Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 10/12/10


Groups opposed to and in support of corn ethanol subsidies sparred publicly today as a two-day, 15 percent rise in corn prices collided with a list of ideas floating around Washington that would enhance and extend ethanol subsidies.

Also in the mix: The Environmental Protection Agency is on the verge of ruling on expanding the use of ethanol in gasoline and the White House recently reconfirmed its commitment to supporting the ethanol industry.

On a media call this morning, leaders of the American Meat Institute, the National Chicken Council and the National Turkey Federation, the Grocery Manufacturers Association and other groups called once again for ethanol tax credits to expire as scheduled at the end of the year and railed against new ideas about how to subsidize the industry.

Specifically, AMI President and CEO J. Patrick Boyle and others denounced the concept of redefining corn ethanol as an advanced biofuel, which would expand its share of the Renewable Fuels Standard biofuel production targets. They also expressed concerns about any use of loan guarantees to build an ethanol pipeline, new domestic producer tax credits or extending blender credits.

The concepts are apparently being floated in Washington by pro-ethanol groups, but it is unclear whether any of them would find their way into proposed legislation or administration actions.

White House

Meanwhile, a White House blog on Friday reaffirmed the administration’s commitment to supporting ethanol production as well as other biofuels.

“As Congress examines options for extending the biodiesel and ethanol tax credits, the Obama Administration believes in continued financial support for biofuels that can help us meet our energy security and environmental goals. Stakeholders have put forward reform ideas that would provide continued support for first generation ethanol and biodiesel, while simultaneously accelerating the development of infrastructure and research, development, and rapid deployment of cellulosic ethanol and other advanced biofuels, which will be increasingly important in the years to come,” Deputy Assistant to the President for Energy and Climate Change Policy Heather Zichal wrote in the blog.

Renewable Fuels Association

The Renewable Fuels Association reacted in advance to the AMI-led teleconference, calling the food versus fuel debate a “red herring” in a statement and saying lower U.S. corn supplies are offset by increased foreign coarse grain production.

RFA also said distillers grains (a byproduct of ethanol) will displace more than 1 billion bushels of corn in domestic livestock rations this marketing year.

National Chicken Council Communications Director Richard Lobb and National Turkey Federation President Joel Brandenberger pointed out on the teleconference that distillers grain can only replace about 10 percent of poultry feed rations.   

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