For Immediate Release                    Contacts: Art Bunting (815) 674-5562

May 5, 2008                                        Mark K. Lambert  (309) 557-3257  

Suspending Renewable Fuels Standard

 Benefits No One but Big Oil 

Bloomington,IL - Discussions in Washington, DC related to waiving the nation’s Renewable Fuels Standard (RFS) are ill-advised and would have serious unintended consequences that would result in higher fuel and food prices, according to the Illinois Corn Growers Association (ICGA). 

“This is bad policy and tantamount to waiving the white flag in the battle to make our nation less dependent on unstable and unfriendly governments. The primary influence on higher food prices right now is $120 barrel oil. The oil industry made $123 billion in profits last year. That’s enough to buy the world corn crop or 70% of the world wheat crop. What do you think is driving food prices? Ethanol is the only competitor in the marketplace and the RFS is giving us the foothold needed to expand this domestic industry,” said Art Bunting, ICGA president of Dwight.  

Expanded ethanol production is curtailing gas prices by 29-40 cents per gallon, according to the Center for Agricultural Development at Iowa State University, and it is doing so while having a marginal impact on the cost of food.  

A group of 22 Senators sent a letter to the Environmental Protection Agency asking them to consider waiving the RFS in light of escalating food prices. 

Increased production of corn-based biofuels is estimated to account for only 3 percent of the 43 percent increase in global food prices, according to information released by the White House last week. Transportation, packaging, marketing and labor constitute the lion’s share of the food dollar. 

“The truth of the matter is that ethanol production is well ahead of any RFS requirements for oil companies to blend ethanol, because consumers are demanding an alternative. Congress is taking a lot of heat from distressed consumers who are feeling the pain of higher fuel and food prices. I hope this current effort isn’t just an attempt to deflect this ire onto corn. The petroleum industry seems to have already done yeoman’s work setting corn up as a scapegoat, so I don’t think they really need the assistance of the U.S. Senate,” Bunting said.