Ethanol screwing up food chain

Houston Chronicle:
Texas ranchers and dairy operators Monday backed a request by national agricultural producers to suspend the nation's Renewable Fuels Standard because it is causing corn prices to soar and livestock producers to suffer.

A coalition including the National Cattlemen's Beef Association and National Pork Producers Councilpetitioned the Environmental Protection Agency for a waiver "in whole or in substantial part" to the output requirements under the Renewable Fuels Standard for 12 months.

"An unsustainable situation has been created by the drought combined with the lack of cushion in corn supply due to the tremendous demand from ethanol producers," Tom Super, a spokesman for the National Chicken Council, part of the coalition, said Monday.

Texas did not have any organizations named on the petition, but cattle, hog and dairy producers in the state not only endorsed the request. Several called for ending the fuels standard altogether.

"It's not just for the cattlemen. It's for the consumers," said Bill Hyman, executive director of theIndependent Cattlemen's Association of Texas. "Everything is going to be higher because of the use of corn in ethanol."

If the drought intensifies in the Midwest and other corn-producing areas and more of the crop is diverted to ethanol, ranchers and dairy operators are likely to face another year of record feed costs.

"Dairy producers already are losing money on the milk they're producing," said Darren Turley, executive director of the Texas Association of Dairymen. "We've seen some relief this year, but grain is staying high."
... 
Changing ethanol policy is probably harder than turning an air craft carrier around.  The corn farmers probably want to keep the program because the higher prices make the drought less costly for them.  The EPA is nuts when it comes to ethanol and they are not likely to change anything.  Congress might be able to change things but then they would have to deal with Obama who still thinks alternative energy make sense, even though it has been a failure.

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