GrainNet.com
Texas A & M Study: Postponing Renewable Fuel Standards Will Not Reduce Corn Prices
Date Posted: Jun. 24, 2008

Washington, D.C.—Biofuels are needed to help reduce fuel prices, which are the root cause of higher food prices, according to the available evidence.

The Biotechnology Industry Organization today submitted comments to the U.S. Environmental Protection Agency (EPA) opposing Texas Gov. Rick Perry’s (R) request for a waiver of 50 percent of the Renewable Fuel Standard (RFS) mandate for production of ethanol from grain.

BIO President and CEO Jim Greenwood said, “Texas has not demonstrated in its petition to the EPA that the higher costs for corn currently impacting its livestock and agriculture industries are the result of biofuel production.

In fact, Texas’ own study of the problem shows that the soaring cost of oil is the primary cause of higher agricultural costs and food prices and that relaxing the RFS will not lower corn prices.

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