America loves a scapegoat.
They're simple. They're easy. They're convenient. Unfortunately, they are often not true. Blaming corn-based ethanol for escalating food prices is a perfect example of that.
A growing chorus of criticism has surrounded the fledgling biofuels industry ever since Congress passed a Renewable Fuels Standard as part of the 2007 Energy Bill that would greatly increase the amount of ethanol we blend into the nation's fuel supply.
Recently, the "food to fuel" debate turned into a demand from politicians in oil-producing states such as Texas that the Environmental Protection Agency partially or completely waive the new RFS before it even has a chance to improve our domestic energy policy.
Waiving the RFS would be a mistake, one which would do little to lower food prices while having exactly the opposite effect on gasoline prices. According to the Center for Agricultural Research and Development at Iowa State University, gas prices would be 30 to 40 cents higher per gallon if not for ethanol.
It is true that global food prices have risen an alarming 43 percent since last year, and domestic food inflation was 4.5 percent. But the best estimates of government experts say that increased production of ethanol accounted for less than 3 percent of those increases. Instead, factors such as worldwide economic growth, global weather problems and rising production costs - including high fuel and fertilizer expenses - along with the weak U.S. dollar are to blame for the biggest share of rising food costs.
But those facts haven't stopped the Grocery Manufacturers Association from launching an anti-ethanol public-relations campaign designed to get the government to roll back the RFS. In that, the GMA joins with anti-hunger advocates and environmentalists, who also oppose corn-based ethanol.
We would like to see ethanol producers embrace cellulosic sources of ethanol, which would ultimately be better for the environment and for western South Dakota's economy.
But until then, the fledgling biofuels industry should be given a chance to grow itself through the necessary government subsidies and incentives such as the RFS.
And it shouldn't be scapegoated as the cause of rising food prices. We urge the EPA to ignore calls to abandon the RFS and stick with a national mandate to produce 36 billion gallons of ethanol by 2022.
Posted in Opinion on Tuesday, May 13, 2008 11:00 pm
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