The "Most" List for 2007

During 2007, we've seen hundreds of stories regarding food and food and fuel issues. But in our opinion, a few met the qualifications of being the "Most". So, in no particular order, here's our list of the "Most" for 2007:

Most Sensational

Popcorn Prices Popping But It's All Hot Air

The media still doesn't get it when it comes to food price issues. They lead with sensational claims to scare the public and boost ratings but when the math is done, it's all just hot air. FoxNews.com ran a story this month proclaiming the increase in popcorn costs are due to the demand for ethanol.

Most Outlandish

What Were They Thinking?: NBC Says Movie Piracy Hurts Corn Farmers

NBC has purported to have made an FCC filing in support of tougher internet regulations to combat video piracy. And who does NBC think will benefit from this crackdown on illegal filesharing? Corn Growers!

Most Inspirational

Family Travels the Nation for Renewable Fuels

Labor Day in the US traditionally means the end of summertime activities. And for many returning school kids the annual question will be "What did you do on your summer vacation?". Well, for one Idaho family, the answer was to take a trip across the country in a biodiesel motorhome to bring awareness to clean, renewable energy like biodiesel and ethanol.

Most Historic

1933 Replica Ethanol Station Coming to Nebraska State Fair

A replica of the nation’s first corn-ethanol blended gas station will be on display during the upcoming Nebraska State Fair, August 24 through September 3.

Most Speedy

E85 Viper Sets New Speed Record

Going green doesn't mean you have to go slow. Karl Jacob set out to prove that he didn't have to give up high performance cars in order to save the environment. In fact, he discovered that renewable fuel performs much better than today's gasoline.

Most Humorous

Corn Guy vs. Taco Lady

Corn Guy is back for another episode. This time in an epic battle with Taco Lady. Will ethanol solve all of our fuel needs? What's the real truth about Mexican tortilla prices? Will Corn Guy prevail?

Most Environmentally Friendly

Renewable Fuels Helping to "Save the Bay"

Narragansett Bay in Rhode Island is getting some environmental help from an unlikely source-- leftover restaurant grease and soybean oil.








READ MORE

• Big Oil's War on Ethanol
  
• How Much Corn is Actually Represented in Meat?
• E85 Motorcycle Roars into Iowa
  

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December Food and Fuel America.com Articles

December 2007
Food and Fuel America
Good and Balanced Food and Fuel News!

Be sure to check out these articles which appeared during the month of December, 2007 on Food and Fuel America.com:

• The "Most" List for 2007
• 2008 Indy 500 Pace Car to be an E85 Corvette
• The Misery of High Cost of Oil
• American Farm Bureau President Speaks Out on Food ...
• University Launches New Website for Livestock Prod...
• Man of the Year: President George W. Bush
• Mission: Achieved
• Corny Christmas: GrandMa Cornelia's Christmas Corn...
• San Francisco Mayor Proposes "Soda Tax" for Big Re...
• Danger Level of High Oil Costs: SEVERE
• How America Stacks Up on Food Costs
• President Bush Signs Energy Legislation
• Not Everyone Wants Renewable Energy
• US Congress Passes Historic Energy Bill
• DDGS Exports to Japan Reach Record Levels
• Inflation Surges Due to Fuel Prices
• Governors Call for Improving Alternative Fuels and...
• New Report: Marketing and Demand Are Key Drivers o...
• New Site for Alternative Fuel Prices
• Senate Passes Energy Bill
• There's a Reason Things Move Slower in Washington
• Pioneering Oregon Biofuels Company Honored
• America's Energy Choice
• 2007 Holiday Gift Buying Guide
• Transportation Costs Tough on Dairy and Pork Produ...
• IRS Reacts to Higher Gasoline Prices
• Department of Energy Invests in Biofuels Projects
• EPA Sets a New Renewable Fuels Standard Mandate fo...
• Ethanol has a Role in Our Energy Future
• $ign of the Times
• Mike Huckabee Promotes Energy Independence With Bi...
• Congress Close to Deal on Energy Bill
• Making Cleaner, Sustainable Energy is No Laughing ...
• Rand Graduate School's Support of Ethanol
• The Wall Street Oil Journal

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2008 Indy 500 Pace Car to be an E85 Corvette

History will be made at the 2008 Indianapolis 500 when a customized Corvette Z06 E85 concept that runs on E85 ethanol fuel, a domestically produced alternative fuel similar to the E100 fuel that powers all of the race cars in the IndyCar Series, will be one of the official pace cars. It will be driven during the race’s pace lap by two-time Indianapolis 500 champion Emerson Fittipaldi.

