The Environmental Protection Agency has denied requests from several governors to waive production requirements for corn-based ethanol.
A renewable fuels law requires that 13.2 billion gallons of ethanol be produced by this year and 15 billion gallons be produced by 2015. That’s good for corn farmers, but it’s angered poultry, hog and cattle farmers. They say they've seen big jumps in corn-based feed costs as corn is diverted to make ethanol vehicle fuel.
States requesting the waiver say reduced corn production due to this year’s drought has made the problem even worse.