Farmers, Products Helping American Pocketbooks
While Americans are feeling the pinch of high gasoline prices, the fuel could cost as much as 5 cents to 10 cents more a gallon if it was not routinely blended with ethanol. Overall,U.S. consumers and taxpayers benefit from saving $7 billion to $14 billion in lower gasoline costs as a result of increased ethanol use, according to Terry Francl, senior economist at the American Farm Bureau Federation.
Francl said Americans will benefit in other ways, too. After farmers endured years of barely breaking even with corn priced around $2 a bushel, todays relatively high market prices for corn, soybeans and other crops mean federal farm program payments will be reduced by at least $8 billion and possibly as much as $12 billion annually, he said. The overall gains to the economy from ethanol will more than offset any incremental food price increases associated with the production of biofuels.
These and other points about the emerging ethanol industry were shared by Francl during his presentation at a renewable fuels conference in Omaha Wednesday. The aim of the 25x25 Alliance, the sponsor of this weeks National 25x25 Renewable Energy Summit, is to advance the concept that by 2025, 25 percent of U.S. energy needs will be met by resources produced by this countrys farms, forests and ranches.