03/13/07 Groups urge end to ethanol subsidies

American Rancher March 13, 2007 The impact of feed costs on the livestock industry was the subject of a hearing last week before the House Agriculture Subcommittee on Livestock, Dairy and Poultry. Representing the National Cattlemen's Beef Association at the hearing was Ernie Morales of Texas, a feeder and rancher, who said all sectors of the cattle industry are feeling the pain from corn prices that have nearly doubled in the past year. Ethanol is one of the major factors driving the demand for corn and Morales says NCBA questions the continued need for ethanol subsidies. Morales: "NCBA members believe that these credits have served a valuable purpose, but a projected annual production level of somewhere between 12 and 15 billion gallons it is clear this is no longer a fledging industry. As such, when these incentives expire, this industry must be subjected equivalent market forces as the U.S. beef industry. Said another way, we believe the U.S. beef industry can and will remain competitive as long as we have the ability to compete on a level playing field with the ethanol industry for that bushel of corn." Joining the NCBA in urging for the sunsetting of ethanol tax breaks were the National Pork Producers Council, National Chicken Council, Dairy Farmers of America and the United Egg Producers. House Ag Committee Chairman Collin Peterson noted the livestock industry has benefited from corn prices below the cost of production in the past and he believes biofuel subsidies should continue. I'm Bob Hoff.