White Paper Released on Farm Income and the RFS

Cindy Zimmerman Audio, corn, EPA, Ethanol, Ethanol News, NCGA, NFU, RFS

Leaders of the National Corn Growers Association (NCGA) and the National Farmers Union (NFU) jointly released a new white paper Thursday on how the EPA’s proposed rule for the Renewable Fuel Standard (RFS) is threatening farm income and rural economies across the United States.

ncga-smallerThe paper cites the latest USDA data on net cash income for American farmers and ranchers, which is forecast to decline by 26 percent in 2015 from peak levels in 2013, as proof that the EPA proposal is impacting the farm economy. “That devastating forecast is worse than originally projected, and it represents the lowest farm income levels in nearly a decade, and it could get worse,” says the paper.

“There are factors other than the RFS,” said NCGA president Chip Bowling of Maryland. “(But) it has changed the basis, the price received for our corn, it has changed the way we’re buying equipment … most of that is due to the uncertainty in the Renewable Fuel Standard.”

nfu_logo2EPA is expected to release the final rule at the end of November and NFU president Roger Johnson says they have heard nothing to indicate they will change that time line. “They agreed to that in the court order,” said Johnson. “It’s hard to say what to expect from them.”

Johnson stressed that the so-called blend wall should not be included in any determination for volume requirements under the RFS. “When the RFS was put in place it was never intended that it would stop at ten percent,” he said. “It was always the intent that it would go way beyond ten percent.”

Bowling says corn growers have responded to the demand for more corn to produce ethanol and another record crop is expected this year. “We’re still expecting yields of 162 bushels per acre at minimum,” said Bowling. “We have carry over that’s growing and without a strong Renewable Fuel Standard demand for corn is going to decrease.”

Listen to the announcement from NCGA and NFU here: Press call on RFS/farm income white paper

Audio, corn, EPA, Ethanol, Ethanol News, NCGA, NFU, RFS