FOR MORE INFORMATION:
Monte Shaw, 515-252-6249

FOR IMMEDIATE RELEASE

June 5 , 2008

Considering Both Food and Fuel,

Ethanol Use Saves Typical Family $1000

Iowa Corn and IRFA Expose Trickery of Anti-Ethanol Critics

JOHNSTON, IA – Using the backdrop of a free public magic show, the Iowa Renewable Fuels Association (IRFA) and Iowa Corn Promotion Board today exposed the truth behind Big Oil’s Black Magic distortions of ethanol and food prices.  When taking into account ethanol’s impact on food and fuel prices, the best expert data spells out that the typical family of four saves $1000 per year because of ethanol.

Citing authoritative sources such as the US Energy Information Agency, USDA and the US Council of Economic Advisors, IRFA and Iowa Corn showed that if ethanol use were rolled back as critics demand, the massive increase in gasoline prices would far exceed a very minimal savings on groceries.  The net result would be that a typical family of four would lose $1000 of spending power from their budget.

“Big Oil wants to roll back ethanol use under the guise of saving money in a family’s food bill,” said Monte Shaw, IRFA Executive Director. “But when you cut back on ethanol use gas prices skyrocket.  Rolling back ethanol use doesn’t save a typical family in grocery costs.  In reality, it would shift roughly $1000 from their pockets to windfall oil profits and higher gasoline prices.”

Iowa Corn CEO Craig Floss added:  “Corn growers in Iowa today are supplying enough corn for all our markets.  When you put a bowl of corn flakes in front of your kids, what the farmer gets for that corn is less than a penny.  In fact, once Kellogg gets a cereal box printed, the box can cost more than the corn inside it.  Corn is not a major factor in driving up your grocery bill, but energy is. Oil has gone from $50 a barrel eighteen months ago to $130 a barrel today and that skyrocketing increase affects everything.”

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Iowa is the leader in corn production and the leader in renewable fuels production.  Iowa has 29 ethanol refineries with the capacity to produce over 2.2 billion gallons annually.  There are 14 ethanol refineries under construction or expansion that will add nearly 1.5 billion gallons of annual capacity.  Combined, those plants will utilize more than 1.3 billion bushels of corn annually.

About Iowa Renewable Fuels Association

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s ethanol and biodiesel producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

Iowa Corn Promotion Board

The ICPB works to develop and defend markets, fund research, and provide education about corn and corn products.  Iowa Corn also includes the Iowa Corn Growers Association as a membership organization, lobbying on agricultural issues on behalf of its 6,000 members.