WASHINGTON – The American Meat Institute (AMI) has submitted comments in support of the waiver of the Renewable Fuels Standard that Texas Gov. Rick Perry filed in April.

The waiver would allow the state to limit the amount of ethanol from corn required to be produced by the state. Perry, industry groups and environmentalists have said the ethanol mandate has put unneeded pressure on the market in a time of rising food prices.

“We are submitting these comments in support of this petition because the new, elevated ethanol mandates, enacted by Congress in December 2007, are and will continue to severely harm the economy of Texas, our members, and the United States of America if the EPA does not grant this waiver,” wrote J. Patrick Boyle, president and CEO of the AMI.

The AMI gave many reasons for the waiver to be approved, including:

•           Substantial losses to be incurred by meat, livestock and poultry producers in Texas and elsewhere as a result of significant, artificial increase in the prices of corn and other crops since 2005;

•           Extreme weather and flooding have negatively impacted corn and feed growing regions;

•           Undue hardships on U.S. households during a time of financial stress;

•           Feed and food-price inflation across many sectors;

•           The severity of economic impact is greater than anticipated and is evident;

•           Insignificant benefits relative to severe costs incurred;

•           Inability to be flexible during a crop failure or flooding in remaining growing season;

•           Foreseen price distortions that will continue to materialize;

•           Adversely impacting investment and employment in food security;

•           Stifling of the next generation of biofuels;

•           The ‘Twenty in Ten’ goals are achievable with the waiver.

 

Source: American Meat Institute