“Although not a production FlexFuel vehicle, the Corvette Z06 E85 concept pace car is a high-performance example of Chevrolet’s gas-friendly to gas-free initiative, demonstrating viable fuel solutions,” said Ed Peper, Chevrolet general manager. “As an ethanol refiner in his native Brazil, Emerson Fittipaldi is the fitting Chevrolet champion to help support GM’s efforts with E85 and celebrate 30 years of the Corvette pacing the Indianapolis 500.”

The 92nd Indianapolis 500 takes place on Sunday, May 25, 2008. It will be the Corvette’s 10th appearance as the official pace car – a record unmatched by any other vehicle.

The Corvette Z06 E85 concept pace car is based on the production Z06 – already one of the fastest and most powerful cars on the market – and blends its performance with the high-octane, renewable alternative fuel that is derived from a variety of crops grown across the United States.

E85 is blend of 85 percent ethanol and 15 percent gasoline. Its benefits include reduced emissions of greenhouse gases and a reduced dependence on petroleum. GM is the leader in E85 production models, with more than 2.5 million E85-capable cars, trucks and SUVs on the road – with more on the way. Chevrolet offers seven E85-capable models in 2008.

After winning the Indianapolis 500 in 1989 and 1993 while driving for Chevrolet – and spending 30 years in his native Brazil as a refiner of ethanol – Emerson Fittipaldi is the perfect ambassador to lead the Indianapolis 500 in an E85-powered Corvette Z06.

“Most of the vehicles in Brazil are powered by ethanol produced from crops grown in the country, so I understand how a domestically produced renewable fuel can help the energy solutions of a nation,” Fittipaldi said. “And the E85-powered Z06 concept pace car proves economic and environmental consciousness can be fun and exhilarating. I can’t wait to get it on the racetrack.”

Fittipaldi, whose personal cars include a Corvette Z06 and a Camaro awarded after winning the 1993 Indianapolis 500, resides in both Florida and Brazil. He has interests in several Brazilian ethanol companies and is an ardent champion of ethanol as a viable alternative to gasoline.

Brazil – the fifth-largest country in the world – is a global leader in ethanol usage in automobiles. Approximately 70 percent of Brazilian new cars are equipped with FlexFuel systems that allow the use of a gasoline/ethanol mix or pure ethanol. Ethanol production has grown tremendously during the last three decades and has allowed the country to practically wean itself completely from imported oil.

Source: General Motors

READ MORE

• Jay Leno Demystifies Ethanol
  
• Jay Leno Goes Green with E85 Corvette
  
• Food Prices Increases Not Caused by Ethanol
• Race with Danica at the Indy 500
  

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The Misery of High Cost of Oil

The rising cost of oil, nearly $100 a barrel, has greatly impacted American consumers in their wallets during the past year. And the food sector has been especially hit hard.

The rising cost of transporting food from fields to America's dinner tables has created hardship and misery for millions of Americans as they've seen their purchasing power diminished by rising oil costs. From milk and cheese to bread and beer, the higher cost of transportation fuel has impacted the American economy.

Recent inflation figures released by the government show the dramatic increase of transportation fuel costs this year. Energy costs increased 5.7 percent in November and have increased at an astonishing 33 percent annual rate in the past three months. Transportation costs rose 14.4 percent for the three months.

One way we're tracking the impact of rising oil costs and its impact is with an "Oil Misery Index(tm)": The cost of one gallon of gasoline and the cost of one gallon of milk. These are two purchases and prices that most Americans know and products they buy every week. The "Oil Misery Index(tm)" as of December 2007 is $6.80. This is up $1.32 (24%) from last year.
















Dec '07 $6.80 ($3.80+$3.00)
Dec '06 $5.52 ($3.20+$2.32)

Avg Whole Milk Price, per gallon:
Dec '07 $3.80
Dec '06 $3.20

Avg Regular Unleaded Gasoline, per gallon
Dec '07 $3.00
Dec '06 $2.32

We'll be checking in on the OMI from time to time this year to track oil's high price of misery and hardship on American consumers.

