Give ethanol a chance

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Thursday, May 8, 2008

Editor:

I am responding to Jeremy Madden’s May column in the Aspen Daily News, as well as other news concerning corn-based ethanol fuels.

The accusation that ethanol fuels from corn is causing food shortages and raising food prices is now an issue on the nation’s front burner. Much of the news on this subject is mostly surface talk. This is a very complex issue going much deeper than just blaming the agricultural sector. This was inevitable at this point in time, given the demand for corn and rising gasoline prices.

The public needs to realize that this is the initial phase of the renewable energy development in the United States. This is something that cannot be just shut off and on like a faucet. This development was set in motion a long time ago in the Midwest. Farmers have been waiting years for the corn ethanol fuels development to reach a high level of development.

As the director of the first ethanol fuels commission (Nebraska Gasohol Commission) in the 1970s, we foresaw that corn ethanol fuels would be only a Midwest region development. We did not intend to blanket the nation with this product. Many farmers are actually making real money for the first time in ages. Corn-based ethanol fuels will not go away any time soon. Consider that there are an average of 10-12 large corn ethanol plants in each of the Midwestern states, and they are building more.

I (have) listened to Al Gore being interviewed on the National Public Radio network about many national issues. Now, this is one of the smartest people on earth when it comes to the environment and energy. When asked about the corn ethanol-food issue, he said “you can’t throw the baby out with the bath water.” He went on to imply that corn ethanol fuel needs to be given a chance to work itself out. He made a very strategic point regarding this issue: He pointed out that no one has considered the fact that the commodities market and traders are causing much of this price impact on our food prices — not so much the corn ethanol fuels development.

Let’s also blame the oil companies for adding to the price of all of our delivered goods, especially food. Now we are looking at $4 and $5 gasoline prices. Nothing more should be said. Also, let’s throw in the fact that oil production is now on a steep downward trend. Why do you think that General Motors, Chrysler, and Ford have invested heavily in manufacturing flex fuel (ethanol fuels) vehicles? Now Toyota is planning to introduce ethanol fuel-capable trucks soon. I am very confident that this corn ethanol fuels issue will work itself out in the very near future.

Be ready to hug a farmer everyday when we run out of petroleum oil. Farmers have the capability of producing ethanol fuels on their own farms as well as in group efforts called co-operatives. If we run out of oil, farmers will have their applications into ATF faster than you can spell “corn.”

One solution might be to form renewable energy co-operatives. Consumers could invest in their own co-ops. Members could drive into a renewable energy park where there would be tanks of ethanol and bio-diesel available at huge discounts. At the other end of the park, there would be a bank of solar-powered outlets where hybrid cars could juice up. Renewable energy tax credits or rebates should be made available for these types of businesses.

We need to control our own destinies by investing in this type of American-owned renewable energy. I’m ready! How about you?

Randy Fricke
Basalt

Comments

Thank you Randy

Submitted by Casey McConnell on Thu, 05/08/2008 - 9:04am.

Thank you Randy for the great comment. I am amazed how an industry that represents less than 10% of our transportation fuel production can be blamed for both food pricing and inflation. That is one powerful crop. Come on give me a break! This past yr we saw the largest corn crop ever! We saw the highest export numbers ever! Corn ethanol produces distillers dried grains which are still fed to animails, it's not wasted. Corn Ethanol is the start of a major domestic energy product that we need and need badly. If you look at charts of oil and food you will see a direct link. We have known for yrs our food supply is based on cheap oil for transportation and petro fertilizers for productions. When you take oil from $20/barrel and go to $120/barrel I think you can come to your own conclusions.

I just wrote a blog about this very issue because Jim Cramer of Mad Money is bashing corn ethanol as well. http://qibioenergy.wordpress.com/

I am not sure what the deal is with Cramer, what’s up with all the bashing of ethanol from Jim Cramer of CNBC? Jim if we listened to you on this subject we would pull the plug on an industry that is helping to create the future biofuels market in this country. Yet you blame ethanol for the huge run up in food prices and inflation. Come on that is crazy! Hello $120 Oil!! Continued Fed interest cuts!! Jim it would be great to know why you are so bearish on a market that competes directly with oil? Maybe full disclosure is in order Jim?

Casey McConnell

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