Groups Square off on RFS
by John Maday (Cattlenetwork.com) The renewable fuel standard, which mandates expanding use of ethanol for fuel, always has been a point of contention between grain producers and grain users such as livestock producers. This year’s shrinking corn crop has brought the issue into the spotlight. …U.S. Representative Bob Goodlatte (R-Va.) introduced a bill that would allow flexibility in the RFS based on the corn stocks-to-use ratio.
…National Farmers Union (NFU) president Roger Johnson says the main culprits in the current rise in commodity prices are the drought and high petroleum costs, not the Renewable Fuel Standard as this study suggests. “Commodity prices were actually declining in the months prior to the drought,” he says. “Some are erroneously using this study as a reason to reduce the RFS. NFU opposes the proposed legislation by Reps. Bob Goodlatte and Jim Costa (D-Calif.), that could potentially reduce the RFS as suggested by the study. The legislation would require a biannual review of ending corn stocks relative to their total use and the RFS would be reduced if that ratio fell below certain thresholds. READ MORE and MORE (Reuters) and MORE (Chicago Tribune) and MORE (JournalStar.com)