May 6, 2008

Some on Capitol Hill rethinking renewable fuels mandates: JORDAN

Congress taking note of renewable fuel policy's impact on livestock industry

During last December's debate on the Energy Independence and Security Act of 2007, the National Cattlemen's Beef Association (NCBA) warned members of Congress of the potential negative impact dramatically higher renewable fuels mandates could have on the nation's livestock industry. Jason Jordan, manager of legislative affairs for the National Cattlemen's Beef Association, explains that just a few months after passing that legislation, lawmakers are having second thoughts. 
 
Cut #1 :24  Outcue: "...in the marketplace."

Jordan emphasizes that energy policy is not the only cause of higher grain prices, but it is a contributing factor. And with other operating costs escalating as well, cattle feeders are feeling a big financial impact.

Cut #2 :32  Outcue: "...passed last December."

Along with 23 other senators, Sen. Kay Bailey Hutchison of Texas  sent a letter to the EPA about the status of regulations for states applying for an ethanol mandate waiver. Texas Governor Rick Perry has also petitioned the EPA to issue a 50 percent waiver of the new RFS. Other members of Congress are also sponsoring legislation to roll back subsidies and mandates for renewable fuels. 

Cut #3 :29  Outcue: "...on these commodities."

It is a common misperception that higher livestock production costs are always passed through to the retail level. But livestock producers are actually bearing the brunt of the impact, especially in light of recent increases in pork and poultry inventories. While feedlot losses are large right now, this will eventually hit the cow-calf sector of the industry. 

Cut #4 :23  Outcue: "...off their farm or ranch."