READ MORE

• Energy Prices Play a Larger Role in Food Prices
  
• Inflation Surges Due to Fuel Prices
  
• Gasoline Prices Rise and So Does Everything Else
• Danger Level of High Oil Costs: Severe
  
• Former CIA Director Warns Foreign Oil is Threat to Economy

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American Farm Bureau President Speaks Out on Food vs. Fuel

American Farm Bureau Federation President Bob Stallman has responded to critics of biofuels like ethanol with an informative essay on the AFBF site.

In it he takes head-on many of the "Food vs. Fuel" unsubstantiated myths being promoted by anti-ethanol critics and the news media.

Among the topics he covers is the news media myth that demand for ethanol here in the US has driven up the tortilla prices in Mexico:

"What these news outlets don’t understand is that tortilla flour is made from white corn, which is completely different and separate from the yellow corn that constitutes over 99 percent of U.S. corn production and is utilized to make ethanol. White corn prices are determined by the supply and demand conditions for white corn, mostly within Mexico."

He also takes on the worn-out logic that the amount of corn used for ethanol in one tank would feed a person for a year:

Opponents of ethanol try to capitalize on straw horse arguments. For example, someone recently suggested that filling a 25-gallon tank of a sport utility vehicle with pure ethanol would require more than 450 pounds of corn, enough calories to feed one poor person for a year. As we say in Texas, that’s nothing but pure hogwash! The fact is that this year the amount of ethanol used as a component of gasoline is less than 5 percent of the total. In reality, based on the opponents’ line of reasoning, it would take only about 20 pounds of corn to fill that sport utility vehicle with pure ethanol – a far cry from 450 pounds!

He concludes that the use of ethanol is good for economic security from high energy costs and that he's optimistic consumers will see through the hyperbole of the food vs. fuel debate.

This isn't the first time Farm Bureau has spoken out about the food vs. fuel myth. Earlier this year, they released a report, Corn Prices Have Small Impact on Higher Food Costs. Terry Francl, Farm Bureau Chief Economist, noted that food prices had little to do with corn demand for ethanol. Instead, weather and high energy costs are to blame:

"Nearly all the evidence points to factors other than ethanol demand, including an early freeze that zapped fruits and vegetables, low world supplies of wheat, milk producers’ cut ting back on production in response to last year’s low prices and the rising cost of energy."

Interestingly, the CattleNetwork site ran an interview that further explained the results, How the Price of Corn Affects Food and Feed.

Source: American Farm Bureau Federation
(AFBF's mission is to be the unified national voice of agriculture, working through our grassroots organization to enhance and strengthen the lives of rural Americans and to build strong, prosperous agricultural communities)

READ MORE

• Food vs. Fuel is Rhetoric
  
• How Much Corn is Actually Represented in Meat?
• How the Price of Corn Affects Food and Feed
  
• Food Price Increases Not Caused by Ethanol
  

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University Launches New Website for Livestock Producers on Dried Distillers Grains

A new Iowa State University Web site is designed to help livestock and poultry producers find a place for their operations in the bioeconomy.

“The emerging ethanol industry creates new opportunities and challenges for livestock and poultry producers,” said John Lawrence, economics professor who directs the Iowa Beef Center. “On one hand, it’s use of corn presents competition for feed, but ethanol processing produces a new feedstuff, distillers grains with solubles (DGS).”

The new site, Livestock and Poultry in the Bioeconomy, is available online at: http://www.ag.iastate.edu/aginfo/livebio.

The site offers advice to beef, swine, dairy and poultry producers through reports, software and links to other Web sites. Most of the information deals with feeding DDGS and the economics of the new feed source.

“Cash receipts from animal agriculture make up more than half of Iowa’s cash farm receipts, and nationally livestock and poultry production is the largest use for corn,” Lawrence said. “This site is a resource for the latest research from Iowa State and other universities on feeding and managing ethanol co-products.”

Dried Distillers Grains, a co-product of the ethanol process, provide an important nutrition feed source for animals.

