Corn Growers Defend Missouri Ethanol Standard

The Missouri Corn Crowers Association (MCGA) is citing ‘political schemes’ are the root of talk that may remove the statewide ethanol standard. This removal, they say, “will sharply increase prices to consumers, drain dollars from already tight household budgets and play directly into the hands of foreign oil cartels.”

Missouri Corn“By utilizing corn-based ethanol in gas pumps throughout the state, Missouri consumers have earned bragging rights for having the cheapest gas in the nation,” states MCGA CEO Gary Marshall. “By design, the use of ethanol as required by the Missouri Renewable Fuel Standard works only to lower the cost to consumers. The law is written with a price trigger that if ethanol is ever priced higher than gasoline, marketers are not required to use the high performance fuel.”

Missouri state farmer owned cooperatives are now selling ethanol at more than a dollar under regular unleaded gasoline. Marshall noted that it is the only cost-effective substitute in today’s tight market, and that removing the ethanol requirement in Missouri would only increase prices at the pump for already hurting consumers.

At the national level, corn-based ethanol production represents 7 percent of the gasoline supply. A recent analysis by Merrill Lynch shows that gasoline prices would be 10 to 15 percent higher without the ethanol supply in the marketplace. That translates into ethanol helping hold down gasoline costs to American drivers by 60 to 70 cents per gallon.

Currently, with the ethanol standard, Missouri has the lowest cost of gasoline at the pump than any other state.

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