Kurt Bills, the Republican candidate for US Senate in Minnesota, called for the elimination of the Renewable Fuels Standard. Bills was debating his opponent Sen. Amy Klobuchar at the annual Farmfest in Morgan MN.
The Renewable Fuels Standard was put in place in 2005, requiring the quadrupling of the use of biofuels. Never a favorite of free market advocates, it has become particularly controversial as grain prices have skyrocketed, raising the cost of animal feed and leading to the dramatic culling of herds.
Meat prices are expected to rise considerably as the culling of the herds leads to tightened meat supplies once it is completed.
"I'll concede that the Renewable Fuels Standard helped jumpstart the biofuels industry, if their advocates concede that drought doesn't pay attention to mandates and subsidies. Mandates and subsidies are not the basis of a sustainable business model, and must be phased out," said Bills.
"Biofuels may be part of our energy future, but they have to prove themselves in the market without permanent government support. We should rapidly phase out the Renewable Fuels Standards and let the market work," said Bills.
Bills' opponent, Amy Klobuchar, is a strong supporter of the standards and expanding government support for biofuels. Bills believes that the government's intervention into the markets has undermined our food supply, and has harmed livestock producers and consumers.