Posted on: October 10, 2013 in Corn, Gas Prices, Renewable Fuel Standard

Bob Dinneen submitted the following letter to the editor of the Chicago Tribune.

The Chicago Tribune editorial, “Crop Politics: Government subsidies promote corn over common sense,” gave me whiplash.

In July 2011, you cheered the prospect of a bumper corn crop as “good news for a hungry world.” You wrote “in years to come, more people will want more corn” and encouraged the agriculture sector and government to “prepare today for that increased demand.” Indeed, U.S. farmers took the market signal and today are in the midst of harvesting the largest corn crop in history. But rather than congratulating the American farmer for battling through adversity to produce a bin-busting crop, you—in an unbelievable twist—are now chastising the proactive market response it encouraged just two years ago. Apparently, you just can’t make up your mind.

Perhaps your flip flop is the result of misinformation you’ve received. For example, you’re wrong about what fuels today are subsidized. Investments in oil extraction and fracking receive generous subsidies. Ethanol is NOT subsidized. You’re confused about the impact of the RFS on corn prices. On Dec. 19, 2007, the day President Bush signed the Energy Independence and Security Act into law, corn prices closed at $4.34/bushel. Corn prices last week were $4.35/bushel. And you’re obviously unaware of what's happening with food prices. This year, USDA expects meat prices to increase just 1.5% over last year—slightly less than the overall food inflation rate, less than general inflation and far below historical food inflation rates. A recent UN report noted that food prices are driven by skyrocketing oil prices, not biofuels.

The RFS has been good for farmers and good for consumers. It has revitalized rural America, providing a value-added market for commodities and eliminated the need for federal crop subsidies, saving taxpayers money. It has displaced imported petroleum products and helped REDUCE the price of gasoline at the pump by as much as $1.00/gallon in 2012 and 2013 on average according to a recent report by Philip Verleger. It has also stimulated investment and innovation in renewable energy, allowing the U.S. to lead the world in biofuels commercialization.

I understand consistency is the hobgoblin of little minds. But in this case it would have served you well. If you’re going to flip flop like this in the future, hand out a neck brace with your paper.

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