May 13, 2008

Ethanol is reducing food costs by lowering gas prices, some experts say.

According to one analyst from Merrill Lynch, ethanol lowers gas and oil prices by 15%. Another study by Iowa State University found that ethanol reduces gas prices by at least 29 to 40 cents per gallon. Rising energy costs play the dominant role in the price of food because raw ingredients like corn comprise only 20% of the price of food. The other 80% is shipping, packaging, processing and advertising costs.

In the past year, food prices have increased only 4.6% while energy prices have increased 26.4%, according to the Consumer Price Index Report. The president of OPEC, Chakib Khelil, has stated oil could easily reach $200 per barrel within two years.

A driver who buys E10 can save at least ten cents a gallon—and that can add up to hundreds of savings in one year. But eliminating ethanol from the U.S. fuel supply would instantly cause gasoline prices to soar an additional $1.10 per gallon over the current price, according to economist John Urbanchuck.

When the average animal travels more than 1,000 miles from producer to plate, it’s clear that oil and gas prices are pushing up the cost of everything. Oil companies are scrambling for a scapegoat while they rake in billions every month, said Todd Sneller, Nebraska Ethanol Board administrator.

“Consumers who choose ethanol fuels at the pump will save money compared to those who opt for conventional gasoline. We expect Nebraska motorists to save nearly $70 million by using ethanol,” said Sneller.

Even with increased demand for corn for food and fuel, the net output of feed corn and distillers grains has increased 26 percent in the last five years. There is enough corn grown in the U.S. to meet ethanol demand, increase exports and still stockpile a 10% surplus. Nebraska farmers and ethanol producers are providing food, feed and fuel for Nebraska and the nation, said Jim Jenkins, Nebraska Ethanol Board chairman.

April 3, 2008

The high price of oil and gas is driving up the cost of nearly all consumer products, but the ethanol industry helps keep the Nebraska economy strong amidst nationwide inflation.

A recent study by Creighton University economist Ernie Goss found that the ethanol industry and higher ag commodity prices have boosted the Midwest economy while much of the country faces an impending recession.

The production and use of ethanol strengthens Nebraska’s economy while lowering fuel costs. Ethanol blended fuels saved Nebraska consumers more than $70 million during 2007. Francisco Blanch, a commodities expert for Merrill Lynch, said that biofuels like ethanol lower gas prices by at least 15% on a nationwide basis. Those energy savings are retained in the domestic economy, noted Jim Jenkins, Nebraska Ethanol Board chairman.

In 2007, the top five oil companies alone raked in over $123 billion in pure profits. But oil companies are still fighting to keep over $18 billion in tax breaks and subsidies from the federal government. Much of the profit earned on imported oil and gasoline is enhanced by subsidies.

Oil companies make more in 13 seconds than the average American makes in one year. As an alternative to giving subsidies for imported fossil fuels, perhaps oil subsidies should be directed to cleaner, domestic alternatives, said Todd Sneller of the Nebraska Ethanol Board.

Dr. Richard Perrin of the University of Nebraska-Lincoln will speak about the impact of higher energy costs on food prices and other consumer products Friday morning at a meeting of the Nebraska Ethanol Board. Perrin is a Jim Roberts professor of Agricultural Economics at UN-L and studies agricultural production economics and agricultural productivity.

In a February report Perrin wrote that crop prices are determined by the supply and demand of the world market, and that the cost of corn used to produce food is only about 3 percent of the retail price of food. Perrin will also discuss the impact lower ethanol prices have on the economy.

Perrin will deliver his presentation at a meeting of the Nebraska Ethanol Board April 4 at 9:30 a.m. The meeting will be held at the Holiday Inn, 141 N. 9th St., Lincoln.

March 31, 2008

Dr. Richard Perrin of the University of Nebraska-Lincoln and Clark Smith of the Nebraska Department of Environmental Quality will be the featured speakers at the April 4 meeting of the Nebraska Ethanol Board.

Dr. Richard K. Perrin will speak about the relationship of ethanol and food prices. Perrin is a Jim Roberts professor of Agricultural Economics at UN-L. Dr. Perrin studies agricultural production economics and agricultural productivity.

Clark Smith is an air quality specialist at NDEQ. Smith will provide an air emissions regulatory update for ethanol plants.

The Nebraska Ethanol Board will meet April 4 at 9 a.m. at Holiday Inn, 141 9th St, Lincoln. Special presentations will begin approximately at 9:30 a.m.

Established in 1971, the Ethanol Board assists ethanol producers with programs and strategies for marketing ethanol and related co-products. The Board supports organizations and policies that advocate the increased use of ethanol fuels and administers public information, education and ethanol research projects. The Board also assists companies and organizations in the development of ethanol production facilities in Nebraska. For more information, please visit www.ethanol.nebraska.gov.

March 12, 2008

Ethanol sales in Nebraska hit a record high in December as 77% of gasoline sold contained ethanol.

Todd Sneller, administrator of the Nebraska Ethanol Board, said that more Nebraskans are buying ethanol because it’s cleaner and less expensive than gasoline.

Right now the price of gasoline is driving up the cost of everything. Ethanol offers battered wallets relief at the pump, Sneller said. The ethanol industry continues to develop production methods that lower lifecycle greenhouse gas emissions, whether by incorporating energy efficient production methods or by developing new sources of ethanol like cellulosic materials. Ethanol will continue to provide economic and environmental benefits across the country.

Energy usage in ethanol production and the potential of cellulosic ethanol are just two topics of the Ethanol 2008: Emerging Issues Forum set for this week in Omaha.

The Emerging Issues Forum is an annual regional conference for ethanol producers and marketers and related industries. Other topics this year will include the federal energy bill, developments in project financing, and water usage in ethanol production. The entire list of guest speakers and topics is available at the Nebraska Ethanol Board website.

The Forum will be held March 13-14 at the Magnolia Hotel in Omaha. For more information on the Ethanol 2008: Emerging Issues Forum and to download a registration form, please visit http://www.ethanol.nebraska.gov/forum.htm.

March 3, 2008

In order to help promote safety, the Nebraska Ethanol Board is making available a free DVD on the most effective way to fight ethanol fires.

Recently, the Renewable Fuels Association conducted a study to determine the most effective way to fight ethanol fires. A video summarizing the results of the study can be viewed online at http://www.ethanolrfa.org/industry/resources/safety/

The Nebraska Ethanol Board would like to make copies of the video available to fire departments, ethanol producers, and related industries free of charge. If your organization would like to request a DVD copy of the video, please contact Billy DeFrain at 402-471-2941 or email billy.defrain@ethanol.ne.gov with the name of your organization and a mailing address.

To receive further updates from the Nebraska Ethanol Board, please e-mail billy.defrain@ethanol.ne.gov.

Established in 1971, the Nebraska Ethanol Board assists ethanol producers with programs and strategies for marketing ethanol and related co-products. The Board supports organizations and policies that advocate the increased use of ethanol fuels — and administers public information, education and ethanol-focused research projects. The NEB also assists companies and organization in the development of ethanol production facilities in Nebraska Visit the NEB on the web at www.ethanol.nebraska.gov.

To receive news releases from the Nebraska Ethanol Board via email, please email billy.defrain@ethanol.ne.gov