Virginia Sens. Jim Webb and John Warner sent the following letter to Environmental Protection Agency in support of a temporary waiver to the federal ethanol mandate to help farmers cope with recent increases in commodity prices.

This waiver is intended to help Virginia’s agricultural community, including poultry and livestock producers, and consumers that have been hit hard by a dramatic rise in feed costs as a result of increased usage of corn-based ethanol.

The following is a copy of the joint letter:

"We write in support of efforts to waive portions of the Renewable Fuel Standard consistent with the Federal Clean Air Act and the Energy Independence and Security Act of 2007. While the rising costs of food and commodity prices are the result of many factors, it is clear that the RFS has played a role in the dramatic increase in commodity prices. We defer to EPA to determine the most suitable level of reduction in the RFS mandate.

"The goals of the RFS are meritorious and we believe in the need for greater energy independence. However, it appears that the RFS policy is having unintended consequences, which requires renewed emphasis on the need to diversify ethanol feedstocks that do not compete with global food supplies.

"We have heard from Virginia local communities and producers who are extremely concerned about the effect the federal RFS is having on their respective economies and businesses. In Virginia, agriculture is our largest and oldest economic sector. Some of the largest contributors to Virginia’s agriculture economy come from poultry and livestock producers, which have been hit especially hard by rising feed prices. In a recent study conducted by agricultural economist Dr. Thomas Elam, the increased cost of feed attributable to the federal RFS for the Virginia poultry sector is estimated at $270 million. When adding in the livestock sector, the total additional cost attributable to the RFS to Virginia animal agriculture raised for food is estimated at $412 million.

"As farmers shift into higher levels of corn production to meet the RFS mandate, additional pressures have been brought to bear on the prices of wheat, soybeans, rice and other food commodities. These market shifts coupled with rising energy prices and poor weather conditions have had a ripple effect on global food prices that is being felt by all. However, the rising costs of food have been felt especially by low-income individuals and persons living on fixed incomes.

"These costs are substantial. In light of these costs and the potential to do even greater harm to our economy, both nationally and in Virginia, it is our strong belief that a temporary waiver to the RFS is both needed and appropriate.

"We encourage the EPA to give all favorable consideration to proposals that would provide temporary relief to the RFS and allow time for commodity prices to stabilize.

Sincerely,

John Warner, United States Senate
Jim Webb, United States Senate