A National Corn Growers Association (NCGA) study examined the implications of enacting the renewable fuels standard (RFS) currently in congressional conference committee. The standard would increase ethanol use from nearly 2 billion gallons in 2002 to 5 billion gallons in 2012.

β€œAn RFS would considerably raise farm income as well as boost economies in rural America,” says Tim Hume, NCGA president. β€œIn turn, the U.S. government could reduce spending on agriculture programs and save taxpayers nearly 6% in monetary assistance for direct government payments to farmers.”

According to the study, increased demand for renewable fuels will result in total savings of $5.9 billion from lower direct government payments to farmers between 2003 and 2012. Further, a boost in demand for renewable fuels would increase net farm cash income by nearly $51 billion by 2012 over baseline levels.