Skaggs testifies in front of State Natural Resources Subcommittee

TSCRA Daily News Update, July 15, 2008

Skaggs testifies in front of State Natural
Resources Subcommittee

Jason Skaggs, TSCRA's executive director of government affairs, testified Monday in front of the State Natural Resources Subcommitte on Agriculture, Rural Affairs and Coastal Resources at the state capitol in Austin. His testimony concerned the ethanol situation and the impact it has had on the cattle industry and the state's economy.

Citing rising corn prices and a decline in cattle values, Skaggs estimated the losses for the cattle industry to top $392 million in 2008. More corn diverted to ethanol has meant higher prices for feed and ultimately much lower prices offered to cow-calf producers.

Skaggs also reaffirmed TSCRA's support of Gov. Rick Perry's request to waive a portion of the renewable fuel standard (RFS) and encouraged legislation filed by Sen. Kay Bailey Hutchison and Congressman Joe Barton to freeze and/or repeal certain provisions of the Federal Energy Bills of 2005 and 2007.

TSCRA advocates actions such as leveling the playing field in the corn market to help reduce losses to Texas cattle producers and supports renewable fuels made only from non-grain based sources like cellulose, biomass, waste oils and processed animal fats.

"Putting food and fuel in competition with one another is a dangerous gamble for our nation's food supply," Skaggs told the subcommittee in his testimony. "We would like to see a lessened dependence on foreign oil, but if we are not careful in our approach, we will soon find ourselves trying to lesson our dependence on foreign food."