Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Monday, June 30, 2008

Goodlatte: reduce ethanol mandate

The chinks in the ethanol armor are increasingly evident. From the office of Rep. Bob Goodlatte:


Ranking Member Bob Goodlatte and 50 of his Republican colleagues sent a letter to the Administrator of the Environmental Protection Agency (EPA) asking the Agency to reduce the amount of ethanol mandated by the 2009 Renewable Fuel Standard (RFS) to help alleviate the pressure on rising corn prices. Corn prices have increased significantly over the last few years and coupled with increased energy prices, livestock producers throughout the country are struggling under the weight of increased input costs. As a result of the record corn prices, wheat, soybeans, rice, and other food commodities have also seen a dramatic price increase and continue to drive up food costs for American consumers.
There are a variety of factors contributing to high commodity prices including export restrictions, energy prices, and global demand. Recently, adverse weather conditions in the U.S. have further exacerbated shortages in and increased prices on the commodity market. Nearly one-third of the U.S. corn crop is projected to be used to meet the increased RFS of 9 billion gallons of ethanol in 2008.
Currently, the EPA is reviewing the waiver request sent by Governor Rick Perry of Texas seeking a 50% reduction in the RFS. States can request waivers for up to one year and may ask for the waiver to be renewed at the discretion of the Administrator.
“The recent flooding in the Midwest has created devastating crop losses and these record corn prices will continue to climb. There are many factors that have increased the price of corn, but the only factor that we can immediately control is the amount of the corn supply that must be dedicated to meet the RFS. Our livestock producers and the American consumer have been hit hard in the pocket books. I urge the Administration to reduce the government mandated RFS so we can lessen the economic harm facing millions of Americans,” said Ranking Member Goodlatte. “I support the development and use of alternative fuels; however, we cannot allow government mandates to pick winners and losers. A temporary waiver will offer immediate relief to those affected by the current shortage of the corn supply.”

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