Vilsack: Ethanol Would Suffer Under Waived U.S. Mandate

Wisconsin Ag Connection
USAgNet - 08/17/2012

America's agriculture secretary says investment in U.S. ethanol production, which along with a drought-plagued crop is being blamed for near-record corn costs, may decline should federal use requirements for the biofuel be reduced. That's what Tom Vilsack said in Iowa State Fair this week after learning that 25 U.S. senators and 156 House members have signed letters asking the Environmental Protection Agency to suspend or lower mandates on how much ethanol the country must use this year and next.

"My concern is that we send a signal to investors of perhaps, less confidence in the industry," Vilsack. "We need to see whether the market is responding with lower demand in the face of higher prices, before making a decision to relax use requirements."

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