Ethanol Not Cause of Rising Food Prices

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By Stephanie Dreyer Senior public affairs associate
Growth Energy, Washington, D.C., 20002

Washington DC October 21, 2011; The U.S. ethanol industry is a cutting-edge industry that continues to get cleaner and more energy efficient every day. But there are many who don’t know the facts and still accept a decades-old image and misleading rumors as facts.

First, there are countless studies that show ethanol’s use of grain has, at best, a minimal impact on commodity prices and that a variety of other factors — including noncommercial speculation and the price of oil — have a much more significant impact on prices.

What is continually ignored in the “food versus fuel” debate is that roughly one third of every bushel of corn used in ethanol production returns as animal feed in the form of distillers grains, which have a higher protein, fat and fiber concentration than corn at 80 percent of the cost.

Second, dismantling or weakening the Renewable Fuel Standard (RFS) will not lower food prices. In fact, numerous studies have concluded the RFS is a minor contributor to corn prices and removing the mandate would only risk American jobs, raise gas prices and put OPEC further in control of our economy.

Instead of changing federal energy policies designed to make our country stronger, Congress should be focused on embracing a wide variety of renewable technologies, including proven technologies such as existing ethanol production.

By expanding the market for the current generation of ethanol, we can accelerate private capital investment in next generation and advanced biofuels — and expand America’s ability to become truly energy independent.