Ethanol is good for Missouri and the nation by holding down gasoline prices

By John Moreton

On May 13 this newspaper published an op-ed column from a Southeast Missouri State University professor calling ethanol a "boondoggle." On some small points I would agree with professor Michael Devaney. However, on the whole ethanol is good for Missouri and good for the U.S.

Two years ago our legislature wrote a law mandating 10 percent ethanol in all gasoline sold in Missouri when ethanol is cheaper than regular gasoline. It is a mandate formed in the best interests of consumers and filling stations.

As written, when ethanol saves money for consumers, we get it by law. If ethanol is more expensive, we buy regular gasoline. A recent study sponsored by the U.S. Department of Energy also found that higher blends of ethanol could provide better gas mileage and less pollution than conventional gasoline in standard new cars.

Ethanol is also helping to hold the price down on gasoline. Yes, gasoline is costing more, but remember that, before ethanol, gasoline cost about 20 cents more than diesel. Now, with the addition of ethanol to our fuel supply, gas costs about 70 cents less than diesel. It leads me to believe that ethanol is saving Missouri consumers about 90 cents per gallon just by having an additional competitive source of fuel.

Others are also providing positive analysis regarding ethanol's effect on holding down prices. A Merrill Lynch commodity strategist, Francisco Blanch, says, "U.S. gas prices would be 15 percent higher without the increasing effect of biofuels." Fifteen percent of $3.50 is about 52 cents. No matter how you calculate it, ethanol is saving money for Missouri consumers and keeping dollars here at home.

In the future, it will be great to be able to produce ethanol and related alternative fuels from municipal waste, forest industry and other byproducts. Recycling waste into energy would create additional fuel supply in the U.S. and decrease the waste stream from our cities. Several groups are working on creating ethanol from cellulosic material and trash. It is a great concept. It will also help the U.S. economy by reducing imported fuel. But we will not achieve these second- and third-generation forms of ethanol if we eliminate the corn-based ethanol foundation.

The United States has more than 100 ethanol plants in operation today. All of them are looking for more efficient ways to produce domestic fuel. Ten years ago plants produced about 2.5 gallons of ethanol from a bushel of corn. Now they are approaching 3 gallons from one bushel. They also sell the coproduct, distillers grains, as a livestock feed. Plants are getting more efficient every year, and we anticipate continued breakthrough technology in the future.

Instead of labeling ethanol as a "boondoggle," we should embrace the technology and be thankful for the relief it is supplying consumers in today's tight global energy market.

John Moreton is a corn farmer in the Charleston, Mo., area and has no investment in ethanol plants.