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Texas Governor Fights U.S. Ethanol Rule That Raises Food Costs

By Alan Bjerga and Jim Efstathiou Jr.

July 21 (Bloomberg) — Rising U.S. gasoline prices and the growing world food crisis will clash this week when the Bush administration decides whether to relax rules requiring greater use of ethanol in auto fuels.

Texas Governor Rick Perry, backed by at least 26 senators and 51 representatives, is seeking to halve a requirement that the U.S. produce 9 billion gallons of ethanol this year. The Environmental Protection Agency must rule by July 24 on their request for a waiver of the rule [which is] favored by oil and food retailers and opposed by farm groups and environmentalists.

But wait… Governor Goodhair isn’t being entirely a friend to environmentalists here.

Texas, the largest beef-producing state, and its supporters in Congress, including the Republican party’s presidential candidate, Senator John McCain of Arizona, say the mandate strains corn supplies and raises costs for human and animal food. A 1-cent change in the price of a bushel of corn would cost the state’s livestock industry $6.04 million, Perry said in an April 25 letter to EPA Administrator Stephen Johnson.

“It is vitally important that the federal government address skyrocketing fuel prices, but the solution should be through increased production and more non-grain alternative fuel sources,” Perry said. “Not through policies that artificially drive up food prices and negatively impact Texas’s otherwise strong economy.”

Forget about the starving children. We must protect our friends in the factory farming industry!

One more reason to eat grass-fed beef or biscuit’s favorite, buffalo.