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Need for RFS Highlighted in NCGA Testimony to House Subcommittee (5-6-04)

In testimony today before the House Small Business Subcommittee on Rural Enterprise, Agriculture and Technology, National Corn Growers Association (NCGA) member Duane Adams urged lawmakers to expeditiously pass a national energy policy that includes a Renewable Fuels Standard (RFS).

Adams, who chairs NCGA’s Ethanol Committee, also addressed the subcommittee on the importance of the ethanol industry to rural development.

“No other energy source has doubled its production in the past three years,” he said. “There was virtually no ethanol used in California two years ago and now the ethanol industry supplies 8 percent of the gasoline supply in the state – a total of 900 million gallons per year. The contribution of this domestically produced renewable fuel is being felt at the pump across the country.”

The subcommittee hearing was held to gather information on the positive impact renewable fuels have on the nation’s economy and energy security. The subcommittee is investigating what can be done to increase domestic production of renewable energy sources. Adams and other witnesses said maximizing the usage of renewable fuels will help to decrease gasoline and oil prices, thus benefiting small business owners, farmers and American consumers.

“The true success of ethanol is best measured in the benefits to rural America,” the Minnesota farmer said. “The ethanol plant is increasingly in the hands of farmer-owned co-ops. These plants bring good jobs to small rural communities that struggle to keep young people. A 40-million-gallon (per year) plant will provide more than 40 full-time permanent jobs. They keep schools, hospitals and many businesses open.”

Adams told the panel farmers have become not only the producers of corn and ethanol, but marketers of energy. He said producers are getting more of their income from value-added sources and less from farm programs. Ethanol can claim to be the primary reason the federal farm program will save $2 billion this fiscal year, Adams added.

Adams ended his testimony with a simple and blunt conclusion: “We farmers are looking at you to quit bickering and do this nation’s business. Our country needs an energy policy and we expect you to deliver.”

The complete testimony can be found on the NCGA website at www.ncga.com.


 

Last reviewed May 6, 2004



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