Two new reports reinforce the findings of a recent analysis by University of Illinois economists. Analyses released by Iowa State University and Purdue University conclude that waiving the Renewable Fuel Standard would not result in meaningfully lower corn prices. According to the Purdue University analysis – the flexibility built into the RFS serves to reduce the corn price without need for a waiver. If the EPA did waive the RFS – the Purdue economists found corn prices might decrease further by approximately 5.6-percent in 2013. Iowa State’s analysis – which updates an earlier report – found that fully waiving the RFS would result in just a 7.4-percent reduction in corn price in the 2012-13 marketing year. The flexibility enabled by surplus RIN credits was a significant factor in both analyses.

Iowa State Professor Bruce Babcock says the desire by livestock groups to see additional flexibility on ethanol mandates may not result in as large a drop in feed costs as they hope. He says the flexibility built into the RFS allowing obligated parties to carry over blending credits from previous years significantly lowers the economic impacts of a short crop because it introduces flexibility into the mandate. The authors of the Purdue study made similar comments – stating that a partial waiver is not a stroke of the pen solution to record high corn prices. According to a Purdue University press release – corn prices pushed higher by the worst U.S. drought in half a century would not necessarily moderate if the federal government’s corn ethanol mandate were temporarily suspended.

Renewable Fuels Association President and CEO Bob Dinneen says the EPA will likely rely on the type of information contained in these studies when considering the recent waiver request from the governors of North Carolina and Arkansas. He says the analyses compellingly show that waiving the RFS is unnecessary and would be ineffective in meaningfully reducing corn prices. Dinneen also notes that an EPA analysis in response to a 2008 RFS waiver request found that a five-percent reduction in corn price – similar to impacts found in the Purdue and Iowa State studies – resulted in just a .28-percent change in food prices.

The recent burst of cool weather has helped the attendance at the Missouri State Fair this year.  So says Agriculture Building Supervisor Steve Allison.

Listen as we talk with Steve during our State Fair Coverage about what all is in that building on the fairgrounds this year.

At the Missouri Beef Showcase, those attending the fair can learn important information on how to cook beef and some recipes.

Brenda Black is volunteering at the Missouri Beef Showcase this year.  She is the president of the Missouri Cattlewomens Associaiton.

The Missouri Cattlewomens Association is also looking for new members.  Membership cost $10 and you don’t have to be a cattle producer to become a member.

Find more at http://mocattle.com/missouricattlewomen.aspx

USDA has now designated nearly 18-hundred counties as disaster areas. U.S. Ag Secretary Tom Vilsack designated another 172 counties in 15 states as primary natural disaster areas due to drought and heat Wednesday. Of the now 1,792 counties designated – 1,670 are due to drought. Secretary Vilsack also announced the availability of up to five-million dollars in grants to evaluate and demonstrate agricultural practices that help farmers and ranchers adapt to drought. USDA’s Natural Resources Conservation Service is accepting applications for Conservation Innovation Grants to help producers build additional resiliency into their production systems.

Also Wednesday – in response to a request from five National Organic Program certifying agents – USDA’s Agricultural Marketing Service announced USDA will grant a temporary variance from pasture practice standards for organic ruminant livestock producers in 16 states. This temporary variance only applies to the 2012 calendar year and only covers counties that the Secretary of Agriculture has declared as primary natural disaster areas in 2012. Additional restrictions are that the temporary variance only applies to non-irrigated pasture and producers must supply at least 15-percent of their dry matter intake – on average – from certified organic pasture.

Vilsack says USDA is committed to using existing authorities wherever possible to help the farmers, ranchers, small businesses and communities being impacted by the drought. In the past month – he notes USDA has streamlined the disaster designation process, reduced interest rates on emergency loans, and provided flexibility within our conservation programs to support struggling producers.