Georgia, New Mexico join call for end to U.S. ethanol rule

Two U.S. states that depend on the livestock industry are adding their voices to a string of states asking Washington to ease pressure on corn prices by suspending rules that send a large share of the crop to produce ethanol. Georgia, the center of U.S. poultry production, and New Mexico, with its large cattle industry, this week asked federal officials to suspend a program that encourages converting corn into ethanol fuel. Roughly 13 billion gallons of ethanol are due to be blended with gasoline this year under a federal renewable fuels mandate meant to bolster domestic energy sources. The rules can be waived under a formal appeal from a state to the U.S. Environmental Protection Agency. Livestock farmers complain that demand for ethanol wrongly diverts a large share of the feed corn they need and drives up prices already inflated by a long dry season. "New Mexico's agricultural economy is primarily composed of dairy and range livestock production," Governor Susana Martinez wrote in a letter to the EPA this week. "I urge you to consider granting an immediate waiver."...more