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Ethanol and the Drought
Mon November 19, 2012
EPA Will Not Lower Ethanol Mandate
This year’s drought caused several governor’s as well as various livestock and poultry groups to petition the Environmental Protection Agency to wave a federal rule mandating the production of a certain amount of ethanol.
The Renewable Fuel Standard sets the amount of bio-fuels, including corn ethanol, that must be blended with gasoline nationally.
Livestock groups, including the National Cattleman’s Association, petitioned the EPA to waive the it’s ethanol mandate saying it would lower corn prices.
The EPA disagreed saying the requirements for the waiver were not met and that even if it was granted it would do little to lower feed prices.
The Illinois Beef Association agrees with the EPA’s Decision. Vice President Reid Blossom said many Illinois farmers raise corn and livestock unlike in other states, like Texas, which have more farmers that only raise cattle and must purchase all of their feed.
Blossom said that that makes the issue a regional one.
Talking about the standard, Blossom said, "We remain supportive of it. We understand that other states, cattle organizations and livestock groups around the country differ, but we try to look out what's best for our cattleman here in Illinois."
The Iowa Cattleman’s Beef Association also disagreed with National Association and did not call for a waiver.
Corn Still in Trouble