Client News

Highlands Today: Letter: Fuel Standards

Tuesday, September 03, 2013

By Jim Wood

As the owner of Palmetto Creek Farms, I am extremely concerned about the impact of this country’s Renewable Fuel Standard on my business. Over the past three years, my farm has faced hardship and struggled to break even in the wake of rising grain and fuel prices.

There are several aspects of the RFS mandate that put my business at risk. The corn I use to feed my livestock each day is becoming increasingly expensive as more than 40 percent of U.S. corn is now being used to produce ethanol. Farmers and refiners are now competing for this resource and my small farm can scarcely afford to pay the high prices caused by decreased supply and increased demand.

The rising cost of corn is making gasoline more expensive as well. The fuel-operated equipment and vehicles required for heavy farm work make it more expensive to run daily operations. To make a bad situation worse, this biofuel is less fuel efficient and ethanol content beyond 10 percent (E10) could damage the fuel pumps and engines in my costly equipment.

The RFS poses a great threat to Palmetto Creek Farms. If Congress does not find a way fix this policy, it will continue to hurt small farms like mine and our ability to support our families. We need a common sense solution that will reform America’s renewable energy policy.


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