Texas governor wants exemption from biofuel mandate, to slow rising food and feed prices

Climbing food and feed prices have added to the debate over federal mandates for the increased production of grain-based renewable fuel. In Texas, Gov. Rick Perry wants a partial waiver from new renewable fuel standards, reports David Ivanovich of the Houston Chronicle.

Perry "asked federal regulators to relax rules requiring use of corn-based ethanol in the nation's fuel supply, arguing the mandate is driving up world food prices and harming the Texas economy," Ivanovich writes. "Perry sent a letter today to the U.S. Environmental Protection Agency, asking the federal government to waive 50 percent of the mandate for production of ethanol derived from grain."

Perry's letter said the policy was "well-intentioned" but was harming Texas families and livestock producers. Ethanol makers said such a waiver would not led to lower food or feed prices but would instead led to the reduction of fuel in the marketplace. "While this may benefit Texas oil companies, it will certainly hurt consumers in Texas and the rest of the country," the Renewable Fuels Association said. (Read more)

A news release from the governor's office said corn prices have climbed 138 percent in the last three years, while global food prices jumped 83 percent in the same period. According to the U.S. Department of Agriculture, 25 percent of the corn grown in United States was diverted to produce in ethanol in 2007, with 30 to 35 percent projected to be diverted in 2008 and more in the years after that. In Texas, family ranches make up the majority of cattle producers, with nearly 70 percent of the state's 149,000 cattle producers having less than 50 head of cattle, according to the USDA.