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NFU opposes possible RFS waiver
The National Farmers Union (NFU) says waiving the Renewable Fuels Standard (RFS) would have a negative impact on both the ag economy and the U.S. economy.
NFU president Roger Johnson says it would also jeopardize the nation’s energy security and job security for nearly 500-thousnd Americans.
“The RFS reduces our nation’s dependence on foreign oil, creates jobs and stimulates our domestic economy—and its existing structure provides sufficient market flexibility to deal with a reduced corn crop,” said Johnson. “A possible RFS waiver is not only unnecessary, but most importantly would send strong negative signals to the nascent advanced biofuels industry.”
NFU submitted those comments on the RFS waiver proposal to EPA last week. The farm group countered arguments by RFS opponents who blame ethanol for high feed costs for livestock. Johnson cited a recent Iowa State University analysis that showed eliminating the RFS would only reduce corn prices by less than five-percent.
“Ethanol production creates a valuable byproduct in the form of Dry Distillers Grains Solubles (DDGS). This highly nutritious byproduct is a major source of livestock feed, constituting the equivalent of one-third of the corn used in ethanol production, said Johnson. “Since mid-June corn prices have climbed more than 50 percent, so the ethanol industry has already responded by reducing its demand for corn by 15 percent since the beginning of the year.”
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Ethanol is about 9% of the total unleaded stream.
Ethanol uses over 35 million acres of crop land (over 40% of corn planted in the US)
Is it efficient to use 40% of corn for 9% of unleaded?
The Renewable Fuels Standard no longer has anything to do with reducing US dependence on foreign oil. It should be scrapped immediately. Because of the amazing improvements in oil technology, we can become self sufficient as soon as the federal government stops getting in the way of the oil companies and starts granting permits again. By obstructing traditional energy development and trying to replace it with “alternative” fuels, politicians and bureaucrats are pursuing personal ideological biases in defiance of common sense, responsible governance, and the law.