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Ethanol company Aventine Renewable Energy Holdings Inc., will continue to market ethanol for Granite Falls Energy LLC, of Minnesota.

According to a press release, Granite Falls has been member of Aventine’s marketing alliance since 2005. In November 2006, Granite Falls notified Aventine that it would not automatically renew its agreement with Aventine in order to evaluate other alternative ethanol marketers. Upon completion of its due diligence in evaluating other potential ethanol marketers, Granite Falls rescinded its cancellation letter previously sent to Aventine.

Ethanol has been blamed for both higher egg prices and higher milk prices recently due to higher costs for livestock feed.

Overall, the American Farm Bureau Federation reports that for the first quarter of this year, food prices are about four percent higher than the previous quarter. Farm Bureau’s regular market basket survey shows 12 of 16 basic grocery items are higher priced, including eggs, flour, bacon, pork chops, milk, potatoes, corn oil, mayonnaise, vegetable oil, ground chuck, sirloin tip roast, and toasted oat cereal.

Items lower in price compared to the end of last year were cheddar cheese, bread, chicken and apples.

It’s interesting to note that higher egg prices are blamed on ethanol while chicken prices are lower – and that higher milk prices are blamed on ethanol, but cheese prices are lower. It’s also interesting to note that red meat prices are higher compared to the last quarter of last year, but lower or the same compared to the same quarter last year.

Finally, Farm Bureau notes that the farmer’s share of the food dollar continues to decline. At this point, farmers and ranchers only receive about 22 cents out of every dollar spent on food – which means the rest goes to costs for transportation, manufacturing, retailers, etc. In other words, the middle men. Unlike most other business people, most farmers and ranchers are unable to set their own price for the commodities they produce and sell. They receive prices set by the buyers of the products. Even if their costs go up, they are unable to accordingly pass those costs on to the consumer. Therefore, most of the time, higher food prices go to the middle men, not the farmer.

At least three GOP presidential candidates were talking about biofuels on Wednesday.

In his campaign kickoff address, Republican Tommy Thompson, former Governor of Wisconsin, noted that his state “saw the promise of ethanol and renewable energy far before it was fashionable.”

On the environment and energy, America must become independent in its energy needs and break reliance on foreign oil. We must begin with greater investments in renewable energy, like ethanol, so we can bring these technologies to market faster and more efficiently. And we must come together and deal with our changing climate.

According to an Associated Press article, Republican presidential candidate Rudy Giuliani said during a visit to Florida that everything should be considered if the United States wants to break its reliance on foreign oil.

The former New York mayor cited Brazil’s use of ethanol as an example the United States should follow.

If the United States concentrates on new or improved technologies for energy production, it can then turn around and sell them to countries like India and China who have a growing demand, he said.

Meanwhile, in Oklahoma, CNHI News Service reports that Sen. Sam Brownback (R-KS) voiced support for a new version of the Homestead Act that would “encourage capital investments in rural communities, which could include the production of corn or other ethanol-producing or alternative fuel-producing crops.”