Don’t be fooled by false ethanol information
Published 8:56 am Thursday, August 28, 2008
Ed Lazear, chairman of the Council of Economic Advisors, estimated that global food prices have increased 43 percent in the last year and U.S. food inflation was 4.5 percent. He stated that increased ethanol production accounted for 3 percent of the global 43 percent and a quarter of 1 percent of the U.S. 4.5 percent increase. This data proves that ethanol accounts for less than 3 percent of the global increase.
There are many factors behind the rise of food costs, such as the increased demand of China, India and other nations that want their people to eat better. Weather conditions in Australia, China and Eastern Europe, as well as export restrictions. But the biggest culprit that no one wants to blame is the cost of oil and transportation fuels. Oil drives everything in this world, especially in the United States. The U.S. is only 9 percent of the world population, but we consume half of the gasoline annually!
Joseph Glauber, chief economist at the United States Department of Agriculture recently testified before Congress that rising prices of corn and soybeans have little effect on high prices for wheat, rice, or any other food commodities. The weak U.S. dollar and high priced oil are to blame.
Why then, are certain groups attacking ethanol and corn? This is the part that mystifies me. At a time when a barrel of crude oil is $128 and gasoline approaches $4 per gallon they blame ethanol!
Who would believe these lies, not only are we being held hostage by the oil industry they are spending millions bashing ethanol with untruths. What I will never understand is the people who believe them.
According to Iowa State, ethanol has lowered gasoline by 30 to 40 cents per gallon. Gasoline would be 15 percent higher without ethanol.
The U.S. renewable fuels industry has made tremendous strides to produce a home-grown alternative energy that is improving our environment reducing our dependence on foreign oil and increasing our national security. America’s farmers are continuing to provide an ample supply of safe, affordable food for the U.S. and global markets.
This country needs more alternative sources of energy, including ethanol and biodiesel as fast as we can possibly build them. Anyone who thinks otherwise is simply misinformed.
Gary Pestorious
Albert Lea