Ethanol Subsidies Bite into Wyoming Food Budgets

WASHINGTON – U.S. Senator John Barrasso, R-Wyo., challenged Congress to address the impact ethanol mandates have on skyrocketing food costs during a Senate Energy and Natural Resource hearing into renewable fuels effect on food and livestock feed prices.

“Corn prices are on the rise. We are not only paying more at the pump, but more in the grocery aisle. As a matter of principle, we must address the consequences of diverting corn on the cob from our tables to corn-based ethanol in our gas tanks,” Barrasso said.

Gas prices have dramatically increased since January 2007, and food and livestock feed prices are now following suit.  The negative impact of increased investment in corn-based ethanol illustrates how Washington policies can hurt taxpayers – including Wyoming families and livestock producers. 

“The combination of Washington ’s subsidies and tariffs has resulted in significant market inefficiencies.  This drives up costs for other agriculture and food industries and contributes to inflationary pressures on American families,” Barrasso said.

“Our policies should not provide such an advantage for any one energy source.  I believe that it is of utmost importance for our nation to develop all energy sources.  We need clean coal, biofuels, wind, solar, gas, oil and nuclear.  Simply put, we need it all.”

The impact of the Congress mandated biofuels policy on water supplies, land use and air quality were put under the microscope at the Senate Hearing.

“A number of factors are driving the surging price of corn and putting a strain on our pocketbooks.  Swelling transportation and fertilizer costs, an explosion in global demand for energy and the increase in ethanol production mandated by Congress, have all directly contributed to today’s higher prices,” Barrasso said.