TCFA Disappointed by EPA Decision on RFS Waiver Request

Following the announcement that the Environmental Protection Agency is rejecting Governor Rick Perry’s request for a 50% reduction in the 2008 Renewable Fuels Standard (RFS), Texas Cattle Feeders Association issued the following statement:

Texas Cattle Feeders Association appreciates Governor Rick Perry’s efforts on behalf of the livestock industry, which brought national attention to the challenges U.S. ethanol policy has created for livestock producers. We still believe his position is correct.

At the price peak of June 27, 2008, corn prices had increased just over 200% since the implementation of the federal government’s RFS program in 2005. We remain concerned that the late planting and delayed maturity of this year’s corn crop may cause yields to suffer and result in higher prices.

We must also remember that the RFS mandate for corn-based ethanol will increase from 9 billion gallons this year, to 11.1 billion gallons in 2009 and ultimately to 15 billion gallons per year. Livestock producers will continue to suffer from higher corn prices driven by government ethanol subsidies.

The government’s policy still favors one industry over another by giving ethanol producers a competitive advantage over cattlemen in corn purchases.
cattle feeders nationwide have incurred a record of approximately $1.5 billion in losses between January and June of 2008.