Colorado Corn
Cultivating Opportunities
As E85 Fuel Prices Jump Across America,
Coalition for E85 Fights Back
WASHINGTON, D.C. – On January 1st, Congress allowed the ethanol tax credit to expire, but the Coalition for E85 (www.CoalitionForE85.org) is renewing its efforts to have American-made 85-percent ethanol recognized as an alternative fuel along with natural gas, propane, and hydrogen alternatives.
Critics of farm policy like to reference high commodity prices when making the case for another raid on the farm budget—which has already sustained up to $15 billion in cuts in the past six years. But what good are high commodity prices, if the input costs are rising even higher?
Fuel prices are closely linked to food prices through three different channels, according to Christopher Barrett, professor of applied economics and management and international agriculture at Cornell University’s Dyson School.
Barrett explained, “Higher fuel prices are a major driver behind increased food prices, hunger and poverty around the world today.”
“First, fuel is an important input into agricultural production in modern commercial agriculture, through fuel for machinery and fertilizers,” he said.
Second, fuel is a major cost of moving food from surplus area
By Bart Schott
Once again, ethanol opponents are using food price scares to combat the ethanol industry, forgetting that this well-worn argument has very little basis in reality. Two recent news items have brought them out of the woodwork.
On October 8, the U.S. Department of Agriculture reduced the estimated 2010 corn crop by just under 500 million bushels. And on October 13, the U.S.
During these economically stressful times, rising food prices can lead to questions about how much profit a farmer actually makes. With 98.5 percent of the population not working in agriculture, it becomes easy to make assumptions based upon only the prices on the shelves. But, in all actuality, farmers must spend a large percentage of the price they will get after harvest on the inputs necessary to grow the crops that provide food, feed and fuel.
Three major farmer and ethanol groups today called on Environmental Protection Agency Administrator Lisa Jackson to formally approve the use of E12 (12% ethanol) in the nation’s gasoline supply.
By Darrin Ihnen
President, National Corn Growers Association
The National Corn Growers Association was singled out for praise last month by a business writer for Slate.com, a prominent online journal, for not taking advantage of the oil disaster in the Gulf of Mexico to promote ethanol. While we have said a few things about it, we have remained relatively quiet on the matter while a number of our friends have been more vocal.