READ MORE

• DDGS Exports to Japan Reach Record Levels
  
• Ethanol Co-Product Pelletized
  
• Distillers Grains Key to Texas Livestock
  
• Livestock Industry Embracing Distillers Grains
  
• A-maize-ing Fact: One Bushel of Corn
• Websites Offer Info on Dried Distillers Grains

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Man of the Year: President George W. Bush

Nearly a year ago, President George W. Bush, called for mandatory Renewable Fuel Standard and enhanced CAFE Standards in his 2007 State Of The Union Address.

"Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we've done and reduce gasoline usage in the United States by 20 percent in the next 10 years. … To reach this goal, we must increase the supply of alternative fuels, by setting a mandatory fuels standard to require 35 billion gallons of renewable and alternative fuels in 2017 – and that is nearly five times the current target. At the same time, we need to reform and modernize fuel economy standards for cars the way we did for light trucks – and conserve up to 8.5 billion more gallons of gasoline by 2017. … America is on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. And these technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change." — President George W. Bush, State Of The Union Address, 1/23/07

After a long battle with Big Oil and Big Food, Congress and the Administration came together in overwhelming numbers to support an energy bill for America's future.

For his courage and leadership helping to free America from foreign economic oil dependence, Food and Fuel America.com is proud to name President George W. Bush its "Man of the Year" for 2007.

Source: Whitehouse.gov/State of the Union Address

READ MORE

• Mission: Achieved
  
• President Bush Signs Energy Legislation
  
• US Congress Passes Historic Energy Bill
  
• Not Everyone Wants Renewable Energy
  

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Mission: Achieved

President Bush signs historic Energy legislation, December 2007.

READ MORE

• Inflation Surges Due to Fuel Prices
• President Bush Signs Energy Legislation
  
• Big Oil's Big Stall on Ethanol: Keeping E85 Out of Drivers' Tanks
  
• America's Energy Choice
  

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Corny Christmas: GrandMa Cornelia's Christmas Corn Bread

Merry Christmas 2007!

We're making our lists and checking them twice here at Food and Fuel America.com to see who's been naughty or nice concerning food and fuel this year. Some folks are going to get lumps of coal (OK, the cleaner burning coal). Others will get something sweet.

So we're busy in the kitchen whipping up some our favorite holiday foods. Here's one of our favorites direct from GrandMa Cornelia's kitchen:

GrandMa Cornelia's Christmas Corn Bread

Ingredients

• 1 cup all-purpose flour
• 1 cup cornmeal
• 1/4 cup sugar
• 4 teaspoons baking powder
• 3/4 teaspoon salt
• 1 cup milk
• 2 eggs
• 1/4 cup shortening

Directions

Combine flour, cornmeal, sugar, baking powder and salt in mixing bowl. Add the milk, eggs and shortening and beat for 1 minute. Pour into a greased 9-in. square baking pan. Bake at 425 degrees F for 20-25 minutes or until bread is golden brown and tests done (insert a toothpick in the center and remove. If it's clean, then the bread is done).

READ MORE

• How America Stacks Up on Food Costs
  
• Corny Thanksgiving: GrandMa Cornelia's Corn Bread Dressing
  
• James Garner Thanks America's Corn Growers
• It's Time to Thank Farmers

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San Francisco Mayor Proposes "Soda Tax" for Big Retailers

San Francisco Mayor Gavin Newsom announced this week that he is looking into a new tax only on big-box retailers that sell drinks sweetened by high-fructose corn syrup. The tax money windfall would generate revenue to expand an anti-obesity initiative.

According to the mayor, soda is the enemy and a tax will fix the problem:

"A small fee on sweetened beverages is an interesting concept which my administration will be exploring in the coming weeks. Beverages sweetened by high-fructose corn syrup are standing in the way of our efforts to combat obesity.

Interesting concept indeed. To us, this whole things seems a bit fishy or at least San Francisco clam-chowdery.

The tax would only be on "big box" retailers, not all retailers of soda. So soda sold by the small local market doesn't have to pay the tax? Only Wal-mart and Target's sodas are bad for you? And soda served in San Francisco's Fisherman's Wharf tourist areas, already at high prices, must be healthier than others so they don't cause obesity?

And it's only soda sweetened by corn syrup that deserves a tax. What about other sugars used in soda and other high-caloric foods? They must be OK? Even with the same amount of empty calories? Or are they just next on the mayor's tax plan?

