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KCGA: Consumers to pay for several more months of corn, ethanol bashingKansas Despite several research studies showing that ethanol production and higher corn prices have only a small effect on consumer prices, anti-ethanol forces have teamed up to sway public opinion against farmers and the fuel they produce. The Kansas Corn Growers Association believes facts, not well-funded public relations campaigns, should prevail. "We are hearing that the Grocery Manufacturers Association has embarked on a multi-million campaign through a Washington, D.C., public relations firm to turn public opinion against corn-based ethanol," according to Kansas Corn Growers Association Executive Director Jere White. "Several credible studies released this year show high fuel prices have a much greater impact on food prices than higher corn prices." White said consumers are wondering why there has been little connection made between fuel prices and grocery prices. "That's where the story gets interesting. In addition to GMA, we are told the oil industry has chipped in millions to the campaign as well," White said. "Consumers are paying higher prices at the pump and at the checkout. Then the oil companies and food companies are using that money to blame ethanol for higher food and fuel prices." While corn and ethanol producers have the facts on their side, it will be difficult to beat a multi-million campaign aimed at rolling back the advances made by the ethanol industry, much of which is owned by growers. Corn growers have been working to make sure the public is receiving both sides of the story. "Corn and ethanol producers simply don't have millions of dollars to spend on glossy PR campaigns," White said. "What we do have are facts: several studies showing that ethanol production and higher corn prices account for just a fraction of the increase consumers are paying at the grocery store. Commodity prices account for less than 20 percent of the cost of groceries, the rest is transportation, packaging, marketing and other factors. Plus, ethanol actually reduces the cost of gas for consumers at the pump." While food prices are higher, White points out prices for non-food items are also higher, including things farmers purchase to grow their crops like fuel and fertilizer. "It doesn't take much common sense to understand that the big driver in increased grocery prices is fuel prices," White said. "Sure you're paying more for food, but you're also paying more for laundry soap and toilet paper. Production and transportation costs are up primarily because of increased fuel prices--especially diesel prices. The real story is $120 crude oil and the foreign regimes it supports. It is time we say enough and support America first." 5/19/08 Date: 5/13/08
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