Source:  Tom Johnston, MEATINGPLACE.COM, 3/1/11

The American Meat Institute, National Meat Institute, National Chicken Council and National Turkey Federation were among dozens of agriculture groups to join in coalitions fighting subsidized ethanol production and “user fees” for mandatory federal inspection programs for meat, poultry and egg processors.

Today the groups sent a letter to Congress leaders urging them to to let the refundable Volumetric Ethanol Excise Tax Credit (VEETC) expire and to curb spending on infrastructure for conventional biofuels.

“In particular, Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline. At a time of spiraling deficits, we do not believe Congress should continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard,” the groups stated in the letter.

AMI, NMA, NCC and NTF also joined other ag groups on Monday urging Congress to opppose “user fees” included in the Obama administration’s proposal for the fiscal year 2012 USDA budget. The groups argued that as mandated inspections services aimed at protecting public health and safety, inspection should be paid for through appropriated funds.

“In reality, these fees represent a food safety tax on consumers and not just a fee on processors,” the groups wrote.  “The proposed tax will make the current equitable funding mechanism inherently regressive, since low and middle-income families spend a higher portion of their income on food than do wealthier Americans.  Furthermore, this proposal to transform government-funded food safety inspection provides less accountability for the government to manage program costs, results and efficiencies.”

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