User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


37° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Freezing rain switching to snow Sunday evening through Monday.

 

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Back to all news

Agriculture

Find local businesses
on the KELO Pages!

 

Meat Groups Ask Govt To Ease Up On Ethanol

July 31, 2012, 10:02 PM by Brady Mallory

Meat Groups Ask Govt To Ease Up On Ethanol

Corn prices have gone up more than 60 percent since June and livestock producers say they stand to lose a lot if the prices continue to climb.

Calling it a potential crisis, two groups are now asking the Obama Administration to scale back ethanol production to save the corn for feed.

"I've heard of a lot of horror stories," Brian Schmidt of Schmidt Grain Co. said.  "You're hearing about herds being liquidated."

The National Cattlemen's Beef Association and National Pork Producers Council want the Environmental Protection Agency to decrease ethanol production. On Monday officials with the groups sent a formal request to waive "in whole or substantial part" ethanol output requirements under the Renewable Fuel Standard.  In short, this request is essentially so the ethanol industry and farmers are not competing against each other for corn.

"The livestock producer is my best friend. If he can't turn a profit because of high cost of hay, grain and feed it will have a negative impact," Schmidt said.

If it costs more for the meat producer, meat will likely cost you more at the grocery store; just one of the many scenarios coming from this drought.

"All we can do now is hope and pray for rain," Schmidt said.

Under the RFS, refiners have to make 13.2 gallons of ethanol this year. And ethanol officials says that does not depend only on the upcoming corn crop.

"That can be used, met by ethanol already in stock or met with credits for gallons that will be bought," Senior Vice President for the American Coalition for Ethanol Ron Lamberty. 

Because of this, Lamberty said that could reduce the total by creating about three billion gallons.

As the owner of Lambo's BP, Lamberty is concerned cutting ethanol production could raise gas prices by about $1.09 per gallon.  

"We understand the drought is going to hurt.  It's going to hurt everybody.  Plants are closing down.  To have one group decide to shift the burden of the drought; it's unacceptable," Lamberty said.

The government has yet to act on this request.  Lamberty said the request for a RFS waiver must come from a refiner or the state.

Previous Story

Next Story


Comments







Sponsored
Find Local Businesses on KELO Pages!

View agriculture

You may also like

Collapsed Grain Bin Leaves 40,000 Bushels of Corn on Highway

12/18/2014 6:04 PM

Cleanup continues in Egan, SD, after a collapsed grain bin left about 40,000 bushels of corn on Highway 34.

Full Story | Watch
Cargill Encouraged By Economic Progress With Cuba

12/18/2014 6:20 AM

One of the nation's largest food and commodity companies is encouraged by President Barack Obama's move toward normalizing relations with Cuba...

Full Story
US Agriculture Has Big Appetite For Cuba Trade

12/19/2014 6:01 AM

U.S. agriculture has a big appetite for freer trade with Cuba.

Full Story
Monday Ag Markets

12/15/2014 1:28 PM

Here's a look at agriculture markets as of noon Monday:

Full Story
Tuesday Ag Markets

12/16/2014 1:45 PM

Here's a look at agriculture markets as of noon Tuesday:

Full Story


Events