Livestock industry want's change in ethanol policy

Livestock industry want's change in ethanol policy

Farm and Ranch September 16, 2011 If you look at the USDA’s latest supply and demand report for U.S. corn you will see that more of the crop is forecast to be used for ethanol production this year than for livestock and poultry feed in the U.S. Livestock and poultry industry representatives told a House Agriculture Subcommittee hearing this week it is corn use for ethanol which is driving up feed costs and driving some of them out of business.

Economist Steve Meyer spoke on behalf of the National Cattlemen’s Beef Association.

Meyer: “The usage of corn for feed and residual is lower now than it was five to ten years ago. Food and industrial usage is about the same. Exports go up and down but generally on a level field as well. The only one of the four major uses of corn that has gone up is ethanol and it has gone eight-fold in five years.”

Iowa Congressman Leonard Boswell expressed skepticism that ethanol is to blame for high feed costs.

Boswell: “I don’t think that ethanol is causing the problem. I haven’t seen how it is yet. Twelve-point-five billion bushels of corn this year. I think you said that is the third largest in our history.”

The livestock and poultry representatives said there should be a waiver for the Renewable Fuel Standard when corn production is low or corn prices exceed a specified level.

Bob Dinneen, President of the Renewable Fuels Association called the panel that testified at the hearing a stacked deck.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.

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