The Oregon Natural Resources Report - Agricultural News from Oregon

Senator Coburn ethanol remarks stir controversy

March 27, 2011

NCGA First Vice President Garry Niemeyer,
National Corn Growers Association

For years, there has been discontent with ethanol policy and it finally came to a head in the Senate this week with Sen. Tom Coburn of Oklahoma proposing to eliminate the Volumetric Ethanol Excise Tax Credit. Now this comes at a very interesting time in our society, when we are facing rapidly rising energy costs and a senator from an oil state making the proposal.

Who would invest in any new energy venture with this type of attitude in our Senate? We have not built a nuclear power plant in over 30 years, coal fired power plants are not acceptable, drilling for oil in the Gulf and elsewhere has been curtailed in many locations due to environmental laws. Given this scenario it critical that we make development of domestic energy a priority in all its forms. Alternative energy like ethanol is fundamental to avoiding an increased dependence on foreign oil. After observing several countries in Northern Africa to Saudi Arabia in social conflict, why would a U.S. senator want to make us more dependent than we currently are, at over 60 percent?

Sen. Coburn’s need to reduce the federal budget may be the excuse he is using to promote his ideas, but let’s look into that budget discussion for a second. Currently, we are spending $4 billion more than we take in on a daily basis. If the total $5.6 billion VEETC were eliminated, that would erase a little over one day’s worth of our budget deficit here in the United States.

Now, I am not sure, but cutting off your nose to spite your face seems a little overreaching and not appropriate. So, Senator, how are you going to resolve the other $1.595 trillion and bring the budget back in line? One could argue that Sen. Coburn, now in his second term in the Senate, is more responsible for our US economic problems than ethanol is.

Cooler heads need to prevail and understand that there are no perfect forms of energy and we do not live in a perfect world. We are going to have to work together to reduce the costs of all forms of energy to resolve our two problems, lack of domestic energy and elimination of all subsidies on all forms of energy on an even basis.

If Sen. Coburn is willing to be known as the senator who made us more dependent on foreign oil, he should rethink where he is taking this country.

  
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Discuss this article

Nick March 27, 2011

What about how ethanol is not an efficient energy source? Or, subsidizing farmers for ethanol is actually leading to the rise in corn prices? How that rise in corn price is affecting the price of everything else in our country and is a leading factor to the civil unrest in N. Africa? Anytime the government interferes in the market and provides tax credits and subsidies, they ruin another part of the market…the law of unintended consequences. The EPA also wants to raise ethanol in gasoline by another 5% or more, if this happens, food prices will continue to rise. But lets spin the story to make GOP look bad and not analyze the facts and look at why someone would really want to cut ethanol funding. How bout drilling for our own oil, while we invest in alternative energies to ween ourselves off foreign oil and then oil altogether?

Steve Plunk March 27, 2011

Nick is absolutely correct. Ethanol has long been considered misguided as an alternate fuel.

If anyone is responsible for our energy problems it’s short sighted environmentalist who have shut down domestic energy and continue to do so. Don’t blame Coburn for having common sense.

Bob Clark March 27, 2011

The ethanol subsidy needs to be phased out. Farmers shouldn’t get too greedy. Pigs get fat, and hogs get slaughtered. Demand for agricultural products for feeding a developing world population is steadily increasing in and of itself. Farmers don’t need the energy component of demand to prosper. Markets are asking for corn to go to food supply and not energy supply (altho 3% of gasoline needs ethanol as an oxygenate if I understand my chemistry correctly, and what with methanol being found toxic to wate supply).

We need more drilling and we need to continue increasing our use of abundant coal combined with best available emission cleaning techonology to be a very, very competitive economy. The government can spend less without hurting the economy by also simultaneously deregulating and giving business the certainty to invest.

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sukamadek March 28, 2011

Ethanol is junk science, perpetuated by puppets like Grassley, Harkin, Vilsack and of course obuma. Every once in a while a politician stands up and actually have a pair. If this guy wants to run for president he has my vote.

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