Ag News
With food costs rising, ethanol benefits now questioned
Published Wednesday, May 07, 2008 at 12:01 PM
WASHINGTON (AP) _ With rising food prices, U.S. senators are second-guessing their directive to increase ethanol use as a motor fuel. The governor of Texas and 26 senators are asking the Environmental Protection Agency to cut in half this year's requirement for nine billion gallons of corn ethanol. They see that as a way to cut food costs. Bob Dineen is president of the Renewable Fuel Association. He says if ethanol production were cut in half this year, gasoline prices could increase by nearly a third because of supply disruptions and the higher cost of replacement gasoline. Nebraska is the nation's third-leading ethanol producer.

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