ICM: Why We Must Keep the Renewable Fuel Standard
by Dave Vander Griend (ICM/Ethanol Producer Magazine) I was disappointed to read the Aug. 24Wichita Eagle editorial titled “End Ethanol Mandate.” It was important for us to provide factual information instead of misinformation.
First, the U.S. ethanol industry stands on its own, with no federal taxpayer support. Can the century-old oil industry say this? Absolutely not! Big Oil continues to receive billions of dollars annually in tax incentives.
Second, America’s economic prosperity was established by open competition and utilization of cheap energy resources. The RFS is NOT a mandate, but a critically-important market access tool that provides up to 10 percent of the fuel supply. Without the RFS, the only choice for consumers would be 100 percent petroleum-derived gasoline.
…Similar to petroleum refiners enhancing crude oil into gasoline and other valuable products, ethanol plants essentially “refine” feed grains into valuable high proteins/oils. Additionally, our industry converts less valuable starch portions to produce high octane, clean-burning fuel. According to research data compiled by ICM and Monsanto, U.S. ethanol production results in corn’s net usage at a rate of 16-20 percent of domestic corn production (not 40 percent as the media reports). From 2002-‘11, there were an additional 1.3 billion corn bushels contributed to the U.S. feed/food supply because the ethanol industry was a significant marketing choice for grain producers.
…Until Big Oil stops placing barriers to expanded market access for ethanol, the RFS is needed. READ MORE