RFA, NCGA weigh in on WASDE, call for support of the RFS

By Erin Voegele | January 10, 2014

The USDA has released its January WASDE report, announcing that 2013 was a record crop year with a harvest of 13.93 billion bushels. The average yield was 159 bushels per acre. The forecast for corn use for ethanol was increased to 5 billion bushels. 

“This report represents the best and worst of times. American farmers are to be congratulated for their history-making hard work and success. Sadly though, misguided decision-makers at EPA and elsewhere in the Administration are on the brink of punishing these same farmers by undermining demand. Now is absolutely the wrong time to reduce the Renewable Fuel Standard volumetric targets. Due to the expected corn surplus, corn prices have already dropped to nearly $4.00/bushel – half the price of corn in late summer 2012, below the price of corn when EISA was signed into law in 2007, and below the farmer’s cost of production,” said Bob Dinneen, president and CEO of the RFA.

“American farmers are not the only ones who will be punished by the proposed lower RFS requirements. Small businesses and investment will be undermined. Innovation will be discouraged. And the pain will get personal as American drivers across the country are hit with increased gas prices. It doesn’t have to be this way, there is still time for the Obama White House and EPA to do the right thing and restore the numbers for ethanol to their statutory levels,” Dinneen continued.

National Corn Growers Association First Vice President Chip Bowling also commented on the impact of the RFS proposal on corn demand. “It is important to keep in mind that the current USDA projections do not take into account the proposed reduction to the required volume obligation for ethanol under the Renewable Fuel Standard in 2014,” said Bowling, a farmer from Newburg, Md. “As this proposed reduction is still under review, reports released today will not show the market impact of this disastrous proposal.  I urge all farmers, allies and those who depend upon the economic activity agriculture generates to aid NCGA efforts to maintain markets by adding their voice to the growing outcry against the destructive lowering of ethanol volume obligations.”