New Fuel Standard Sought by Coalition

February 22, 2002

National Corn Growers Association (NCGA) Ethanol Marketing Chairman and York, NE, corn grower Boyd Smith said a coalition of agriculture, ethanol and oil groups has come together to agree on a renewable fuel standard (RFS).

"This is a watershed time in NCGA history," he said. "We have come to an agreement with several ag and oil groups on the principle of including an RFS in the energy bill. This is a great moment for ethanol and corn growers."

The coalition has agreed to support a floor of five billion gallons of ethanol over the next ten years. The results will be stronger corn prices and increases in farm income from a tripling of corn grinding, says NCGA.

NCGA Director of Energy Analysis John McClelland, said while corn growers should be encouraged, he warned against counting bushels before they were harvested. "This is a ground-breaking event for such diverse group to get together to discuss RFS," he said, "but it's important to recognize no final agreement has been reached. We have a long way to go before we realize our goal of an RFS that triples corn grind as part of a national energy plan. Growers need to know that, while progress has been made, this isn't a done deal."

McClelland said there is a substantial number of details that need to be agreed upon before the energy legislation goes to the floor. "We have several real issues that need to be worked out," he said. "The RFS needs to be incorporated in the larger energy bill within the next two-and-a-half weeks. We're hoping we can see action on this issue as early as next week."