UPDATED Steelman: Mo’s ethanol mandate has driven up gas, food prices
State Treasurer Sarah Steelman, a Republican candidate for governor, held a press conference at a St. Louis gas station this morning to outline her proposals for addressing the energy problems and rising food prices in Missouri.
Her key proposal: End the state’s 10 percent ethanol mandate for fuel sold in the state.
“We need to repeal the ethanol mandate because of the unintended consequences its had on the price of fuel and food,” she said.
According to the fact sheet she handed out:
“The price of gas has up nationwide over 46 percent since the enthanol mandate took effect at the federal level in September 2007. In Missouri, the price of gas has gone up approximately 35 percent since the state mandate took effect in January 2008. Additionally, the price of corn has risen by 75 percent, which along with the increase in fuel costs have contributed to rising costs of food for Missouri families…”
Steelman’s stance shows a shift, somewhat, since April, when the Springfield News-Leader referred to her stance thusly:
“State Treasurer Sarah Steelman, (Rep. Kenny) Hulshof’s Republican primary opponent, supports the mandate but has some reservations about government manipulation of the economy
” ‘As an economist, I am very concerned about the use of mandates in a free market system,’ Steelman said in a statement. ‘However, the consequences of our nation’s continued dependence on foreign oil are so far ranging and serious that I support mandates in the short run to help establish a market for renewable fuels.’ “
Steelman also is promising, if elected, to seek the creation of a Missouri Energy Independence Commission, which would “review proposals…(and) allocate tax incentives and tax credits based on merit…”
“I want the people on this commission to be experts in this area,” Steelman said, referring to the development of alternative fuel sources.
Her other key proposal calls for a $500 state tax credit for Missourians who buy flex-fuel or hybrid vehicles.
UPDATE
Here’s the response from Hulshof spokesman Scott Baker:
“This is a classic flip-flop. She was for it before she was against it. Sarah Steelman continues to wage war on Missouri’s farmers because they happen to be in the way of her latest political objectives.
“One thing has been made clear for voters – Sarah Steelman will ensure that gas prices continue to rise, only faster.”
Well, the environment’s gone completely to hell while we’ve been worshipping the “free market”, so I don’t really agree with Steelman’s rhetoric. But corn-based ethanol is driving up food costs and isn’t a long-term solution (or any kind of solution) to any environmental problems, so I agree the mandate should be repealed.
The ethanol mandate is a BIG mistake. It’s typical of a government soultion that only makes the problem worse or creates additional problems. Gas mileage is decreased by ethanol so you end up using more fuel per mile, how does that decrease the need for oil? Grain prices are way up and as a consequence so are food and feed prices. Given the difficult economic times we find ourselves in, having an economist in The State House seems the best choice.
Pulled from an article online:
“We must step up efforts to conserve fuel and find affordable fuel solutions. It’s estimated the average U.S. motorist could cut fuel consumption by 4.5 percent annually through steps such as engine tune ups, installing new air and fuel filters, driving at slower speeds, carpooling, consolidating trips, using mass transportation, purchasing flex-fuel or hybrid automobiles and even walking or riding a bike. Across the country this savings would fuel our country for another 19 days. Add it all up, and our country could fuel itself from January 1, 2009, until July 4, 2009 — more than half the year.”
It is easier to bash something than to make changes in our daily lives. I believe ethanol is one of the reasons why Missouri has some of the cheapest gas in the nation.
And I don’t believe the food and fuel hype. There is less than a nickel’s worth of corn in corn flakes. Can someone tell me where the rest of the profit is going? Not to the farmers.
blunts brother…
sister…
dad…
anyone who owes him a political favor…
that’s where the money’s going
Whoah. Has anyone looked at how many corn, soy, fructose products are in almost every food produced? It’s a challenge NOT to eat something that has a corn product in it. Steelman’s right. How can a 75% increase in our corn prices NOT affect food prices somewhere down the line? Furthermore, corn and corn-sweeteners are livestock feed as well. If it costs a beef farmer more to feed his cows, it costs me more to buy it. Meanwhile, farmers have subsidies coming out their ears (no pun intended) to produce corn for ethanol, we’re being told we have to use it, but it’s not accomplished what it intended: relieving gasoline dependency. I much prefer Steelman’s tax credit for hybrid drivers, but what about bicyclists, public transit riders? Metro is considering raising their fares her soon–why doesn’t that money go into Metro: keeping their fares low and encouraging ridership (because it’s never as easy as driving a car, even if it’s cheaper), extending services?
Repealing the mandate is the best way to go, before it becomes Missouri’s get out of jail free card for gasoline price solutions.
Mrs. Steelman is certainly someone I have always had good feelings about. I must say I am very, very impressed by her. This is the most honest thing that I have heard come out of a Missouri politician’s mouth. I place her right up there in good common sense and decency as Claire McCaskil.
I do keep leaning towards Steelman for Governor. I certainly trust her. It is just that when I think of Republicans now, I seriously begin to shake with discomfort of distrust with the exception of Sarah Steelman.
Furthermore, I do not get as good of gas milegage with this added senseless ethanol, the gas burns faster.
Has scott baker taken the time to check grain prices? Ethanol is waging a war on farmers that feed live stock. If you don’t farm but feed horses or dogs, for that matter, take a look at your feed bills. Has scott baker checked grocery prices lately? Meat, milk, eggs, almost everything you pick up is, significantly, higher. SARAH STEELMAN has the courage to admit ethanol is a mistake. Perhaps, scott baker would have kenny hulsof litigate us out of this mess? The congress, along with Franklin Delano Bush have had a lot to do with the mess the economy is in. And now we’re supposed to bring hulsof home to Missouri, so he can bring that congressional expertise to Jefferson City?
Hemp is 4 times more efficient than corn as biofuel. Hemp pellets can be used to produce clean electricity.
… so powerful it could replace every type of fossil fuel energy product (oil, coal, and natural gas).
… This plant is the earth’s number one biomass resource or fastest growing annual plant for agriculture on a worldwide basis, producing up to 14 tons per acre. This is the only biomass source available that is capable of producing all the energy needs of the U.S. and the world…
Hemp will produce cleaner air and reduce greenhouse gases. When biomass fuel burns, it produces CO2 (the major cause of the greenhouse effect), the same as fossil fuel; but during the growth cycle of the plant, photosynthesis removes as much CO2 from the air as burning the biomass adds, so hemp actually cleans the atmosphere. After the first cycle there is no further loading to the atmosphere…
Source: USA Hemp Museum
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The solid product left over from producing ethanol is called corn gluten,every farmer in my area uses it for cattle and hog feed, because they can by it cheaper than corn.
The only thing used in the production of ethanol is the starch,that leaves all the food value in the corn gluten.
THE PRICE OF FOOD HAS RISEN BECAUSE OF THE PRICE OF DIESEL FUEL!