Milling & Baking News - November 27, 2012 - 20

Industry Activities 

To bakers’ disappointment, ethanol mandate waiver request denied

grain prices while hurting consumers at the pump. “The R.F.S. is well-designed and is the primary reason why the U.S. has WASHINGTON — The Environ- as those we face in our country this emerged as the global leader in the development of advanced biofuels,” mental Protection Agency (E.P.A.) year.” Similarly, coalition of livestock, the A.E.C. said. “There will be other has denied a request by industry stakeholders to impose a waiver on poultry and dairy organizations stalking horses advanced by the oil the Renewable Fuel Standard. The “expressed extreme disappoint- industry to weaken the R.F.S., but it is a step in the right direction to put E.P.A. said it found that suspending ment” over the E.P.A.’s decision. “We are extremely frustrated and this one behind us.” the R.F.S. would reduce corn prices The U.S. Department of Agriculby only 1%. The decision drew criti- discouraged that E.P.A. chose to igcism from the baking industry and nore the clear economic argument ture, in its Nov. 9 Crop Production Report, forecast 2012 corn proother groups. duction at 10,725,191,000 bus, up “We recognize that this year ’s 19,462,000 bus from 10,705,729,000 drought has created hardship in bus forecast in October but down some sectors of the economy, par13% from 12,358,412,000 bus in 2011. ticularly for livestock producIf realized, corn production would ers,” said Gina McCarthy, air chief be the smallest since 10,531,123,000 for the E.P.A. “But our extensive bus in 2006. The coalition said the analysis makes clear that congresethanol industry will use more than sional requirements for a waiver 40% of the corn supply in 2013. have not been met and that waivCarryover stocks for 2012-13 are ing the R.F.S. will have little, if any, now forecast at 647 million bus, impact.” which are a 35% decrease from Congress gave the E.P.A. the aulast year ’s carry-over amount, the thority to grant a full or partial coalition said. waiver of the R.F.S. if its imple“We now have about mentation would severely one-third less of the harm the economy or en‘It’s stunning. More than half of the corn that we need to advironment of a state, renation’s counties have been declared equately supply animal gion or the entire country, feed, ethanol, exports or if the E.P.A. determines drought disaster areas, crop yields hit new and sufficient carry-over that there is an inadequate lows, and yet E.P.A. denies a waiver to levels,” the coalition supply of renewable fuel. provide much needed relief.’ said. “But the governA coalition of trade groups — Robb MacKie, president and chief executive ment continues to manwhose constituents are ofﬁcer of the American Bakers Association date that a significant coping with surging corn amount of the corn supprices petitioned the ply be blended next year E.P.A. and urged federal legislators to waive the R.F.S. on from tens of thousands of family into gasoline.” The National Cattlemen’s Beef concerns the regulation threatens farmers and livestock and poultry corn supplies already hard-hit by producers that the food-to-fuel Association submitted a letter to policy is causing and will cause se- the E.P.A. in October stating that this summer ’s historic drought. “Bakers are dismayed that the vere harm to regions in which those the cattle industry and other liveEnvironmental Protection Agency farmers and producers operate,” the stock groups have suffered significant economic losses due to the denied a waiver request under the coalition said in a statement. Jeff Lautt, c.e.o. of Sioux Falls, R.F.S. mandate and the drought. The Renewable Fuels Standard for cornbased ethanol,” said Robb MacKie, S.D.-based POET, applauded the de- N.C.B.A. said that from December president and chief executive officer cision. POET is an ethanol producer. 2007 to August 2012, the cattle feed“The E.P.A. today made a sound ing sector of the beef industry lost a of the American Bakers Association. “It’s stunning. More than half of decision in denying a waiver of record $4 billion in equity on high the nation’s counties have been de- the Renewable Fuel Standard,” Mr. feed costs and economic factors that clared drought disaster areas, crop Lautt said. “As studies have shown, have softened beef demand. “In light of the most widespread yields hit new lows, and yet E.P.A. a waiver would have likely had denies a waiver to provide much little to no impact on commodities drought to face the country in more prices in the aftermath of the recent than 50 years, the refusal to grant needed relief. “The Clean Air Act provides au- drought. This effort was nothing this waiver is a blatant example thority to the E.P.A. administrator to more than the latest attempt by re- of the flawed policy of the R.F.S.,” waive the R.F.S. requirements in cir- newable fuel opponents to under- said J.D. Alexander, N.C.B.A. presicumstances that threaten economic mine policy that has helped make dent, and a cattle feeder from Pilger, Neb. “The artificial support for corn harm. This is the time for Congress America stronger.” The American Ethanol Council ethanol provided for by the R.F.S. is to re-evaluate the corn-based ethanol program and consider whether (A.E.C.) defended the E.P.A.’s deci- only making the situation worse for it contains an appropriate relief sion, arguing that an R.F.S. waiver cattlemen and women by driving up valve to address conditions such would have done little to reduce feed costs.” MBN
20 / November 27, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

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Milling & Baking News - November 27, 2012

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