Sugar is sugar. Extra calories are extra calories. We all know the truth, even if we don't want to admit it.

Or, in our quest to be politically correct, to point fingers at the real reason for obesity in America: Lack of self-control by most American's in their diet choices and lifestyle; too much food and not enough exercise.

The answers for weight control remain timeless: eat in moderation; gorge on that Ghirardelli chocolate as an infrequent "San Francisco Treat"; include a variety of foods; and, burn up those extra calories with regular exercise.

This tax idea is all wet. Maybe the mayor should claim the Twinkie defense on this illogical idea to generate more revenue for the city's coffers.

The USDA's Nutrition website is a good start for more information on healthy eating. The FDA's Obesity site is also full of sensible facts about weight loss. And information on HFCS can be found on the HFCS Facts site.

Source: Mayor's Office, City of San Francisco

READ MORE

• Petroleum-Based Plastic Bag Ban Begins
  
• San Francisco Turns Waste Into Fuel
  
• Corn-Based Water Bottles Offer a Solution
  

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Danger Level of High Oil Costs: SEVERE

As cold weather moves across the country, homeowners are discovering, in their wallets, the price to be paid for sky-high crude oil. Home heating oils costs are 33% higher this year than last.

But motorists and consumers already know a lot about higher fuel bills. Every week at the gas pump AND and the grocery checkout line, higher transportation costs means more money out of their pockets.

Because we hear from so many people about how higher fuel costs are impacting consumer purchasing power, Food and Fuel America.com has elevated its "Energy Advisory Alert" to SEVERE.


READ MORE

• Inflation Surges Due to Fuel Prices
• Big Oil's Big Stall on Ethanol: Keeping E85 Out of Drivers' Tanks
  
• America's Energy Choice
  
• Former CIA Director Warns Foreign Oil is Threat to Economy

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How America Stacks Up on Food Costs

Heated discussions on food prices and supplies have dominated the news over the past months.

The energy bill signed by President Bush this week sets a quota for 36 billion gallons of biofuels and 15 billion gallons from corn-based ethanol.

But according to the corn growers association, those discussions linking food and gasoline prices to ethanol use are flawed.

In a release this week, they detailed:

• It's true that holiday dinner for 10 will rise about $4 this year, but the real dollar price adjusted for inflation has actually dropped by about 9 percent in the past 20 years, according to the American Farm Bureau Federation.
• Americans spend about 10 percent of their disposable income on food. Households in India often spend 50 percent; many European countries spend double what Americans do.
• Farmers work hard to ensure our food supply is not only safe and secure, but plentiful enough to meet all demands and retain affordable food prices consumers have come to expect. Corn producers are harvesting the largest crop on record. More than 13 billion bushels. Of that nearly 2 billion will remain for use next year.
• Farmers contribute to national energy security and no shortage of corn will result because of increased ethanol production.
  
• Ethanol production is projected to use 17 percent to 18 percent of corn yields with roughly 30 percent being returned to the feed system as distiller grains, which have higher unit protein content than the original corn.
  
• New technologies are resulting in continuing increases in per acre corn yield, making unlikely any shortages for food or fuel, even for global supplies.
  
• Corn growers are part of the solution to high energy prices. They are helping to create a more secure energy future for Americans by producing corn for cleaner-burning renewable ethanol, and not at the expense of providing food.

To learn more about the impact farmers have on keeping the country's food costs affordable while stretching energy resources, visit FarmersMatter.org. Consumers can also leave their own message thanking farmers this holiday season by participating in a video contest and entering to win $1,500.

READ MORE

• A-maize-ing Fact: One Bushel of Corn
• Food vs. Fuel is Rhetoric
• How Much Corn is Actually in Meat?
  
• James Garner Thanks America's Corn Growers
  
• It's Time to Thank Farmers
  

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President Bush Signs Energy Legislation

After months of wrangling and negotiations by members of Congress and the Administration, President Bush signed into law Wednesday major energy legislation.

In doing so, the President remarked:

"Today we make a major step with the Energy Independence and Security Act. We make a major step toward reducing our dependence on oil, confronting global climate change, expanding the production of renewable fuels and giving future generations of our country a nation that is stronger, cleaner and more secure."

