More Governors Requesting Ethanol Waivers

By CnAgri2012-08-16 19:47:11 Print

In separate letters sent Tuesday, Governor Beverly Perdue, D-NC, and Governor Mike Beebe, D-Ark., officially petitioned the U.S. Environmental Protection Agency to grant a waiver from the ethanol quotas mandated by the federal Renewable Fuels Standard. Their requests follow similar pleas from Maryland Governor Martin O'Malley and Delaware Governor Jack Markell made last week.

According to Pork Network, Governors Perdue and Beebe join a growing list of recent requests to waive the RFS, including calls from 156 U.S. House members, 26 U.S Senators, the United Nations.

Top officials of the National Pork Producers Council, National Cattlemen's Beef Association, National Turkey Federation, and the National Chicken Council issued a petition last month also urging the EPA to waive its policy on mandated ethanol production as the severe and widespread drought has decimated the U.S. corn crop driving feed prices to all-time highs.

Due to the drought, USDA forecasts record high corn prices of $7.50 to $8.90 per bushel at the farm level, which could be more than 40 percent higher than the 2011-12 crop year.

Further, USDA reduced its feed usage forecast from its report last month by over 15 percent; much of this short corn crop's burden will fall heavily on livestock and poultry producers.