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July 2, 2008
The Honorable George W. Bush Dear Mr. President: As a result of unforeseen and severe feedgrains inflation, its potential to harm America’s The suspension of the 54-cent per gallon duty on ethanol will benefit Americans by introducing market competition for a product that is mandated and by fostering downward pressure for ethanol and its feedstock. Domestic dairy, livestock and poultry farmers, food and beverage manufacturers, employees in these industries and American food consumers will benefit from this action. The introduction of market competition will alleviate a portion of the unnecessary feed and food price inflationary pressures that are adversely affecting our economic well-being and American consumers. This action will also benefit Americans by removing a tariff that many consumers are paying at the fuel pump for gasoline blended with ethanol. The U.S. Department of Agriculture’s recent crop report and preliminary flood damage The U.S. Constitution and statutes cited above confer authority on the Executive to exercise controls over international economic matters and established procedures governing the use of this power, including close consultation with Congress. Under these legal authorities, the Administration can immediately take this action to favorably influence the price of feedgrains, energy costs, food infrastructure, as well as assist the relief effort in the Midwest and ensure America’s food security. The dynamics of flooding, drought and the precariously sharp increase in the ethanol mandate have added an acute amount of demand for feedgrains. This national exigency is severe, unforeseen, and deepening for dairy, livestock and poultry producers and for Americans that are coping with the effects of food inflation. This spring, Federal Reserve Chairman Ben Bernanke told Congress it should eliminate the tariff on ethanol to ease food inflation. This type of action could also benefit the more than 15 million people employed in animal agriculture, food and beverage manufacturing, and food service segments of the U.S. economy. Therefore, we urge you to suspend the ethanol tariff and quota until such time that Congress has an opportunity to allow it to expire, discontinue its collection or at minimum until crop conditions significantly improve. Thank you for your attention to this request. Sincerely, American Bakers Association |
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