TCFA supports efforts to research and develop alternative forms of energy. However, alternative energy sources are only viable if they can be produced without prolonged government incentives and usage mandates.
TCFA believes the free market based system is the best driver of competition and innovation in all industries. The U.S. ethanol industry has been supported by taxpayers for more than 30 years at a cost of over $30 billion. It is time for the federal government to eliminate the Renewable Fuels Standard (RFS), that distorts the market place and picks winners and losers.
Price trends for corn since the federal government began its big push for ethanol show a clear correlation: More corn being diverted for ethanol production has meant much higher prices for livestock feed, which has contributed significantly to high production costs and record losses for livestock producers. Largely as a result of this historic run-up in corn prices, the cattle feeding sector of the beef industry lost a record $7 billion between 2007 and 2010.
Left unchanged, federal ethanol policy will continue to have a major, negative impact on cattle feeders and other livestock producers. Thirty years of government support has provided for a mature corn ethanol industry that now needs to compete fairly in the marketplace and allow for the next generation of renewable fuels to grow.