WASHINTON, D.C. – Rep. Jeff Denham today issued the following statement in response to a Central Valley business, Fulton Valley Farms, announcing that it will close its doors due to the high price of feed. The high cost of feed is a direct result of the ethanol mandates and subsidies, and has forced many job creators in California to shut down.
“Fulton Valley Farms will be forced to close its doors as a result of the high price of feed for its chickens and 185 Californians will lose their jobs as a result. The use of corn grown for ethanol to meet a government mandated ethanol requirement has increased cost, and as a result, consumers are paying higher prices for food at the grocery store and family farms are being forced to shut down.” said Congressman Jeff Denham.
The government has created an artificial market for ethanol by creating a Renewable Fuel Standards (RFS) mandate that requires 36 billion gallons of renewable fuels. It is projected that 40 percent of the U.S. corn crop will be used for ethanol production this year. This means that an ever increasing amount of corn, which is used for feed for livestock, is being diverted into fuel.
"Ethanol subsidies are raising the cost of feed, stifling job creation, harming business growth and hurting America’s economic competitiveness," added Congressman Denham.
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Denham co-sponsored legislation, H.R. 3098, introduced by Rep. Goodlatte on Wednesday which eliminates the RFS and makes ethanol compete in a free market.
Farmers in California cannot afford to pay unnecessarily high prices for feed, and with double digit unemployment in his area, Rep. Denham knows families cannot afford to pay more for groceries, according to a news release from Denham's office.
"The California Poultry Federation supports Congressman Denham's efforts to eliminate the Renewable Fuel mandates which artificially drive up the cost of feed on farmers," says Bill Mattos, president. "We also join the Congressman in his support to end corn ethanol subsidies and the tariff that are both set to expire at the end of the year."
Fulton Valley Farms was established in 1925 as the main processor for Central Coast Farms. Fulton Valley Farms processes their product in the heart of California near the farms where the chickens are raised.