There's no evidence that ethanol is a conspiracy against humanity

Daily we see stories of rising food prices around the world. Food riots in Philippines, Haiti and other countries are attributed to these price increases.

Some writers and pundits are drawing links between the high price of food and the use of foods like corn to produce ethanol as a fuel supplement. Some Canadian politicians are wrestling with our government’s support of programs requiring an increased ethanol content in gasoline in Canada.

A recent public poll in the Globe and Mail indicated 77 per cent of respondents don’t support federal government legislation that would boost ethanol content in Canadian gasoline. Is this because they believe there is a link between ethanol produced from corn and the perceived shortage of food in parts of the world? This food vs. fuel controversy seems to be one of the most uninformed debates in recent memory.

Statistics tell us the price of rice has doubled in the past six months, but we all know rice and corn do not compete for the same land base. Duncan Macintosh of the International Rice Research Institute in Manila says ‘the current rise in rice prices is the result of a steady decline in global rice stocks since 2004.’

Available statistics draw no link between the use of corn to produce ethanol and the rising cost of rice in other parts of the world. Jim Jubak, a financial analyst and commentator, says there is a direct link between unstable governments and unstable food prices. These governments subsidized rice prices, keeping them artificially low, while at the same time discouraging their own farmers from producing more rice, he claims. Rising demand is now leading to shortages.

Distiller’s grain is a byproduct of ethanol production from corn. There is no loss in protein value allowing that grain be fed as part of a livestock ration. The cycle is simple and elegant: the corn produces ethanol, carbon dioxide and protein; the CO2 is used to nourish greenhouse tomatoes and other vegetables which also pump out oxygen. The protein is used to feed livestock; the manure is then used to produce electricity and nurture the next corn crop.

A recent Chicago Tribune story quotes Merril Lynch analysts who say without biofuels, the price of oil would be about $13 dollars per barrel higher than it is. That $13 saving for each barrel could save the United States 65 billion dollars in foreign oil payments. They suggest making flex-fuel – a mix of gasoline and ethanol – an international standard providing competition for oil-based fuels.

North American farmers are enjoying grain prices like they haven’t experienced in many years. Finally they are able to market their crops and expect to cover their costs of production and still have some money to put in the bank.

That extra money becomes available to permit the replacement of old equipment, worn down through years of low commodity prices, and investment in new technologies. This is what farmers do to nourish the local economy, keeping the money in circulation, they invest it in their industry and subsequently in their community.

With no evidence to support all the theories that using grains like corn to produce ethanol is a conspiracy against humanity, it is obvious there are more benefits than harm from the production and use of ethanol.