Agriculture organizations support bill to end California ethanol subsidies

A California Assembly bill, AB 523, has been introduced that would end state ethanol subsidies; organizations such as the California Poultry Federation and Western United Dairymen have given their support.

Twenty-two agricultural and business organizations have said they support the end of California subsidies for the production of corn-based ethanol.
A California Assembly bill, AB 523, has been introduced that would end the subsidies; organizations such as the California Poultry Federation and Western United Dairymen have given their support.
In a statement to the assembly, the agricultural groups asked legislators to consider the following:

• Increased demand and competition for corn resulting from growth in corn-based ethanol production has driven up the price of corn to over $7 per bushel, more than doubling in price from just last year;
• Higher corn prices directly impact California families through higher food prices. Corn is a basic ingredient in thousands of food items and rising prices affects families of all income levels, particularly low income households;
• Rapidly rising corn prices are having a highly detrimental effect on undeveloped and developing countries and exacerbating world hunger; and
• California poultry, dairy and cattle producers, heavily impacted by the cost of feed, are being decimated by the run-up in corn prices. These businesses have seen multi-million dollar increases in weekly feed costs over the previous year and costs are continuing to rise. Collectively, these industries provide more than 500,000 California jobs and face financial ruin.