Thursday, December 18, 2008

Ethanol Bailout? Environmental, Watchdog, & Food Industry Groups Respond

WASHINGTON-(AgNetwork)--This week it was reported that the Renewable Fuels Association had suggested, both to Capitol Hill staff and members of President-Elect Barack Obama's team, a variety of proposals to aid the ailing ethanol industry, including a $1 billion short-term credit facility and a $50 billion federal loan guarantee program. In response, the following statements were issued by various members of the Food Before Fuel coalition.

"A lot of industries lost money, closed plants and laid off workers when our government's ethanol policies drove corn prices to record highs this summer. In fact, the poultry and livestock industry probably suffered far more financially than the corn ethanol industry. To bail out the corn ethanol industry while ignoring other rural industries harmed by high corn prices and the sagging economy would be insulting and insensitive. The best course of action would be for Congress to revisit the renewable fuels policies that caused this disaster, but in all events it must give equal consideration to everyone affected by its corn ethanol policy." - Joel Brandenberger, president, National Turkey Federation

"The ethanol industry's claim that a bailout for their industry is justified by the creation of "green jobs" is truly a case of "green wash." The net energy yield of corn-based ethanol is marginal at best. Corn ethanol has been shown to contribute to carbon emissions, ground level ozone and water pollution. From the enormous amount of water it takes to create the fuel to the fossil fuels that run most ethanol plants, ethanol's environmental impact has been shown to be detrimental to our nation's soil, air and water - and to our planet's climate. It contributes to both soil erosion and water pollution. Virtually every major environmental organization in the world has come out against policies that expand the use of corn ethanol. " - Lester Brown, president and founder of the Earth Policy Institute

"Since corn ethanol boosters have never known a day when they weren't benefiting from government largesse, it's sadly predictable that their response to times of economic distress is to push for more handouts rather than consider reality-based business models. Ethanol lobbyists won't call their latest loan and mandate schemes 'bailouts,' but after seeing so many other interests line up for federal cash recently, taxpayers know when they're being shaken down. Americans should be outraged that yet another industry, especially one that is already dependent on the government, has the gall to ask them for even more of their hard-earned money." - Andrew Moylan, government affairs manager, National Taxpayers Union

"America needs to shift its energy policy away from biofuels like corn ethanol that drive up food prices and harm the environment toward second generation solutions that don't pit our need for fuel against our need for affordable food. An additional $50 billion in government support for the corn ethanol industry will only calcify the status quo and reduce the urgency for innovation." - Scott Openshaw, communications director, Grocery Manufacturers Association

"The ethanol industry has taken taxpayer subsidies for more than 30 years and is still not economically viable. The U.S. needs to move to the next generation of biofuels and other alternative energy sources that do not pit our energy needs against our need for affordable food. Corn based ethanol is a major contributor to higher food prices and continuing down this path will further burden America's consumers who are already struggling to put food on the table. Our investment in alternative energy sources should be directed toward truly sustainable solutions for the 21st century, not failed ideas from the 20th."- J. Patrick Boyle, President and CEO of the American Meat Institute

"For thirty years the corn ethanol industry has received billions in government subsidies. For this heavily subsidized industry to now come to Washington, hat in hand, to encourage Congress to provide over $50 billion in additional taxpayer support is way beyond the burden that taxpayers should have to bear. If anything, it is time for Congress to demand that the ethanol industry wean itself from government support and begin to compete in the market on its product's merits. The ethanol industry's hope for a bailout re-confirms the conclusion that too much corn being diverted to ethanol in too rapid of a time is a very unfortunate path to be pursuing. In these difficult economic times and market conditions for most users of corn, it is a time to tighten one's belt." - Bill Roenigk, senior vice president and chief economist, National Chicken Council


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