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Bill ties ethanol production to corn supplies

The leading beef, pork and poultry groups support legislation introduced today to rewrite legislation for the Renewable Fuels Standard.

Congressman Bob Goodlatte, a Republican from Virginia, sponsors the bill with Representative Jim Costa, a Democrat from California, that would tie the amount of corn ethanol production required under the RFS to U.S. corn supplies.

Representative Goodlatte says things need to change, “I’m a strong supporter of renewable fuels when they compete fairly in the marketplace. But, the current policy is unfair and is causing unintended and negative consequences for American consumers, livestock farmers and food manufacturers.”

The Renewable Fuels Association – on behalf of other renewable fuels groups – says that would be a bad move and may lead to higher prices at the pump. The National Corn Growers Association leadership is urging members of congress to oppose the Renewable Fuels Standard Flexibility Act, adding that “the U.S. ethanol industry is an integral part of job creation and economic opportunity throughout rural America.”

However, the livestock and poultry groups say their bottom line is severely hurt by the high costs of corn that they partly blame on the RFS coupled with low corn stocks.

R.C. Hunt – president elect of the National Pork Producers Council – is a producer in Wilson, North Carolina. He says what livestock producers are most concerned about is if there were a widespread drought – the corn crop would shrink further. And, after ethanol production, Hunt says, they’d have to split what’s left.

“That is a problem. I can’t just stop feeding my animals and neither can the other producers that surround us.”

Even considering the co-product of distillers dried grains, Goodlatte says ethanol still consumes nearly 30% of the corn supply. In a statement, the RFA says there is enough corn to meet all needs and extended an invitation to the sponsors of the bill to -quote -“discuss the facts.”

 AUDIO: Conference call with Rep Goodlatte and others (37:00 mp3)

ACE says RFS bill would undo gains