The U.S. Agriculture Department has said it expects U.S. food prices to climb 5 percent this year, the largest annual increase since 1990, then rise by another 4.5 percent in 2009.====================================================================================================
WASHINGTON, Aug 7 (Reuters) - U.S. regulators on Thursday rejected a request to cut the amount of ethanol required in gasoline, saying there was no evidence that use of the corn-based fuel hurt the economy by driving up food costs.
The Renewable Fuel Standard still will require 9 billion gallons in renewable fuels to be blended into the nation's gasoline supply this year, and 11.1 billion gallons in 2009.
In April, Texas Governor Rick Perry asked the Environmental Protection Agency to cut the mandate by 50 percent. He argued that ethanol production was driving up the price of corn, making it more expensive for farmers to feed livestock.
The EPA said there was no evidence to support the claim by Texas that the mandate would "severely harm" the U.S. economy.
"This research found that the RFS mandate is not causing severe economic harm," EPA Administrator Stephen Johnson said. Johnson said the mandate was "strengthening our nation's energy security and supporting Americans' farming communities."...cont'd
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