SD Corn

As the world witnessed the worst oil spill of mankind during the last few months in the Gulf of Mexico, environmental journalists seemingly ignored the manmade disaster and directed their attention towards farmers. Corn farmers to be exact, those same people working every day to provide the world with food, feed, fuel and fiber are the problem according to folks from the Environmental Working Group, National Resource Defense Council and Grist Magazine to name a few.

A hot subject in the agriculture blame game is that corn production is the cause of the “Dead Zone,” or hypoxia in the Gulf of Mexico.  Yes, hypoxia is present in the Gulf, but this is a very complex issue in which a number of factors contribute including industrial emissions, residential lawn runoff and sewage likely play an equal role. But, to literally ignore the oil spill while over exaggerating the cause and effects of Gulf Hypoxia seems…well, ignorant.

So when seemingly endless articles are published by these groups referencing each other’s articles, one starts to wonder about their true agenda, especially during a time of disaster. Wouldn’t a “real” environmental journalist report on the effects of spilled oil that will last for decades?  Or is something or someone directing these attacks?

Let’s shed some truth on this subject:

U.S. farmers apply 41% less nitrogen per bushel of corn since 1980

U.S. farmers apply 53% less phosphate per bushel of corn since 1980

Many farmers are now using no-till practices limiting erosion and run-off

Some scientists claim the “dead zones” are shrinking in last few years as farmers have produced record corn crops

American farmers, the “True Environmentalists” care for their land and continue to provide an abundant, high quality and safe food supply while caring for our natural resources year after year. But as they sweat, bleed and bust their back, they are being continuously ripped apart by folks who have never set foot on a farm.

How about this proposition…everyone who puts down our countries farmers should be required to raise and eat their own food. Not to worry, they’re experts on the subject, right?

Is it fair to say to that the United States of America is in a slump? By slump, I mean the lack of progress our country has experienced after all of the clean energy debates and legislation in the past year. The EPA has delayed a move to E 15 in non-flex fuel vehicles twice, we have witnessed the worst oil spill ever and our development of futuristic biofuels is not any closer to commercial production.

Monday, the American Coalition for Ethanol, National Corn Growers Association and the Renewable Fuels Association sent a letter urging, Lisa Jackson of the EPA to approve a temporary move to E 12 in non-flex fuel vehicles while they continue to study the effects, or lack of effects E 15 has on vehicles. This makes sense on so many levels as it would benefit the U.S. economy and environment, but I don’t recommend holding one’s breathe.

A move to E 12 would increase domestic ethanol production pushing the industry past the “blend wall” and would stimulate rural economies through job growth and the purchase of additional bushels of corn. The additional production and use of American ethanol moves us closer to a clean-energy economy and further lessens our dependence on foreign oil.

Most importantly, America’s ethanol industry and farmers are more than capable to move our country well past the E 10 wall with bountiful crops due to increasing yields. Farmer’s are continuing to produce more with less providing plenty of corn to meet the demands for food, feed, fiber and fuel.

With plenty of discussion over VEETC (the ethanol blenders credit) in Washington DC and rest of the nation, Iowa State University released a study showing results that downplayed the negative effects of VEETC expiring. The study was funded by UNICA, otherwise known as Brazilian Sugarcane Ethanol who has been lobbying for the removal of America’s ethanol tariff.

The study claims that losing VEETC and the ethanol tariff would result in the loss of 300 jobs compared to an earlier study by ENTRIX which showed jobs losses of 112,000.

The Iowa State study went on to claim a minimal decline in corn prices and that the import of Brazilian ethanol would only rise modestly to 740 billion gallons. This accounting is incomplete, as it does not contain the tax, gas price, national security, and other economic benefits from the ethanol industry.

Other accounting errors in the study include leaving the corn price and acreage stagnant through 2014 and not accounting for trigger payments from lower commodity prices. The Study also leaves gas prices at $2.30/gallon while they are expected to rise 19% over that time.

According to ENTRIX, United States ethanol production would be cut by 37.7% and the industry would purchase $6.6 billion less in grain and other raw materials. Corn prices would drop 8%. The elimination of tax revenues would equal $2.7 billion on the local and state tax level and $2.4 billion on the national level.

Brazilian Ethanol has everything to gain from VEETC expiring. Losing the 54 cent/gallon tariff will do nothing but hurt farmers, ethanol producers and the overall American economy. One of the reasons for domestically producing a fuel is to become less dependent on other nations; this would in turn defeat that purpose.

To close, attached is a comment from, Joel Velasco, Chief Representative for North America for UNICA, defending the Iowa State study.

“The results are still significant because they show that letting the VEETC and tariff expire would not have the dramatic, adverse effect U.S. ethanol producers have subjected all of us to for decades.”

“Our aim was to provide a realistic analysis of the various scenarios Congress is actually debating – regardless of whether they benefit us. This has not been the case with countless studies paid for and cited by the corn ethanol industry.”

Joel Velasco
UNICA

Good one Joel, you’re just looking out for the American people, right?