(Grand Island Independent) — Rick Tolman, chief executive officer of the National Corn Growers Association, said a "massive disinformation campaign" against ethanol was started by the oil industry which doesn't want the competition. It also may have been started by those, such as the meat industry, that want corn to return as a low-cost feed for livestock, he said. American Meat Institute President and CEO J. Patrick Boyle recently told Congress that valuing food for its energy content instead of nutrition is adding "unnecessary inflationary pressure on the U.S. economy." Boyle said that, in 2007, livestock and poultry producers saw their feed prices rise by more than 65% and are anticipating an equally difficult environment for 2008. But when it comes to blaming corn and ethanol for rising food prices and world hunger, Tolman said the argument doesn't hold water. Tolman said there are myriad factors that have increased food costs, such as a growing middle class in Latin America and Asia; drought in Australia; low worldwide wheat stocks; increases in labor costs; a declining U.S. dollar; regional pests, diseases, droughts and frosts; and marginal impacts from ethanol demand for corn and sugarcane. Nebraska ethanol plants represent more than $1.4 billion in capital investment and provide direct employment for some 1,000 Nebraskans. Nebraska ranks second nationally in ethanol production. Also, because of the Renewable Fuels Standard, the American Farm Bureau Federation said gas prices have already been lowered by as much as 15%, saving the consumer roughly 50 cents per gallon. Tolman said even if the RFS is cut back, gas prices and food prices would not go down as oil could rise as high as $200 within two years because of increased demand.
