RFA says crop yield uncertainty should kill proposed cap on corn ethanol

In Washington,  Reps. Bob Goodlatte (R-VA) and Jim Costa (D-CA) are pushing legislation that would require the EPA to waive a portion of the annual Renewable Fuel Standard (RFS) when the corn stocks-to-use ratio falls below 10 percent.

The RFA’s Geoff Cooper comments: “A primary concern is the fact that a decision with annual implications would be made based on a highly volatile and imprecise ratio that can change dramatically from month as supply-demand conditions change. Further, USDA has a history of underestimating new crop ending stocks with early estimates. USDA’s first estimate of stocks-to-use has been significantly lower than final estimate in each of last three complete crop years (2007/08-2009/10).”