The Governors of Arkansas and North Carolina, Mike Beebe and Beverly Perdue, have officially sent letters to the Environmental Protection Agency (EPA) asking for relief from the Renewable Fuel Standard (RFS) in order to free up corn that otherwise would be turned into ethanol and blended into gasoline. This is great news given last week’s announcement that the governors of Delaware (DE) and Maryland (MD) asked the EPA to waive the RFS in light of the devastating drought that has hit the Corn Belt. These petitions come on the heels of the August 10, 2012 crop report that indicates a corn harvest was destroyed by record high temperatures.
We anticipate that these three governor petitions are the first of a series of states that will be asking for relief from the RFS. It is our hope that this strategy will lead to the EPA rolling back the mandate for corn going into the gas tank this year. We continue to work diligently with our friends in the livestock and poultry community to educate the EPA on the level of harm that is occurring due to the current crop conditions. We will update you as the process unfolds in the coming weeks.