Sunday, June 01, 2008

 

Ethanol Mandates & The Price Of Food

Ethanol supporters agree that mandates lead to higher prices

Texas Governor Rick Perry has petitioned the Environmental Protection Agency for a one-year reprieve for his state from ethanol mandates:
A predictable backlash has set in against the Perry petition. Iowa Republican Senator Chuck Grassley and South Dakota Democrat Tim Johnson have written the EPA to defend ethanol as representing a small fraction of the rise in food prices. In line behind them are the Texas Corn Producers Association and the Texas Grain Sorghum Association.

At the moment, candidate John McCain, who has been losing lobbyist advisers, could use some help shoring up his credentials as an opponent of special interests. It looks as if Governor Perry has teed up a good one in the ethanol mandate. He might want to let voters know that EPA has the power to call a timeout on biofuels.
Even supporters of ethanol acknowledge that the mandates have resulted in higher food prices. Perhaps someone should ask them why they think this is a good thing.

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