Legislation that would gradually phase out United States government support for corn-based ethanol over five years and encourage the commercial development of second generation biofuels has been introduced in the House of Representatives.
The bipartisan bill, H.R. 3187, 'The Affordable Food and Fuels for America Act', was introduced by Republicans Joseph Crowley Mary Bono Mack.
The Balanced Food and Fuel Coalition (BF&F), applauded the introduction and said the legislation "is absolutely critical to both producers and consumers of food by controlling volatile commodity markets and ensuring all users of feed grains compete on a level playing field."
The National Cattlemen's Beef Association said the legislation allows for a market-based approach for competing demands for corn.
NCBA outlined that Since January of 2008, cattle feeders have lost a record $US5.2 billion in equity due to high feed costs and economic factors which have negatively affected beef demand.
According to the United States Department of Agriculture Economic Research Service, in 2008, feed costs for livestock, poultry and dairy reached a record high of $US45.2 billion – an increase of more than $US7 billion over 2007 costs.
Yet farm gate cattle and calf receipts have essentially remained flat, at between $US49 and $US50.2 billion during the past five years.
"Soaring feed costs and government payments to the ethanol industry are hurting small businesses and family ranches. Cattle producers don’t ask for subsidies, just equal footing," according to a statement from Gary Voogt, NCBA president.
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