WASHINGTON, March 8 U.S. ethanol makers will
produce 12.6 billion gallons of ethanol this marketing year,
well below the federal target for use of the renewable fuel,
because of high corn prices due to drought, said the influential
think tank Food and Agricultural Policy Research Institute on
"Production recovers in 2013/14 because of lower corn prices
and the need to meet RFS2 (federal biofuel use) mandates," said
FAPRI in an annual report on the U.S. farm sector. It projected
output of 14.6 billion gallons in the new marketing year.
Cellulosic biofuel production volumes are "uncertain," FAPRI
said, and its projections were well below the federal mandate.
It pegged cellulosic ethanol output at 9 million gallons in the
marketing year that ends on Aug 31 and 21 million in 2013/14.
Biodiesel production was forecast to rise steadily in the
near term, thanks to the federal requirement to use biofuels,
said FAPRI. Its projections assumed the Environmental Protection
Agency sets the biodiesel mandate at 1.28 billion gallons a year
An Energy Department report this week indicated U.S. ethanol
production of 12.3 billion gallons during 2013, compared to the
mandate of 13.8 billion gallons. Analysts say producers will
claim credit for exceeding the mandate in the past to offset a
shortfall this year.