The following is a press release from the National Farmers Union:
WASHINGTON (July 20, 2012) – National Farmers Union (NFU) President Roger Johnson issued the following statement responding to the recent study “The RFS, Fuel and Food Prices, and the Need for Statutory Flexibility” by Thomas Elam, president of FarmEcon, LLC:
“The main culprits in the current rise in commodity prices are the drought and high petroleum costs, not the Renewable Fuel Standard (RFS) as this study suggests. Commodity prices were actually declining in the months prior to the drought.
“Some are erroneously using this study as a reason to reduce the RFS. NFU opposes the proposed legislation by Reps. Bob Goodlatte, R-Va., and Jim Costa, D-Calif., that could potentially reduce the RFS as suggested by the study. The legislation would require a biannual review of ending corn stocks relative to their total use and the RFS would be reduced if that ratio fell below certain thresholds.
“Many in the livestock industry are saying that we must choose between food and fuel as the drought continues and production estimates decline, but this is a false choice. Rather than dramatically altering RFS, we need to look at policies such as the Market-Driven Inventory System (MDIS) to save back some grain during periods of high production and low prices so that it can be used during times of low production and high prices like we are now experiencing.”
National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.
Source: National Farmers Union
Posted by Haylie Shipp