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ASA Weighs in on House White Paper on Agricultural Impacts of RFS

first_imgThe House Energy and Commerce Committee issued the latest in a series of white papers examining the impacts of the Renewable Fuels Standard (RFS). The latest white paper, issued April 19, outlines and seeks comment on the impact of the RFS on the agricultural sector.Following the release of the white paper on agricultural sector impacts, ASA provided extensive comments highlighting the importance of the RFS to the soybean and biodiesel industries and reinforcing the fact that the RFS does not drive higher commodity or food prices.”Soybean farmers have played a major role in the development of the U.S. biodiesel industry and biodiesel has provided a significant market opportunity for U.S. soybean producers,” wrote ASA in its comments. “However, first and foremost, policymakers must understand that markets and prices for soybeans are driven by demand for soy meal as a protein feed source for livestock. The portion of the soybean used in biodiesel production is the oil, not the meal.””Additionally, in considering the use of soybean oil for biodiesel production, it must be understood that demand for U.S. soybean oil for food use began to decline significantly following the U.S. Food and Drug Administration’s (FDA) action in 2003 to require food manufacturers to include trans fats on nutrition labels beginning in 2006,” added ASA. “The increase in the use of soybean oil for the biodiesel market has essentially taken up the reduced demand for soybean oil in the food sector associated with trans fat labeling as the food industry shifted away from the use of partially hydrogentated soybean oil to various oil blends and the increased use of palm oil.For a full transcript of ASA’s comments, please click here, and for a copy of the committee’s whitepaper, please click here. ASA encourages all members to utilize the comments and urge their Members of Congress to support the RFS and support biodiesel.last_img

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