May 18, 2012

Representatives weigh in on thoughts concerning farm bill policy in hearing Wednesday

The House farm bill process is under way again this week, with House Agriculture Committee subcommittees continuing a series of hearings on key farm policy issues ahead of a mark-up. As members of the House Ag Committee craft the commodity title of the next farm bill, Representatives on Wednesday weighed in on their thoughts as they began a hearing discussing farm policy and crop insurance programs.

Ranking Member Collin Peterson of Minnesota warned members about repeating mistakes of the past.

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Southerner growers and Congressmen have raised objections to the Senate Ag Committee’s farm bill proposal, saying it doesn’t provide them with an adequate safety net. Peterson says he recognizes the needs of rice, peanut and cotton producers.

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House Ag Chairman Frank Lucas has repeatedly said he’s setting his sights on a farm bill that treats all regions and all producers equally.

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But Peterson doesn’t share his optimism.

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House Ag subcommittee’s are holding hearings Thursday and Friday as well to discuss Farm Bill topics including commodity programs, crop insurance and energy and forestry programs.

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DOE & RFA challenge a new report from oil and auto industry

New data presented Wednesday by the Auto Alliance and Global Automakers shows results from a two-year study on engine durability that indicate E-15 can ruin an engine. The two groups call on a government study resulting in the approval of the use of a blend of 15 percent ethanol and 85 percent gasoline premature because testing was not finished. Groups representing small-engine manufacturers and power-equipment makers have said alcohol-blend fuels are bad for the engines in boats, chain saws, lawn mowers, generators and the like.

The Department of Energy and the Renewable Fuels Association say the report is fundamentally flawed. Specifically, the U.S. Department of Transportation says – we believe the choice of test engines, test cycle, limited fuel selection, and failure criteria of the CRC program resulted in unreliable and incomplete data, which severely limits the utility of the study.

Speaking to the New York Times, a Department of Energy spokesman “said that his agency had tested 86 vehicles on test tracks and dynamometers for a total of more than six million miles. ‘A subset of those engines tested in the D.O.E. study were torn down and inspected with no discernible difference in engine wear between test fuels,’ he said.”

Bob Dinneen President and CEO of the Renewable Fuels Association, says – accepting the status quo in a fuel market monopolized by petroleum as the best this nation can do is unacceptable. Dinneen adds, funding research using questionable testing protocols and illegal fuels make the test – meaningless and only serve to further muddy the waters and shun the overwhelming desire of 75 percent of Americans for greater choice at the pump.

Source: Renewable Fuels Association

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Study finds ethanol reduces gas prices

America’s use of ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2001, according to updated research conducted by economists at the University of Wisconsin and Iowa State University. In research sponsored by the Renewable Fuels Association, the 2011 results show a $0.20 per gallon greater price reduction than the $0.89 per gallon impact in 2010.

Dermot Hayes of Iowa State says the study also found gasoline prices have been reduced by an average of $0.29 per gallon nationally, or about 17 percent, from 2000 to 2011 thanks to the use of ethanol.

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According to the research, the gasoline price reduction in the Midwest was even greater, $0.45 per gallon. Bob Dinneen, President and CEO of the Renewable Fuels Association, says the study clearly underscores that the current pain at the pump would be far worse without ethanol. And he says corn producers have stepped up to the plate to meet growing demand.

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Based on government data, U.S. households consumed an average of 1,124 gallons of gasoline in 2001. The study says that means ethanol reduced the average American household’s spending on gasoline by more than $1,200.

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