Wall Street Journal
Editorial Page Editor
New York, New York
Email: letter.editor@wsj.com

Dear Editor:

The Wall Street Journal is doing a disservice to its readers by misleading them on the facts about the Renewable Fuels Standard in the Senate Energy Bill, S. 517. The National Corn Growers Association (NCGA) is a party to the agreement that led to the Renewable Fuels Standard being included in S. 517. I would like to set the record straight on who benefits from the Renewable Fuel Standard and what the costs of the program will be.

The Wall Street Journal alleges that the passage of the fuels provisions of the Renewable Fuels Standard in the Senate's energy bill (S.517), will result in a hidden "gasoline tax" to consumers. This is false. It is obvious The Wall Street Journal is taking a shallow look at the Energy Information Association's analysis, concluding that gas prices will increase. This increase is due to costs in phasing out MTBE, a known water contaminate, and not due to increasing ethanol use. In fact, the provisions of the Renewable Fuels Standard would create greater flexibility for refiners to use ethanol when and where they choose. This flexibility will reduce gasoline prices, not increase them.

Additionally, the Wall Street Journal suggests that farmers do not benefit from the Renewable Fuels Standard, but, rather, large agribusiness firms. As a farmer, I can assure you that this is not correct. If the Wall Street Journal had checked the facts, it would have accurately reported that most of the new ethanol production facilities built within the last five years are farmer-owned cooperatives. These facilities provide desperately needed economic opportunities for farmers throughout rural America. Moreover, the additional demand for corn created by ethanol production raises the income of all corn growers across the country. That is why corn growers overwhelmingly support the Renewable Fuels Standard.

Finally, we find it unsettling that the Wall Street Journal is more concerned about the Renewable Fuels Standard than about our dangerous dependence on foreign oil. In the case of oil, the market has failed because the political and economic uncertainties make our continued dependence untenable. We do not need American troops and aircraft carriers to guard American cornfields. Unfortunately, we cannot say the same for Middle Eastern oil fields.

Sincerely,

Tim Hume
President

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE