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Altering the Renewable Fuel Standard is Not an Option, Says NFU

30 July 2012, at 7:31am

US - National Farmers Union (NFU) President Roger Johnson issued the following statement in support of a study recently released by the Center for Agriculture and Rural Development (CARD) at Iowa State University.

The study makes clear that calls for the immediate reduction, revision or repeal of the Renewable Fuel Standard (RFS) would not achieve the stated goals of those industries calling for such action.

“NFU stands by the belief that concerns from the livestock sector and some members of Congress are unwarranted. The study showed that eliminating the RFS would reduce corn prices less than five per cent.

“NFU opposes Sen. Ben Cardin’s legislation, S. 3428 - The RFS Flexibility Act, which would require a biannual review of ending corn stocks relative to their total use. Subsequently, the RFS would be reduced if that ratio fell below certain thresholds.

“Rather than dramatically altering the RFS, we need to look at alternative options. Last fall NFU released a University of Tennessee study on the Market-Driven Inventory System (MDIS), which would reserve 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 experiencing currently. This is a more sensible approach to saving taxpayer dollars than attacking the RFS.“

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