Friday, August 7, 2009

GAO Report Shows Food Prices Increased Higher than Farm Prices

GAO Government Accounting Office Higher Food Prices
A new report by the Government Accountability Office (GAO) found that supermarket prices for food have climbed by 128 percent since 1982 – four times the increase in crop prices for farmers.

The new GAO report found that since 1982, farmers have generally received higher monthly prices for their commodities, but these prices have increased less than food prices and inflation in the broader economy.

So exactly how does ethanol lead to higher food prices?

It doesn't.

As we've long said here, consumer food prices are largely driven by costs after the farm costs---labor, energy, transportations, marketing AND profits.

And a Senate committee found earlier this summer that recent higher commodity costs were driven by speculators. Again, not by ethanol policy or farmers.

But the Grocery Manufacturers Association continues to stir up hatred for the renewable fuel.

Big Food companies like Kraft Foods continue to record record high profits.

All thanks to their higher food prices and "let's blame the farmers" strategy.

Thursday, August 6, 2009

Cash for Clunkers Raids Clean Energy Fund

Car Allowance Rebate System Cash for Clunkers
Look out, Congress is raiding the clean energy cookie jar!

"Cash for Clunkers" might sound good to many. It's helping to put new cars into driveways of Americans across the country. (Isn't that a lot like a "chicken in every pot?")

But it's disheartening to learn that Congress may fund additional billions for the program from monies meant for clean renewable energy development.

The House voted last week 316 to 109 to add an additional $2 Billion to extend the program and to take the money from the clean energy fund as part of the American Recovery and Investment Act.

There's a blog post from the House leadership to "return" the money.

But, who's going to really notice?

The senate may vote this week, and as soon as today, to pass similar legislation.

America needs to continue to make investments in renewable energy infrastructure.

Is raiding Peter to pay Paul really the best approach?

Never Miss a New Article--> Subscribe to updates by Email
Find What You Seek --> Search

Wednesday, August 5, 2009

Gas Prices Surge and Peak Oil is Nearer Than Feared

crude oil barrelThe cost of America's addiction to oil is rising.

In 2008, America spent $453.3 billion on imported oil.

But the cost of that addiction continues to increase.

Oil prices surged this week to over $71 a barrel.

Higher oil prices appear to be the "new" norm, despite the slow US economic recovery.

As most motorists know, this has resulted in higher gas prices over the past month at the local stations.

In just the past week the average US Regular gasoline price rose to $2.56 a gallon, according to the US Dept of Energy. This was a jump of over 5 cents in just one week.

But what if the rate of oil output reaches its maximum and can only decline?

The stark reality of "Peak Oil" may be closer than ever before.

Dr. Fatih Birol, chief economist for the International Energy Agency, told reporters in Paris this week that:
"...the public and many governments appeared to be oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years – at least a decade earlier than most governments had estimated."
Dr. Birol also noted that most existing fields have reached their peak capacity and the oil existing oil "alternative" is to use the much dirtier use oil derived from tar sands.

All of this means the US needs to move aggressively in promoting renewable fuels like ethanol. Ethanol is available Now. Flexible Fuel Vehicles work Now! And ethanol is made here in the United States!

Never Miss a New Article--> Subscribe to updates by Email
Find What You Seek --> Search

AddThis Social Bookmark Button

Food and Fuel

Good and Balanced Food and Fuel News!