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December 5, 2013

National Turkey Federation keeps focus on RFS volatility of feed costs

The National Turkey Federation on Thursday will encourage government regulators at a national public hearing to proceed with their one-year proposed decrease in the 2014 Renewable Fuels Standard (RFS) but will warn that Congress still must pass legislation fully reforming the flawed RFS. The forced blending of corn ethanol into gasoline has created an unsatisfactory business model for corn farmers as well as poultry and livestock producers, according to the National Turkey Federation.”Ethanol’s leaders just one year ago had dismissed the full costs of the RFS burden on corn prices as being just four cents a bushel, but now claim that the small decrease proposed would drive corn down by more than a dollar,” said National Turkey Federation president Joel Brandenberger. “When it served their purpose they tied themselves to a study showing minuscule impact of the RFS on feed prices. Now their reaction against this proposed small cutback to the current RFS has been to claim a potential farm crisis and the gutting of the RFS. The fact is that corn prices were driven down by this year’s huge corn acreage planted to reap ethanol profits. But meanwhile, well into next spring, turkey farmers still must feed from supplies of last year’s high-cost corn planted for ethanol.”  Read More

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