphia that declared bankruptcy a month ago, railing against “Wall Street speculators†profiting off the federal ethanol mandate and casting himself as a blue collar champion.“We can save these jobs,†he promised. “This is about jobs…good union jobs, jobs that provide for your families, that provide for your kids….The working men and women in this country, you should have a federal government that is standing with you rather than fighting against you.â€The venue and timing of the town hall-style event were unusual. It wasn’t a campaign rally, though Cruz’s delivery, the packed tent, and the ovations that punctuated his remarks left a similar impression.
It's above my pay grade to understand what the hell my Senator is doing up there, giving this kind of speech, at this particular time, in the first place. If it's about 2020, GO, Ted GO!!!!
Not 2020. He's running for re-election Now.
Are other refineries heading for bankruptcy due to RINs? Or just this one? Why the bankruptcy? Is this refinery poorly managed, if others are surviving?
The economic environment for the livestock and poultry sector changed dramatically, starting in 2006. In a few months, despite a record 2005 U.S. corn crop, feed costs more than doubled and feed price variability increased sharply. From the spring of 2005 to the spring of 2008, the farm price of corn more than tripled. Although other factors were contributors, the continuing double-digit growth in corn processing for ethanol was a major element behind the changed feed cost situation. Current USDA projections indicate that from the 2004-05 corn marketing year to through August 31, 2009, demand for corn by the ethanol industry will have increased by 2.68 billion bushels. That’s new competing demand that is equivalent to about 43% of the amount of corn fed to U.S. livestock and poultry in 2004-05. Feed costs typically have accounted for about 55 to 65 percent or more of the cost of producing livestock and poultry. The exact percentage varies by species and may fluctuate slightly from year to year. With their largest cost category increasing dramatically, net returns for producers have been under pressure. From the 2004 through the 2008 crop marketing year, the increase in the corn usage for ethanol is an amount equal to 43 percent of the entire livestock and poultry corn usage during 2004/05.
