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More studies reveal truths behind food vs. fuel debateTexas Studies presented June 9 at the 2008 Texas Ag Forum in Austin indicate corn-based ethanol drastically lowers consumers' cost of gasoline and has little effect on retail food prices. The day-long event hosted a number of university experts, as well as farm group and biofuels representatives. These speakers presented information supporting all sides of the controversial food and feed vs. fuel debate. In the forum, concerns were raised in regards to increasing corn prices due to its use in ethanol production and the impact these costs have on consumers and other agricultural sectors. Henry Bryant, Texas A&M assistant research professor, said ethanol production is substantially lowering motor fuel prices. "If we never used ethanol for gasoline substitution, the price of gas would be $0.42 per gallon more expensive for consumers," Bryant said. Currently, there is 9.5 billion gallons of ethanol in the nation's fuel supply. The total mandate for corn-based ethanol under the 2007 Energy Bill is capped at 15 billion gallons. Bryant said the heavily debated Renewable Fuels Standard has minimal effects on food and fuel prices under normal market conditions. In addition, he said the benefits of the Volumetric Ethanol Excise Tax Credit far outweigh the costs. Bryant found that if the RFS and federal ethanol tax credit were eliminated, gasoline at the pump would cost consumers an additional $0.15 to the already high price they are paying today. The elimination of the two factors would cost Americans $78 billion more at the pump in 2009. John Urbanchuk, LECG expert and Renewable Fuels Association representative, said global food prices are increasing due to rice, wheat and edible oils--not grain-based ethanol. He also said corn has a minor impact on the retail food price and is part of the solution for lessening our dependence on foreign oil. "It is not possible for any alternative energy source to compete with an established energy source like petroleum," Urbanchuk said. "If we don't provide incentive to alternative energy we will always be dependent on oil." 6/23/08 Date: 6/19/08 Advertisement
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