Drought conditions continue to wither corn harvests throughout the Midwest, moving U.S. officials on Tuesday to lower 2012 ethanol production forecasts by more than 3%.

The Energy Information Administration said it reduced ethanol-production estimates to 870,000 barrels a day from 900,000 barrels a day, a reduction of 3.3%. The agency says it expects ethanol production to recover in the second half of 2013.

As corn prices increase, several U.S. lawmakers have urged the Environmental Protection Agency to ease a federal requirement for ethanol use in gasoline, known as the renewable-fuel standard.

In a letter to EPA Administrator Lisa Jackson on Tuesday, a group of bipartisan senators said the renewable-fuel standard creates competition for corn, raising prices and hurting cattle ranchers and food manufacturers. Livestock and poultry producers have called for a waiver of the renewable-fuel standard in light of the drought.

Relaxing the standard "will help to ease supply concerns and provide relief from high corn prices," the lawmakers said.

A similar letter was sent to Ms. Jackson last week by more than 150 House lawmakers.

Ethanol producers are rejecting calls for relaxing the renewable-fuel standard. In a statement last week, Growth Energy Chief Executive Tom Buis said it is "irresponsible to blame ethanol for a lack of rain." Mr. Buis said the market will adjust to changing conditions. "We have never run out of corn and this year will be no different," he said.

In addition to lowering 2012 forecasts, the EIA said ethanol production fell from 920,000 barrels a day for the week ended June 8 to 809,000 barrels for the week ended July 27.

Write to Tennille Tracy at tennille.tracy@dowjones.com.

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August 07, 2012 17:49 ET (21:49 GMT)