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 Ethanol is under attack 

Ethanol is under attack

1/05/2008 6:25:00 PM
It seems that ethanol has a target on its back. The rising cost of food has gained a lot of media attention, with many laying the blame at ethanol's feet, despite numerous reports and studies showing that other factors such as the high price of oil are the real culprits.

The increased coverage of the issue has brought politicians into the fray.

Texas Governor, Rick Perry, requested a waiver of the Renewable Fuel Standard from the Environmental Protection Agency, asking that blending requirements be rolled back to 50pc of mandated levels.

Now Senator Kay Bailey Hutchinson, R-Texas, says she will submit a bill that would freeze the national biofuel mandate.

It's unclear whether Senator Hutchinson will be able to find support in the Senate, since the mandate that was passed in the Energy Bill had wide bi-partisan support. However the winds of politics can change rapidly, especially in an election year.

On Tuesday, President Bush defended ethanol in a speech given in the Rose Garden.

He said food price increases are minimally impacted by biofuels and the recent rise in food prices can chiefly be blamed on weather, increased demand and higher energy prices.

The truth of the matter is it's in our national interests that our farmers grow energy" Bush said. "As opposed to purchasing energy from parts of the world that are unstable or may not like us."

SOURCE: FarmProgress

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Comments


Date: Newest first | Oldest first
Whilst it appears that food prices are presently only minimally affected by biofuels, Pres. Bush's position that farmers should grow energy as opposed to buying from other parts of the world is a worry.

Dependence on biofuel produced from crops (like corn) could ultimately pose a problem re security of supply i.e. the ability to grow sufficient crop could be reduced by climate change itself.

Hence focus on alternatives such as geosequestration (coal), wind, solar, tidal, hot rocks etc. is vital.

Biofuel might have a place but weather/climate change poses a security problem.

Production of biofuel from less vulnerable sources might be an option eg. from phytoplankton, algae etc.

Posted by razor on 2/05/2008 9:39:30 AM
This is not journalism, it's opinionated commentary.

There are also numerous studies showing that ethanol and other biofuels are contributing to high food prices.

Where's the balance?

I am interested in news, not the opinions of journalists who simply have a forum.

Posted by David L on 2/05/2008 10:01:22 AM
Editor's note: David, that's a big call given that all bar the first two paragraphs contain attributed comment. These comments put the lead sentences in context. Hence, it is not commentary but straight reporting. As for balance, President Bush's comments are a direct counter-point to those of Bailey and Perry.
Posted by Michael Thomson on 2/05/2008 10:26:21 AM
Bush is right on this issue, even though he will be primarily focused on the strategic and security position of bio-fuel production within a country and less reliance on imported oil.

Food prices are rising primarily because of rising fuel prices that add to the cost of transport and the high cost of chemical fertiliser production that is tied to the petro-chemical industry.

Add to this the loosening of food subsidies and the costs associated with drought, loss of water for irrigation, etc. and food prices rise.

The impact of bio-fuel production on food prices is probably much less than 5%.

However, this is a small price and worthwhile if it improves air pollution, secures the income of grain farmers and enables the recycling of nutrients back to the land from distillers grain as soil conditioners and stock feed.

Posted by mangiri on 2/05/2008 10:41:42 AM
If biofuels are to blame for the current rise in food prices, why then is rice also at record high prices (when rice is not used as a biofuel feedstock)?

Let's deal with the facts, not the biased opinions of the oil lobby.

Posted by Free Range on 2/05/2008 2:23:09 PM

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