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ASSN OF EQUIPMENT MFGRS SPEAKS OUT IN DEFENSE OF RFS
Oct. 16, 2012
Association of Equipment Manufacturers (AEM) reports:
AEM has spoken out in defense of an important driver of agricultural equipment demand, urging the Environmental Protection Agency (EPA) to deny requests to waive mandates that require use of biofuels under the Renewable Fuel Standard (RFS).
The dry weather this season has reduced corn yields and caused prices to reach record highs. This in turn has reignited the falsely titled Food vs. Fuel debate. The re-energized opponents of biofuels recently launched their new campaign against the RFS, which ensures that transportation fuel sold in the United States contains a minimum volume of renewable fuel.
Several governors have filed waiver requests with the EPA to forgo the RFS mandates. Their requests claim economic hardships from higher corn prices due to the production of ethanol as the primary reason EPA should grant the waivers. With the expiration of the ethanol blenders' tax credit, the RFS is the only federal policy supporting the renewable fuels industry.
In defense of the RFS, AEM filed comments with the EPA urging the agency to deny the waiver requests as they would cripple the continued growth of the biofuels industry while doing little to lower the prices of corn and animal feeds. AEM also said the waiver petitioners failed to fully consider the importance of animal feed co-products from the production of ethanol, namely dried distillers grains, which have become widely used.
AEM believes a robust biofuels sector is an important driver of agricultural equipment demand. The expansion in production of next-generation fuels, which use non-foodstuff such as corn cobs, have the potential to create markets for whole new classes of equipment.
Read AEM's statement here
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