I read with interest the article “New Energy Plan’s Surprising Impact on Producers”…. And found several issues I’d like to address.
The Iowa Cattlemen’s Association policy is opposed to the National Cattlemen’s Beef Association stance on ethanol. Iowa cattle producers favor increased ethanol production and support the blender’s credit. Although this has created higher corn prices, we are able to utilize the co-products thus giving those of us in the Midwest a huge advantage over the southwestern cattle feeders. This in turn will help bring cattle feeding and its economic benefits back to Iowa.
When the Register listed the food items which will increase in cost because of higher corn prices, the article failed to address that actually only fractions of that cost are from the raw material (corn). In reality much of the additional cost of consumer goods today, not only food, comes in the form of higher production and transportation costs because of high fuel prices.
If fuel prices were to drop, the net result would far out weigh the minimal affect of $4.00 corn!
Iowa Cattlemen’s Association
Source: Iowa EnthanolRFA (PDF file)
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