Ethanol supporters are responding to the call for reforming the Renewable Fuel Standard. Growth Energy CEO Tom Buis was especially critical of the effort to tie higher grain prices to the government’s mandate for increasing amounts of biofuels. Buis said farmers across the country are dealing with a severe drought while the livestock lobby is spreading misinformation and taking advantage of the crisis by playing on people’s fears during a time of economic turmoil. He called it nothing more than an orchestrated attempt to place blame on American ethanol producers for rising food prices. On that note – National Farmers Union President Roger Johnson points out that commodity prices were actually declining in the months prior to the drought – he says the main culprits in the current rise in commodity prices are the drought and high petroleum costs – not the RFS.
National Corn Growers Association President Garry Niemeyer said the RFS is working – revitalizing rural America, reducing our dependence on foreign fuel and reducing the cost of gasoline. He said now is not the time for change – as changes would only ensure that consumers suffer due to significantly higher fuel prices. NFU’s Johnson says instead of dramatically altering the RFS – we should look at policies such as the Market Driven Inventory System to save back some grain during periods of high production and low prices so it can be used during times of low production and high prices.
Source: NAFB News Service