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IDFA Joins Coalition to Oppose Extending Ethanol Subsidies

Oct 22, 2010

IDFA united with 16 diverse business organizations this week to urge congressional leaders to reject a proposal that would expand federal subsidies for corn ethanol. In a letter to leaders of both chambers, the groups argued that the proposal would divert more than half of the U.S. corn supply from food and feed to fuel, elevating consumer food prices and costing taxpayers $6 billion in 2011 alone.

The current ethanol mandate, known as the Renewable Fuel Standard, requires gasoline to be blended with low levels of ethanol as part of the national effort to extend the U.S. fuel supply and improve air quality. The new proposal, put forth by several corn ethanol organizations, aims to extend existing subsidies, increasing the federal mandate for corn ethanol from 15 to 21 billion gallons, and create new ones.

"We urge the administration and Congress to reject this fiscally irresponsible proposal and to instead support fiscally responsible policies which promote sustainable, fungible fuels that do not pit our energy security needs against the needs of consumers and the environment," the letter states.

In addition to IDFA, the groups signing the letter are:

  • American Bakers Association
  • American Frozen Food Institute
  • American Meat Institute
  • Earth Day Network
  • Environmental Working Group
  • Friends Committee on National Legislation
  • Friends of the Earth
  • Grocery Manufacturers Association
  • National Chicken Council
  • National Council of Chain Restaurants
  • National Meat Association
  • National Turkey Federation
  • Natural Resources Defense Council
  • Public Citizen
  • Snack Food Association
  • Taxpayers for Common Sense

Read the letter here.

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