Thirty
billion dollars. That’s what a study
issued late October says the Renewable Fuel
Standard is likely to cost the meat and poultry industry next year.
Produced
by FarmEcon LLC in Indianapolis, the study found that, if the RFS is not
revamped, the loss in meat and poultry production next year “will balloon to
about $30.6 billion,” while both ethanol production and corn exports will
decline because of short corn supplies. Consumers, the study added, will see a
29 percent increase in meat and poultry prices, triggering a drop in
consumption of 11 percent.
“It
is time to step back and take a hard look at the realty of the 2007 RFS
schedule versus corn production capacity and the welfare of the country,” the
study concluded. “By diverting increasingly limited corn production into low
value-added ethanol production and exports, we have dramatically reduced the actual
and potential volume of high value-added, job producing food production.”
The
RFS requires a set amount of corn-based ethanol to be blended into gasoline
each year. The Environmental Protection Agency recently refused to grant
requests from NPPC
and many others to waive all or part of the RFS to ease pressure on soaring
feed prices.