The new legislations give strong support to alternative fuels like ethanol. The goal is for the US to produce 36 billion gallons a year by 2022. The legislation also increases the average mileage standard to 35 miles per gallon by 2020.

UPDATE: YouTube Video of the Signing Ceremony


If you can't see the video, click HERE to go directly to YouTube.

Source: White House News Release

READ MORE

• US Congress Passes Historic Energy Bill
  
• Senate Passes Energy Bill
  
• EPA Sets a New Renewable Fuels Standard Mandate for 2008

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Not Everyone Wants Renewable Energy

New legislation passed by the US Congress and signed by the President appears to make some people grumpy. They have vowed to fight the visionary efforts to develop homegrown biofuels from a variety of sources, gain independence from economy-wrecking foreign oil and improve economic security with cleaner-burning renewable fuels.

Note: We have a sense of humor here at Food and Fuel America.com and try to keep up with the latest internet memes as well. So if you are interested, check out the Wiki article on LOLCAT.

READ MORE

• Inflation Surges Due to Fuel Prices
  
• America's Energy Choice
  
• IRS Reacts to Higher Gasoline Prices
  

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US Congress Passes Historic Energy Bill

The bipartisan US House of Representatives overwhelmingly, 314 to 100, passed an energy bill on Tuesday. The senate passed similar energy legislation last week. President Bush is expected to sign the legislation as early as Wednesday.

The historic legislation improves fuel economy and reduces demand for oil. Most importantly, it includes a 35 billion gallon Renewable Fuel Standard (RFS) provision. Other specifics of the bill include:

• Require 9 billion gallons of renewable fuels in 2008 and increasing to the 36 billion gallon requirement by 2022, including a 1 billion-gallon mandate for biodiesel;
• Increase the Corporate Average Fuel Economy (CAFE) standard to 35 miles per gallon by 2020, the first congressional increase in 32 years;
• Study the feasibility of ethanol pipelines, higher ethanol blend levels and the optimization of flex fuel vehicles.

Click HERE for the final House vote results.

READ MORE

• Senate Passes Energy Bill
  
• EPA Sets a New Renewable Fuels Standard Mandate for 2008
  
• RFS Increases Renewable Fuels

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DDGS Exports to Japan Reach Record Levels

According to the U.S. Grains Council in a new report, market share of U.S. imported distiller’s dried grains with solubles (DDGS) in Japan reached 96 percent for the month of October 2007.

DDGS are a highly nutritious, valuable co-product from the ethanol process that is returned to use as feed for animals.

With large DDGS imports in both July and August and a slight drop in September, the month of October marks the highest imports on record in Japan with 16,607 metric tons from the United States.

Cary Sifferath, U.S. Grains Council senior director in Japan, states U.S. DDGS exports to Japan have grown to more than 85,000 metric tons in the first ten months of 2007.

“DDGS imports by Japan continue to be on pace for more than 100,000 metric tons for calendar year 2007,” he said. We now see regular shipments of DDGS from the United States to Japan in both bulk vessel and container shipments.”

As ethanol production increases in the United States, dried distillers grains will be a valuable co-product that will help the US continue to feed the world.

Source: US Grains Council (The U.S. Grains Council develops export markets for U.S. barley, corn, grain sorghum and related products.)

READ MORE

• Ethanol Co-Product Pelletized
  
• Distillers Grains Key to Texas Livestock
  
• Livestock Industry Embracing Distillers Grains
  
• A-maize-ing Fact: One Bushel of Corn
• Websites Offer Info on Dried Distillers Grains
  

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Inflation Surges Due to Fuel Prices

Consumer prices increased by their fastest pace in more than two years in November, cutting into wages and consumer's spending capabilities. Happy Holidays from Big Oil and OPEC!

New figures released by the Labor Department this week showed that overall prices increased by 0.8 percent in November on a seasonally adjusted basis, the biggest monthly increase since September 2005.

The cost of fuel, driven by rising crude oil prices, was the chief culprit. Energy costs increased 5.7 percent in November and have increased at an astonishing 33 percent annual rate in the past three months. Transportation costs rose 14.4 percent for the three months. Food costs rose just 0.3 percent for the month of November.
The inflation report is bad news for consumers and investors as the damage of higher fuel costs spreads to other sectors of the economy. But our economy is tied to the whims of foreign oil cartels. So as long as we are energy dependent upon others, we'll all pay the price.

