Renewable Fuel Standard

EPA Administrator Lisa Jackson is expected to decide by mid November whether to use her authority to waive the ethanol Renewable Fuel Standard for 2013. Several governors have written formal letters petitioning Jackson to take such action due to the drought’s devastating effect on the corn crop, and the resulting high feed prices now facing the livestock industry. Washington Cattlemen’s Association Vice President Jack Field talks about efforts to get Washington’s Governor’s office to join in requesting a suspension of the RFS.

FIELD: The hope that we had was, if we could get that waiver granted, that may provide some level of relief on the prices that livestock producers are paying for feed. We’ve got virtually every protein you can think of produced here in Washington state, and the single most important aspect in every producers operation is how you can lock in and insure an affordable feed supply.

Field says at this point no decision has been made by the Governor’s office.

FIELD: They question whether the waiver would deliver the expected price relief that the livestock industry is seeking. Given the way the markets function and how closely the futures markets seem to follow the political activities and actions I think that we would see a benefit in terms of the prices potentially coming off a little bit. We’ve got to make every effort we can to try and find some relief in those feed markets because as corn continues to rise it’s creating some significant financial hardships for livestock producers to get feed priced in and to be able to hopefully come close to breaking even.

Field concludes that the ethanol industry is a vital industry.

FIELD: Nobody is saying we’re opposed to biofuels. We’re just simply opposed to the federal government picking a winner and a loser out of this issue instead of letting the marketplace do that.

I’m Lacy Gray and that’s Washington Ag Today on the Ag Information Network.