ST. LOUIS, Aug. 7, 2008 (PRIME NEWSWIRE) -- The National Corn Growers Association hailed the U.S. Environmental Protection Agency's decision today to deny a request to reduce the renewable fuels standard as growers prepare for the second-largest corn harvest in history and consumers clamor for solutions to high gasoline prices.
"We're very grateful but not surprised by the EPA's decision, given the fact that projections are calling for another bountiful harvest," said NCGA President Ron Litterer, a corn grower in Iowa. "We hope that those who have been critical of corn ethanol because of its perceived connection to higher retail food prices will work with us to help achieve a diversified and comprehensive solution to high energy prices and our reliance on foreign oil."
Based on reams of scientific, economic and industry data put before the agency, the EPA's decision turned down a request by Texas Gov. Rick Perry to cut the renewable fuels standard in half for one year. Gov. Perry had cited ethanol's affect on feed and food prices, despite a study by Texas A&M researchers that the requested waiver would have little impact.
Recently, the Texas A&M study was validated by economists at Purdue University, who tied most of the recent spike in corn prices to higher oil prices, which had in turn caused the demand for ethanol and corn to jump.
"The higher energy costs, the higher everything else costs," Litterer said. "Corn ethanol helps provide energy independence and keep energy prices down. It's part of the solution to the real problem."
This week, Litterer noted, three separate analyst reports predicted a corn crop of more than 12 billion bushels and a yield averaging more than 154 bushels per acre. On Aug. 12, the USDA will release a crop production report that will be the first official government projection of production and yield based on actual crop estimates and will also offer a complete look at the ramifications of Midwest flooding earlier this season.
The National Corn Growers Association (NCGA) is a national organization founded in 1957 and represents approximately 33,000 dues-paying corn growers and the interests of more than 300,000 farmers who contribute through corn checkoff programs in their states. NCGA and its 48 affiliated state associations and checkoff organizations work together to help protect and advance the corn producer's interests.