Livestock farmers seek pause in ethanol production
Posted: August 9, 2012 Filed under: Uncategorized | Tags: corn, drought, ethanol, Policy
The ethanol industry, backed by the Obama administration, says it’s unfair to blame it for turmoil in the corn market
Jim Abrams of the Associated Press gets his story picked up by the Saratogian, out of Saratoga Springs, N.Y., the story also made it to the Drudge Report, and it was picked up here by the Indianapolis Business Journal: “Livestock farmers and ranchers seeing their feed costs rise because of the worst drought in a quarter-century are demanding that the Environmental Protection Agency waive production requirements for corn-based ethanol.
“One-third of House members have also signed onto a letter urging EPA Administrator Lisa Jackson to relax ethanol production targets in light of corn supply concerns and spiking prices.
“The EPA says it is working with the Agriculture Department and is keeping a close eye on crop estimates and how they might relate to the biofuel program. But so far, the Obama administration, citing ample ethanol supplies, sees no need for a waiver. That’s an opinion shared by corn growers – many of them in the presidential election battleground states of Iowa and Ohio – who continue to support the mandate.
“If not now, when?” Randy Spronk, a Minnesota pork farmer, said of the EPA’s authority to defer the ethanol production requirement when it threatens to severely harm the economy of a state or region. “Everyone should feel the pain of rationing.”
Spronk, who is president-elect of the National Pork Producers Council, said livestock producers will have to reduce their herds and flocks because feed is becoming scarce and too expensive. Cattlemen and chicken farmers have the same concern. […]
“The government, [said Kristina Butts, executive director of legislative affairs at the National Cattlemen’s Beef Association] said, ‘is picking the ethanol industry to be the winner to get that bushel of corn.’
“The Renewable Fuel Standard, enacted in 2005 and then significantly expanded in 2007, requires that 13.2 billion gallons of corn starch-derived biofuel be produced in 2012. The intent was to reduce both greenhouse gas emissions blamed for climate change and dependence on foreign oil.
“One consequence is that 40 percent of the nation’s corn crop now goes to ethanol producers, compared with 36 percent for feed. The rest is divided between processed food and exports. Critics say ethanol also is a big factor in the price of a bushel of corn going from an average $2.15 a bushel in the 1997-2006 period to more than $8 today.”