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Tuesday, August 19, 2008
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Ag Groups Can't Agree on Ethanol Mandate

US - Despite what could be Nebraska's second largest corn crop ever, state crop and livestock producers were on opposite ends on the effectiveness of the federal ethanol mandate.

Testifying at a Senate Agricultural Committee hearing on Monday in Omaha, Michael Kelsey, Nebraska Cattlemen executive vice president, said his organization strongly supports Nebraska's ethanol industry.

"However, many believe that the only way to develop renewable fuels is to mandate their production and use," Kelsey told The Independent.

According to The Independent, Kelsey was critical of the Renewable Fuels Standard, which next year will require approximately 3.5 billion bushels of corn. That's nearly 30 percent of what is currently grown in the United States.

"Mandating production and usage has never been good over the long term for any industry," Kelsey said.

But Jim Jenkins, Nebraska Ethanol Board chairman, testified that Nebraska is the nation's second largest ethanol-producing state.

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