Surely Rep. Herseth-Sandlin is correct that its the damned oil companies who are raising a stink about ethanol:
Rep. Stephanie Herseth Sandlin, D-S.D., blamed the oil industry and oil-producing states like Texas for re-igniting the controversy [over ethanol].
"The petroleum industry had to be pulled, kicking and screaming, to blend any amount of ethanol into their gasoline," Herseth Sandlin said.
Except that she is wrong:
Ethanol is to blame for some of the increase in the price of corn to $6 a bushel from $2 a bushel two years ago, according to a new study by University of Wisconsin agribusiness professor Randy Fortenberry and graduate student Hwanil Park.
The study looked at the rise in corn prices paid to farmers from September 2006 to December 2007. It found that 31 percent of the total price increase was related to ethanol production. The remainder was linked to a combination of other factors - increased demand for food from developing countries, the shrinking value of the dollar and commodities speculators.
Couple this with this previously mentioned study and at minimum the preponderance of evidence is that our ethanol policy is a significant contributor to higher food prices. And we wouldn't want to reject the judgment of science, would we?
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