Livestock Organizations Applaud No-Subsidy Ethanol Bill

Legislation introduced would cut ethanol supports.

Published on: Jul 15, 2009

A bill which would Legislation phase out government support for corn-based ethanol over five years has been introduced in the House of Representatives.

 

The potential legislation was applauded by the National Cattlemen's Beef Association, the American Meat Institute and the Balanced Food and Fuel Coalition (BF&F). The The Grocery Manufacturers Association (GMA) also pledged support for the bill.

 

HR3187 – dubbed the "Affordable Food and Fuel for America Act" was introduced by Representatives Joseph Crowley (D-NY) and Mary Bono Mack (R-CA).

 

The act also claims to encourage the commercial development of second generation biofuels. 

 

"After 30 years of support, corn-based ethanol is still reliant on government support to be commercially viable.  It is time to allow it to compete on a level playing field, and to stop propping up one industry at the expense of another," said NCBA president Gary Voogt. 

 

 "Since January of 2008, cattle feeders have lost a record $5.2 billion in equity due to high feed costs and economic factors which have negatively affected beef demand," Voogt added. "According to the United States Department of Agriculture Economic Research Service, in 2008, feed costs for livestock, poultry and dairy reached a record high of $45.2 billion – an increase of more than $7 billion over 2007 costs. Yet farm gate cattle and calf receipts have essentially remained flat, at between $49 and $50.2 billion during the past five years."

 

A draft of the bill can be seen at: http://www.scribd.com/doc/17347989/HR3187-Affordable-Food-and-Fuel-for-America-Act.