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03-03-2013 03:06 PM
I got some papers from the ethanol rep from RSCC-- promoting a signature.
I think it has to do with product going to europe and they are asking the producers to sign up for this organization.
Is this something that is going to be mandatory? Are you familiar with it??
03-03-2013 04:14 PM
I am not familiar with RSCC.......but from what you have said, you are likely being asked to sign off on a land use policy statement so the plant's ethanol can be exported to the EU......am I close??
03-03-2013 08:48 PM
yes that is about it. Left the paper work in the office. But the signature page make it sound like we are joining an organization that promotes good farming practices. Except for the final sentence that says by signing the producer is agreeing to allow RSCC auditors, or their appointed representatives to verify on location that the crops are produced according to RSCC's rules.
We searched their website and saw there were actually 35 pages of recommended rules. Haven't had much time to read through it.
Was promoted to us as "most of our guys are signing it" -------------- but he couldn't answer many questions.
03-03-2013 09:21 PM
First thing our guys said. "I suppose this international organization will ask the US Government to stand in as the auditor on their behalf."
Our decision not to sign was made fairly early and we will read the 35 pages of PC crop production details at our leasure.
But the way it was presented------------ A lot of papers will be signed as "a good thing to agree to"
We are lucky enough to have lots of marketing choices. Could be an problem in other areas.
Maybe europe needs to buy their ethanol in Brazil and get those farmers to verify they haven't broken out native grass or used unsustainable farming practices.
03-04-2013 06:51 AM
Ray is correct, to be an exporter to the EU with ethanol, you must prove your producers aren't destroying rainforests or employing child labor. There is a private organization that checks a very small percentage of the signatures to verify them. More of a drive by issue. Nothing with the US gov't. It is unlikely your ethanol plant will export any ethanol to the EU soon, as they have imposed a stiff import duty on ethanol from the US, making exporting to them unlikeliy. Another roadblock to free trade with the EU. However Brazil will increase its ethanol in its gas back to 25% in May.
03-04-2013 07:12 AM
The Import duties where imposed at the end of last year, Dec 2012. The RFA has filed a protest and a hearing will be held in front of the WTO, sometime this year. The duties come to about 90 cents per gallon, landed.