Ohio corn growers deeply concerned and are providing food, feed and fuel

By Steve Vanzant
Ohio Corn Marketing Program Board Member

Farmers such as myself are deeply concerned about the current state of affairs in providing food and energy for our nation, and indeed the world. After all, we have devoted our lives to the production of food, and we take our life’s work very seriously. Unfortunately, there is much disinformation being distributed about the effects of ethanol production on our food supply and consequently, food prices. For the common good of our country, the time has come to address some of this disinformation.

The Renewable Fuels Standard, which is the driver for the expansion of the ethanol industry, caps the production of corn-based ethanol at 15 billon gallons annually. This number is not an arbitrary figure; it is based on the amount of corn production left over to be devoted to ethanol production AFTER the traditional needs of domestic food usage, feed usage (livestock), and world export demands are met. FOOD IS THE PRIORITY HERE. Corn producers have NOT diverted corn from food needs; we are instead providing corn for food and feed use and in addition, providing corn for ethanol production as well. This feat is accomplished by rapidly increasing yields with dramatic technological advances, and the most significant advances are yet to come!

U.S. farmers are meeting the demands of a growing world. In 2007, farmers increased domestic corn production by 29% over 2006, while at the same time providing adequate domestic supplies of soybeans and wheat. The world’s demands for protein (soybeans) and a major loss of wheat in other growing regions of the world allowed us to assist with record exports of these commodities as well. In addition, very little media attention is given to production of Dried Distiller’s Grains, which is always a co-product of ethanol production. DDG’s return 1/3 of the volume of corn used to produce ethanol while at the same time providing 3 times the protein of the same amount of raw corn. The world is in desperate need of protein, and ethanol helps provide a new product to assist in that need while at the same time providing fuel.

The supply of corn is stable, and indeed is growing rapidly. The problem is not that we do not “understand simple economics”, as suggested by the Environmental Working Group, but rather that the economics are not that simple. The supply of corn is adequate. Price speculation of all commodities, including oil, grains, metals, etc. has had a major inflationary effect on both food and fuel prices, as well as other aspects of our economy. In addition, many procedures enter into the production of food from the farm to the dinner plate, and almost all of these procedures involve, either directly or indirectly, petroleum. The price of oil is certainly the single most important factor in the rising cost of food. Ethanol is a major opponent to the runaway cost of oil, providing roughly 10% of our domestic fuel needs at the 15 billion gallon level. Reducing efforts to expand ethanol production would serve to curtail a major competitor to the greed ridden oil industry. This would only serve to further increase the price of oil, fuel, and consequently, food. This is a prime example of exactly what the U.S. doesn’t need.

The logical conclusion, for the common good of the U.S and for the world, is to allow the production of U.S. corn-based ethanol to continue to advance to the 15 billon gallon level of annual production. Farmers can supply the ethanol industry with enough residual corn to supply the ethanol industry’s needs at that level of output.. More importantly, farmers can continue to provide a reliable and adequate supply of corn, as well as other basic commodities for the much more important food and feed needs of our country and our world.