A federal ethanol mandate has cost American farmers at least $57 billion dollars through increased corn prices, according to calculations by the National Chicken Council.
The Renewable Fuel Standard (RFS) requires refiners to blend a certain amount of ethanol into fuel and has caused corn prices to rise dramatically. Corn has cost the U.S. chicken industry $57 billion since 2005, according to calculations using U.S. Department of Agriculture data.
Chicken companies have struggled to pay these high costs. “During the RFS era, at least a dozen chicken companies have ceased operations – filing for bankruptcy, being acquired by another company, or closing their doors altogether, ” Tom Super, vice president of communications at The National Chicken Council, told The Daily Caller News Foundation.
Other industries that use large amounts of corn have also suffered, and ethanol production may have even caused food riots and shortages in developing nations.