June 26, 2007

Ethanol surge feared to spur cattle feed shortfall
 

The National Cattlemen's Beef Association (NCBA) is opposing the legislation concerning the increase of corn-based ethanol to 15 billion gallons by 2015 over fears of cattle feed shortage.

Jay Truitt, NCBA vice president of government affairs said that while the association supports the nation's investment on renewable energy to lessen dependence on foreign oil, the use of feed grains or corn to produce more ethanol will certainly deal "a serious blow to cattle producers on feed shortage."

NCBA opposes any increase above 7.5 billion gallons for feedgrain-based ethanol mandates. Currently, the Renewable Fuels Standard requirements, which passed as part of the Energy Policy Act of 2005, require at least 7.5 billion gallons of production by 2012.

The use of ethanol fuels has tripled over the past five years and NCBA is urging a market-based approach for ethanol production and greater use of ethanol derived from products other than feed grains.

Truitt said cellulosic ethanol can offer new production opportunities to cattle producers with a negligible impact on grain prices. He urged lawmakers to put emphasis on policy development of cellulosic fuels.