Two new studies are out, both arguing that the current Renewable Fuels Standard is “devastating” the economy and driving food prices out of reach.
The studies by Thomas Elam of Farm Econ LLC and Keith Collins, former USDA economist, come at the end of the EPA comment period on a request by Texas Gov. Rick Perry to roll back the ethanol mandate.
Both studies are in direct conflict with last week’s USDA report which found that ethanol has reduced gasoline prices and had only minimal impact on food prices. And with the Consumer Federation of America, which found that how far it is transported is the biggest factor in food costs. And with Texas A&M University, which found that energy costs affect food prices on multiple levels.
Both Elam and Collins said just the opposite, that ethanol has been a key factor in raising food prices and had almost no impact on gasoline prices.
Elam was hired by the Balanced Food and Fuel Coalition, a consortium of livestock, pork and poultry producers, to come up with a study to support their views.
Collins was on the payroll of Kraft Foods Global to provide supporting material for its comment to the EPA urging the overturn of the fuel standard.
HMMM. I wonder how those organizations knew what those studies would say before they were conducted?