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Negative Impacts of Ethanol Mandates to House Committee

06 May 2013

US - The National Chicken Council (NCC) last week provided detailed comments to the House Committee on Energy and Commerce in response to a white paper the committee issued that asked nine questions for agricultural sector stakeholders specifically addressing the impacts of the Renewable Fuel Standard (RFS).

This paper is the second in a series of whitepapers that the committee is issuing in an attempt to study the RFS, its effectiveness in meeting its goals, and the unintended consequences it has had and is having on other industries. The full whitepaper is available here.

NCC agrees with the committee that it is now prudent and worthwhile to conduct an assessment of the RFS. A number of unintended consequences have complicated the mandate for corn, especially for traditional users of corn.

The RFS has impacted market forces by spurring the rapid 2007-2012 increase in US ethanol production. In its comments, NCC argues that the RFS is a significant driver in impacting feed costs, food prices, and related aspects of agricultural production, marketing, and consumption, and it is and has been distorting markets. Therefore, not only is a debate in order, but appropriate congressional action is warranted to resolve a most burdensome, mandatory program.

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