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Missouri is considering rolling back a mandate supporting ethanol production amid growing outrage over rising prices for food and livestock feed. It was less than four months ago that ethanol supporters were celebrating the implementation of a Missouri law requiring gasoline sold throughout the state contain 10 percent ethanol. The law, passed in 2006, took effect January 1.
But now, in the face of growing criticism of the nation's ethanol-friendly policies, Missouri may be among the first to back away from ethanol supports. Critics say federal subsidies and programs such as Missouri's, which encourage corn-based ethanol production, have reduced corn stocks available for food and livestock feed and contributed to skyrocketing prices that are hurting consumers. "There certainly are some questions on the ethanol issue that I believe we didn't delve into deep enough," said Neal St. Onge, a Republican Missouri state representative who chairs the house transportation committee.
St. Onge said the committee is studying a measure that would roll back the mandate and is still determining whether to push any action before the end of Missouri's legislative session next month. The moves in Missouri come as Texas Governor Rick Perry is asking the US Environmental Protection Agency for a 50 percent waiver of the mandate for grain-based ethanol production.

Copyright Reuters, 2008

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