National Milk Producers Federation (NMPF), along with American Meat Institute, the National Cattlemen’s Beef Association, the National Chicken Council, the National Pork Producers Council and the National Turkey Federation have asked the USDA to form a working group to study the impact of increased ethanol use on milk and meat producers.
Because of concerns about the economic health of dairy farmers, the NMPF is asking the U.S. Department of Agriculture to investigate the overall implications of the rising production of biofuels, such as ethanol, on food production in the United States.
In yesterday’s State of the Union address, President George W. Bush called for even greater development and use of corn-based ethanol. The U.S.’s ethanol production is expected to reach 7.5 billion gallons this year, and next year, ethanol could use nearly half of the nation’s annual corn production.
In the letter, NMPF, along with five other organizations representing the livestock sector, ask Secretary Mike Johanns to assemble a working group within the USDA’s Chief Economist’s office to study the emerging biofuels economy and its full implications for milk and meat producers, as well as consumers of those products. The groups share concerns that producers may face challenges in sustaining their operations along side a robust and growing ethanol economy.