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And with no end in sight for the -- which is already causing Havoc for our corn supply should the government -- the federal requirement.
For the amount of ethanol in gasoline.
Since about 40% of our depleted corn supply is going to making ethanol let's ask.
Kristina -- executive director of legal affairs for the National Cattlemen's Beef Association and Jeff Cooper.
The vice president research and analysis at the renewable fuel association Jeff -- gonna start with you.
-- -- Kinda get rid of this look prices are going up all over the country if you've -- -- the grocery store lately you're seeing it your feeling it.
People in some places are hungry why keep putting corn in ethanol and ethanol in our gas.
Well the fact of the matter is waiving the renewable fuels program today would would really have very negligible impacts on corn prices.
-- we certainly wouldn't see the types of of reductions in corn price that the livestock groups are pushing for.
At the same time if we did substantially reduce our production and use of ethanol we would see gas prices.
Move higher and and certainly.
We're already seeing gas prices increasing in the -- Larry weeks in and that's.
This would what do you say about this will gas prices go up then well corn prices barely move at all we get rid of the ethanol requirement.
Well even -- car prices did change marginally at this point our producers aren't such dire constraint.
That any marginal the next -- it would be a significant benefit our industry we've got 70% of Americans cattle country.
Under -- severe drought and when you have roughly 40% of the corn crop being mandated to go to one user that one user corn over another.
That government policy needs to be weighed and needs to be reformed.
-- the federal government on the verge of approving a grain mainly -- livestock feed to make -- cleaner version of ethanol but the drought happening now shouldn't -- government.
Cease and desist.
No I don't think so and lectures on something that short outset going ahead when we hear this this we -- this 40% number repeated all the time.
The fact of the matter is 13 of the -- were using for ethanol comes back to livestock market as as animal feed.
You know -- using the starch that's in that corn kernel.
The protein and fiber the fat and that's about a third of the -- comes right back -- animal feed market.
And miss much members are are the primary beneficiary of that this -- and monasteries to cattle.
What do you say when it easily.
Right our producers that do you have access to these by products -- -- -- grains do eventually feeding them.
But we hire and under situations right now -- ethanol plants are shutting down idling in the east.
And you also have to keep that money want we want what why would you -- -- -- -- Rivera unimpeded minus seven point six million metric tons exported just last year.
So all or simply asking for is let's compete head to head for a bushel acquired EPA has the authority to waive the mandate let's -- the mandate and let us compete on -- level campaign.
What about that I mean you know you guys -- -- -- listen governments say it is can the government has picked a winner and that's.
And it's here and -- -- I disagree I disagree you know we hear about level playing field this industry ethanol industry has been fighting for a level playing field for thirty years.
A level playing field with the oil industry.
You know they control what fuels -- the consumer can get the pomp and so the Arafat's renewable fuel standard is the only means we have.
Of ensuring that consumers have access.
To domestic renewable fuel when they pull up to the pop.
Our you know without the renewable fuel standard refiners are gonna move away from gas we are -- move away from ethanol in the long.
Term -- I wanna ask you both this question because this is what I'm really concerned about I'm concerned about food prices at the grocery store year over year chicken up 11%.
Because up ten -- is up 7% this is not good.
Not good would help to get rid of this ethanol requirement Jeff I'll let you start -- -- -- last word.
Nodding -- -- several studies in the last few weeks that look at what would the impact on corn prices being in fact one from Purdue University came out today.
They said waiting to program would would result in a 5% reduction in corn -- when you work that through to the retail level.
I mean we're talking about you know 3% food inflation for 2012.
That compares to a ten year average of two point 9% sore right in line with historical norms next year when you expected impacts -- the -- to kinda worked through the retail level.
You know it's projected three and a half percent food inflation RA so -- -- the drought is.
I think them absolutely we want this labor and where the fortunate and grateful for any states that -- -- on the petitions.
To EPA in any time that you're gonna increase and her hospitalized animal side there will be a trickle down effect that at some point -- -- Will impact the retailers -- restaurants as well as consumers.
Sell or simply asking for the EPA administrator to use the authority that she has and grants the livestock industries.
This petition -- -- -- this labor.
All right Christine and Jeff thanks for coming on tonight guys are good sports for talking about this and explaining your points of -- appreciate your time.
Thank -- thanks.