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FOR IMMEDIATE RELEASE
For more
information contact:
Mimi Ricketts, NCGA, 636-733-9004
Rhondalee Dean-Royce, NCGA, 202-628-7001
NCGA Points
to Partisan Politics in Stalled Energy Bill
WASHINGTON (April
5, 2004) -- Concerned by lingering debate on the energy bill and misrepresentations
of ethanol as a contributor to rising gas prices, the National Corn
Growers Association (NCGA) today sent letters to the White House and
congressional leadership dispelling ethanol myths and urging members
to put politics aside and get to work on passage of a comprehensive
energy bill.
“It’s
politics as usual and the American farmer is tired of it. There’s
a lot of doubt in the Corn Belt on whether politicians will actually
do what they were elected to do and that is lead,” said NCGA President
Dee Vaughan.
“We need
the White House and Congress to show Americans that our government works,
that an energy bill can get done and that those we send to Washington
can do something other than blame someone else for not doing their job,”
he continued.
The letter was a
response to several news stories linking ethanol to increasing gas prices.
Within a span of two weeks, gas prices have increased from approximately
$1.75 to more than $2.07 a gallon (national average). Natural gas prices
rose consistently for three days last week at virtually every market
location in the nation --trading April 1 at the highest-ever settlement
price of $5.933 per MMBtu.
The recent increases
are due to a number of influences including an extremely low gasoline
and crude oil inventory, high crude oil prices due to OPEC, a higher
than expected demand due to the growing economy and a cold winter that
diverted production from gasoline to home heating oil.
Recent research
dispels the myth that ethanol is the cause of higher gas prices. In
a recent analysis prepared for the Renewable Fuels Association, prices
of reformulated gasoline (RFG), blended with either MTBE or ethanol,
have not risen as fast as conventional gasoline. The report also found
that RFG production, as a fraction of overall gasoline production, has
remained constant over the last three months, resulting in no evidence
that RFG production is problematic.
The consistent increase
of the gas prices is resulting in higher prices in every industry in
the United States and consumers are feeling it even if they don’t
drive. Increasing production and use of ethanol and biodiesel, according
to Vaughan, will:
• Promote
a “greener” environment (unlike the MBTE additive)
• Promote
economic growth and job creation
• Secure
a better, more independent energy policy decreasing the need for imported
petroleum products
• Help
reduce the cost of gasoline
The letter reflects
the frustration felt by NCGA’s president and its members: “U.S.
corn farmers are proud that the ethanol industry has doubled production
over the past three years. Without ethanol, existing supplies and refining
capacity would be hard pressed to meet our nation’s fuel needs.
But the ethanol and renewable industry alone cannot meet the need of
our nation and there must be action by the government to address the
loss of our energy independence, jobs and in some parts of our nation,
hope.”
NCGA urges immediate
passage of a comprehensive energy bill that includes a renewable fuels
standard (RFS) along with the Volumetric Ethanol Excise Tax Credit (VEETC).
VEETC and RFS not only benefit corn farms and rural communities, they
also provide a stable, domestically produced energy source, and promote
job growth.
“The unstable
sources of energy threaten not only the agriculture industry, but every
American. We cannot afford to linger any longer on a decision regarding
energy. If Congress does not take strong steps to enact comprehensive
energy legislation, our country will continue to see devastating effects,”
Vaughan said.
To read the letters
in their entirety, visit the NCGA web site at www.ncga.com.
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The National Corn
Growers Association mission is to create and increase opportunities
for corn growers in a changing world and to enhance corn’s profitability
and usage. NCGA represents more than 33,000 members, 25 affiliated state
corn grower organizations and hundreds of thousands of growers who contribute
to state checkoff programs.
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