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NSP: Texas Governor Rick Perry shows short-sightedness in request for RFS waiverTexas Texas Governor Rick Perry April 25 submitted a request to the U.S. Department of Energy for a waiver of the Renewable Fuels Standard that was implemented as a part of the Energy Independence and Security Act of 2007. The waiver request recommends a 50 percent reduction in the mandate for ethanol produced from grain. "It is unfortunate that the Governor sees fit to stymie a growing renewable fuels industry by requesting such a waiver which is based more on emotion than fact," said Dale Murden, President of the National Sorghum Producers. A study released last week by the Texas A&M University Ag and Food Policy Center and presented to the Governor, clearly indicates that the effects of a RFS waiver on the price of food and feed are minimal, especially in comparison to other market factors including the price of oil, post-farm marketing, and most significantly, the cost of labor. Labor accounts for more than 38.5 percent of every food dollar, more than double the value of farm production, which is just 19 percent of every dollar spent on food. However, Governor Perry's letter to EPA and subsequent press release claim that a 50 percent waiver of the RFS will dramatically and immediately reduce grocery store prices in the state of Texas. "Governor Perry has chosen to systematically ignore the findings of Texas A&M's study and oversimplify an extremely complicated economic issue," said Tim Lust, CEO of the National Sorghum Producers. "The renewable fuels industry is lowering the cost of every gallon of gasoline sold in America today. A RFS waiver could drive up the price of fuel, as mixing ethanol with gasoline significantly reduces the price at the pump. NSP opposes EPA granting a RFS waiver." In addition, Governor Perry's request for a RFS waiver could have the unfortunate effect of placing the livestock and row crop industries at cross-purposes with one another at a critical juncture for the entire agriculture industry. In the midst of a federal farm bill process, the production agriculture industry must stand united. It is vital for the livestock and crop industries to work together as each relies heavily on the other to sustain profitability. The RFS, a directive for renewable fuels production and usage, was expanded to 36 billion gallons by 2022 as part of the Energy Independence and Security Act of 2007. The bill seizes on the opportunity that the renewable fuels industry has to reduce dependence on foreign oil. In recent weeks, the renewable fuels industry, and specifically the RFS, has become a scapegoat for higher food prices that, in fact, are more closely tied to other factors. Only the Environmental Protection Agency can grant an RFS waiver. NSP represents U.S. sorghum producers. Headquartered in Lubbock, Texas, in the heart of the U.S. Sorghum Belt, the organization works to ensure the profitability of sorghum production through market development, research, education and legislative representation from coast to coast. To learn more about NSP, visit www.sorghumgrowers.com. 5/5/08 Date: 5/1/08 Advertisement
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