Omaha, NE (August 10, 2012) – Hundreds of members and supporters of the American Coalition for Ethanol (ACE) are using their 25th annual national ethanol conference to demonstrate their thanks to USDA Secretary Tom Vilsack for supporting the RFS and ethanol industry.
Secretary Vilsack was presented a letter with 230 signatures from 20 different states thanking him for supporting the Renewable Fuels Standard (RFS) before addressing the conference Friday morning.
The letter thanks Vilsack for his public support for the ethanol industry despite current demands from certain parties to waive or reduce the RFS.
According to ACE Executive Vice President, Brian Jennings, “Despite panicked demands and political pressure from ethanol opponents to waive the RFS, Secretary Vilsack has been thoughtful and calm, pointing out the market is working, that ethanol producers, like other corn customers, are responding to price signals and that the drought is no excuse to waive the RFS.”
The letter indicates: “While many of us work at or invest in U.S. ethanol companies, we are also livestock producers and grain farmers, engineers and scientists, bankers and accountants, and represent many other walks of life. As the drought grips the nation, our crops, livestock, and businesses are experiencing the effects, so we empathize with those who are under financial and emotional stress. But we also understand that waiving the RFS will not make it rain or result in cheaper or additional supplies of feed.”
The letter points out that many livestock producers aren’t opposed to the RFS, saying: “Many of us are diversified and raise grain and livestock. We support the RFS and appreciate the fact that only the corn starch is used for ethanol, leaving all the corn’s protein and nutrients for livestock feed. We are disappointed that some meat and food manufacturers, who have always opposed ethanol, are now trying to exploit the drought for their own political or financial gain.”
Here is the letter:
August 10, 2012
The Honorable Tom Vilsack
United States Department of Agriculture
1400 Independence Ave, SW
Washington, DC 20250
Dear Secretary Vilsack:
We, the undersigned grassroots supporters of ethanol and members of the American Coalition for Ethanol (ACE), write to express our gratitude to you for standing strong in support of the Renewable Fuel Standard (RFS) despite demands from some interests to waive or reduce it.
The RFS is accomplishing exactly what Congress intended. Since 2006, it has done more than any other policy to reduce U.S. dependence on foreign oil, moderate gas prices, and create jobs in rural America.
While many of us work at or invest in U.S. ethanol companies, we are also livestock producers and grain farmers, engineers and scientists, bankers and accountants, and represent many other walks of life. As the drought grips the nation, our crops, livestock, and businesses are experiencing the effects, so we empathize with those who are under financial and emotional stress. But we also understand that waiving the RFS will not make it rain or result in cheaper or additional supplies of feed.
In fact, all corn users benefit from ethanol. Since the RFS was enacted, the average annual U.S. corn crop has grown from about nine billion bushels to 12 billion bushels. The RFS created demand enabling more corn to be planted, and more corn to be harvested on a per-acre basis (i.e. improved yields). Without the RFS, farmers likely would have continued to plant 80 million acres of corn each year, rather than the 95 million acres they planted this spring, resulting in a substantially reduced crop even before the drought.
As you know, livestock producers are not universally opposed to the RFS. In fact, many of us are diversified and raise grain and livestock. We support the RFS and appreciate the fact that only the corn starch is used for ethanol, leaving all the corn’s protein and nutrients for livestock feed. We are disappointed that some meat and food manufacturers, who have always opposed ethanol, are now trying to exploit the drought for their own political or financial gain.
Thank you for your steady defense of the RFS in the face of political pressure and for thoughtfully explaining that the market is working. As you’ve indicated, ethanol producers, like other corn customers, are responding to price signals and adjusting output accordingly. Even university economists point out that waiving the RFS will not materially reduce corn prices. We also appreciate that you have been effective in conveying to the media that it’s impossible to accurately know how much corn will be produced until harvest. Congress had the vision to ensure the RFS contained flexibilities to succeed even during difficult situations such as a drought. In the event corn supplies are dramatically down in the fall, these flexibilities will enable refiners to meet their 2012 and 2013 RFS obligations.
We want you and EPA Administrator Jackson to know U.S. grassroots support for ethanol is deep and strong, and we are grateful for and encouraged by your defense of the RFS.
cc: EPA Administrator Jackson