Ethanol Blog
Todd Neeley DTN Staff Reporter

Wednesday 12/16/09

Vilsack: 'Future Food, Fuel Conflict can be Avoided'

U.S. Agriculture Secretary Tom Vilsack said during the United Nations' climate conference in Copenhagen Tuesday that increased biofuels production doesn't have to lead to higher food prices, according to Reuters.

Any increasing competition for cropland for biofuels, he said, may be compensated by increases in farm productivity.

"Every time people start talking about food versus fuel it's always based on the fact (assumption) that where we are remains static relative to production," he said.

Critics have blamed biofuels such as ethanol for higher food prices in 2008, which led to food riots in some developing countries. Vilsack cautioned against blaming biofuels for higher food prices.

(Reuters, Dec. 15, 2009)
(http://www.forbes.com/…)

DTN: Not long after the Grocery Manufacturers Association launched an advertising campaign against ethanol in 2008, studies refuting the group came out of the woodwork disputing GMA's notion that expanded ethanol production was driving up food prices. Studies from USDA, Texas A&M University and others pointed to what were, at the time, high energy prices as the cause of higher food prices. Even after the GMA was rebuked, its members still maintain that ethanol was the cause for higher food prices. (Todd Neeley)

Posted at 9:08AM CST 12/16/09 by Todd Neeley
Comments (3)
The GMA was never rebuked. The CBO showed corn ethanol cost Americans about 9 billion in higher food costs. The USDA can't be relied on with this issue. Note that the price of corn did not go down with the price of gas. A report by the United Nations pinned 75% of the spike in food prices to biofuel fueled speculation.
Posted by Russ Finley at 11:38PM CST 12/16/09
Russ, Here are the Texas A&M and USDA studies that countered GMA's claims, and there were others: “The Effects of Ethanol on Texas Food and Feed.” http://www.afpc.tamu.edu/pubs/2/515/RR-08-01.pdf “Corn Prices Near Record High, But What About Food Costs?” http://www.ers.usda.gov/AmberWaves/February08/Features/CornPrices.htm
Posted by Todd Neeley at 8:19AM CST 12/17/09
Russ, You can only discredit your case by using opinion of the United Nations, they still act like Iran only wants nuclear energy!!
Posted by Craig Heisserer at 3:32PM CST 12/17/09
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