Source: Department of Labor

READ MORE

• Energy Prices Play a Larger Role in Food Prices
  
• Gasoline Prices Rise and So Does Everything Else
  
• Why Don't They Care About $3.00 Gasoline Anymore?
• Former CIA Director Warns Foreign Oil is Threat to Economy
  

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Governors Call for Improving Alternative Fuels and Clean Vehicles in States

As part of the National Governors Association's (NGA) Securing a Clean Energy Future Initiative, governors joined together last week in Florida to discuss advancing alternative fuels and clean vehicles in the United States.

NGA Chair Minnesota Gov. Tim Pawlenty opened the summit by stating,

"America is the world’s leading consumer of petroleum, using more than 7.6 billion barrels of oil a year, of which more than 60 percent is imported. If we’re to wrestle back control of our own energy future, America must devote serious attention to increasing development of alternative fuels and clean vehicles. As this conference demonstrates, governors are leading the way."

Florida Gov. Charlie Crist added, "As we work together, I am confident that by increasing our use of ethanol – as well as solar power and wind energy – we move closer to making clean energy the standard of the day."

At a press conference following their discussion, the governors released the Initiative’s "A Call to Action (pdf)," a report declaring America’s current energy path unacceptable because of escalating economic risk and serious environmental consequences. The report compels the nation’s governors to act now to solve America’s energy challenges by:

• Defining the current energy problem, including the depths of our current dependence on oil and other fossil fuels;
  
• Painting a stark picture of the "business as usual" future;
  
• Dispelling myths associated with increasing alternative energy sources, breaking our oil addiction, meeting surging electricity demand, and reducing greenhouse gas emissions;
  
• Describing the integral role states will play in promoting clean energy; and
  
• Presenting the Initiative’s roadmap to a cleaner, more secure energy future for America.

Source: National Governors Association

READ MORE

• Midwest Governors Agree to Boost Renewable Energy
  
• Massachusetts Warms Up to Biofuels
  
• Oregon on the Move with Biofuels
  

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New Report: Marketing and Demand Are Key Drivers of Food Price Inflation

A new report by Informa Economics identifies the so-called “marketing bill”—the portion of final food costs that excludes grains or other raw materials —as a key driver of the consumer price index (CPI) for food, largely due to rising energy and transportation costs.

Another significant factor in consumers’ food bills is surging global demand for commodities. The report finds a comparatively “weak correlation” between corn prices and overall food costs.

In fact, just four percent of the change in the food CPI could be attributed to fluctuations in the price of corn. Simply put, growing U.S. ethanol industry is not the cause of food price inflation.

“This analysis puts to bed the argument that a growing domestic ethanol industry is solely responsible for rising consumer food prices,” said Informa Chairman and Chief Executive Officer Bruce Scherr. “The statistical analysis plainly details that energy-intensive activities such as processing, packaging and transporting, as well as the cost of labor, have a far greater impact on consumer food bills than the price of grain. It may be politically convenient to blame ethanol for rising food prices but it doesn’t make it factually accurate. As far as Informa is concerned, this debate is settled.”

Informa has outlined a number of key findings from its report, including:

• The “farm value” of commodity raw materials used in foods accounts for 19% of total U.S. food costs, a proportion that has declined significantly from 37% in 1973.
• The marketing bill has a higher correlation with the consumer price index (CPI) for food than does corn, although there is a notable long-term upward trend to both the marketing bill and the food CPI.
• There is no statistical evidence to suggest that high and/or rising corn prices are the causative reason behind high and rising retail meat, egg and milk product prices.
• The proportion of the average American’s disposable income spent on food has declined steadily over the last half-century, from 21% of disposable income in 1950 to below 10% in 2006.
• No single factor drives consumer food prices over time.

The analysis concludes: “While there have been a number of stories in the media over the last year indicating that consumer food prices are being driven higher by an ethanol-induced increase in corn prices, there is little evidence of such a simplistic cause-and-effect linkage.”

Source: Informa Economics

READ MORE

• Food for Fuel: Myth vs. Reality
  
• Economist Explains Higher Food Prices Caused by Higher Energy Costs
  
• Food vs. Fuel is Rhetoric
  

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