LINCOLN (AP)—An official who represents corn growers across the country said last Wednesday he is confident that a push in Washington to scale back ethanol production amid higher food prices will fall flat.
"I think there are enough cooler heads that understand what's going on," Rick Tolman, chief executive of the National Corn Growers Assn., told reporters. "I don't think we'll get a serious effort to roll it back."
Concerns that corn-based ethanol contributes to higher food prices by putting more corn into gas tanks instead of grocery stores is helping drive public and political opposition to the alternative, government-subsidized fuel.
Texas Gov. Rick Perry and 26 U.S. senators have asked the Environmental Protection Agency to cut this year's requirement for 9 billion gallons of corn ethanol in half. They also suggest the EPA waive or restructure rules that require a fivefold increase in ethanol production over the next 15 years.
Tolman said many of those senators come from states that produce oil and raise lots of livestock, which eat corn.
Among the senators calling for a slowdown is the GOP's presumptive presidential candidate, John McCain of Arizona, who said recently that "this subsidized (ethanol) program—paid for by taxpayer dollars —has contributed to pain at the cash register, at the dining room table and a devastating food crisis throughout the world."
The recent spurt in opposition to corn-based ethanol has coincided with rising food and fuel costs, leading to what Tolman described as an emotional, knee-jerk reaction against ethanol that he said isn't supported by facts.
He sought last Wednesday to put the blame on high oil prices and oil companies that he said could single-handedly buy the entire corn industry with the record profits they have been reaping.
"The facts are on our side," Tolman said. "Ethanol is not the majority increase in food prices."
Current corn prices hovering around $5.65 per bushel translate into about 9 cents per pound of corn, Tolman said. Arguing against claims that high corn prices are a primary culprit of higher food prices, he said the price of corn makes up less than 7 cents of the cost of a $4.50 box of corn flakes containing 10 ounces of corn.
"The impact of higher oil has three times the effect of higher corn prices" on food prices, he said.
He also argued that while biofuels such as ethanol have helped drive up corn prices, worldwide demand and weather have been bigger contributors.
Of the 14.4 billion bushels of U.S.-produced corn last year, he said, 42 percent was fed to livestock, 22 percent produced ethanol, 17 percent was exported and 9 percent was for direct human consumption. Even with increased ethanol production, more corn will be available for food, feed and exports this year than last, and 2008 will be a record year for U.S. corn exports.
While groups argue over how much ethanol contributes to higher food prices, some scientists see a big enough link to call for putting the brakes on biofuels.
Late last month, some top international food scientists recommended halting the use of food-based biofuels including ethanol, saying it would cut corn prices by 20 percent during a world food crisis.
Ethanol production is a major industry in some states, including Nebraska, which ranks second nationally in ethanol production.