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Getting to the meat of truth on ethanol

Nov. 30, 2011

Lest we forget, the politics of ethanol is as unsettled as ever.

In an editorial in the Southeast Farm Press, the president of the National Corn Growers Association responds to an Associated Press story about the meat industry wanting to change the nation’s Renewable Fuel Standard to give them access to cheaper corn. The standard requires the nation to produce 36 billion gallons of renewable fuel by 2022 - unless it's changed by Congress. A House bill introduced last month would partially waive the ethanol goals when corn inventories are low.

The AP story put the industry's concerns this way:

The amount of corn consumed by the ethanol industry combined with continued demand from overseas has cattle and hog farmers worried that if corn production drops due to drought or another natural disaster, the cost of feed could skyrocket, leaving them little choice but to reduce the size of their herds. A smaller supply could, in turn, mean higher meat prices and less selection at the grocery store.

But Garry Niemeyer, the corn association president, writes:

"...corn growers support ethanol because it is good for our farmers, to be sure, and for other reasons as well. It helps rural economies. It’s good for energy independence. And it’s better for the environment than gasoline. What’s not to like?

"We supported the growth of the ethanol industry for reasons that are as valid today as they have ever been. Corn farmers have the ability to grow more corn per acre and this ability will continue for the foreseeable future, with some predicting 300 bushels per acre, more than double the 2011 crop. Finding other major uses for corn provides security and stability for the American farmer."

Niemeyer argues that economic conditions have improved for beef and dairy farmers since the implementation of the expanded Renewable Fuel Standard in 2007, citing a study released by Texas A&M University and Doane Advisory Services. He says the meat industry also ignores the impact of distillers grains from ethanol production,which are used in feed.

And he adds: "...corn growers rely on a profitable livestock sector, which is why we have always championed them on many of their interests and issues, from animal welfare to free trade, to increase market demand for livestock products, not hindering one market to keep corn prices artificially low."