Despite a severe drought that is raising food prices, the US Environmental Protection Agency (EPA) refuses to waive a mandate diverting part of the corn crop to making ethanol to blend with gasoline, and Congress should step in, says the American Frozen Food Institute (AFFI).
"EPA's decision to reject the corn-ethanol RFS (Renewable Fuel Standard) waiver will saddle food producers and American grocery shoppers with increased costs when we can least afford it," said AFFI President and CEO Kraig R. Naasz, in calling for Congress to override the EPA. "Many consumers will experience higher food
costs firsthand this Thanksgiving."
The RFS in its present form was ordained in 2007, and aimed at helping the United States achieve energy independence by reducing consumption of gasoline. But it has been a godsend to Archer Daniels Midland, an agribusiness conglomerate that has received huge government subsidies to produce ethanol from corn under the
RFS. One study claims that every dollar of profit from its biofuels costs taxpayers $30.
"The historic drought that devastated this year's corn crop has caused the availability of corn to plummet and prices to skyrocket," Naasz said. "Since corn is a vital part of Americas food supply, both as animal feed and a food ingredient, the cost to produce a wide range of foods will increase and consumers will see higher food bills. It's hard to fathom a set of circumstances that would justify a waiver of the RFS more than the situation we face today."
