Press Conference to Support the Renewable Fuel Standard.

March 11, 2002

Last Friday, Senators rallied in support of the renewable fuel standard (RFS) in national energy legislation. The rally was a celebration of the agreement earlier last week to include the RFS in the Senate energy bill. The RFS could triple ethanol production over the next 10 years by requiring an increasing percentage of renewable fuels, such as ethanol and biodiesel, to be blended in automotive fuels.

Moderated by Senate Majority Leader Tom Daschle (D-SD), the press conference drew members from both sides of the aisle and was attended by U.S. Department of Energy Secretary Spencer Abraham. National Corn Growers Association President-Elect Fred Yoder noted:"If the truth were told, this program will provide greater marketing opportunities than the farm bill currently being debated."

American Farm Bureau President Bob Stallman stated: "The proposed renewable fuel standard, which requires the use of 5 billion gallons of renewable fuel by 2012, is a coup for American agriculture and greatly boosts American energy independence." He also pointed out that "without question, the economic benefits to our producers could be huge. Some studies show corn prices could jump 11 percent, while soybean prices could rise 12 percent from this expanded market."

Agriculture Secretary Ann Veneman also praised the agreement reached among agriculture and the oil and renewable fuels industries on a RFP: "This is an important agreement that is a good first step toward final passage of comprehensive energy legislation… By raising the demand for farm products, this proposal would boost corn prices, as well as prices for other crops such as soybeans, and raise income for farmers."