Legislation addresses feed costs and ethanol
Farm and Ranch October 7, 2011 U.S. House Agriculture Committee Vice Chairman Bob Goodlatte has introduced legislation to at least change the Renewable Fuels Standard, if not eliminate it altogether. Goodlatte: “The RFS mandate has created a domino effect. Tightening supplies are driving up the price of corn. The higher costs for corn are passed on to livestock and food producers. In turn consumers see that price reflected in the price of food on grocery store shelves. In the debate over ethanol, the government is picking winners and losers and livestock producers, food producers and consumers are the losers.” One of Goodlatte’s bills would eliminate the standard while the second would reform the RFS. Goodlatte: “The Renewable Fuels Standard Flexibility Act will link the amount of ethanol required for the Renewable Fuel Standard to the amount of the U.S. corn supply. This legislation will provide mechanism that when the USDA reports that U.S. corn supplies are tight, based on the ratio of corn stocks to expected use, there would be a corresponding reduction of corn ethanol made to the RFS.” The National Cattlemen’s Beef Association supports the reform bill while the National Corn Growers, the American Farm Bureau and other ethanol organizations oppose Goodlatte’s bills. Pro-ethanol groups say numerous studies have concluded the RFS is a minor contributor to corn prices. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net. ?
