Posted on: August 01, 2012 in Corn prices, Ethanol, Renewable Fuel Standard

August 1, 2012

To the Editor:

In their July 30^th op-ed entitled “Corn For Food, Not Fuel”, Professor Colin Carter and Dr. Henry Miller earn an Olympic gold medal for misinformation.  First, ethanol is NOT more expensive than gasoline; several studies have independently concluded ethanol reduces consumer gasoline costs between $0.84 and $1.09 per gallon.  Second, waiving the Renewable Fuels Standard (RFS) will NOT significantly lower corn prices.

A recent analysis by Professor Bruce Babcock of Iowa State University found that because of the flexibility built into the RFS, waiving it would only reduce corn prices by 4-5%, or about 28 cents a bushel.  This meager impact must be balanced with its impact on gas prices.  As farmers only get 12 cents of every food dollar, the impact of transportation, packaging and energy has a far greater impact on food prices.

Ethanol can’t be blamed for the drought.  It can continue to help consumers.

Sincerely,

Bob Dinneen
President and CEO
Renewable Fuels Association

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