AGRIBUSINESS: Midwest Governors Send Letter Concerning RFS

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A group of Midwestern governors, including Iowa governor Terry Branstad, have written the president, EPA, and USDA in support of the Renewable Fuel Standard.

The six governors say ethanol diversifies the American energy portfolio and supports economic development in rural communities. Citing data from Iowa State University, the governors argue average corn prices could drop $0.19 per bushel, and fall under the average cost of production.

EPA's proposed reduction to the RFS would cut total renewable production by three billion gallons: 16-percent. For corn-based ethanol, that's a reduction of roughly 1.4 billion gallons.

Over 600 comments have been left on voicing both concern and support for the EPA proposal. The comment period ends January 28.