One of the more significant findings of a Purdue University study released this week on food price drivers is that ethanol policy is only responsible for $1 of the $4 price increase in corn prices since 2004.
Economist Wally Tyner says between 2004 and the beginning of 2008, oil went from $40 per barrel to $120 per barrel at the same time corn prices increased from $2.00 a bushel to $6.00. “Of that $4 increase, about $1 is due to the US subsidy and about $3 is due to the higher crude oil price,” Tyner told a Farm Foundation forum on the study earlier this week. “So even if all the subsidies go away tomorrow, corn prices would still be high, unless we chose to ban use of corn for ethanol.”
University of Nebraska policy specialist Brad Lubben, who gave his analysis of the study at the forum in terms of public policy, said this is an important point to consider when attempting to change the Renewable Fuels Standard in an effort to lower food prices because it is the “easiest” to manipulate. “It’s an important consequence to realize that the easiest policy to attack may have relatively little significance and little impact on the current supply and demand balance for these ag commodities and for energy,” Lubben said.
Lubben pointed out that while it may seem that changing the RFS is easy, EPA has already had to postpone its decision on the request for a partial waiver of the RFS because of the challenges they are having in analyzing all the comments and data they have on the issue.
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A new company has been formed that looks to lead the U.S. hydrogen market.
The county’s regional planning commission unanimously agreed to issue a zoning permit to BlueFire Ethanol to build a $30 million facility in Lancaster, located north of Los Angeles. The plant will be built next to a landfill and construction is scheduled to begin in the fall. 
A group of major players in the agribusiness sector have joined together to highlight the ability of American agriculture to meet both food and energy needs. 
Recently, biodiesel received ASTM approval for meeting standards for fuel use. That means that any biodiesel that meets that standard is as safe as regular diesel fuel. But some auto manufacturers and dealers are being a little hesitant in giving biodiesel a thumbs up for use. 
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