New Issue Brief Highlights Minimal Impact of Ethanol on Food Prices

Energy Costs and Foreign Oil Has Significantly Greater Impact

WASHINGTON, July 31 /PRNewswire-USNewswire/ -- The production of ethanol from
corn has had minimal impact on consumer food prices while reducing fuel costs
to consumers across the country, according to a new study released today.

U.S. Senator E. Benjamin Nelson (D-NE), Chairman of the Ethanol Across America
education campaign, hailed a new issue brief titled, The Impact of Ethanol
Production on Food, Feed, and Fuel, as a calm voice in a debate that has
become confused due to misinformation.

"America's farmers are the most efficient and productive in the world," said
Senator Nelson. "While there is new demand for corn and other agricultural
products resulting from our effort to produce biofuels, we are seeing
increased yields and a likely leveling of prices. We are also working hard to
diversify our biofuel production by utilizing new feedstocks that range from
specialty energy crops to waste materials."

The issue brief, which is a compilation of existing data and research, notes
that while corn prices have indeed nearly doubled in the past year, according
to the U.S. Commerce Department's Consumer Price Index (CPI), food costs have
increased within their historical annual average of 2.9%. However, fuel
prices have risen 82% since 2006 and according to the U.S. Department of
Agriculture, have had a much greater impact on food prices due to higher costs
of bringing products to market and food processing.

Douglas A. Durante, Director of the Ethanol Across America campaign, said,
"Ethanol demand has accounted for 20% of the increase in demand for grain,
with considerably less when the distillers grains are returned to the feed
supply. The other 80% is due to global demand from other countries that are
increasing their quality of life and diet. More people wanting more meat and
dairy products will continue to drive the market much more than biofuels." As
the issues brief documents, even with the new demand for ethanol, the U.S. is
exporting more than at any time in its history while meeting all other feed
and food needs.

The issue brief also makes the point that ethanol is clearly helping consumers
at the gas pump. According to the Nebraska Ethanol Board, fuel prices in
Nebraska are among the highest in the nation, yet ethanol blends ranging from
E10 to E85 are significantly less expensive than gasoline. Recent studies by
commodity analysts Merrill Lynch concluded that all gasoline prices across the
country were 15% lower than they would be without ethanol's role of expanding
supply.

"I think we are losing sight of the big picture and our pressing needs of
producing our own energy, reducing greenhouse gases, creating jobs across the
U.S., and revitalizing rural America," said Senator Nelson. "Through the
ethanol program, we are not only producing ethanol and animal protein from
corn, but the same process can provide food fit for human consumption as well.
Corn ethanol is one step towards energy independence and it is a step that
benefits all consumers. As we move towards a wider range of non-petroleum
feedstocks, these benefits will be even greater."

For copies of The Impact of Ethanol Production on Food, Feed, and Fuel, please
log on to http://www.EthanolAcrossAmerica.net.

SOURCE Ethanol Across America

Doug Durante of Ethanol Across America, +1-301-718-0077, Erin Libit,
+1-202-261-2883, for Ethanol Across America